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

100 Summer Street, 4^th Floor, Boston, MA 02110

(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, 2018

Date of reporting period: August 31, 2018

Item 1. Reports to Stockholders.

Copies of the annual reports transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 are attached.

AUGUST 31, 2018

2018 ANNUAL REPORT

iShares, Inc.

▶ iShares MSCI Austria ETF | EWO | NYSE Arca

▶ iShares MSCI Belgium ETF | EWK | NYSE Arca

▶ iShares MSCI France ETF | EWQ | NYSE Arca

▶ iShares MSCI Netherlands ETF | EWN | NYSE Arca

▶ iShares MSCI Sweden ETF | EWD | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		16
Shareholder Expenses		16
Schedules of Investments		17
Financial Statements
Statements of Assets and Liabilities		30
Statements of Operations		32
Statements of Changes in Net Assets		34
Financial Highlights		37
Notes to Financial Statements		42
Report of Independent Registered Public Accounting Firm		51
Important Tax Information (Unaudited)		52
Board Review and Approval of Investment Advisory Contract		53
Supplemental Information		57
Director and Officer Information		60
General Information		62
Glossary of Terms Used in this Report		63

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T    O V E R V I E W 5

Fund Summary  as of August 31, 2018 iShares^® MSCI Austria ETF

Investment Objective

The iShares MSCI Austria ETF (the “Fund”) (formerly the iShares MSCI Austria Capped ETF) seeks to track the investment results of a broad-based index composed of Austrian equities, as represented by the MSCI Austria IMI 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		3.03	%		7.59	%		0.23	%		3.03	%		44.16	%		2.29	%
Fund Market		2.39			7.46			0.26			2.39			43.29			2.64
Index		3.17			7.74			(0.06	)		3.17			45.17			(0.65	)

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance 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 IMI 25/50 Index.

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period  (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period  (a)		Annualized Expense Ratio
$	1,000.00	$	921.60	$	2.32	$	1,000.00	$	1,022.80	$	2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Austria ETF

Portfolio Management Commentary

Austria’s economy posted solid growth during the reporting period, outpacing that of the Eurozone. Economic activity expanded by an annual growth rate of 3.4% during the first quarter of 2018, the highest since 2011, before moderating slightly during the second quarter. The consumer segment drove economic growth as consumer spending rose. Consumers benefited as unemployment continued to trend downward, reaching its lowest level in more than five years. Despite concerns about rising trade tensions between the U.S. and Europe, economic growth was also helped by rising exports, which was supported by improving economic trends of Austria’s main trading partners.

From a sector perspective, real estate stocks contributed the most to the Index’s return. Real estate operating companies led the sector’s gains, advancing on solid occupancy rates and rising revenue from rentals. Growth in new residential construction, supported by economic expansion and low interest rates, benefited real estate stocks. Consolidation within the sector also drove stock prices higher. The technology sector was also a modest contributor to the Index’s performance, bolstered by improved earnings in the electronic components industry. The aerospace and defense industry led the advance in the industrials sector, helped by higher demand for airplane parts and improved efficiency from automation.

On the downside, the financials sector was the leading detractor from the Index’ return. Banks were a key source of the sector’s weakness. Rising operating costs associated with higher spending on regulatory issues and personnel put pressure on profitability. Banks with operations in Russia and Eastern Europe declined as investors grew concerned about expanded U.S. sanctions on Russia.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Financials		33.8%
Materials		16.9
Energy		16.4
Industrials		11.6
Real Estate		11.5
Telecommunication Services		3.0
Information Technology		2.7
Consumer Discretionary		2.0
Utilities		1.6
Consumer Staples		0.5

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Erste Group Bank AG		21.3%
OMV AG		13.8
Voestalpine AG		9.1
IMMOFINANZ AG		4.7
Raiffeisen Bank International AG		4.5
ANDRITZ AG		4.5
CA Immobilien Anlagen AG		4.5
Wienerberger AG		4.4
Lenzing AG		3.4
BAWAG Group AG		3.3

^(a) Excludes money market funds.

F U N D    S U M M A R Y 7

Fund Summary  as of August 31, 2018 iShares^® MSCI Belgium ETF

Investment Objective

The iShares MSCI Belgium ETF (the “Fund”) (formerly the iShares MSCI Belgium Capped ETF) seeks to track the investment results of a broad-based index composed of Belgian equities, as represented by the MSCI Belgium IMI 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(1.34	)%		9.29	%		4.15	%		(1.34	)%		55.93	%		50.20	%
Fund Market		(1.99	)		9.15			4.16			(1.99	)		54.90			50.36
Index		(1.39	)		9.35			4.91			(1.39	)		56.35			61.46

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance 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 IMI 25/50 Index.

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period (a)		Annualized Expense Ratio
$	1,000.00	$	913.90	$	2.32	$	1,000.00	$	1,022.80	$	2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Belgium ETF

Portfolio Management Commentary

Belgium’s economy posted steady, yet modest, growth during the reporting period, though the rate of growth decelerated during the first half of 2018. The economy’s overall expansion was mainly driven by increased business and government investment spending, and by strengthening exports. The unemployment rate, which remained at its lowest level in nearly two decades, was also economically favorable. Nevertheless, consumer data weakened in the closing months of the reporting period, led by a decline in consumer confidence and lower household spending.

From a sector perspective, consumer staples stocks were the largest detractor from the Index’s return. The food, beverages, and tobacco industry drove the majority of the sector’s weakness. The stock prices of global beer breweries have declined amid losses in market share to smaller craft breweries. Concerns about a listeria contamination in packaged frozen vegetables also negatively affected the industry. The telecommunication services sector was another notable detractor from the Index’s return. Investors feared that increased competition in Belgium’s telecommunications market would result in price cuts and, subsequently lower corporate profits. The sector also declined amid recent legislation that eliminated roaming mobile charges while traveling in the European Union and placed price caps on calls and texts.

On the upside, the healthcare sector was the largest contributor to the Index’s return. Within the sector, the pharmaceuticals, biotechnology and life sciences industry advanced as biotechnology stocks benefited from increased merger-and-acquisition activity, corporate tax breaks, and positive clinical trial performance. Stronger revenue growth and increased sales of pharmaceuticals, Belgium’s second-largest export, also contributed to the industry’s forward momentum. The materials sector was a modest contributor to the Index’s return, gaining on higher demand for materials used in electric vehicle battery production.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Consumer Staples		26.0%
Financials		25.1
Materials		13.7
Health Care		12.2
Real Estate		7.4
Consumer Discretionary		4.5
Information Technology		3.4
Telecommunication Services		2.7
Industrials		1.8
Energy		1.7
Utilities		1.5

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Anheuser-Busch InBev SA/NV		21.8%
KBC Group NV		9.3
Umicore SA		6.5
UCB SA		6.1
Ageas		4.6
Solvay SA		4.6
Groupe Bruxelles Lambert SA		4.5
Galapagos NV		2.7
Ackermans & van Haaren NV		2.6
Colruyt SA		2.4

^(a) Excludes money market funds.

F U N D    S U M M A R Y 9

Fund Summary  as of August 31, 2018 iShares^® MSCI France ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		7.46	%		7.23	%		3.07	%		7.46	%		41.75	%		35.27	%
Fund Market		6.84			7.10			3.09			6.84			40.91			35.53
Index		7.40			7.18			3.06			7.40			41.46			35.20

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period (a)		Annualized Expense Ratio
$	1,000.00	$	998.60	$	2.42	$	1,000.00	$	1,022.80	$	2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI France ETF

Portfolio Management Commentary

After posting its fastest calendar-year growth rate in six years in 2017, France’s economy slowed in the first half of 2018. Industrial production moderated as trade tariffs implemented by the U.S. weighed on France’s manufacturing exports. In addition, consumer spending weakened as retail sales decelerated and consumer confidence declined. On the upside, the job market continued to improve as labor reforms helped drive the French unemployment rate down to its lowest level in nine years.

From a sector perspective, industrials stocks contributed the most to the Index’s performance for the reporting period. The aerospace and defense industry led the advance in the sector, benefiting from increased demand for military equipment amid geopolitical tensions. Robust commercial aircraft orders also helped to drive the strong performance of French aerospace and defense stocks.

The consumer discretionary and energy sectors were meaningful contributors to the Index’s return. Textiles and apparel companies were among the leading sources of strength in the consumer discretionary sector, benefiting from robust demand for luxury goods, particularly from China. The advance in energy stocks was driven by a sharp increase in oil prices, which led to higher revenues for energy-related companies.

On the downside, the financials sector detracted the most from the Index’s return. Within the sector, banks were the most significant detractors from performance. Several large French banks held a significant amount of Italian debt, which sold off as investors reacted negatively to the formation of a new government in Italy. A continuation of the prevailing low interest rate environment also weighed on France’s banking industry as interest rates are a key component of banks’ profitability.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Industrials		21.6%
Consumer Discretionary		19.1
Financials		12.0
Consumer Staples		9.9
Energy		9.4
Health Care		9.0
Materials		5.3
Information Technology		5.0
Utilities		3.3
Real Estate		3.2
Telecommunication Services		2.2

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
TOTAL SA		9.4%
LVMH Moet Hennessy Louis Vuitton SE		6.1
Sanofi		6.0
Airbus SE		4.5
BNP Paribas SA		4.1
L’Oreal SA		3.8
Air Liquide SA		3.4
AXA SA		3.1
Vinci SA		3.0
Danone SA		3.0

^(a) Excludes money market funds.

F U N D    S U M M A R Y 11

Fund Summary  as of August 31, 2018 iShares^® MSCI Netherlands ETF

Investment Objective

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 IMI 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		4.08	%		8.93	%		4.94	%		4.08	%		53.34	%		62.01	%
Fund Market		3.50			8.86			4.98			3.50			52.86			62.65
Index(a)		4.61			9.13			5.33			4.61			54.75			68.06
MSCI Netherlands Investable Market Net USD Index		4.78			9.16			5.35			4.78			55.01			68.34
MSCI Netherlands IMI 25-50 Net USD Index(b)		4.61			N/A			N/A			4.61			N/A			N/A

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

^(a)  Index performance through August 31, 2017 reflects the performance of the MSCI Netherlands Investable Market Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI Netherlands IMI 25/50 Index, which, effective as of September 1, 2017, replaced the MSCI Netherlands Investable Market Index as the underlying index of the Fund.

^(b)  The inception date of the MSCI Netherlands IMI 25/50 Index was July 20, 2016. The cumulative total return of this index for the period July 20, 2016 through August 31, 2018 was 38.63%.

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period (a)		Annualized Expense Ratio
$	1,000.00	$	988.70	$	2.41	$	1,000.00	$	1,022.80	$	2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Netherlands ETF

Portfolio Management Commentary

The Dutch economy grew at a relatively steady rate during the reporting period. Exports remained robust despite the implementation of U.S. trade tariffs, as most of the Netherlands’ exports go to other European countries. In addition, the Netherlands is the second-largest exporter of agricultural products in the world and European agricultural products have been largely immune from U.S. tariffs. The labor market in the Netherlands remained robust as the unemployment rate declined to its lowest level in more than nine years, and the Dutch housing market continued to recover. However, other segments of the economy weakened, including a decline in consumer confidence and a contraction in manufacturing during the reporting period.

From a sector perspective, information technology stocks contributed the most to the Index’s return for the reporting period. Semiconductor equipment manufacturers posted solid performance, as new technological developments to create smaller and more powerful microprocessors drove growth.

The materials and industrials sectors were also significant contributors to the Index’s return. In the materials sector, chemicals stocks were the leading contributors to performance amid rising prices for chemicals related to the production of vitamins and food supplements. Research and consulting services companies led the advance in the industrials sector, benefiting from strength in information and analytical services.

On the downside, the financials and consumer discretionary sectors detracted the most from the Index’s performance. In the financials sector, banks were the most significant detractors from performance. Low interest rates and exposure to the banking industry in Turkey, which faced sharply rising inflation and a weakening currency, weighed on Dutch banks. Media stocks detracted in the consumer discretionary sector, particularly the cable and satellite industry, as a battle for market share contributed to declining profitability.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of   Total Investments(a)
Consumer Staples		25.9	%
Information Technology		21.7
Financials		16.9
Industrials		14.7
Materials		8.9
Health Care		6.6
Energy		1.7
Telecommunication Services		1.6
Real Estate		1.4
Consumer Discretionary		0.6

TEN LARGEST HOLDINGS

Security	Percent of   Total Investments(a)
Unilever NV		15.2	%
ASML Holding NV		14.1
ING Groep NV		8.9
Koninklijke Philips NV		6.6
NXP Semiconductors NV		4.6
Koninklijke Ahold Delhaize NV		4.5
Akzo Nobel NV		4.2
RELX NV		3.9
Heineken NV		3.5
Koninklijke DSM NV		3.4

^(a) Excludes money market funds.

F U N D    S U M M A R Y 13

Fund Summary  as of August 31, 2018 iShares^® MSCI Sweden ETF

Investment Objective

The iShares MSCI Sweden ETF (the “Fund”) (formerly the iShares MSCI Sweden Capped ETF) seeks to track the investment results of an index composed of Swedish equities, as represented by the MSCI Sweden 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(2.88	)%		3.90	%		6.32	%		(2.88	)%		21.08	%		84.64	%
Fund Market		(2.97	)		3.90			6.39			(2.97	)		21.10			85.80
Index		(3.15	)		3.28			5.98			(3.15	)		17.54			78.75

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance through November 30, 2016 reflects the performance of the MSCI Sweden Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Sweden 25/50 Index.

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period  (a)		Annualized Expense Ratio
$	1,000.00	$	977.30	$	3.04	$	1,000.00	$	1,022.10	$	3.11		0.61	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Sweden ETF

Portfolio Management Commentary

Sweden’s economy grew at a steady pace during the reporting period, recovering from a downturn in 2016 and early 2017. Despite the relatively sound economy, the continued negative interest rate policy of the Swedish central bank caused the Swedish krona to depreciate by approximately 13% against the U.S. dollar, reducing the value of Swedish equities in U.S. dollar terms. A sharp decline in the value of Swedish real estate further weighed on the Swedish krona. Additionally, high levels of personal debt raised fears that the housing slump would negatively affect the economy.

The consumer discretionary sector was the leading detractor from the Index’s return. The retail industry was the primary source of the sector’s weakness, as competition from discount sellers and online merchants put pressure on traditional retailers. Consumer durables companies also detracted from the Index’s return, as trade tensions and tariffs weighed on profitability in the U.S. market.

The financials sector also detracted from the Index’s performance, driven by weakness in the banking industry. Swedish banks were negatively affected by their exposure to the domestic mortgage market amid the rapid decline in housing prices. Low interest rates also weighed on banks, as relatively small net interest margins limited profits. The materials sector declined amid lower productivity and higher mining costs.

On the upside, the information technology sector contributed to the Index’s return due to strength in the communications equipment industry, where cost-cutting measures and new products drove increased earnings. The electronic equipment, instruments, and components industry was also a source of strength, as demand increased for equipment and software used in manufacturing and shipping. The industrials sector also advanced on strong sales of maritime and mining products.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total  Investments(a)
Industrials		34.7%
Financials		31.5
Information Technology		10.8
Consumer Staples		7.5
Consumer Discretionary		5.8
Telecommunication Services		5.7
Materials		2.0
Energy		2.0

TEN LARGEST HOLDINGS

Security	Percent of    Total  Investments(a)
Nordea Bank AB		8.4%
Volvo AB, Class B		6.9
Telefonaktiebolaget LM Ericsson, Class B		6.6
Swedbank AB, Class A		5.4
Assa Abloy AB, Class B		5.2
Investor AB, Class B		5.0
Atlas Copco AB, Class A		4.9
Sandvik AB		4.5
Svenska Handelsbanken AB, Class A		4.5
Skandinaviska Enskilda Banken AB, Class A		4.3

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 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 ask 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. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Schedule of Investments   August 31, 2018 iShares^® MSCI Austria ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 1.5%
FACC AG		87,220	$	2,202,125
Air Freight & Logistics — 3.1%
Oesterreichische Post AG		101,334		4,484,995
Auto Components — 0.6%
POLYTEC Holding AG(a)		73,735		914,528
Banks — 28.8%
BAWAG Group AG(b)		101,034		4,735,036
Erste Group Bank AG		774,025		30,862,801
Raiffeisen Bank International AG		230,199		6,561,993
				42,159,830
Chemicals — 3.3%
Lenzing AG		40,103		4,875,952
Construction & Engineering — 1.0%
Porr AG		48,259		1,482,342
Construction Materials — 4.4%
Wienerberger AG		234,601		6,430,895
Diversified Telecommunication Services — 3.0%
Telekom Austria AG		503,328		4,357,027
Electric Utilities — 1.6%
EVN AG		126,545		2,367,540
Electrical Equipment — 0.7%
Zumtobel Group AG(a)(c)		136,087		1,092,526
Electronic Equipment, Instruments & Components — 2.6%
AT&S Austria Technologie & Systemtechnik AG		97,344		2,616,299
Kapsch TrafficCom AG		27,909		1,237,188
				3,853,487
Energy Equipment & Services — 2.5%
Schoeller-Bleckmann Oilfield Equipment AG		34,250		3,712,015
Food Products — 0.5%
Agrana Beteiligungs AG		28,227		694,609
Hotels, Restaurants & Leisure — 1.4%
DO & CO AG(a)		28,462		2,043,228
Insurance — 4.8%
UNIQA Insurance Group AG		374,594		3,667,594
Vienna Insurance Group AG Wiener Versicherung Gruppe		121,385		3,316,113
				6,983,707

Security	Shares		Value
Machinery — 5.2%
ANDRITZ AG		110,477	$	6,555,537
Semperit AG Holding(a)(c)		56,849		1,071,530
				7,627,067
Metals & Mining — 9.0%
Voestalpine AG		293,664		13,202,436
Oil, Gas & Consumable Fuels — 13.7%
OMV AG		378,234		20,080,627
Real Estate Management & Development — 11.4%
CA Immobilien Anlagen AG		176,476		6,488,420
IMMOFINANZ AG		257,038		6,866,501
S IMMO AG		155,766		3,280,330
				16,635,251
Total Common Stocks — 99.1% (Cost: $154,556,552)				145,200,187
Short-Term Investments
Money Market Funds — 2.7%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		3,873,786		3,874,949
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		46,016		46,016
				3,920,965
Total Short-Term Investments — 2.7% (Cost: $3,920,856)				3,920,965
Total Investments in Securities — 101.8% (Cost: $158,477,408)				149,121,152
Other Assets, Less Liabilities — (1.8)%				(2,657,713	)
Net Assets — 100.0%			$	146,463,439

^(a)  All or a portion of this security is on loan.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  Non-income producing security.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

S C H E D U L E    O F    I N V E S T M E N T S 17

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Austria ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		6,611,731		(2,737,945	)		3,873,786	$	3,874,949	$	182,086	(b)	$	(133	)	$	(413	)
BlackRock Cash Funds: Treasury, SL Agency Shares		135,114		(89,098	)		46,016		46,016		2,248			—			—
								$	3,920,965	$	184,334		$	(133	)	$	(413	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	145,200,187	$	—	$	—	$	145,200,187
Money Market Funds		3,920,965		—		—		3,920,965
	$	149,121,152	$	—	$	—	$	149,121,152

See notes to financial statements.

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Schedule of Investments August 31, 2018 iShares^® MSCI Belgium ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Air Freight & Logistics — 1.0%
bpost SA		38,969	$	591,692
Banks — 9.3%
KBC Group NV		78,242		5,571,314
Beverages — 21.8%
Anheuser-Busch InBev SA/NV		139,131		13,055,531
Biotechnology — 2.7%
Galapagos NV(a)		15,813		1,603,606
Capital Markets — 1.0%
Gimv NV		10,443		589,903
Chemicals — 12.4%
Recticel SA		22,228		264,830
Solvay SA		20,377		2,718,195
Tessenderlo Group SA(a)		14,785		560,796
Umicore SA		69,578		3,889,029
				7,432,850
Communications Equipment — 0.5%
EVS Broadcast Equipment SA		11,859		286,307
Construction & Engineering — 0.8%
Cie. d’Entreprises CFE		4,374		494,156
Distributors — 1.1%
D’ieteren SA/NV		14,220		632,018
Diversified Financial Services — 10.2%
Ackermans & van Haaren NV		8,798		1,572,322
Groupe Bruxelles Lambert SA		25,721		2,705,344
KBC Ancora		15,188		769,052
Sofina SA		5,459		1,083,573
				6,130,291
Diversified Telecommunication Services — 2.0%
Proximus SADP		53,170		1,227,677
Electric Utilities — 1.5%
Elia System Operator SA/NV		14,195		888,554
Electronic Equipment, Instruments & Components — 1.2%
Barco NV		5,148		709,180
Equity Real Estate Investment Trusts (REITs) — 7.4%
Aedifica SA		8,343		795,009
Befimmo SA		10,627		616,989
Cofinimmo SA		9,248		1,206,201
Intervest Offices & Warehouses NV		14,248		377,139
Retail Estates NV		3,399		308,865
Warehouses De Pauw CVA		7,807		1,102,730
				4,406,933
Food & Staples Retailing — 2.4%
Colruyt SA		23,694		1,411,480
Food Products — 0.3%
Greenyard NV(b)		15,991		149,960
Health Care Equipment & Supplies — 1.1%
Biocartis NV(a)(b)(c)		26,720		364,981
Ion Beam Applications(a)(b)		12,853		321,521
				686,502

Security	Shares		Value
Health Care Providers & Services — 0.9%
Fagron		29,679	$	565,971
Health Care Technology — 0.8%
AGFA-Gevaert NV(a)		108,680		478,231
Insurance — 4.6%
Ageas		52,600		2,728,300
IT Services — 0.4%
Econocom Group SA/NV(b)		74,975		265,887
Media — 2.8%
Kinepolis Group NV		8,670		560,867
Telenet Group Holding NV(a)		20,418		1,118,924
				1,679,791
Metals & Mining — 1.3%
Bekaert SA		17,337		442,565
Nyrstar NV(a)(b)		64,308		332,361
				774,926
Oil, Gas & Consumable Fuels — 1.7%
Euronav NV		83,473		725,493
Exmar NV(a)(b)		41,939		288,872
				1,014,365
Personal Products — 1.5%
Ontex Group NV		32,028		921,180
Pharmaceuticals — 6.6%
Mithra Pharmaceuticals SA(a)		6,615		280,155
UCB SA		39,854		3,652,110
				3,932,265
Semiconductors & Semiconductor Equipment — 1.3%
Melexis NV		8,883		797,890
Textiles, Apparel & Luxury Goods — 0.6%
Sioen Industries NV		6,775		205,345
Van de Velde NV		5,310		179,785
				385,130
Wireless Telecommunication Services — 0.6%
Orange Belgium SA		24,148		365,812
Total Common Stocks — 99.8% (Cost: $65,782,706)				59,777,702
Short-Term Investments
Money Market Funds — 2.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		1,512,858		1,513,312
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		15,487		15,487
				1,528,799
Total Short-Term Investments — 2.5% (Cost: $1,528,444)				1,528,799
Total Investments in Securities — 102.3% (Cost: $67,311,150)				61,306,501
Other Assets, Less Liabilities — (2.3)%				(1,403,514	)
Net Assets — 100.0%			$	59,902,987

^(a) Non-income producing security.

S C H E D U L E    O F    I N V E S T M E N T S 19

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Belgium ETF

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		3,505,275		(1,992,417	)		1,512,858	$	1,513,312	$	69,416	(b)	$	508	$	27
BlackRock Cash Funds: Treasury, SL Agency Shares		25,070		(9,583	)		15,487		15,487		661			—		—
								$	1,528,799	$	70,077		$	508	$	27

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	59,777,702	$	—	$	—	$	59,777,702
Money Market Funds		1,528,799		—		—		1,528,799
	$	61,306,501	$	—	$	—	$	61,306,501

See notes to financial statements.

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Schedule of Investments August 31, 2018 iShares^® MSCI France ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 8.4%
Airbus SE		340,377	$	42,081,990
Dassault Aviation SA, NVS		1,458		2,719,301
Safran SA		195,337		25,522,929
Thales SA, NVS		62,255		8,789,826
				79,114,046
Air Freight & Logistics — 0.3%
Bollore SA, NVS		512,750		2,460,314
Auto Components — 2.2%
Cie. Generale des Etablissements Michelin SCA, Class B, NVS		99,854		11,844,560
Faurecia SA, NVS		44,326		2,722,038
Valeo SA, NVS		140,318		6,385,096
				20,951,694
Automobiles — 2.0%
Peugeot SA, NVS		344,359		9,495,679
Renault SA, NVS		112,545		9,716,198
				19,211,877
Banks — 7.1%
BNP Paribas SA		658,546		38,755,307
Credit Agricole SA		666,571		9,145,346
Societe Generale SA, NVS		450,050		18,452,827
				66,353,480
Beverages — 2.3%
Pernod Ricard SA, NVS		124,324		19,672,526
Remy Cointreau SA, NVS(a)		13,266		1,863,003
				21,535,529
Building Products — 1.3%
Cie. de Saint-Gobain, NVS		291,698		12,579,509
Capital Markets — 0.7%
Amundi SA(b)		35,747		2,582,839
Natixis SA		549,722		3,677,708
				6,260,547
Chemicals — 3.9%
Air Liquide SA		250,857		31,668,115
Arkema SA, NVS		39,889		5,007,729
				36,675,844
Commercial Services & Supplies — 0.7%
Edenred, NVS		138,343		5,284,383
Societe BIC SA, NVS		14,919		1,384,321
				6,668,704
Construction & Engineering — 4.2%
Bouygues SA, NVS		128,056		5,666,208
Eiffage SA, NVS		46,787		5,278,178
Vinci SA		296,185		28,451,095
				39,395,481
Construction Materials — 0.2%
Imerys SA, NVS		21,069		1,517,403
Diversified Financial Services — 0.5%
Eurazeo SA, NVS		26,704		2,031,984
Wendel SA, NVS		16,234		2,410,141
				4,442,125
Diversified Telecommunication Services — 2.2%
Iliad SA, NVS		15,597		2,019,773

Security	Shares		Value
Diversified Telecommunication Services (continued)
Orange SA, NVS		1,168,119	$	18,959,529
				20,979,302
Electric Utilities — 0.6%
Electricite de France SA, NVS		342,791		5,627,593
Electrical Equipment — 4.0%
Legrand SA		155,759		11,761,538
Schneider Electric SE, NVS		319,659		26,123,880
				37,885,418
Electronic Equipment, Instruments & Components — 0.3%
Ingenico Group SA, NVS		34,637		2,439,770
Equity Real Estate Investment Trusts (REITs) — 3.2%
Covivio		21,990		2,303,961
Gecina SA		26,473		4,555,516
ICADE		19,598		1,916,531
Klepierre SA		119,637		4,301,206
Unibail-Rodamco-Westfield		80,763		17,008,157
				30,085,371
Food & Staples Retailing — 0.8%
Carrefour SA, NVS		340,124		6,082,434
Casino Guichard Perrachon SA, NVS(a)		32,656		1,037,650
				7,120,084
Food Products — 3.0%
Danone SA, NVS		360,200		28,422,858
Health Care Equipment & Supplies — 2.1%
BioMerieux, NVS		24,345		2,144,232
Essilor International Cie Generale d’Optique SA, NVS		121,885		17,627,375
				19,771,607
Hotels, Restaurants & Leisure — 1.2%
Accor SA, NVS		109,970		5,514,647
Sodexo SA, NVS		53,180		5,551,417
				11,066,064
Household Durables — 0.3%
SEB SA, NVS		13,202		2,466,900
Insurance — 3.7%
AXA SA, NVS		1,136,006		28,741,292
CNP Assurances, NVS		100,631		2,326,462
SCOR SE		96,297		3,911,369
				34,979,123
IT Services — 2.0%
Atos SE		55,559		6,671,145
Capgemini SE		93,713		12,075,630
				18,746,775
Life Sciences Tools & Services — 0.4%
Eurofins Scientific SE, NVS		6,710		3,797,365
Machinery — 0.4%
Alstom SA, NVS		91,382		4,040,271
Media — 3.4%
Eutelsat Communications SA		102,482		2,432,450
JCDecaux SA		43,839		1,447,569
Publicis Groupe SA, NVS		121,526		7,819,169
SES SA		214,457		4,311,717
Vivendi SA, NVS		607,085		15,786,770
				31,797,675

S C H E D U L E    O F    I N V E S T M E N T S 21

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI France ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Metals & Mining — 1.3%
ArcelorMittal		389,831	$	11,765,560
Multi-Utilities — 2.7%
Engie SA		1,069,419		15,715,112
Suez		219,802		3,185,236
Veolia Environnement SA, NVS		313,363		6,621,095
				25,521,443
Oil, Gas & Consumable Fuels — 9.3%
TOTAL SA, NVS		1,401,045		87,814,313
Personal Products — 3.8%
L’Oreal SA		147,963		35,584,417
Pharmaceuticals — 6.4%
Ipsen SA, NVS		22,154		3,947,621
Sanofi, NVS		658,258		56,437,913
				60,385,534
Professional Services — 1.1%
Bureau Veritas SA, NVS		154,886		3,989,845
Teleperformance, NVS		33,785		6,505,612
				10,495,457
Semiconductors & Semiconductor Equipment — 0.9%
STMicroelectronics NV		401,060		8,261,740
Software — 1.8%
Dassault Systemes SE, NVS		75,876		12,324,125
Ubisoft Entertainment SA, NVS(c)		45,978		4,956,882
				17,281,007
Textiles, Apparel & Luxury Goods — 10.0%
Hermes International, NVS		18,538		12,082,929
Kering SA, NVS		44,357		24,153,177
LVMH Moet Hennessy Louis Vuitton SE, NVS		162,929		57,221,050
				93,457,156
Trading Companies & Distributors — 0.3%
Rexel SA		177,660		2,800,884

Security	Shares		Value
Transportation Infrastructure — 0.8%
Aeroports de Paris, NVS		17,451	$	3,843,591
Getlink, NVS		273,352		3,450,788
				7,294,379
Total Common Stocks — 99.8% (Cost: $931,057,334)				937,054,619
Short-Term Investments
Money Market Funds — 0.1%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		1,098,170		1,098,500
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		47,843		47,843
				1,146,343
Total Short-Term Investments — 0.1% (Cost: $1,146,343)				1,146,343
Total Investments in Securities — 99.9% (Cost: $932,203,677)				938,200,962
Other Assets, Less Liabilities — 0.1%				1,017,015
Net Assets — 100.0%			$	939,217,977

^(a)  All or a portion of this security is on loan.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  Non-income producing security.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		—		1,098,170			1,098,170	$	1,098,500	$	123,960	(b)	$	(157	)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		218,501		(170,658	)		47,843		47,843		7,386			—			—
								$	1,146,343	$	131,346		$	(157	)	$	—

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

22 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI France ETF

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)	Value/ Unrealized Appreciation (Depreciation)
Long Contracts
CAC 40 Index		31		09/21/18	$  1,950	$	4,522

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	4,522

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	117,534
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	4,522

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	2,120,829

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	937,054,619	$	—	$	—	$	937,054,619
Money Market Funds		1,146,343		—		—		1,146,343
	$	938,200,962	$	—	$	—	$	938,200,962
Derivative financial instruments(a)
Assets
Futures Contracts	$	4,522	$	—	$	—	$	4,522

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

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 23

Schedule of Investments   August 31, 2018 iShares^® MSCI Netherlands ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Air Freight & Logistics — 0.3%
PostNL NV(a)		133,133	$	447,352
Banks — 11.0%
ABN AMRO Group NV, CVA(b)		102,106		2,771,611
ING Groep NV		840,542		11,432,473
				14,204,084
Beverages — 5.8%
Coca-Cola European Partners PLC		40,920		1,744,829
Heineken Holding NV		13,398		1,279,821
Heineken NV		45,342		4,491,595
				7,516,245
Biotechnology — 0.0%
Pharming Group NV(c)		31,286		46,266
Capital Markets — 0.5%
BinckBank NV		40,756		263,179
Flow Traders(b)		11,290		330,499
				593,678
Chemicals — 8.7%
Akzo Nobel NV		58,109		5,443,941
Corbion NV		19,526		614,762
Koninklijke DSM NV		42,190		4,436,578
OCI NV(c)		24,356		786,385
				11,281,666
Construction & Engineering — 1.2%
Arcadis NV		26,768		475,889
Boskalis Westminster(a)		25,620		735,385
Koninklijke BAM Groep NV		61,353		251,629
Koninklijke Volkerwessels NV		1,947		41,931
				1,504,834
Diversified Financial Services — 0.0%
SNS REAAL NV(a)(c)(d)		68,952		1
Diversified Telecommunication Services — 1.6%
Koninklijke KPN NV		823,576		2,109,065
Electrical Equipment — 0.9%
Kendrion NV		8,304		307,242
SIF Holding NV		2,407		47,441
Signify NV(b)		2,800		78,969
TKH Group NV		12,652		742,654
				1,176,306
Energy Equipment & Services — 0.9%
Fugro NV, CVA(a)(c)		25,314		325,601
SBM Offshore NV		50,925		825,073
				1,150,674
Equity Real Estate Investment Trusts (REITs) — 1.3%
Eurocommercial Properties NV		14,613		564,814
NSI NV		8,902		365,619
Vastned Retail NV		8,225		339,727
Wereldhave NV		12,866		471,841
				1,742,001
Food & Staples Retailing — 4.5%
Koninklijke Ahold Delhaize NV		235,712		5,748,297
Food Products — 0.3%
ForFarmers NV		4,070		45,555

Security	Shares		Value
Food Products (continued)
Wessanen		28,474	$	379,333
				424,888
Health Care Equipment & Supplies — 6.6%
Koninklijke Philips NV		189,402		8,482,009
Hotels, Restaurants & Leisure — 0.1%
Basic-Fit NV(b)(c)		2,815		100,059
Household Durables — 0.3%
TomTom NV(c)		40,017		406,374
Insurance — 5.4%
Aegon NV		431,631		2,594,378
ASR Nederland NV		26,327		1,258,953
NN Group NV		72,028		3,094,902
				6,948,233
Internet Software & Services — 0.1%
Takeaway.com NV(b)(c)		997		78,997
IT Services — 1.0%
InterXion Holding NV(c)		19,722		1,300,271
Leisure Products — 0.2%
Accell Group NV		11,528		237,675
Machinery — 0.9%
Aalberts Industries NV		27,224		1,170,079
Metals & Mining — 0.1%
AMG Advanced Metallurgical Group NV(a)		2,418		119,905
Constellium NV, Class A(c)		5,162		60,137
				180,042
Oil, Gas & Consumable Fuels — 0.8%
Koninklijke Vopak NV(a)		20,020		1,034,221
Personal Products — 15.2%
Unilever NV, CVA		339,971		19,597,828
Professional Services — 9.0%
Brunel International NV		13,531		202,931
Intertrust NV(b)		16,329		299,231
Randstad NV		29,985		1,882,531
RELX NV		223,216		4,955,300
Wolters Kluwer NV		67,674		4,299,132
				11,639,125
Semiconductors & Semiconductor Equipment — 19.5%
ASM International NV		13,952		753,543
ASML Holding NV		88,396		18,064,348
BE Semiconductor Industries NV		22,518		489,934
NXP Semiconductors NV(c)		63,287		5,894,551
				25,202,376
Software — 1.0%
Gemalto NV(a)(c)		21,249		1,236,655
Trading Companies & Distributors — 2.3%
AerCap Holdings NV(c)		32,029		1,824,692
IMCD NV		14,956		1,120,644
				2,945,336
Total Common Stocks — 99.5%
(Cost: $125,754,505)				128,504,637

24 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Netherlands ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Short-Term Investments
Money Market Funds — 3.1%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(e)(f)(g)		3,959,407	$	3,960,594
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(e)(f)		10,009		10,009
				3,970,603
Total Short-Term Investments — 3.1%
(Cost: $3,970,274)				3,970,603
Total Investments in Securities — 102.6%
(Cost: $129,724,779)				132,475,240
Other Assets, Less Liabilities — (2.6)%				(3,307,667	)
Net Assets — 100.0%			$	129,167,573

^(a)  All or a portion of this security is on loan.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  Non-income producing security.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(e)  Affiliate of the Fund.

^(f)  Annualized 7-day yield as of period-end.

^(g)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18	Value at 08/31/18		Income	Net Realized Gain (Loss)(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		1,224,613		2,734,794		3,959,407	$	3,960,594	$31,739(b)	$	8	$	104
BlackRock Cash Funds: Treasury, SL Agency Shares		32,493		(22,484	)	10,009		10,009	1,999		—		—
							$	3,970,603	$33,738	$	8	$	104

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)	Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro STOXX 50 Index		15		09/21/18	$    591	$	(12,963	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	12,963

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

S C H E D U L E    O F    I N V E S T M E N T S 25

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Netherlands ETF

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	28,279
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(12,963	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	550,544

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	128,504,636		$	—	$	1	$	128,504,637
Money Market Funds		3,970,603			—		—		3,970,603
	$	132,475,239		$	—	$	1	$	132,475,240
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(12,963	)	$	—	$	—	$	(12,963	)

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

See notes to financial statements.

26 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments   August 31, 2018 iShares^® MSCI Sweden ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Banks — 22.2%
Nordea Bank AB		1,906,594	$	20,617,580
Skandinaviska Enskilda Banken AB, Class A		992,645		10,603,916
Svenska Handelsbanken AB, Class A		899,109		10,908,639
Swedbank AB, Class A		566,016		13,183,261
				55,313,396
Building Products — 5.1%
Assa Abloy AB, Class B		619,944		12,647,972
Commercial Services & Supplies — 1.6%
Securitas AB, Class B		230,130		4,098,107
Communications Equipment — 6.5%
Telefonaktiebolaget LM Ericsson, Class B		1,903,142		16,068,426
Construction & Engineering — 1.8%
Skanska AB, Class B		235,413		4,424,083
Diversified Financial Services — 8.7%
Industrivarden AB, Class C		127,690		2,730,190
Investor AB, Class B		270,968		12,239,819
Kinnevik AB, Class B		151,193		4,971,119
L E Lundbergforetagen AB, Class B		48,562		1,632,827
				21,573,955
Diversified Telecommunication Services — 3.4%
Telia Co. AB		1,908,934		8,474,447
Electronic Equipment, Instruments & Components — 4.2%
Hexagon AB, Class B		174,792		10,392,112
Food & Staples Retailing — 0.8%
ICA Gruppen AB		64,193		1,956,750
Household Durables — 2.5%
Electrolux AB, Series B		167,459		3,739,049
Husqvarna AB, Class B		317,233		2,524,267
				6,263,316
Household Products — 3.9%
Essity AB, Class B		370,613		9,613,721
Machinery — 25.6%
Alfa Laval AB		208,991		5,606,520
Atlas Copco AB, Class A		420,187		11,989,641
Atlas Copco AB, Class B		242,293		6,412,386
Epiroc AB, Class A(a)		419,433		4,361,227
Epiroc AB, Class B(a)		242,270		2,319,165

Security	Shares		Value
Machinery (continued)
Sandvik AB		626,440	$	10,973,816
SKF AB, Class B		265,374		5,104,771
Volvo AB, Class B		976,185		16,828,105
				63,595,631
Media — 0.0%
Modern Times Group MTG AB(a)(b)		150,921		7,433
Metals & Mining — 2.0%
Boliden AB		188,662		4,943,461
Oil, Gas & Consumable Fuels — 2.0%
Lundin Petroleum AB		141,560		4,922,438
Specialty Retail — 3.2%
Hennes & Mauritz AB, Class B		594,153		8,013,127
Tobacco — 2.7%
Swedish Match AB		125,946		6,739,489
Wireless Telecommunication Services — 2.2%
Millicom International Cellular SA, SDR		43,057		2,481,217
Tele2 AB, Class B		234,556		2,895,864
				5,377,081
Total Common Stocks — 98.4%
(Cost: $293,441,708)				244,424,945
Short-Term Investments
Money Market Funds — 0.0%
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		16,853		16,853
Total Short-Term Investments — 0.0%
(Cost: $16,853)				16,853
Total Investments in Securities — 98.4%
(Cost: $293,458,561)				244,441,798
Other Assets, Less Liabilities — 1.6%				4,026,589
Net Assets — 100.0%			$	248,468,387

^(a)  Non-income producing security.

^(b)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(c)  Affiliate of the Fund.

^(d)  Annualized 7-day yield as of period-end.

S C H E D U L E    O F    I N V E S T M E N T S 27

Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI Sweden ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized    Gain (Loss)(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		3,689,579		(3,689,579	)		—	$	—	$	30,202	(b)	$	643	$	266
BlackRock Cash Funds: Treasury, SL Agency Shares		5,596		11,257			16,853		16,853		6,140			—		—
								$	16,853	$	36,342		$	643	$	266

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)	Value/ Unrealized Appreciation (Depreciation)
Long Contracts
OMXS 30 Index		213		09/21/18	$3,864	$	110,889

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	110,889

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	80,027
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	110,889

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	3,121,611

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

28 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI Sweden ETF

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	244,417,512	$	—	$	7,433	$	244,424,945
Money Market Funds		16,853		—		—		16,853
	$	244,434,365	$	—	$	7,433	$	244,441,798
Derivative financial instruments(a)
Assets
Futures Contracts	$	110,889	$	—	$	—	$	110,889

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

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 29

Statements of Assets and Liabilities

August 31, 2018

	iShares MSCI Austria ETF			iShares MSCI Belgium ETF			iShares MSCI France ETF			iShares MSCI Netherlands ETF
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	145,200,187		$	59,777,702		$	937,054,619		$	128,504,637
Affiliated(c)		3,920,965			1,528,799			1,146,343			3,970,603
Cash pledged:
Futures contracts(d)		—			—			136,130			48,867
Foreign currency, at value(e)		74,610			69,210			2,643,819			303,095
Receivables:
Investments sold		2,622,539			917,713			1,025,756			2,434,341
Securities lending income — Affiliated		8,969			6,891			2,742			1,964
Dividends		7,204			20,139			21,767			377,329
Tax reclaims		1,205,489			39,263			—			—
Total assets		153,039,963			62,359,717			942,031,176			135,640,836
LIABILITIES
Collateral on securities loaned, at value		3,875,193			1,511,256			1,098,500			3,959,005
Payables:
Investments purchased		2,632,078			919,297			1,299,179			2,450,091
Variation margin on futures contracts		—			—			30,001			8,015
Investment advisory fees		69,253			26,177			385,519			56,152
Total liabilities		6,576,524			2,456,730			2,813,199			6,473,263
NET ASSETS	$	146,463,439		$	59,902,987		$	939,217,977		$	129,167,573
NET ASSETS CONSIST OF:
Paid-in capital	$	202,386,993		$	99,077,715		$	982,580,771		$	145,890,758
Undistributed (distributions in excess of) net investment income		761,881			(189,289	)		591,126			639,588
Accumulated net realized loss		(47,343,487	)		(32,981,788	)		(49,952,545	)		(20,107,203	)
Net unrealized appreciation (depreciation)		(9,341,948	)		(6,003,651	)		5,998,625			2,744,430
NET ASSETS	$	146,463,439		$	59,902,987		$	939,217,977		$	129,167,573
Shares outstanding		6,400,000			3,040,000			30,200,000			4,150,000
Net asset value	$	22.88		$	19.70		$	31.10		$	31.12
Shares authorized		100 million			136.2 million			340.2 million			255 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a) Securities loaned, at value	$	3,712,967		$	1,418,399		$	913,981		$	3,744,355
(b) Investments, at cost — Unaffiliated	$	154,556,552		$	65,782,706		$	931,057,334		$	125,754,505
(c) Investments, at cost — Affiliated	$	3,920,856		$	1,528,444		$	1,146,343		$	3,970,274
(d) Cash collateral pledged, at cost	$	—		$	—		$	136,978		$	48,618
(e) Foreign currency, at cost	$	74,376		$	69,477		$	2,646,028		$	298,760

See notes to financial statements.

30 2 0 1 8    I S H A R E S    A N N  U A L    R E P O R T    T O    S H A R E H O L D E R  S

Statements of Assets and Liabilities   (continued)

August 31, 2018

	iShares MSCI Sweden ETF
ASSETS
Investments in securities, at value:
Unaffiliated(a)	$	244,424,945
Affiliated(b)		16,853
Cash pledged:
Futures contracts(c)		355,477
Foreign currency, at value(d)		888,870
Receivables:
Investments sold		857,112
Securities lending income — Affiliated		4,093
Dividends		60
Foreign withholding tax claims		13,523,016
Total assets		260,070,426
LIABILITIES
Payables:
Investments purchased		1,282,790
Variation margin on futures contracts		51,508
Investment advisory fees		101,510
Professional fees		1,392,302
IRS compliance fee for foreign withholding tax claims		8,773,929
Total liabilities		11,602,039
NET ASSETS	$	248,468,387
NET ASSETS CONSIST OF:
Paid-in capital	$	332,166,081
Undistributed net investment income		516,488
Accumulated net realized loss		(34,458,081	)
Net unrealized depreciation		(49,756,101	)
NET ASSETS	$	248,468,387
Shares outstanding		7,800,000
Net asset value	$	31.85
Shares authorized		63.6 million
Par value	$	0.001
(a) Investments, at cost — Unaffiliated	$	293,441,708
(b) Investments, at cost — Affiliated	$	16,853
(c) Cash collateral pledged, at cost	$	364,851
(d) Foreign currency, at cost	$	890,561

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 31

Statements of Operations

Year Ended August 31, 2018

	iShares MSCI Austria ETF			iShares MSCI Belgium ETF			iShares MSCI France ETF			iShares MSCI Netherlands ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	7,596,149		$	2,308,705		$	25,537,745		$	5,490,603
Dividends — Affiliated		2,248			661			7,386			1,999
Non-cash dividends — Unaffiliated		—			—			1,468,665			—
Securities lending income — Affiliated — net		182,086			69,416			123,960			31,739
Foreign taxes withheld		(740,246	)		(344,854	)		(3,550,317	)		(800,972	)
Total investment income		7,040,237			2,033,928			23,587,439			4,723,369
EXPENSES
Investment advisory fees		1,172,609			335,585			3,732,994			922,049
Proxy fees		15			10			42			19
Total expenses		1,172,624			335,595			3,733,036			922,068
Net investment income		5,867,613			1,698,333			19,854,403			3,801,301
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		2,669,282			(28,141	)		(6,893,676	)		(2,775,375	)
Investments — Affiliated		(133	)		508			(157	)		8
In-kind redemptions — Unaffiliated		39,839,450			3,048,490			30,659,489			29,976,923
Futures contracts		—			—			117,534			28,279
Foreign currency transactions		(23,065	)		(11,955	)		(201,710	)		(69,551	)
Net realized gain		42,485,534			3,008,902			23,681,480			27,160,284
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(40,396,272	)		(5,754,182	)		1,489,721			(21,680,620	)
Investments — Affiliated		(413	)		27			—			104
Futures contracts		—			—			4,522			(12,963	)
Foreign currency translations		(22,949	)		(10,021	)		(17,446	)		3,230
Net change in unrealized appreciation (depreciation)		(40,419,634	)		(5,764,176	)		1,476,797			(21,690,249	)
Net realized and unrealized gain (loss)		2,065,900			(2,755,274	)		25,158,277			5,470,035
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	7,933,513		$	(1,056,941	)	$	45,012,680		$	9,271,336

See notes to financial statements.

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Statements of Operations  (continued)

Year Ended August 31, 2018

	iShares MSCI Sweden ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	12,114,872
Dividends — Affiliated		6,140
Non-cash dividends — Unaffiliated		1,147,372
Securities lending income — Affiliated — net		30,202
Foreign taxes withheld		(219,984	)
Foreign withholding tax claims		2,089,768
Total investment income		15,168,370
EXPENSES
Investment advisory fees		1,859,064
Professional fees		208,977
Proxy fees		40
Total expenses		2,068,081
Net investment income		13,100,289
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(7,897,165	)
Investments — Affiliated		643
In-kind redemptions — Unaffiliated		22,538,716
Futures contracts		80,027
Foreign currency transactions		(168,696	)
Net realized gain		14,553,525
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(39,617,256	)
Investments — Affiliated		266
Futures contracts		110,889
Foreign currency translations		(1,673,546	)
Net change in unrealized appreciation (depreciation)		(41,179,647	)
Net realized and unrealized loss		(26,626,122	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(13,525,833	)

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 33

Statements of Changes in Net Assets   

	iShares MSCI Austria ETF						iShares MSCI Belgium ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	5,867,613		$	3,359,266		$	1,698,333		$	2,097,860
Net realized gain (loss)		42,485,534			(4,516,396	)		3,008,902			(1,924,884	)
Net change in unrealized appreciation (depreciation)		(40,419,634	)		52,978,293			(5,764,176	)		12,551,482
Net increase (decrease) in net assets resulting from operations		7,933,513			51,821,163			(1,056,941	)		12,724,458
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(6,751,155	)		(3,029,256	)		(2,051,350	)		(2,204,067	)
Decrease in net assets resulting from distributions to shareholders		(6,751,155	)		(3,029,256	)		(2,051,350	)		(2,204,067	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(88,040,917	)		123,749,647			(11,116,268	)		(68,595,421	)
NET ASSETS
Total increase (decrease) in net assets		(86,858,559	)		172,541,554			(14,224,559	)		(58,075,030	)
Beginning of year		233,321,998			60,780,444			74,127,546			132,202,576
End of year	$	146,463,439		$	233,321,998		$	59,902,987		$	74,127,546
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	761,881		$	304,157		$	(189,289	)	$	20,272

See notes to financial statements.

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Statements of Changes in Net Assets  (continued)

	iShares MSCI France ETF						iShares MSCI Netherlands ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	19,854,403		$	10,004,996		$	3,801,301		$	3,117,660
Net realized gain		23,681,480			3,079,358			27,160,284			3,805,238
Net change in unrealized appreciation (depreciation)		1,476,797			76,299,249			(21,690,249	)		35,476,698
Net increase in net assets resulting from operations		45,012,680			89,383,603			9,271,336			42,399,596
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(20,500,943	)		(9,786,674	)		(3,982,173	)		(4,373,491	)
Decrease in net assets resulting from distributions to shareholders		(20,500,943	)		(9,786,674	)		(3,982,173	)		(4,373,491	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		274,505,593			231,550,063			(68,661,266	)		(30,073,346	)
NET ASSETS
Total increase (decrease) in net assets		299,017,330			311,146,992			(63,372,103	)		7,952,759
Beginning of year		640,200,647			329,053,655			192,539,676			184,586,917
End of year	$	939,217,977		$	640,200,647		$	129,167,573		$	192,539,676
Undistributed net investment income included in net assets at end of year	$	591,126		$	560,868		$	639,588		$	890,011

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 35

Statements of Changes in Net Assets  (continued)

	iShares MSCI Sweden ETF
	Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	13,100,289		$	9,413,568
Net realized gain (loss)		14,553,525			(670,324	)
Net change in unrealized appreciation (depreciation)		(41,179,647	)		64,333,999
Net increase (decrease) in net assets resulting from operations		(13,525,833	)		73,077,243
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(15,746,851	)		(9,859,546	)
Decrease in net assets resulting from distributions to shareholders		(15,746,851	)		(9,859,546	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(182,574,268	)		112,388,894
NET ASSETS
Total increase (decrease) in net assets		(211,846,952	)		175,606,591
Beginning of year		460,315,339			284,708,748
End of year	$	248,468,387		$	460,315,339
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	516,488		$	(31,879	)

See notes to financial statements.

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Financial Highlights  

(For a share outstanding throughout each period)

	iShares MSCI Austria ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	22.87		$	15.58		$	15.59		$	17.55		$	17.87
Net investment income(a)		0.58			0.53			0.38			0.25			0.52
Net realized and unrealized gain (loss)(b)		0.11			7.13			(0.06	)		(1.96	)		(0.18	)
Net increase (decrease) from investment operations		0.69			7.66			0.32			(1.71	)		0.34
Distributions(c)
From net investment income		(0.68	)		(0.37	)		(0.33	)		(0.25	)		(0.66	)
Total distributions		(0.68	)		(0.37	)		(0.33	)		(0.25	)		(0.66	)
Net asset value, end of year	$	22.88		$	22.87		$	15.58		$	15.59		$	17.55
Total Return
Based on net asset value		3.03	%		49.52	%		2.11	%		(9.76	)%		1.56	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		2.37	%		2.75	%		2.47	%		1.54	%		2.64	%
Supplemental Data
Net assets, end of year (000)	$	146,463		$	233,322		$	60,780		$	56,130		$	63,170
Portfolio turnover rate(d)		19	%		18	%		15	%		18	%		30	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 37

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI Belgium ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	20.59		$	18.16		$	17.00		$	17.02		$	14.36
Net investment income(a)		0.50			0.43			0.34			0.34			0.32
Net realized and unrealized gain (loss)(b)		(0.77	)		2.51			1.05			(0.00	)(c)		2.95
Net increase (decrease) from investment operations		(0.27	)		2.94			1.39			0.34			3.27
Distributions(d)
From net investment income		(0.62	)		(0.51	)		(0.23	)		(0.36	)		(0.61	)
Total distributions		(0.62	)		(0.51	)		(0.23	)		(0.36	)		(0.61	)
Net asset value, end of year	$	19.70		$	20.59		$	18.16		$	17.00		$	17.02
Total Return
Based on net asset value		(1.34	)%		16.44	%		8.20	%		1.95	%		23.05	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		2.40	%		2.31	%		1.92	%		2.01	%		1.90	%
Supplemental Data
Net assets, end of year (000)	$	59,903		$	74,128		$	132,203		$	153,659		$	164,765
Portfolio turnover rate(e)		13	%		8	%		19	%		7	%		13	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI France ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	29.64		$	23.84		$	25.01		$	27.64		$	24.85
Net investment income(a)		0.80			0.69			0.67			0.74			0.66
Net realized and unrealized gain (loss)(b)		1.40			5.69			(1.14	)		(2.69	)		2.86
Net increase (decrease) from investment operations		2.20			6.38			(0.47	)		(1.95	)		3.52
Distributions(c)
From net investment income		(0.74	)		(0.58	)		(0.70	)		(0.68	)		(0.73	)
Total distributions		(0.74	)		(0.58	)		(0.70	)		(0.68	)		(0.73	)
Net asset value, end of year	$	31.10		$	29.64		$	23.84		$	25.01		$	27.64
Total Return
Based on net asset value		7.46	%		26.93	%		(1.87	)%		(7.17	)%		14.07	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		2.53	%		2.57	%		2.77	%		2.85	%		2.36	%
Supplemental Data
Net assets, end of year (000)	$	939,218		$	640,201		$	329,054		$	350,139		$	281,923
Portfolio turnover rate(d)		4	%		6	%		6	%		6	%		6	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 39

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI Netherlands ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	30.56		$	24.78		$	24.48		$	24.64		$	22.52
Net investment income(a)		0.62			0.46			0.71			0.50			0.45
Net realized and unrealized gain (loss)(b)		0.62			5.98			0.08			(0.27	)		2.22
Net increase from investment operations		1.24			6.44			0.79			0.23			2.67
Distributions(c)
From net investment income		(0.68	)		(0.66	)		(0.49	)		(0.39	)		(0.55	)
Total distributions		(0.68	)		(0.66	)		(0.49	)		(0.39	)		(0.55	)
Net asset value, end of year	$	31.12		$	30.56		$	24.78		$	24.48		$	24.64
Total Return
Based on net asset value		4.08	%		26.44	%		3.32	%		0.87	%		11.80	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		1.95	%		1.74	%		2.97	%		2.01	%		1.78	%
Supplemental Data
Net assets, end of year (000)	$	129,168		$	192,540		$	184,587		$	176,282		$	165,092
Portfolio turnover rate(d)		7	%		14	%		24	%		6	%		7	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI Sweden ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	34.68		$	28.54		$	30.26		$	34.11		$	31.97
Net investment income(a)		1.14			0.86			1.05			1.30	(b)		1.04
Net realized and unrealized gain (loss)(c)		(2.19	)		6.04			(1.63	)		(3.75	)		2.33
Net increase (decrease) from investment operations		(1.05	)		6.90			(0.58	)		(2.45	)		3.37
Distributions(d)
From net investment income		(1.78	)		(0.76	)		(1.14	)		(1.40	)		(1.23	)
Total distributions		(1.78	)		(0.76	)		(1.14	)		(1.40	)		(1.23	)
Net asset value, end of year	$	31.85		$	34.68		$	28.54		$	30.26		$	34.11
Total Return
Based on net asset value		(2.88	)%		24.30	%		(1.91	)%		(7.46	)%(b)		10.49	%
Ratios to Average Net Assets
Total expenses		0.53	%		0.53	%		0.48	%		0.92	%		0.48	%
Total expenses excluding professional fees for foreign withholding tax claims		0.47	%		0.49	%		0.48	%		0.48	%		N/A
Net investment income		3.34	%		2.74	%		3.65	%		3.97	%(b)		2.97	%
Supplemental Data
Net assets, end of year (000)	$	248,468		$	460,315		$	284,709		$	331,387		$	404,256
Portfolio turnover rate(e)		5	%		9	%		7	%		4	%		7	%

^(a)  Based on average shares outstanding.

^(b)  Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2015:

• 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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 41

Notes to Financial Statements  

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification     Classification
MSCI Austria(a)	Non-diversified
MSCI Belgium(b)	Non-diversified
MSCI France	Non-diversified
MSCI Netherlands	Non-diversified
MSCI Sweden(c)	Non-diversified

^(a)  Formerly the iShares MSCI Austria Capped ETF.

^(b)  Formerly the iShares MSCI Belgium Capped ETF.

^(c)  Formerly the iShares MSCI Sweden Capped ETF.

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

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Notes to Financial Statements   (continued)

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S.

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 43

Notes to Financial Statements  (continued)

exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received(a)		Non-Cash Collateral Received		Net Amount
MSCI Austria
Deutsche Bank Securities Inc.	$	206,980	$	206,980	$	—	$	—
Goldman Sachs & Co.		1,490,933		1,490,933		—		—
Morgan Stanley & Co. LLC		1,997,159		1,997,159		—		—
Scotia Capital (USA) Inc.		17,895		17,895		—		—
	$	3,712,967	$	3,712,967	$	—	$	—
MSCI Belgium
Credit Suisse Securities (USA) LLC	$	2,925	$	2,925	$	—	$	—
Goldman Sachs & Co.		402,869		402,869		—		—
Jefferies LLC		12,357		12,357		—		—
JPMorgan Securities LLC		756,399		756,399		—		—
Morgan Stanley & Co. LLC		242,921		242,921		—		—
UBS AG		928		928		—		—
	$	1,418,399	$	1,418,399	$	—	$	—
MSCI France
Morgan Stanley & Co. LLC	$	913,981	$	913,981	$	—	$	—
MSCI Netherlands
Barclays Capital Inc.	$	32,492	$	32,492	$	—	$	—
Credit Suisse Securities (USA) LLC		1		1		—		—
Deutsche Bank Securities Inc.		403,223		403,223		—		—
JPMorgan Securities LLC		912,937		912,937		—		—
Merrill Lynch, Pierce, Fenner & Smith		1,126,020		1,126,020		—		—
Morgan Stanley & Co. LLC		235,461		235,461		—		—
State Street Bank & Trust Company		1,034,221		1,034,221		—		—
	$	3,744,355	$	3,744,355	$	—	$	—

^(a)  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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

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Notes to Financial Statements  (continued)

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $7 billion		0.59	%
Over $7 billion, up to and including $11 billion		0.54
Over $11 billion, up to and including $24 billion		0.49
Over $24 billion, up to and including $48 billion		0.44
Over $48 billion, up to and including $72 billion		0.40
Over $72 billion, up to and including $96 billion		0.36
Over $96 billion		0.32

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 45

Notes to Financial Statements  (continued)

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid to BTC
MSCI Austria	$	43,603
MSCI Belgium		17,103
MSCI France		27,175
MSCI Netherlands		8,169
MSCI Sweden		8,150

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Austria	$	914,605	$	1,930,427
MSCI Belgium		7,173		1,170,056
MSCI France		2,343,625		3,753,750
MSCI Netherlands		736,803		1,784,392
MSCI Sweden		3,176,302		2,108,363

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 shown as dividends – affiliated in the statement of operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
MSCI Austria	$	46,074,830	$	46,414,813
MSCI Belgium		8,864,354		9,225,838
MSCI France		44,877,688		32,919,438
MSCI Netherlands		16,173,720		13,808,417
MSCI Sweden		22,761,827		18,881,578

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
MSCI Austria	$	89,847,062	$	178,946,375
MSCI Belgium		22,251,087		33,271,645
MSCI France		406,600,933		146,405,327
MSCI Netherlands		59,358,920		130,619,501
MSCI Sweden		94,750,850		285,563,337

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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Notes to Financial Statements  (continued)

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. As of August 31, 2018, the following permanent differences attributable to foreign currency transactions, passive foreign investment companies, the characterization of corporate actions, realized gains (losses) from in-kind redemptions, the expiration of capital loss carryforwards, were reclassified to the following accounts:

iShares ETF	Paid-in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
MSCI Austria	$	12,573,215		$	1,341,266		$	(13,914,481	)
MSCI Belgium		(8,683,238	)		143,456			8,539,782
MSCI France		21,898,523			676,798			(22,575,321	)
MSCI Netherlands		5,505,695			(69,551	)		(5,436,144	)
MSCI Sweden		3,254,562			3,194,929			(6,449,491	)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
MSCI Austria
Ordinary income	$	6,751,155	$	3,029,256
MSCI Belgium
Ordinary income	$	2,051,350	$	2,204,067
MSCI France
Ordinary income	$	20,500,943	$	9,786,674
MSCI Netherlands
Ordinary income	$	3,982,173	$	4,373,491
MSCI Sweden
Ordinary income	$	15,746,851	$	9,859,546

As of August 31, 2018, 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	$	1,094,963	$	(43,956,339	)	$	(13,062,178	)	$	—		$	(55,923,554	)
MSCI Belgium		231,307		(32,588,840	)		(6,817,195	)		—			(39,174,728	)
MSCI France		591,126		(33,746,894	)		(10,207,026	)		—			(43,362,794	)
MSCI Netherlands		639,588		(18,686,881	)		1,324,108			—			(16,723,185	)
MSCI Sweden		—		(32,547,086	)		(50,925,999	)		(224,609	)		(83,697,694	)

^(a)  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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the characterization of corporate actions and foreign withholding tax reclaims.

^(b)  The Funds elected to defer certain qualified late-year losses and recognize such losses in the year ending next taxable year.

As of August 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non-Expiring(a)		Expiring 2019		Total
MSCI Austria	$	30,129,402	$	13,826,937	$	43,956,339
MSCI Belgium		13,565,323		19,023,517		32,588,840
MSCI France		30,888,080		2,858,814		33,746,894
MSCI Netherlands		16,357,876		2,329,005		18,686,881
MSCI Sweden		27,302,109		5,244,977		32,547,086

^(a) Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2018, the Funds utilized the following amounts of their capital loss carryforwards as follows:

iShares ETF	Utilized
MSCI Austria	$	4,633,980
MSCI Belgium		862,763

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Notes to Financial Statements  (continued)

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Austria	$	162,197,638	$	6,433,551	$	(19,510,037	)	$	(13,076,486	)
MSCI Belgium		68,124,694		3,979,407		(10,797,600	)		(6,818,193	)
MSCI France		948,409,328		75,735,835		(85,939,679	)		(10,203,844	)
MSCI Netherlands		131,158,064		13,514,124		(12,196,948	)		1,317,176
MSCI Sweden		295,433,383		7,228,450		(58,109,146	)		(50,880,696	)

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

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Notes to Financial Statements  (continued)

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

10.  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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Austria
Shares sold		3,800,000		$	92,602,397			6,900,000		$	135,197,556
Shares redeemed		(7,600,000	)		(180,643,314	)		(600,000	)		(11,447,909	)
Net increase (decrease)		(3,800,000	)	$	(88,040,917	)		6,300,000		$	123,749,647
MSCI Belgium
Shares sold		1,040,000		$	22,315,815			800,000		$	14,586,717
Shares redeemed		(1,600,000	)		(33,432,083	)		(4,480,000	)		(83,182,138	)
Net decrease		(560,000	)	$	(11,116,268	)		(3,680,000	)	$	(68,595,421	)
MSCI France
Shares sold		13,200,000		$	421,549,607			14,800,000		$	409,375,231
Shares redeemed		(4,600,000	)		(147,044,014	)		(7,000,000	)		(177,825,168	)
Net increase		8,600,000		$	274,505,593			7,800,000		$	231,550,063
MSCI Netherlands
Shares sold		2,000,000		$	63,403,937			500,000		$	13,981,115
Shares redeemed		(4,150,000	)		(132,065,203	)		(1,650,000	)		(44,054,461	)
Net decrease		(2,150,000	)	$	(68,661,266	)		(1,150,000	)	$	(30,073,346	)
MSCI Sweden
Shares sold		3,075,000		$	107,325,279			6,300,000		$	206,461,394
Shares redeemed		(8,550,000	)		(289,899,547	)		(3,000,000	)		(94,072,500	)
Net increase (decrease)		(5,475,000	)	$	(182,574,268	)		3,300,000		$	112,388,894

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 shares sold in the table above.

11.  FOREIGN WITHHOLDING TAX CLAIMS

The iShares MSCI Sweden ETF has filed 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 recorded a receivable for all recoverable taxes withheld by Sweden based upon favorable determinations issued by the Swedish Tax Authority. The Fund continues to evaluate developments in Sweden for potential impacts to the receivables and payables recorded. Swedish tax claims receivable are disclosed in the statement of assets and liabilities. Professional fees associated with the filing of tax claims in Sweden that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.

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, which is disclosed in the statement of assets and liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.

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Notes to Financial Statements  (continued)

12.  LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

13.  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 additional disclosure in the financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of iShares MSCI Austria ETF, iShares MSCI Belgium ETF,

iShares MSCI France ETF, iShares MSCI Netherlands ETF and iShares MSCI Sweden ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares MSCI Austria ETF, iShares MSCI Belgium ETF, iShares MSCI France ETF, iShares MSCI Netherlands ETF and iShares MSCI Sweden ETF (five of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information  (unaudited)

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend Income
MSCI Austria	$	7,032,250
MSCI Belgium		2,079,628
MSCI France		25,402,766
MSCI Netherlands		5,450,701
MSCI Sweden		14,667,434

For the fiscal year ended August 31, 2018, 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
MSCI Austria	$	7,597,835	$	739,860
MSCI Belgium		2,309,265		344,238
MSCI France		27,016,776		3,543,763
MSCI Netherlands		5,492,326		800,844
MSCI Sweden		15,152,537		11,007

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Board Review and Approval of Investment Advisory Contract

I. iShares MSCI Austria ETF, iShares MSCI Belgium 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

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

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Board Review and Approval of Investment Advisory Contract  (continued)

Costs of Services Provided to Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI France ETF and iShares MSCI Sweden 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

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Board Review and Approval of Investment Advisory Contract  (continued)

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

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Board Review and Approval of Investment Advisory Contract  (continued)

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information  (unaudited)

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	$	0.682357	$	—	$	—	$	0.682357		100	%		—	%		—	%		100	%
MSCI Belgium		0.612783		—		0.008445		0.621228		99			—			1			100
MSCI France		0.741246		—		—		0.741246		100			—			—			100
MSCI Sweden		1.782777		—		—		1.782777		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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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 ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		2		0.14	%
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%		15		1.08
Greater than 0.5% and Less than 1.0%		116		8.38
Greater than 0.0% and Less than 0.5%		589		42.57
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		512		37.00
Less than –0.5% and Greater than –1.0%		100		7.23
Less than –1.0% and Greater than –1.5%		25		1.81
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 –3.0% and Greater than –3.5%		1		0.07
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –6.0%		1		0.07
		1,384		100.00	%

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Supplemental Information  (unaudited)  (continued)

iShares MSCI Belgium ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		3		0.22
Greater than 1.5% and Less than 2.0%		1		0.07
Greater than 1.0% and Less than 1.5%		12		0.87
Greater than 0.5% and Less than 1.0%		112		8.09
Greater than 0.0% and Less than 0.5%		609		44.01
At NAV		16		1.16
Less than 0.0% and Greater than –0.5%		519		37.50
Less than –0.5% and Greater than –1.0%		88		6.36
Less than –1.0% and Greater than –1.5%		17		1.23
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 –3.0% and Greater than –3.5%		1		0.07
Less than –6.0%		1		0.07
		1,384		100.00	%

iShares MSCI France ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		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%		38		2.75
Greater than 0.5% and Less than 1.0%		145		10.48
Greater than 0.0% and Less than 0.5%		654		47.26
At NAV		14		1.01
Less than 0.0% and Greater than –0.5%		434		31.36
Less than –0.5% and Greater than –1.0%		65		4.70
Less than –1.0% and Greater than –1.5%		19		1.37
Less than –1.5% and Greater than –2.0%		3		0.22
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –6.0%		1		0.07
		1,384		100.00	%

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Supplemental Information  (unaudited) (continued)

iShares MSCI Netherlands ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		3		0.22
Greater than 1.0% and Less than 1.5%		15		1.08
Greater than 0.5% and Less than 1.0%		111		8.02
Greater than 0.0% and Less than 0.5%		656		47.41
At NAV		18		1.30
Less than 0.0% and Greater than –0.5%		481		34.76
Less than –0.5% and Greater than –1.0%		78		5.64
Less than –1.0% and Greater than –1.5%		14		1.01
Less than –1.5% and Greater than –2.0%		2		0.14
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –2.5% and Greater than –3.0%		2		0.14
		1,384		100.00	%

iShares MSCI Sweden ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		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%		30		2.17
Greater than 0.5% and Less than 1.0%		139		10.04
Greater than 0.0% and Less than 0.5%		588		42.50
At NAV		11		0.79
Less than 0.0% and Greater than –0.5%		476		34.39
Less than –0.5% and Greater than –1.0%		96		6.94
Less than –1.0% and Greater than –1.5%		25		1.81
Less than –1.5% and Greater than –2.0%		3		0.22
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –3.0% and Greater than –3.5%		3		0.22
Less than –6.0%		1		0.07
		1,384		100.00	%

S U P P L E M E N T A L    I N F O R M A T I O  N 59

Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^(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. and its affiliates.

^(b) Mark K. 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.

Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information  (continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

D I R E C T O R    A N D    O F F I C E R     I N F O R M A T I O N 61

General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

62 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity

NVS	Non-Voting Shares
SDR	Swedish Depositary Receipt

G L O S S A R Y    O F    T E R M S     U S E D    I N    T H I S    R E P O R T 63

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

   This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.   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.   ^©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

  2018 ANNUAL REPORT

iShares, Inc.

u iShares MSCI Eurozone ETF | EZU | Cboe BZX

u iShares MSCI Germany ETF | EWG | NYSE Arca

u iShares MSCI Italy ETF | EWI | NYSE Arca

u iShares MSCI Spain ETF | EWP | NYSE Arca

u iShares MSCI Switzerland ETF | EWL | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		16
Shareholder Expenses		16
Schedules of Investments		17
Financial Statements
Statements of Assets and Liabilities		32
Statements of Operations		34
Statements of Changes in Net Assets		36
Financial Highlights		39
Notes to Financial Statements		44
Report of Independent Registered Public Accounting Firm		53
Important Tax Information (Unaudited)		54
Board Review and Approval of Investment Advisory Contract		55
Supplemental Information		61
Director and Officer Information		65
General Information		67
Glossary of Terms Used in this Report		68

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T   O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® MSCI Eurozone ETF

Investment Objective

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.

Performance

	Average Annual Total Returns								Cumulative Total Returns
	1 Year			5 Years			10 Years		1 Year			5 Years			10 Years
Fund NAV		1.87	%		6.19	%		1.90%		1.87	%		35.01	%		20.66%
Fund Market		1.41			6.10			1.95		1.41			34.48			21.26
Index		1.96			6.32			1.98		1.96			35.85			21.66

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Annualized     Expense     Ratio
$	1,000.00	$	964.50	$	2.38	$	1,000.00	$	1,022.80	$	2.45		0.48%

^(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

6 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of August 31, 2018 (continued) iShares^® MSCI Eurozone ETF

Portfolio Management Commentary

The modest gain in Eurozone equity markets reflected an uncertain economic environment, as an increasing rate of growth in the first half of the reporting period gave way to slowing economic activity later in the reporting period. The slowdown was characterized by weaker consumer spending, decelerating industrial production, and a decrease in exports resulting from escalating global trade tensions.

From a country perspective, stocks in France contributed the most to the Index’s return. The advance in the French equity market was driven largely by the energy sector, which benefited from higher energy prices and robust demand for luxury goods, particularly from China. French stocks advanced despite economic growth that trailed the overall Eurozone.

Equity markets in the Netherlands and Germany also contributed meaningfully to the Index’s return. The Dutch economy outpaced the broader Eurozone as exports remained robust despite an uncertain environment for global trade. Germany’s economy posted its sixteenth consecutive quarter of growth in the second quarter of 2018, its longest sustained expansion since German reunification in 1990. On the downside, stocks in Spain and Italy detracted from the Index’s return. Both countries faced heightened political instability and weaker economies that weighed on their equity markets.

From a sector perspective, information technology stocks contributed the most to the Index’s return, led by IT services and software companies. Payment processing stocks within the IT services industry benefited from the rapid global growth of online commerce and mobile banking, while robust growth in cloud computing drove the advance in software stocks.

The energy and industrials sectors were also noteworthy contributors to the Index’s performance. Energy stocks benefited from a sharp increase in oil prices, while aerospace and defense stocks led the advance in the industrials sector amid increased demand for military equipment, driven by geopolitical tensions. On the downside, the financials sector detracted the most from the Index’s return. European banks were the sector’s largest detractors as investors scaled back their expectations for higher interest rates, a key driver of banks’ profitability.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of    Total Investments(a)
Financials		17.5	%
Industrials		15.0
Consumer Discretionary		13.8
Consumer Staples		10.1
Information Technology		9.6
Materials		9.0
Health Care		8.3
Energy		6.0
Utilities		5.2
Telecommunication Services		3.5
Real Estate		2.0

TEN LARGEST COUNTRIES
Country	Percent of    Total Investments(a)
France		33.6	%
Germany		29.4
Netherlands		11.5
Spain		9.1
Italy		6.8
Finland		3.3
Belgium		3.2
Ireland		1.7
Austria		0.7
Portugal		0.5

^(a)  Excludes money market funds.

F U N D   S U M M A R Y 7

Fund Summary as of August 31, 2018 iShares^® MSCI Germany ETF

Investment Objective

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.

Performance

	Average Annual Total Returns								Cumulative Total Returns
	1 Year			5 Years			10 Years		1 Year			5 Years			10 Years
Fund NAV		1.52	%		5.71	%		3.32%		1.52	%		31.98	%		38.56%
Fund Market		0.87			5.57			3.33		0.87			31.14			38.70
Index		1.61			5.88			3.41		1.61			33.06			39.80

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Annualized     Expense     Ratio
$	1,000.00	$	954.20	$	2.36	$	1,000.00	$	1,022.80	$	2.45		0.48%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

8 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of August 31, 2018(continued) iShares^® MSCI Germany ETF

Portfolio Management Commentary

Germany’s economy posted relatively steady growth during the reporting period, which was supportive for Germany’s equity market. After posting its fastest calendar-year growth rate in six years in 2017, the German economy posted its sixteenth consecutive quarter of growth in the second quarter of 2018, the country’s longest sustained expansion since reunification in 1990. Nonetheless, signs of slowing economic activity emerged late in the reporting period as trade tariffs implemented by the U.S. weakened Germany’s exports. In addition, political tensions within the country’s governing coalition weighed on the equity market in the latter half of the reporting period and contributed to increased market volatility.

From a sector perspective, information technology stocks contributed the most to the Index’s performance, led by software and IT services companies. The software industry advanced on robust growth in cloud computing, while the IT services industry benefited from the rapid global growth of online commerce and mobile banking.

Real estate and materials stocks were modest contributors to the Index’s return. A continuing expansion in the German housing market, particularly in major urban areas such as Berlin, contributed to the advance in the real estate sector. Materials stocks benefited from merger activity in the chemicals industry, as well as strong revenue and earnings growth driven by increased demand for plastics and chemicals used in personal care products.

On the downside, healthcare stocks detracted the most from the Index’s performance. The primary factor driving the decline in the healthcare sector was an adverse legal ruling against a large pharmaceuticals company in the Index. The telecommunication services sector also detracted from the Index’s return amid an increasingly competitive market environment.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of    Total Investments(a)
Consumer Discretionary		17.3%
Materials		14.4
Financials		14.0
Industrials		13.7
Information Technology		13.4
Health Care		12.8
Telecommunication Services		4.3
Consumer Staples		3.5
Utilities		3.5
Real Estate		3.1

TEN LARGEST HOLDINGS
Security	Percent of    Total Investments(a)
SAP SE		8.6%
Siemens AG		7.2
Allianz SE		6.8
Bayer AG		6.3
BASF SE		6.2
Daimler AG		4.3
Deutsche Telekom AG		3.9
adidas AG		3.4
Linde AG		3.1
Deutsche Post AG		2.6

^(a)  Excludes money market funds.

F U N D   S U M M A R Y 9

Fund Summary as of August 31, 2018 iShares^® MSCI Italy ETF

Investment Objective

The iShares MSCI Italy ETF (the “Fund”) (formerly the iShares MSCI Italy Capped ETF) 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.

Performance

	Average Annual Total Returns								Cumulative Total Returns
	1 Year			5 Years			10 Years		1 Year			5 Years			10 Years
Fund NAV		(6.98	)%		3.59	%		(3.12)%		(6.98	)%		19.28	%		(27.15)%
Fund Market		(7.55	)		3.52			(3.00)		(7.55	)		18.90			(26.24)
Index		(7.03	)		3.54			(3.03)		(7.03	)		19.00			(26.45)

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses     Paid During     the Period  (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses     Paid During     the Period  (a)		Annualized     Expense     Ratio
$	1,000.00	$	876.10	$	2.27	$	1,000.00	$	1,022.80	$	2.45		0.48%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

10 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of August 31, 2018 (continued) iShares^® MSCI Italy ETF

Portfolio Management Commentary

The Italian economy slowed, particularly during the latter half of the reporting period, amid global trade tensions that weighed on Italy’s exports. Political uncertainty was a destabilizing force as Italian elections in March 2018 failed to produce an outright majority for any political party and it took nearly three months for a populist governing coalition to form. The new government’s plans to lower taxes and provide a basic income for the population led to concerns of increasing Italy’s sovereign debt, which is already among the highest in the Eurozone relative to the size of the country’s economy.

From a sector perspective, financials stocks detracted the most from the Index’s return for the reporting period. The majority of the weakness in the financials sector came from the banking industry as many Italian banks have significant exposure to Italy’s sovereign debt. In addition, the Italian banking industry is still contending with a meaningful amount of non-performing loans from the financial crisis a decade ago.

The industrials and utilities sectors also declined markedly, weighing on the Index’s performance. The transportation industry detracted the most within the industrials sector amid concerns about Italy’s deteriorating infrastructure. Within the utilities sector, the prices of electric utilities stocks were constrained by rising bond yields and government policy uncertainty.

On the upside, the energy sector contributed the most to the Index’s return. A sharp increase in oil prices benefited both integrated oil and gas companies and energy equipment and services stocks. The consumer discretionary sector was another noteworthy contributor to the Index’s performance, led by automobile manufacturers, which advanced as continued negotiations and a tentative moratorium on auto tariffs between the U.S. and Europe eased trade concerns.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of    Total Investments(a)
Financials		30.0%
Energy		20.1
Consumer Discretionary		16.4
Utilities		14.5
Industrials		11.7
Telecommunication Services		3.7
Consumer Staples		2.0
Health Care		1.6

TEN LARGEST HOLDINGS
Security	Percent of    Total Investments(a)
Eni SpA		13.9%
Enel SpA		11.8
Intesa Sanpaolo SpA		10.7
UniCredit SpA		8.3
Ferrari NV		4.7
Fiat Chrysler Automobiles NV		4.5
Assicurazioni Generali SpA		4.4
CNH Industrial NV		4.2
Luxottica Group SpA		3.9
Atlantia SpA		3.3

^(a)  Excludes money market funds.

F U N D   S U M M A R Y 11

Fund Summary as of August 31, 2018 iShares^® MSCI Spain ETF

Investment Objective

The iShares MSCI Spain ETF (the “Fund”) (formerly the iShares MSCI Spain Capped ETF) 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.

Performance

	Average Annual Total Returns								Cumulative Total Returns
	1 Year			5 Years			10 Years		1 Year			5 Years			10 Years
Fund NAV		(8.28	)%		3.29	%		(0.37)%		(8.28	)%		17.59	%		(3.60)%
Fund Market		(8.88	)		3.17			(0.35)		(8.88	)		16.89			(3.49)
Index		(8.01	)		3.84			(0.50)		(8.01	)		20.73			(4.87)

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Annualized     Expense     Ratio
$	1,000.00	$	917.40	$	2.32	$	1,000.00	$	1,022.80	$	2.45		0.48%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

12 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of August 31, 2018 (continued) iShares^® MSCI Spain ETF

Portfolio Management Commentary

Political instability led to slower economic growth during the reporting period. In late 2017, the Catalonia region held a referendum for independence from Spain, which resulted in the dissolution of the Catalan parliament and a regional election won by separatists. More recently, Spain’s prime minister resigned in the wake of a corruption scandal. Amid the political upheaval, particularly during the second half of the reporting period, the Spanish economy posted its lowest rate of expansion in four years. Spain’s exports, a key driver of its economy, showed signs of decreasing as global trade tensions heightened.

From a sector perspective, financials stocks detracted the most from the Index’s return. The banking industry led the decline in the financials sector. Many Spanish banks have significant exposure to Italy’s sovereign debt; political developments in Italy, including a new populist-led government’s plan to reduce taxes and provide basic income, led to concerns about an increase in the country’s debt. Exposure to Turkey, which faced sharply rising inflation and a weakening currency, also weighed on Spanish banks late in the reporting period.

The telecommunication services sector was a meaningful detractor from the Index’s return, weighed down by weakness in countries outside of Spain, including Latin America. The consumer discretionary sector also restrained the Index’s performance. Retailers were the weakest industry in the sector amid lower sales and declining consumer confidence.

On the upside, information technology stocks contributed the most to the Index’s return, led by the software and services industry. In particular, IT services for airlines and travel agents benefited from an increase in bookings.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of    Total Investments(a)
Financials		39.6%
Utilities		19.2
Industrials		14.4
Telecommunication Services		8.1
Energy		7.1
Information Technology		4.5
Consumer Discretionary		4.1
Health Care		3.0

TEN LARGEST HOLDINGS
Security	Percent of    Total Investments(a)
Banco Santander SA		17.8%
Iberdrola SA		9.5
Banco Bilbao Vizcaya Argentaria SA		8.9
Telefonica SA		8.1
Repsol SA		4.7
Amadeus IT Group SA		4.5
CaixaBank SA		4.4
Industria de Diseno Textil SA		4.1
Red Electrica Corp. SA		3.9
Aena SME SA		3.7

^(a)  Excludes money market funds.

F U N D   S U M M A R Y 13

Fund Summary as of August 31, 2018 iShares^® MSCI Switzerland ETF

Investment Objective

The iShares MSCI Switzerland ETF (the “Fund”) (formerly the iShares MSCI Switzerland Capped ETF) 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.

Performance

	Average Annual Total Returns								Cumulative Total Returns
	1 Year			5 Years			10 Years		1 Year			5 Years			10 Years
Fund NAV		4.43	%		6.02	%		6.59%		4.43	%		33.92	%		89.26%
Fund Market		3.82			5.94			6.60		3.82			33.45			89.56
Index		4.66			6.19			6.48		4.66			35.00			87.44

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

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.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Annualized     Expense     Ratio
$	1,000.00	$	1,023.70	$	2.45	$	1,000.00	$	1,022.80	$	2.45		0.48%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

14 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of August 31, 2018 (continued) iShares^® MSCI Switzerland ETF

Portfolio Management Commentary

Switzerland’s economy grew at its fastest year-over-year rate in eight years during the reporting period. Despite escalating global trade tensions, robust export growth contributed to the strength of the Swiss economy, along with a rapidly growing manufacturing sector. A recovery in the labor market, as the unemployment rate declined to its lowest level in a decade, was also a positive indicator for the domestic economy.

From a sector perspective, healthcare stocks contributed the most to the Index’s return for the reporting period. Within the sector, pharmaceuticals stocks led the advance, benefiting from robust sales of medications to treat chronic kidney and heart disease, as well as treatments for various forms of cancer. Life sciences and healthcare equipment stocks were also notable contributors to the Index’s return. Increased demand for the raw materials used in gene and cell therapy bolstered life sciences stocks, while strong sales of hearing aids and dental implants drove gains in the healthcare equipment industry.

The consumer staples sector was another meaningful contributor to the Index’s performance. Food products companies, led by Swiss chocolate makers, were the largest contributors in the sector. Chocolate companies posted solid growth due largely to sizable sales volume increases in emerging markets.

The financials sector was also a key source of strength for the Index’s performance. Growth in assets under management bolstered the asset management and custody banks industry, while insurers benefited from strong property and casualty premium growth. Swiss financials stocks advanced despite a referendum, ultimately rejected by voters, to create a sovereign money system in the country. The initiative would have changed lending practices and limited the ability of Swiss banks to extend credit.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of    Total Investments(a)
Health Care		30.6%
Consumer Staples		22.2
Financials		19.7
Industrials		10.5
Materials		7.4
Consumer Discretionary		6.5
Telecommunication Services		1.2
Information Technology		1.1
Real Estate		0.8

TEN LARGEST HOLDINGS
Security	Percent of    Total Investments(a)
Nestle SA		19.7%
Novartis AG		12.9
Roche Holding AG		12.4
UBS Group AG		4.5
Cie. Financiere Richemont SA		4.1
Zurich Insurance Group AG		4.1
ABB Ltd.		3.9
Credit Suisse Group AG		3.4
Swiss Re AG		2.6
Lonza Group AG		2.2

^(a)  Excludes money market funds.

F U N D   S U M M A R Y 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 ask 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. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments August 31, 2018 iShares^® MSCI Eurozone ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Austria — 0.7%
ANDRITZ AG		145,911	$	8,658,137
Erste Group Bank AG		608,683		24,270,098
OMV AG		297,401		15,789,164
Raiffeisen Bank International AG		303,480		8,650,922
Voestalpine AG		232,412		10,448,692
				67,817,013
Belgium — 3.2%
Ageas		372,397		19,315,790
Anheuser-Busch InBev SA/NV		1,543,379		144,824,889
Colruyt SA		122,296		7,285,317
Groupe Bruxelles Lambert SA		166,816		17,545,768
KBC Group NV		508,082		36,178,577
Proximus SADP		310,921		7,179,057
Solvay SA		149,045		19,881,892
Telenet Group Holding NV(a)		107,750		5,904,790
UCB SA		255,249		23,390,311
Umicore SA		424,424		23,722,977
				305,229,368
Finland — 3.2%
Elisa OYJ		291,704		12,506,798
Fortum OYJ		898,232		22,783,018
Kone OYJ, Class B		682,936		36,956,650
Metso OYJ		218,025		7,673,578
Neste OYJ		259,911		22,619,995
Nokia OYJ		11,408,309		63,686,556
Nokian Renkaat OYJ		238,249		9,854,553
Orion OYJ, Class B		214,491		7,903,571
Sampo OYJ, Class A		893,745		45,827,158
Stora Enso OYJ, Class R		1,110,651		20,721,101
UPM-Kymmene OYJ		1,079,211		41,687,965
Wartsila OYJ Abp		896,111		18,965,345
				311,186,288
France — 33.5%
Accor SA, NVS		379,599		19,035,688
Aeroports de Paris, NVS		60,227		13,265,026
Air Liquide SA		868,545		109,644,868
Airbus SE		1,177,997		145,639,854
Alstom SA, NVS		314,334		13,897,645
Amundi SA(b)		120,420		8,700,746
Arkema SA, NVS		138,418		17,377,218
Atos SE		192,171		23,074,579
AXA SA, NVS		3,933,209		99,511,365
BioMerieux, NVS		83,227		7,330,378
BNP Paribas SA		2,279,324		134,137,786
Bollore SA, NVS		1,813,648		8,702,377
Bouygues SA, NVS		442,174		19,565,267
Bureau Veritas SA, NVS		546,507		14,077,956
Capgemini SE		324,295		41,787,870
Carrefour SA, NVS		1,174,409		21,001,943
Casino Guichard Perrachon SA, NVS(c)		115,811		3,679,915
Cie. de Saint-Gobain, NVS		1,008,781		43,503,795
Cie. Generale des Etablissements Michelin SCA, Class B, NVS		345,750		41,012,445
CNP Assurances, NVS		349,792		8,086,749
Covivio		74,323		7,787,054
Credit Agricole SA		2,307,599		31,660,230
Danone SA, NVS		1,245,129		98,251,317
Dassault Aviation SA, NVS		5,154		9,612,673

Security	Shares		Value
France (continued)
Dassault Systemes SE, NVS		263,279	$	42,762,972
Edenred, NVS		476,549		18,203,072
Eiffage SA, NVS		157,163		17,730,017
Electricite de France SA, NVS		1,188,049		19,504,176
Engie SA		3,703,593		54,424,300
Essilor International Cie Generale d’Optique SA, NVS		421,349		60,936,758
Eurazeo SA, NVS		92,399		7,030,906
Eurofins Scientific SE, NVS(c)		23,150		13,101,192
Eutelsat Communications SA		358,677		8,513,339
Faurecia SA, NVS		153,606		9,432,869
Gecina SA		90,101		15,504,724
Getlink, NVS		944,357		11,921,535
Hermes International, NVS		64,518		42,052,348
ICADE		64,094		6,267,890
Iliad SA, NVS		53,597		6,940,678
Imerys SA, NVS		73,430		5,288,475
Ingenico Group SA, NVS		122,493		8,628,195
Ipsen SA, NVS		76,521		13,635,274
JCDecaux SA		150,776		4,978,642
Kering SA, NVS		153,837		83,766,988
Klepierre SA		414,655		14,907,734
Legrand SA		537,700		40,602,332
L’Oreal SA		511,209		122,943,398
LVMH Moet Hennessy Louis Vuitton SE, NVS		564,961		198,415,637
Natixis SA		1,902,970		12,731,103
Orange SA, NVS		4,045,628		65,663,859
Pernod Ricard SA, NVS		430,489		68,118,835
Peugeot SA, NVS		1,192,900		32,894,147
Publicis Groupe SA, NVS		423,654		27,258,546
Remy Cointreau SA, NVS(c)		45,977		6,456,753
Renault SA, NVS		389,595		33,634,388
Rexel SA		622,330		9,811,294
Safran SA		676,431		88,383,156
Sanofi, NVS		2,281,401		195,603,414
Schneider Electric SE, NVS		1,104,594		90,272,076
SCOR SE		338,579		13,752,325
SEB SA, NVS		45,815		8,560,901
SES SA		737,996		14,837,611
Societe BIC SA, NVS		54,896		5,093,750
Societe Generale SA, NVS		1,555,692		63,786,058
Sodexo SA, NVS		183,131		19,116,896
STMicroelectronics NV		1,382,355		28,476,182
Suez		755,744		10,951,779
Teleperformance, NVS		117,430		22,612,225
Thales SA, NVS		217,429		30,698,948
TOTAL SA, NVS		4,858,884		304,543,793
Ubisoft Entertainment SA, NVS(a)		159,740		17,221,549
Unibail-Rodamco-Westfield		280,232		59,015,018
Valeo SA, NVS		485,704		22,101,703
Veolia Environnement SA, NVS		1,082,924		22,881,267
Vinci SA		1,025,771		98,534,053
Vivendi SA, NVS		2,101,446		54,646,457
Wendel SA, NVS		56,516		8,390,510
				3,203,886,791
Germany — 27.6%
1&1 Drillisch AG		108,196		5,488,630
adidas AG		381,992		95,511,778
Allianz SE, Registered		892,058		190,601,635
Axel Springer SE		98,227		7,154,371
BASF SE		1,860,626		172,515,912

S C H E D U L E   O F   I N V E S T M E N T S 17

Schedule of Investments (continued) August 31, 2018   iShares^® MSCI Eurozone ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Germany (continued)
Bayer AG, Registered		1,889,921	$	176,749,380
Bayerische Motoren Werke AG		667,511		64,780,276
Beiersdorf AG		203,185		23,711,489
Brenntag AG		312,273		18,871,335
Commerzbank AG(a)		2,027,941		19,218,197
Continental AG		222,825		40,975,538
Covestro AG(b)		389,519		33,256,198
Daimler AG, Registered		1,841,610		119,349,088
Delivery Hero SE(a)(b)		186,548		10,301,123
Deutsche Bank AG, Registered(c)		3,976,356		44,886,193
Deutsche Boerse AG		391,425		54,195,318
Deutsche Lufthansa AG, Registered		475,200		12,434,609
Deutsche Post AG, Registered		2,003,136		73,205,653
Deutsche Telekom AG, Registered		6,745,914		109,177,759
Deutsche Wohnen SE, Bearer		715,013		36,221,682
E.ON SE		4,458,896		47,625,141
Evonik Industries AG		327,693		12,242,602
Fraport AG Frankfurt Airport Services Worldwide		83,682		7,539,866
Fresenius Medical Care AG & Co. KGaA		435,268		44,191,444
Fresenius SE & Co. KGaA		842,304		64,465,741
GEA Group AG		358,661		13,658,292
Hannover Rueck SE		122,175		16,816,412
HeidelbergCement AG		299,432		23,892,519
Henkel AG & Co. KGaA		211,389		23,648,191
HOCHTIEF AG		39,251		6,384,460
HUGO BOSS AG(c)		127,780		10,231,606
Infineon Technologies AG		2,303,523		58,748,847
Innogy SE(a)		311,244		13,525,640
K+S AG, Registered		386,669		8,815,580
KION Group AG		143,580		9,826,191
LANXESS AG		176,141		13,870,338
Linde AG		376,834		86,023,148
MAN SE		71,527		7,793,706
Merck KGaA		261,046		27,481,212
METRO AG(c)		368,434		5,767,793
MTU Aero Engines AG		105,454		23,177,216
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered		305,209		65,979,541
OSRAM Licht AG		203,390		9,153,397
ProSiebenSat.1 Media SE		477,269		12,599,809
Puma SE		16,955		9,311,208
QIAGEN NV(a)		460,764		17,878,893
RTL Group SA		76,801		5,772,523
RWE AG		1,049,824		26,689,116
SAP SE		1,991,746		240,128,544
Siemens AG, Registered		1,550,907		202,065,637
Siemens Healthineers AG(a)(b)		309,817		14,114,280
Symrise AG		249,247		23,333,303
Telefonica Deutschland Holding AG		1,496,823		6,239,984
thyssenkrupp AG		883,280		20,461,426
Uniper SE		407,453		12,477,560
United Internet AG, Registered		248,588		13,107,996
Volkswagen AG		66,932		10,801,312
Vonovia SE		979,497		50,360,885
Wirecard AG		238,375		53,056,906
Zalando SE(a)(b)(c)		224,872		11,857,456
				2,639,721,885
Ireland — 1.7%
AIB Group PLC		1,650,942		9,304,696
Bank of Ireland Group PLC		1,892,564		15,502,063

Security	Shares		Value
Ireland (continued)
CRH PLC		1,711,875	$	56,984,423
Irish Bank Resolution Corp. Ltd.(d)		446,666		5
Kerry Group PLC, Class A		321,747		36,780,134
Paddy Power Betfair PLC		172,488		15,754,143
Ryanair Holdings PLC(a)		42,432		700,802
Ryanair Holdings PLC, ADR, NVS(a)(c)		47,972		4,886,908
Smurfit Kappa Group PLC		460,417		18,845,750
				158,758,924
Italy — 6.7%
Assicurazioni Generali SpA		2,380,713		39,735,057
Atlantia SpA		999,150		20,867,066
CNH Industrial NV		2,072,476		24,836,648
Davide Campari-Milano SpA, NVS		1,165,799		10,342,601
Enel SpA		16,503,852		81,801,481
Eni SpA		5,163,120		95,996,465
Ferrari NV		249,046		32,656,507
Fiat Chrysler Automobiles NV(a)		2,186,762		37,044,961
Intesa Sanpaolo SpA		30,172,210		74,686,643
Leonardo SpA(c)		926,740		10,405,225
Luxottica Group SpA		343,831		22,850,698
Mediobanca Banca di Credito Finanziario SpA		1,259,392		11,745,862
Moncler SpA		361,329		16,379,024
Pirelli & C SpA(a)(b)(c)		801,007		6,466,017
Poste Italiane SpA(b)		1,081,123		8,342,301
Prysmian SpA		479,430		12,394,685
Recordati SpA		216,630		7,604,316
Snam SpA		4,593,103		18,896,644
Telecom Italia SpA/Milano(a)		23,135,912		14,778,325
Tenaris SA		959,431		16,130,500
Terna Rete Elettrica Nazionale SpA		2,814,531		14,821,318
UniCredit SpA		4,068,956		58,865,401
				637,647,745
Netherlands — 11.4%
ABN AMRO Group NV, CVA(b)		854,178		23,186,189
Aegon NV		3,602,149		21,651,217
AerCap Holdings NV(a)		256,393		14,606,709
Akzo Nobel NV		511,328		47,903,758
ArcelorMittal		1,347,334		40,664,130
ASML Holding NV		831,106		169,842,390
EXOR NV		223,746		14,573,183
Heineken Holding NV		230,863		22,052,800
Heineken NV		530,189		52,520,712
ING Groep NV		7,868,894		107,027,271
Koninklijke Ahold Delhaize NV		2,524,440		61,563,397
Koninklijke DSM NV		367,083		38,601,382
Koninklijke KPN NV		6,778,855		17,359,717
Koninklijke Philips NV .		1,905,739		85,344,901
Koninklijke Vopak NV(c)		143,450		7,410,539
NN Group NV		610,676		26,239,552
NXP Semiconductors NV(a)		696,703		64,890,918
Randstad NV		239,220		15,018,815
RELX NV		1,950,100		43,291,387
Unilever NV, CVA		3,126,974		180,256,257
Wolters Kluwer NV		587,751		37,338,104
				1,091,343,328
Portugal — 0.5%
EDP - Energias de Portugal SA		5,168,334		20,234,938
Galp Energia SGPS SA		1,013,837		20,607,594

18 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments (continued) August 31, 2018   iShares^® MSCI Eurozone ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Portugal (continued)
Jeronimo Martins SGPS SA		504,263	$	7,571,490
				48,414,022
Spain — 9.1%
ACS Actividades de Construccion y Servicios SA		523,330		21,847,126
Aena SME SA(b)		135,987		24,128,676
Amadeus IT Group SA		889,120		82,676,503
Banco Bilbao Vizcaya Argentaria SA		13,509,982		84,410,272
Banco de Sabadell SA		11,535,656		17,743,529
Banco Santander SA		32,710,338		163,194,702
Bankia SA		2,468,526		9,297,082
Bankinter SA		1,390,845		12,402,250
CaixaBank SA		7,266,520		32,643,185
Enagas SA		508,159		14,160,265
Endesa SA		634,778		14,246,899
Ferrovial SA		979,291		21,221,413
Grifols SA		614,919		18,122,552
Iberdrola SA		12,077,941		90,246,309
Industria de Diseno Textil SA		2,208,899		66,949,885
International Consolidated Airlines Group SA		1,259,930		11,346,283
Mapfre SA		2,151,739		6,356,507
Naturgy Energy Group SA		707,243		19,033,144
Red Electrica Corp. SA		902,863		19,013,702
Repsol SA		2,766,317		53,316,254
Siemens Gamesa Renewable Energy SA(c)		489,044		7,314,527
Telefonica SA		9,459,372		76,898,752
				866,569,817
United Kingdom — 0.2%
Coca-Cola European Partners PLC		445,943		19,015,010
Total Common Stocks — 97.8% (Cost: $9,826,953,232)				9,349,590,191
Preferred Stocks
Germany — 1.7%
Bayerische Motoren Werke AG, Preference Shares, NVS		114,357		9,613,175
Fuchs Petrolub SE, Preference Shares, NVS		145,156		8,520,448
Henkel AG & Co. KGaA, Preference Shares, NVS		359,415		45,978,805

Security	Shares		Value
Germany (continued)
Porsche Automobil Holding SE, Preference Shares, NVS(c)		310,232	$	19,679,256
Sartorius AG, Preference Shares, NVS.		72,568		13,205,296
Schaeffler AG, Preference Shares, NVS		335,436		4,566,272
Volkswagen AG, Preference Shares, NVS		375,525		61,536,263
				163,099,515
Italy — 0.1%
Telecom Italia SpA/Milano, Preference Shares, NVS		12,190,918		6,792,779
Total Preferred Stocks — 1.8% (Cost: $217,113,212)				169,892,294
Short-Term Investments
Money Market Funds — 0.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(e)(f)(g)		80,281,282		80,305,368
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(e)(f)		1,873,964		1,873,964
				82,179,332
Total Short-Term Investments — 0.9% (Cost: $82,167,605)				82,179,332
Total Investments in Securities — 100.5% (Cost: $10,126,234,049)				9,601,661,817
Other Assets, Less Liabilities — (0.5)%				(43,427,653	)
Net Assets — 100.0%			$	9,558,234,164

^(a)  Non-income producing security.

^(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  All or a portion of this security is on loan.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(e)  Affiliate of the Fund.

^(f)  Annualized 7-day yield as of period-end.

^(g)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		57,577,483		22,703,799		80,281,282	$	80,305,368	$	1,858,087	(b)	$	(19,866	)	$	2,689
BlackRock Cash Funds: Treasury, SL Agency Shares		489,933		1,384,031		1,873,964		1,873,964		122,897			—			—
							$	82,179,332	$	1,980,984		$	(19,866	)	$	2,689

^(a) Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

S C H E D U L E   O F   I N V E S T M E N T S 19

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Eurozone ETF

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro STOXX 50 Index		936		09/21/18	$	36,907	$	(854,928	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	854,928

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(1,069,233	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(854,928	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	43,853,194

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	9,349,590,186		$	—	$	5	$	9,349,590,191
Preferred Stocks		169,892,294			—		—		169,892,294
Money Market Funds		82,179,332			—		—		82,179,332
	$	9,601,661,812		$	—	$	5	$	9,601,661,817
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(854,928	)	$	—	$	—	$	(854,928	)

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

See notes to financial statements.

20 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments August 31, 2018 iShares^® MSCI Germany ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 0.8%
MTU Aero Engines AG		125,224	$	27,522,367
Air Freight & Logistics — 2.6%
Deutsche Post AG, Registered		2,375,443		86,811,807
Airlines — 0.4%
Deutsche Lufthansa AG, Registered		567,158		14,840,884
Auto Components — 1.5%
Continental AG		265,131		48,755,235
Automobiles — 6.9%
Bayerische Motoren Werke AG		798,020		77,445,849
Daimler AG, Registered		2,191,726		142,039,031
Volkswagen AG		78,194		12,618,744
				232,103,624
Banks — 0.7%
Commerzbank AG(a)		2,420,883		22,941,993
Capital Markets — 3.5%
Deutsche Bank AG, Registered(b)		4,732,233		53,418,740
Deutsche Boerse AG		465,166		64,405,235
				117,823,975
Chemicals — 12.4%
BASF SE		2,213,709		205,253,515
Covestro AG(c)		463,654		39,585,667
Evonik Industries AG		392,904		14,678,883
K+S AG, Registered		459,429		10,474,418
LANXESS AG		210,067		16,541,863
Linde AG		447,653		102,189,612
Symrise AG		297,717		27,870,830
				416,594,788
Construction & Engineering — 0.2%
HOCHTIEF AG		46,671		7,591,376
Construction Materials — 0.9%
HeidelbergCement AG		358,234		28,584,495
Diversified Telecommunication Services — 4.1%
Deutsche Telekom AG, Registered		8,033,178		130,011,200
Telefonica Deutschland Holding AG		1,792,995		7,474,672
				137,485,872
Electrical Equipment — 0.3%
OSRAM Licht AG		239,241		10,766,841
Food & Staples Retailing —0.2%
METRO AG		434,789		6,806,573
Health Care Equipment & Supplies — 0.5%
Siemens Healthineers AG(a)(c)		361,382		16,463,417
Health Care Providers & Services — 3.9%
Fresenius Medical Care AG & Co. KGaA		519,841		52,777,885
Fresenius SE & Co. KGaA		1,003,020		76,766,141
				129,544,026
Household Products — 0.8%
Henkel AG & Co. KGaA		250,459		28,018,971
Independent Power and Renewable Electricity Producers — 0.4%
Uniper SE		485,084		14,854,878

Security	Shares		Value
Industrial Conglomerates — 7.2%
Siemens AG, Registered		1,843,789	$	240,224,849
Insurance — 9.7%
Allianz SE, Registered .		1,061,085		226,716,801
Hannover Rueck SE		145,646		20,047,008
Muenchener Rueckversicherungs-Gesellschaft AG in
Muenchen, Registered		360,239		77,875,829
				324,639,638
Internet & Direct Marketing Retail — 0.4%
Zalando SE(a)(b)(c)		268,502		14,158,057
Internet Software & Services — 0.8%
Delivery Hero SE(a)(c)		220,940		12,200,239
United Internet AG, Registered		297,141		15,668,186
				27,868,425
IT Services — 1.9%
Wirecard AG		282,924		62,972,510
Life Sciences Tools & Services — 0.6%
QIAGEN NV(a)		545,991		21,185,932
Machinery —1.1%
GEA Group AG		418,784		15,947,857
KION Group AG		170,568		11,673,170
MAN SE		85,029		9,264,908
				36,885,935
Media — 0.9%
Axel Springer SE		117,079		8,527,458
ProSiebenSat.1 Media SE		561,542		14,824,600
RTL Group SA		93,473		7,025,625
				30,377,683
Metals & Mining —0.7%
thyssenkrupp AG		1,052,646		24,384,837
Multi-Utilities — 3.1%
E.ON SE		5,305,050		56,662,849
Innogy SE(a)		333,620		14,498,028
RWE AG		1,252,115		31,831,852
				102,992,729
Personal Products — 0.8%
Beiersdorf AG		243,274		28,389,835
Pharmaceuticals — 7.3%
Bayer AG, Registered .		2,248,720		210,305,016
Merck KGaA		311,444		32,786,783
				243,091,799
Real Estate Management & Development — 3.1%
Deutsche Wohnen SE, Bearer		854,806		43,303,423
Vonovia SE		1,170,244		60,168,152
				103,471,575
Semiconductors & Semiconductor Equipment — 2.1%
Infineon Technologies AG		2,739,072		69,857,050
Software — 8.5%
SAP SE		2,368,730		285,578,425
Textiles, Apparel & Luxury Goods — 4.1%
adidas AG		453,826		113,472,869
HUGO BOSS AG		152,599		12,218,914
Puma SE		20,034		11,002,108
				136,693,891

S C H E D U L E   O F   I N V E S T M E N T S 21

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Germany ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Trading Companies & Distributors — 0.7%
Brenntag AG		373,283	$	22,558,302
Transportation Infrastructure — 0.3%
Fraport AG Frankfurt Airport Services Worldwide		100,586		9,062,940
Wireless Telecommunication Services — 0.2%
1&1 Drillisch AG		128,037		6,495,136
Total Common Stocks — 93.6% (Cost: $3,406,742,356)				3,138,400,670
Preferred Stocks
Auto Components — 0.2%
Schaeffler AG, Preference Shares, NVS		400,875		5,457,090
Automobiles — 3.2%
Bayerische Motoren Werke AG, Preference Shares, NVS		132,825		11,165,648
Porsche Automobil Holding SE, Preference Shares, NVS		369,988		23,469,818
Volkswagen AG, Preference Shares, NVS		447,296		73,297,182
				107,932,648
Chemicals — 0.3%
Fuchs Petrolub SE, Preference Shares, NVS		168,003		9,861,534
Health Care Equipment & Supplies — 0.5%
Sartorius AG, Preference Shares, NVS		85,542		15,566,192
Household Products — 1.6%
Henkel AG & Co. KGaA, Preference Shares, NVS		429,409		54,932,912
Total Preferred Stocks — 5.8% (Cost: $239,511,634)				193,750,376

Security	Shares		Value
Short-Term Investments
Money Market Funds — 1.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		62,176,709	$	62,195,362
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		247,268		247,268
				62,442,630
Total Short-Term Investments — 1.9% (Cost: $62,440,838)				62,442,630
Total Investments in Securities — 101.3% (Cost: $3,708,694,828)				3,394,593,676
Other Assets, Less Liabilities — (1.3)%				(43,366,103	)
Net Assets — 100.0%			$	3,351,227,573

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		69,810,722		(7,634,013	)		62,176,709	$	62,195,362	$	783,333	(b)	$	(14,372	)	$	1,792
BlackRock Cash Funds: Treasury, SL Agency Shares		589,306		(342,038	)		247,268		247,268		31,897			—			—
								$	62,442,630	$	815,230		$	(14,372	)	$	1,792

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
DAX Index		51		09/21/18	$	18,320	$	(566,910	)

22 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Germany ETF

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	566,910

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(244,608	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	983,486

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	26,122,495

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	3,138,400,670		$	—	$	—	$	3,138,400,670
Preferred Stocks		193,750,376			—		—		193,750,376
Money Market Funds		62,442,630			—		—		62,442,630
	$	3,394,593,676		$	—	$	—	$	3,394,593,676
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(566,910	)	$	—	$	—	$	(566,910	)

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

See notes to financial statements.

S C H E D U L E   O F   I N V E S T M E N T S 23

Schedule of Investments August 31, 2018 iShares^® MSCI Italy ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 1.8%
Leonardo SpA(a)		663,609	$	7,450,850
Auto Components — 1.0%
Pirelli & C SpA(b)(c)		497,091		4,012,698
Automobiles — 9.2%
Ferrari NV		146,511		19,211,461
Fiat Chrysler Automobiles NV(c)		1,072,278		18,164,984
				37,376,445
Banks — 21.2%
Intesa Sanpaolo SpA		17,494,636		43,305,267
Mediobanca Banca di Credito Finanziario SpA		961,426		8,966,848
UniCredit SpA		2,323,976		33,620,855
				85,892,970
Beverages — 2.0%
Davide Campari-Milano SpA, NVS		927,126		8,225,170
Diversified Financial Services — 2.6%
EXOR NV		162,799		10,603,540
Diversified Telecommunication Services — 2.4%
Telecom Italia SpA/Milano(c)		15,636,759		9,988,156
Electric Utilities — 14.5%
Enel SpA		9,611,588		47,639,917
Terna Rete Elettrica Nazionale SpA		2,097,390		11,044,854
				58,684,771
Electrical Equipment — 2.4%
Prysmian SpA		372,240		9,623,506
Energy Equipment & Services — 2.9%
Tenaris SA		690,825		11,614,543
Insurance — 6.1%
Assicurazioni Generali SpA		1,082,767		18,071,817
Poste Italiane SpA(b)		882,071		6,806,350
				24,878,167
Machinery — 4.2%
CNH Industrial NV		1,422,464		17,046,874
Oil, Gas & Consumable Fuels — 17.2%
Eni SpA		3,029,861		56,333,369
Snam SpA		3,239,115		13,326,156
				69,659,525

Security	Shares		Value
Pharmaceuticals — 1.6%
Recordati SpA(a)		181,395	$	6,367,469
Textiles, Apparel & Luxury Goods — 6.2%
Luxottica Group SpA		239,065		15,888,044
Moncler SpA		202,409		9,175,189
				25,063,233
Transportation Infrastructure — 3.3%
Atlantia SpA		641,819		13,404,273
Total Common Stocks — 98.6% (Cost: $480,960,185)				399,892,190
Preferred Stocks
Diversified Telecommunication Services — 1.2%
Telecom Italia SpA/Milano, Preference Shares, NVS		9,185,361		5,118,083
Total Preferred Stocks — 1.2% (Cost: $8,265,772)				5,118,083
Short-Term Investments
Money Market Funds — 2.3%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		9,072,916		9,075,638
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		142,515		142,515
				9,218,153
Total Short-Term Investments — 2.3% (Cost: $9,217,449)				9,218,153
Total Investments in Securities — 102.1% (Cost: $498,443,406)				414,228,426
Other Assets, Less Liabilities — (2.1)%				(8,603,485	)
Net Assets — 100.0%			$	405,624,941

^(a)  All or a portion of this security is on loan.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  Non-income producing security.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

24 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Italy ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		—		9,072,916			9,072,916	$	9,075,638	$	32,477	(b)	$	5,241	$	704
BlackRock Cash Funds: Treasury, SL Agency Shares		998,621		(856,106	)		142,515		142,515		6,262			—		—
								$	9,218,153	$	38,739		$	5,241	$	704

^(a) Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
FTSE/MIB Index		4		09/21/18	$	471	$	(30,749	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	30,749

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(356,621	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(30,749	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	654,413

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

S C H E D U L E   O F   I N V E S T M E N T S 25

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Italy ETF

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	399,892,190		$	—	$	—	$	399,892,190
Preferred Stocks		5,118,083			—		—		5,118,083
Money Market Funds		9,218,153			—		—		9,218,153
	$	414,228,426		$	—	$	—	$	414,228,426
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(30,749	)	$	—	$	—	$	(30,749	)

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

See notes to financial statements.

26 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments August 31, 2018 iShares^® MSCI Spain ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Airlines — 2.2%
International Consolidated Airlines Group SA		2,154,835	$	19,405,339
Banks — 38.5%
Banco Bilbao Vizcaya Argentaria SA		12,548,268		78,401,490
Banco de Sabadell SA		16,013,053		24,630,421
Banco Santander SA		31,580,129		157,555,991
Bankia SA		4,601,880		17,331,823
Bankinter SA		2,232,256		19,905,163
CaixaBank SA		8,713,675		39,144,199
				336,969,087
Biotechnology —3.0%
Grifols SA		889,942		26,227,877
Construction & Engineering —6.9%
ACS Actividades de Construccion y Servicios SA		724,981		30,265,322
Ferrovial SA		1,391,643		30,157,155
				60,422,477
Diversified Telecommunication Services — 8.1%
Telefonica SA		8,772,850		71,317,760
Electric Utilities — 16.3%
Endesa SA		1,033,570		23,197,350
Iberdrola SA		11,291,806		84,372,313
Red Electrica Corp. SA		1,658,078		34,918,033
				142,487,696
Electrical Equipment — 1.8%
Siemens Gamesa Renewable Energy SA(a)		1,024,637		15,325,278
Gas Utilities — 3.2%
Naturgy Energy Group SA		1,029,777		27,713,097
Insurance — 1.6%
Mapfre SA		4,789,237		14,148,007
IT Services — 4.5%
Amadeus IT Group SA		428,152		39,812,523

Security	Shares		Value
Oil, Gas & Consumable Fuels — 7.2%
Enagas SA		754,016	$	21,011,271
Repsol SA		2,165,314		41,732,901
				62,744,172
Specialty Retail — 4.2%
Industria de Diseno Textil SA		1,205,901		36,549,853
Transportation Infrastructure — 3.7%
Aena SME SA(b)		183,609		32,578,423
Total Common Stocks — 101.2% (Cost: $1,125,236,826)				885,701,589
Short-Term Investments
Money Market Funds — 2.3%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(c)(d)(e)		19,678,549		19,684,452
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		345,951		345,951
				20,030,403
Total Short-Term Investments — 2.3% (Cost: $20,030,396)				20,030,403
Total Investments in Securities — 103.5% (Cost: $1,145,267,222)				905,731,992
Other Assets, Less Liabilities — (3.5)%				(30,290,070	)
Net Assets — 100.0%			$	875,441,922

^(a)  All or a portion of this security is on loan.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  Affiliate of the Fund.

^(d)  Annualized 7-day yield as of period-end.

^(e)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		10,256,664		9,421,885			19,678,549	$	19,684,452	$	79,838	(b)	$	(2,725	)	$	7
BlackRock Cash Funds: Treasury, SL Agency Shares		1,301,695		(955,744	)		345,951		345,951		12,829			—			—
								$	20,030,403	$	92,667		$	(2,725	)	$	7

^(a) Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

S C H E D U L E   O F   I N V E S T M E N T S 27

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Spain ETF

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
IBEX 35 Index		15		09/21/18	$	1,638	$	(24,968	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	24,968

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(121,841	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(24,968	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	1,218,079

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	885,701,589		$	—	$	—	$	885,701,589
Money Market Funds		20,030,403			—		—		20,030,403
	$	905,731,992		$	—	$	—	$	905,731,992
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(24,968	)	$	—	$	—	$	(24,968	)

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

See notes to financial statements.

28 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments August 31, 2018 iShares^® MSCI Switzerland ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Building Products — 1.6%
Geberit AG, Registered		36,695	$	16,725,422
Capital Markets — 10.4%
Credit Suisse Group AG, Registered		2,342,260		35,154,486
Julius Baer Group Ltd.		232,382		12,379,610
Partners Group Holding AG		17,746		13,964,126
UBS Group AG, Registered		2,911,945		45,571,593
				107,069,815
Chemicals — 5.2%
Clariant AG, Registered		258,617		6,476,790
EMS-Chemie Holding AG, Registered		10,519		6,656,631
Givaudan SA, Registered		8,817		21,497,763
Sika AG, Registered		126,384		18,779,217
				53,410,401
Construction Materials — 2.2%
LafargeHolcim Ltd., Registered		461,768		22,536,914
Diversified Financial Services — 0.5%
Pargesa Holding SA, Bearer		59,943		4,881,099
Diversified Telecommunication Services — 1.2%
Swisscom AG, Registered		27,052		12,109,204
Electrical Equipment — 3.8%
ABB Ltd., Registered		1,675,817		39,595,097
Food Products — 21.9%
Barry Callebaut AG, Registered		3,160		5,646,241
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates, NVS		1,219		9,094,287
Chocoladefabriken Lindt & Spruengli AG, Registered		114		10,066,798
Nestle SA, Registered		2,401,522		202,084,438
				226,891,764
Health Care Equipment & Supplies — 2.0%
Sonova Holding AG, Registered		59,466		11,307,825
Straumann Holding AG, Registered		11,787		9,415,218
				20,723,043
Insurance — 8.7%
Baloise Holding AG, Registered		55,630		8,570,851
Swiss Life Holding AG, Registered		35,455		12,875,397
Swiss Re AG		294,689		26,558,880
Zurich Insurance Group AG		137,197		41,878,352
				89,883,480
Life Sciences Tools & Services — 2.2%
Lonza Group AG, Registered		71,298		22,994,361
Machinery —1.6%
Schindler Holding AG, Participation Certificates, NVS		44,276		10,584,853
Schindler Holding AG, Registered		26,783		6,203,487
				16,788,340

Security	Shares		Value
Marine — 0.9%
Kuehne + Nagel International AG, Registered		59,366	$	9,606,844
Pharmaceuticals — 26.1%
Novartis AG, Registered		1,592,468		132,357,127
Roche Holding AG, NVS		511,765		127,425,305
Vifor Pharma AG		51,996		9,605,093
				269,387,525
Professional Services — 2.4%
Adecco Group AG, Registered		175,530		10,777,553
SGS SA, Registered		5,421		14,310,633
				25,088,186
Real Estate Management & Development — 0.8%
Swiss Prime Site AG, Registered		85,611		7,909,568
Software — 1.1%
Temenos AG, Registered		63,699		11,526,548
Specialty Retail — 0.5%
Dufry AG, Registered(a)		45,345		5,621,823
Textiles, Apparel & Luxury Goods — 5.9%
Cie. Financiere Richemont SA, Registered		473,232		41,935,666
Swatch Group AG (The), Bearer		31,388		13,423,717
Swatch Group AG (The), Registered		73,901		6,002,403
				61,361,786
Total Common Stocks — 99.0% (Cost: $1,034,969,407)				1,024,111,220
Short-Term Investments
Money Market Funds — 0.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(b)(c)(d)		5,419,657		5,421,283
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(b)(c)		404,567		404,567
				5,825,850
Total Short-Term Investments — 0.6% (Cost: $5,825,850)				5,825,850
Total Investments in Securities — 99.6% (Cost: $1,040,795,257)				1,029,937,070
Other Assets, Less Liabilities — 0.4%				4,149,198
Net Assets — 100.0%			$	1,034,086,268

^(a)  All or a portion of this security is on loan.

^(b)  Affiliate of the Fund.

^(c)  Annualized 7-day yield as of period-end.

^(d)  All or a portion of this security was purchased with cash collateral received from loaned securities.

S C H E D U L E   O F   I N V E S T M E N T S 29

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Switzerland ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		—		5,419,657			5,419,657	$	5,421,283	$	7,058	(b)	$	—	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		609,567		(205,000	)		404,567		404,567		12,966			—		—
								$	5,825,850	$	20,024		$	—	$	—

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro STOXX 50 Index		238		09/21/18	$	9,385	$	(187,002	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	187,002

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	787,386
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(187,002	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	6,210,275

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

30 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments (continued) August 31, 2018 iShares^® MSCI Switzerland ETF

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	1,024,111,220		$	—	$	—	$	1,024,111,220
Money Market Funds		5,825,850			—		—		5,825,850
	$	1,029,937,070		$	—	$	—	$	1,029,937,070
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(187,002	)	$	—	$	—	$	(187,002	)

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

See notes to financial statements.

S C H E D U L E   O F   I N V E S T M E N T S 31

Statements of Assets and Liabilities

August 31, 2018

	iShares MSCI Eurozone ETF			iShares MSCI Germany ETF			iShares MSCI Italy ETF			iShares MSCI Spain ETF
ASSETS
Investments in securities, at value (including securities on loan)(a)
Unaffiliated(b)	$	9,519,482,485		$	3,332,151,046		$	405,010,273		$	885,701,589
Affiliated(c)		82,179,332			62,442,630			9,218,153			20,030,403
Cash pledged:
Futures contracts(d)		2,835,449			1,085,778			48,867			132,988
Foreign currency, at value(e)		20,501,676			2,974,675			562,008			1,571,875
Receivables:
Investments sold		9,527,999			10,813,165			4,339,703			26,495,312
Securities lending income — Affiliated		43,833			17,308			3,569			13,953
Dividends		3,569,316			404,440			159			993
Tax reclaims		12,464,337			12,690,235			—			150,393
Foreign withholding tax claims		3,956,825			—			—			—
Total assets		9,654,561,252			3,422,579,277			419,182,732			934,097,506
LIABILITIES
Collateral on securities loaned, at value		80,315,753			62,216,938			9,069,487			19,684,472
Payables:
Investments purchased		11,411,511			7,143,164			4,304,136			26,068,436
Variation margin on futures contracts		477,240			176,844			6,102			12,461
Capital shares redeemed		—			421,747			—			12,421,347
Investment advisory fees		4,083,016			1,393,011			178,066			468,868
Professional fees		39,568			—			—			—
Total liabilities		96,327,088			71,351,704			13,557,791			58,655,584
NET ASSETS	$	9,558,234,164		$	3,351,227,573		$	405,624,941		$	875,441,922
NET ASSETS CONSIST OF:
Paid-in capital	$	10,618,146,188		$	3,871,022,614		$	687,938,671		$	1,279,314,886
Undistributed (distributions in excess of) net investment income		23,152,634			(489,869	)		2,341,634			9,976,406
Accumulated net realized loss		(558,291,200	)		(205,053,037	)		(200,409,537	)		(174,285,021	)
Net unrealized depreciation		(524,773,458	)		(314,252,135	)		(84,245,827	)		(239,564,349	)
NET ASSETS	$	9,558,234,164		$	3,351,227,573		$	405,624,941		$	875,441,922
Shares outstanding		231,500,000			110,400,000			14,925,000			29,325,000
Net asset value	$	41.29		$	30.36		$	27.18		$	29.85
Shares authorized		1 billion			482.2 million			295.4 million			127.8 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a) Securities loaned, at value	$	75,130,646		$	58,031,172		$	8,501,160		$	18,505,122
(b) Investments, at cost — Unaffiliated	$	10,044,066,444		$	3,646,253,990		$	489,225,957		$	1,125,236,826
(c) Investments, at cost — Affiliated	$	82,167,605		$	62,440,838		$	9,217,449		$	20,030,396
(d) Cash collateral pledged, at cost	$	2,824,147		$	1,083,658		$	48,622		$	133,862
(e) Foreign currency, at cost	$	20,374,287		$	2,956,744		$	562,348		$	1,574,326

See notes to financial statements.

32 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Assets and Liabilities (continued)

August 31, 2018

	iShares MSCI Switzerland ETF
ASSETS
Investments in securities, at value (including securities on loan)(a)
Unaffiliated(b)	$	1,024,111,220
Affiliated(c)		5,825,850
Cash pledged:
Futures contracts(d)		676,459
Foreign currency, at value(e)		666,088
Receivables:
Investments sold		22,030,946
Securities lending income — Affiliated		7,058
Dividends		676
Tax reclaims		8,481,886
Total assets		1,061,800,183
LIABILITIES
Collateral on securities loaned, at value		5,421,283
Payables:
Investments purchased		21,752,881
Variation margin on futures contracts		113,353
Investment advisory fees		426,398
Total liabilities		27,713,915
NET ASSETS	$	1,034,086,268
NET ASSETS CONSIST OF:
Paid-in capital	$	1,102,406,787
Distributions in excess of net investment income		(455,027	)
Accumulated net realized loss		(56,929,654	)
Net unrealized depreciation		(10,935,838	)
NET ASSETS	$	1,034,086,268
Shares outstanding		29,625,000
Net asset value	$	34.91
Shares authorized		318.625 million
Par value	$	0.001
(a) Securities loaned, at value	$	5,177,359
(b) Investments, at cost — Unaffiliated	$	1,034,969,407
(c) Investments, at cost — Affiliated	$	5,825,850
(d) Cash collateral pledged, at cost	$	679,350
(e) Foreign currency, at cost	$	647,778

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 33

Statements of Operations

Year Ended August 31, 2018

	iShares MSCI Eurozone ETF			iShares MSCI Germany ETF			iShares MSCI Italy ETF			iShares MSCI Spain ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	418,950,815		$	119,480,875		$	24,831,074		$	32,616,604
Dividends — Affiliated		122,897			31,897			6,262			12,829
Non-cash dividends — Unaffiliated		22,179,845			—			—			9,938,397
Securities lending income — Affiliated — net		1,858,087			783,333			32,477			79,838
Foreign taxes withheld		(53,211,633	)		(15,404,045	)		(3,595,259	)		(4,893,816	)
Total investment income		389,900,011			104,892,060			21,274,554			37,753,852
EXPENSES
Investment advisory fees		65,126,051			20,193,214			3,241,497			5,128,398
Proxy fees		1,157			521			64			137
Total expenses		65,127,208			20,193,735			3,241,561			5,128,535
Net investment income		324,772,803			84,698,325			18,032,993			32,625,317
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(171,439,571	)		(57,088,449	)		(7,251,548	)		(21,578,339	)
Investments —Affiliated		(19,866	)		(14,372	)		5,241			(2,725	)
In-kind redemptions — Unaffiliated		1,022,349,609			281,440,094			57,384,132			110,424,808
Futures contracts		(1,069,233	)		(244,608	)		(356,621	)		(121,841	)
Foreign currency transactions		(2,476,418	)		(136,035	)		(100,575	)		(83,409	)
Net realized gain		847,344,521			223,956,630			49,680,629			88,638,494
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(878,526,864	)		(168,521,470	)		(89,100,020	)		(227,298,328	)
Investments — Affiliated		2,689			1,792			704			7
Futures contracts		(854,928	)		983,486			(30,749	)		(24,968	)
Foreign currency translations		(905,301	)		(1,218,547	)		(5,134	)		(11,050	)
Net change in unrealized appreciation (depreciation)		(880,284,404	)		(168,754,739	)		(89,135,199	)		(227,334,339	)
Net realized and unrealized gain (loss)		(32,939,883	)		55,201,891			(39,454,570	)		(138,695,845	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	291,832,920		$	139,900,216		$	(21,421,577	)	$	(106,070,528	)

See notes to financial statements.

34 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Operations (continued)

Year Ended August 31, 2018

	iShares MSCI Switzerland ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	34,693,786
Dividends — Affiliated		12,966
Securities lending income — Affiliated — net		7,058
Foreign taxes withheld		(7,298,638	)
Total investment income		27,415,172
EXPENSES
Investment advisory fees		5,445,337
Proxy fees		123
Total expenses		5,445,460
Net investment income		21,969,712
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(17,148,837	)
In-kind redemptions — Unaffiliated		53,652,996
Futures contracts		787,386
Foreign currency transactions		(534,536	)
Net realized gain		36,757,009
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(14,766,786	)
Futures contracts		(187,002	)
Foreign currency translations		169,337
Net change in unrealized appreciation (depreciation)		(14,784,451	)
Net realized and unrealized gain		21,972,558
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	43,942,270

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 35

Statements of Changes in Net Assets

	iShares MSCI Eurozone ETF						iShares MSCI Germany ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	324,772,803		$	250,039,419		$	84,698,325		$	89,451,626
Net realized gain (loss)		847,344,521			(107,531,785	)		223,956,630			81,994,943
Net change in unrealized appreciation (depreciation)		(880,284,404	)		1,981,250,890			(168,754,739	)		639,971,332
Net increase in net assets resulting from operations		291,832,920			2,123,758,524			139,900,216			811,417,901
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(344,359,197	)		(251,508,888	)		(97,497,098	)		(101,663,169	)
Decrease in net assets resulting from distributions to shareholders		(344,359,197	)		(251,508,888	)		(97,497,098	)		(101,663,169	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(3,675,455,483	)		3,120,375,440			(1,501,075,041	)		503,242,808
NET ASSETS
Total increase (decrease) in net assets		(3,727,981,760	)		4,992,625,076			(1,458,671,923	)		1,212,997,540
Beginning of year		13,286,215,924			8,293,590,848			4,809,899,496			3,596,901,956
End of year	$	9,558,234,164		$	13,286,215,924		$	3,351,227,573		$	4,809,899,496
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	23,152,634		$	39,606,657		$	(489,869	)	$	11,828,547

See notes to financial statements.

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Statements of Changes in Net Assets (continued)

	iShares MSCI Italy ETF						iShares MSCI Spain ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	18,032,993		$	14,617,536		$	32,625,317		$	29,663,738
Net realized gain (loss)		49,680,629			(44,661,565	)		88,638,494			(76,940,027	)
Net change in unrealized appreciation (depreciation)		(89,135,199	)		222,005,377			(227,334,339	)		304,908,943
Net increase (decrease) in net assets resulting from operations		(21,421,577	)		191,961,348			(106,070,528	)		257,632,654
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(17,400,893	)		(15,689,552	)		(31,909,333	)		(28,748,503	)
Decrease in net assets resulting from distributions to shareholders		(17,400,893	)		(15,689,552	)		(31,909,333	)		(28,748,503	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(396,183,016	)		203,328,009			(515,111,708	)		699,705,444
NET ASSETS
Total increase (decrease) in net assets		(435,005,486	)		379,599,805			(653,091,569	)		928,589,595
Beginning of year		840,630,427			461,030,622			1,528,533,491			599,943,896
End of year	$	405,624,941		$	840,630,427		$	875,441,922		$	1,528,533,491
Undistributed net investment income included in net assets at end of year	$	2,341,634		$	1,810,109		$	9,976,406		$	9,343,831

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 37

Statements of Changes in Net Assets (continued)

	iShares MSCI Switzerland ETF
	Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	21,969,712		$	23,926,958
Net realized gain		36,757,009			30,303,367
Net change in unrealized appreciation (depreciation)		(14,784,451	)		106,883,974
Net increase in net assets resulting from operations		43,942,270			161,114,299
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(22,803,569	)		(25,105,668	)
Decrease in net assets resulting from distributions to shareholders		(22,803,569	)		(25,105,668	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(246,310,096	)		31,514,058
NET ASSETS
Total increase (decrease) in net assets		(225,171,395	)		167,522,689
Beginning of year		1,259,257,663			1,091,734,974
End of year	. $	1,034,086,268		$	1,259,257,663
Distributions in excess of net investment income included in net assets at end of year	$	(455,027	)	$	(369,308	)

See notes to financial statements.

38 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights

(For a share outstanding throughout each period)

	iShares MSCI Eurozone ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	41.71		$	34.20		$	36.04		$	39.98		$	34.64
Net investment income(a)		1.03			0.99			0.92	(b)		0.96			1.18
Net realized and unrealized gain (loss)(c)		(0.23	)		7.38			(1.84	)		(3.95	)		5.10
Net increase (decrease) from investment operations		0.80			8.37			(0.92	)		(2.99	)		6.28
Distributions(d)
From net investment income		(1.22	)		(0.86	)		(0.92	)		(0.95	)		(0.94	)
Total distributions		(1.22	)		(0.86	)		(0.92	)		(0.95	)		(0.94	)
Net asset value, end of year	$	41.29		$	41.71		$	34.20		$	36.04		$	39.98
Total Return
Based on net asset value		1.87	%		24.72	%		(2.53	)%(b)		(7.62	)%		18.02	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Total expenses excluding professional fees for foreign withholding tax claims		N/A			0.49	%		0.48	%		N/A			N/A
Net investment income		2.36	%		2.63	%		2.69	%(b)		2.50	%		2.89	%
Supplemental Data
Net assets, end of year (000)	$	9,558,234		$	13,286,216		$	8,293,591		$	10,134,616		$	8,702,637
Portfolio turnover rate(e)		5	%		4	%		4	%		5	%		7	%

(a) Based on average shares outstanding.

(b) Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, 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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L   H I G H L I G H T S 39

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Germany ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	30.71		$	26.18		$	26.34		$	28.97		$	25.61
Net investment income(a)		0.64			0.59			0.49			0.58			0.59
Net realized and unrealized gain (loss)(b)		(0.16	)		4.54			(0.04	)		(2.70	)		3.40
Net increase (decrease) from investment operations		0.48			5.13			0.45			(2.12	)		3.99
Distributions(c)
From net investment income		(0.83	)		(0.60	)		(0.61	)		(0.51	)		(0.63	)
Total distributions		(0.83	)		(0.60	)		(0.61	)		(0.51	)		(0.63	)
Net asset value, end of year	$	30.36		$	30.71		$	26.18		$	26.34		$	28.97
Total Return
Based on net asset value		1.52	%		19.63	%		1.81	%		(7.50	)%		15.41	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		1.99	%		2.08	%		1.90	%		2.03	%		1.95	%
Supplemental Data
Net assets, end of year (000)	$	3,351,228		$	4,809,899		$	3,596,902		$	6,607,056		$	4,797,434
Portfolio turnover rate(d)		6	%		3	%		3	%		3	%		6	%

(a) Based on average shares outstanding.

(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

40 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Italy ETF
		Year Ended 08/31/18			Year Ended 08/31/17	(a)		Year Ended 08/31/16	(a)		Year Ended 08/31/15	(a)		Year Ended 08/31/14	(a)
Net asset value, beginning of year	$	30.21		$	22.60		$	29.50		$	32.03		$	26.12
Net investment income(b)		0.82			0.57			0.66			0.70			0.82
Net realized and unrealized gain (loss)(c)		(2.86	)		7.76			(6.82	)		(2.49	)		5.77
Net increase (decrease) from investment operations		(2.04	)		8.33			(6.16	)		(1.79	)		6.59
Distributions(d)
From net investment income		(0.99	)		(0.72	)		(0.72	)		(0.74	)		(0.68	)
Return of capital		—			—			(0.02	)		—			—
Total distributions		(0.99	)		(0.72	)		(0.74	)		(0.74	)		(0.68	)
Net asset value, end of year	$	27.18		$	30.21		$	22.60		$	29.50		$	32.03
Total Return
Based on net asset value		(6.98	)%		37.37	%		(20.97	)%		(5.66	)%		25.20	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		2.64	%		2.59	%		2.54	%		2.34	%		2.49	%
Supplemental Data
Net assets, end of year (000)	$	405,625		$	840,630		$	461,031		$	1,077,437		$	1,556,860
Portfolio turnover rate(e)		10	%		18	%		16	%		22	%		24	%

(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

(b) Based on average shares outstanding.

(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(e) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L   H I G H L I G H T S 41

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Spain ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	33.63		$	26.49		$	31.96		$	40.61		$	30.44
Net investment income(a)		0.99			0.94			1.00			1.32			1.80
Net realized and unrealized gain (loss)(b)		(3.72	)		7.19			(5.40	)		(8.35	)		9.53
Net increase (decrease) from investment operations		(2.73	)		8.13			(4.40	)		(7.03	)		11.33
Distributions(c)
From net investment income		(1.05	)		(0.99	)		(1.07	)		(1.62	)		(1.16	)
Total distributions		(1.05	)		(0.99	)		(1.07	)		(1.62	)		(1.16	)
Net asset value, end of year	$	29.85		$	33.63		$	26.49		$	31.96		$	40.61
Total Return
Based on net asset value		(8.28	)%		31.48	%		(13.82	)%		(17.63	)%		37.39	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		3.02	%		3.10	%		3.53	%		3.70	%		4.48	%
Supplemental Data
Net assets, end of year (000)	$	875,442		$	1,528,533		$	599,944		$	1,666,091		$	2,473,038
Portfolio turnover rate(d)		21	%		16	%		9	%		15	%		15	%

(a) Based on average shares outstanding.

(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

42 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Switzerland ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	34.27		$	30.22		$	31.90		$	33.64		$	29.36
Net investment income(a)		0.66			0.69			0.81			0.83			0.80
Net realized and unrealized gain (loss)(b)		0.79			4.11			(1.70	)		(1.77	)		4.27
Net increase (decrease) from investment operations		1.45			4.80			(0.89	)		(0.94	)		5.07
Distributions(c)
From net investment income		(0.81	)		(0.75	)		(0.79	)		(0.80	)		(0.79	)
Total distributions		(0.81	)		(0.75	)		(0.79	)		(0.80	)		(0.79	)
Net asset value, end of year	$	34.91		$	34.27		$	30.22		$	31.90		$	33.64
Total Return
Based on net asset value		4.43	%		15.90	%		(2.76	)%		(2.92	)%		17.21	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		1.91	%		2.18	%		2.68	%		2.49	%		2.41	%
Supplemental Data
Net assets, end of year (000)	$	1,034,086		$	1,259,258		$	1,091,735		$	1,200,164		$	1,072,157
Portfolio turnover rate(d)		9	%		13	%		6	%		7	%		5	%

(a) Based on average shares outstanding.

(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L   H I G H L I G H T S 43

Notes to Financial Statements

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

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(a)		Non-diversified
MSCI Spain(b)		Non-diversified
MSCI Switzerland(c)		Non-diversified

^(a)  Formerly the iShares MSCI Italy Capped ETF.

^(b)  Formerly the iShares MSCI Spain Capped ETF.

^(c)  Formerly the iShares MSCI Switzerland Capped ETF.

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

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Notes to Financial Statements (continued)

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company ( the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 45

Notes to Financial Statements (continued)

exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received(a)		Non-Cash Collateral Received		Net Amount
MSCI Eurozone
Citigroup Global Markets Inc.	$	2,859,349	$	2,859,349	$	—	$	—
Credit Suisse Securities (USA) LLC		439,191		439,191		—		—
Goldman Sachs & Co.		9,873,625		9,873,625		—		—
JPMorgan Securities LLC		1,177,776		1,177,776		—		—
Merrill Lynch, Pierce, Fenner & Smith		2,713,616		2,713,616		—		—
Morgan Stanley & Co. LLC		40,707,936		40,707,936		—		—
State Street Bank & Trust Company		14,113,235		14,113,235		—		—
UBS Securities LLC		2,044,837		2,044,837		—		—
Wells Fargo Securities LLC		1,201,081		1,201,081		—		—
	$	75,130,646	$	75,130,646	$	—	$	—
MSCI Germany
Goldman Sachs & Co.	$	4,612,434	$	4,612,434	$	—	$	—
Morgan Stanley & Co. LLC		53,418,738		53,418,738		—		—
	$	58,031,172	$	58,031,172	$	—	$	—
MSCI Italy
State Street Bank & Trust Company	$	8,501,160	$	8,501,160	$	—	$	—
MSCI Spain
Credit Suisse Securities (USA) LLC	$	59,812	$	59,812	$	—	$	—
Goldman Sachs & .Co.		18,370,032		18,370,032		—		—
Morgan Stanley & Co. LLC		75,278		75,278		—		—
	$	18,505,122	$	18,505,122	$	—	$	—
MSCI Switzerland
Goldman Sachs & Co.	$	5,177,359	$	5,177,359	$	—	$	—

(a) 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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

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Notes to Financial Statements (continued)

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $7 billion		0.59	%
Over $7 billion, up to and including $11 billion		0.54
Over $11 billion, up to and including $24 billion		0.49
Over $24 billion, up to and including $48 billion		0.44
Over $48 billion, up to and including $72 billion		0.40
Over $72 billion, up to and including $96 billion		0.36
Over $96 billion		0.32

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 47

Notes to Financial Statements (continued)

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid     to BTC
MSCI Eurozone	$	471,730
MSCI Germany		212,098
MSCI Italy		10,231
MSCI Spain		21,324
MSCI Switzerland		1,336

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Eurozone	$	59,194,263	$	63,811,487
MSCI Germany		26,125,974		18,190,026
MSCI Italy		11,363,343		14,827,400
MSCI Spain		33,262,057		26,633,539
MSCI Switzerland		14,287,119		21,232,339

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 shown as dividends – affiliated in the statement of operations.

It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “ Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2018, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:

iShares ETF	Number of Affiliated Accounts		Aggregate Affiliated Ownership Percentage
MSCI Eurozone		1		17	%

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
MSCI Eurozone	$	747,185,927	$	730,768,368
MSCI Germany		304,840,789		234,171,710
MSCI Italy		74,017,592		69,857,544
MSCI Spain		227,224,807		225,098,251
MSCI Switzerland		110,970,125		99,921,783

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Notes to Financial Statements (continued)

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind     Sales
MSCI Eurozone	$	2,844,178,488	$	6,567,364,634
MSCI Germany		338,067,533		1,911,376,349
MSCI Italy		98,068,889		497,686,328
MSCI Spain		565,920,699		1,090,473,892
MSCI Switzerland		273,255,567		524,278,358

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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. As of August 31, 2018, the following permanent differences 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 (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
MSCI Eurozone	$	882,757,944	$	3,132,371		$	(885,890,315	)
MSCI Germany		216,481,972		480,357			(216,962,329	)
MSCI Italy		14,596,029		(100,575	)		(14,495,454	)
MSCI Spain		69,267,183		(83,409	)		(69,183,774	)
MSCI Switzerland		21,453,113		748,138			(22,201,251	)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
MSCI Eurozone
Ordinary income	$	344,359,197	$	251,508,888
MSCI Germany
Ordinary income	$	97,497,098	$	101,663,169
MSCI Italy
Ordinary income	$	17,400,893	$	15,689,552
MSCI Spain
Ordinary income	$	31,909,333	$	28,748,503
MSCI Switzerland
Ordinary income	$	22,803,569	$	25,105,668

As of August 31, 2018, 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	$	20,636,833	$	(421,110,601	)	$	(659,438,256	)	$	—		$	(1,059,912,024	)
MSCI Germany		—		(145,317,672	)		(373,987,500	)		(489,869	)		(519,795,041	)
MSCI Italy		2,341,634		(192,791,517	)		(91,863,847	)		—			(282,313,730	)
MSCI Spain		9,976,406		(154,071,797	)		(259,777,573	)		—			(403,872,964	)
MSCI Switzerland		—		(44,154,811	)		(23,826,587	)		(339,121	)		(68,320,519	)

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 49

Notes to Financial Statements (continued)

(a) 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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the characterization of corporate actions and foreign withholding tax reclaims.

(b) The Funds elected to defer certain qualified late-year losses and recognize such losses in the year ending next taxable year.

As of August 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non-Expiring(a)		Expiring 2019		Total
MSCI Eurozone	$	390,879,862	$	30,230,739	$	421,110,601
MSCI Germany		113,101,718		32,215,954		145,317,672
MSCI Italy		183,331,855		9,459,662		192,791,517
MSCI Spain		145,451,894		8,619,903		154,071,797
MSCI Switzerland		37,199,053		6,955,758		44,154,811

(a) Must be utilized prior to losses subject to expiration.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Eurozone	$	10,265,503,534	$	822,547,986	$	(1,486,389,703	)	$	(663,841,717	)
MSCI Germany		3,768,997,103		356,034,013		(730,437,440	)		(374,403,427	)
MSCI Italy		506,061,426		20,809,469		(112,673,218	)		(91,863,749	)
MSCI Spain		1,165,480,446		18,573,961		(278,347,383	)		(259,773,422	)
MSCI Switzerland		1,053,873,008		67,677,978		(91,613,916	)		(23,935,938	)

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers.

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Notes to Financial Statements (continued)

Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

10. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Eurozone
Shares sold		68,400,000		$	2,997,558,675			130,800,000		$	5,075,719,442
Shares redeemed		(155,400,000	)		(6,673,014,158	)		(54,800,000	)		(1,955,344,002	)
Net increase (decrease)		(87,000,000	)	$	(3,675,455,483	)		76,000,000		$	3,120,375,440
MSCI Germany
Shares sold		13,200,000		$	424,091,640			47,700,000		$	1,344,475,553
Shares redeemed		(59,400,000	)		(1,925,166,681	)		(28,500,000	)		(841,232,745	)
Net increase (decrease)		(46,200,000	)	$	(1,501,075,041	)		19,200,000		$	503,242,808
MSCI Italy
Shares sold		3,675,000		$	113,455,292			20,625,000	(a)	$	478,934,035
Shares redeemed		(16,575,000	)		(509,638,308	)		(13,200,000	)(a)		(275,606,026	)
Net increase (decrease)		(12,900,000	)	$	(396,183,016	)		7,425,000		$	203,328,009
MSCI Spain
Shares sold		19,125,000		$	614,707,341			27,300,000		$	827,558,231
Shares redeemed		(35,250,000	)		(1,129,819,049	)		(4,500,000	)		(127,852,787	)
Net increase (decrease)		(16,125,000	)	$	(515,111,708	)		22,800,000		$	699,705,444
MSCI Switzerland
Shares sold		8,625,000		$	295,601,568			5,875,000		$	196,663,250
Shares redeemed		(15,750,000	)		(541,911,664	)		(5,250,000	)		(165,149,192	)
Net increase (decrease)		(7,125,000	)	$	(246,310,096	)		625,000		$	31,514,058

(a) Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

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 shares sold in the table above.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 51

Notes to Financial Statements (continued)

11. FOREIGN WITHHOLDING TAX CLAIMS

The iShares MSCI Eurozone ETF has filed 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 favorable determinations issued by the Finnish Tax Authority. The Fund continues to evaluate developments in Finland for potential impact to the receivables and payables recorded. Finnish tax claims receivable are disclosed in the statement of assets and liabilities. Professional fees associated with the filing of tax claims in Finland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.

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 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 which the Fund is able to pass through to its shareholders as a foreign tax credit 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.

12. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U. S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a’ flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

13. 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 additional disclosure in the financial statements.

52 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of iShares MSCI Eurozone ETF, iShares MSCI Germany ETF,

iShares MSCI Italy ETF, iShares MSCI Spain ETF and iShares MSCI Switzerland ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares MSCI Eurozone ETF, iShares MSCI Germany ETF, iShares MSCI Italy ETF, iShares MSCI Spain ETF and iShares MSCI Switzerland ETF (five of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

R E P O R T  O F  I N D E P E N D E N T  R E G I S T E R E D  P U B L I C  A C C O U N T I N G  F I R M 53

Important Tax Information (unaudited)

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend Income
MSCI Eurozone	$	423,242,363
MSCI Germany		117,996,963
MSCI Italy		24,587,885
MSCI Spain		41,820,416
MSCI Switzerland		34,285,949

For the fiscal year ended August 31, 2018, 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
MSCI Eurozone	$	441,342,468	$	53,207,277
MSCI Germany		119,559,751		15,392,138
MSCI Italy		24,838,783		3,594,801
MSCI Spain		42,569,187		4,893,816
MSCI Switzerland		34,715,877		7,294,973

54 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Board Review and Approval of Investment Advisory Contract

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates

B O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T 55

Board Review and Approval of Investment Advisory Contract (continued)

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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Germany ETF and iShares MSCI Switzerland 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. At a meeting on May 11,

56 2 0 1 8    I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Board Review and Approval of Investment Advisory Contract (continued)

2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

B O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T 57

Board Review and Approval of Investment Advisory Contract (continued)

including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Italy ETF and iShares MSCI Spain 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests,

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Board Review and Approval of Investment Advisory Contract (continued)

and requested certain additional information, which management agreed to provide. At a meeting held on May 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15( c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

The Board also noted that the investment advisory fee rates and overall expenses (net of waivers and reimbursements) for the Funds were higher 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund( s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates ((including fees under the Advisory Contract),), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.

B O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T 59

Board Review and Approval of Investment Advisory Contract (continued)

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 by the 15(c) Committee and the Board during their meetings and addressed by management. The15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information (unaudited)

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 Eurozone	$	1.217167	$	—	$	—	$	1.217167		100	%		—	%		—	%		100	%
MSCI Germany		0.828080		—		—		0.828080		100			—			—			100
MSCI Spain		1.049965		—		—		1.049965		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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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 Eurozone ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		2		0.14
Greater than 1.5% and Less than 2.0%		4		0.29
Greater than 1.0% and Less than 1.5%		22		1.59
Greater than 0.5% and Less than 1.0%		158		11.42
Greater than 0.0% and Less than 0.5%		604		43.64
At NAV		32		2.31
Less than 0.0% and Greater than –0.5%		448		32.37
Less than –0.5% and Greater than –1.0%		91		6.58
Less than –1.0% and Greater than –1.5%		16		1.16
Less than –1.5% and Greater than –2.0%		4		0.29
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
		1,384		100.00	%

S U P P L E M E N T A L   I N F O R M A T I O N 61

Supplemental Information (unaudited)  (continued)

iShares MSCI Germany ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		4		0.29
Greater than 1.0% and Less than 1.5%		24		1.73
Greater than 0.5% and Less than 1.0%		118		8.53
Greater than 0.0% and Less than 0.5%		630		45.53
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		487		35.19
Less than –0.5% and Greater than –1.0%		81		5.85
Less than –1.0% and Greater than –1.5%		18		1.30
Less than –1.5% and Greater than –2.0%		3		0.22
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
		1,384		100.00	%

iShares MSCI Italy ETF

Period Covered: January 01, 2013 through June 30, 2018

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 1.5% and Less than 2.0%		9		0.65
Greater than 1.0% and Less than 1.5%		45		3.25
Greater than 0.5% and Less than 1.0%		180		13.01
Greater than 0.0% and Less than 0.5%		573		41.40
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		425		30.71
Less than –0.5% and Greater than –1.0%		97		7.01
Less than –1.0% and Greater than –1.5%		27		1.95
Less than –1.5% and Greater than –2.0%		7		0.51
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
Less than –6.0%		3		0.22
		1,384		100.00	%

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Supplemental Information (unaudited) (continued)

iShares MSCI Spain ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of   Total Days
Greater than 4.0% and Less than 4.5%		1		0.07	%
Greater than 3.0% 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%		1		0.07
Greater than 1.5% and Less than 2.0%		5		0.36
Greater than 1.0% and Less than 1.5%		35		2.53
Greater than 0.5% and Less than 1.0%		150		10.85
Greater than 0.0% and Less than 0.5%		586		42.35
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		448		32.37
Less than –0.5% and Greater than –1.0%		102		7.37
Less than –1.0% and Greater than –1.5%		28		2.02
Less than –1.5% and Greater than –2.0%		8		0.58
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 –5.0% and Greater than –5.5%		1		0.07
		1,384		100.00	%

iShares MSCI Switzerland ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		1		0.07
Greater than 1.5% and Less than 2.0%		4		0.29
Greater than 1.0% and Less than 1.5%		15		1.08
Greater than 0.5% and Less than 1.0%		96		6.94
Greater than 0.0% and Less than 0.5%		635		45.89
At NAV		22		1.59
Less than 0.0% and Greater than –0.5%		515		37.21
Less than –0.5% and Greater than –1.0%		79		5.71
Less than –1.0% and Greater than –1.5%		11		0.79
Less than –1.5% and Greater than –2.0%		4		0.29
Less than –5.5% and Greater than –6.0%		1		0.07
		1,384		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD 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 AIFMD 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.

S U P P L E M E N T A L   I N F O R M A T I O N 63

Supplemental Information (unaudited) (continued)

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.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

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, 2017 was USD 432.25 thousand. This figure is comprised of fixed remuneration of USD 172.29 thousand and variable remuneration of USD 259.96 thousand. There were a total of 417 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, 2017, to its senior management was USD 60.47 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 11.27 thousand.

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Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006);Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S.ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).
(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. and its affiliates.
(b)  Mark K. 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.
		Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company(since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

D I R E C T O R  A N D  O F F I C E R  I N F O R M A T I O N 65

Director and Officer Information (continued)

		Independent Directors(continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001- 2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

		Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U. S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

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General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

G E N E R A L   I N F O R M A T I O N 67

Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity

ADR	American Depositary Receipt
NVS	Non-Voting Shares

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

	This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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. ©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

  2018 ANNUAL REPORT

iShares, Inc.

▶ iShares MSCI Hong Kong ETF | EWH | NYSE Arca

▶ iShares MSCI Japan Small-Cap ETF | SCJ | NYSE Arca

▶ iShares MSCI Malaysia ETF | EWM | NYSE Arca

▶ iShares MSCI Pacific ex Japan ETF | EPP | NYSE Arca

▶ iShares MSCI Singapore ETF | EWS | NYSE Arca

▶ iShares MSCI Taiwan ETF | EWT | NYSE Arca

▶ iShares MSCI Thailand ETF | THD | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		20
Shareholder Expenses		20
Schedules of Investments		21
Financial Statements
Statements of Assets and Liabilities		49
Statements of Operations		51
Statements of Changes in Net Assets		53
Financial Highlights		57
Notes to Financial Statements		64
Report of Independent Registered Public Accounting Firm		74
Important Tax Information (Unaudited)		75
Board Review and Approval of Investment Advisory Contract		76
Supplemental Information		82
Director and Officer Information		88
General Information		90
Glossary of Terms Used in this Report		91

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T    O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® MSCI Hong Kong ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		2.33	%		8.44	%		7.76	%		2.33	%		49.94	%		111.10	%
Fund Market		2.20			8.52			7.75			2.20			50.51			110.98
Index		2.79			9.04			8.37			2.79			54.16			123.35

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 20 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        953.30	$           2.36			$        1,000.00	$        1,022.80	$           2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

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Fund Summary as of August 31, 2018    (continued) iShares^® MSCI Hong Kong ETF

Portfolio Management Commentary

The Hong Kong economy posted solid growth during the reporting period, expanding by 3.5% year-over-year in the second quarter of 2018. Job growth remained robust as the unemployment rate reached a 20-year low. Reflecting the job market’s strength, consumer confidence increased, and retail sales rose sharply. In this environment, Hong Kong’s central bank, the Hong Kong Monetary Authority (“HKMA”), raised interest rates three times during the reporting period. The Hong Kong dollar is linked to the U.S. dollar, so the HKMA typically tracks the Fed’s interest rate changes.

From a sector perspective, financials contributed the most to the Index’s performance. Insurance companies and banks were leading sources of strength as rising interest rates and healthy economic activity bolstered their bottom lines. Insurers and banks both benefit from rising interest rates because they can charge higher premiums, the yields on their savings and insurance products become more attractive to consumers, and they can realize greater returns on their investment portfolios. In addition, Hong Kong insurers benefited from a crackdown by mainland Chinese regulators on investment schemes marketed as insurance.

The consumer discretionary and utilities sectors were also notable contributors to the Index’s return. In the consumer discretionary sector, casinos and gaming companies in Macau benefited from strong player demand. Utilities stocks benefited from a favorable regulatory change that governs the profit they can realize on their assets, as well as from a plan to replace aging coal-fired power plants.

On the downside, the industrials sector detracted from the Index’s return, led by the industrial conglomerates industry. Price competition in Chinese automobile markets, where sales slumped late in the reporting period, negatively affected performance as did lower profitability on land development projects.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Financials	35.3%
Real Estate	25.6
Industrials	12.4
Consumer Discretionary	11.9
Utilities	10.9
Consumer Staples	1.9
Telecommunication Services	1.4
Information Technology	0.6

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
AIA Group Ltd.	20.3%
Hong Kong Exchanges & Clearing Ltd.	6.5
CK Hutchison Holdings Ltd.	6.1
Sun Hung Kai Properties Ltd.	4.6
Link REIT	4.2
Hang Seng Bank Ltd.	4.0
CLP Holdings Ltd.	3.8
Hong Kong & China Gas Co. Ltd.	3.7
CK Asset Holdings Ltd.	3.6
BOC Hong Kong Holdings Ltd.	3.5

^(a) Excludes money market funds.

F U N D    S U M M A R Y 7

Fund Summary as of August 31, 2018 iShares^® MSCI Japan Small-Cap ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		7.09	%		11.49	%		8.21	%		7.09	%		72.22	%		120.10	%
Fund Market		6.11			11.54			8.24			6.11			72.68			120.73
Index		7.56			11.88			8.57			7.56			75.32			127.52

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 20 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        943.10	$           2.35			$        1,000.00	$        1,022.80	$           2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Japan Small-Cap ETF

Portfolio Management Commentary

Japanese economic growth was moderate during the reporting period as the economy contracted in the first quarter of 2018, ending a streak of eight straight quarters of expansion, before turning positive again in the second quarter. The pace of manufacturing activity also slowed, but nevertheless expanded for two straight years through the end of the reporting period. The nation’s unemployment rate reached its lowest level since October 1992, helping wages rise at the fastest pace in 21 years in June 2018.

Inflation remained below the Bank of Japan’s 2% target during the reporting period. In an ongoing effort to stimulate the economy and inflation, the central bank maintained its extraordinary stimulus policies, targeting negative short-term interest rates and flat long-term bond yields. In that environment, corporate profits attained record levels in 2017, but reported earnings generally disappointed in the first quarter of 2018.

Japanese small-capitalization companies were well positioned to benefit from positive economic conditions in the country while being less exposed to tariffs and trade concerns that affected large, multinational corporations. During the reporting period, the leading contribution to the Index’s return came from the industrials and information technology sectors. Within the industrials sector, stocks in the trading companies and distributors industry advanced, reflecting innovation in the market for industrial supplies and a rebound in commodities prices. Other industries benefiting from generally positive economic conditions included machinery, human resource and employment services, and construction and engineering. In the information technology sector, companies in the IT consulting and other services and semiconductor equipment industries benefited from global technological trends toward the development of blockchain technology and surging demand for computing power.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Industrials		24.6%
Consumer Discretionary		16.4
Information Technology		13.5
Consumer Staples		10.2
Real Estate		9.8
Materials		9.4
Financials		7.6
Health Care		6.7
Utilities		1.1
Energy		0.7

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Pigeon Corp.		0.7%
Advantest Corp.		0.6
Sojitz Corp.		0.6
Orix JREIT Inc.		0.5
Square Enix Holdings Co. Ltd.		0.5
Nihon M&A Center Inc.		0.5
PeptiDream Inc.		0.5
Haseko Corp.		0.5
Asahi Intecc Co. Ltd.		0.5
Ebara Corp.		0.4

^(a) Excludes money market funds.

F U N D    S U M M A R Y 9

Fund Summary  as of August 31, 2018 iShares^® MSCI Malaysia ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		9.59	%		(1.22	)%		5.45	%		9.59	%		(5.94	)%		70.05	%
Fund Market		8.69			(1.27	)		5.41			8.69			(6.19	)		69.30
Index		9.98			(0.96	)		5.87			9.98			(4.70	)		76.88

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 20 for more information.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period  (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period  (a)		Annualized Expense Ratio
$	1,000.00	$	952.20	$	2.36	$	1,000.00	$	1,022.80	$	2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Malaysia ETF

Portfolio Management Commentary

Despite a late slowdown, the Malaysian economy posted solid growth for the reporting period. Malaysia’s new government has taken a number of steps to support the economy and financial markets, including allowing foreign direct investment and adopting free trade policies. This translated into increased private and foreign investment in the country. In addition, the government eliminated a consumption tax during the reporting period, helping stimulate consumer spending, which led to a sharp rebound in retail sales. Despite improvements in spending and investment, inflation moderated during the reporting period. In that environment, the Central Bank of Malaysia raised short-term interest rates once during the reporting period, in January 2018.

From a sector perspective, the financials and utilities sectors contributed the most to the Index’s performance. Banks led the advance in the financials sector, benefiting from rising interest income and an increase in lending activity. In the utilities sector, rising profits amid strong economic growth and increased demand for electricity bolstered electric utilities.

The materials and consumer staples sectors were other sources of strength, led by companies in the chemicals and food products industries, respectively. The chemicals industry benefited from rising product prices, which helped offset higher input costs. In contrast, a stronger Malaysian ringgit reduced input costs on imported raw materials for food products companies, which also benefited from rollouts of new products to meet rising demand for convenience foods.

On the downside, the industrials sector detracted the most from the Index’s return. While the new Malaysian government enacted a number of market-friendly policies, its decision to review all existing infrastructure projects weighed on the stocks of construction and engineering companies.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Financials		32.9%
Utilities		12.5
Consumer Staples		12.2
Industrials		9.2
Telecommunication Services		8.5
Consumer Discretionary		7.3
Health Care		5.9
Materials		5.6
Energy		3.4
Real Estate		2.0
Information Technology		0.5

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Public Bank Bhd		13.8%
Tenaga Nasional Bhd		9.2
Malayan Banking Bhd		7.2
CIMB Group Holdings Bhd		5.4
Petronas Chemicals Group Bhd		4.3
Genting Bhd		3.5
Genting Malaysia Bhd		2.9
DiGi.Com Bhd		2.8
IHH Healthcare Bhd		2.6
Maxis Bhd		2.6

^(a) Excludes money market funds.

F U N D    S U M M A R Y 11

Fund Summary  as of August 31, 2018 iShares^® MSCI Pacific ex Japan ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		3.63	%		4.96	%		5.34	%		3.63	%		27.37	%		68.32	%
Fund Market		3.09			5.07			5.41			3.09			28.05			69.34
Index		4.05			5.40			5.73			4.05			30.07			74.58

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 20 for more information.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period  (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period  (a)		Annualized Expense Ratio
$	1,000.00	$	974.40	$	2.39	$	1,000.00	$	1,022.80	$	2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Pacific ex Japan ETF

Portfolio Management Commentary

Australian equities contributed the most to the Index’s return for the reporting period. Australia’s economy strengthened, driven by increased consumer spending, rising exports (especially to China), and higher prices for oil and metals. Energy exports rose particularly sharply, reflecting strong demand from countries across Asia for Australian coal. The unemployment rate hit a six-year low at the end of the reporting period, short-term interest rates remained at a record low, and Australian equities were largely unscathed by the trade tensions that weighed on many stock markets. In that environment, Australian companies posted record corporate profits.

Hong Kong equities were notable contributors to the Index’s performance, benefiting from strong economic growth during the reporting period. In particular, Hong Kong’s unemployment rate dipped to a 20-year low, while consumer confidence rose and retail sales increased sharply.

Singapore and New Zealand also contributed to the Index’s return. Singapore’s export-heavy economy benefited from worldwide demand for semiconductors and other technology products, which helped boost manufacturing. New Zealand companies also benefited from solid export growth.

From a sector perspective, healthcare was the largest contributor to the Index’s return. The biotechnology industry led the advance, benefiting from record profits and robust U.S. sales. Healthcare equipment stocks also contributed to the Index’s performance, led by producers of hearing implants and respiratory care products.

The consumer discretionary sector was another strong contributor to the Index’s return as positive employment trends in the region prompted consumers to increase their discretionary spending. The energy and materials sectors also contributed meaningfully to the Index’s return, benefiting from rising commodities prices — including oil, metals, and coal — and growing demand from China.

On the downside, the industrials sector detracted from the Index’s performance. Capital goods companies with exposure to Chinese exports declined amid a stronger U.S. dollar and escalating trade tensions. Transportation stocks also declined amid weakness in transportation infrastructure and road and rail companies.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Financials		38.0%
Real Estate		13.4
Materials		10.3
Industrials		8.4
Health Care		6.4
Consumer Staples		6.1
Consumer Discretionary		5.9
Utilities		4.6
Energy		3.4
Telecommunication Services		2.5
Information Technology		1.0

ALLOCATION BY COUNTRY

Country	Percent of    Total Investments(a)
Australia		57.8%
Hong Kong		29.8
Singapore		10.5
New Zealand		1.9

^(a) Excludes money market funds.

F U N D    S U M M A R Y 13

Fund Summary  as of August 31, 2018  iShares^® MSCI Singapore ETF

Investment Objective

The iShares MSCI Singapore ETF (the “Fund”) (formerly the iShares MSCI Singapore Capped ETF) seeks to track the investment results of an index composed of Singaporean equities, as represented by the MSCI Singapore 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		0.91	%		2.81	%		4.40	%		0.91	%		14.84	%		53.87	%
Fund Market		0.40			2.91			4.54			0.40			15.42			55.85
Index		1.47			3.17			4.71			1.47			16.89			58.41

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance through November 30, 2016 reflects the performance of the MSCI Singapore Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Singapore 25/50 Index.

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 20 for more information.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	904.70	$	2.30		$	1,000.00	$	1,022.80	$	2.45		0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

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Fund Summary  as of August 31, 2018  (continued) iShares^® MSCI Singapore ETF

Portfolio Management Commentary

Singapore’s economy grew at a solid pace during the reporting period. Manufacturing output was particularly strong, led by electronics and semiconductors, along with biomedical products and transportation engineering. In addition, Singapore’s job market remained robust as its unemployment rate declined to a two-year low. Despite solid economic growth, Singapore’s inflation rate remained low by historical standards. Nonetheless, the improving economy led the country’s central bank, the Monetary Authority of Singapore, to tighten monetary policy for the first time in six years in April 2018. The central bank manages monetary policy not by adjusting interest rates, but rather by manipulating the currency exchange rate. This mechanism is in place because international trade makes up such a large share of the country’s economic growth.

From a sector perspective, financials contributed the most to the Index’s performance for the reporting period, led by the banking industry. Higher interest rates helped drive rising net interest margins, which in turn boosted profitability for many of Singapore’s banks. Growth in lending assets and stronger consumer banking activity also benefited Singapore banks.

On the downside, the industrials sector detracted the most from the Index’s return. Transportation infrastructure stocks struggled amid a decline in shipping activity at some of Asia’s largest ports, reflecting uncertainty in the outlook for global trade amid tariff tensions between the U.S. and China. The telecommunication services and consumer discretionary sectors also detracted from the Index’s performance. Telecommunication services stocks declined amid intensifying price competition. In the consumer discretionary sector, distributors detracted due to slower automotive sales, while the decline in casinos and gaming companies reflected increasing competition for Singaporeans’ gaming dollars.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of Total Investments	(a)
Financials	48.2	%
Industrials	18.0
Real Estate	14.7
Consumer Discretionary	7.4
Telecommunication Services	4.6
Consumer Staples	4.5
Information Technology	2.6

TEN LARGEST HOLDINGS

Security	Percent of Total Investments	(a)
DBS Group Holdings Ltd.	17.5	%
United Overseas Bank Ltd.	13.9
Oversea-Chinese Banking Corp. Ltd.	13.7
Singapore Telecommunications Ltd.	4.6
Keppel Corp. Ltd.	4.4
Ascendas REIT	3.4
Genting Singapore Ltd.	3.3
Wilmar International Ltd.	3.1
Singapore Exchange Ltd.	3.1
Singapore Airlines Ltd.	2.8

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 15

Fund Summary  as of August 31, 2018  iShares^® MSCI Taiwan ETF

Investment Objective

The iShares MSCI Taiwan ETF (the “Fund”) (formerly the iShares MSCI Taiwan Capped ETF) seeks to track the investment results of an index composed of Taiwanese equities, as represented by the MSCI Taiwan 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		4.43	%		9.48	%		6.90	%		4.43	%		57.28	%		94.80	%
Fund Market		4.01			9.65			6.96			4.01			58.48			95.90
Index		4.94			10.21			7.49			4.94			62.62			105.86

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance through November 30, 2016 reflects the performance of the MSCI Taiwan Index. Index performance beginning on December 1, 2016 reflects the performance of the MSCI Taiwan 25/50 Index.

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 20 for more information.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	1,009.60	$	2.99		$	1,000.00	$	1,022.20	$	3.01		0.59	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

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Fund Summary  as of August 31, 2018  (continued) iShares^® MSCI Taiwan ETF

Portfolio Management Commentary

Taiwan’s economy strengthened during the reporting period. Robust demand for Taiwanese exports used for various technological and machinery applications supported the island nation’s economy. Taiwan’s manufacturing sector, which plays a key role in the production of exported goods, also contributed meaningfully to the country’s economic growth. However, export growth slowed late in the reporting period, reflecting the initial effects of heightened trade tensions between the U.S. and China, as Taiwan is one of the largest suppliers of electronic components to China. In addition, domestic drivers of Taiwan’s economy were muted — consumer confidence moderated and retail sales increased at a relatively modest pace.

From a sector perspective, financials contributed the most to the Index’s return. Taiwanese banks were the leading sources of strength, benefiting from improving economic growth as well as from loans to Taiwanese businesses expanding abroad in Asia. In addition, the mainland Chinese government enacted policies in February 2018 to encourage Taiwanese financial institutions to operate in China.

The consumer staples and materials sectors also contributed to the Index’s return. Consumer staples stocks were helped by gains from food retail and packaged food and meats companies. Profits for these companies rose due to new product launches. In the materials sector, chemicals companies benefited from higher petrochemical refining revenues, as well as a rise in demand and pricing for plastics. Energy stocks also contributed to the Index’s return, benefiting from a sharp increase in the price of oil.

On the downside, consumer discretionary stocks detracted modestly from the Index’s performance. Automobiles and components manufacturers detracted the most from performance as new car sales declined.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of Total Investments	(a)
Information Technology	55.6	%
Financials	18.1
Materials	10.8
Telecommunication Services	4.0
Consumer Discretionary	3.5
Consumer Staples	3.4
Industrials	2.7
Energy	1.0
Other (each representing less than 1%)	0.9

TEN LARGEST HOLDINGS

Security	Percent of Total Investments	(a)
Taiwan Semiconductor Manufacturing Co. Ltd.	23.1	%
Hon Hai Precision Industry Co. Ltd.	6.9
Formosa Plastics Corp.	2.6
Largan Precision Co. Ltd.	2.6
Nan Ya Plastics Corp.	2.4
Formosa Chemicals & Fibre Corp.	2.3
Cathay Financial Holding Co. Ltd.	2.3
Chunghwa Telecom Co. Ltd.	2.3
CTBC Financial Holding Co. Ltd.	2.1
Uni-President Enterprises Corp.	2.0

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 17

Fund Summary  as of August 31, 2018  iShares^® MSCI Thailand ETF

Investment Objective

The iShares MSCI Thailand ETF (the “Fund”) (formerly the iShares MSCI Thailand Capped ETF) seeks to track the investment results of a broad-based index composed of Thai equities, as represented by the MSCI Thailand IMI 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		12.55	%		8.83	%		11.97	%		12.55	%		52.68	%		209.82	%
Fund Market		11.92			9.00			11.99			11.92			53.84			210.45
Index		12.84			9.00			12.32			12.84			53.87			219.68

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 IMI 25/50 Index.

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 20 for more information.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	916.40	$	2.85		$	1,000.00	$	1,022.20	$	3.01		0.59	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 20 for more information.

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Fund Summary  as of August 31, 2018  (continued) iShares^® MSCI Thailand ETF

Portfolio Management Commentary

Economic growth in Thailand improved over the course of the reporting period, supported by rapid export growth. Domestically, strong consumer spending, an increase in factory capacity utilization, and greater imports of capital goods contributed to the solid growth in the Thai economy. To further underscore the broad economic strength, Thai business associations representing manufacturing, banking, and trade raised their economic forecasts for 2018 due to improving domestic demand and export activity. Unemployment remained low, consumer confidence rose, and retail sales fluctuated but were strong overall during the reporting period. Despite the robust economic conditions, inflation remained near the low end of the Bank of Thailand’s inflation target range of 1% to 4%. In this environment, the Thai central bank kept short-term interest rates unchanged at 1.5%.

From a sector perspective, the leading contribution to the Index’s performance during the reporting period came from the energy sector. Energy prices rose sharply, led by a significant increase in the price of oil, which led to record profits and strong gains for stocks in the Thai oil, gas, and consumable fuels industry.

The financials and industrials sectors were also noteworthy contributors to the Index’s return. Banks led the advance in the financials sector, benefiting from improved consumer and commercial loan growth. In particular, the Thai government’s infrastructure spending plan drove lending for key construction and transportation projects. In the industrials sector, transportation infrastructure companies were the most significant contributors to the Index’s return. In addition to benefiting from the government’s infrastructure spending plan, transportation infrastructure stocks advanced as the country’s healthy tourism industry continued to grow rapidly.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of Total Investments	(a)
Energy	21.4	%
Financials	18.4
Consumer Staples	11.5
Industrials	10.2
Materials	9.7
Consumer Discretionary	6.6
Real Estate	6.5
Telecommunication Services	6.1
Health Care	4.8
Utilities	2.9
Information Technology	1.9

TEN LARGEST HOLDINGS

Security	Percent of Total Investments	(a)
PTT PCL	11.3	%
CPALL PCL	6.8
Airports of Thailand PCL	5.8
Kasikornbank PCL Foreign	5.1
Siam Commercial Bank PCL (The)	4.5
Advanced Info Service PCL	4.3
PTT Exploration & Production PCL	4.1
PTT Global Chemical PCL	3.7
Siam Cement PCL (The)	3.5
Kasikornbank PCL	2.8

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 19

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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Schedule of Investments August 31, 2018 iShares^® MSCI Hong Kong ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Auto Components — 0.6%
Minth Group Ltd.(a)		3,946,000	$	16,163,271
Banks — 8.4%
Bank of East Asia Ltd. (The)(a)		6,619,610		24,500,207
BOC Hong Kong Holdings Ltd.		19,610,000		95,690,224
Hang Seng Bank Ltd.		4,047,900		109,746,986
				229,937,417
Capital Markets — 6.5%
Hong Kong Exchanges & Clearing Ltd.		6,239,300		177,586,620
Diversified Telecommunication Services — 1.4%
HKT Trust & HKT Ltd.		20,064,500		25,921,343
PCCW Ltd.		22,344,169		11,871,114
				37,792,457
Electric Utilities — 7.1%
CK Infrastructure Holdings Ltd.		3,514,000		25,698,327
CLP Holdings Ltd.		8,704,200		102,302,545
HK Electric Investments & HK Electric Investments Ltd.(a)		14,050,000		14,195,174
Power Assets Holdings Ltd.		7,354,000		51,578,909
				193,774,955
Equity Real Estate Investment Trusts (REITs) — 4.2%
Link REIT		11,389,500		113,475,633
Food & Staples Retailing — 0.6%
Dairy Farm International Holdings Ltd.		1,792,600		16,617,402
Food Products — 1.3%
WH Group Ltd.(b)		46,529,500		35,094,681
Gas Utilities — 3.7%
Hong Kong & China Gas Co. Ltd.		48,925,182		100,731,433
Hotels, Restaurants & Leisure — 8.9%
Galaxy Entertainment Group Ltd.		12,575,000		93,084,063
Melco Resorts & Entertainment Ltd., ADR		1,301,691		31,084,382
MGM China Holdings Ltd.		5,035,488		9,494,989
Sands China Ltd.		12,809,600		62,506,553
Shangri-La Asia Ltd.		6,660,000		10,267,171
SJM Holdings Ltd.		10,638,000		12,035,501
Wynn Macau Ltd.		8,254,000		22,977,729
				241,450,388
Household Durables — 1.6%
Techtronic Industries Co. Ltd.		7,288,147		44,570,711
Industrial Conglomerates — 10.8%
CK Hutchison Holdings Ltd.		14,310,267		164,910,197
Jardine Matheson Holdings Ltd.		1,168,800		73,774,656
Jardine Strategic Holdings Ltd.		1,173,600		42,601,680
NWS Holdings Ltd.		8,256,000		14,705,103
				295,991,636
Insurance — 20.2%
AIA Group Ltd.		63,987,000		551,914,268

Security	Shares		Value
Real Estate Management & Development — 21.4%
CK Asset Holdings Ltd.		13,716,767	$	97,778,429
Hang Lung Group Ltd.		4,687,000		13,137,382
Hang Lung Properties Ltd.		10,713,000		21,156,022
Henderson Land Development Co. Ltd.		7,003,148		37,028,200
Hongkong Land Holdings Ltd.		6,218,600		43,032,712
Hysan Development Co. Ltd.		3,325,000		17,050,956
Kerry Properties Ltd.		3,466,500		13,139,214
New World Development Co. Ltd.		32,459,066		43,339,960
Sino Land Co. Ltd.		17,490,000		29,636,892
Sun Hung Kai Properties Ltd.		8,444,000		125,332,977
Swire Pacific Ltd., Class A		2,619,000		29,613,863
Swire Properties Ltd.		6,197,800		24,360,373
Wharf Holdings Ltd. (The)		6,430,150		18,351,025
Wharf Real Estate Investment Co. Ltd.		6,432,150		42,654,819
Wheelock & Co. Ltd.		4,333,357		27,190,795
				582,803,619
Road & Rail — 1.5%
MTR Corp. Ltd.		7,984,083		41,146,678
Semiconductors & Semiconductor Equipment — 0.6%
ASM Pacific Technology Ltd.(a)		1,617,300		17,061,300
Textiles, Apparel & Luxury Goods — 0.7%
Li & Fung Ltd.(a)		31,352,000		8,907,613
Yue Yuen Industrial Holdings Ltd.		3,934,500		10,902,849
				19,810,462
Total Common Stocks — 99.5% (Cost: $2,637,045,650)				2,715,922,931
Short-Term Investments
Money Market Funds — 0.7%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(c)(d)(e)		18,423,432		18,428,959
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		663,374		663,374
				19,092,333
Total Short-Term Investments — 0.7% (Cost: $19,091,576)				19,092,333
Total Investments in Securities — 100.2% (Cost: $2,656,137,226)				2,735,015,264
Other Assets, Less Liabilities — (0.2)%				(5,393,810	)
Net Assets — 100.0%			$	2,729,621,454

^(a)  All or a portion of this security is on loan.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  Affiliate of the Fund.

^(d)  Annualized 7-day yield as of period-end.

^(e)  All or a portion of this security was purchased with cash collateral received from loaned securities.

S C H E D U L E    O F    I N V E S T M E N T S 21

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Hong Kong ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	33,422,824	(14,999,392	)	18,423,432	$	18,428,959	$	601,444	(b)	$	5,833		$	(4,987	)
BlackRock Cash Funds: Treasury, SL Agency Shares	109,004	554,370		663,374		663,374		53,871			—			—
					$	19,092,333	$	655,315		$	5,833		$	(4,987	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Hang Seng Index		76		09/27/18	$	13,442	$	(212,247	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	212,247

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(468,215	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(318,749	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$12,018,098

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

22 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Hong Kong ETF

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	2,715,922,931		$	—	$	—	$	2,715,922,931
Money Market Funds		19,092,333			—		—		19,092,333
	$	2,735,015,264		$	—	$	—	$	2,735,015,264
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(212,247	)	$	—	$	—	$	(212,247	)

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

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 23

Schedule of Investments August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 0.0%
Jamco Corp.(a)		3,700	$	105,609
Air Freight & Logistics — 0.3%
Kintetsu World Express Inc.		14,800		293,237
Konoike Transport Co. Ltd.		11,100		183,090
Maruwa Unyu Kikan Co. Ltd.		3,700		125,463
Mitsui-Soko Holdings Co. Ltd.(b)		37,000		125,130
				726,920
Auto Components — 3.3%
Aisan Industry Co. Ltd.		11,100		94,298
Akebono Brake Industry Co. Ltd.(a)(b)		33,300		76,279
Daido Metal Co. Ltd.		11,100		95,399
Daikyonishikawa Corp.		14,800		184,324
Eagle Industry Co. Ltd.		7,400		105,042
Exedy Corp.		11,100		349,862
FCC Co. Ltd.		11,100		344,857
Futaba Industrial Co. Ltd.		18,500		123,962
G-Tekt Corp.		7,400		123,528
Ichikoh Industries Ltd.(a)		11,100		125,230
Kasai Kogyo Co. Ltd.		7,400		81,618
Keihin Corp.		14,800		311,923
KYB Corp.		7,400		303,982
Mitsuba Corp.		11,100		91,495
Musashi Seimitsu Industry Co. Ltd.		7,400		249,926
NHK Spring Co. Ltd.		70,300		744,938
Nifco Inc./Japan		29,600		814,177
Nippon Seiki Co. Ltd.		18,500		344,524
Nissin Kogyo Co. Ltd.		14,800		248,124
Pacific Industrial Co. Ltd.		14,800		240,382
Piolax Inc.		11,100		243,652
Press Kogyo Co. Ltd.		33,300		174,781
Riken Corp.		3,700		194,869
Sanden Holdings Corp.(a)(b)		7,400		97,368
Shoei Co. Ltd.		4,000		170,627
Showa Corp.		18,500		295,640
Sumitomo Riko Co. Ltd.		14,800		144,416
Tachi-S Co. Ltd.		11,100		177,083
Taiho Kogyo Co. Ltd.		7,400		77,747
Tokai Rika Co. Ltd.		18,500		390,571
Topre Corp.		11,100		270,680
Toyo Tire & Rubber Co. Ltd.		37,000		608,297
Toyota Boshoku Corp.		22,200		388,803
TPR Co. Ltd.		7,400		174,047
TS Tech Co. Ltd.		14,800		559,913
Unipres Corp.		14,800		288,566
Yorozu Corp.		7,400		110,715
				9,421,645
Automobiles — 0.1%
Nissan Shatai Co. Ltd.		22,200		197,004
Banks — 5.1%
77 Bank Ltd. (The)		18,500		431,113
Aichi Bank Ltd. (The)		3,700		165,004
Akita Bank Ltd. (The)		7,400		190,798
Aomori Bank Ltd. (The)		7,400		218,560
Awa Bank Ltd. (The)		74,000		479,831
Bank of Iwate Ltd. (The)		7,400		330,342
Bank of Nagoya Ltd. (The)(a)		3,700		127,966

Security	Shares		Value
Banks (continued)
Bank of Okinawa Ltd. (The)		7,400	$	288,632
Bank of Saga Ltd. (The)		3,700		76,713
Bank of the Ryukyus Ltd.		14,800		176,183
Chiba Kogyo Bank Ltd. (The)		18,500		81,918
Chugoku Bank Ltd. (The)		59,200		648,138
Chukyo Bank Ltd. (The)		3,700		77,047
Daishi Bank Ltd. (The)		7,400		297,308
Ehime Bank Ltd. (The)		11,100		122,727
Eighteenth Bank Ltd. (The)		37,000		119,791
Gunma Bank Ltd. (The)		118,400		605,427
Hachijuni Bank Ltd. (The)		129,500		579,267
Hiroshima Bank Ltd. (The)		88,800		622,245
Hokkoku Bank Ltd. (The)		7,400		290,634
Hokuetsu Bank Ltd. (The)		7,400		149,355
Hokuhoku Financial Group Inc.		40,700		571,125
Hyakugo Bank Ltd. (The)		74,000		306,317
Hyakujushi Bank Ltd. (The)		74,000		218,893
Iyo Bank Ltd. (The)		88,800		580,602
Jimoto Holdings Inc.		59,200		93,430
Juroku Bank Ltd. (The)		11,100		288,599
Kansai Mirai Financial Group Inc.(b)		29,674		269,752
Keiyo Bank Ltd. (The)		74,000		317,662
Kiyo Bank Ltd. (The)		22,200		340,152
Kyushu Financial Group Inc.		114,700		558,579
Miyazaki Bank Ltd. (The)		3,700		108,613
Musashino Bank Ltd. (The)		11,100		322,334
Nanto Bank Ltd. (The)		11,100		286,897
Nishi-Nippon Financial Holdings Inc.		51,800		603,092
North Pacific Bank Ltd.		99,900		337,850
Ogaki Kyoritsu Bank Ltd. (The)		11,100		280,891
Oita Bank Ltd. (The)		3,700		129,801
San ju San Financial Group Inc.(b)		3,700		73,176
San-in Godo Bank Ltd. (The)		51,800		437,253
Senshu Ikeda Holdings Inc.		88,800		314,726
Shiga Bank Ltd. (The)		74,000		369,716
Shikoku Bank Ltd. (The)		14,800		174,581
Suruga Bank Ltd.		74,000		402,417
Tochigi Bank Ltd. (The)		33,300		111,415
Toho Bank Ltd. (The)		70,300		261,204
Tokyo Kiraboshi Financial Group Inc.		7,430		167,650
TOMONY Holdings Inc.		51,800		216,758
Towa Bank Ltd. (The)		11,100		102,706
Yamagata Bank Ltd. (The)		7,400		164,437
Yamanashi Chuo Bank Ltd. (The)		37,000		133,138
				14,622,765
Beverages — 0.6%
Ito En Ltd.		18,500		814,177
Sapporo Holdings Ltd.		22,200		465,482
Takara Holdings Inc.		55,500		551,572
				1,831,231
Biotechnology —0.8%
GNI Group Ltd.(b)		3,899		139,595
HEALIOS KK(a)(b)		3,700		60,830
Japan Tissue Engineering Co. Ltd.(b)		7,400		79,349
PeptiDream Inc.(a)(b)		33,300		1,303,350
SanBio Co. Ltd.(b)		7,400		274,952
Takara Bio Inc.		18,500		461,144
				2,319,220

24 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Building Products — 1.7%
Aica Kogyo Co. Ltd.	18,500	$	713,239
Bunka Shutter Co. Ltd.	18,500		137,643
Central Glass Co. Ltd.	14,800		350,630
Maeda Kosen Co. Ltd.	7,400		133,071
Nichias Corp.	39,000		508,229
Nichiha Corp.	11,100		312,324
Nippon Sheet Glass Co. Ltd.	33,300		352,265
Nitto Boseki Co. Ltd.	7,600		175,255
Noritz Corp.	11,100		168,575
Okabe Co. Ltd.	14,800		135,874
Sankyo Tateyama Inc.	11,100		137,943
Sanwa Holdings Corp.	70,300		807,703
Sekisui Jushi Corp.	11,100		220,128
Sinko Industries Ltd.	7,400		112,517
Takara Standard Co. Ltd.	11,100		180,587
Takasago Thermal Engineering Co. Ltd.	18,500		328,006
			4,773,989
Capital Markets — 1.0%
Ichiyoshi Securities Co. Ltd.	14,800		148,420
Jafco Co. Ltd.	11,100		413,929
kabu.com Securities Co. Ltd.	51,800		173,780
Kyokuto Securities Co. Ltd.	7,400		94,832
M&A Capital Partners Co. Ltd.(a)(b)	3,700		225,567
Marusan Securities Co. Ltd.	18,500		158,498
Matsui Securities Co. Ltd.	40,700		431,280
Monex Group Inc.(a)	66,600		317,729
Okasan Securities Group Inc.	37,000		177,851
SPARX Group Co. Ltd.	33,300		78,982
Strike Co. Ltd.(a)	3,700		125,797
Tokai Tokyo Financial Holdings Inc.	77,700		451,968
Uzabase Inc.(b)	3,700		108,446
			2,907,079
Chemicals — 6.2%
Achilles Corp.	7,400		152,491
ADEKA Corp.	29,600		490,909
C.I. Takiron Corp.	7,400		41,109
Chugoku Marine Paints Ltd.	22,200		220,028
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.	3,700		114,452
Denka Co. Ltd.	29,600		1,015,719
DIC Corp.	25,900		921,455
Fujimi Inc.	7,400		200,074
Fujimori Kogyo Co. Ltd.	7,400		232,574
Fuso Chemical Co. Ltd.(a)	7,400		184,858
Hodogaya Chemical Co. Ltd.	3,700		112,283
Ishihara Sangyo Kaisha Ltd.(b)	11,100		165,972
JCU Corp.	7,400		181,588
JSP Corp.	3,700		93,697
Kanto Denka Kogyo Co. Ltd.	14,800		156,963
KH Neochem Co. Ltd.	11,100		415,430
Koatsu Gas Kogyo Co. Ltd.	11,100		83,887
Konishi Co. Ltd.	11,100		175,682
Kumiai Chemical Industry Co. Ltd.	33,349		284,813
Kureha Corp.	7,400		522,541
Lintec Corp.	18,500		507,192
Nihon Nohyaku Co. Ltd.	18,500		131,970
Nihon Parkerizing Co. Ltd.	33,300		442,959
Nippon Kayaku Co. Ltd.	48,100		566,087
Nippon Shokubai Co. Ltd.	11,100		819,849
Nippon Soda Co. Ltd.	37,000		211,553

Security	Shares		Value
Chemicals (continued)
Nippon Valqua Industries Ltd.	3,700	$	108,279
NOF Corp.	25,900		861,893
Okamoto Industries Inc.	19,000		209,388
Osaka Soda Co. Ltd.	3,700		105,443
Sakai Chemical Industry Co. Ltd.	3,700		97,167
Sakata INX Corp.	14,800		197,271
Sanyo Chemical Industries Ltd.	3,700		180,187
Sekisui Plastics Co. Ltd.	7,400		67,603
Shikoku Chemicals Corp.	11,100		146,352
Shin-Etsu Polymer Co. Ltd.	14,800		124,796
Stella Chemifa Corp.(a)	3,700		133,138
Sumitomo Bakelite Co. Ltd.	74,000		731,424
Sumitomo Seika Chemicals Co. Ltd.	3,700		190,531
T. Hasegawa Co. Ltd.	7,400		145,818
Taiyo Holdings Co. Ltd.	7,400		292,303
Takasago International Corp.	3,700		131,303
Tanaka Chemical Corp.(a)(b)	3,700		50,285
Tayca Corp.	3,700		92,596
Tenma Corp.	7,400		123,461
Toagosei Co. Ltd.	40,700		463,580
Tokai Carbon Co. Ltd.(a)	70,300		1,259,105
Tokuyama Corp.	22,200		682,707
Tokyo Ohka Kogyo Co. Ltd.	11,100		356,870
Toyo Ink SC Holdings Co. Ltd.	14,800		379,860
Toyobo Co. Ltd.	29,600		541,361
Ube Industries Ltd.	37,000		943,311
W-Scope Corp.(a)	11,100		92,796
Zeon Corp.	51,800		556,376
			17,711,339
Commercial Services &Supplies — 1.6%
Aeon Delight Co. Ltd.	7,400		266,943
Bell System24 Holdings Inc.	11,100		191,098
Central Security Patrols Co. Ltd.	3,700		137,142
Daiseki Co. Ltd.	14,860		392,523
Duskin Co. Ltd.	14,800		356,903
Itoki Corp.	14,800		81,551
Kokuyo Co. Ltd.	29,600		514,934
Matsuda Sangyo Co. Ltd.	7,460		104,212
Mitsubishi Pencil Co. Ltd.(a)	14,800		268,411
Nichiban Co. Ltd.	3,700		90,360
Nippon Kanzai Co. Ltd.	7,400		142,147
Nippon Parking Development Co. Ltd.	70,300		109,680
Okamura Corp.	22,200		303,314
Oyo Corp.	7,400		93,697
Pilot Corp.	11,100		633,657
Prestige International Inc.	18,500		213,221
Relia Inc.	14,800		193,000
Sato Holdings Corp.	7,400		239,582
Toppan Forms Co. Ltd.	18,500		182,356
			4,514,731
Communications Equipment — 0.1%
Denki Kogyo Co. Ltd.	3,700		113,618
Icom Inc.	3,700		81,584
			195,202
Construction & Engineering — 4.8%
Chiyoda Corp.(a)	62,900		462,312
Chudenko Corp.	11,100		262,071
COMSYS Holdings Corp.	40,700		1,106,647
Dai-Dan Co. Ltd.	3,700		94,531

S C H E D U L E    O F    I N V E S T M E N T S 25

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Construction & Engineering (continued)
Daiho Corp.	37,000	$	196,871
Fudo Tetra Corp.	66,600		126,131
Fukuda Corp.	3,700		185,859
Hazama Ando Corp.	62,900		473,090
Hibiya Engineering Ltd.	7,400		126,931
Kandenko Co. Ltd.	33,300		334,246
Kinden Corp.	48,100		760,421
Kumagai Gumi Co. Ltd.	11,100		300,812
Kyowa Exeo Corp.	29,600		830,193
Kyudenko Corp.	14,800		564,585
Maeda Corp.	48,100		575,630
Maeda Road Construction Co. Ltd.	22,200		431,447
Mirait Holdings Corp.	22,200		348,561
Nippo Corp.	19,100		355,525
Nippon Densetsu Kogyo Co. Ltd.	11,100		216,124
Nippon Koei Co. Ltd.	3,700		93,931
Nippon Road Co. Ltd. (The)	3,700		204,879
Nishimatsu Construction Co. Ltd.	18,700		448,760
Okumura Corp.	11,100		337,850
OSJB Holdings Corp.(a)	48,100		124,496
Penta-Ocean Construction Co. Ltd.	99,900		587,409
Raito Kogyo Co. Ltd.	14,800		186,860
Sanki Engineering Co. Ltd.	14,800		160,566
Shinnihon Corp.	11,100		118,723
SHO-BOND Holdings Co. Ltd.	7,400		519,872
Sumitomo Densetsu Co. Ltd.	7,400		124,596
Sumitomo Mitsui Construction Co. Ltd.	59,200		391,873
Taihei Dengyo Kaisha Ltd.	3,700		91,728
Taikisha Ltd.	7,400		239,248
Takamatsu Construction Group Co. Ltd.	3,700		96,333
Tekken Corp.	3,700		93,163
Toa Corp./Tokyo	3,700		98,936
Toda Corp.	77,700		540,960
Tokyu Construction Co. Ltd.	29,640		273,185
Toshiba Plant Systems & Services Corp.	18,500		400,748
Totetsu Kogyo Co. Ltd.	7,400		199,073
Toyo Construction Co. Ltd.	25,900		95,299
Toyo Engineering Corp.(a)(b)	11,100		96,200
Yahagi Construction Co. Ltd.	11,100		82,986
Yokogawa Bridge Holdings Corp.	11,100		223,031
Yurtec Corp.	11,100		88,492
			13,671,184
Construction Materials — 0.2%
Sumitomo Osaka Cement Co. Ltd.	148,000		635,325
Consumer Finance — 0.5%
Aiful Corp.(a)(b)	118,400		363,043
Hitachi Capital Corp.	18,500		515,534
J Trust Co. Ltd.(a)	22,200		152,558
Jaccs Co. Ltd.	7,400		161,901
Orient Corp.(a)	162,800		230,506
			1,423,542
Containers & Packaging — 0.6%
FP Corp.	7,400		417,766
Fuji Seal International Inc.(a)	14,800		523,209
Pack Corp. (The)	3,700		105,109
Rengo Co. Ltd.	62,900		541,160
			1,587,244

Security	Shares		Value
Distributors — 0.5%
Arata Corp.	3,700	$	175,515
Canon Marketing Japan Inc.	18,500		392,240
Doshisha Co. Ltd.	7,400		151,290
PALTAC Corp.	11,100		604,626
			1,323,671
Diversified Consumer Services — 0.1%
Meiko Network Japan Co. Ltd.	7,400		71,274
Studio Alice Co. Ltd.	3,700		82,686
			153,960
Diversified Financial Services — 0.8%
Financial Products Group Co. Ltd.	25,900		285,662
Fuyo General Lease Co. Ltd.	7,400		445,128
IBJ Leasing Co. Ltd.	11,100		290,201
Japan Investment Adviser Co. Ltd.(a)	3,700		148,487
Japan Securities Finance Co. Ltd.	33,300		185,592
Ricoh Leasing Co. Ltd.	3,700		122,627
Zenkoku Hosho Co. Ltd.	18,500		750,778
			2,228,475
Electric Utilities — 0.7%
Hokkaido Electric Power Co. Inc.(a)	62,900		429,979
Hokuriku Electric Power Co.(b)	59,200		583,004
Okinawa Electric Power Co. Inc. (The)	14,812		298,551
Shikoku Electric Power Co. Inc.	51,800		689,981
			2,001,515
Electrical Equipment — 1.6%
Chiyoda Integre Co. Ltd.	3,700		76,212
Cosel Co. Ltd.	7,400		89,092
Daihen Corp.	37,000		202,543
Denyo Co. Ltd.	7,400		110,381
FDK Corp.(a)(b)	37,000		57,727
Fujikura Ltd.	85,100		526,479
Furukawa Electric Co. Ltd.	25,900		893,426
Futaba Corp.	11,100		205,913
GS Yuasa Corp.	111,000		548,568
Idec Corp./Japan	11,100		232,741
Nippon Carbon Co. Ltd.(a)	3,700		228,570
Nissin Electric Co. Ltd.	18,500		164,170
Nitto Kogyo Corp.	7,400		125,864
Sanyo Denki Co. Ltd.	3,700		198,205
Sinfonia Technology Co. Ltd.	37,000		132,804
Tatsuta Electric Wire and Cable Co. Ltd.	14,800		81,151
Toyo Tanso Co. Ltd.	3,700		108,613
Ushio Inc.	40,700		538,091
			4,520,550
Electronic Equipment, Instruments & Components — 4.7%
Ai Holdings Corp.	14,800		334,613
Amano Corp.	18,500		387,568
Anritsu Corp.	48,100		755,216
Azbil Corp.	22,200		970,005
Canon Electronics Inc.	7,400		155,761
Citizen Watch Co. Ltd.	107,300		737,364
CMK Corp.	14,800		104,241
CONEXIO Corp.	3,700		71,274
Daiwabo Holdings Co. Ltd.	7,400		442,458
Dexerials Corp.	18,500		203,878
Elematec Corp.	3,700		83,753
Enplas Corp.	3,700		105,943
ESPEC Corp.	3,700		76,079
Hioki E.E. Corp.	3,700		135,307

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Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Electronic Equipment, Instruments & Components (continued)
Hochiki Corp.	3,700	$	54,957
Horiba Ltd.	14,800		918,285
Hosiden Corp.	18,500		179,686
Ibiden Co. Ltd.	40,700		592,414
Iriso Electronics Co. Ltd.	7,400		418,434
Japan Aviation Electronics Industry Ltd.	17,000		311,530
Japan Cash Machine Co. Ltd.	7,400		89,826
Japan Display Inc.(b)	210,900		319,531
Kaga Electronics Co. Ltd.	7,400		143,816
Koa Corp.	7,400		148,754
Macnica Fuji Electronics Holdings Inc.	14,800		266,276
Maruwa Co. Ltd./Aichi	3,700		276,954
Nichicon Corp.	18,500		212,220
Nippon Ceramic Co. Ltd.	7,400		199,073
Nippon Chemi-Con Corp.	3,700		121,793
Nippon Signal Co. Ltd.	18,500		190,531
Nissha Co. Ltd.(a)	14,800		308,586
Nohmi Bosai Ltd.	7,400		156,896
Ohara Inc.	3,700		93,664
Oki Electric Industry Co. Ltd.	29,600		373,987
Optex Group Co. Ltd.	11,100		247,857
Osaki Electric Co. Ltd.	7,400		54,523
Riken Keiki Co. Ltd.	3,700		82,252
Ryosan Co. Ltd.	7,400		279,289
Ryoyo Electro Corp.	7,400		118,790
Sanshin Electronics Co. Ltd.	3,700		63,633
SIIX Corp.(a)	11,100		223,431
Taiyo Yuden Co. Ltd.	40,700		1,202,079
Tamura Corp.	22,200		161,167
Topcon Corp.	37,000		647,337
UKC Holdings Corp.	3,700		81,718
V Technology Co. Ltd.	1,700		292,519
			13,395,268
Energy Equipment & Services — 0.2%
Modec Inc.	7,400		224,566
Shinko Plantech Co. Ltd.	14,800		138,944
Toyo Kanetsu KK	3,700		109,780
			473,290
Equity Real Estate Investment Trusts (REITs) — 7.7%
Activia Properties Inc.	222		979,014
Advance Residence Investment Corp.	444		1,135,977
AEON REIT Investment Corp.	518		558,245
Comforia Residential REIT Inc.	222		524,543
Daiwa Office Investment Corp.	111		677,702
Frontier Real Estate Investment Corp.	185		746,607
Fukuoka REIT Corp.	259		398,012
Global One Real Estate Investment Corp.	296		301,646
GLP J-REIT	1,036		1,039,877
Hankyu REIT Inc.	185		234,076
Heiwa Real Estate REIT Inc.	333		322,834
Hoshino Resorts REIT Inc.	74		375,723
Hulic Reit Inc.	370		544,898
Ichigo Office REIT Investment	481		387,368
Industrial & Infrastructure Fund Investment Corp.	518		541,895
Invesco Office J-Reit Inc.	3,071		443,403
Invincible Investment Corp.	2,072		899,732
Japan Excellent Inc.	444		580,601
Japan Hotel REIT Investment Corp.	1,480		1,123,831
Japan Logistics Fund Inc.	296		564,051

Security	Shares		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Japan Rental Housing Investments Inc.	592	$	480,498
Kenedix Office Investment Corp.	148		920,954
Kenedix Residential Next Investment Corp.	296		458,075
Kenedix Retail REIT Corp.	185		396,911
LaSalle Logiport REIT	407		378,058
MCUBS MidCity Investment Corp.	592		449,532
Mitsubishi Estate Logistics REIT Investment Corp.	111		254,364
Mitsui Fudosan Logistics Park Inc.	74		214,556
Mori Hills REIT Investment Corp.	555		704,230
Mori Trust Hotel Reit Inc.	111		146,252
Mori Trust Sogo REIT Inc.	370		541,561
Nippon Accommodations Fund Inc.	148		674,032
NIPPON REIT Investment Corp.	185		593,949
Orix JREIT Inc.	962		1,504,359
Premier Investment Corp.	481		492,343
Sekisui House Reit Inc.	1,295		842,039
Tokyu REIT Inc.	333		461,878
			21,893,626
Food & Staples Retailing — 3.4%
Ain Holdings Inc.	11,100		850,881
Arcs Co. Ltd.	14,800		363,844
Axial Retailing Inc.	3,700		130,135
Belc Co. Ltd.	3,700		195,536
Cawachi Ltd.	3,700		70,807
Cocokara fine Inc.	7,400		441,791
Cosmos Pharmaceutical Corp.	3,700		776,471
Create SD Holdings Co. Ltd.	11,100		258,368
Daikokutenbussan Co. Ltd.(a)	3,700		143,148
Genky DrugStores Co. Ltd.(a)	3,700		134,473
Heiwado Co. Ltd.	11,100		291,102
Kansai Super Market Ltd.	3,700		38,607
Kato Sangyo Co. Ltd.	7,400		240,916
Kobe Bussan Co. Ltd.	3,700		181,855
Kusuri no Aoki Holdings Co. Ltd.	4,800		351,066
Life Corp.	3,700		90,293
Matsumotokiyoshi Holdings Co. Ltd.	29,600		1,121,161
Ministop Co. Ltd.	7,400		134,206
Mitsubishi Shokuhin Co. Ltd.	3,700		102,273
Nihon Chouzai Co. Ltd.	3,700		115,620
Qol Co. Ltd.	7,400		147,753
Retail Partners Co. Ltd.	8,000		115,435
San-A Co. Ltd.	7,400		345,691
Shoei Foods Corp.	3,700		132,971
Sogo Medical Co. Ltd.	7,400		152,224
Sugi Holdings Co. Ltd.	14,800		732,759
United Super Markets Holdings Inc.	18,500		211,886
Valor Holdings Co. Ltd.	14,800		314,593
Welcia Holdings Co. Ltd.	18,500		855,887
Yakuodo Co. Ltd.	3,700		124,462
Yaoko Co. Ltd.	7,400		411,760
Yokohama Reito Co. Ltd.	18,500		150,990
			9,728,964
Food Products — 4.3%
Ariake Japan Co. Ltd.	7,400		667,358
Chubu Shiryo Co. Ltd.	7,400		100,104
DyDo Group Holdings Inc.	3,700		179,519
Ezaki Glico Co. Ltd.	14,800		746,106
Feed One Co. Ltd.	29,600		54,723
Fuji Oil Holdings Inc.	18,500		563,918

S C H E D U L E    O F    I N V E S T M E N T S 27

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Food Products (continued)
Fujicco Co. Ltd.	7,400	$	161,768
Fujiya Co. Ltd.	3,700		82,052
Hokuto Corp.	7,400		127,265
House Foods Group Inc.	22,200		659,683
Itoham Yonekyu Holdings Inc.	51,800		385,399
J-Oil Mills Inc.	3,700		127,132
Kagome Co. Ltd.	29,600		840,871
Kameda Seika Co. Ltd.	3,700		164,337
Kenko Mayonnaise Co. Ltd.	3,700		98,168
Kewpie Corp.	37,000		893,592
KEY Coffee Inc.	7,400		141,146
Kotobuki Spirits Co. Ltd.	7,400		327,005
Marudai Food Co. Ltd.	37,000		145,484
Maruha Nichiro Corp.	14,800		514,533
Megmilk Snow Brand Co. Ltd.	18,500		467,818
Mitsui Sugar Co. Ltd.	7,400		202,210
Morinaga & Co. Ltd./Japan	14,800		576,597
Morinaga Milk Industry Co. Ltd.	14,800		402,417
Nichirei Corp.	37,200		936,668
Nippon Beet Sugar Manufacturing Co. Ltd.	7,400		130,802
Nippon Flour Mills Co. Ltd.	18,500		309,988
Nippon Suisan Kaisha Ltd.	103,600		569,924
Nisshin OilliO Group Ltd. (The)	7,400		200,541
Prima Meat Packers Ltd.(a)	37,000		184,191
Riken Vitamin Co. Ltd.	3,700		130,469
Rock Field Co. Ltd.	7,400		122,394
Rokko Butter Co. Ltd.	3,700		88,525
S Foods Inc.	7,400		290,634
Sakata Seed Corp.	11,100		384,899
Showa Sangyo Co. Ltd.	7,400		195,269
Warabeya Nichiyo Holdings Co. Ltd.	7,400		146,018
			12,319,527
Gas Utilities — 0.3%
K&O Energy Group Inc.	7,400		119,391
Nippon Gas Co. Ltd.	14,800		700,726
Shizuoka Gas Co. Ltd.	18,500		152,491
			972,608
Health Care Equipment & Supplies — 2.0%
Asahi Intecc Co. Ltd.	33,300		1,271,818
Eiken Chemical Co. Ltd.	11,100		230,339
Fukuda Denshi Co. Ltd.	3,700		253,262
Hogy Medical Co. Ltd.	7,400		256,266
JEOL Ltd.	37,000		385,399
Mani Inc.	7,400		324,002
Menicon Co. Ltd.	7,400		169,843
Nagaileben Co. Ltd.	7,400		172,979
Nakanishi Inc.	22,200		447,263
Nihon Kohden Corp.	29,600		867,566
Nikkiso Co. Ltd.	18,500		221,062
Nipro Corp.	51,800		693,252
Paramount Bed Holdings Co. Ltd.	7,400		341,020
Seed Co. Ltd/Tokyo	3,700		70,473
			5,704,544
Health Care Providers & Services — 1.2%
AS ONE Corp.	3,700		267,277
BML Inc.	7,400		207,882
Japan Lifeline Co. Ltd.(a)	18,500		355,201
Miraca Holdings Inc.	18,500		512,197
NichiiGakkan Co. Ltd.	14,800		124,796

Security	Shares		Value
Health Care Providers & Services (continued)
Ship Healthcare Holdings Inc.	14,800	$	570,591
Solasto Corp.	18,500		213,054
Toho Holdings Co. Ltd.	18,500		488,339
Tokai Corp./Gifu	7,400		167,641
Tsukui Corp.	22,200		211,019
Vital KSK Holdings Inc.	14,800		168,441
			3,286,438
Health Care Technology — 0.0%
Medical Data Vision Co. Ltd.(a)(b)	7,400		126,598
Hotels, Restaurants & Leisure — 3.8%
Aeon Fantasy Co. Ltd.	3,700		129,801
Arcland Service Holdings Co. Ltd.	3,700		66,836
Atom Corp.	33,300		317,729
BRONCO BILLY Co. Ltd.	3,700		113,785
Colowide Co. Ltd.	22,200		617,640
Create Restaurants Holdings Inc.(a)	14,800		177,250
Daisyo Corp.	3,700		55,991
Doutor Nichires Holdings Co. Ltd.	11,100		195,703
Fuji Kyuko Co. Ltd.(a)	7,400		212,220
Fujita Kanko Inc.(a)	3,700		113,785
Hiday Hidaka Corp.	7,459		151,353
HIS Co. Ltd.	14,800		487,171
Ichibanya Co. Ltd.	3,700		150,323
Kappa Create Co. Ltd.	11,100		135,040
Kisoji Co. Ltd.	7,400		174,114
KNT-CT Holdings Co. Ltd.(b)	3,700		42,444
Komeda Holdings Co. Ltd.	14,800		286,430
Koshidaka Holdings Co. Ltd.	14,800		156,295
Kura Corp.	3,700		219,561
Kyoritsu Maintenance Co. Ltd.	11,180		530,341
Matsuya Foods Co. Ltd.	3,700		121,292
Monogatari Corp. (The)	900		84,412
MOS Food Services Inc.	11,100		293,804
Ohsho Food Service Corp.	3,700		241,917
Pepper Food Service Co. Ltd.(a)	3,700		127,465
Plenus Co. Ltd.	7,400		123,795
Resorttrust Inc.	29,600		479,964
Ringer Hut Co. Ltd.	7,400		157,563
Round One Corp.	25,900		341,487
Royal Holdings Co. Ltd.	11,100		275,786
Saizeriya Co. Ltd.	11,100		223,231
Skylark Holdings Co. Ltd.(a)	70,300		1,006,142
St. Marc Holdings Co. Ltd.	7,400		173,914
Sushiro Global Holdings Ltd.	7,400		421,770
TKP Corp.(a)(b)	3,700		129,634
Tokyo Dome Corp.	33,300		281,392
Tokyotokeiba Co. Ltd.	7,400		289,300
Toridoll Holdings Corp.(a)	7,400		167,907
Tosho Co. Ltd.	7,400		287,965
WATAMI Co. Ltd.(a)	7,400		82,085
Yoshinoya Holdings Co. Ltd.(a)	22,200		374,788
Zensho Holdings Co. Ltd.	33,300		671,796
			10,691,221
Household Durables — 1.9%
Alpine Electronics Inc.	14,800		329,675
Chofu Seisakusho Co. Ltd.	7,400		160,900
Clarion Co. Ltd.	37,000		106,444
Cleanup Corp.	7,400		50,786
ES-Con Japan Ltd.	11,100		84,287

28 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Household Durables (continued)
Foster Electric Co. Ltd.		7,400	$	103,974
France Bed Holdings Co. Ltd.		11,100		93,997
Fujitsu General Ltd.		22,200		366,780
Haseko Corp.		99,900		1,297,344
Hinokiya Group Co. Ltd.		3,700		97,134
JVC Kenwood Corp.		48,100		137,075
LEC Inc.		4,200		206,809
Misawa Homes Co. Ltd.		7,400		58,728
Pioneer Corp.(a)(b)		118,400		138,811
Pressance Corp.		14,800		227,035
Sangetsu Corp.		18,500		354,033
Starts Corp. Inc.		11,100		252,862
Sumitomo Forestry Co. Ltd.		48,100		779,074
Tamron Co. Ltd.		7,400		147,086
Token Corp.		3,720		264,025
Zojirushi Corp.		14,800		198,873
				5,455,732
Household Products — 0.8%
Earth Corp.		3,700		168,174
Pigeon Corp.		40,700		1,971,042
S.T. Corp.		3,700		68,271
				2,207,487
Independent Power and Renewable Electricity Producers — 0.0%
eRex Co. Ltd.		11,100		115,119
Industrial Conglomerates — 0.3%
Katakura Industries Co. Ltd.		7,400		88,692
Nisshinbo Holdings Inc.		51,800		582,537
TOKAI Holdings Corp.		33,300		322,834
				994,063
Insurance — 0.1%
Anicom Holdings Inc.(a)		7,400		250,593
Internet & Direct Marketing Retail — 0.3%
ASKUL Corp.(a)		7,400		214,222
Belluna Co. Ltd.		18,500		204,211
Open Door Inc.(b)		3,700		111,616
Yume No Machi Souzou Iinkai Co. Ltd.(a)		7,400		223,231
				753,280
Internet Software &Services — 1.0%
Ateam Inc.		3,700		70,540
COOKPAD Inc.		22,200		94,698
Dip Corp.		11,100		265,475
F@N Communications Inc.		14,800		91,028
GMO Internet Inc.		25,900		449,399
Gree Inc.		40,700		206,647
Gurunavi Inc.		11,100		91,595
Infomart Corp.(a)		33,300		393,708
Internet Initiative Japan Inc.		11,100		237,546
Istyle Inc.(a)		14,800		180,053
Mixi Inc.		14,800		363,310
Rakus Co. Ltd.		7,400		140,345
UNITED Inc./Japan(a)		3,700		102,273
ZIGExN Co. Ltd.(b)		18,500		137,142
				2,823,759
IT Services — 3.0%
Comture Corp.		3,700		130,469
Digital Garage Inc.		11,100		380,394
Digital Hearts Holdings Co. Ltd.		3,700		49,585

Security	Shares		Value
IT Services (continued)
DTS Corp.		7,400	$	303,982
Future Corp.		7,400		119,190
GMO Payment Gateway Inc.(a)		6,074		724,158
Ines Corp.		11,100		122,527
Infocom Corp.		3,700		117,622
Information Services International-Dentsu Ltd.		3,700		130,969
Itochu Techno-Solutions Corp.		37,000		820,850
Kanematsu Electronics Ltd.		3,700		126,298
Mitsubishi Research Institute Inc.		3,700		140,979
NEC Networks &System Integration Corp.		7,400		173,914
NET One Systems Co. Ltd.		29,600		687,112
Nihon Unisys Ltd.		25,900		634,157
NS Solutions Corp.		14,800		479,830
NSD Co. Ltd.		14,800		309,788
Remixpoint Inc.(a)		11,100		107,211
SCSK Corp.		18,556		883,579
SHIFT Inc.(b)		3,700		162,835
TIS Inc.		25,948		1,254,284
TKC Corp.		7,400		288,632
Transcosmos Inc.(a)		11,100		268,778
				8,417,143
Leisure Products — 0.5%
Fields Corp.		7,400		60,796
Heiwa Corp.		18,516		444,344
Mars Engineering Corp.		3,700		77,113
Mizuno Corp.		7,400		197,605
Tomy Co. Ltd.		29,600		292,036
Universal Entertainment Corp.(a)(b)		7,400		247,256
Yonex Co. Ltd.		22,200		134,540
				1,453,690
Life Sciences Tools & Services — 0.1%
CMIC Holdings Co. Ltd.		3,700		79,616
EPS Holdings Inc.		11,100		226,535
Linical Co. Ltd.		3,700		57,292
				363,443
Machinery — 6.3%
Aichi Corp.		11,100		62,865
Aida Engineering Ltd.		18,500		166,506
Anest Iwata Corp.		14,800		146,819
Asahi Diamond Industrial Co. Ltd.		18,500		137,142
Bando Chemical Industries Ltd.		14,800		165,505
CKD Corp.		18,500		273,784
Daiwa Industries Ltd.		11,100		119,023
DMG Mori Co. Ltd.		37,000		613,302
Ebara Corp.		37,000		1,267,980
Fuji Corp./Aichi		22,200		373,187
Fujitec Co. Ltd.		22,200		294,105
Fukushima Industries Corp.		3,700		178,185
Furukawa Co. Ltd.		11,100		179,286
Giken Ltd.		3,700		83,787
Glory Ltd.		18,500		494,512
Harmonic Drive Systems Inc.(a)		11,100		450,967
Hirata Corp.		3,700		287,298
Hisaka Works Ltd.		3,700		38,106
Hitachi Zosen Corp.		59,200		255,198
Hosokawa Micron Corp.		3,700		224,232
Iseki &Co. Ltd.		7,400		132,604
Japan Steel Works Ltd. (The)		22,200		569,590
Kitz Corp.		25,900		227,969

S C H E D U L E    O F    I N V E S T M E N T S 29

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Machinery (continued)
Komori Corp.		18,500	$	223,398
Kyokuto Kaihatsu Kogyo Co. Ltd.		11,100		168,274
Makino Milling Machine Co. Ltd.		37,000		342,021
Max Co. Ltd.		7,400		106,177
Meidensha Corp.		74,000		254,263
METAWATER Co. Ltd.		3,700		99,937
Mitsubishi Logisnext Co. Ltd.		11,100		132,437
Mitsuboshi Belting Ltd.		13,000		159,093
Mitsui E&S Holdings Co. Ltd.(b)		25,900		405,720
Miura Co. Ltd.		33,300		935,469
Morita Holdings Corp.		11,100		239,648
Nachi-Fujikoshi Corp.		3,700		179,853
Namura Shipbuilding Co. Ltd.		18,500		83,253
Nippon Sharyo Ltd.(b)		37,000		95,766
Nippon Thompson Co. Ltd.		22,200		162,969
Nissei ASB Machine Co. Ltd.(a)		3,700		166,673
Nitta Corp.		7,400		268,278
Nitto Kohki Co. Ltd.		3,700		80,984
Nittoku Engineering Co. Ltd.(a)		3,700		118,122
Noritake Co. Ltd./Nagoya Japan		3,700		222,897
NTN Corp.		144,300		593,415
Obara Group Inc.		4,000		199,486
Oiles Corp.		7,496		161,906
OKUMA Corp.		7,400		428,444
OSG Corp.		25,900		595,851
Rheon Automatic Machinery Co. Ltd.		7,400		132,404
Ryobi Ltd.		7,400		271,948
Shibuya Corp.		3,700		137,643
Shima Seiki Manufacturing Ltd.		7,400		346,359
Shinmaywa Industries Ltd.		29,600		357,971
Sintokogio Ltd.		14,800		137,342
Sodick Co. Ltd.		14,800		144,149
Star Micronics Co. Ltd.		14,800		267,610
Tadano Ltd.		37,000		407,422
Takeuchi Manufacturing Co. Ltd.		11,100		284,595
Takuma Co. Ltd.		25,900		319,998
Teikoku Sen-I Co. Ltd.		7,400		170,977
Tocalo Co. Ltd.		19,300		223,660
Toshiba Machine Co. Ltd.		37,000		173,847
Tsubaki Nakashima Co. Ltd.		14,800		302,847
Tsubakimoto Chain Co.		37,000		331,677
Tsugami Corp.		16,000		170,555
Tsukishima Kikai Co. Ltd.		11,100		150,856
Tsurumi Manufacturing Co. Ltd.		7,400		125,330
Union Tool Co.		3,700		131,970
YAMABIKO Corp.		11,100		130,936
Yamashin-Filter Corp.(a)		11,100		102,106
Yushin Precision Equipment Co. Ltd.		7,400		81,551
				18,070,039
Marine — 0.3%
Iino Kaiun Kaisha Ltd.		33,300		176,883
Kawasaki Kisen Kaisha Ltd.(a)(b)		29,600		548,835
NS United Kaiun Kaisha Ltd.		3,700		77,981
				803,699
Media — 1.4%
Amuse Inc.		3,700		107,945
Avex Inc.		11,100		149,154
D.A. Consortium Holdings Inc.(a)		7,400		245,588
Daiichikosho Co. Ltd.		14,800		686,044

Security	Shares		Value
Media (continued)
Kadokawa Dwango(b)		18,508	$	202,631
Lifull Co. Ltd.		18,500		113,951
Macromill Inc.		11,100		268,979
Proto Corp.		3,700		53,289
Septeni Holdings Co. Ltd.(a)		29,600		48,317
Shochiku Co. Ltd.(a)		3,700		454,137
SKY Perfect JSAT Holdings Inc.		48,100		228,170
Toei Animation Co. Ltd.		3,700		131,636
Toei Co. Ltd.		2,700		312,161
Tokyo Broadcasting System Holdings Inc.		14,800		312,724
TV Asahi Holdings Corp.		7,400		137,943
Vector Inc.(a)		11,100		254,163
Zenrin Co. Ltd.		11,100		342,355
				4,049,187
Metals & Mining — 1.9%
Aichi Steel Corp.		3,700		134,306
Asahi Holdings Inc.		11,100		211,119
Daido Steel Co. Ltd.		11,100		507,526
Dowa Holdings Co. Ltd.		18,500		554,741
Godo Steel Ltd.		3,700		77,647
Kyoei Steel Ltd.		7,400		135,807
Mitsubishi Steel Manufacturing Co. Ltd.		3,700		71,107
Mitsui Mining & Smelting Co. Ltd.		22,200		637,661
Nakayama Steel Works Ltd.		3,700		22,457
Neturen Co. Ltd.		11,100		101,705
Nippon Denko Co. Ltd.		40,700		104,975
Nippon Light Metal Holdings Co. Ltd.		210,900		465,983
Nisshin Steel Co. Ltd.		18,500		259,769
Nittetsu Mining Co. Ltd.		3,700		170,844
Osaka Steel Co. Ltd.		3,700		67,203
OSAKA Titanium Technologies Co. Ltd.(a)		7,400		109,914
Pacific Metals Co. Ltd.(b)		3,700		124,462
Sanyo Special Steel Co. Ltd.		7,400		171,044
Toho Titanium Co. Ltd.(a)		11,100		116,821
Toho Zinc Co. Ltd.		3,700		123,294
Tokyo Steel Manufacturing Co. Ltd.		37,000		296,641
Topy Industries Ltd.		3,700		100,604
UACJ Corp.		11,114		253,582
Yamato Kogyo Co. Ltd.		14,800		425,775
Yodogawa Steel Works Ltd.		7,400		174,514
				5,419,501
Multiline Retail — 0.8%
Fuji Co. Ltd./Ehime		7,400		140,279
H2O Retailing Corp.		29,635		466,634
Izumi Co. Ltd.		14,800		887,586
Kintetsu Department Store Co. Ltd.(b)		3,700		120,625
Matsuya Co. Ltd.		11,100		117,822
Parco Co. Ltd.		7,400		78,681
Seria Co. Ltd.		14,800		607,296
				2,418,923
Oil, Gas &Consumable Fuels — 0.5%
Cosmo Energy Holdings Co. Ltd.		22,200		819,850
ITOCHU Enex Co. Ltd.		18,500		177,851
Japan Petroleum Exploration Co. Ltd.		11,100		236,845
San-Ai Oil Co. Ltd.		18,500		230,906
				1,465,452
Paper & Forest Products — 0.5%
Daiken Corp.		3,700		74,744
Daio Paper Corp.(a)		25,900		367,648

30 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Paper & Forest Products (continued)
Hokuetsu Corp.		44,400	$	247,056
Nippon Paper Industries Co. Ltd.		33,300		607,529
Tokushu Tokai Paper Co. Ltd.		3,700		150,156
				1,447,133
Personal Products — 1.0%
Ci:z Holdings Co. Ltd.		11,100		478,496
Euglena Co. Ltd.(a)(b)		25,900		196,203
Fancl Corp.		14,800		762,123
Kitanotatsujin Corp.(a)		22,200		115,320
Mandom Corp.		14,800		445,795
Milbon Co. Ltd.		7,400		337,016
Noevir Holdings Co. Ltd.		7,400		434,450
YA-MAN Ltd.(a)		11,100		190,197
				2,959,600
Pharmaceuticals — 2.5%
ASKA Pharmaceutical Co. Ltd.		7,400		90,894
Fuji Pharma Co. Ltd.		7,400		118,856
JCR Pharmaceuticals Co. Ltd.		3,700		200,541
Kaken Pharmaceutical Co. Ltd.		11,100		571,592
Kissei Pharmaceutical Co. Ltd.		11,100		328,841
KYORIN Holdings Inc.		14,800		308,052
Mochida Pharmaceutical Co. Ltd.		3,700		286,630
Nichi-Iko Pharmaceutical Co. Ltd.		14,850		216,419
Nippon Shinyaku Co. Ltd.		18,500		1,089,462
Rohto Pharmaceutical Co. Ltd.		33,300		1,066,105
Sawai Pharmaceutical Co. Ltd.		14,800		791,487
Seikagaku Corp.		14,800		209,017
Sosei Group Corp.(a)(b)		29,600		454,337
Torii Pharmaceutical Co. Ltd.		3,700		79,015
Towa Pharmaceutical Co. Ltd.		3,700		258,268
Tsumura &Co.		22,200		759,787
ZERIA Pharmaceutical Co. Ltd.		11,100		238,447
				7,067,750
Professional Services — 2.4%
Altech Corp.		3,700		91,495
BayCurrent Consulting Inc.		3,700		101,438
Benefit One Inc.		11,100		317,829
en-japan Inc.		11,100		522,541
FULLCAST Holdings Co. Ltd.		7,400		180,320
Funai Soken Holdings Inc.		14,800		319,264
JAC Recruitment Co. Ltd.		3,700		80,617
Link And Motivation Inc.		11,100		128,133
Meitec Corp.		7,600		367,372
Nihon M&A Center Inc.		51,800		1,358,941
Nomura Co. Ltd.		14,800		296,441
Outsourcing Inc.		25,900		488,172
Pasona Group Inc.		7,400		122,594
SMS Co. Ltd.		22,200		422,037
Tanseisha Co. Ltd.		14,800		168,308
TechnoPro Holdings Inc.		14,800		924,958
Trust Tech Inc.		3,700		162,669
UT Group Co. Ltd.(b)		7,400		249,592
WDB Holdings Co. Ltd.(a)		3,700		131,636
World Holdings Co. Ltd.		3,700		113,951
YAMADA Consulting Group Co. Ltd.(a)		3,700		87,224
Yumeshin Holdings Co. Ltd.		14,800		157,497
				6,793,029
Real Estate Management & Development — 2.1%
Daibiru Corp.		18,500		193,200

Security	Shares		Value
Real Estate Management & Development (continued)
Daikyo Inc.		11,100	$	227,536
Goldcrest Co. Ltd.		7,400		123,461
Heiwa Real Estate Co. Ltd.		14,800		257,200
Ichigo Inc.		85,100		348,428
Japan Asset Marketing Co. Ltd.(b)		48,100		54,657
Katitas Co. Ltd.(a)		7,400		238,247
Kenedix Inc.		88,800		572,593
Leopalace21 Corp.		88,800		472,490
NTT Urban Development Corp.		44,400		494,913
Open House Co. Ltd.		11,300		661,379
Raysum Co. Ltd.(a)		3,700		58,527
Relo Group Inc.		40,700		1,117,658
SAMTY Co. Ltd.		3,700		79,916
Shinoken Group Co. Ltd.		7,400		116,454
Sun Frontier Fudousan Co. Ltd.		11,100		137,242
Takara Leben Co. Ltd.		29,600		98,502
Tateru Inc.		14,800		214,355
TOC Co. Ltd.		18,500		134,806
Tosei Corp.		11,100		107,111
Unizo Holdings Co. Ltd.		7,400		141,947
				5,850,622
Road & Rail — 2.3%
Fukuyama Transporting Co. Ltd.		11,100		522,541
Hamakyorex Co. Ltd.		3,700		124,796
Hitachi Transport System Ltd.		14,800		408,423
Nankai Electric Railway Co. Ltd.		37,000		965,334
Nikkon Holdings Co. Ltd.		22,200		563,984
Nishi-Nippon Railroad Co. Ltd.		22,200		594,416
Sakai Moving Service Co. Ltd.(a)		3,700		201,876
Sankyu Inc.		18,700		994,995
Seino Holdings Co. Ltd.		48,100		737,864
Senko Group Holdings Co. Ltd.		37,000		305,650
Sotetsu Holdings Inc.		25,900		809,339
Tonami Holdings Co. Ltd.		800		46,751
Trancom Co. Ltd.		3,700		251,928
				6,527,897
Semiconductors & Semiconductor Equipment — 2.1%
Advantest Corp.		66,600		1,600,058
Ferrotec Holdings Corp.		11,100		142,748
Japan Material Co. Ltd.		22,200		322,935
Lasertec Corp.		14,800		551,905
Megachips Corp.(a)		7,400		141,613
Micronics Japan Co. Ltd.(a)		11,100		87,591
Mimasu Semiconductor Industry Co. Ltd.		3,700		60,162
Mitsui High-Tec Inc.(a)		7,400		107,511
Optorun Co. Ltd.		3,700		109,947
Sanken Electric Co. Ltd.		37,000		212,554
SCREEN Holdings Co. Ltd.		14,800		1,122,496
Shindengen Electric Manufacturing Co. Ltd.		3,700		186,527
Shinko Electric Industries Co. Ltd.		25,900		244,553
Tokyo Seimitsu Co. Ltd.		14,800		460,477
Ulvac Inc.		14,800		614,637
				5,965,714
Software — 1.9%
Akatsuki Inc.(a)		3,700		128,133
Broadleaf Co. Ltd.		29,600		193,534
Capcom Co. Ltd.		29,600		691,650
COLOPL Inc.		18,500		120,625
Computer Engineering & Consulting Ltd.		7,400		162,101

S C H E D U L E    O F    I N V E S T M E N T S 31

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Software (continued)
Digital Arts Inc.		3,700	$	169,175
Fuji Soft Inc.		7,400		365,045
Fukui Computer Holdings Inc.		3,700		72,909
GungHo Online Entertainment Inc.(a)		140,600		300,511
Gunosy Inc.(a)(b)		3,700		60,029
Justsystems Corp.		11,100		200,708
KLab Inc.(a)		11,100		99,103
Koei Tecmo Holdings Co. Ltd.		14,840		304,201
Marvelous Inc.(a)		11,100		86,590
Miroku Jyoho Service Co. Ltd.		7,400		169,175
Money Forward Inc.(b)		3,700		156,162
MTI Ltd.		11,100		63,566
OBIC Business Consultants Co. Ltd.		3,700		303,981
PKSHA Technology Inc.(b)		800		84,700
Square Enix Holdings Co. Ltd.		29,800		1,362,547
Systena Corp.		25,900		335,881
				5,430,326
Specialty Retail — 2.7%
Adastria Co. Ltd.		7,400		89,159
Alpen Co. Ltd.		7,400		133,472
AOKI Holdings Inc.		14,800		199,941
Aoyama Trading Co. Ltd.		14,800		450,467
Arcland Sakamoto Co. Ltd.		7,400		96,166
Asahi Co. Ltd.		7,400		96,233
Autobacs Seven Co. Ltd.		25,900		440,990
Bic Camera Inc.		37,000		497,182
Chiyoda Co. Ltd.		7,400		146,752
DCM Holdings Co. Ltd.		37,000		338,684
EDION Corp.		22,200		254,664
Geo Holdings Corp.		11,100		161,768
IDOM Inc.		22,200		75,278
JINS Inc.		4,800		247,175
Joshin Denki Co. Ltd.		7,400		200,207
Joyful Honda Co. Ltd.		22,200		330,342
Keiyo Co. Ltd.(a)		11,100		52,955
Kohnan Shoji Co. Ltd.		11,100		256,566
Komeri Co. Ltd.		11,100		273,083
K’s Holdings Corp.		59,200		718,077
Laox Co. Ltd.(b)		11,100		41,944
LIXIL VIVA Corp.		7,600		122,960
Nextage Co. Ltd.(a)		11,100		81,284
Nishimatsuya Chain Co. Ltd.		14,800		160,299
Nojima Corp.		11,100		245,755
PAL GROUP Holdings Co. Ltd.		3,700		82,819
PC Depot Corp.(a)		11,140		55,155
Sac’s Bar Holdings Inc.		7,400		59,061
Sanrio Co. Ltd.		18,500		396,744
Shimachu Co. Ltd.		14,800		484,502
T-Gaia Corp.		7,400		195,202
Tokyo Base Co. Ltd.(a)(b)		7,400		45,113
United Arrows Ltd.		7,400		272,282
VT Holdings Co. Ltd.		29,600		134,273
Xebio Holdings Co. Ltd.		7,400		107,778
Yellow Hat Ltd.		7,400		206,547
				7,750,879
Technology Hardware, Storage & Peripherals — 0.7%
Eizo Corp.		7,400		327,339
Elecom Co. Ltd.		3,700		98,102
Maxell Holdings Ltd.		18,500		298,976

Security	Shares		Value
Technology Hardware, Storage & Peripherals (continued)
MCJ Co. Ltd.		25,900	$	234,977
Melco Holdings Inc.		3,700		139,812
Noritsu Koki Co. Ltd.		7,400		193,334
Riso Kagaku Corp.		7,400		180,320
Roland DG Corp.		3,700		87,090
Toshiba TEC Corp.		37,000		222,230
Wacom Co. Ltd.		51,800		233,108
				2,015,288
Textiles, Apparel & Luxury Goods — 1.0%
Descente Ltd.		11,100		218,626
Fujibo Holdings Inc.		3,700		104,108
Goldwin Inc.		3,700		256,933
Gunze Ltd.		7,400		387,735
Japan Wool Textile Co. Ltd. (The)		18,500		153,325
Kurabo Industries Ltd.		74,000		205,546
Onward Holdings Co. Ltd.		37,000		245,588
Seiko Holdings Corp.		11,100		311,323
Seiren Co. Ltd.		14,800		252,662
TSI Holdings Co. Ltd.		22,200		147,553
Unitika Ltd.(b)		18,500		113,451
Wacoal Holdings Corp.		14,800		439,122
Yondoshi Holdings Inc.		7,400		157,096
				2,993,068
Thrifts & Mortgage Finance — 0.1%
Aruhi Corp.		7,400		184,591
Trading Companies & Distributors — 2.6%
Advan Co. Ltd.		3,700		33,902
Hanwa Co. Ltd.		11,100		375,389
Inaba Denki Sangyo Co. Ltd.		7,600		322,478
Inabata & Co. Ltd.		14,800		223,298
Iwatani Corp.		14,800		520,539
Japan Pulp & Paper Co. Ltd.		3,700		146,151
Kamei Corp.		7,400		92,296
Kanamoto Co. Ltd.		11,100		346,359
Kanematsu Corp.		29,600		440,189
MonotaRO Co. Ltd.		22,200		1,263,309
Nagase & Co. Ltd.		37,000		618,307
Nippon Steel & Sumikin Bussan Corp.		3,844		194,826
Nishio Rent All Co. Ltd.		7,400		231,907
Sojitz Corp.		455,100		1,588,346
Trusco Nakayama Corp.(a)		14,800		396,144
Wakita & Co. Ltd.		14,800		174,447
Yamazen Corp.		22,200		247,857
Yuasa Trading Co. Ltd.		7,400		258,935
				7,474,679
Transportation Infrastructure — 0.3%
Mitsubishi Logistics Corp.		18,500		424,606
Nissin Corp.		7,400		155,361
Sumitomo Warehouse Co. Ltd. (The)		37,000		230,906
				810,873
Total Common Stocks — 99.6% (Cost: $315,655,556)				283,796,843
Short-Term Investments
Money Market Funds — 6.3%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(c)(d)(e)		17,897,350		17,902,719

32 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Money Market Funds (continued)
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		55,060	$	55,060
				17,957,779
Total Short-Term Investments — 6.3% (Cost: $17,953,416)				17,957,779
Total Investments in Securities — 105.9% (Cost: $333,608,972)				301,754,622
Other Assets, Less Liabilities — (5.9)%				(16,842,264	)
Net Assets — 100.0%			$	284,912,358

^(a)  All or a portion of this security is on loan.

^(b)  Non-income producing security.

^(c)  Affiliate of the Fund.

^(d)  Annualized 7-day yield as of period-end.

^(e)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	9,394,924	8,502,426		17,897,350	$	17,902,719	$	458,638	(b)	$	(1,519	)	$	3,134
BlackRock Cash Funds: Treasury, SL Agency Shares	78,081	(23,021	)	55,060		55,060		3,496			—			—
					$	17,957,779	$	462,134		$	(1,519	)	$	3,134

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)	Value/ Unrealized Appreciation (Depreciation)
Long Contracts
TOPIX Index		7		09/13/18	$  1,094	$	(1,805	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	1,805

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

S C H E D U L E    O F    I N V E S T M E N T S 33

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Japan Small-Cap ETF

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:    

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	191,006
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(1,805)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	1,541,707

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.    

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	283,796,843		$	—	$	—	$	283,796,843
Money Market Funds		17,957,779			—		—		17,957,779
	$	301,754,622		$	—	$	—	$	301,754,622
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(1,805	)	$	—	$	—	$	(1,805)

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

See notes to financial statements.

34 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Malaysia ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Airlines — 1.0%
AirAsia Group Bhd		6,536,600	$	5,471,689
Automobiles — 0.5%
UMW Holdings Bhd(a)		1,770,700		2,559,425
Banks — 32.8%
Alliance Bank Malaysia Bhd		4,344,200		4,365,871
AMMB Holdings Bhd		7,168,337		7,151,766
CIMB Group Holdings Bhd		20,168,512		29,888,366
Hong Leong Bank Bhd		2,809,040		14,053,744
Hong Leong Financial Group Bhd		992,000		4,736,109
Malayan Banking Bhd		16,488,881		39,963,318
Public Bank Bhd(a)		12,555,180		76,745,619
RHB Bank Bhd(a)		4,341,002		5,704,200
RHB Bank Bhd, New(b)(c)		1,621,200		4
				182,608,997
Beverages — 0.9%
Fraser & Neave Holdings Bhd		555,700		5,138,484
Chemicals — 4.3%
Petronas Chemicals Group Bhd(a)		10,356,500		23,840,489
Construction & Engineering — 2.4%
Gamuda Bhd		8,498,400		7,651,558
IJM Corp. Bhd		12,513,680		5,694,265
				13,345,823
Diversified Telecommunication Services — 0.7%
Telekom Malaysia Bhd(a)		4,863,500		3,917,310
Electric Utilities — 9.2%
Tenaga Nasional Bhd		13,461,612		51,363,445
Energy Equipment & Services — 2.4%
Dialog Group Bhd		15,809,554		13,387,820
Food Products — 10.3%
FGV Holdings Bhd		7,100,800		2,609,127
Genting Plantations Bhd		1,043,900		2,395,420
IOI Corp. Bhd(a)		8,140,430		8,953,582
Kuala Lumpur Kepong Bhd(a)		1,842,200		11,054,545
Nestle Malaysia Bhd(a)		253,200		9,057,160
PPB Group Bhd		2,450,119		10,016,303
Sime Darby Plantation Bhd		10,293,055		13,425,179
				57,511,316
Gas Utilities — 2.4%
Petronas Gas Bhd		2,991,800		13,613,982
Health Care Equipment &Supplies — 3.2%
Hartalega Holdings Bhd		5,707,100		9,860,180
Top Glove Corp. Bhd(a)		3,032,300		8,219,935
				18,080,115
Health Care Providers &Services — 2.6%
IHH Healthcare Bhd(a)		10,667,900		14,485,188
Hotels, Restaurants & Leisure — 6.4%
Genting Bhd		9,172,100		19,239,202
Genting Malaysia Bhd(a)		12,826,000		16,291,938
				35,531,140
Industrial Conglomerates — 2.3%
HAP Seng Consolidated Bhd(a)		2,698,500		6,454,862

Security	Shares		Value
Industrial Conglomerates (continued)
Sime Darby Bhd		10,294,255	$	6,387,724
				12,842,586
IT Services — 0.6%
My EG Services Bhd(a)		8,571,900		3,107,953
Marine — 1.3%
MISC Bhd		4,840,820		6,985,293
Media — 0.4%
Astro Malaysia Holdings Bhd		5,639,300		2,387,731
Metals & Mining — 1.3%
Press Metal Aluminium Holdings Bhd(a)		5,835,300		7,071,370
Multi-Utilities — 0.8%
YTL Corp. Bhd		14,126,062		4,571,764
Oil, Gas &Consumable Fuels — 1.0%
Petronas Dagangan Bhd		860,600		5,696,148
Real Estate Management & Development — 2.0%
IOI Properties Group Bhd		7,147,525		3,043,720
Sime Darby Property Bhd		13,224,355		4,054,675
SP Setia Bhd Group		6,648,200		4,254,719
				11,353,114
Tobacco — 0.9%
British American Tobacco Malaysia Bhd		616,200		5,077,146
Transportation Infrastructure — 2.2%
Malaysia Airports Holdings Bhd		3,369,100		7,665,430
Westports Holdings Bhd		5,232,000		4,736,109
				12,401,539
Wireless Telecommunication Services — 7.8%
Axiata Group Bhd(a)		11,712,700		13,680,730
DiGi.Com Bhd(a)		13,429,900		15,392,342
Maxis Bhd(a)		10,104,100		14,211,388
				43,284,460
Total Common Stocks — 99.7% (Cost: $387,638,082)				555,634,327
Short-Term Investments
Money Market Funds — 2.4%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		13,332,868		13,336,868
Total Short-Term Investments — 2.4% (Cost: $13,335,222)				13,336,868
Total Investments in Securities — 102.1% (Cost: $400,973,304)				568,971,195
Other Assets, Less Liabilities — (2.1)%				(11,751,136	)
Net Assets — 100.0%			$	557,220,059

^(a) All or a portion of this security is on loan.

^(b)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(c)  Non-income producing security.

^(d)  Affiliate of the Fund.

^(e) Annualized 7-day yield as of period-end.

^(f) All or a portion of this security was purchased with cash collateral received from loaned securities.

S C H E D U L E    O F    I N V E S T M E N T S 35

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Malaysia ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	12,721,787	611,081		13,332,868	$	13,336,868	$	427,845	(b)	$	(2,432	)	$	(988)
BlackRock Cash Funds: Treasury, SL Agency Shares	290,485	(290,485	)	—		—		9,178			—			—
					$	13,336,868	$	437,023		$	(2,432	)	$	(988)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	555,634,323	$	—	$	4	$	555,634,327
Money Market Funds		13,336,868		—		—		13,336,868
	$	568,971,191	$	—	$	4	$	568,971,195

See notes to financial statements.

36 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments   August 31, 2018 iShares^® MSCI Pacific ex Japan ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Australia — 57.4%
AGL Energy Ltd.		900,047	$	13,525,996
Alumina Ltd.		3,342,884		6,962,614
Amcor Ltd./Australia		1,591,667		16,460,643
AMP Ltd.		4,011,244		9,689,114
APA Group		1,624,248		11,746,565
Aristocrat Leisure Ltd.		788,409		18,011,908
ASX Ltd.		266,367		13,029,944
Aurizon Holdings Ltd.		2,760,113		8,383,680
AusNet Services		2,535,162		3,015,992
Australia & New Zealand Banking Group Ltd.		3,974,997		84,804,198
Bank of Queensland Ltd.		539,679		4,484,501
Bendigo & Adelaide Bank Ltd.		669,745		5,613,729
BGP Holdings PLC(a)		27,004,595		314
BHP Billiton Ltd.		4,410,570		105,930,769
BlueScope Steel Ltd.		763,530		9,558,323
Boral Ltd.		1,598,019		8,089,814
Brambles Ltd.		2,187,923		17,357,900
Caltex Australia Ltd.		358,884		7,840,854
Challenger Ltd./Australia		758,165		5,938,144
CIMIC Group Ltd.		134,948		4,809,453
Coca-Cola Amatil Ltd.		693,182		4,707,295
Cochlear Ltd.		78,605		12,268,184
Commonwealth Bank of Australia		2,414,458		124,394,763
Computershare Ltd.		629,707		8,752,869
Crown Resorts Ltd.		521,082		5,351,222
CSL Ltd.		621,136		102,108,942
Dexus		1,399,239		10,847,889
Domino’s Pizza Enterprises Ltd.(b)		83,574		3,269,844
Flight Centre Travel Group Ltd.		76,817		3,245,469
Fortescue Metals Group Ltd.		2,139,954		5,942,842
Goodman Group		2,228,160		17,242,041
GPT Group (The)		2,483,096		9,284,159
Harvey Norman Holdings Ltd.		749,667		1,951,774
Healthscope Ltd.		2,415,014		3,824,919
Incitec Pivot Ltd.		2,276,638		6,454,143
Insurance Australia Group Ltd.		3,259,251		18,196,742
James Hardie Industries PLC		606,717		9,288,927
LendLease Group		803,712		11,909,703
Macquarie Group Ltd.		444,207		41,569,826
Medibank Pvt Ltd.		3,795,323		8,344,126
Mirvac Group		5,057,702		8,888,286
National Australia Bank Ltd.		3,734,827		76,628,153
Newcrest Mining Ltd.		1,054,251		14,783,605
Oil Search Ltd.		1,890,786		12,252,054
Orica Ltd.		521,391		6,632,663
Origin Energy Ltd.(c)		2,411,415		13,864,289
QBE Insurance Group Ltd.		1,869,754		14,887,793
Ramsay Health Care Ltd.		195,152		7,861,162
REA Group Ltd.		73,045		4,814,048
Rio Tinto Ltd.		567,057		29,830,363
Santos Ltd.		2,428,975		11,909,987
Scentre Group		7,310,089		21,728,163
Seek Ltd.		455,249		7,374,890
Sonic Healthcare Ltd.		551,331		10,442,547
South32 Ltd.		7,110,428		17,895,075
Stockland		3,323,399		9,926,384
Suncorp Group Ltd.		1,784,908		19,995,202
Sydney Airport		1,507,256		7,859,245

Security	Shares		Value
Australia (continued)
Tabcorp Holdings Ltd.		2,627,550	$	9,121,174
Telstra Corp. Ltd.		5,717,796		12,818,845
TPG Telecom Ltd.(b)		508,682		3,178,474
Transurban Group		3,052,016		26,619,056
Treasury Wine Estates Ltd.		985,887		13,881,987
Vicinity Centres		4,495,975		9,006,627
Wesfarmers Ltd.		1,555,685		57,884,938
Westpac Banking Corp.		4,696,762		96,941,794
Woodside Petroleum Ltd.		1,284,375		34,247,077
Woolworths Group Ltd.		1,802,881		36,898,782
				1,362,382,797
Hong Kong — 29.6%
AIA Group Ltd.		16,579,214		143,002,559
ASM Pacific Technology Ltd.		423,500		4,467,607
Bank of East Asia Ltd. (The)		1,722,120		6,373,834
BOC Hong Kong Holdings Ltd.		5,052,000		24,652,066
CK Asset Holdings Ltd.		3,526,232		25,136,348
CK Hutchison Holdings Ltd.		3,698,232		42,618,085
CK Infrastructure Holdings Ltd.		921,708		6,740,567
CLP Holdings Ltd.		2,244,000		26,374,269
Dairy Farm International Holdings Ltd.		477,500		4,426,425
Galaxy Entertainment Group Ltd.		3,268,000		24,190,753
Hang Lung Group Ltd.		1,231,000		3,450,420
Hang Lung Properties Ltd.		2,761,736		5,453,873
Hang Seng Bank Ltd.		1,044,500		28,318,567
Henderson Land Development Co. Ltd.		1,806,402		9,551,107
HK Electric Investments & HK Electric Investments Ltd.		3,749,000		3,787,737
HKT Trust & HKT Ltd.		5,244,338		6,775,164
Hong Kong & China Gas Co. Ltd.		12,610,060		25,962,691
Hong Kong Exchanges & Clearing Ltd.		1,617,500		46,038,235
Hongkong Land Holdings Ltd.		1,634,000		11,307,280
Hysan Development Co. Ltd.		860,830		4,414,428
Jardine Matheson Holdings Ltd.		302,700		19,106,424
Jardine Strategic Holdings Ltd.		302,900		10,995,270
Kerry Properties Ltd.		905,500		3,432,153
Li & Fung Ltd.		8,257,200		2,346,005
Link REIT		2,953,086		29,422,126
Melco Resorts & Entertainment Ltd., ADR		338,792		8,090,352
MGM China Holdings Ltd.(b)		1,310,800		2,471,664
Minth Group Ltd.(b)		1,032,000		4,227,191
MTR Corp. Ltd.		2,064,286		10,638,480
New World Development Co. Ltd.		8,410,921		11,230,421
NWS Holdings Ltd.		2,153,000		3,834,797
PCCW Ltd.		5,808,867		3,086,162
Power Assets Holdings Ltd.		1,894,500		13,287,496
Sands China Ltd.		3,302,400		16,114,605
Shangri-La Asia Ltd.		1,745,000		2,690,122
Sino Land Co. Ltd.		4,408,800		7,470,733
SJM Holdings Ltd.		2,752,000		3,113,527
Sun Hung Kai Properties Ltd.		2,179,500		32,349,979
Swire Pacific Ltd., Class A		688,000		7,779,434
Swire Properties Ltd.		1,612,400		6,337,517
Techtronic Industries Co. Ltd.		1,892,207		11,571,804
WH Group Ltd.(d)		12,024,500		9,069,429
Wharf Holdings Ltd. (The)		1,664,600		4,750,607
Wharf Real Estate Investment Co. Ltd.		1,663,600		11,032,168
Wheelock & Co. Ltd.		1,118,000		7,015,187
Wynn Macau Ltd.		2,154,000		5,996,369

S C H E D U L E    O F    I N V E S T M E N T S 37

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Pacific ex Japan ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Hong Kong (continued)
Yue Yuen Industrial Holdings Ltd.		1,032,000	$	2,859,764
				703,361,801
New Zealand — 1.8%
a2 Milk Co. Ltd.(b)(c)		1,007,293		8,434,437
Auckland International Airport Ltd.		1,305,782		6,190,331
Fisher & Paykel Healthcare Corp. Ltd.		786,967		8,558,081
Fletcher Building Ltd.		1,166,179		4,921,112
Meridian Energy Ltd.		1,725,143		3,708,609
Ryman Healthcare Ltd.		552,132		5,161,725
Spark New Zealand Ltd.		2,517,663		6,665,173
				43,639,468
Singapore — 10.4%
Ascendas REIT		3,456,125		6,911,998
CapitaLand Commercial Trust		3,499,393		4,520,949
CapitaLand Ltd.		3,525,400		8,826,044
CapitaLand Mall Trust		3,422,400		5,345,743
City Developments Ltd.		571,100		3,868,332
ComfortDelGro Corp. Ltd.		2,998,200		5,011,407
DBS Group Holdings Ltd.		2,455,000		44,708,040
Genting Singapore Ltd.		8,311,800		6,491,461
Golden Agri-Resources Ltd.		8,767,787		1,823,889
Jardine Cycle & Carriage Ltd.		137,600		3,258,088
Keppel Corp. Ltd.		2,000,000		9,532,499
Oversea-Chinese Banking Corp. Ltd.(b)		4,309,324		35,542,762
SATS Ltd.		929,800		3,440,813
Sembcorp Industries Ltd.		1,358,840		2,707,663
Singapore Airlines Ltd.		739,100		5,286,800
Singapore Exchange Ltd.		1,118,000		6,046,772
Singapore Press Holdings Ltd.(b)		2,219,917		4,536,891
Singapore Technologies Engineering Ltd.		2,154,000		5,251,166
Singapore Telecommunications Ltd.		11,214,428		26,438,891
Suntec REIT		2,953,700		4,031,545
United Overseas Bank Ltd.		1,829,700		36,138,595
UOL Group Ltd.		696,900		3,514,893

Security	Shares		Value
Singapore (continued)
Venture Corp. Ltd.		378,400	$	5,001,879
Wilmar International Ltd.		2,637,700		6,160,826
Yangzijiang Shipbuilding Holdings Ltd.		3,301,800		2,578,684
				246,976,630
Total Common Stocks — 99.2%
(Cost: $2,387,697,367)				2,356,360,696
Short-Term Investments
Money Market Funds — 0.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(e)(f)(g)		19,716,683		19,722,598
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(e)(f)		1,387,961		1,387,961
				21,110,559
Total Short-Term Investments — 0.9%
(Cost: $21,106,641)				21,110,559
Total Investments in Securities — 100.1%
(Cost: $2,408,804,008)				2,377,471,255
Other Assets, Less Liabilities — (0.1)%				(2,637,695	)
Net Assets — 100.0%			$	2,374,833,560

^(a)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(b)  All or a portion of this security is on loan.

^(c)  Non-income producing security.

^(d)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(e)  Affiliate of the Fund.

^(f)  Annualized 7-day yield as of period-end.

^(g)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	44,795,138	(25,078,455	)	19,716,683	$	19,722,598	$	461,073	(b)	$	(7,656	)	$	(537	)
BlackRock Cash Funds: Treasury, SL Agency Shares	800,222	587,739		1,387,961		1,387,961		34,434			—			—
					$	21,110,559	$	495,507		$	(7,656	)	$	(537	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

38 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Pacific ex Japan ETF

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)	Value/ Unrealized Appreciation (Depreciation)
Long Contracts
ASX SPI 200 Index		104		09/20/18	$ 11,854	$	130,999
Hang Seng Index		21		09/27/18	3,714		(61,387	)
MSCI Singapore Index		96		09/27/18	2,545		(16,321	)
						$	53,291

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	130,999
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	77,708

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	192,440
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	53,291

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

Futures contracts:
Average notional value of contracts — long	$	16,243,971

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

S C H E D U L E    O F    I N V E S T M E N T S 39

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Pacific ex Japan ETF

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	2,329,741,326		$	26,619,056	$	314	$	2,356,360,696
Money Market Funds		21,110,559			—		—		21,110,559
	$	2,350,851,885		$	26,619,056	$	314	$	2,377,471,255
Derivative financial instruments(a)
Assets
Futures Contracts	$	130,999		$	—	$	—	$	130,999
Liabilities
Futures Contracts		(77,708	)		—		—		(77,708	)
	$	53,291		$	—	$	—	$	53,291

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

The Fund had transfers from Level 1 to Level 2 during the year ended August 31, 2018 in the amount of $ 35,900,450, resulting from a temporary suspension of trading.

See notes to financial statements.

40 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments August 31, 2018 iShares^® MSCI Singapore ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 2.7%
Singapore Technologies Engineering Ltd.	6,463,800	$	15,757,886
Airlines — 2.7%
Singapore Airlines Ltd.	2,235,967		15,993,925
Banks — 44.8%
DBS Group Holdings Ltd.	5,517,400		100,477,450
Oversea-Chinese Banking Corp. Ltd.(a)	9,554,350		78,803,076
United Overseas Bank Ltd.	4,065,600		80,300,088
			259,580,614
Capital Markets — 3.0%
Singapore Exchange Ltd.	3,256,200		17,611,359
Distributors — 1.9%
Jardine Cycle & Carriage Ltd.	462,644		10,954,470
Diversified Telecommunication Services — 4.6%
Singapore Telecommunications Ltd.	11,226,668		26,467,748
Electronic Equipment, Instruments & Components — 2.6%
Venture Corp. Ltd.	1,139,800		15,066,441
Equity Real Estate Investment Trusts (REITs) — 7.9%
Ascendas REIT	9,817,281		19,633,846
CapitaLand Commercial Trust	3,790,883		4,897,531
CapitaLand Mall Trust	4,325,400		6,756,218
Suntec REIT	10,449,000		14,261,983
			45,549,578
Food Products — 4.5%
Golden Agri-Resources Ltd.	38,442,628		7,996,897
Wilmar International Ltd.	7,678,800		17,935,229
			25,932,126
Hotels, Restaurants & Leisure — 3.2%
Genting Singapore Ltd.	24,008,442		18,750,434
Industrial Conglomerates — 6.1%
Keppel Corp. Ltd.	5,336,800		25,436,520
Sembcorp Industries Ltd.	4,860,000		9,684,172
			35,120,692

Security	Shares		Value
Machinery — 1.6%
Yangzijiang Shipbuilding Holdings Ltd	12,052,800	$	9,413,157
Media — 2.3%
Singapore Press Holdings Ltd.(a)	6,464,800		13,212,248
Real Estate Management & Development — 6.7%
CapitaLand Ltd.	5,880,600		14,722,425
City Developments Ltd.	1,842,700		12,481,483
UOL Group Ltd.	2,332,800		11,765,737
			38,969,645
Road & Rail — 2.7%
ComfortDelGro Corp. Ltd.	9,234,000		15,434,371
Transportation Infrastructure — 2.0%
SATS Ltd.	3,159,000		11,690,179
Total Common Stocks — 99.3% (Cost: $619,013,676)			575,504,873
Short-Term Investments
Money Market Funds — 1.1%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(b)(c)(d)	6,147,480		6,149,324
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(b)(c)	165,742		165,742
			6,315,066
Total Short-Term Investments — 1.1% (Cost: $6,313,281)			6,315,066
Total Investments in Securities — 100.4% (Cost: $625,326,957)			581,819,939
Other Assets, Less Liabilities — (0.4)%			(2,527,532	)
Net Assets — 100.0%		$	579,292,407

^(a)  All or a portion of this security is on loan.

^(b)  Affiliate of the Fund.

^(c)  Annualized 7-day yield as of period-end.

^(d)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized    Gain (Loss)(a)	Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		17,309,109		(11,161,629	)		6,147,480	$	6,149,324	$	161,051	(b)	$        3,401	$	(2,392	)
BlackRock Cash Funds: Treasury, SL Agency Shares		226,142		(60,400	)		165,742		165,742		12,671		—		—
								$	6,315,066	$	173,722		$        3,401	$	(2,392	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

S C H E D U L E    O F    I N V E S T M E N T S 41

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Singapore ETF

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Singapore Index		132		09/27/18	$	3,499	$	(24,904	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	24,904

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(512,973	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(53,860	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	3,964,687

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.    

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	575,504,873		$	—	$	—	$	575,504,873
Money Market Funds		6,315,066			—		—		6,315,066
	$	581,819,939		$	—	$	—	$	581,819,939
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(24,904	)	$	—	$	—	$	(24,904	)

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

See notes to financial statements.

42 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments August 31, 2018 iShares^® MSCI Taiwan ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Airlines — 0.5%
China Airlines Ltd.	30,154,761	$	9,238,362
Eva Airways Corp.	19,386,278		9,846,197
			19,084,559
Auto Components — 0.6%
Cheng Shin Rubber Industry Co. Ltd.(a)	14,811,670		22,616,550
Banks — 11.0%
Chang Hwa Commercial Bank Ltd.	38,772,848		24,110,740
China Development Financial Holding Corp.	99,084,508		35,807,848
CTBC Financial Holding Co. Ltd.	119,440,325		83,995,150
E.Sun Financial Holding Co. Ltd.	68,928,217		50,717,164
First Financial Holding Co. Ltd.	69,609,132		46,572,283
Hua Nan Financial Holdings Co. Ltd.	56,271,529		32,976,966
Mega Financial Holding Co. Ltd.(a)	74,313,271		62,421,696
SinoPac Financial Holdings Co. Ltd.	79,592,724		29,152,471
Taishin Financial Holding Co. Ltd.	71,560,592		33,665,979
Taiwan Business Bank	37,695,697		13,622,733
Taiwan Cooperative Financial Holding Co. Ltd.	61,389,554		36,475,968
			449,518,998
Biotechnology — 0.3%
TaiMed Biologics Inc.(b)	1,669,000		12,416,295
Capital Markets — 0.9%
Yuanta Financial Holding Co. Ltd.	74,313,248		37,622,367
Chemicals — 7.3%
Formosa Chemicals & Fibre Corp.	23,694,610		94,886,441
Formosa Plastics Corp.	29,079,518		106,509,711
Nan Ya Plastics Corp.	34,389,938		95,617,799
			297,013,951
Construction Materials — 1.7%
Asia Cement Corp.	18,309,136		24,946,682
Taiwan Cement Corp.	32,254,554		44,472,745
			69,419,427
Diversified Financial Services — 2.6%
Chailease Holding Co. Ltd.	8,784,955		29,888,582
Fubon Financial Holding Co. Ltd.	45,234,515		74,961,316
			104,849,898
Diversified Telecommunication Services — 2.2%
Chunghwa Telecom Co. Ltd.	25,848,648		91,309,729
Electrical Equipment — 0.3%
Teco Electric and Machinery Co. Ltd.	18,309,092		13,412,163
Ya Hsin Industrial Co. Ltd.(b)(c)	6,845,461		2
			13,412,165
Electronic Equipment, Instruments & Components — 15.5%
AU Optronics Corp.(a)	65,697,830		28,448,027
Delta Electronics Inc.(a)	14,001,180		56,068,538
Foxconn Technology Co. Ltd.(a)	7,539,499		19,146,375
General Interface Solution Holding Ltd.(a)	1,476,000		9,154,420
Hon Hai Precision Industry Co. Ltd.	106,623,003		279,444,953
Innolux Corp.(a)	67,851,873		25,293,959
Largan Precision Co. Ltd.(a)	681,794		104,438,899
Pacific Electric Wire & Cable Co. Ltd.(b)(c)	197		—
Synnex Technology International Corp.	11,847,364		15,853,057
Walsin Technology Corp.	2,584,000		26,458,343
WPG Holdings Ltd.	14,001,744		17,732,959
Yageo Corp.(a)	1,727,125		39,249,007

Security	Shares		Value
Electronic Equipment, Instruments & Components (continued)
Zhen Ding Technology Holding Ltd.(a)	4,308,072	$	11,024,400
			632,312,937
Food & Staples Retailing — 1.2%
President Chain Store Corp.	4,308,215		46,988,508
Food Products — 2.2%
Standard Foods Corp.	4,308,056		7,293,469
Uni-President Enterprises Corp.	32,310,189		81,630,170
			88,923,639
Household Durables — 0.3%
Nien Made Enterprise Co. Ltd.	1,500,000		11,622,986
Industrial Conglomerates — 0.7%
Far Eastern New Century Corp.	24,771,843		28,832,603
Insurance — 3.5%
Cathay Financial Holding Co. Ltd.	54,927,483		94,064,321
China Life Insurance Co. Ltd./Taiwan	21,540,605		21,424,890
Shin Kong Financial Holding Co. Ltd.(a)	64,620,205		25,561,956
			141,051,167
Leisure Products — 0.3%
Giant Manufacturing Co. Ltd.	3,231,590		13,940,605
Machinery — 0.6%
Airtac International Group(a)	1,077,000		10,343,969
Hiwin Technologies Corp.(a)	1,764,798		15,915,645
			26,259,614
Marine — 0.2%
Evergreen Marine Corp. Taiwan Ltd.	23,694,682		10,067,251
Metals & Mining — 1.7%
China Steel Corp.	86,160,977		70,550,173
Oil, Gas & Consumable Fuels — 1.0%
Formosa Petrochemical Corp.	9,693,950		39,766,814
Real Estate Management & Development — 0.5%
Highwealth Construction Corp.	7,539,790		12,249,244
Ruentex Development Co. Ltd.	9,020,127		10,161,041
			22,410,285
Semiconductors & Semiconductor Equipment — 31.7%
ASE Technology Holding Co. Ltd.	23,725,432		58,164,578
Globalwafers Co. Ltd.(a)	1,622,000		20,700,765
Macronix International(a)	15,078,500		16,200,244
MediaTek Inc.	9,858,175		80,720,528
Nanya Technology Corp.(a)	8,616,000		19,551,854
Novatek Microelectronics Corp.	4,308,544		21,111,375
Phison Electronics Corp.	1,077,698		8,912,105
Powertech Technology Inc.	6,462,036		19,166,254
Realtek Semiconductor Corp.	4,308,063		20,898,629
Taiwan Semiconductor Manufacturing Co. Ltd.	112,008,882		933,559,296
United Microelectronics Corp.	85,083,501		48,061,167
Vanguard International Semiconductor Corp.(a)	7,539,000		18,286,033
Win Semiconductors Corp.	2,484,000		13,465,277
Winbond Electronics Corp.(a)	26,925,000		15,121,480
			1,293,919,585
Specialty Retail — 0.5%
Hotai Motor Co. Ltd.	2,154,000		18,654,208
Technology Hardware, Storage & Peripherals — 7.8%
Acer Inc.(a)	23,694,737		19,825,971

S C H E D U L E    O F    I N V E S T M E N T S 43

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Taiwan ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Technology Hardware, Storage & Peripherals (continued)
Advantech Co. Ltd.(a)		2,769,614	$	18,845,819
Asustek Computer Inc.(a)		4,934,857		42,014,166
Catcher Technology Co. Ltd.		4,485,743		54,985,585
Chicony Electronics Co. Ltd.		5,432,405		11,425,472
Compal Electronics Inc.		33,387,554		20,924,969
HTC Corp.(b)		7,539,884		10,948,358
Inventec Corp.		20,463,868		18,355,187
Lite-On Technology Corp.		17,221,071		20,716,867
Micro-Star International Co. Ltd.(a)		5,385,000		18,671,740
Pegatron Corp.(a)		15,025,037		32,383,443
Quanta Computer Inc.(a)		19,386,240		33,325,524
Wistron Corp.		24,641,923		17,449,514
				319,872,615
Textiles, Apparel & Luxury Goods — 1.9%
Eclat Textile Co. Ltd.		1,469,601		17,846,693
Feng TAY Enterprise Co. Ltd.		3,231,476		19,568,762
Formosa Taffeta Co. Ltd.		7,539,515		8,775,441
Pou Chen Corp.		17,232,103		18,990,939
Ruentex Industries Ltd.		5,385,262		11,045,792
				76,227,627
Transportation Infrastructure — 0.3%
Taiwan High Speed Rail Corp.		16,110,000		13,584,535
Wireless Telecommunication Services — 1.7%
Far EasTone Telecommunications Co. Ltd.		11,847,259		28,234,392
Taiwan Mobile Co. Ltd.		11,847,609		41,272,804
				69,507,196
Total Common Stocks — 99.0% (Cost: $2,152,720,354)				4,041,756,287

Security	Shares		Value
Short-Term Investments
Money Market Funds — 4.4%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		146,508,163	$	146,552,115
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		33,708,447		33,708,447
				180,260,562
Total Short-Term Investments — 4.4% (Cost: $180,220,378)				180,260,562
Total Investments in Securities — 103.4% (Cost: $2,332,940,732)				4,222,016,849
Other Assets, Less Liabilities — (3.4)%				(139,125,452	)
Net Assets — 100.0%			$	4,082,891,397

^(a)  All or a portion of this security is on loan.

^(b)  Non-income producing security.

^(c)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		176,501,828	(29,993,665	)		146,508,163	$	146,552,115	$	2,914,397	(b)	$	(1,512	)	$	8,439
BlackRock Cash Funds: Treasury, SL Agency Shares		22,826,941	10,881,506			33,708,447		33,708,447		110,640			—			—
							$	180,260,562	$	3,025,037		$	(1,512	)	$	8,439

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Taiwan Index		957		09/27/18	$	39,476	$	351,240

44 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Taiwan ETF

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	351,240

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	4,603,030
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	228,652

Average Quarterly Balances of Outstanding Derivative Financial Instruments    

Futures contracts:
Average notional value of contracts — long	$	14,718,038

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.    

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	4,041,756,285	$	—	$	2	$	4,041,756,287
Money Market Funds		180,260,562		—		—		180,260,562
	$	4,222,016,847	$	—	$	2	$	4,222,016,849
Derivative financial instruments(a)
Assets
Futures Contracts	$	351,240	$	—	$	—	$	351,240

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

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 45

Schedule of Investments August 31, 2018 iShares^® MSCI Thailand ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Airlines — 0.4%
Bangkok Airways PCL, NVDR(a)		2,148,100	$	853,202
Thai Airways International PCL, NVDR(b)		1,926,966		771,257
				1,624,459
Auto Components — 0.2%
Sri Trang Agro-Industry PCL, NVDR(a)(b)		2,253,745		867,620
Banks — 17.2%
Bangkok Bank PCL Foreign		723,500		4,597,861
Kasikornbank PCL, NVDR		1,888,200		12,172,631
Kasikornbank PCL Foreign		3,403,100		22,042,689
Kiatnakin Bank PCL, NVDR		1,086,673		2,564,787
Krung Thai Bank PCL, NVDR		10,190,500		6,040,199
Siam Commercial Bank PCL (The), NVDR		4,329,600		19,577,782
Thanachart Capital PCL, NVDR		1,724,100		2,831,359
Tisco Financial Group PCL, NVDR		934,110		2,340,269
TMB Bank PCL, NVDR		38,329,000		2,576,346
				74,743,923
Building Products — 0.2%
Dynasty Ceramic PCL, NVDR(a)		6,810,440		545,168
Vanachai Group PCL, NVDR(a)		1,206,100		283,745
				828,913
Chemicals — 6.0%
Eastern Polymer Group PCL, NVDR(a)		2,874,000		799,065
Global Green Chemicals PCL, NVDR(a)		585,600		203,967
Indorama Ventures PCL, NVDR		4,660,310		8,543,190
PTT Global Chemical PCL, NVDR		6,368,107		15,905,675
Vinythai PCL, NVDR(a)		721,500		548,896
				26,000,793
Construction & Engineering — 0.8%
CH Karnchang PCL, NVDR(a)		1,244,700		1,007,777
Italian-Thai Development PCL, NVDR(a)(b)		5,126,448		441,692
Sino-Thai Engineering & Construction PCL, NVDR(a)(b)		2,185,828		1,502,632
Unique Engineering & Construction PCL, NVDR(a)		1,591,600		627,303
				3,579,404
Construction Materials — 3.6%
Siam Cement PCL (The), NVDR		1,084,300		14,974,140
TPI Polene PCL, NVDR(a)		11,028,900		636,866
				15,611,006
Consumer Finance — 1.2%
Muangthai Capital PCL, NVDR(a)		1,855,600		2,366,981
Ratchthani Leasing PCL, NVDR(a)		3,196,549		781,314
Srisawad Corp. PCL, NVDR(a)		1,640,118		2,117,170
				5,265,465
Containers & Packaging — 0.1%
Polyplex Thailand PCL, NVDR(a)		966,200		484,133
Diversified Telecommunication Services — 1.8%
Jasmine International PCL, NVDR(a)		8,897,468		1,454,368
Thaicom PCL, NVDR(a)		1,350,700		416,806
True Corp. PCL, NVDR(a)		29,196,518		5,976,678
				7,847,852
Electrical Equipment — 0.1%
Gunkul Engineering PCL, NVDR(a)		6,669,768		590,966
Electronic Equipment, Instruments &Components — 1.9%
Cal-Comp Electronics Thailand PCL, NVDR		5,589,812		339,863
Delta Electronics Thailand PCL, NVDR		1,454,944		3,100,591

Security	Shares		Value
Electronic Equipment, Instruments &Components (continued)
Hana Microelectronics PCL, NVDR(a)		1,643,200	$	1,932,881
KCE Electronics PCL, NVDR(a)		1,540,000		2,129,087
SVI PCL, NVDR(a)		4,152,215		735,803
				8,238,225
Food &Staples Retailing — 8.2%
Berli Jucker PCL, NVDR		3,490,000		6,184,540
CP ALL PCL, NVDR		14,302,200		29,495,830
				35,680,370
Food Products — 3.2%
Charoen Pokphand Foods PCL, NVDR		9,632,400		7,578,194
GFPT PCL, NVDR(a)		1,503,100		679,679
Ichitan Group PCL, NVDR		1,421,000		192,766
Khon Kaen Sugar Industry PCL, NVDR(a)		4,660,578		469,903
Taokaenoi Food & Marketing PCL, NVDR(a)		1,037,900		497,862
Thai Union Group PCL, NVDR		5,566,100		2,976,069
Thai Vegetable Oil PCL, NVDR		1,165,853		1,050,799
Thaifoods Group PCL, NVDR(a)		3,842,400		500,111
				13,945,383
Health Care Providers & Services — 4.5%
Bangkok Chain Hospital PCL, NVDR		3,574,025		2,085,667
Bangkok Dusit Medical Services PCL, NVDR		11,294,800		9,058,616
Bumrungrad Hospital PCL, NVDR		1,041,276		5,774,262
Chularat Hospital PCL, NVDR(a)		14,538,100		1,110,457
Thonburi Healthcare Group PCL, NVDR(a)		687,500		677,418
Vibhavadi Medical Center PCL, NVDR		15,481,100		1,106,806
				19,813,226
Hotels, Restaurants & Leisure — 2.0%
Erawan Group PCL (The), NVDR		3,636,400		899,934
Minor International PCL, NVDR		6,320,010		7,627,265
				8,527,199
Independent Power and Renewable Electricity Producers — 2.3%
BCPG PCL, NVDR(a)		1,757,600		1,036,410
CK Power PCL, NVDR(a)		5,543,560		718,139
Electricity Generating PCL, NVDR		384,200		2,652,893
Glow Energy PCL, NVDR		1,492,600		4,286,722
Inter Far East Energy Corp., NVDR(b)(c)		3,184,500		1
SPCG PCL, NVDR(a)		1,110,700		705,853
Super Energy Corp. PCL, NVDR(a)(b)		32,122,850		736,087
				10,136,105
Industrial Conglomerates — 0.1%
Thoresen Thai Agencies PCL, NVDR		2,690,089		591,770
Marine — 0.1%
Precious Shipping PCL, NVDR(a)(b)		1,666,400		610,962
Media — 1.1%
BEC World PCL, NVDR(a)		2,875,800		667,769
Major Cineplex Group PCL, NVDR(a)		1,296,600		986,414
Mono Technology PCL, NVDR(a)		2,926,200		193,113
Plan B Media PCL, NVDR(a)		3,195,200		663,836
RS PCL, NVDR(a)		1,335,700		738,655
VGI Global Media PCL, NVDR(a)		5,130,740		1,207,049
Workpoint Entertainment PCL, NVDR(a)		435,500		535,560
				4,992,396
Multiline Retail — 0.7%
Robinson PCL, NVDR(a)		1,457,600		2,905,848
Oil, Gas &Consumable Fuels — 21.3%
Bangchak Corp. PCL, NVDR		1,012,500		1,113,657

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Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Thailand ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Banpu PCL, NVDR		5,991,300	$	3,715,961
Energy Absolute PCL, NVDR(a)		3,590,400		4,250,779
Energy Earth PCL, NVDR(a)(b)(c)		4,419,400		1
Esso Thailand PCL, NVDR		3,539,800		1,708,794
IRPC PCL, NVDR		29,195,600		6,199,494
Prima Marine PCL, NVDR(a)		1,463,500		357,715
PTT Exploration & Production PCL, NVDR		4,052,284		17,642,850
PTT PCL, NVDR		30,563,700		49,025,183
Siamgas & Petrochemicals PCL, NVDR		2,217,700		813,089
Thai Oil PCL, NVDR		3,140,800		8,084,705
				92,912,228
Personal Products — 0.0%
Do Day Dream PCL, NVDR(a)		149,600		201,112
Pharmaceuticals — 0.3%
Mega Lifesciences PCL, NVDR(a)		1,015,800		1,094,010
Real Estate Management & Development — 6.5%
Amata Corp. PCL, NVDR(a)		1,531,800		996,863
Ananda Development PCL, NVDR(a)		4,393,300		655,035
AP Thailand PCL, NVDR(a)		2,834,286		814,002
Bangkok Land PCL, NVDR		29,630,800		1,674,824
Central Pattana PCL, NVDR		3,926,700		9,897,731
Golden Land Property Development PCL, NVDR		1,457,000		454,061
Land & Houses PCL, NVDR		8,085,100		2,791,373
LPN Development PCL, NVDR		1,739,247		526,078
Origin Property PCL, NVDR(a)		1,221,100		697,665
Platinum Group PCL (The), NVDR		2,539,700		609,125
Quality Houses PCL, NVDR		12,608,632		1,332,902
Sansiri PCL, NVDR		16,383,137		805,892
SC Asset Corp. PCL, NVDR(a)		4,486,904		485,293
Siam Future Development PCL, NVDR(a)		2,630,428		731,344
Singha Estate PCL, NVDR(a)(b)		7,198,100		725,748
Supalai PCL, NVDR(a)		1,766,400		1,306,046
U City PCL, NVDR(b)		817,293,700		749,123
Univentures PCL, NVDR(a)		1,968,200		502,123
WHA Corp. PCL, NVDR		20,469,140		2,514,083
				28,269,311
Road & Rail — 1.1%
BTS Group Holdings PCL, NVDR		17,041,300		4,816,133
Specialty Retail — 2.5%
Beauty Community PCL, NVDR(a)		5,498,200		1,898,248
Com7 PCL, NVDR(a)		1,094,400		641,994
Home Product Center PCL, NVDR		11,500,873		5,130,240
PTG Energy PCL, NVDR(a)		1,718,500		614,313
Siam Global House PCL, NVDR(a)		4,086,841		2,384,927
				10,669,722
Textiles, Apparel & Luxury Goods — 0.1%
MC Group PCL, NVDR(a)		1,101,800		440,989

Security	Shares		Value
Transportation Infrastructure — 7.2%
Airports of Thailand PCL, NVDR		12,444,800	$	25,380,092
Bangkok Aviation Fuel Services PCL, NVDR(a)		566,500		592,808
Bangkok Expressway & Metro PCL, NVDR		21,839,253		5,604,941
				31,577,841
Water Utilities — 0.5%
TTW PCL, NVDR		4,088,866		1,549,097
WHA Utilities and Power PCL, NVDR(a)		3,965,300		726,911
				2,276,008
Wireless Telecommunication Services — 4.3%
Advanced Info Service PCL, NVDR		3,034,719		18,729,399
Total Common Stocks — 99.5% (Cost: $446,725,452)				433,872,771
Warrants
Media — 0.0%
VGI Global Media PCL, (Expires 08/14/19)(b)		1,015,468		—
Road & Rail — 0.0%
BTS Group Holdings PCL, (Expires 08/01/19)(b)		1,855,322		1
Total Warrants — 0.0% (Cost: $0)				1
Short-Term Investments
Money Market Funds — 5.1%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		21,003,656		21,009,957
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		1,195,576		1,195,576
				22,205,533
Total Short-Term Investments — 5.1% (Cost: $22,200,002)				22,205,533
Total Investments in Securities — 104.6% (Cost: $468,925,454)				456,078,305
Other Assets, Less Liabilities — (4.6)%				(20,236,569	)
Net Assets — 100.0%			$	435,841,736

^(a)  All or a portion of this security is on loan.

^(b)  Non-income producing security.

^(c)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

S C H E D U L E    O F    I N V E S T M E N T S 47

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Thailand ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity		Shares Held at 08/31/18	Value at 08/31/18		Income			Net Realized    Gain (Loss)(a)	Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		15,082,493		5,921,163	21,003,656	$	21,009,957	$	1,252,970	(b)	$896	$	1,006
BlackRock Cash Funds: Treasury, SL Agency Shares		1,168,228		27,348	1,195,576		1,195,576		13,903		—		—
						$	22,205,533	$	1,266,873		$896	$	1,006

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	433,872,769	$	—	$	2	$	433,872,771
Warrants		—		1		—		1
Money Market Funds		22,205,533		—		—		22,205,533
	$	456,078,302	$	1	$	2	$	456,078,305

See notes to financial statements.

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Statements of Assets and Liabilities

August 31, 2018

	iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF			iShares MSCI Malaysia ETF			iShares MSCI Pacific ex Japan ETF
ASSETS
Investments in securities, at value (including securities on loan)(a)
Unaffiliated(b)	$	2,715,922,931		$	283,796,843		$	555,634,327		$	2,356,360,696
Affiliated(c)		19,092,333			17,957,779			13,336,868			21,110,559
Cash pledged:
Futures contracts(d)		1,012,830			24,601			—			1,199,428
Foreign currency, at value(e)		4,762,103			282,331			5,024,364			6,501,483
Receivables:
Investments sold		1,924,914			2,117,983			751,433			1,074,601
Securities lending income — Affiliated		60,720			37,674			25,737			65,943
Capital shares sold		—			—			4,878,272			—
Dividends		8,617,805			705,118			906,825			14,620,427
Tax reclaims		—			3,671			—			—
Total assets		2,751,393,636			304,926,000			580,557,826			2,400,933,137
LIABILITIES
Bank overdraft		—			—			3,799,349			—
Collateral on securities loaned, at value		18,396,405			17,899,597			13,336,885			19,713,805
Payables:
Investments purchased		2,000,442			1,995,313			5,992,749			5,240,758
Variation margin on futures contracts		251,261			2,759			—			177,709
Investment advisory fees		1,124,074			115,973			208,784			967,305
Total liabilities		21,772,182			20,013,642			23,337,767			26,099,577
NET ASSETS	$	2,729,621,454		$	284,912,358		$	557,220,059		$	2,374,833,560
NET ASSETS CONSIST OF:
Paid-in capital	$	3,095,233,980		$	319,707,825		$	449,940,832		$	2,846,789,843
Undistributed (distributions in excess of) net investment income		10,599,938			322,056			(8,245,264	)		5,556,042
Accumulated net realized loss		(454,879,048	)		(3,261,653	)		(52,487,715	)		(446,148,416	)
Net unrealized appreciation (depreciation)		78,666,584			(31,855,870	)		168,012,206			(31,363,909	)
NET ASSETS	$	2,729,621,454		$	284,912,358		$	557,220,059		$	2,374,833,560
Shares outstanding		112,875,000			3,700,000			16,950,000			51,600,000
Net asset value	$	24.18		$	77.00		$	32.87		$	46.02
Shares authorized		375 million			500 million			300 million			1 billion
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a) Securities loaned, at value	$	17,539,214		$	16,862,545		$	12,583,520		$	18,753,104
(b) Investments, at cost — Unaffiliated	$	2,637,045,650		$	315,655,556		$	387,638,082		$	2,387,697,367
(c)  Investments, at cost — Affiliated	$	19,091,576		$	17,953,416		$	13,335,222		$	21,106,641
(d) Cash collateral pledged, at cost	$	1,012,717		$	24,427		$	—		$	1,207,945
(e) Foreign currency, at cost	$	4,762,136		$	282,288		$	5,024,556		$	6,517,188

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 49

Statements of Assets and Liabilities  (continued)

August 31, 2018

	iShares MSCI Singapore ETF			iShares MSCI Taiwan ETF			iShares MSCI Thailand ETF
ASSETS
Investments in securities, at value (including securities on loan)(a)
Unaffiliated(b)	$	575,504,873		$	4,041,756,287		$	433,872,772
Affiliated(c)		6,315,066			180,260,562			22,205,533
Cash		—			5,746			—
Cash pledged:
Futures contracts(d)		306,091			2,390,000			—
Foreign currency, at value(e)		4,275,636			206,528			316,626
Receivables:
Investments sold		18,597,198			62,599,161			1,537,613
Securities lending income — Affiliated		90,774			395,302			158,030
Capital shares sold		—			18,010,219			—
Dividends		1,514,000			26,556,539			1,055,018
Total assets		606,603,638			4,332,180,344			459,145,592
LIABILITIES
Collateral on securities loaned, at value		6,142,626			146,527,230			20,997,678
Payables:
Investments purchased		20,867,077			99,624,079			2,091,221
Variation margin on futures contracts		56,895			315,845			—
Investment advisory fees		244,633			2,007,223			214,957
Foreign taxes		—			814,570			—
Total liabilities		27,311,231			249,288,947			23,303,856
NET ASSETS	$	579,292,407		$	4,082,891,397		$	435,841,736
NET ASSETS CONSIST OF:
Paid-in capital	$	774,524,815		$	2,611,268,197		$	498,158,980
Undistributed (distributions in excess of) net investment income		(2,982,920	)		83,026,169			1,914,983
Accumulated net realized loss		(148,716,758	)		(500,781,698	)		(51,383,903	)
Net unrealized appreciation (depreciation)		(43,532,730	)		1,889,378,729			(12,848,324	)
NET ASSETS	$	579,292,407		$	4,082,891,397		$	435,841,736
Shares outstanding		24,300,000			107,700,000			4,800,000
Net asset value	$	23.84		$	37.91		$	90.80
Shares authorized		300 million			900 million			200 million
Par value	$	0.001		$	0.001		$	0.001
(a) Securities loaned, at value	$	5,838,995		$	138,942,827		$	19,470,946
(b) Investments, at cost — Unaffiliated	$	619,013,676		$	2,152,720,354		$	446,725,452
(c)  Investments, at cost — Affiliated	$	6,313,281		$	180,220,378		$	22,200,002
(d) Cash collateral pledged, at cost	$	305,820		$	2,390,000		$	—
(e) Foreign currency, at cost	$	4,288,190		$	206,539		$	316,916

See notes to financial statements.

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Statements of Operations

Year Ended August 31, 2018

	iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF			iShares MSCI Malaysia ETF			iShares MSCI Pacific ex Japan ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	77,039,906		$	6,069,246		$	16,236,550		$	116,670,759
Dividends — Affiliated		53,871			3,496			9,178			34,434
Securities lending income — Affiliated — net		601,444			458,638			427,845			461,073
Foreign taxes withheld		—			(598,555	)		—			(832,997	)
Total investment income		77,695,221			5,932,825			16,673,573			116,333,269
EXPENSES
Investment advisory fees		11,171,622			1,697,287			2,497,078			14,008,297
Proxy fees		186			14			41			321
Total expenses		11,171,808			1,697,301			2,497,119			14,008,618
Net investment income		66,523,413			4,235,524			14,176,454			102,324,651
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(41,582,498	)		(631,466	)		(6,420,080	)		(35,974,211	)
Investments — Affiliated		5,833			(1,519	)		(2,432	)		(7,656	)
In-kind redemptions — Unaffiliated		2,345,933			49,766,398			—			202,115,267
Futures contracts		(468,215	)		191,006			—			192,440
Foreign currency transactions		(2,263	)		(115,518	)		(946,111	)		(1,127,152	)
Net realized gain (loss)		(39,701,210	)		49,208,901			(7,368,623	)		165,198,688
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(32,347,243	)		(45,830,727	)		30,826,423			(145,308,780	)
Investments — Affiliated		(4,987	)		3,134			(988	)		(537	)
Futures contracts		(318,749	)		(1,805	)		—			53,291
Foreign currency translations		9,972			(2,383	)		10,008			(178,930	)
Net change in unrealized appreciation (depreciation)		(32,661,007	)		(45,831,781	)		30,835,443			(145,434,956	)
Net realized and unrealized gain (loss)		(72,362,217	)		3,377,120			23,466,820			19,763,732
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(5,838,804	)	$	7,612,644		$	37,643,274		$	122,088,383

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 51

Statement of Operations   (continued)

Year Ended August 31, 2018

	iShares MSCI Singapore ETF			iShares MSCI Taiwan ETF			iShares MSCI Thailand ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	30,949,387		$	154,725,568		$	12,426,269
Dividends — Affiliated		12,671			110,640			13,903
Interest — Unaffiliated		—			6,743			—
Securities lending income — Affiliated — net(a)		161,051			2,914,397			1,252,970
Foreign taxes withheld		(317,964	)		(30,501,879	)		(1,205,247	)
Other foreign taxes		—			(1,485,384	)		—
Total investment income		30,805,145			125,770,085			12,487,895
EXPENSES
Investment advisory fees		3,243,566			22,931,584			2,552,670
Proxy fees		58			373			47
Total expenses		3,243,624			22,931,957			2,552,717
Net investment income		27,561,521			102,838,128			9,935,178
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(29,617,085	)		43,270,364			(7,580,737	)
Investments — Affiliated		3,401			(1,512	)		896
In-kind redemptions — Unaffiliated		22,818,737			—			32,685,696
Futures contracts		(512,973	)		4,603,030			—
Foreign currency transactions		(112,428	)		(1,085,894	)		(91,660	)
Net realized gain (loss)		(7,420,348	)		46,785,988			25,014,195
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(29,103,484	)		11,634,042			2,588,269
Investments — Affiliated		(2,392	)		8,439			1,006
Futures contracts		(53,860	)		228,652			—
Foreign currency translations		(14,392	)		(108,665	)		(2,561	)
Net change in unrealized appreciation (depreciation)		(29,174,128	)		11,762,468			2,586,714
Net realized and unrealized gain (loss)		(36,594,476	)		58,548,456			27,600,909
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(9,032,955	)	$	161,386,584		$	37,536,087
(a) Net of securities lending income tax paid of	$	—		$	717,689		$	—

See notes to financial statements

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Statements of Changes in Net Assets

	iShares MSCI Hong Kong ETF						iShares MSCI Japan Small-Cap ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	66,523,413		$	54,584,827		$	4,235,524		$	2,245,390
Net realized gain (loss)		(39,701,210	)		(4,934,210	)		49,208,901			11,931,619
Net change in unrealized appreciation (depreciation)		(32,661,007	)		243,779,429			(45,831,781	)		19,303,879
Net increase (decrease) in net assets resulting from operations		(5,838,804	)		293,430,046			7,612,644			33,480,888
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(100,789,012	)		(47,903,550	)		(4,732,916	)		(4,653,375	)
Decrease in net assets resulting from distributions to shareholders		(100,789,012	)		(47,903,550	)		(4,732,916	)		(4,653,375	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		980,802,040			13,344,920			92,816,668			(4,164,957	)
NET ASSETS
Total increase in net assets		874,174,224			258,871,416			95,696,396			24,662,556
Beginning of year		1,855,447,230			1,596,575,814			189,215,962			164,553,406
End of year	$	2,729,621,454		$	1,855,447,230		$	284,912,358		$	189,215,962
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	10,599,938		$	12,327,044		$	322,056		$	(591,075	)

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 53

Statements of Changes in Net Assets   (continued)

	iShares MSCI Malaysia ETF						iShares MSCI Pacific ex Japan ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	14,176,454		$	9,215,501		$	102,324,651		$	96,552,726
Net realized gain (loss)		(7,368,623	)		(5,180,434	)		165,198,688			1,737,386
Net change in unrealized appreciation (depreciation)		30,835,443			3,247,154			(145,434,956	)		333,667,268
Net increase in net assets resulting from operations		37,643,274			7,282,221			122,088,383			431,957,380
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(30,357,233	)		(15,799,041	)		(129,611,494	)		(98,968,999	)
Decrease in net assets resulting from distributions to shareholders		(30,357,233	)		(15,799,041	)		(129,611,494	)		(98,968,999	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		112,710,143			110,285,509			(738,069,585	)		429,475,790
NET ASSETS
Total increase (decrease) in net assets		119,996,184			101,768,689			(745,592,696	)		762,464,171
Beginning of year		437,223,875			335,455,186			3,120,426,256			2,357,962,085
End of year	$	557,220,059		$	437,223,875		$	2,374,833,560		$	3,120,426,256
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(8,245,264	)	$	(8,211,868	)	$	5,556,042		$	11,406,465

See notes to financial statements.

54 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Statements of Changes in Net Assets   (continued)

	iShares MSCI Singapore ETF						iShares MSCI Taiwan ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	27,561,521		$	16,847,836		$	102,838,128		$	97,355,721
Net realized gain (loss)		(7,420,348	)		(26,854,229	)		46,785,988			7,103,672
Net change in unrealized appreciation (depreciation)		(29,174,128	)		116,883,844			11,762,468			637,093,016
Net increase (decrease) in net assets resulting from operations		(9,032,955	)		106,877,451			161,386,584			741,552,409
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(31,091,826	)		(23,963,560	)		(104,132,193	)		(64,888,894	)
Decrease in net assets resulting from distributions to shareholders		(31,091,826	)		(23,963,560	)		(104,132,193	)		(64,888,894	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		19,149,528			(45,064,669	)		261,146,609			430,937,769
NET ASSETS
Total increase (decrease) in net assets		(20,975,253	)		37,849,222			318,401,000			1,107,601,284
Beginning of year		600,267,660			562,418,438			3,764,490,397			2,656,889,113
End of year	$	579,292,407		$	600,267,660		$	4,082,891,397		$	3,764,490,397
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(2,982,920	)	$	(2,880,416	)	$	83,026,169		$	84,691,293

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 55

Statements of Changes in Net Assets   (continued)

	iShares MSCI Thailand ETF
	Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	9,935,178		$	10,325,846
Net realized gain		25,014,195			18,501,262
Net change in unrealized appreciation (depreciation)		2,586,714			8,462,392
Net increase in net assets resulting from operations		37,536,087			37,289,500
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(9,963,198	)		(10,761,008	)
Decrease in net assets resulting from distributions to shareholders		(9,963,198	)		(10,761,008	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		52,678,820			(119,013,553	)
NET ASSETS
Total increase (decrease) in net assets		80,251,709			(92,485,061	)
Beginning of year		355,590,027			448,075,088
End of year	$	435,841,736		$	355,590,027
Undistributed net investment income included in net assets at end of year	$	1,914,983		$	2,034,256

See notes to financial statements.

56 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Financial Highlights

(For a share outstanding throughout each period)

	iShares MSCI Hong Kong ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	24.69		$	21.08		$	19.42		$	21.89		$	18.91
Net investment income(a)		0.71			0.68			0.54			0.52			0.66
Net realized and unrealized gain (loss)(b)		(0.12	)		3.54			1.72			(2.50	)		3.04
Net increase (decrease) from investment operations		0.59			4.22			2.26			(1.98	)		3.70
Distributions(c)
From net investment income		(1.10	)		(0.61	)		(0.60	)		(0.49	)		(0.72	)
Total distributions		(1.10	)		(0.61	)		(0.60	)		(0.49	)		(0.72	)
Net asset value, end of year	$	24.18		$	24.69		$	21.08		$	19.42		$	21.89
Total Return
Based on net asset value		2.33	%		20.38	%		11.94	%		(9.29	)%		19.87	%
Ratios to Average Net Assets
Total expenses		0.48	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		2.83	%		3.08	%		2.73	%		2.36	%		3.24	%
Supplemental Data
Net assets, end of year (000)	$	2,729,621		$	1,855,447		$	1,596,576		$	2,722,224		$	3,221,312
Portfolio turnover rate(d)		7	%		8	%		9	%		7	%		6	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 57

Financial Highlights   (continued)

(For a share outstanding throughout each period)

	iShares MSCI Japan Small-Cap ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	72.78		$	60.95		$	56.79		$	56.61		$	49.44
Net investment income(a)		0.94			1.02			0.84			0.70			0.70
Net realized and unrealized gain(b)		4.24			12.62			4.29			0.71			7.61
Net increase from investment operations		5.18			13.64			5.13			1.41			8.31
Distributions(c)
From net investment income		(0.96	)		(1.81	)		(0.97	)		(1.23	)		(1.14	)
Total distributions		(0.96	)		(1.81	)		(0.97	)		(1.23	)		(1.14	)
Net asset value, end of year	$	77.00		$	72.78		$	60.95		$	56.79		$	56.61
Total Return
Based on net asset value		7.09	%		22.81	%		9.10	%		2.63	%		16.94	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		1.18	%		1.53	%		1.44	%		1.26	%		1.31	%
Supplemental Data
Net assets, end of year (000)	$	284,912		$	189,216		$	164,553		$	159,004		$	169,837
Portfolio turnover rate(d)		9	%		8	%		12	%		10	%		14	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights   (continued)

(For a share outstanding throughout each period)

	iShares MSCI Malaysia ETF
	Year Ended 08/31/18			Year Ended    08/31/17(a)			Year Ended    08/31/16(a)			Year Ended    08/31/15(a)			Year Ended    08/31/14(a)
Net asset value, beginning of year	$	32.03		$	33.13		$	40.75		$	64.53		$	58.40
Net investment income(b)		0.91			0.56			1.00			1.44			2.16
Net realized and unrealized gain (loss)(c)		2.06			(0.05	)		2.79			(23.47	)		6.06
Net increase (decrease) from investment operations		2.97			0.51			3.79			(22.03	)		8.22
Distributions(d)
From net investment income		(2.13	)		(1.61	)		(1.81	)		(1.57	)		(2.09	)
From net realized gain		—			—			(9.60	)		(0.18	)		—
Total distributions		(2.13	)		(1.61	)		(11.41	)		(1.75	)		(2.09	)
Net asset value, end of year	$	32.87		$	32.03		$	33.13		$	40.75		$	64.53
Total Return
Based on net asset value		9.59	%		2.14	%		12.58	%		(34.62	)%		14.17	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		2.69	%		2.73	%		2.86	%		2.61	%		3.48	%
Supplemental Data
Net assets, end of year (000)	$	557,220		$	437,224		$	335,455		$	263,579		$	786,461
Portfolio turnover rate(e)		63	%(f)		24	%(f)		72	%(f)		24	%(f)		16	%(f)
(a) Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. (b) Based on average shares outstanding. (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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (e) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).
(f)  Portfolio turnover rate excluding cash creations was as follows:		17	%		10	%		17	%		5	%		10	%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 59

Financial Highlights   (continued)

(For a share outstanding throughout each period)

	iShares MSCI Pacific ex Japan ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	46.43		$	40.94		$	38.01		$	51.21		$	44.56
Net investment income(a)		1.66			1.60			1.54			1.97			1.88
Net realized and unrealized gain (loss)(b)		0.03			5.55			2.98			(13.09	)		6.51
Net increase (decrease) from investment operations		1.69			7.15			4.52			(11.12	)		8.39
Distributions(c)
From net investment income		(2.10	)		(1.66	)		(1.59	)		(2.08	)		(1.74	)
Total distributions		(2.10	)		(1.66	)		(1.59	)		(2.08	)		(1.74	)
Net asset value, end of year	$	46.02		$	46.43		$	40.94		$	38.01		$	51.21
Total Return
Based on net asset value		3.63	%		18.06	%		12.20	%		(22.19	)%		19.25	%
Ratios to Average Net Assets
Total expenses		0.48	%		0.49	%		0.49	%		0.49	%		0.49	%
Net investment income		3.52	%		3.69	%		4.00	%		4.31	%		3.90	%
Supplemental Data
Net assets, end of year (000)	$	2,374,834		$	3,120,426		$	2,357,962		$	1,984,205		$	3,472,048
Portfolio turnover rate(d)		6	%		3	%		6	%		7	%		8	%

^(a) Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

60 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Financial Highlights   (continued)

(For a share outstanding throughout each period)

	iShares MSCI Singapore ETF
	Year Ended 08/31/18			Year Ended    08/31/17(a)			Year Ended    08/31/16(a)			Year Ended    08/31/15(a)			Year Ended    08/31/14(a)
Net asset value, beginning of year	$	24.70		$	21.22		$	21.25		$	27.93		$	24.98
Net investment income(b)		1.04			0.56			0.84			0.82			0.80
Net realized and unrealized gain (loss)(c)		(0.77	)		3.84			(0.24	)		(6.64	)		3.05
Net increase (decrease) from investment operations		0.27			4.40			0.60			(5.82	)		3.85
Distributions(d)
From net investment income		(1.13	)		(0.92	)		(0.63	)		(0.86	)		(0.90	)
Total distributions		(1.13	)		(0.92	)		(0.63	)		(0.86	)		(0.90	)
Net asset value, end of year	$	23.84		$	24.70		$	21.22		$	21.25		$	27.93
Total Return
Based on net asset value		0.91	%		21.51	%		2.87	%		(21.27	)%		15.65	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		4.03	%		3.00	%		3.96	%		3.15	%		2.99	%
Supplemental Data
Net assets, end of year (000)	$	579,292		$	600,268		$	562,418		$	609,927		$	984,455
Portfolio turnover rate(e)		26	%		12	%		7	%		10	%		4	%

^(a)  Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 61

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Taiwan ETF
	Year Ended 08/31/18			Year Ended    08/31/17(a)			Year Ended    08/31/16(a)			Year Ended    08/31/15(a)			Year Ended    08/31/14(a)
Net asset value, beginning of year	$	37.35		$	30.30		$	27.17		$	32.89		$	27.21
Net investment income(b)		0.98			0.87			0.68			0.74			0.58
Net realized and unrealized gain (loss)(c)		0.60			6.88			3.25			(5.88	)		5.62
Net increase (decrease) from investment operations		1.58			7.75			3.93			(5.14	)		6.20
Distributions(d)
From net investment income		(1.02	)		(0.70	)		(0.80	)		(0.58	)		(0.52	)
Total distributions		(1.02	)		(0.70	)		(0.80	)		(0.58	)		(0.52	)
Net asset value, end of year	$	37.91		$	37.35		$	30.30		$	27.17		$	32.89
Total Return
Based on net asset value		4.43	%		26.17	%		15.02	%		(15.79	)%		23.24	%
Ratios to Average Net Assets
Total expenses		0.59	%		0.62	%		0.64	%		0.62	%		0.62	%
Net investment income		2.65	%		3.10	%		2.51	%		2.36	%		1.98	%
Supplemental Data
Net assets, end of year (000)	$	4,082,891		$	3,764,790		$	2,656,889		$	3,276,410		$	3,298,664
Portfolio turnover rate(e)		12	%(f)		11	%(f)		27	%(f)		14	%(f)		11	%(f)
(a) Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. (b) Based on average shares outstanding. (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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (e) Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).
(f)  Portfolio turnover rate excluding cash creations was as follows:		11	%		8	%		9	%		4	%		4	%

See notes to financial statements.

62 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Thailand ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	82.70		$	75.94		$	65.01		$	83.41		$	67.73
Net investment income(a)		2.12			1.99			2.05			1.66			1.67
Net realized and unrealized gain (loss)(b)		8.13			6.90			10.54			(17.98	)		15.84
Net increase (decrease) from investment operations		10.25			8.89			12.59			(16.32	)		17.51
Distributions(c)
From net investment income		(2.15	)		(2.13	)		(1.66	)		(2.08	)		(1.83	)
Total distributions		(2.15	)		(2.13	)		(1.66	)		(2.08	)		(1.83	)
Net asset value, end of year	$	90.80		$	82.70		$	75.94		$	65.01		$	83.41
Total Return
Based on net asset value		12.55	%		12.01	%		19.87	%		(19.92	)%		26.18	%
Ratios to Average Net Assets
Total expenses		0.59	%		0.62	%		0.63	%		0.62	%		0.62	%
Net investment income		2.30	%		2.63	%		3.08	%		2.09	%		2.24	%
Supplemental Data
Net assets, end of year (000)	$	435,842		$	355,590		$	448,075		$	237,304		$	571,370
Portfolio turnover rate(d)		10	%		7	%		16	%		13	%		9	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 63

Notes to Financial Statements

1.   ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

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(a)	Non-diversified
MSCI Taiwan(b)	Non-diversified
MSCI Thailand(c)	Non-diversified

^(a)  Formerly the iShares MSCI Singapore Capped ETF.

^(b)  Formerly the iShares MSCI Taiwan Capped ETF.

^(c)  Formerly the iShares MSCI Thailand Capped ETF.

2.   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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

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Notes to Financial Statements  (continued)

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3.   INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.   SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S.

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 65

Notes to Financial Statements (continued)

exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
MSCI Hong Kong
Goldman Sachs & Co.	$	10,309,728	$	10,309,728		$	—	$	—
Morgan Stanley & Co. LLC		6,918,181		6,918,181			—		—
State Street Bank & Trust Company		311,305		311,305			—		—
	$	17,539,214	$	17,539,214		$	—	$	—
MSCI Japan Small-Cap
Barclays Capital Inc.	$	1,535,356	$	1,535,356		$	—	$	—
BMO Capital Markets		28,976		28,976			—		—
Citigroup Global Markets Inc.		300,511		300,511			—		—
Credit Suisse Securities (USA) LLC		3,129,028		3,129,028			—		—
Deutsche Bank Securities Inc.		120,960		120,960			—		—
Goldman Sachs & Co.		2,346,410		2,346,410			—		—
HSBC Bank PLC		429,979		429,979			—		—
Jefferies LLC		42,418		42,418			—		—
JPMorgan Securities LLC		4,067,797		4,067,797			—		—
Macquarie Bank Limited		79,729		79,729			—		—
Merrill Lynch, Pierce, Fenner & Smith		532,575		532,575			—		—
Mizuho Securities USA Inc.		127,966		127,966			—		—
Morgan Stanley & Co. LLC		3,566,491		3,566,491			—		—
State Street Bank & Trust Company		271,228		271,228			—		—
UBS AG		283,121		283,121			—		—
	$	16,862,545	$	16,862,545		$	—	$	—
MSCI Malaysia
JPMorgan Securities PLC	$	3,981,507	$	3,981,507		$	—	$	—
Macquarie Bank Limited		1,700,633		1,700,633			—		—
Morgan Stanley & Co. International PLC		6,890,377		6,890,377			—		—
UBS AG		11,003		11,003			—		—
	$	12,583,520	$	12,583,520		$	—	$	—
MSCI Pacific ex Japan
Credit Suisse Securities (USA) LLC	$	183,748	$	183,748		$	—	$	—
Goldman Sachs & Co.		1,217,500		1,217,500			—		—
JPMorgan Securities LLC		2,123,371		2,123,371			—		—
Macquarie Bank Limited		11,545,400		11,545,400			—		—
Morgan Stanley & Co. LLC		2,609,903		2,609,903			—		—
State Street Bank & Trust Company		1,073,182		1,073,182			—		—
	$	18,753,104	$	18,753,104		$	—	$	—

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Notes to Financial Statements  (continued)

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral   Received(a)		Non-Cash Collateral Received		Net Amount
MSCI Singapore
Goldman Sachs & Co.	$	353,868	$	353,868	$	—	$	—
JPMorgan Securities LLC		17,793		17,793		—		—
Morgan Stanley & Co. LLC		5,467,334		5,467,334		—		—
	$	5,838,995	$	5,838,995	$	—	$	—
MSCI Taiwan
Citigroup Global Markets Ltd.	$	49,010,500	$	49,010,500	$	—	$	—
Credit Suisse Securities (Europe) Ltd.		3,210,190		3,210,190		—		—
JPMorgan Securities PLC		16,752,806		16,752,806		—		—
Morgan Stanley & Co. International PLC		69,911,379		69,911,379		—		—
UBS Ltd.		57,952		57,952		—		—
	$	138,942,827	$	138,942,827	$	—	$	—
MSCI Thailand
Barclays Capital Inc.	$	1,519,767	$	1,519,767	$	—	$	—
Credit Suisse Securities (USA) LLC		9,837,408		9,837,408		—		—
Deutsche Bank Securities Inc.		242,479		242,479		—		—
Goldman Sachs & Co.		1,871,604		1,871,604		—		—
JPMorgan Securities LLC		729,205		729,205		—		—
Macquarie Bank Limited		176,505		176,505		—		—
Merrill Lynch, Pierce, Fenner & Smith		254,860		254,860		—		—
Morgan Stanley & Co. LLC		2,803,804		2,803,804		—		—
Scotia Capital (USA) Inc.		458,019		458,019		—		—
UBS AG		1,552,290		1,552,290		—		—
UBS Securities LLC		25,005		25,005		—		—
	$	19,470,946	$	19,470,946	$	—	$	—

^(a)  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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 67

Notes to Financial Statements  (continued)

6.   INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

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, accrued daily and paid monthly by the Funds, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $7 billion		0.59	%
Over $7 billion, up to and including $11 billion		0.54
Over $11 billion, up to and including $24 billion		0.49
Over $24 billion, up to and including $48 billion		0.44
Over $48 billion, up to and including $72 billion		0.40
Over $72 billion, up to and including $96 billion		0.36
Over $96 billion		0.32

For its investment advisory services to the iShares MSCI Pacific ex Japan ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $46 billion		0.5000	%
Over $46 billion, up to and including $81 billion		0.4750
Over $81 billion, up to and including $111 billion		0.4513
Over $111 billion, up to and including $141 billion		0.4287
Over $141 billion		0.4073

Each reduced 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.

For its investment advisory services to each of the iShares MSCI Taiwan and iShares MSCI Thailand ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $2 billion		0.74	%
Over $2 billion, up to and including $4 billion		0.69
Over $4 billion, up to and including $8 billion		0.64
Over $8 billion, up to and including $16 billion		0.57
Over $16 billion, up to and including $24 billion		0.51
Over $24 billion, up to and including $32 billion		0.48
Over $32 billion		0.45

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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

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Notes to Financial Statements  (continued)

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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid   to BTC
MSCI Hong Kong	$	150,836
MSCI Japan Small-Cap		111,119
MSCI Malaysia		99,873
MSCI Pacific ex Japan		113,687
MSCI Singapore		36,968
MSCI Taiwan		878,213
MSCI Thailand		290,709

For the year ended August 31, 2018, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Taiwan ETF in the amount of $32,584, related to foreign tax on income earned from the lending of Taiwan securities. The voluntary waiver was discontinued effective January 1, 2018. Such reimbursement is included in securities lending income – affiliated – net in the statement of operations.

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Hong Kong	$	9,874,165	$	15,551,550
MSCI Japan Small-Cap		4,296,789		11,282,063
MSCI Pacific ex Japan		13,748,685		5,053,686
MSCI Singapore		7,331,658		16,320,039

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 shown as dividends – affiliated in the statement of operations.

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
MSCI Hong Kong	$	812,410,589	$	169,904,653
MSCI Japan Small-Cap		38,787,255		30,707,357
MSCI Malaysia		443,268,774		331,573,246
MSCI Pacific ex Japan		209,510,705		177,073,182
MSCI Singapore		172,618,169		183,286,121
MSCI Taiwan		706,025,443		452,910,219
MSCI Thailand		40,494,419		43,762,793

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind   Sales
MSCI Hong Kong	$	342,559,333	$	11,370,329
MSCI Japan Small-Cap		431,000,810		347,373,045
MSCI Pacific ex Japan		133,274,626		909,223,001
MSCI Singapore		233,467,569		207,596,209
MSCI Thailand		208,878,705		152,479,846

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 69

Notes to Financial Statements  (continued)

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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. As of August 31, 2018, the following permanent differences attributable to passive foreign investment companies, the characterization of corporate actions, the expiration of capital loss carryforwards, distributions paid in excess of taxable income, foreign currency transactions, realized gains (losses) from in-kind redemptions, the characterization of expenses and classification of settlement proceeds were reclassified to the following accounts:

iShares ETF	Paid-in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
MSCI Hong Kong	$	(112,673,503	)	$	32,538,493		$	80,135,010
MSCI Japan Small-Cap		46,771,943			1,410,523			(48,182,466	)
MSCI Malaysia		—			16,147,383			(16,147,383	)
MSCI Pacific ex Japan		66,344,102			21,436,420			(87,780,522	)
MSCI Singapore		(117,509,307	)		3,427,801			114,081,506
MSCI Taiwan		(363,052,013	)		(371,059	)		363,423,072
MSCI Thailand		25,633,152			(91,253	)		(25,541,899	)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
MSCI Hong Kong
Ordinary income	$	100,789,012	$	47,903,550
MSCI Japan Small-Cap
Ordinary income	$	4,732,916	$	4,653,375
MSCI Malaysia
Ordinary income	$	30,357,233	$	15,799,041
MSCI Pacific ex Japan
Ordinary income	$	129,611,494	$	98,968,999
MSCI Singapore
Ordinary income	$	31,091,826	$	23,963,560
MSCI Taiwan
Ordinary income	$	104,132,193	$	64,888,894
MSCI Thailand
Ordinary income	$	9,963,198	$	10,761,008

As of August 31, 2018, the tax components of accumulated net earnings (losses) were as follows:

	Undistributed		Capital Loss			Net Unrealized			Qualified
iShares ETF		Ordinary Income		Carryforwards			Gains (Losses)	(a)		Late-Year Losses	(b)		Total
MSCI Hong Kong	$	10,599,938	$	(380,898,456	)	$	4,685,992		$	—		$	(365,612,526	)
MSCI Japan Small-Cap		839,425		(2,750,167	)		(32,884,725	)		—			(34,795,467	)
MSCI Malaysia		4,222,198		(25,388,537	)		128,445,566			—			107,279,227
MSCI Pacific ex Japan		19,272,162		(384,040,792	)		(107,187,653	)		—			(471,956,283	)
MSCI Singapore		—		(137,456,998	)		(55,518,049	)		(2,257,361	)		(195,232,408	)
MSCI Taiwan		99,786,875		(310,197,861	)		1,682,034,186			—			1,471,623,200
MSCI Thailand		1,916,332		(42,560,895	)		(21,672,681	)		—			(62,317,244	)

^(a)  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 on investments in passive foreign investment companies and the characterization of corporate actions.

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Notes to Financial Statements  (continued)

^(b)  The Funds elected to defer certain qualified late-year losses and recognize such losses in the year ending next taxable year.

As of August 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non-Expiring(a)		Expiring 2019		Total
MSCI Hong Kong	$	346,332,497	$	34,565,959	$	380,898,456
MSCI Japan Small-Cap		2,546,470		203,697		2,750,167
MSCI Malaysia		25,388,537		—		25,388,537
MSCI Pacific ex Japan		347,439,805		36,600,987		384,040,792
MSCI Singapore		125,868,470		11,588,528		137,456,998
MSCI Taiwan		290,527,903		19,669,958		310,197,861
MSCI Thailand		41,255,985		1,304,910		42,560,895

^(a)  Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2018, the Funds utilized the following amounts of their capital loss carryforwards as follows:

iShares ETF	Utilized
MSCI Japan Small-Cap	$	310,238
MSCI Taiwan		45,029,789

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Hong Kong	$	2,730,117,818	$	286,046,933	$	(281,361,734	)	$	4,685,199
MSCI Japan Small-Cap		334,637,827		7,693,975		(40,578,985	)		(32,885,010	)
MSCI Malaysia		440,539,944		172,594,979		(44,163,728	)		128,431,251
MSCI Pacific ex Japan		2,484,627,752		315,090,421		(422,193,627	)		(107,103,206	)
MSCI Singapore		637,312,276		27,712,979		(83,230,220	)		(55,517,241	)
MSCI Taiwan		2,540,285,275		1,952,598,796		(270,515,982	)		1,682,082,814
MSCI Thailand		477,749,811		25,112,705		(46,784,211	)		(21,671,506	)

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 71

Notes to Financial Statements  (continued)

or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

10. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Hong Kong
Shares sold		38,250,000		$	993,462,562			21,225,000		$	465,624,058
Shares redeemed		(525,000	)		(12,660,522	)		(21,825,000	)		(452,279,138	)
Net increase (decrease)		37,725,000		$	980,802,040			(600,000	)	$	13,344,920
MSCI Japan Small-Cap
Shares sold		5,500,000		$	444,537,508			1,800,000		$	116,995,181
Shares redeemed		(4,400,000	)		(351,720,840	)		(1,900,000	)		(121,160,138	)
Net increase (decrease)		1,100,000		$	92,816,668			(100,000	)	$	(4,164,957	)
MSCI Malaysia
Shares sold		11,025,000		$	376,972,344			6,900,000	(a)	$	158,537,129
Shares redeemed		(7,725,000	)		(264,262,201	)		(3,375,000	)(a)		(48,251,620	)
Net increase		3,300,000		$	112,710,143			3,525,000		$	110,285,509
MSCI Pacific ex Japan
Shares sold		4,500,000		$	212,570,632			14,400,000		$	627,289,205
Shares redeemed		(20,100,000	)		(950,640,217	)		(4,800,000	)		(197,813,415	)
Net increase (decrease)		(15,600,000	)	$	(738,069,585	)		9,600,000		$	429,475,790
MSCI Singapore
Shares sold		11,150,000		$	295,823,970			3,400,000	(b)	$	74,734,333
Shares redeemed		(11,150,000	)		(276,674,442	)		(5,600,000	)(b)		(119,799,002	)
Net increase (decrease)		—		$	19,149,528			(2,200,000	)	$	(45,064,669	)
MSCI Taiwan
Shares sold		8,100,000		$	304,794,945			15,300,000	(b)	$	500,883,331
Shares redeemed		(1,200,000	)		(43,648,336	)		(2,200,000	)(b)		(69,945,562	)
Net increase		6,900,000		$	261,146,609			13,100,000		$	430,937,769

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Notes to Financial Statements  (continued)

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Thailand
Shares sold		2,250,000		$	213,303,678			1,700,000		$	125,837,713
Shares redeemed		(1,750,000	)		(160,624,858	)		(3,300,000	)		(244,851,266	)
Net increase (decrease)		500,000		$	52,678,820			(1,600,000	)	$	(119,013,553	)

^(a)  Share transactions reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016.

^(b)  Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

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 shares sold in the table above.

11. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

12. 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 additional disclosure in the financial statements.

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 73

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders 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 ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, 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 ETF (seven of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information  (unaudited)

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:    

iShares ETF	Qualified Dividend   Income
MSCI Hong Kong	$	563,155
MSCI Japan Small-Cap		4,631,094
MSCI Pacific ex Japan		71,353,251
MSCI Thailand		12,057,324

For the fiscal year ended August 31, 2018, 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
MSCI Hong Kong	$	109,581,271	$	—
MSCI Japan Small-Cap		6,071,828		598,509
MSCI Malaysia		32,323,537		—
MSCI Pacific ex Japan		132,341,299		832,692
MSCI Singapore		30,949,604		317,964
MSCI Taiwan		154,725,569		32,704,952
MSCI Thailand		12,426,269		1,204,897

I M P O R T A N T    T A X    I N F O R  M A T I O N 75

Board Review and Approval of Investment Advisory Contract

I. iShares MSCI Hong Kong ETF, iShares MSCI Pacific ex Japan ETF and iShares MSCI Singapore 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

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

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Board Review and Approval of Investment Advisory Contract  (continued)

Costs of Services Provided to Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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

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Board Review and Approval of Investment Advisory Contract  (continued)

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

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Board Review and Approval of Investment Advisory Contract  (continued)

including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Malaysia ETF, iShares MSCI Taiwan ETF and iShares MSCI Thailand 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests,

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Board Review and Approval of Investment Advisory Contract  (continued)

and requested certain additional information, which management agreed to provide. At a meeting held on May 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information considered.

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Board Review and Approval of Investment Advisory Contract  (continued)

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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information  (unaudited)

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 Japan Small-Cap		$ 0.958899	$	—		$         —		$ 0.958899		100	%		—	%		—	%		100	%
MSCI Pacific ex Japan		2.069932		—		0.026001		2.095933		99			—			1			100
MSCI Singapore		0.811339		—		0.315705		1.127044		72			—			28			100
MSCI Taiwan		0.990806		—		0.028100		1.018906		97			—			3			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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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 Hong Kong ETF    

Period Covered: January 01, 2013 through June 30, 2018    

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0% and Less than 4.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		3		0.22
Greater than 1.0% and Less than 1.5%		33		2.38
Greater than 0.5% and Less than 1.0%		190		13.73
Greater than 0.0% and Less than 0.5%		525		37.94
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		387		27.95
Less than –0.5% and Greater than –1.0%		154		11.13
Less than –1.0% and Greater than –1.5%		50		3.61
Less than –1.5% and Greater than –2.0%		16		1.16
Less than –2.0% and Greater than –2.5%		2		0.14
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
		1,384		100.00	%

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Supplemental Information  (unaudited) (continued)

iShares MSCI Japan Small-Cap ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
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%		5		0.36
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%		11		0.79
Greater than 1.5% and Less than 2.0%		36		2.60
Greater than 1.0% and Less than 1.5%		88		6.36
Greater than 0.5% and Less than 1.0%		233		16.85
Greater than 0.0% and Less than 0.5%		411		29.72
At NAV		6		0.43
Less than 0.0% and Greater than –0.5%		322		23.27
Less than –0.5% and Greater than –1.0%		144		10.40
Less than –1.0% and Greater than –1.5%		59		4.26
Less than –1.5% and Greater than –2.0%		37		2.67
Less than –2.0% and Greater than –2.5%		11		0.79
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%		1		0.07
		1,384		100.00	%

iShares MSCI Malaysia ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 4.5% and Less than 5.0%		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%		4		0.29
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		27		1.95
Greater than 1.0% and Less than 1.5%		70		5.06
Greater than 0.5% and Less than 1.0%		224		16.18
Greater than 0.0% and Less than 0.5%		417		30.13
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		322		23.27
Less than –0.5% and Greater than –1.0%		173		12.50
Less than –1.0% and Greater than –1.5%		60		4.34
Less than –1.5% and Greater than –2.0%		38		2.75
Less than –2.0% and Greater than –2.5%		11		0.79
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 –5.0% and Greater than –5.5%		1		0.07
Less than –6.0%		5		0.36
		1,384		100.00	%

S U P P L E M E N T A L    I N F O R M A T I O  N 83

Supplemental Information  (unaudited) (continued)

iShares MSCI Pacific ex Japan ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		7		0.51
Greater than 1.0% and Less than 1.5%		47		3.40
Greater than 0.5% and Less than 1.0%		181		13.08
Greater than 0.0% and Less than 0.5%		549		39.66
At NAV		16		1.16
Less than 0.0% and Greater than –0.5%		377		27.24
Less than –0.5% and Greater than –1.0%		136		9.83
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%		5		0.36
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
		1,384		100.00	%

iShares MSCI Singapore ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		1		0.07	%
Greater than 1.5% and Less than 2.0%		7		0.51
Greater than 1.0% and Less than 1.5%		21		1.52
Greater than 0.5% and Less than 1.0%		171		12.37
Greater than 0.0% and Less than 0.5%		582		42.05
At NAV		16		1.16
Less than 0.0% and Greater than –0.5%		417		30.13
Less than –0.5% and Greater than –1.0%		123		8.89
Less than –1.0% and Greater than –1.5%		28		2.02
Less than –1.5% and Greater than –2.0%		10		0.72
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –6.0%		2		0.14
		1,384		100.00	%

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Supplemental Information  (unaudited) (continued)

iShares MSCI Taiwan ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0% and Less than 4.5%		2		0.14	%
Greater than 3.0% and Less than 3.5%		2		0.14
Greater than 2.5% and Less than 3.0%		5		0.36
Greater than 2.0% and Less than 2.5%		6		0.43
Greater than 1.5% and Less than 2.0%		18		1.30
Greater than 1.0% and Less than 1.5%		76		5.49
Greater than 0.5% and Less than 1.0%		215		15.54
Greater than 0.0% and Less than 0.5%		368		26.60
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		386		27.90
Less than –0.5% and Greater than –1.0%		171		12.37
Less than –1.0% and Greater than –1.5%		68		4.91
Less than –1.5% and Greater than –2.0%		28		2.02
Less than –2.0% and Greater than –2.5%		14		1.01
Less than –2.5% and Greater than –3.0%		6		0.43
Less than –3.0% and Greater than –3.5%		5		0.36
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –5.0% and Greater than –5.5%		1		0.07
Less than –6.0%		2		0.14
		1,384		100.00	%

iShares MSCI Thailand ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 4.5% and Less than 5.0%		1		0.07
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		8		0.58
Greater than 1.5% and Less than 2.0%		26		1.88
Greater than 1.0% and Less than 1.5%		65		4.70
Greater than 0.5% and Less than 1.0%		223		16.11
Greater than 0.0% and Less than 0.5%		428		30.93
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		312		22.55
Less than –0.5% and Greater than –1.0%		187		13.51
Less than –1.0% and Greater than –1.5%		75		5.42
Less than –1.5% and Greater than –2.0%		26		1.88
Less than –2.0% and Greater than –2.5%		12		0.87
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0% and Greater than –3.5%		5		0.36
Less than –5.5% and Greater than –6.0%		1		0.07
		1,384		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD if such managers market a fund to EU investors.

BFA has registered the iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Taiwan ETF and iShares MSCI Thailand ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden, and Luxembourg.

S U P P L E M E N T A L    I N F O R M A T I O  N 85

Supplemental Information  (unaudited) (continued)

Report on Remuneration

BFA is required under the AIFMD 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 Funds.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the each 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.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

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 each 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 iShares MSCI Hong Kong ETF in respect of BFA’s financial year ending December 31, 2017 was USD 192.31 thousand. This figure is comprised of fixed remuneration of USD 76.65 thousand and variable remuneration of USD 115.66 thousand. There were a total of 417 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, 2017, to its senior management was USD 26.9 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 5.01 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, 2017 was USD 28.6 thousand. This figure is comprised of fixed remuneration of USD 11.4 thousand and variable remuneration of USD 17.2 thousand. There were a total of 417 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, 2017, to its senior management was USD 4.0 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.75 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, 2017 was USD 46.68 thousand. This figure is comprised of fixed remuneration of USD 18.61 thousand and variable remuneration of USD 28.07 thousand. There were a total of 417 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, 2017, to its senior management was USD 6.53 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 1.22 thousand.

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Supplemental Information  (unaudited) (continued)

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, 2017 was USD 351.8 thousand. This figure is comprised of fixed remuneration of USD 140.22 thousand and variable remuneration of USD 211.58 thousand. There were a total of 417 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, 2017, to its senior management was USD 49.22 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 9.17 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Thailand ETF in respect of BFA’s financial year ending December 31, 2017 was USD 37.52 thousand. This figure is comprised of fixed remuneration of USD 14.95 thousand and variable remuneration of USD 22.56 thousand. There were a total of 417 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Thailand ETF in respect of BFA’s financial year ending December 31, 2017, to its senior management was USD 5.25 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.

S U P P L E M E N T A L    I N F O R M A T I O  N 87

Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^(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. and its affiliates.

^(b) Mark K. 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.

Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information  (continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

D I R E C T O R    A N D    O F F I C E R     I N F O R M A T I O N 89

General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

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Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity
ADR	American Depositary Receipt
NVDR	Non-Voting Depositary Receipt

G L O S S A R Y    O F    T E R M S    U S E D    I N    T H I S    R E P O R T 91

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

	This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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.
	©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

  2018 ANNUAL REPORT

iShares, Inc.

u iShares MSCI Brazil ETF | EWZ | NYSE Arca

u iShares MSCI Chile ETF | ECH | Cboe BZX

u iShares MSCI Colombia ETF | ICOL | NYSE Arca

u iShares MSCI Israel ETF | EIS | NYSE Arca

u iShares MSCI Russia ETF | ERUS | NYSE Arca

u iShares MSCI South Africa ETF | EZA | NYSE Arca

u iShares MSCI Turkey ETF | TUR | NASDAQ

u iShares MSCI USA Equal Weighted ETF | EUSA | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		22
Shareholder Expenses		22
Schedules of Investments		23
Financial Statements
Statements of Assets and Liabilities		46
Statements of Operations		48
Statements of Changes in Net Assets		50
Financial Highlights		54
Notes to Financial Statements		62
Report of Independent Registered Public Accounting Firm		72
Important Tax Information (Unaudited)		73
Board Review and Approval of Investment Advisory Contract		74
Supplemental Information		86
Director and Officer Information		92
General Information		94
Glossary of Terms Used in this Report		95

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T   O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® MSCI Brazil ETF

Investment Objective

The iShares MSCI Brazil ETF (the “Fund”) (formerly the iShares MSCI Brazil Capped ETF) 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(17.87	)%		(3.02	)%		(4.89	)%		(17.87	)%		(14.22	)%		(39.43	)%
Fund Market		(16.63	)		(2.70	)		(4.80	)		(16.63	)		(12.81	)		(38.83	)
Index		(17.47	)		(2.41	)		(4.38	)		(17.47	)		(11.48	)		(36.10	)

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.

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 22 for more information.

Expense Example

Actual				Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses    Paid During    the Period(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses    Paid During    the Period(a)	Annualized Expense Ratio
	$        1,000.00	$        716.20	$       2.55		$      1,000.00	$      1,022.20	$         3.01	0.59	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Brazil ETF

Portfolio Management Commentary

The Brazilian economy struggled to emerge from a lengthy recession during the reporting period. A nationwide truckers’ strike late in the reporting period adversely affected many areas of the economy as transportation ground to a halt. In addition to slow economic growth, other factors affecting Brazilian equities included a sharp depreciation in the Brazilian real against major currencies, a continued expansion of public debt, and uncertainty surrounding upcoming elections, as polling favored anti-reform candidates.

From a sector perspective, financials stocks, the largest sector weight in the Index on average during the reporting period, detracted the most from the Index’s performance. Despite strong profitability, banks declined amid slowing loan growth, government policy efforts to slow the decline of the Brazilian real, and regulatory uncertainty.

The consumer staples and consumer discretionary sectors also detracted meaningfully from the Index’s return. The truckers’ strike had an outsized impact on the consumer staples sector, including the shutdown of some meat processing plants. Food, beverage, and tobacco stocks declined amid weak domestic beverage sales, a food safety scandal, and a related ban on meat exports. Within consumer discretionary, for-profit education stocks declined, as continued government cuts to student loan programs shifted more default risk to the companies.

Despite increasing oil prices, the energy sector was another detractor from the Index’s return. Government price controls on fuel, corruption scandals, and transportation issues weighed on Brazilian energy stocks. On the upside, the materials sector contributed to the Index’s return, benefiting from higher commodities prices. Increased exports and a favorable regulatory overhaul drove gains among metals and mining stocks. Paper products stocks also advanced, driven by rising pulp prices.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Financials	33.0	%
Materials	21.4
Energy	11.4
Consumer Staples	11.1
Industrials	6.2
Consumer Discretionary	5.5
Utilities	4.7
Telecommunication Services	2.6
Information Technology	1.6
Real Estate	1.3
Health Care	1.2

TEN LARGEST HOLDINGS
Security	Percent of Total Investments	(a)
Vale SA	13.1	%
Itau Unibanco Holding SA (Preferred)	10.4
Banco Bradesco SA (Preferred)	7.1
Petroleo Brasileiro SA (Preferred)	5.1
Ambev SA	4.5
Petroleo Brasileiro SA	4.3
B3 SA - Brasil, Bolsa, Balcao	3.9
Itausa-Investimentos Itau SA (Preferred)	2.9
Banco do Brasil SA	2.3
Suzano Papel e Celulose SA	1.9

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 7

Fund Summary as of August 31, 2018 iShares^® MSCI Chile ETF

Investment Objective

The iShares MSCI Chile ETF (the “Fund”) (formerly the iShares MSCI Chile Capped ETF) seeks to track the investment results of a broad-based index composed of Chilean equities, as represented by the MSCI Chile IMI 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.

Performance

	Average Annual Total Returns								Cumulative Total Returns
	1 Year			5 Years			10 Years		1 Year			5 Years			10 Years
Fund NAV		(7.03	)%		0.05	%		1.34%		(7.03	)%		0.23	%		14.19%
Fund Market		(7.98	)		0.06			1.37		(7.98	)		0.32			14.63
Index		(7.40	)		0.09			1.78		(7.40	)		0.46			19.33

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 IMI 25/50 Index.

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 22 for more information.

Expense Example

Actual						Hypothetical 5% Return
Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses    Paid During    the Period(a)		Annualized     Expense     Ratio
$	1,000.00	$	823.40	$	2.71	$	1,000.00	$	1,022.20	$	3.01		0.59%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Chile ETF

Portfolio Management Commentary

Chile’s economy expanded at its strongest annual rate in nearly six years late in the reporting period. The acceleration was primarily driven by significant increases in fixed investment, household spending, and government spending. However, a number of economic measures slowed during the final few months of the reporting period, including a decline in consumer confidence and a steady increase in the unemployment rate. Declining copper exports also affected the economy’s growth; Chile is the largest copper producer in the world and the metal represents more than 40% of the country’s exports.

From a sector perspective, the utilities sector detracted the most from the Index’s performance. Price increases for raw materials used in electricity generation led to a decline in profits for the electric utilities industry. The earnings of Chilean utilities were further diminished by significantly lower electricity rates in the country and weakness in Latin American currencies. The consumer discretionary sector was another meaningful detractor from the Index’s return. Within the sector, department store stocks declined amid the deteriorating economic outlook and a decline in consumer sentiment late in the reporting period.

The industrials and consumer staples sectors also detracted notably from the Index’s return. Increasing fuel costs detracted from the profits of airline operators and marine shipping companies within the industrials sector. In the consumer staples sector, corporate earnings in the food and staples retail industry decreased due to the deflation of food prices in several Latin American countries, as well as the depreciation of the Chilean peso. On the upside, the energy sector was the largest contributor to the Index’s return, as a sharp increase in the price of oil led to higher profits in the oil and gas, and consumable fuels industry.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Financials	20.7	%
Utilities	20.4
Materials	13.9
Consumer Staples	11.9
Consumer Discretionary	11.0
Energy	9.6
Industrials	6.4
Real Estate	2.6
Telecommunication Services	2.2
Information Technology	1.3

TEN LARGEST HOLDINGS
Security	Percent of Total Investments	(a)
Empresas COPEC SA	9.6	%
SACI Falabella	8.8
Sociedad Quimica y Minera de Chile SA (Preferred), Series B	7.9
Banco Santander Chile	7.6
Enel Americas SA	6.5
Empresas CMPC SA	4.7
Banco de Credito e Inversiones SA	4.4
Cencosud SA	4.4
Latam Airlines Group SA	4.2
Banco de Chile	4.2

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 9

Fund Summary as of August 31, 2018 iShares^® MSCI Colombia ETF

Investment Objective

The iShares MSCI Colombia ETF (the “Fund”) (formerly the iShares MSCI Colombia Capped ETF) 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.

Performance

	Average Annual Total Returns								Cumulative Total Returns
	1 Year			5 Years			Since Inception		1 Year			5 Years			Since Inception
Fund NAV		(2.69	)%		(9.97	)%		(9.12)%		(2.69	)%		(40.85	)%		(39.21)%
Fund Market		(2.39	)		(9.79	)		(8.98)		(2.39	)		(40.25	)		(38.71)
Index		(2.42	)		(9.65	)		(8.86)		(2.42	)		(39.78	)		(38.27)

The inception date of the Fund was 6/18/13. The first day of secondary market trading was 6/20/13.

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 22 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        958.50	$      3.01			$      1,000.00	$        1,022.10	$        3.11		0.61	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Colombia ETF

Portfolio Management Commentary

Colombia’s economic growth improved during the reporting period. The acceleration in growth was supported by stronger domestic consumption, which stemmed from lower inflation and a sharp increase in consumer spending. Manufacturing output also increased significantly, as did the country’s oil- and petroleum-related exports, as global demand rose. However, economic growth moderated late in the reporting period as the unemployment rate rose and consumer confidence decreased.

From a sector perspective, the materials sector detracted the most from the Index’s performance. Within the sector, stocks of cement producers in the construction materials industry were the most significant detractors. The profits of several companies in the industry decreased due to bribery investigations and the payment of heavy fines imposed due to a price-fixing scandal.

The industrials and financials sectors were also notable detractors from the Index’s return. In the industrials sector, lower construction volumes and less profitable projects compressed earnings in the construction and engineering industry, while bottom-line growth for Colombian airline operators was hindered by higher jet fuel prices and a pilots’ strike. The diversified financial services industry weighed on the financials sector as lower inflation and increased stock market volatility led to reduced investment income. Concerns about a long-running investigation into a bribery scheme that may have involved Colombian financial institutions also weighed on the industry.

On the upside, the energy sector was the largest contributor to the Index’s return. Stocks in the sector rose significantly amid higher prices for crude oil, which represents the majority of Colombia’s exports. The increase in energy prices contributed to a substantial increase in profits for Colombia’s oil, gas, and consumable fuels companies.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Financials	35.7	%
Energy	21.3
Materials	15.5
Utilities	13.5
Consumer Staples	9.1
Industrials	3.3
Telecommunication Services	1.6

^(a)  Excludes money market funds.

TEN LARGEST HOLDINGS
Security	Percent of Total Investments	(a)
Ecopetrol SA	15.0	%
Bancolombia SA (Preferred)	13.3
Bancolombia SA	6.3
Banco Davivienda SA (Preferred)	4.7
Grupo Energia Bogota SA ESP	4.6
Grupo Nutresa SA	4.6
Interconexion Electrica SA ESP	4.5
Grupo Argos SA/Colombia	4.5
Almacenes Exito SA	4.5
Grupo de Inversiones Suramericana SA	4.4

F U N D    S U M M A R Y 11

Fund Summary as of August 31, 2018 iShares^® MSCI Israel ETF

Investment Objective

The iShares MSCI Israel ETF (the “Fund”) (formerly the iShares MSCI Israel Capped ETF) 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		19.91	%		7.84	%		4.01	%		19.91	%		45.83	%		48.14	%
Fund Market		19.19			8.05			4.20			19.19			47.28			50.86
Index		20.51			8.31			4.27			20.51			49.08			51.91

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 22 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        1,103.20	$        3.13			$        1,000.00	$        1,022.20	$        3.01		0.59	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Israel ETF

Portfolio Management Commentary

Israel’s economy expanded during the reporting period, driven in large part by a flourishing information technology sector. This growth led to labor shortages as reflected in the record-low unemployment rate and rising real wages. The benefits of the healthy job market to consumers was evident in higher levels of consumer spending. The notable performance of the country’s economy combined with the government’s budget and debt management prompted upgrades of its credit by prominent global credit rating agencies. Increases in foreign direct investment and exports further stimulated economic growth.

The healthcare sector contributed the most to the Index’s return for the reporting period. Shifting global demographic trends related to aging populations, healthcare reform in developed markets, and increased demand in emerging markets drove spending for healthcare goods and services. The pharmaceuticals industry was supported by sales of medications to treat chronic conditions such as multiple sclerosis. Growing demand for generic drugs, particularly by the expanding baby-boomer generation in the U.S., also benefited the industry.

The information technology sector was another meaningful contributor to the Index’s performance. Software companies led the sector’s gains, advancing on the growth in global demand and spending for artificial intelligence and cybersecurity solutions.

Higher cloud computing revenues made the internet software and services industry another contributor to the Index’s return.

The financials sector also significantly contributed to the Index’s return. Banks performed well as the healthy economy led to increasing loan activity and fee income and fewer credit losses. On the downside, the telecommunication services sector detracted slightly from the Index’s performance due to uncertainty regarding a government proposal to increase sector competition.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Information Technology	27.9	%
Financials	23.1
Health Care	17.5
Real Estate	8.4
Materials	7.2
Industrials	4.9
Telecommunication Services	3.2
Energy	3.1
Consumer Discretionary	2.6
Consumer Staples	1.8
Utilities	0.3

TEN LARGEST HOLDINGS
Security	Percent of Total Investments	(a)
Teva Pharmaceutical Industries Ltd.	16.8	%
Check Point Software Technologies Ltd.	11.7
Bank Leumi Le-Israel BM	7.6
Bank Hapoalim BM	6.2
Nice Ltd.	4.5
Israel Discount Bank Ltd., Class A	3.4
Frutarom Industries Ltd.	3.3
Wix. com Ltd.	3.2
Israel Chemicals Ltd.	2.9
Elbit Systems Ltd.	2.6

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 13

Fund Summary as of August 31, 2018 iShares^® MSCI Russia ETF

Investment Objective

The iShares MSCI Russia ETF (the “Fund”) (formerly the iShares MSCI Russia Capped ETF) 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		4.37	%		(0.71	)%		(2.54	)%		4.37	%		(3.50	)%		(18.19	)%
Fund Market		4.02			(0.74	)		(2.61	)		4.02			(3.64	)		(18.63	)
Index		5.40			(0.05	)		(1.92	)		5.40			(0.23	)		(14.01	)

The inception date of the Fund was 11/9/10. The first day of secondary market trading was 11/10/10.

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 22 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        860.40	$        2.77			$      1,000.00	$      1,022.20	$        3.01		0.59	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Russia ETF

Portfolio Management Commentary

The Russian economy posted stable economic growth during the reporting period despite newly enacted sanctions by western governments. The sanctions weighed on the Russian ruble, causing its steady decline against major currencies. Russia’s modest economic expansion was primarily energy-led, as more than 60% of the country’s exports and 40% of the government’s revenues stem from oil and natural gas resources. Growth in foreign direct investment, a critical component of expansion, remained subdued amid rising geopolitical tensions. In a move to expand the economy’s capacity, the government proposed a number of reforms, including an increase to the retirement age.

The energy sector was the leading contributor to the Index’s return. Despite new sanctions levied against Russia, the country’s energy companies remained among the world’s largest producers of oil and gas. Steadily rising oil prices bolstered the oil, gas, and consumable fuels industry, the leading contributors to the Index’s performance at an industry level. Integrated oil and gas producers also benefited from a weaker Russian ruble, which has the dual effect of lowering domestic production costs and increasing revenues, as oil is priced in U.S. dollars. Oil and gas exploration and production stocks gained on rising demand for liquefied natural gas over coal- and oil-based energy sources.

On the downside, consumer staples and financials stocks detracted meaningfully from the Index’s return. Food retailers drove performance of the consumer staples sector, declining amid weakening consumer sentiment following the government’s proposal to increase an already sizable value-added tax. In the financials sector, banks declined despite strong profits in the industry. These stocks fell as investors reduced their exposure to Russian banks on concerns surrounding sanctions risks.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Energy	49.5%
Materials	20.0
Financials	17.6
Consumer Staples	6.1
Utilities	3.6
Telecommunication Services	3.2

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
LUKOIL PJSC	16.2%
Gazprom PJSC	12.6
Sberbank of Russia PJSC	10.0
Novatek PJSC	4.9
MMC Norilsk Nickel PJSC	4.7
Tatneft PJSC	4.6
Sberbank of Russia PJSC	4.2
Magnit PJSC	3.8
Alrosa PJSC	3.4
Mobile TeleSystems PJSC	3.2

^(a) Excludes money market funds.

F U N D    S U M M A R Y 15

Fund Summary as of August 31, 2018 iShares^® MSCI South Africa ETF

Investment Objective

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 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(10.20	)%		1.33	%		2.92	%		(10.20	)%		6.83	%		33.35	%
Fund Market		(10.09	)		1.51			3.04			(10.09	)		7.76			34.92
Index(a)		(9.66	)		1.98			3.72			(9.66	)		10.28			44.10
MSCI South Africa Index		(9.32	)		2.05			3.76			(9.32	)		10.69			44.64
MSCI South Africa 25/50 Index(b)		N/A			N/A			N/A			N/A			N/A			N/A

^(a) Index performance through August 31, 2017 reflects the performance of the MSCI South Africa Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI South Africa 25/50 Index, which, effective as of September 1, 2017, replaced the MSCI South Africa Index as the underlying index of the Fund.

^(b) The inception date of the MSCI South Africa 25/50 Index was May 12, 2017. The cumulative total return of this index for the period May 12, 2017 through August 31, 2018 was -3.57%.

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 22 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        774.20	$        2.64			$      1,000.00	$      1,022.20	$        3.01		0.59	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI South Africa ETF

Portfolio Management Commentary

South Africa’s economy entered into a recession during the second half of the reporting period for the first time since the global financial crisis a decade ago. Declining agricultural productivity played a meaningful role in the recession and was compounded by drought and other unfavorable climate-related events. Exports and manufacturing output also contracted during the reporting period. South Africa’s recession negatively affected the country’s workers and consumers as unemployment increased and consumer spending declined.

From a sector perspective, the consumer discretionary sector was the largest detractor from the Index’s performance. In addition to the unfavorable economic environment, high prices for fuel and increasing tax rates led to a decline in spending on discretionary items, which weakened the sector. The telecommunications services sector was another significant detractor from the Index’s return. In a weaker economic environment, businesses decreased spending on communications and technology, which weighed on revenues for telecommunication services companies.

The real estate and consumer staples sectors were also meaningful detractors from the Index’s return. The decline in the real estate sector was largely due to lower residential property prices, an oversupply of office space, and concerns about the accounting practices of a few real estate investment trusts. In the consumer staples sector, food-related industries declined due in part to a bacterial outbreak in processed meats. Declining prices for corn, wheat, and rice, especially early in the reporting period, also weighed on the food products industry.

On the upside, the financials sector was the largest contributor to the Index’s return. Despite the challenging economic environment, South African banks posted solid earnings, benefiting from successful cost-containment initiatives, innovative digital strategies, and operations in stronger-performing economies outside of South Africa.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Financials	31.9%
Consumer Discretionary	26.8
Materials	12.9
Consumer Staples	8.9
Real Estate	6.7
Telecommunication Services	5.6
Health Care	4.5
Industrials	1.7
Energy	1.0

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Naspers Ltd., Class N	21.2%
Sasol Ltd.	7.0
Standard Bank Group Ltd.	5.3
FirstRand Ltd.	5.2
MTN Group Ltd.	3.3
Old Mutual Ltd.	2.9
Sanlam Ltd.	2.8
Absa Group Ltd.	2.7
Aspen Pharmacare Holdings Ltd.	2.6
Remgro Ltd.	2.6

^(a) Excludes money market funds.

F U N D    S U M M A R Y 17

Fund Summary as of August 31, 2018 iShares^® MSCI Turkey ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(54.97	)%		(14.26	)%		(6.94	)%		(54.97	)%		(53.67	)%		(51.29	)%
Fund Market		(54.77	)		(13.96	)		(6.89	)		(54.77	)		(52.84	)		(51.03	)
Index		(54.88	)		(14.00	)		(6.64	)		(54.88	)		(52.96	)		(49.71	)

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 22 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        462.70	$        2.18			$      1,000.00	$      1,022.20	$        3.01		0.59	%

^(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Turkey ETF

Portfolio Management Commentary

The Turkish economy weakened in the second half of the reporting period, largely due to a sharp increase in the country’s inflation rate, which rose to nearly 18%. Consequently, both consumer and business confidence decreased. Escalating political tensions with the U.S. also weighed on Turkey’s economy, especially after the U.S. — the world’s largest buyer of Turkish steel — announced it would double tariffs on imports of Turkish metals. These factors directly contributed to Turkey’s currency crisis, in which the Turkish lira declined by 48% relative to the U.S. dollar during the reporting period, falling to an all-time low.

From a sector perspective, the financials sector, which represented approximately 33% of the Index on average during the reporting period, was the largest detractor from the Index’s performance. Financials stocks declined as Turkey’s currency crisis worsened and loan defaults increased, which ultimately led to credit rating downgrades for two dozen Turkish banks. Banks also faced concerns about whether corporate borrowers could repay their debts; many loans to companies were denominated in U.S. dollars or euros, but the revenues of these companies were earned in Turkish lira, which depreciated significantly in comparison.

The industrials sector also detracted meaningfully from the Index’s return, as industrial production in Turkey weakened throughout the reporting period. In addition, many Turkish industrial companies have debt denominated in foreign currencies, which created balance sheet concerns as the Turkish lira declined. The consumer staples sector was another notable detractor from the Index’s performance. Historically, rising interest rates and higher inflation, both of which were prominent in Turkey during the reporting period, have adversely affected consumer staples stocks.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Financials	24.8%
Industrials	24.1
Materials	16.1
Consumer Staples	12.2
Energy	7.3
Consumer Discretionary	6.5
Telecommunication Services	5.5
Real Estate	1.5
Utilities	1.1
Other (each representing less than 1%)	0.9

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Eregli Demir ve Celik Fabrikalari TAS	7.9%
BIM Birlesik Magazalar AS	7.4
Tupras Turkiye Petrol Rafinerileri AS	7.0
Turkiye Garanti Bankasi AS	6.5
Akbank Turk AS	6.0
Turkcell Iletisim Hizmetleri AS	5.5
KOC Holding AS	5.4
Turk Hava Yollari AO	4.3
Aselsan Elektronik Sanayi Ve Ticaret AS	4.2
Haci Omer Sabanci Holding AS	3.1

^(a) Excludes money market funds.

F U N D    S U M M A R Y 19

Fund Summary as of August 31, 2018 iShares^® MSCI USA Equal Weighted ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		17.55	%		13.06	%		13.06	%		17.55	%		84.77	%		177.90	%
Fund Market		17.50			13.07			13.06			17.50			84.78			177.85
Index		17.72			13.22			13.24			17.72			86.04			181.46

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.

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 22 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        1,076.80	$        0.79			$      1,000.00	$      1,024.40	$        0.77		0.15	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 22 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI USA Equal Weighted ETF

Portfolio Management Commentary

The information technology sector was the largest contributor to the Index’s return for the reporting period. The improving U.S. economy supported the sector, which posted strong earnings as businesses increased spending on technology products and services. Information technology companies also benefited from federal tax reform legislation as rules encouraging the repatriation of cash held overseas led to increased investment and stock buybacks. Within the sector, the software and services industry led contributions to the Index’s return, driven by increased adoption of cloud-based computing and the move to platform-based subscription models. The technology hardware and equipment industry also contributed significantly to the Index’s return, with communications equipment manufacturers benefiting from increased demand for cybersecurity products.

Strong economic conditions also supported the consumer discretionary sector, which was a solid contributor to the Index’s performance. The sector benefited from steady consumer spending growth as wages began to increase. Rising sales, both online and at brick-and-mortar stores, led to increases in the retail industry, while consumer durables companies benefited from increased apparel sales.

The industrials sector contributed significantly to the Index’s return, as U.S. industrial production grew despite increasing international trade tensions. Prompted by tax cuts and large cash reserves, U.S. companies increased their capital expenditures, with investments in equipment and machinery benefiting the capital goods industry. Transportation stocks also contributed to the Index’s return amid growing demand for freight services as the economy strengthened.

Rising oil prices helped the energy sector contribute meaningfully to the Index’s return, with improving global economic growth driving demand for energy. The financials sector also contributed to the Index’s performance as capital markets companies benefited from increased merger activity and data-driven demand for business information services.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Information Technology	16.6	%
Consumer Discretionary	14.9
Financials	14.4
Industrials	14.1
Health Care	11.3
Real Estate	6.2
Energy	6.1
Consumer Staples	5.5
Utilities	5.2
Materials	4.8
Telecommunication Services	0.9

TEN LARGEST HOLDINGS
Security	Percent of Total Investments(	a)
Square Inc., Class A	0.2	%
Lululemon Athletica Inc.	0.2
Alnylam Pharmaceuticals Inc.	0.2
Ulta Salon Cosmetics & Fragrance Inc.	0.2
ABIOMED Inc.	0.2
Splunk Inc.	0.2
PG&E Corp.	0.2
Regeneron Pharmaceuticals Inc.	0.2
Apple Inc.	0.2
IPG Photonics Corp.	0.2

^(a) Excludes money market funds.

F U N D    S U M M A R Y 21

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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Schedule of Investments	iShares® MSCI Brazil ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 1.2%
Embraer SA		14,001,587	$	66,607,875
Banks — 5.0%
Banco Bradesco SA		13,381,524		81,553,862
Banco do Brasil SA		16,769,487		122,511,968
Banco Santander Brasil SA, NVS		8,639,375		72,552,214
				276,618,044
Beverages — 4.4%
Ambev SA		53,553,555		245,014,566
Capital Markets — 3.8%
B3 SA - Brasil, Bolsa, Balcao		39,897,177		210,713,956
Containers & Packaging — 1.4%
Klabin SA, NVS		14,484,900		75,059,492
Diversified Consumer Services — 1.3%
Kroton Educacional SA		28,458,619		70,592,240
Electric Utilities — 2.0%
Centrais Eletricas Brasileiras SA(a)		6,414,500		24,629,837
EDP - Energias do Brasil SA		8,569,345		27,891,293
Equatorial Energia SA		4,023,500		55,663,576
				108,184,706
Food & Staples Retailing — 2.3%
Atacadao Distribuicao Comercio e Industria Ltda		10,057,000		35,491,561
Raia Drogasil SA		4,789,200		89,504,721
				124,996,282
Food Products — 2.4%
BRF SA(a)		11,210,150		54,770,593
JBS SA		21,119,607		48,184,342
M. Dias Branco SA		2,722,800		27,960,891
				130,915,826
Health Care Providers &Services — 0.3%
Odontoprev SA		4,685,565		14,897,915
Independent Power and Renewable Electricity Producers — 0.7%
Engie Brasil Energia SA		4,048,475		36,258,520
Insurance — 3.5%
BB Seguridade Participacoes SA		14,148,895		84,067,122
IRB Brasil Resseguros S/A		2,749,900		39,672,351
Porto Seguro SA		2,747,720		36,599,809
Sul America SA, NVS		5,731,249		31,952,329
				192,291,611
IT Services — 1.6%
Cielo SA		24,261,996		88,919,235
Machinery — 1.4%
WEG SA		17,150,781		79,674,267
Metals & Mining — 13.5%
Cia. Siderurgica Nacional SA(a)		15,853,269		33,783,573
Vale SA		54,676,232		711,570,001
				745,353,574
Multiline Retail — 2.8%
Lojas Renner SA		14,255,790		97,850,475
Magazine Luiza SA		1,717,600		54,299,022
				152,149,497

Security	Shares		Value
Oil, Gas & Consumable Fuels — 6.2%
Cosan SA		3,890,950	$	32,864,508
Petroleo Brasileiro SA		43,801,369		234,735,620
Ultrapar Participacoes SA		7,301,255		72,957,615
				340,557,743
Paper & Forest Products — 3.7%
Fibria Celulose SA		5,219,951		100,316,915
Suzano Papel e Celulose SA		9,146,930		105,031,736
				205,348,651
Personal Products — 0.6%
Natura Cosmeticos SA		4,594,165		32,336,784
Pharmaceuticals — 0.9%
Hypera SA		7,607,500		50,592,340
Real Estate Management & Development — 1.3%
BR Malls Participacoes SA(a)		18,531,438		41,154,986
Multiplan Empreendimentos Imobiliarios SA		6,966,438		31,500,386
				72,655,372
Road & Rail — 2.5%
Localiza Rent a Car SA		10,717,131		56,003,454
Rumo SA(a)		22,929,190		79,192,829
				135,196,283
Specialty Retail — 0.3%
Petrobras Distribuidora SA		3,347,600		16,071,340
Transportation Infrastructure — 1.0%
CCR SA		25,395,465		57,693,151
Water Utilities — 0.8%
Cia. de Saneamento Basico do Estado de Sao Paulo		7,590,900		44,954,724
Wireless Telecommunication Services — 1.0%
TIM Participacoes SA		18,388,225		54,850,922
Total Common Stocks — 65.9% (Cost: $3,132,518,957)				3,628,504,916
Preferred Stocks
Banks — 20.3%
Banco Bradesco SA, Preference Shares, NVS		56,320,089		387,943,042
Itau Unibanco Holding SA, Preference Shares, NVS		55,379,998		568,168,859
Itausa-Investimentos Itau SA, Preference Shares, NVS		67,938,927		158,135,557
				1,114,247,458
Chemicals — 1.0%
Braskem SA, Class A, Preference Shares, NVS		4,028,556		57,894,420
Diversified Telecommunication Services — 1.6%
Telefonica Brasil SA, Preference Shares, NVS		8,998,064		87,401,403
Electric Utilities — 1.2%
Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS(a)		6,152,746		27,029,611
Cia. Energetica de Minas Gerais, Preference Shares, NVS		20,741,970		37,556,151
				64,585,762
Food & Staples Retailing — 1.3%
Cia. Brasileira de Distribuicao, Preference Shares, NVS		3,520,564		69,785,797
Metals & Mining — 1.5%
Gerdau SA, Preference Shares, NVS		21,402,926		83,323,932

S C H E D U L E    O F    I N V E S T M E N T S 23

Schedule of Investments  (continued)	iShares® MSCI Brazil ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Multiline Retail — 1.1%
Lojas Americanas SA, Preference Shares, NVS		15,917,617	$	60,269,126
Oil, Gas & Consumable Fuels — 5.0%
Petroleo Brasileiro SA, Preference Shares, NVS		59,430,983		277,818,678
Total Preferred Stocks — 33.0% (Cost: $1,438,832,240)				1,815,326,576
Short-Term Investments
Money Market Funds — 0.1%
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(b)(c)		3,435,968		3,435,968
Total Short-Term Investments — 0.1% (Cost: $3,435,968)				3,435,968
Total Investments in Securities — 99.0% (Cost: $4,574,787,165)				5,447,267,460
Other Assets, Less Liabilities — 1.0%				53,763,752
Net Assets — 100.0%			$	5,501,031,212

^(a) Non-income producing security.

^(b) Affiliate of the Fund.

^(c) Annualized 7-day yield as of period-end.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity	Shares Held at 08/31/18		Value at 08/31/18		Income		Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Treasury, SL Agency Shares	16,859	3,419,109	3,435,968	$	3,435,968	$	84,174	$	—		$	—
(a)   Includes realized capital gain distributions from an affiliated fund, if any.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Emerging Markets E-Mini		1,111		09/21/18	$	58,600	$	(1,329,597	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	1,329,597

^(a) Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

24 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Brazil ETF
August 31, 2018

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss)from:
Futures contracts	$	1,024,243
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(1,329,597	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	42,040,568

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	3,628,504,916		$	—	$	—	$	3,628,504,916
Preferred Stocks		1,815,326,576			—		—		1,815,326,576
Money Market Funds		3,435,968			—		—		3,435,968
	$	5,447,267,460		$	—	$	—	$	5,447,267,460
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(1,329,597	)	$	—	$	—	$	(1,329,597	)

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

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 25

Schedule of Investments	iShares® MSCI Chile ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Airlines — 4.2%
Latam Airlines Group SA		1,767,130	$	16,616,976
Banks — 18.8%
Banco de Chile		114,166,135		16,516,615
Banco de Credito e Inversiones SA		270,498		17,318,493
Banco Santander Chile		390,761,323		30,017,568
Itau CorpBanca		1,083,103,976		10,271,701
				74,124,377
Beverages — 4.9%
Cia. Cervecerias Unidas SA		997,897		13,197,297
Vina Concha y Toro SA		3,001,032		5,878,833
				19,076,130
Capital Markets — 0.6%
Sociedad de Inversiones Oro Blanco SA		360,982,920		2,424,383
Construction & Engineering — 1.9%
Besalco SA		3,723,845		3,327,233
Salfacorp SA		2,758,878		4,243,520
				7,570,753
Diversified Financial Services — 1.2%
Inversiones La Construccion SA		299,586		4,797,970
Electric Utilities — 12.4%
Enel Americas SA		170,091,450		25,364,812
Enel Chile SA		163,541,962		16,044,944
Engie Energia Chile SA		3,903,491		7,171,292
				48,581,048
Food & Staples Retailing — 5.2%
Cencosud SA		7,213,233		17,162,437
SMU SA(a)		11,899,216		3,363,133
				20,525,570
Independent Power and Renewable Electricity Producers — 4.4%
AES Gener SA		22,481,930		5,689,555
Colbun SA		54,183,187		11,458,579
				17,148,134
IT Services — 1.2%
SONDA SA		3,702,818		4,882,331
Marine — 0.3%
Cia. Sud Americana de Vapores SA(a)		37,624,259		1,123,361
Metals & Mining — 1.4%
CAP SA		596,431		5,389,314
Multiline Retail — 10.0%
Ripley Corp. SA		5,637,650		4,821,335
SACI Falabella		4,326,813		34,531,569
				39,352,904

Security	Shares		Value
Oil, Gas & Consumable Fuels — 9.6%
Empresas COPEC SA		2,462,038	$	37,727,835
Paper & Forest Products — 4.7%
Empresas CMPC SA		4,658,323		18,426,553
Real Estate Management & Development — 2.6%
Parque Arauco SA		4,073,639		10,225,766
Specialty Retail — 0.3%
Empresas Tricot SA		775,649		1,184,359
Textiles, Apparel & Luxury Goods — 0.6%
Forus SA		940,899		2,527,654
Water Utilities — 3.7%
Aguas Andinas SA, Class A		18,131,891		9,761,239
Inversiones Aguas Metropolitanas SA		3,293,745		4,767,401
				14,528,640
Wireless Telecommunication Services — 2.2%
Empresa Nacional de Telecomunicaciones SA		1,050,780		8,641,270
Total Common Stocks — 90.2%     (Cost: $266,206,501)				354,875,328
Preferred Stocks
Beverages — 1.8%
Embotelladora Andina SA, Class B, Preference Shares		1,887,920		7,300,598
Chemicals — 7.9%
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares		713,255		30,986,853
Total Preferred Stocks — 9.7%     (Cost: $24,912,282)				38,287,451
Short-Term Investments
Money Market Funds — 0.1%
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(b)(c)		280,439		280,439
Total Short-Term Investments — 0.1%     (Cost: $280,439)				280,439
Total Investments in Securities — 100.0%     (Cost: $291,399,222)				393,443,218
Other Assets, Less Liabilities — (0.0)%				(92,030	)
Net Assets — 100.0%			$	393,351,188

^(a)  Non-income producing security.

^(b)  Affiliate of the Fund.

^(c)  Annualized 7-day yield as of period-end.

26 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Chile ETF
August 31, 2018

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity	Shares Held at 08/31/18		Value at 08/31/18		Income		Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Treasury, SL Agency Shares	227,709	52,730	280,439	$	280,439	$	10,825	$	—		$	—

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	354,875,328	$	—	$	—	$	354,875,328
Preferred Stocks		38,287,451		—		—		38,287,451
Money Market Funds		280,439		—		—		280,439
	$	393,443,218	$	—	$	—	$	393,443,218

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 27

Schedule of Investments	iShares® MSCI Colombia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Banks — 7.0%
Banco de Bogota SA		6,475	$	146,256
Bancolombia SA		149,887		1,609,390
Grupo Aval Acciones y Valores SA		154,660		60,502
				1,816,148
Capital Markets — 2.0%
Bolsa de Valores de Colombia		134,924		518,538
Construction & Engineering — 0.8%
Constructora Conconcreto SA		1,490,138		206,343
Construction Materials — 10.5%
Cementos Argos SA		267,658		790,333
Cemex Latam Holdings SA(a)		362,674		747,964
Grupo Argos SA/Colombia		186,286		1,164,762
				2,703,059
Diversified Financial Services — 5.1%
Corp. Financiera Colombiana SA(a)		25,160		199,155
Grupo de Inversiones Suramericana SA		94,831		1,117,574
				1,316,729
Diversified Telecommunication Services — 1.6%
Empresa de Telecomunicaciones de Bogota(a)		3,700,019		411,819
Electric Utilities — 8.5%
Celsia SA ESP		206,090		305,281
Enel Americas SA		4,950,156		738,190
Interconexion Electrica SA ESP		263,662		1,166,938
				2,210,409
Food &Staples Retailing — 4.5%
Almacenes Exito SA		222,037		1,152,795
Food Products — 4.6%
Grupo Nutresa SA		134,865		1,177,901
Gas Utilities — 4.8%
Grupo Energia Bogota SA ESP		1,777,850		1,190,179
Promigas SA ESP		25,086		57,813
				1,247,992
Metals & Mining — 1.6%
Mineros SA		571,946		414,718
Oil, Gas &Consumable Fuels — 21.2%
Canacol Energy Ltd.(a)		265,031		843,498
Ecopetrol SA		3,445,588		3,857,563

Security	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Empresas COPEC SA		50,542	$	774,497
				5,475,558
Total Common Stocks — 72.2% (Cost: $17,042,612)				18,652,009
Preferred Stocks
Airlines — 2.5%
Avianca Holdings SA, Preference Shares, NVS		915,695		638,490
Banks — 21.0%
Banco Davivienda SA, Preference Shares		104,562		1,215,138
Bancolombia SA, Preference Shares, NVS		315,351		3,427,330
Grupo Aval Acciones y Valores SA, Preference Shares, NVS		1,996,224		784,177
				5,426,645
Construction Materials — 3.3%
Cementos Argos SA, Preference Shares		71,373		179,907
Grupo Argos SA/Colombia, Preference Shares		118,400		686,039
				865,946
Diversified Financial Services — 0.4%
Grupo de Inversiones Suramericana SA, Preference Shares, NVS		8,723		100,915
Total Preferred Stocks — 27.2% (Cost: $6,428,475)				7,031,996
Short-Term Investments
Money Market Funds — 0.2%
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(b)(c)		43,489		43,489
Total Short-Term Investments — 0.2% (Cost: $43,489)				43,489
Total Investments in Securities — 99.6% (Cost: $23,514,576)				25,727,494
Other Assets, Less Liabilities — 0.4%				106,787
Net Assets — 100.0%			$	25,834,281

^(a)  Non-income producing security.

^(b)  Affiliate of the Fund.

^(c)  Annualized 7-day yield as of period-end.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity		08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		59,106	(59,106)		—	$	—	$	806	(b)	$	(15	)	$	4
BlackRock Cash Funds: Treasury, SL Agency Shares		57,311	(13,822)		43,489		43,489		509			—			—
						$	43,489	$	1,315		$	(15	)	$	4

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

28 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Colombia ETF
August 31, 2018

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	18,652,009	$	—	$	—	$	18,652,009
Preferred Stocks		7,031,996		—		—		7,031,996
Money Market Funds		43,489		—		—		43,489
	$	25,727,494	$	—	$	—	$	25,727,494

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 29

Schedule of Investments	iShares® MSCI Israel ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 2.6%
Elbit Systems Ltd.		24,247	$	3,133,774
Banks — 20.3%
Bank Hapoalim BM		1,005,829		7,550,564
Bank Leumi Le-Israel BM		1,374,517		9,252,805
First International Bank of Israel Ltd.		48,996		1,137,033
Israel Discount Bank Ltd., Class A		1,172,753		4,105,319
Mizrahi Tefahot Bank Ltd.		146,125		2,642,461
				24,688,182
Biotechnology — 0.1%
UroGen Pharma Ltd.(a)		2,461		118,940
Building Products — 0.4%
Caesarstone Ltd.		25,850		489,858
Chemicals — 7.2%
Frutarom Industries Ltd.		38,992		3,986,513
Israel Chemicals Ltd.		610,203		3,571,978
Israel Corp. Ltd. (The)		3,971		1,197,015
				8,755,506
Communications Equipment — 1.6%
Ituran Location and Control Ltd.		20,173		687,899
Radware Ltd.(a)		45,116		1,249,713
				1,937,612
Construction & Engineering — 1.3%
Elco Holdings Ltd.		5,807		106,286
Electra Ltd./Israel		2,315		584,120
Shapir Engineering and Industry Ltd.		124,012		407,585
Shikun & Binui Ltd.(a)		250,825		528,005
				1,625,996
Diversified Telecommunication Services — 2.3%
B Communications Ltd.(a)		19,308		193,863
Bezeq The Israeli Telecommunication Corp. Ltd.		2,158,443		2,584,567
				2,778,430
Electronic Equipment, Instruments &Components — 2.5%
Orbotech Ltd.(a)		47,445		3,035,531
Equity Real Estate Investment Trusts (REITs) — 0.6%
REIT 1 Ltd.		194,000		787,987
Food & Staples Retailing — 0.8%
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.		8,382		428,252
Shufersal Ltd.		88,477		582,816
				1,011,068
Food Products — 0.9%
Strauss Group Ltd.		50,862		1,123,248
Health Care Equipment &Supplies — 0.6%
Mazor Robotics Ltd.(a)		31,216		751,650
Household Durables — 2.1%
SodaStream International Ltd.(a)		17,533		2,502,836
Independent Power and Renewable Electricity Producers — 0.3%
Kenon Holdings Ltd./Singapore		24,030		388,216
Insurance — 2.8%
Clal Insurance Enterprises Holdings Ltd.(a)		26,678		463,237
Harel Insurance Investments & Financial Services Ltd.		126,041		1,030,907
IDI Insurance Co. Ltd.		8,453		515,249

Security	Shares		Value
Insurance (continued)
Menora Mivtachim Holdings Ltd.		34,581	$	410,238
Migdal Insurance & Financial Holding Ltd.		480,682		516,552
Phoenix Holdings Ltd. (The)		87,781		498,727
				3,434,910
Internet Software &Services — 3.2%
Wix.com Ltd.(a)(b)		34,721		3,857,503
IT Services — 0.6%
Formula Systems 1985 Ltd.		5,033		208,904
Matrix IT Ltd.		44,465		529,840
				738,744
Machinery — 0.6%
Kornit Digital Ltd.(a)(b)		33,494		701,699
Oil, Gas & Consumable Fuels — 3.1%
Delek Group Ltd.		4,830		746,628
Jerusalem Oil Exploration(a)		10,717		601,169
Naphtha Israel Petroleum Corp. Ltd.		50,526		320,048
Oil Refineries Ltd.		1,643,410		862,478
Paz Oil Co. Ltd.		7,844		1,216,894
				3,747,217
Pharmaceuticals — 16.7%
Teva Pharmaceutical Industries Ltd., ADR, NVS		890,222		20,394,986
Real Estate Management & Development — 7.8%
Africa Israel Properties Ltd.(a)		17,923		472,389
Airport City Ltd.(a)		89,129		1,081,362
Alony Hetz Properties & Investments Ltd.		116,204		1,220,345
Amot Investments Ltd.		145,980		770,173
Azrieli Group Ltd.		44,715		2,326,810
Bayside Land Corp.		953		427,863
Big Shopping Centers Ltd.		2,768		192,254
Blue Square Real Estate Ltd.		4,309		168,558
Brack Capital Properties NV(a)		983		113,366
Gazit-Globe Ltd.		109,676		1,008,578
Industrial Buildings Corp. Ltd.(a)		87,827		123,881
Jerusalem Economy Ltd.(a)		80,840		221,651
Melisron Ltd.		20,067		888,097
Norstar Holdings Inc.		17,827		313,510
Summit Real Estate Holdings Ltd.		12,933		126,477
				9,455,314
Semiconductors & Semiconductor Equipment — 1.9%
Nova Measuring Instruments Ltd.(a)		10,527		312,938
Tower Semiconductor Ltd.(a)		91,544		2,000,329
				2,313,267
Software — 18.1%
Check Point Software Technologies Ltd.(a)(b)		121,946		14,168,906
CyberArk Software Ltd.(a)(b)		26,600		2,006,172
Nice Ltd.(a)		47,410		5,468,865
Sapiens International Corp. NV		34,837		416,565
				22,060,508
Specialty Retail — 0.3%
Delek Automotive Systems Ltd.		51,616		308,887
Textiles, Apparel & Luxury Goods — 0.3%
Delta-Galil Industries Ltd.(b)		12,510		369,107
Wireless Telecommunication Services — 0.9%
Cellcom Israel Ltd.(a)		83,837		493,789

30 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Israel ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Wireless Telecommunication Services (continued)
Partner Communications Co. Ltd.(a)		134,794	$	603,678
				1,097,467
Total Common Stocks — 99.9% (Cost: $119,123,078)				121,608,443
Short-Term Investments
Money Market Funds — 5.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(c)(d)(e)		7,120,644		7,122,781
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		15,507		15,507
				7,138,288
Total Short-Term Investments — 5.9% (Cost: $7,137,287)				7,138,288
Total Investments in Securities — 105.8% (Cost: $126,260,365)				128,746,731
Other Assets, Less Liabilities — (5.8)%				(7,011,361	)
Net Assets — 100.0%			$	121,735,370

^(a)  Non-income producing security.

^(b) All or a portion of this security is on loan.

^(c) Affiliate of the Fund.

^(d)  Annualized 7-day yield as of period-end.

^(e) All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity		08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		15,525,641	(8,404,997)		7,120,644	$	7,122,781	$	55,062	(b)	$	(1,234	)	$	455
BlackRock Cash Funds: Treasury, SL Agency Shares		40,997	(25,490)		15,507		15,507		652			—			—
						$	7,138,288	$	55,714		$	(1,234	)	$	455

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	121,608,443	$	—	$	—	$	121,608,443
Money Market Funds		7,138,288		—		—		7,138,288
	$	128,746,731	$	—	$	—	$	128,746,731

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 31

Schedule of Investments	iShares® MSCI Russia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Banks — 15.5%
Sberbank of Russia PJSC		17,691,520	$	47,805,159
Sberbank of Russia PJSC, ADR		1,832,921		19,896,357
VTB Bank PJSC		9,605,425,016		5,904,120
VTB Bank PJSC, GDR, NVS(a)		643,794		811,180
				74,416,816
Capital Markets — 2.0%
Moscow Exchange MICEX-RTS PJSC		6,722,770		9,785,652
Chemicals — 2.0%
PhosAgro PJSC, GDR, NVS(a)		709,044		9,394,833
Electric Utilities — 3.6%
Inter RAO UES PJSC		170,158,000		10,206,385
RusHydro PJSC		750,550,000		7,097,234
				17,303,619
Food & Staples Retailing — 6.1%
Magnit PJSC, GDR, NVS(a)		1,216,219		17,963,554
X5 Retail Group NV, GDR(a)		479,188		11,312,049
				29,275,603
Metals & Mining — 18.0%
Alrosa PJSC		10,917,800		16,434,953
Magnitogorsk Iron &Steel Works PJSC		13,144,700		9,454,485
MMC Norilsk Nickel PJSC		134,473		22,400,936
Novolipetsk Steel PJSC		5,438,920		13,377,302
Polyus PJSC		148,775		9,659,345
Severstal PJSC		924,005		14,899,866
				86,226,887
Oil, Gas &Consumable Fuels — 46.2%
Gazprom PJSC, ADR, NVS		679,528		2,996,718
Gazprom PJSC		27,186,820		60,526,157
LUKOIL PJSC		1,114,955		77,810,753
LUKOIL PJSC, ADR, NVS		33,931		2,341,239
Novatek PJSC, GDR, NVS(a)		140,211		23,415,237
Rosneft Oil Co. PJSC, GDR, NVS(a)		2,035,359		12,969,307
Rosneft Oil Co. PJSC		1,363,360		8,819,345

Security	Shares		Value
Oil, Gas &Consumable Fuels (continued)
Surgutneftegas PJSC, ADR, NVS		204,210	$	849,514
Surgutneftegas PJSC		22,211,546		9,477,718
Tatneft PJSC		1,886,645		21,935,404
				221,141,392
Wireless Telecommunication Services — 3.2%
Mobile TeleSystems PJSC, ADR, NVS		1,974,943		15,305,808
Total Common Stocks — 96.6% (Cost: $502,609,548)				462,850,610
Preferred Stocks
Oil, Gas &Consumable Fuels — 3.4%
Surgutneftegas PJSC, Preference Shares, NVS		22,642,600		12,579,643
Transneft PJSC, Preference Shares		1,655		3,501,475
				16,081,118
Total Preferred Stocks — 3.4% (Cost: $16,555,046)				16,081,118
Short-Term Investments
Money Market Funds — 0.1%
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(b)(c)		349,697		349,697
Total Short-Term Investments — 0.1% (Cost: $349,697)				349,697
Total Investments in Securities — 100.1% (Cost: $519,514,291)				479,281,425
Other Assets, Less Liabilities — (0.1)%				(421,602	)
Net Assets — 100.0%			$	478,859,823

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

^(b)  Affiliate of the Fund.

^(c)  Annualized 7-day yield as of period-end.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at			Shares Held at		Value at				Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity		08/31/18		08/31/18		Income		Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Treasury, SL Agency Shares		1,026,049	(676,352)		349,697	$	349,697	$	27,321	$	—		$	—

^(a) Includes realized capital gain distributions from an affiliated fund, if any.

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, refer to the Notes to Financial Statements.

32 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Russia ETF
August 31, 2018

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	462,850,610	$	—	$	—	$	462,850,610
Preferred Stocks		16,081,118		—		—		16,081,118
Money Market Funds		349,697		—		—		349,697
	$	479,281,425	$	—	$	—	$	479,281,425

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 33

Schedule of Investments	iShares® MSCI South Africa ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Banks — 10.6%
Absa Group Ltd.		898,420	$	9,967,626
Capitec Bank Holdings Ltd.		60,174		4,118,384
Nedbank Group Ltd.		302,964		5,748,174
Standard Bank Group Ltd.		1,545,748		19,659,393
				39,493,577
Capital Markets — 1.9%
Coronation Fund Managers Ltd.		407,140		1,599,243
Investec Ltd.		442,105		2,901,953
Reinet Investments SCA		128,313		2,495,102
				6,996,298
Chemicals — 7.0%
Sasol Ltd.		660,261		25,957,535
Distributors — 0.8%
Imperial Holdings Ltd.		225,017		3,166,556
Diversified Financial Services — 10.3%
FirstRand Ltd.		4,053,816		19,561,798
PSG Group Ltd.		230,087		3,534,086
Remgro Ltd.		664,587		9,725,730
RMB Holdings Ltd.		975,139		5,610,730
				38,432,344
Diversified Telecommunication Services — 0.5%
Telkom SA SOC Ltd.		524,609		1,800,706
Equity Real Estate Investment Trusts (REITs) — 5.3%
Fortress REIT Ltd., Series A		1,946,648		2,190,955
Fortress REIT Ltd., Series B		1,441,913		1,554,968
Growthpoint Properties Ltd.		3,866,638		6,713,917
Hyprop Investments Ltd.		394,721		2,747,994
Redefine Properties Ltd.		7,078,358		5,000,324
Resilient REIT Ltd.		449,145		1,747,071
				19,955,229
Food & Staples Retailing — 7.3%
Bid Corp. Ltd.		428,743		9,176,659
Clicks Group Ltd.		239,449		3,317,679
Pick n Pay Stores Ltd.		575,057		2,845,602
Shoprite Holdings Ltd.		559,787		7,794,321
SPAR Group Ltd. (The)		283,222		3,962,837
				27,097,098
Food Products — 1.6%
Pioneer Foods Group Ltd.		239,751		1,726,387
Tiger Brands Ltd.		221,708		4,331,941
				6,058,328
Health Care Providers & Services — 1.9%
Life Healthcare Group Holdings Ltd.		2,002,455		3,643,747
Netcare Ltd.		1,650,858		3,307,068
				6,950,815
Industrial Conglomerates — 1.8%
Bidvest Group Ltd. (The)		444,059		6,546,659
Insurance — 9.1%
Discovery Ltd.		491,420		5,876,748
Liberty Holdings Ltd.		237,279		1,885,276
MMI Holdings Ltd./South Africa		1,618,316		1,894,317
Old Mutual Ltd.(a)		5,285,316		10,966,546

Security	Shares		Value
Insurance (continued)
Rand Merchant Investment Holdings Ltd.		1,061,150	$	2,957,930
Sanlam Ltd.		1,906,216		10,322,612
				33,903,429
Media — 21.2%
Naspers Ltd., Class N		354,044		78,916,562
Metals & Mining — 3.3%
Anglo American Platinum Ltd.		94,551		2,774,980
AngloGold Ashanti Ltd.		578,320		4,653,796
Gold Fields Ltd.		1,184,068		2,909,407
Kumba Iron Ore Ltd.		108,988		1,971,957
				12,310,140
Multiline Retail — 1.3%
Woolworths Holdings Ltd./South Africa		1,357,055		5,022,064
Oil, Gas &Consumable Fuels — 1.0%
Exxaro Resources Ltd.		367,584		3,734,485
Paper & Forest Products — 2.6%
Mondi Ltd.		168,564		4,719,389
Sappi Ltd.		736,058		5,043,451
				9,762,840
Pharmaceuticals — 2.6%
Aspen Pharmacare Holdings Ltd.		490,039		9,747,098
Real Estate Management & Development — 1.3%
NEPI Rockcastle PLC		524,004		5,007,120
Specialty Retail — 3.4%
Foschini Group Ltd. (The)		321,016		3,825,352
Mr. Price Group Ltd.		332,900		5,120,088
Truworths International Ltd.		634,492		3,726,077
				12,671,517
Wireless Telecommunication Services — 5.1%
MTN Group Ltd.		2,051,663		12,461,564
Vodacom Group Ltd.		782,630		6,751,411
				19,212,975
Total Common Stocks — 99.9% (Cost: $468,056,296)				372,743,375
Short-Term Investments
Money Market Funds — 0.0%
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(b)(c)		173,320		173,320
Total Short-Term Investments — 0.0% (Cost: $173,320)				173,320
Total Investments in Securities — 99.9% (Cost: $468,229,616)				372,916,695
Other Assets, Less Liabilities — 0.1%				197,236
Net Assets — 100.0%			$	373,113,931

^(a) Non-income producing security.

^(b) Affiliate of the Fund.

^(c) Annualized 7-day yield as of period-end.

34 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI South Africa ETF
August 31, 2018

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		—	0	(b)		—	$	—	$	26,469	(c)	$	(1,144	)	$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		225,602	(52,282	)		173,320		173,320		4,094			—			—
							$	173,320	$	30,563		$	(1,144	)	$	—

^(a) Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Net of purchases and sales.

^(c)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	372,743,375	$	—	$	—	$	372,743,375
Money Market Funds		173,320		—		—		173,320
	$	372,916,695	$	—	$	—	$	372,916,695

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 35

Schedule of Investments	iShares® MSCI Turkey ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 4.2%
Aselsan Elektronik Sanayi Ve Ticaret AS		4,149,299	$	16,178,021
Airlines — 4.7%
Pegasus Hava Tasimaciligi AS(a)(b)		430,883		1,551,172
Turk Hava Yollari AO(a)		6,697,918		16,466,021
				18,017,193
Auto Components — 0.2%
Kordsa Teknik Tekstil AS(b)		707,281		929,192
Automobiles — 3.6%
Ford Otomotiv Sanayi AS		851,399		8,607,522
Tofas Turk Otomobil Fabrikasi AS		1,516,921		5,245,572
				13,853,094
Banks — 20.5%
Akbank Turk AS		26,685,670		23,211,063
Albaraka Turk Katilim Bankasi AS(b)		3,847,394		732,035
Turkiye Garanti Bankasi AS		28,020,020		25,175,600
Turkiye Halk Bankasi AS(b)		7,582,361		7,030,193
Turkiye Is Bankasi AS, Class C		19,107,293		11,512,416
Turkiye Sinai Kalkinma Bankasi AS		15,229,483		1,747,806
Turkiye Vakiflar Bankasi TAO, Class D		9,101,531		4,755,377
Yapi ve Kredi Bankasi AS(a)(b)		20,492,398		5,198,721
				79,363,211
Beverages — 3.1%
Anadolu Efes Biracilik Ve Malt Sanayii AS		2,514,482		7,935,773
Coca-Cola Icecek AS		925,998		3,993,583
				11,929,356
Building Products — 0.9%
Trakya Cam Sanayii AS		5,302,368		3,458,980
Capital Markets — 0.3%
Verusa Holding AS(b)		293,131		1,244,719
Chemicals — 4.2%
Petkim Petrokimya Holding AS		10,011,684		8,330,156
Sasa Polyester Sanayi AS(a)(b)		1,459,558		2,078,392
Soda Sanayii AS		4,854,145		5,937,344
				16,345,892
Construction & Engineering — 2.0%
Tekfen Holding AS		2,469,478		7,629,661
Construction Materials — 0.5%
Akcansa Cimento AS		580,311		838,624
Cimsa Cimento Sanayi VE Ticaret AS		653,447		996,612
				1,835,236
Containers & Packaging — 0.3%
Anadolu Cam Sanayii AS		2,290,073		1,130,815
Diversified Financial Services — 3.1%
Haci Omer Sabanci Holding AS		11,141,143		11,978,548
Equity Real Estate Investment Trusts (REITs) — 1.5%
Emlak Konut Gayrimenkul Yatirim Ortakligi AS(b)		20,751,651		5,765,871
Food & Staples Retailing — 7.7%
BIM Birlesik Magazalar AS		2,577,715		28,415,296
Migros Ticaret AS(a)(b)		643,861		1,312,564
				29,727,860

Security	Shares		Value
Food Products — 1.1%
Ulker Biskuvi Sanayi AS(a)		1,867,645	$	4,182,442
Gas Utilities — 0.4%
Aygaz AS(b)		902,446		1,633,935
Health Care Providers & Services — 0.6%
MLP Saglik Hizmetleri AS(a)(b)(c)		1,004,247		1,569,551
Selcuk Ecza Deposu Ticaret ve Sanayi AS		1,896,191		890,506
				2,460,057
Household Durables — 1.8%
Arcelik AS		2,869,204		5,749,456
Vestel Elektronik Sanayi ve Ticaret AS(a)(b)		1,017,639		1,326,169
				7,075,625
Independent Power and Renewable Electricity Producers — 0.6%
Aksa Enerji Uretim AS(a)(b)		1,860,097		1,176,912
Zorlu Enerji Elektrik Uretim AS(a)		6,107,017		1,254,188
				2,431,100
Industrial Conglomerates — 9.0%
AG Anadolu Grubu Holding AS(b)		1,182,054		3,232,587
Alarko Holding AS(b)		939,577		678,195
Dogan Sirketler Grubu Holding AS(a)(b)		12,619,947		2,343,997
Enka Insaat ve Sanayi AS		1		1
KOC Holding AS		9,228,069		20,874,548
Turkiye Sise ve Cam Fabrikalari AS		8,191,376		7,619,597
				34,748,925
Insurance — 0.8%
Anadolu Anonim Turk Sigorta Sirketi		2,423,708		1,592,077
Anadolu Hayat Emeklilik AS		1,043,494		1,166,047
AvivaSA Emeklilik ve Hayat AS(b)		283,034		555,618
				3,313,742
Machinery —0.6%
Otokar Otomotiv Ve Savunma Sanayi AS(b)		102,492		1,101,957
Turk Traktor ve Ziraat Makineleri AS		162,893		1,120,185
				2,222,142
Metals & Mining — 11.1%
Borusan Mannesmann Boru Sanayi ve Ticaret AS(b)		509,790		597,375
Eregli Demir ve Celik Fabrikalari TAS		16,981,736		30,361,850
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class A(a)		2,494,841		1,171,649
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D(a)		8,048,118		5,116,475
Koza Altin Isletmeleri AS(a)(b)		554,870		3,686,705
Koza Anadolu Metal Madencilik Isletmeleri AS(a)(b)		2,347,886		2,038,634
				42,972,688
Oil, Gas & Consumable Fuels — 7.2%
Ipek Dogal Enerji Kaynaklari Arastirma Ve Uretim AS(a)(b)		1,247,112		917,126
Tupras Turkiye Petrol Rafinerileri AS		1,518,614		27,059,753
				27,976,879
Personal Products — 0.3%
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS		2,092,480		1,169,116
Software — 0.3%
Logo Yazilim Sanayi Ve Ticaret AS(a)(b)		198,373		1,012,497
Textiles, Apparel & Luxury Goods — 0.9%
Aksa Akrilik Kimya Sanayii AS		1,003,335		1,689,333
Mavi Giyim Sanayi Ve Ticaret AS, Class B(c)		436,267		1,665,420
				3,354,753

36 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Turkey ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Transportation Infrastructure — 2.8%
TAV Havalimanlari Holding AS		2,203,870	$	10,969,014
Wireless Telecommunication Services — 5.5%
Turkcell Iletisim Hizmetleri AS		13,342,740		21,357,249
Total Common Stocks — 99.8% (Cost: $707,823,905)				386,267,813
Short-Term Investments
Money Market Funds — 4.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		18,539,409		18,544,970
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		315,285		315,285
				18,860,255
Total Short-Term Investments — 4.9% (Cost: $18,856,194)				18,860,255
Total Investments in Securities — 104.7% (Cost: $726,680,099)				405,128,068
Other Assets, Less Liabilities — (4.7)%				(18,331,264	)
Net Assets — 100.0%			$	386,796,804

^(a) Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d) Affiliate of the Fund.

^(e) Annualized 7-day yield as of period-end.

^(f) All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity		08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		15,951,030	2,588,379		18,539,409	$	18,544,970	$	1,050,302	(b)	$	73		$	132
BlackRock Cash Funds: Treasury, SL Agency Shares		100,988	214,297		315,285		315,285		4,177			—			—
						$	18,860,255	$	1,054,479		$	73		$	132

^(a) Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	386,267,813	$	—	$	—	$	386,267,813
Money Market Funds		18,860,255		—		—		18,860,255
	$	405,128,068	$	—	$	—	$	405,128,068

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 37

Schedule of Investments	iShares® MSCI USA Equal Weighted ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 2.2%
Arconic Inc.		14,098	$	315,513
Boeing Co. (The)		881		301,998
General Dynamics Corp.		1,595		308,473
Harris Corp.		1,891		307,306
Huntington Ingalls Industries Inc.		1,241		303,387
L3 Technologies Inc.		1,468		313,741
Lockheed Martin Corp.		959		307,273
Northrop Grumman Corp.		1,038		309,833
Raytheon Co.		1,544		307,935
Rockwell Collins Inc.		2,270		308,606
Spirit AeroSystems Holdings Inc., Class A		3,575		305,663
Textron Inc.		4,491		310,014
TransDigm Group Inc.		866		303,100
United Technologies Corp.		2,298		302,647
				4,305,489
Air Freight & Logistics — 0.8%
CH Robinson Worldwide Inc.		3,219		309,282
Expeditors International of Washington Inc.		4,190		307,043
FedEx Corp.		1,252		305,425
United Parcel Service Inc., Class B		2,511		308,552
XPO Logistics Inc.(a)		2,901		308,956
				1,539,258
Airlines — 0.7%
American Airlines Group Inc.		7,869		318,537
Delta Air Lines Inc.		5,385		314,915
Southwest Airlines Co.		5,106		312,998
United Continental Holdings Inc.(a)		3,619		316,373
				1,262,823
Auto Components — 0.8%
Aptiv PLC		3,379		297,386
Autoliv Inc.		3,405		303,351
BorgWarner Inc.		6,774		296,498
Goodyear Tire & Rubber Co. (The)		12,756		289,434
Lear Corp.		1,845		299,259
				1,485,928
Automobiles — 0.6%
Ford Motor Co.		31,130		295,112
General Motors Co.		8,251		297,449
Harley-Davidson Inc.		7,146		304,562
Tesla Inc.(a)(b)		974		293,817
				1,190,940
Banks — 3.5%
Bank of America Corp.		9,933		307,228
BB&T Corp.		5,952		307,480
CIT Group Inc.		5,750		311,880
Citigroup Inc.		4,311		307,116
Citizens Financial Group Inc.		7,506		308,947
Comerica Inc.		3,146		306,672
East West Bancorp. Inc.		4,865		308,392
Fifth Third Bancorp.		10,457		307,750
First Republic Bank/CA		3,051		309,951
Huntington Bancshares Inc./OH		19,114		309,838
JPMorgan Chase &Co.		2,665		305,356
KeyCorp		14,621		308,064
M&T Bank Corp.		1,758		311,430
People’s United Financial Inc.		16,586		307,007
PNC Financial Services Group Inc. (The)(c)		2,134		306,314

Security	Shares		Value
Banks (continued)
Regions Financial Corp.		15,997	$	311,302
Signature Bank/New York NY		2,641		305,669
SunTrust Banks Inc.		4,163		306,230
SVB Financial Group(a)		939		303,062
U.S. Bancorp		5,710		308,968
Wells Fargo & Co.		5,262		307,722
Zions BanCorp.		5,795		308,816
				6,775,194
Beverages — 1.0%
Brown-Forman Corp., Class B, NVS		5,908		308,516
Coca-Cola Co. (The)		6,807		303,388
Constellation Brands Inc., Class A		1,479		307,928
Molson Coors Brewing Co., Class B		4,574		305,269
Monster Beverage Corp.(a)		5,145		313,279
PepsiCo Inc.		2,767		309,931
				1,848,311
Biotechnology — 2.3%
AbbVie Inc.		3,173		304,545
Alexion Pharmaceuticals Inc.(a)		2,592		316,846
Alkermes PLC(a)		6,756		302,939
Alnylam Pharmaceuticals Inc.(a)		2,762		338,815
Amgen Inc.		1,566		312,902
Biogen Inc.(a)		909		321,322
BioMarin Pharmaceutical Inc.(a)		3,109		310,838
Celgene Corp.(a)		3,398		320,941
Gilead Sciences Inc.		4,157		314,810
Incyte Corp.(a)		4,308		318,404
Regeneron Pharmaceuticals Inc.(a)		801		325,807
Seattle Genetics Inc.(a)		4,158		319,168
United Therapeutics Corp.(a)		2,453		301,694
Vertex Pharmaceuticals Inc.(a)		1,737		320,303
				4,429,334
Building Products — 1.1%
Allegion PLC		3,553		309,893
AO Smith Corp.		5,242		304,455
Fortune Brands Home &Security Inc.		5,673		300,556
Johnson Controls International PLC		7,830		295,739
Lennox International Inc.		1,400		311,934
Masco Corp.		7,954		302,013
Owens Corning		5,344		302,577
				2,127,167
Capital Markets — 3.9%
Affiliated Managers Group Inc.		2,099		306,643
Ameriprise Financial Inc.		2,157		306,208
Bank of New York Mellon Corp. (The)		5,870		306,120
BlackRock Inc.(c)		643		308,036
Cboe Global Markets Inc.		3,075		309,960
Charles Schwab Corp. (The)		6,054		307,483
CME Group Inc.		1,823		318,533
E*TRADE Financial Corp.(a)		5,215		306,955
Eaton Vance Corp., NVS		5,756		303,514
Franklin Resources Inc.		9,339		296,420
Goldman Sachs Group Inc. (The)		1,282		304,872
Intercontinental Exchange Inc.		4,195		319,785
Invesco Ltd.		12,570		302,937
Moody’s Corp.		1,773		315,629
Morgan Stanley		6,234		304,406
MSCI Inc.		1,778		320,502
Nasdaq Inc.		3,273		312,375

38 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI USA Equal Weighted ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Capital Markets (continued)
Northern Trust Corp.		2,849	$	306,154
Raymond James Financial Inc.		3,347		311,405
S&P Global Inc.		1,523		315,337
SEI Investments Co.		4,942		311,741
State Street Corp.		3,572		310,442
T Rowe Price Group Inc.		2,674		309,890
TD Ameritrade Holding Corp.		5,310		311,007
				7,426,354
Chemicals — 2.7%
Air Products & Chemicals Inc.		1,859		309,133
Albemarle Corp.		3,210		306,619
Axalta Coating Systems Ltd.(a)		10,301		314,181
Celanese Corp., Series A		2,641		308,548
CF Industries Holdings Inc.		6,142		319,077
Chemours Co. (The)		6,772		295,259
DowDuPont Inc.		4,392		308,011
Eastman Chemical Co.		3,114		302,151
Ecolab Inc.		2,076		312,397
FMC Corp.		3,601		307,706
International Flavors & Fragrances Inc.		2,370		308,787
LyondellBasell Industries NV, Class A		2,682		302,476
Mosaic Co. (The)		10,156		317,578
PPG Industries Inc.		2,804		309,954
Praxair Inc.		1,968		311,318
Sherwin-Williams Co. (The)		684		311,617
Westlake Chemical Corp.		3,174		300,165
				5,244,977
Commercial Services & Supplies — 1.1%
Cintas Corp.		1,467		313,014
Copart Inc.(a)(b)		4,875		313,511
Republic Services Inc.		4,251		311,853
Rollins Inc.		5,227		314,038
Stericycle Inc.(a)		5,034		310,548
Waste Connections Inc.		3,948		313,432
Waste Management Inc.		3,430		311,787
				2,188,183
Communications Equipment — 1.1%
Arista Networks Inc.(a)		1,022		305,557
Cisco Systems Inc.		6,675		318,865
CommScope Holding Co. Inc.(a)		9,953		315,410
F5 Networks Inc.(a)		1,651		312,237
Juniper Networks Inc.		10,899		309,859
Motorola Solutions Inc.		2,444		313,712
Palo Alto Networks Inc.(a)		1,372		317,138
				2,192,778
Construction & Engineering — 0.3%
Fluor Corp.		5,304		304,503
Jacobs Engineering Group Inc.		4,271		310,459
				614,962
Construction Materials — 0.3%
Martin Marietta Materials Inc.		1,493		296,689
Vulcan Materials Co.		2,738		303,370
				600,059
Consumer Finance — 0.8%
Ally Financial Inc.		11,438		307,453
American Express Co.		2,918		309,250
Capital One Financial Corp.		3,082		305,395
Discover Financial Services		3,934		307,324

Security	Shares		Value
Consumer Finance (continued)
Synchrony Financial		9,770	$	309,416
				1,538,838
Containers & Packaging — 1.1%
Avery Dennison Corp.		2,924		307,546
Ball Corp.		7,431		311,210
Crown Holdings Inc.(a)		7,211		308,703
International Paper Co.		5,921		302,800
Packaging Corp. of America		2,766		304,039
Sealed Air Corp.		7,804		313,018
WestRock Co.		5,544		305,364
				2,152,680
Distributors — 0.3%
Genuine Parts Co.		3,115		311,033
LKQ Corp.(a)		9,133		315,271
				626,304
Diversified Consumer Services — 0.2%
H&R Block Inc.		11,691		316,358
Diversified Financial Services — 0.5%
Berkshire Hathaway Inc., Class B(a)		1,480		308,906
Jefferies Financial Group Inc.		13,023		302,394
Voya Financial Inc.		6,127		306,779
				918,079
Diversified Telecommunication Services — 0.6%
AT&T Inc.		9,473		302,568
CenturyLink Inc.		13,598		290,453
Verizon Communications Inc.		5,670		308,278
Zayo Group Holdings Inc.(a)		8,880		307,781
				1,209,080
Electric Utilities — 2.6%
Alliant Energy Corp.		7,271		311,490
American Electric Power Co. Inc.		4,385		314,536
Duke Energy Corp.		3,859		313,505
Edison International		4,602		302,489
Entergy Corp.		3,722		311,122
Evergy Inc.		5,460		311,493
Eversource Energy		4,999		312,087
Exelon Corp.		7,125		311,434
FirstEnergy Corp.		8,442		315,562
NextEra Energy Inc.		1,816		308,902
OGE Energy Corp.		8,428		310,403
PG&E Corp.		7,131		329,310
Pinnacle West Capital Corp.		3,862		303,360
PPL Corp.		10,567		314,263
Southern Co. (The)		6,968		305,059
Xcel Energy Inc.		6,568		315,592
				4,990,607
Electrical Equipment — 1.0%
Acuity Brands Inc.(b)		2,026		309,654
AMETEK Inc.		4,036		310,611
Eaton Corp. PLC		3,743		311,193
Emerson Electric Co.		4,070		312,291
Rockwell Automation Inc.		1,758		318,128
Sensata Technologies Holding PLC(a)		5,751		304,515
				1,866,392
Electronic Equipment, Instruments & Components — 1.9%
Amphenol Corp., Class A		3,293		311,452
Arrow Electronics Inc.(a)		3,891		301,669

S C H E D U L E    O F    I N V E S T M E N T S 39

Schedule of Investments  (continued)	iShares® MSCI USA Equal Weighted ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Electronic Equipment, Instruments & Components (continued)
Avnet Inc.		6,381	$	308,840
CDW Corp./DE		3,549		310,750
Cognex Corp.		5,927		318,873
Corning Inc.		9,250		309,968
Flex Ltd.(a)		22,325		307,862
FLIR Systems Inc.		5,031		315,645
IPG Photonics Corp.(a)		1,851		324,813
Keysight Technologies Inc.(a)		4,820		312,770
TE Connectivity Ltd.		3,359		307,953
Trimble Inc.(a)		7,496		315,582
				3,746,177
Energy Equipment & Services — 1.0%
Baker Hughes a GE Co.		9,345		308,105
Halliburton Co.		7,583		302,486
Helmerich & Payne Inc.		4,688		307,392
National Oilwell Varco Inc.		6,770		318,664
Schlumberger Ltd.		4,796		302,915
TechnipFMC PLC		10,104		309,485
				1,849,047
Equity Real Estate Investment Trusts (REITs) — 5.9%
Alexandria Real Estate Equities Inc.		2,466		316,511
American Tower Corp.		2,096		312,555
AvalonBay Communities Inc.		1,708		313,059
Boston Properties Inc.		2,418		315,428
Brookfield Property REIT Inc., NVS		15,763		315,575
Camden Property Trust		3,293		313,033
Crown Castle International Corp.		2,786		317,688
Digital Realty Trust Inc.(b)		2,524		313,683
Duke Realty Corp.		11,032		314,302
Equinix Inc.(b)		719		313,577
Equity Residential		4,609		312,260
Essex Property Trust Inc.		1,273		313,514
Extra Space Storage Inc.(b)		3,394		312,961
Federal Realty Investment Trust		2,404		313,986
HCP Inc.		11,639		314,602
Host Hotels & Resorts Inc.		14,859		319,914
Invitation Homes Inc.		13,513		315,799
Iron Mountain Inc.		8,701		314,106
Kimco Realty Corp.		18,294		313,010
Liberty Property Trust		7,130		311,937
Macerich Co. (The)		5,309		311,851
Mid-America Apartment Communities Inc.		3,003		310,991
National Retail Properties Inc.		6,768		311,937
Prologis Inc.		4,715		316,754
Public Storage		1,460		310,367
Realty Income Corp.		5,328		312,061
Regency Centers Corp.		4,784		315,887
SBA Communications Corp.(a)		1,987		308,442
Simon Property Group Inc.		1,728		316,276
SL Green Realty Corp.		3,014		314,662
UDR Inc.		7,839		313,325
Ventas Inc.		5,300		317,311
VEREIT Inc.		39,922		312,190
Vornado Realty Trust		4,102		315,854
Welltower Inc.		4,718		314,738
Weyerhaeuser Co.		8,812		305,865
				11,296,011
Food & Staples Retailing — 0.8%
Costco Wholesale Corp.		1,352		315,192

Security	Shares		Value
Food & Staples Retailing (continued)
Kroger Co. (The)		9,971	$	314,087
Sysco Corp.		4,172		312,149
Walgreens Boots Alliance Inc.		4,479		307,080
Walmart Inc.		3,290		315,379
				1,563,887
Food Products — 2.3%
Archer-Daniels-Midland Co.		6,124		308,649
Bunge Ltd.		4,807		312,359
Campbell Soup Co.		7,641		301,437
Conagra Brands Inc.		8,525		313,294
General Mills Inc.		6,780		311,948
Hershey Co. (The)		3,132		314,829
Hormel Foods Corp.		8,225		322,009
Ingredion Inc.		3,050		308,263
JM Smucker Co. (The)		2,939		303,834
Kellogg Co.		4,318		309,989
Kraft Heinz Co. (The)		5,221		304,228
McCormick &Co. Inc./MD, NVS		2,513		313,823
Mondelez International Inc., Class A		7,319		312,668
Tyson Foods Inc., Class A		4,949		310,847
				4,348,177
Gas Utilities — 0.3%
Atmos Energy Corp.		3,395		313,121
UGI Corp.		5,752		310,895
				624,016
Health Care Equipment & Supplies — 3.1%
Abbott Laboratories		4,653		311,006
ABIOMED Inc.(a)		817		332,176
Align Technology Inc.(a)		816		315,376
Baxter International Inc.		4,261		316,891
Becton Dickinson and Co.		1,215		318,172
Boston Scientific Corp.(a)		8,901		316,520
Cooper Companies Inc. (The)		1,188		303,867
Danaher Corp.		3,035		314,244
DENTSPLY SIRONA Inc.		8,073		322,274
Edwards Lifesciences Corp.(a)		2,210		318,770
Hologic Inc.(a)		7,962		316,569
IDEXX Laboratories Inc.(a)		1,240		315,010
Intuitive Surgical Inc.(a)		571		319,760
Medtronic PLC		3,265		314,779
ResMed Inc.		2,808		312,839
Stryker Corp.		1,824		309,040
Teleflex Inc.		1,256		310,772
Varian Medical Systems Inc.(a)		2,768		310,071
Zimmer Biomet Holdings Inc.		2,482		306,850
				5,984,986
Health Care Providers & Services — 2.7%
Aetna Inc.		1,574		315,225
AmerisourceBergen Corp.		3,516		316,335
Anthem Inc.		1,169		309,469
Cardinal Health Inc.		5,927		309,330
Centene Corp.(a)		2,137		313,028
Cigna Corp.		1,663		313,209
CVS Health Corp.		4,149		312,171
DaVita Inc.(a)		4,310		298,640
Express Scripts Holding Co.(a)		3,542		311,767
HCA Healthcare Inc.		2,374		318,377
Henry Schein Inc.(a)(b)		3,832		297,670
Humana Inc.		936		311,931

40 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI USA Equal Weighted ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Health Care Providers & Services (continued)
Laboratory Corp. of America Holdings(a)		1,789	$	309,265
McKesson Corp.		2,391		307,841
Quest Diagnostics Inc.		2,817		309,814
UnitedHealth Group Inc.		1,166		313,024
Universal Health Services Inc., Class B		2,445		318,241
				5,285,337
Health Care Technology — 0.3%
Cerner Corp.(a)		4,739		308,556
Veeva Systems Inc., Class A(a)		3,047		317,985
				626,541
Hotels, Restaurants & Leisure — 2.6%
Aramark		7,659		314,632
Carnival Corp.		5,040		309,909
Chipotle Mexican Grill Inc.(a)(b)		628		298,413
Darden Restaurants Inc.		2,731		316,905
Domino’s Pizza Inc.		1,044		311,697
Hilton Worldwide Holdings Inc.		3,999		310,402
Las Vegas Sands Corp.		4,661		304,923
Marriott International Inc./MD, Class A		2,502		316,428
McDonald’s Corp.		1,938		314,402
MGM Resorts International		10,639		308,425
Norwegian Cruise Line Holdings Ltd.(a)		5,821		312,064
Royal Caribbean Cruises Ltd.		2,592		317,727
Starbucks Corp.		5,871		313,805
Vail Resorts Inc.		1,043		310,866
Wynn Resorts Ltd.		2,091		310,179
Yum! Brands Inc.		3,681		319,842
				4,990,619
Household Durables — 1.6%
DR Horton Inc.		6,853		305,027
Garmin Ltd.		4,732		322,439
Leggett & Platt Inc.		6,827		310,219
Lennar Corp., Class A		5,933		306,558
Mohawk Industries Inc.(a)		1,612		308,843
Newell Brands Inc.		13,927		302,494
NVR Inc.(a)		115		306,872
PulteGroup Inc.		10,735		300,043
Toll Brothers Inc.		8,289		300,311
Whirlpool Corp.		2,378		297,202
				3,060,008
Household Products — 0.8%
Church & Dwight Co. Inc.		5,534		313,114
Clorox Co. (The)		2,150		311,707
Colgate-Palmolive Co.		4,659		309,404
Kimberly-Clark Corp.		2,699		311,842
Procter &Gamble Co. (The)		3,727		309,155
				1,555,222
Independent Power and Renewable Electricity Producers — 0.3%
AES Corp./VA		22,277		299,848
Vistra Energy Corp.(a)		13,646		321,227
				621,075
Industrial Conglomerates — 0.6%
3M Co.		1,493		314,904
General Electric Co.		24,353		315,128
Honeywell International Inc.		1,959		311,598
Roper Technologies Inc.		1,045		311,797
				1,253,427

Security	Shares		Value
Insurance — 5.3%
Aflac Inc.		6,621	$	306,155
Alleghany Corp.		487		307,677
Allstate Corp. (The)		3,113		313,074
American Financial Group Inc./OH		2,771		308,579
American International Group Inc.		5,736		304,983
Aon PLC		2,140		311,498
Arch Capital Group Ltd.(a)		9,987		305,303
Arthur J Gallagher & Co.		4,301		310,274
Assurant Inc.		2,955		303,833
Athene Holding Ltd., Class A(a)		6,180		306,899
Axis Capital Holdings Ltd.		5,383		309,630
Brighthouse Financial Inc.(a)(b)		7,399		307,133
Chubb Ltd.		2,278		308,077
Cincinnati Financial Corp.		4,047		310,284
Everest Re Group Ltd.		1,398		311,782
Fidelity National Financial Inc.		7,667		307,447
Hartford Financial Services Group Inc. (The)		6,098		307,156
Lincoln National Corp.		4,650		304,947
Loews Corp.		6,194		311,620
Markel Corp.(a)		257		310,662
Marsh & McLennan Companies Inc.		3,671		310,677
MetLife Inc.		6,608		303,241
Principal Financial Group Inc.		5,510		304,097
Progressive Corp. (The)		4,624		312,259
Prudential Financial Inc.		3,105		305,066
Reinsurance Group of America Inc.		2,158		308,270
RenaissanceRe Holdings Ltd.		2,339		310,993
Torchmark Corp.		3,506		308,248
Travelers Companies Inc. (The)		2,358		310,313
Unum Group		8,589		316,762
Willis Towers Watson PLC		2,105		310,003
WR Berkley Corp.		3,971		310,770
XL Group Ltd.		5,447		312,603
				10,190,315
Internet & Direct Marketing Retail — 1.0%
Amazon.com Inc.(a)		161		324,046
Booking Holdings Inc.(a)		161		314,200
Expedia Group Inc.		2,358		307,719
Netflix Inc.(a)		853		313,631
Qurate Retail Inc., Class A(a)		14,937		310,540
TripAdvisor Inc.(a)(b)		5,828		316,519
				1,886,655
Internet Software & Services — 1.6%
Akamai Technologies Inc.(a)		4,174		313,634
Alphabet Inc., Class A(a)		122		150,280
Alphabet Inc., Class C,NVS(a)		128		155,928
eBay Inc.(a)		8,993		311,248
Facebook Inc., Class A(a)		1,756		308,582
GoDaddy Inc., Class A(a)		3,881		316,146
IAC/InterActiveCorp.(a)		1,552		306,054
MercadoLibre Inc.		830		284,200
Twitter Inc.(a)		8,665		304,835
VeriSign Inc.(a)		1,973		312,938
Zillow Group Inc., Class C,NVS(a)(b)		6,514		316,906
				3,080,751
IT Services — 3.9%
Accenture PLC, Class A		1,864		315,146
Alliance Data Systems Corp.		1,304		311,108
Automatic Data Processing Inc.		2,166		317,860

S C H E D U L E    O F    I N V E S T M E N T S 41

Schedule of Investments  (continued)	iShares® MSCI USA Equal Weighted ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
IT Services (continued)
Broadridge Financial Solutions Inc.		2,323	$	313,930
Cognizant Technology Solutions Corp., Class A		4,059		318,347
DXC Technology Co.		3,464		315,536
Fidelity National Information Services Inc.		2,882		311,746
First Data Corp., Class A(a)		12,326		317,025
Fiserv Inc.(a)		3,902		312,433
FleetCor Technologies Inc.(a)		1,420		303,511
Gartner Inc.(a)		2,110		315,994
Global Payments Inc.		2,524		314,440
International Business Machines Corp.		2,120		310,538
Jack Henry & Associates Inc.		1,978		313,394
Leidos Holdings Inc.		4,387		310,468
Mastercard Inc., Class A		1,473		317,520
Paychex Inc.		4,282		313,656
PayPal Holdings Inc.(a)		3,457		319,185
Sabre Corp.		12,162		317,550
Square Inc., Class A(a)		3,974		352,255
Total System Services Inc.		3,226		313,374
Visa Inc., Class A		2,139		314,198
Western Union Co. (The)		16,507		312,312
Worldpay Inc., Class A(a)		3,240		315,544
				7,577,070
Leisure Products — 0.5%
Hasbro Inc.		3,058		303,690
Mattel Inc.		19,948		307,797
Polaris Industries Inc.		2,844		308,432
				919,919
Life Sciences Tools & Services — 1.0%
Agilent Technologies Inc.		4,706		317,843
Illumina Inc.(a)		903		320,412
IQVIA Holdings Inc.(a)		2,460		312,641
Mettler-Toledo International Inc.(a)		543		317,362
Thermo Fisher Scientific Inc.		1,307		312,504
Waters Corp.(a)(b)		1,631		309,042
				1,889,804
Machinery — 3.1%
AGCO Corp.		5,014		299,135
Caterpillar Inc.		2,194		304,637
Cummins Inc.		2,159		306,146
Deere & Co.		2,127		305,863
Dover Corp.		3,655		313,855
Flowserve Corp.		5,945		309,853
Fortive Corp.		3,815		320,384
IDEX Corp.		2,026		310,403
Illinois Tool Works Inc.		2,256		313,313
Ingersoll-Rand PLC		3,081		312,075
Middleby Corp. (The)(a)(b)		2,602		316,247
PACCAR Inc.		4,532		310,079
Parker-Hannifin Corp.		1,781		312,744
Pentair PLC		7,166		311,578
Snap-on Inc.		1,759		310,956
Stanley Black & Decker Inc.		2,155		302,842
WABCO Holdings Inc.(a)		2,514		309,423
Wabtec Corp./DE		2,819		305,354
Xylem Inc./NY		4,058		308,043
				5,882,930
Media — 2.7%
CBS Corp., Class B, NVS		5,818		308,470
Charter Communications Inc., Class A(a)		1,022		317,229

Security	Shares		Value
Media (continued)
Comcast Corp., Class A		8,537	$	315,784
Discovery Inc., Class A(a)(b)		3,853		107,229
Discovery Inc., Class C,NVS(a)		7,547		193,505
DISH Network Corp., Class A(a)		8,699		307,510
Interpublic Group of Companies Inc. (The)		13,486		314,898
Liberty Broadband Corp., Class C,NVS(a)		3,919		317,792
Liberty Global PLC, Series A(a)		3,108		83,325
Liberty Global PLC, Series C, NVS(a)		8,621		223,198
Liberty Media Corp.-Liberty Formula One, Class C,NVS(a)(b)		8,371		309,392
Liberty Media Corp.-Liberty SiriusXM, Class A(a)		2,224		103,950
Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)		4,510		212,150
Live Nation Entertainment Inc.(a)		6,273		311,643
News Corp., Class A, NVS		17,764		232,175
Omnicom Group Inc.		4,479		310,484
Sirius XM Holdings Inc.(b)		44,301		314,537
Twenty-First Century Fox Inc., Class A, NVS		4,878		221,461
Twenty-First Century Fox Inc., Class B		2,032		91,237
Viacom Inc., Class B, NVS		10,163		297,573
Walt Disney Co. (The)		2,769		310,183
				5,203,725
Metals & Mining — 0.6%
Freeport-McMoRan Inc.		21,113		296,638
Newmont Mining Corp.		9,643		299,222
Nucor Corp.		4,881		305,062
Steel Dynamics Inc.		6,775		309,821
				1,210,743
Mortgage Real Estate Investment — 0.3%
AGNC Investment Corp.		16,122		306,641
Annaly Capital Management Inc.(b)		29,339		311,580
				618,221
Multi-Utilities — 1.8%
Ameren Corp.		4,908		310,333
CenterPoint Energy Inc.		11,235		312,221
CMS Energy Corp.		6,357		313,019
Consolidated Edison Inc.		3,941		311,063
Dominion Energy Inc.		4,365		308,911
DTE Energy Co.		2,793		310,414
NiSource Inc.		11,540		312,388
Public Service Enterprise Group Inc.		5,930		310,435
SCANA Corp.		7,899		302,848
Sempra Energy		2,694		312,719
WEC Energy Group Inc.		4,635		313,233
				3,417,584
Multiline Retail — 1.0%
Dollar General Corp.		2,901		312,525
Dollar Tree Inc.(a)		3,349		269,628
Kohl’s Corp.		3,944		312,010
Macy’s Inc.		8,572		313,307
Nordstrom Inc.		5,133		322,609
Target Corp.		3,591		314,212
				1,844,291
Oil, Gas & Consumable Fuels — 5.1%
Anadarko Petroleum Corp.		4,818		310,279
Andeavor		2,005		306,344
Antero Resources Corp.(a)(b)		16,801		310,987
Apache Corp.		7,105		311,412
Cabot Oil &Gas Corp.		12,969		309,051
Cheniere Energy Inc.(a)		4,670		312,563

42 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI USA Equal Weighted ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Oil, Gas &Consumable Fuels (continued)
Chevron Corp.		2,584	$	306,101
Cimarex Energy Co.		3,694		312,069
Concho Resources Inc.(a)		2,247		308,176
ConocoPhillips		4,270		313,546
Continental Resources Inc./OK(a)		4,712		310,756
Devon Energy Corp.		7,265		311,886
Diamondback Energy Inc.		2,534		306,817
EOG Resources Inc.		2,621		309,881
EQT Corp.		6,220		317,344
Exxon Mobil Corp.		3,868		310,098
Hess Corp.		4,701		316,565
HollyFrontier Corp.		4,209		313,655
Kinder Morgan Inc./DE		17,306		306,316
Marathon Oil Corp.		14,901		320,521
Marathon Petroleum Corp.		3,724		306,448
Newfield Exploration Co.(a)		11,159		304,418
Noble Energy Inc.		10,243		304,422
Occidental Petroleum Corp.		3,877		309,656
ONEOK Inc.		4,586		302,263
Parsley Energy Inc., Class A(a)		10,787		299,555
Phillips 66		2,591		307,059
Pioneer Natural Resources Co.		1,753		306,249
Plains GP Holdings LP, Class A		11,626		299,718
Targa Resources Corp.		5,568		306,630
Valero Energy Corp.		2,566		302,480
Williams Companies Inc. (The)		10,257		303,505
				9,876,770
Personal Products — 0.3%
Coty Inc., Class A		25,617		316,626
Estee Lauder Companies Inc. (The), Class A		2,254		315,831
				632,457
Pharmaceuticals — 1.8%
Allergan PLC		1,663		318,814
Bristol-Myers Squibb Co.		5,182		313,770
Eli Lilly & Co.		2,959		312,618
Jazz Pharmaceuticals PLC(a)		1,839		314,322
Johnson & Johnson		2,305		310,460
Merck & Co. Inc.		4,508		309,204
Mylan NV(a)		7,999		313,001
Nektar Therapeutics(a)		4,768		317,024
Perrigo Co. PLC		4,167		318,817
Pfizer Inc.		7,479		310,528
Zoetis Inc.		3,486		315,832
				3,454,390
Professional Services — 1.3%
CoStar Group Inc.(a)		709		313,491
Equifax Inc.		2,351		314,963
IHS Markit Ltd.(a)		5,722		314,710
ManpowerGroup Inc.		3,350		313,996
Nielsen Holdings PLC		11,691		303,966
Robert Half International Inc.		3,975		310,766
TransUnion		4,165		313,625
Verisk Analytics Inc.(a)		2,634		313,683
				2,499,200
Real Estate Management & Development — 0.3%
Brookfield Infrastructure Partners LP(a)		166		3,317
CBRE Group Inc., Class A(a)		6,483		316,435
Jones Lang LaSalle Inc.		2,011		306,718
				626,470

Security	Shares		Value
Road & Rail — 1.3%
AMERCO		823	$	308,534
CSX Corp.		4,119		305,465
JB Hunt Transport Services Inc.		2,512		303,324
Kansas City Southern		2,612		302,888
Knight-Swift Transportation Holdings Inc.		9,217		314,576
Norfolk Southern Corp.		1,775		308,566
Old Dominion Freight Line Inc.		2,085		317,754
Union Pacific Corp.		2,043		307,717
				2,468,824
Semiconductors & Semiconductor Equipment — 2.9%
Advanced Micro Devices Inc.(a)(b)		12,312		309,893
Analog Devices Inc.		3,111		307,522
Applied Materials Inc.		7,108		305,786
Broadcom Inc.		1,463		320,441
Intel Corp.		6,432		311,502
KLA-Tencor Corp.		2,647		307,608
Lam Research Corp.		1,765		305,504
Marvell Technology Group Ltd.		15,178		313,881
Maxim Integrated Products Inc.		5,015		303,257
Microchip Technology Inc.		3,519		302,739
Micron Technology Inc.(a)		5,973		313,702
NVIDIA Corp.		1,129		316,888
ON Semiconductor Corp.(a)		14,465		308,683
Qorvo Inc.(a)		3,907		312,912
QUALCOMM Inc.		4,618		317,303
Skyworks Solutions Inc.		3,322		303,299
Texas Instruments Inc.		2,704		303,929
Xilinx Inc.		4,133		321,671
				5,586,520
Software — 3.9%
Activision Blizzard Inc.		4,206		303,253
Adobe Systems Inc.(a)		1,187		312,786
ANSYS Inc.(a)		1,725		320,816
Autodesk Inc.(a)		2,011		310,398
CA Inc.		7,084		310,279
Cadence Design Systems Inc.(a)		6,639		312,299
CDK Global Inc.		5,053		314,903
Citrix Systems Inc.(a)		2,751		313,669
Dell Technologies Inc., Class V(a)		3,260		313,514
Electronic Arts Inc.(a)		2,417		274,112
Fortinet Inc.(a)		3,872		324,319
Intuit Inc.		1,467		321,962
Microsoft Corp.		2,838		318,793
Oracle Corp.		6,318		306,928
Red Hat Inc.(a)		2,191		323,676
salesforce.com Inc.(a)		2,054		313,605
ServiceNow Inc.(a)(b)		1,612		316,532
Splunk Inc.(a)		2,571		329,474
SS&C Technologies Holdings Inc.		5,326		316,045
Symantec Corp.		15,503		312,540
Synopsys Inc.(a)		3,045		311,016
Take-Two Interactive Software Inc.(a)		2,332		311,462
VMware Inc., Class A(a)		2,073		317,708
Workday Inc., Class A(a)		2,054		317,425
				7,527,514
Specialty Retail — 2.3%
Advance Auto Parts Inc.		1,920		314,938
AutoZone Inc.(a)		405		310,586
Best Buy Co. Inc.		3,808		302,964

S C H E D U L E    O F    I N V E S T M E N T S 43

Schedule of Investments  (continued)	iShares® MSCI USA Equal Weighted ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Specialty Retail (continued)
CarMax Inc.(a)		4,056	$	316,571
Gap Inc. (The)		10,301		312,635
Home Depot Inc. (The)		1,540		309,186
L Brands Inc.		11,251		297,364
Lowe’s Companies Inc.		2,907		316,136
O’Reilly Automotive Inc.(a)		944		316,637
Ross Stores Inc.		3,299		315,978
Tiffany & Co.		2,401		294,483
TJX Companies Inc. (The)		2,894		318,253
Tractor Supply Co.		3,594		317,278
Ulta Salon Cosmetics & Fragrance Inc.(a)		1,294		336,440
				4,379,449
Technology Hardware, Storage & Peripherals — 1.1%
Apple Inc.		1,427		324,828
Hewlett Packard Enterprise Co.		18,994		313,971
HP Inc.		12,782		315,076
NetApp Inc.		3,660		317,724
Seagate Technology PLC		5,518		295,434
Western Digital Corp.		4,824		305,070
Xerox Corp.		11,231		312,896
				2,184,999
Textiles, Apparel & Luxury Goods — 1.4%
Hanesbrands Inc.		17,781		311,879
Lululemon Athletica Inc.(a)		2,251		348,747
Michael Kors Holdings Ltd.(a)		4,178		303,406
NIKE Inc., Class B		3,763		309,318
PVH Corp.		2,011		287,895
Ralph Lauren Corp.		2,285		303,471
Tapestry Inc.		6,129		310,679
Under Armour Inc., Class A(a)		7,751		158,508
Under Armour Inc., Class C, NVS(a)		7,943		150,679
VF Corp.		3,360		309,557
				2,794,139
Thrifts & Mortgage Finance — 0.2%
New York Community Bancorp. Inc.		28,557		307,559
Tobacco — 0.3%
Altria Group Inc.		5,302		310,273
Philip Morris International Inc.		3,875		301,824
				612,097

Security	Shares		Value
Trading Companies & Distributors — 0.6%
Fastenal Co.		5,269	$	307,499
HD Supply Holdings Inc.(a)		6,936		316,212
United Rentals Inc.(a)		1,952		304,258
WW Grainger Inc.		855		302,730
				1,230,699
Water Utilities — 0.2%
American Water Works Co. Inc.		3,553		310,994
Wireless Telecommunication Services — 0.3%
Sprint Corp.(a)(b)		50,982		311,500
T-Mobile U.S. Inc.(a)		4,726		312,105
				623,605
Total Common Stocks — 99.8% (Cost: $167,559,258)				192,492,319
Short-Term Investments
Money Market Funds — 2.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(c)(d)(e)		4,597,711		4,599,090
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		339,808		339,808
				4,938,898
Total Short-Term Investments — 2.6% (Cost: $4,937,850)				4,938,898
Total Investments in Securities — 102.4% (Cost: $172,497,108)				197,431,217
Other Assets, Less Liabilities — (2.4)%				(4,610,856	)
Net Assets — 100.0%			$	192,820,361

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c) Affiliate of the Fund.

^(d) Annualized 7-day yield as of period-end.

^(e) All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at		Shares			Shares			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17		Purchased			Sold			08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		7,464,215		—			(2,866,504	)(b)		4,597,711	$	4,599,090	$	29,219	(c)	$	(458	)	$	350
BlackRock Cash Funds: Treasury, SL Agency Shares		69,879		269,929	(b)		—			339,808		339,808		2,418			—			—
BlackRock Inc.		515349					(221	)		643		308,036		3,655			27,971			(1,240	)
PNC Financial Services Group Inc. (The)		1,677		1,166			(709	)		2,134		306,314		5,278			29,807			1,395
											$	5,553,248	$	40,570		$	57,320		$	505

^(a) Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Net of purchases and sales.

^(c) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

44 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI USA Equal Weighted ETF
August 31, 2018

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	192,492,319	$	—	$	—	$	192,492,319
Money Market Funds		4,938,898		—		—		4,938,898
	$	197,431,217	$	—	$	—	$	197,431,217

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 45

Statements of Assets and Liabilities

August 31, 2018

	iShares MSCI Brazil ETF			iShares MSCI Chile ETF			iShares MSCI Colombia ETF			iShares MSCI Israel ETF
ASSETS
Investments in securities, at value (including securities on loan)(a)
Unaffiliated(b)	$	5,443,831,492		$	393,162,779		$	25,684,005		$	121,608,443
Affiliated(c)		3,435,968			280,439			43,489			7,138,288
Cash pledged:
Futures contracts		3,154,000			—			—			—
Foreign currency, at value(d)		25,221,241			41,327			21,222			18,190
Receivables:
Investments sold		60,060,712			3,826,827			776,427			688,617
Securities lending income — Affiliated		—			—			—			4,483
Variation margin on futures contracts		374,138			—			—			—
Capital shares sold		—			—			1,297,164			—
Securities related to in-kind transactions		—			—			42,365			—
Dividends		34,824,862			3,276			3,269			142,885
Total assets		5,570,902,413			397,314,648			27,867,941			129,600,906
LIABILITIES
Collateral on securities loaned, at value		—			—			—			7,120,086
Deferred foreign capital gain tax		—			—			—			31,314
Payables:
Investments purchased		25,820,778			3,759,720			2,020,577			655,000
Capital shares redeemed		40,856,941			—			—			—
Investment advisory fees		3,193,482			203,740			13,083			59,136
Total liabilities		69,871,201			3,963,460			2,033,660			7,865,536
NET ASSETS	$	5,501,031,212		$	393,351,188		$	25,834,281		$	121,735,370
NET ASSETS CONSIST OF:
Paid-in capital	$	7,539,562,645		$	461,344,960		$	36,090,645		$	162,634,865
Undistributed (distributions in excess of) net investment income		50,812,884			(51,786	)		100,951			(519,165	)
Accumulated net realized loss		(2,956,106,584	)		(169,985,973	)		(12,592,416	)		(42,837,116	)
Net unrealized appreciation		866,762,267			102,043,987			2,235,101			2,456,786
NET ASSETS	$	5,501,031,212		$	393,351,188		$	25,834,281		$	121,735,370
Shares outstanding		171,750,000			9,000,000			1,850,000			2,150,000
Net asset value	$	32.03		$	43.71		$	13.96		$	56.62
Shares authorized		500 million			200 million			25 million			500 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a)  Securities loaned, at value	$	—		$	—		$	—		$	6,995,847
(b)  Investments, at cost — Unaffiliated	$	4,571,351,197		$	291,118,783		$	23,471,087		$	119,123,078
(c)  Investments, at cost — Affiliated	$	3,435,968		$	280,439		$	43,489		$	7,137,287
(d)  Foreign currency, at cost	$	25,215,653		$	41,333		$	21,024		$	17,956

See notes to financial statements.

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Statements of Assets and Liabilities  (continued)

August 31, 2018

	iShares MSCI Russia ETF			iShares MSCI South Africa ETF			iShares MSCI Turkey ETF			iShares MSCI USA Equal Weighted ETF
ASSETS
Investments in securities, at value (including securities on loan)(a)
Unaffiliated(b)	$	478,931,728		$	372,743,375		$	386,267,813		$	191,877,969
Affiliated(c)		349,697			173,320			18,860,255			5,553,248
Cash		—			—			—			3,357
Foreign currency, at value(d)		—			448,790			259,476			—
Receivables:
Investments sold		13,245,103			1,443,283			—			7,564,126
Securities lending income — Affiliated		—			632			120,103			2,069
Dividends		6,062			301,922			4,456			272,765
Tax reclaims		—			3,763			—			—
Total assets		492,532,590			375,115,085			405,512,103			205,273,534
LIABILITIES
Bank overdraft		2,724			—			—			—
Collateral on securities loaned, at value		—			—			18,533,088			4,598,869
Payables:
Investments purchased		13,441,772			1,803,997			—			7,830,484
Capital shares redeemed		—			—			5,405			—
Investment advisory fees		228,271			197,157			176,806			23,820
Total liabilities		13,672,767			2,001,154			18,715,299			12,453,173
NET ASSETS	$	478,859,823		$	373,113,931		$	386,796,804		$	192,820,361
NET ASSETS CONSIST OF:
Paid-in capital	$	606,594,877		$	603,175,826		$	808,969,092		$	169,915,381
Undistributed net investment income		13,405,253			504,766			167,417			692,087
Accumulated net realized loss		(100,907,193	)		(135,224,398	)		(100,781,161	)		(2,721,216	)
Net unrealized appreciation (depreciation)		(40,233,114	)		(95,342,263	)		(321,558,544	)		24,934,109
NET ASSETS	$	478,859,823		$	373,113,931		$	386,796,804		$	192,820,361
Shares outstanding		14,750,000			6,800,000			19,250,000			3,250,000
Net asset value	$	32.47		$	54.87		$	20.09		$	59.33
Shares authorized		1 billion			400 million			200 million			500 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a)  Securities loaned, at value	$	—		$	—		$	17,283,279		$	4,256,749
(b)  Investments, at cost — Unaffiliated	$	519,164,594		$	468,056,296		$	707,823,905		$	167,028,624
(c)  Investments, at cost — Affiliated	$	349,697		$	173,320		$	18,856,194		$	5,468,484
(d)  Foreign currency, at cost	$	—		$	472,682		$	264,417		$	—

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 47

Statements of Operations

Year Ended August 31, 2018

	iShares MSCI Brazil ETF			iShares MSCI Chile ETF			iShares MSCI Colombia ETF			iShares MSCI Israel ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	284,754,808		$	12,750,072		$	619,233		$	2,209,849
Dividends — Affiliated		84,174			10,825			509			652
Securities lending income — Affiliated — net		—			—			806			55,062
Foreign taxes withheld		(25,308,605	)		(2,382,128	)		(18,054	)		(423,394	)
Total investment income		259,530,377			10,378,769			602,494			1,842,169
EXPENSES
Investment advisory fees		44,455,160			2,866,704			140,281			626,590
Commitment fees		—			—			69			—
Proxy fees		620			54			2			11
Total expenses		44,455,780			2,866,758			140,352			626,601
Net investment income		215,074,597			7,512,011			462,142			1,215,568
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated(a)		(312,009,484	)		30,039,215			(125,290	)		(1,134,744	)
Investments — Affiliated		—			—			(15	)		(1,234	)
In-kind redemptions — Unaffiliated		—			—			17,544			4,390,141
Futures contracts		1,024,243			—			—			—
Foreign currency transactions		(6,745,230	)		(53,363	)		(42,690	)		(10,748	)
Net realized gain (loss)		(317,730,471	)		29,985,852			(150,451	)		3,243,415
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated(b)		(1,349,535,298	)		(56,500,298	)		(1,249,397	)		15,411,450
Investments — Affiliated		—			—			4			455
Futures contracts		(1,329,597	)		—			—			—
Foreign currency translations		(4,765,152	)		(194	)		22,141			1,611
Net change in unrealized appreciation (depreciation)		(1,355,630,047	)		(56,500,492	)		(1,227,252	)		15,413,516
Net realized and unrealized gain (loss)		(1,673,360,518	)		(26,514,640	)		(1,377,703	)		18,656,931
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(1,458,285,921	)	$	(19,002,629	)	$	(915,561	)	$	19,872,499
(a)  Net of foreign capital gain tax of	$	—		$	664		$	—		$	25,647
(b)  Net of deferred foreign capital gain tax of	$	—		$	—		$	—		$	(8,210	)

See notes to financial statements.

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Statements of Operations  (continued)

Year Ended August 31, 2018

	iShares MSCI Russia ETF			iShares MSCI South Africa ETF			iShares MSCI Turkey ETF			iShares MSCI USA Equal Weighted ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	27,799,085		$	14,575,304		$	11,915,848		$	2,811,377
Dividends — Affiliated		27,321			4,094			4,177			11,351
Securities lending income — Affiliated — net		—			26,469			1,050,302			29,219
Foreign taxes withheld		(2,768,192	)		(2,091,347	)		(1,622,830	)		(464	)
Total investment income		25,058,214			12,514,520			11,347,497			2,851,483
EXPENSES
Investment advisory fees		3,618,732			2,650,190			1,999,639			223,377
Proxy fees		57			48			45			14
Total expenses		3,618,789			2,650,238			1,999,684			223,391
Net investment income		21,439,425			9,864,282			9,347,813			2,628,092
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(1,878,186	)		(58,084,254	)		(26,937,620	)		(1,058,764	)
Investments — Affiliated		—			(1,144	)		73			3,809
In-kind redemptions — Unaffiliated		51,348,469			40,212,616			7,831,806			10,679,285
In-kind redemptions — Affiliated		—			—			—			53,511
Foreign currency transactions		(250,678	)		(45,492	)		(190,050	)		—
Net realized gain (loss)		49,219,605			(17,918,274	)		(19,295,791	)		9,677,841
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(37,534,604	)		(35,849,758	)		(211,417,001	)		11,920,999
Investments — Affiliated		—			—			132			505
Foreign currency translations		(530	)		(34,909	)		(13,632	)		—
Net change in unrealized appreciation (depreciation)		(37,535,134	)		(35,884,667	)		(211,430,501	)		11,921,504
Net realized and unrealized gain (loss)		11,684,471			(53,802,941	)		(230,726,292	)		21,599,345
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	33,123,896		$	(43,938,659	)	$	(221,378,479	)	$	24,227,437

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 49

Statements of Changes in Net Assets

	iShares MSCI Brazil ETF						iShares MSCI Chile ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	215,074,597		$	104,757,147		$	7,512,011		$	6,990,238
Net realized gain (loss)		(317,730,471	)		(57,957,125	)		29,985,852			(1,199,111	)
Net change in unrealized appreciation (depreciation)		(1,355,630,047	)		984,438,707			(56,500,492	)		110,031,708
Net increase (decrease) in net assets resulting from operations		(1,458,285,921	)		1,031,238,729			(19,002,629	)		115,822,835
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(186,603,443	)		(93,579,029	)		(7,431,414	)		(6,944,133	)
Return of capital		—			—			(465,343	)		(462,190	)
Decrease in net assets resulting from distributions to shareholders		(186,603,443	)		(93,579,029	)		(7,896,757	)		(7,406,323	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		818,001,540			1,490,629,787			(47,394,474	)		31,984,304
NET ASSETS
Total increase (decrease) in net assets		(826,887,824	)		2,428,289,487			(74,293,860	)		140,400,816
Beginning of year		6,327,919,036			3,899,629,549			467,645,048			327,244,232
End of year	$	5,501,031,212		$	6,327,919,036		$	393,351,188		$	467,645,048
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	50,812,884		$	27,321,455		$	(51,786	)	$	(78,356	)

See notes to financial statements.

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Statements of Changes in Net Assets (continued)

	iShares MSCI Colombia ETF						iShares MSCI Israel ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	462,142		$	309,200		$	1,215,568		$	1,230,124
Net realized gain (loss)		(150,451	)		(151,505	)		3,243,415			2,010,978
Net change in unrealized appreciation (depreciation)		(1,227,252	)		1,966,444			15,413,516			(2,512,946	)
Net increase (decrease) in net assets resulting from operations		(915,561	)		2,124,139			19,872,499			728,156
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(365,825	)		(229,358	)		(2,219,395	)		(1,597,362	)
Decrease in net assets resulting from distributions to shareholders		(365,825	)		(229,358	)		(2,219,395	)		(1,597,362	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		4,521,784			3,562,888			14,930,276			(3,771,367	)
NET ASSETS
Total increase (decrease) in net assets		3,240,398			5,457,669			32,583,380			(4,640,573	)
Beginning of year		22,593,883			17,136,214			89,151,990			93,792,563
End of year	$	25,834,281		$	22,593,883		$	121,735,370		$	89,151,990
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	100,951		$	47,324		$	(519,165	)	$	(39,108	)

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 51

Statements of Changes in Net Assets (continued)

	iShares MSCI Russia ETF						iShares MSCI South Africa ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	21,439,425		$	18,805,766		$	9,864,282		$	7,839,110
Net realized gain (loss)		49,219,605			(22,078,447	)		(17,918,274	)		2,780,139
Net change in unrealized appreciation (depreciation)		(37,535,134	)		66,063,307			(35,884,667	)		67,112,331
Net increase (decrease) in net assets resulting from operations		33,123,896			62,790,626			(43,938,659	)		77,731,580
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(20,645,275	)		(13,531,335	)		(9,978,039	)		(7,473,325	)
Decrease in net assets resulting from distributions to shareholders		(20,645,275	)		(13,531,335	)		(9,978,039	)		(7,473,325	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(63,695,247	)		161,188,606			7,443,919			(57,114,556	)
NET ASSETS
Total increase (decrease) in net assets		(51,216,626	)		210,447,897			(46,472,779	)		13,143,699
Beginning of year		530,076,449			319,628,552			419,586,710			406,443,011
End of year	$	478,859,823		$	530,076,449		$	373,113,931		$	419,586,710
Undistributed net investment income included in net assets at end of year	$	13,405,253		$	12,788,323		$	504,766		$	448,826

See notes to financial statements.

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Statements of Changes in Net Assets (continued) .

	iShares MSCI Turkey ETF						iShares MSCI USA Equal Weighted ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	9,347,813		$	9,674,627		$	2,628,092		$	1,912,769
Net realized gain (loss)		(19,295,791	)		(373,124	)		9,677,841			3,014,793
Net change in unrealized appreciation (depreciation)		(211,430,501	)		90,151,289			11,921,504			8,677,766
Net increase (decrease) in net assets resulting from operations		(221,378,479	)		99,452,792			24,227,437			13,605,328
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(8,942,652	)		(10,121,626	)		(2,338,579	)		(1,736,320	)
Decrease in net assets resulting from distributions to shareholders		(8,942,652	)		(10,121,626	)		(2,338,579	)		(1,736,320	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		192,391,352			(32,829,084	)		34,986,308			50,402,802
NET ASSETS
Total increase (decrease) in net assets		(37,929,779	)		56,502,082			56,875,166			62,271,810
Beginning of year		424,726,583			368,224,501			135,945,195			73,673,385
End of year	$	386,796,804		$	424,726,583		$	192,820,361		$	135,945,195
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	167,417		$	(167,293	)	$	692,087		$	397,508

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 53

Financial Highlights

(For a share outstanding throughout each period)

	iShares MSCI Brazil ETF
	Year Ended 08/31/18			Year Ended 08/31/17				Year Ended 08/31/16				Year Ended 08/31/15				Year Ended 08/31/14
Net asset value, beginning of year	$	40.06			$	33.52			$	24.71			$	53.61			$	42.52
Net investment income(a)		1.14				0.76				0.63				1.00				1.56
Net realized and unrealized gain (loss)(b)		(8.22	)			6.45				8.62				(28.87	)			11.08
Net increase (decrease)from investment operations		(7.08	)			7.21				9.25				(27.87	)			12.64
Distributions(c)
From net investment income		(0.95	)			(0.67	)			(0.44	)			(1.03	)			(1.55	)
Total distributions		(0.95	)			(0.67	)			(0.44	)			(1.03	)			(1.55	)
Net asset value, end of year	$	32.03			$	40.06			$	33.52			$	24.71			$	53.61
Total Return
Based on net asset value		(17.87	)%			22.03	%			38.22	%			(52.49	)%			30.33	%
Ratios to Average Net Assets
Total expenses		0.59	%			0.62	%			0.63	%			0.62	%			0.62	%
Net investment income		2.86	%			2.10	%			2.41	%			2.73	%			3.37	%
Supplemental Data
Net assets, end of year (000)	$	5,501,031			$	6,327,919			$	3,899,630			$	1,989,135			$	5,449,685
Portfolio turnover rate(d)		30	%(e)			20	%(e)			18	%(e)			63	%(e)			54	%(e)
(a)  Based on average shares outstanding. (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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (d)  Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).
(e)  Portfolio turnover rate excluding cash creations was as follows:		13	%			13	%			4	%			48	%			11	%

See notes to financial statements.

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Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Chile ETF
	Year Ended 08/31/18			Year Ended 08/31/17				Year Ended 08/31/16				Year Ended 08/31/15				Year Ended 08/31/14
Net asset value, beginning of year	$	47.96			$	36.77			$	34.75			$	43.52			$	47.70
Net investment income(a)		0.78				0.69				0.78				0.66				0.69
Net realized and unrealized gain (loss)(b)		(4.06	)			11.21				2.03				(8.81	)			(4.18	)
Net increase (decrease)from investment operations		(3.28	)			11.90				2.81				(8.15	)			(3.49	)
Distributions(c)
From net investment income		(0.92	)			(0.67	)			(0.75	)			(0.62	)			(0.69	)
Return of capital		(0.05	)			(0.04	)			(0.04	)			—				—
Total distributions		(0.97	)			(0.71	)			(0.79	)			(0.62	)			(0.69	)
Net asset value, end of year	$	43.71			$	47.96			$	36.77			$	34.75			$	43.52
Total Return
Based on net asset value		(7.03	)%			32.65	%			8.17	%			(18.85	)%			(7.40	)%
Ratios to Average Net Assets
Total expenses		0.59	%			0.62	%			0.64	%			0.62	%			0.62	%
Net investment income		1.55	%			1.68	%			2.20	%			1.64	%			1.49	%
Supplemental Data
Net assets, end of year (000)	$	393,351			$	467,645			$	327,244			$	234,536			$	352,499
Portfolio turnover rate(d)		54	%(e)			54	%(e)			73	%(e)			71	%(e)			91	%(e)
(a)  Based on average shares outstanding. (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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (d)  Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).
(e)  Portfolio turnover rate excluding cash creations was as follows:		11	%			8	%			11	%			10	%			11	%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 55

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Colombia ETF
	Year Ended 08/31/18			Year Ended 08/31/17				Year Ended 08/31/16				Year Ended 08/31/15				Year Ended 08/31/14
Net asset value, beginning of year	$	14.58			$	13.18			$	11.88			$	28.22			$	25.98
Net investment income(a)		0.30				0.23				0.25				0.46	(b)			0.67
Net realized and unrealized gain (loss)(c)		(0.70	)			1.34				1.23				(16.34	)			2.24
Net increase (decrease)from investment operations		(0.40	)			1.57				1.48				(15.88	)			2.91
Distributions(d)
From net investment income		(0.22	)			(0.17	)			(0.18	)			(0.45	)			(0.63	)
From net realized gain		—				—				—				—				(0.03	)
Return of capital		—				—				—				(0.01	)			(0.01	)
Total distributions		(0.22	)			(0.17	)			(0.18	)			(0.46	)			(0.67	)
Net asset value, end of year	$	13.96			$	14.58			$	13.18			$	11.88			$	28.22
Total Return
Based on net asset value		(2.69	)%			12.05	%			12.49	%			(56.73	)%			11.44	%
Ratios to Average Net Assets
Total expenses		0.61	%			0.61	%			0.61	%			0.61	%			0.61	%
Net investment income		2.01	%			1.72	%			2.16	%			2.60	%(b)			2.54	%
Supplemental Data
Net assets, end of year (000)	$	25,834			$	22,594			$	17,136			$	14,251			$	25,396
Portfolio turnover rate(e)		26	%			14	%			68	%			86	%			34	%

^(a)  Based on average shares outstanding.

^(b)  Includes a special distribution from Ecopetrol SA. Excluding such special distribution, the net investment income would have been $0.33 per share and 1.87% 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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Israel ETF
	Year Ended 08/31/18			Year Ended 08/31/17				Year Ended 08/31/16				Year Ended 08/31/15				Year Ended 08/31/14
Net asset value, beginning of year	$	48.19			$	49.36			$	50.51			$	50.69			$	42.85
Net investment income(a)		0.59				0.62				0.71				1.23				0.87
Net realized and unrealized gain (loss)(b)		8.88				(0.98	)			(0.87	)			(0.34	)			7.95
Net increase (decrease)from investment operations		9.47				(0.36	)			(0.16	)			0.89				8.82
Distributions(c)
From net investment income		(1.04	)			(0.81	)			(0.99	)			(1.07	)			(0.98	)
Total distributions		(1.04	)			(0.81	)			(0.99	)			(1.07	)			(0.98	)
Net asset value, end of year	$	56.62			$	48.19			$	49.36			$	50.51			$	50.69
Total Return
Based on net asset value		19.91	%			(0.77	)%			(0.23	)%			1.80	%			20.67	%
Ratios to Average Net Assets
Total expenses		0.59	%			0.62	%			0.64	%			0.62	%			0.62	%
Net investment income		1.15	%			1.25	%			1.46	%			2.45	%			1.74	%
Supplemental Data
Net assets, end of year (000)	$	121,735			$	89,152			$	93,793			$	126,285			$	121,645
Portfolio turnover rate(d)		6	%			28	%			46	%			14	%			15	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 57

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Russia ETF
		Year Ended 08/31/18		Year Ended 08/31/17(a)				Year Ended 08/31/16(a)				Year Ended 08/31/15(a)				Year Ended 08/31/14(a)
Net asset value, beginning of year	$	32.13			$	27.92			$	25.03			$	36.68			$	39.68
Net investment income(b)		1.21				1.14				1.06				0.94				1.26
Net realized and unrealized gain (loss)(c)		0.22				4.07				2.65				(11.27	)			(4.01	)
Net increase (decrease)from investment operations		1.43				5.21				3.71				(10.33	)			(2.75	)
Distributions(d)
From net investment income		(1.09	)			(1.00	)			(0.82	)			(1.32	)			(0.25	)
Total distributions		(1.09	)			(1.00	)			(0.82	)			(1.32	)			(0.25	)
Net asset value, end of year	$	32.47			$	32.13			$	27.92			$	25.03			$	36.68
Total Return
Based on net asset value		4.37	%			18.73	%			15.62	%			(27.57	)%			(7.00	)%
Ratios to Average Net Assets
Total expenses		0.59	%			0.62	%			0.64	%			0.62	%			0.62	%
Net investment income		3.50	%			4.27	%			4.17	%			3.33	%			3.14	%
Supplemental Data
Net assets, end of year (000)	$	478,860			$	530,076			$	319,629			$	210,912			$	289,775
Portfolio turnover rate(e)		32	%			18	%			23	%			19	%			15	%

^(a)  Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI South Africa ETF
	Year Ended 08/31/18			Year Ended 08/31/17				Year Ended 08/31/16				Year Ended 08/31/15				Year Ended 08/31/14
Net asset value, beginning of year	$	62.62			$	52.78			$	57.44			$	70.77			$	58.88
Net investment income(a)		1.41				1.07				1.02				1.28				1.57
Net realized and unrealized gain (loss)(b)		(7.69	)			9.79				(3.24	)			(13.24	)			11.86
Net increase (decrease)from investment operations		(6.28	)			10.86				(2.22	)			(11.96	)			13.43
Distributions(c)
From net investment income		(1.47	)			(1.02	)			(2.44	)			(1.37	)			(1.54	)
Total distributions		(1.47	)			(1.02	)			(2.44	)			(1.37	)			(1.54	)
Net asset value, end of year	$	54.87			$	62.62			$	52.78			$	57.44			$	70.77
Total Return
Based on net asset value		(10.20	)%			20.91	%			(3.64	)%			(17.07	)%			23.13	%
Ratios to Average Net Assets
Total expenses		0.59	%			0.62	%			0.64	%			0.62	%			0.62	%
Net investment income		2.20	%			1.91	%			1.96	%			1.94	%			2.40	%
Supplemental Data
Net assets, end of year (000)	$	373,114			$	419,587			$	406,443			$	373,346			$	587,396
Portfolio turnover rate(d)		15	%			13	%			12	%			9	%			6	%

^(a)  Based on average shares outstanding.

^(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 59

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI Turkey ETF
	Year Ended 08/31/18			Year Ended 08/31/17				Year Ended 08/31/16				Year Ended 08/31/15				Year Ended 08/31/14
Net asset value, beginning of year	$	46.17			$	38.16			$	38.27			$	55.72			$	49.00
Net investment income(a)		1.01				0.97				0.96				1.13	(b)			0.85
Net realized and unrealized gain (loss)(c)		(26.05	)			8.12				(0.17	)			(17.49	)			6.75
Net increase (decrease)from investment operations		(25.04	)			9.09				0.79				(16.36	)			7.60
Distributions(d)
From net investment income		(1.04	)			(1.08	)			(0.90	)			(1.09	)			(0.88	)
Total distributions		(1.04	)			(1.08	)			(0.90	)			(1.09	)			(0.88	)
Net asset value, end of year	$	20.09			$	46.17			$	38.16			$	38.27			$	55.72
Total Return
Based on net asset value		(54.97	)%			24.23	%			1.98	%			(29.69	)%			15.52	%
Ratios to Average Net Assets
Total expenses		0.59	%			0.62	%			0.64	%			0.62	%			0.62	%
Net investment income		2.76	%			2.58	%			2.45	%			2.31	%(b)			1.64	%
Supplemental Data
Net assets, end of year (000)	$	386,797			$	424,727			$	368,225			$	371,225			$	515,367
Portfolio turnover rate(e)		7	%			6	%			6	%			6	%			8	%

^(a) Based on average shares outstanding.

^(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI USA Equal Weighted ETF
	Year Ended 08/31/18			Year Ended 08/31/17				Year Ended 08/31/16				Year Ended 08/31/15				Year Ended 08/31/14
Net asset value, beginning of year	$	51.30			$	46.05			$	42.51			$	43.08			$	35.26
Net investment income(a)		0.98				0.85				0.77				0.80				0.71
Net realized and unrealized gain (loss)(b)		7.94				5.18				3.63				(0.57	)			8.01
Net increase from investment operations		8.92				6.03				4.40				0.23				8.72
Distributions(c)
From net investment income		(0.89	)			(0.78	)			(0.86	)			(0.80	)			(0.90	)
Total distributions		(0.89	)			(0.78	)			(0.86	)			(0.80	)			(0.90	)
Net asset value, end of year	$	59.33			$	51.30			$	46.05			$	42.51			$	43.08
Total Return
Based on net asset value		17.55	%			13.22	%			10.54	%			0.48	%			24.98	%
Ratios to Average Net Assets
Total expenses		0.15	%			0.15	%			0.15	%			0.15	%			0.15	%
Net investment income		1.76	%			1.72	%			1.79	%			1.82	%			1.82	%
Supplemental Data
Net assets, end of year (000)	$	192,820			$	135,945			$	73,673			$	44,632			$	47,391
Portfolio turnover rate(d)		23	%			27	%			28	%			39	%			6	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 61

Notes to Financial Statements

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification Classification
MSCI Brazil(a)	Non-diversified
MSCI Chile(b)	Non-diversified
MSCI Colombia(c)	Non-diversified
MSCI Israel(d)	Non-diversified
MSCI Russia(e)	Non-diversified
MSCI South Africa	Non-diversified
MSCI Turkey	Non-diversified
MSCI USA Equal Weighted	Diversified

^(a)  Formerly the iShares MSCI Brazil Capped ETF.

^(b)  Formerly the iShares MSCI Chile Capped ETF.

^(c)  Formerly the iShares MSCI Colombia Capped ETF.

^(d)  Formerly the iShares MSCI Israel Capped ETF.

^(e)  Formerly the iShares MSCI Russia Capped ETF.

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

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Notes to Financial Statements  (continued)

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

N O T E S    T O    F I N A N C I A L    S  T A T E M E N T S 63

Notes to Financial Statements  (continued)

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:
iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
MSCI Israel
BNP Paribas New York Branch	$	133,320	$	133,320		$	—	$	—
Citigroup Global Markets Inc.		1,387,728		1,381,442			—		(6,286	)(b)
Goldman Sachs & Co.		191,420		191,420			—		—
JPMorgan Securities LLC		129,969		129,969			—		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		5,052,871		5,052,871			—		—
Scotia Capital (USA) Inc.		98,695		98,695			—		—
State Street Bank & Trust Company		1,844		1,844			—		—
	$	6,995,847	$	6,989,561		$	—	$	(6,286	)
MSCI Turkey
Citigroup Global Markets Inc.	$	819,675	$	819,675		$	—	$	—
Credit Suisse Securities (USA) LLC		5,196,101		5,196,101			—		—
Deutsche Bank Securities Inc.		3,477,912		3,477,912			—		—
Goldman Sachs & Co.		1,744,511		1,744,511			—		—
HSBC Bank PLC		37,147		37,147			—		—
JPMorgan Securities LLC		2,515,925		2,515,925			—		—
Macquarie Bank Limited		421,177		421,177			—		—
Merrill Lynch, Pierce, Fenner & Smith		652,230		652,230			—		—
Morgan Stanley & Co. LLC		1,728,206		1,728,206			—		—
UBS AG		585,796		585,796			—		—
UBS Securities LLC		104,599		104,599			—		—
	$	17,283,279	$	17,283,279		$	—	$	—

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Notes to Financial Statements  (continued)

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
MSCI USA Equal Weighted
Barclays Bank PLC	$	350,297	$	350,297		$	—	$	—
BNP Paribas New York Branch		309,392		309,392			—		—
Citigroup Global Markets Inc.		66,706		66,706			—		—
Credit Suisse Securities (USA) LLC		299,431		299,431			—		—
Goldman Sachs & Co.		1,014,644		1,014,644			—		—
HSBC Bank PLC		245,105		245,105			—		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		628,669		628,669			—		—
National Financial Services LLC		298,566		298,566			—		—
RBC Capital Markets LLC		15,316		15,316			—		—
SG Americas Securities LLC		314,720		314,720			—		—
UBS AG		18,545		18,545			—		—
UBS Securities LLC		695,358		695,358			—		—
	$	4,256,749	$	4,256,749		$	—	$	—

^(a)  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.

^(b)  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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

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Notes to Financial Statements (continued)

For its investment advisory services to each of the iShares MSCI Brazil, iShares MSCI Chile, iShares MSCI Israel, iShares MSCI Russia, iShares MSCI South Africa and iShares MSCI Turkey ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $2 billion		0.74	%
Over $2 billion, up to and including $4 billion		0.69
Over $4 billion, up to and including $8 billion		0.64
Over $8 billion, up to and including $16 billion		0.57
Over $16 billion, up to and including $24 billion		0.51
Over $24 billion, up to and including $32 billion		0.48
Over $32 billion		0.45

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

iShares ETF	Investment Advisory Fee
MSCI Colombia		0.61	%
MSCI USA Equal Weighted		0.15

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to a securities lending agreement, the iShares MSCI USA Equal Weighted ETF (the “Group 1 Fund”), retains 71.5% of securities lending income (which excludes collateral investment fees) 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, each of iShares MSCI Brazil ETF, iShares MSCI Chile ETF, iShares MSCI Colombia ETF, iShares MSCI Israel ETF, iShares MSCI Russia ETF, iShares MSCI South Africa ETF and iShares MSCI Turkey ETF (the “Group 2 Funds”), retains 80% of securities lending income (which excludes collateral investment fees) 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 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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid     to BTC
MSCI Colombia	$	154
MSCI Israel		17,527
MSCI South Africa		6,671
MSCI Turkey		233,777
MSCI USA Equal Weighted		12,969

Officers and Trustees: Certain officers and/or trustees of the Company are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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.

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Notes to Financial Statements  (continued)

For the year ended August 31, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Israel	$	282,510	$	127,235
MSCI Russia		3,700,467		2,607,059
MSCI USA Equal Weighted		10,020,165		7,114,751

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 shown as dividends – affiliated in the statement of operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
MSCI Brazil	$	2,999,711,789	$	2,204,278,271
MSCI Chile		258,217,537		294,681,339
MSCI Colombia		10,291,230		5,947,459
MSCI Israel		6,504,932		6,351,975
MSCI Russia		193,173,668		193,391,480
MSCI South Africa		68,643,770		69,063,904
MSCI Turkey		31,328,222		25,313,785
MSCI USA Equal Weighted		35,667,251		34,687,489

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind     Sales
MSCI Colombia	$	169,793	$	46,315
MSCI Israel		29,262,707		15,468,881
MSCI Russia		181,251,919		242,338,319
MSCI South Africa		223,247,670		215,303,408
MSCI Turkey		332,537,453		147,076,140
MSCI USA Equal Weighted		78,015,122		43,086,216

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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. As of August 31, 2018, the following permanent differences attributable to passive foreign investment companies, the

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Notes to Financial Statements  (continued)

characterization of corporate actions, the expiration of capital loss carryforwards, distributions paid in excess of taxable income, foreign currency transactions, realized gains (losses) from in-kind redemptions and the characterization of expenses, were reclassified to the following accounts:

iShares ETF	Paid-in Capital			Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
MSCI Brazil	$	(198,226,310	)	$	(4,979,725	)	$	203,206,035
MSCI Chile		(11,712,090	)		(54,027	)		11,766,117
MSCI Colombia		17,544			(42,690	)		25,146
MSCI Israel		(7,306,232	)		523,770			6,782,462
MSCI Russia		41,212,910			(177,220	)		(41,035,690	)
MSCI South Africa		14,319,324			169,697			(14,489,021	)
MSCI Turkey		(8,926,253	)		(70,451	)		8,996,704
MSCI USA Equal Weighted		10,273,255			5,066			(10,278,321	)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
MSCI Brazil
Ordinary income	$	186,603,443	$	93,579,029
MSCI Chile
Ordinary income	$	7,431,414	$	6,944,133
Return of capital		465,343		462,190
	$	7,896,757	$	7,406,323
MSCI Colombia
Ordinary income	$	365,825	$	229,358
MSCI Israel
Ordinary income	$	2,219,395	$	1,597,362
MSCI Russia
Ordinary income	$	20,645,275	$	13,531,335
MSCI South Africa
Ordinary income	$	9,978,039	$	7,473,325
MSCI Turkey
Ordinary income	$	8,942,652	$	10,121,626
MSCI USA Equal Weighted
Ordinary income	$	2,338,579	$	1,736,320

As of August 31, 2018, 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	$	52,048,706	$	(2,448,185,257	)	$	357,605,118		$	—		$	(2,038,531,433	)
MSCI Chile		—		(126,780,629	)		58,838,643			(51,786	)		(67,993,772	)
MSCI Colombia		100,951		(8,968,691	)		(1,388,624	)		—			(10,256,364	)
MSCI Israel		—		(40,534,147	)		(365,348	)		—			(40,899,495	)
MSCI Russia		13,766,934		(83,968,805	)		(57,533,183	)		—			(127,735,054	)
MSCI South Africa		566,892		(114,190,385	)		(116,438,402	)		—			(230,061,895	)
MSCI Turkey		239,499		(85,583,816	)		(336,827,971	)		—			(422,172,288	)
MSCI USA Equal Weighted		692,087		(950,870	)		23,163,763			—			22,904,980

^(a)  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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the characterization of corporate actions.

^(b)  The Funds elected to defer certain qualified late-year losses and recognize such losses in the year ending next taxable year.

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Notes to Financial Statements  (continued)

As of August 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non-Expiring(a)		Expiring 2019		Total
MSCI Brazil	$	2,448,185,257	$	—	$	2,448,185,257
MSCI Chile		125,803,638		976,991		126,780,629
MSCI Colombia		8,968,691		—		8,968,691
MSCI Israel		33,403,898		7,130,249		40,534,147
MSCI Russia		83,968,805		—		83,968,805
MSCI South Africa		108,053,243		6,137,142		114,190,385
MSCI Turkey		81,724,632		3,859,184		85,583,816
MSCI USA Equal Weighted		950,870		—		950,870

^(a) Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2018, the iShares MSCI Chile ETF utilized $24,596,626 of its capital loss carryforwards.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Brazil	$	5,085,273,911	$	1,192,466,324	$	(830,472,775	)	$	361,993,549
MSCI Chile		334,604,566		107,497,625		(48,658,973	)		58,838,652
MSCI Colombia		27,138,301		3,374,693		(4,785,500	)		(1,410,807	)
MSCI Israel		129,082,499		23,748,703		(24,084,471	)		(335,768	)
MSCI Russia		536,814,360		36,078,352		(93,611,287	)		(57,532,935	)
MSCI South Africa		489,325,755		20,626,073		(137,035,133	)		(116,409,060	)
MSCI Turkey		741,949,526		4,061		(336,825,519	)		(336,821,458	)
MSCI USA Equal Weighted		174,267,454		29,231,082		(6,067,319	)		23,163,763

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9. LINE OF CREDIT

The iShares MSCI Colombia ETF, along with certain other iShares funds, is a party to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. 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, 2018.

At a meeting held on September 12-13, 2018, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $300 million and (ii) extending the expiration date to October 23, 2019. These changes to the credit agreement are expected to be effective on or around October 25, 2018.

10. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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Notes to Financial Statements  (continued)

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

The United States and the European Union, along with the regulatory bodies of a number of countries including Japan, Australia, Norway, Switzerland and Canada, have imposed economic sanctions, which can consist of prohibiting certain securities trades, prohibiting certain private transactions in the energy sector, asset freezes and prohibition of all business, on certain Russian individuals and Russian corporate entities. Broader sanctions on Russia could also be instituted. 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, and may negatively impact a fund. 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.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

11. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Brazil
Shares sold		51,100,000		$	2,106,146,096			50,950,000		$	1,830,568,929
Shares redeemed		(37,300,000	)		(1,288,144,556	)		(9,350,000	)		(339,939,142	)
Net increase		13,800,000		$	818,001,540			41,600,000		$	1,490,629,787
MSCI Chile
Shares sold		4,200,000		$	204,165,240			5,400,000		$	222,913,747
Shares redeemed		(4,950,000	)		(251,559,714	)		(4,550,000	)		(190,929,443	)
Net increase (decrease)		(750,000	)	$	(47,394,474	)		850,000		$	31,984,304

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Notes to Financial Statements  (continued)

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Colombia
Shares sold		400,000		$	6,036,941			250,000		$	3,562,888
Shares redeemed		(100,000	)		(1,515,157	)		—			—
Net increase		300,000		$	4,521,784			250,000		$	3,562,888
MSCI Israel
Shares sold		600,000		$	30,421,376			300,000		$	14,260,227
Shares redeemed		(300,000	)		(15,491,100	)		(350,000	)		(18,031,594	)
Net increase (decrease)		300,000		$	14,930,276			(50,000	)	$	(3,771,367	)
MSCI Russia
Shares sold		6,800,000		$	228,623,987			6,000,000	(a)	$	189,716,789
Shares redeemed		(8,550,000	)		(292,319,234	)		(950,000	)(a)		(28,528,183	)
Net increase (decrease)		(1,750,000	)	$	(63,695,247	)		5,050,000		$	161,188,606
MSCI South Africa
Shares sold		3,500,000		$	223,536,185			1,600,000		$	87,244,010
Shares redeemed		(3,400,000	)		(216,092,266	)		(2,600,000	)		(144,358,566	)
Net increase (decrease)		100,000		$	7,443,919			(1,000,000	)	$	(57,114,556	)
MSCI Turkey
Shares sold		13,950,000		$	339,600,282			3,150,000		$	103,777,923
Shares redeemed		(3,900,000	)		(147,208,930	)		(3,600,000	)		(136,607,007	)
Net increase (decrease)		10,050,000		$	192,391,352			(450,000	)	$	(32,829,084	)
MSCI USA Equal Weighted
Shares sold		1,400,000		$	78,296,192			1,250,000		$	60,481,105
Shares redeemed		(800,000	)		(43,309,884	)		(200,000	)		(10,078,303	)
Net increase		600,000		$	34,986,308			1,050,000		$	50,402,802

^(a)  Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the statement of assets and liabilities.

12. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

13. 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 additional disclosure in the financial statements.

N O T E S    T O    F I N A N C I A L    S  T A T E M E N T S 71

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of iShares MSCI Brazil ETF, iShares MSCI Chile ETF, iShares MSCI Colombia ETF,

iShares MSCI Israel ETF, iShares MSCI Russia ETF, iShares MSCI South Africa ETF,

iShares MSCI Turkey ETF and iShares MSCI USA Equal Weighted ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares MSCI Brazil ETF, iShares MSCI Chile ETF, iShares MSCI Colombia ETF, iShares MSCI Israel ETF, iShares MSCI Russia ETF, iShares MSCI South Africa ETF, iShares MSCI Turkey ETF and iShares MSCI USA Equal Weighted ETF (eight of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information (unaudited)

For corporate shareholders, the percentage of ordinary income distributions paid during the fiscal year ended August 31, 2018 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends-Received Deduction
MSCI USA Equal Weighted		77.52	%

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend Income
MSCI Israel	$	1,794,373
MSCI Russia		27,127,884
MSCI South Africa		13,779,187
MSCI Turkey		11,653,884
MSCI USA Equal Weighted		2,199,691

For the fiscal year ended August 31, 2018, 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
MSCI Brazil	$	284,755,832	$	25,293,162
MSCI Chile		12,750,070		2,368,005
MSCI Colombia		619,234		18,054
MSCI Israel		2,211,118		449,017
MSCI Russia		27,799,086		2,767,294
MSCI South Africa		14,575,302		2,089,380
MSCI Turkey		11,915,847		1,622,738

I M P O R T A N T    T A X    I N F O R M  A T I O N 73

Board Review and Approval of Investment Advisory Contract

I. iShares MSCI Brazil ETF and iShares MSCI Chile 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c)Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider),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 the 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.

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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

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

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Board Review and Approval of Investment Advisory Contract  (continued)

Costs of Services Provided to Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 the15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/man management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Colombia 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

B O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T 75

Board Review and Approval of Investment Advisory Contract  (continued)

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c)Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c)Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider),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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 the15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

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Board Review and Approval of Investment Advisory Contract  (continued)

Including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Israel 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests,

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Board Review and Approval of Investment Advisory Contract  (continued)

and requested certain additional information, which management agreed to provide. At a meeting held on May 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider),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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 the15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information considered.

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Board Review and Approval of Investment Advisory Contract  (continued)

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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

IV. iShares MSCI Russia 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c)Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c)Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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

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Board Review and Approval of Investment Advisory Contract  (continued)

Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 the15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with

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Board Review and Approval of Investment Advisory Contract  (continued)

the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

V. iShares MSCI South Africa ETF and iShares MSCI Turkey 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees

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Board Review and Approval of Investment Advisory Contract  (continued)

and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the

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Board Review and Approval of Investment Advisory Contract  (continued)

Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

VI. iShares MSCIUSA 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c)Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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Board Review and Approval of Investment Advisory Contract  (continued)

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

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Board Review and Approval of Investment Advisory Contract  (continued)

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 (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

B O A R D   R E V I E W   A N D   A P P R O V A L   O F   I N V E S T M E N T   A D V I S O R Y   C O N T R A C T 85

Supplemental Information (unaudited)

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 Brazil	$	0.946484	$	—	$	—	$	0.946484		100	%		—	%		—	%		100	%
MSCI Chile		0.969565		—		—		0.969565		100			—			—			100
MSCI Colombia		0.224757		—		—		0.224757		100			—			—			100
MSCI Israel		0.914589		—		0.125666		1.040255		88			—			12			100
MSCI Russia		1.072472		—		0.016387		1.088859		98			—			2			100
MSCI South Africa		1.474424		—		—		1.474424		100			—			—			100
MSCI USA Equal Weighted		0.868036		—		0.023149		0.891185		97			—			3			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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.

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Supplemental Information (unaudited)  (continued)

iShares MSCI Brazil ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0% and Less than 5.5%		1		0.07	%
Greater than 4.0% 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%		2		0.14
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		8		0.58
Greater than 1.5% and Less than 2.0%		17		1.23
Greater than 1.0% and Less than 1.5%		54		3.90
Greater than 0.5% and Less than 1.0%		179		12.93
Greater than 0.0% and Less than 0.5%		408		29.49
At NAV		11		0.79
Less than 0.0% and Greater than –0.5%		429		31.01
Less than –0.5% and Greater than –1.0%		187		13.51
Less than –1.0% and Greater than –1.5%		57		4.12
Less than –1.5% and Greater than –2.0%		11		0.79
Less than –2.0% and Greater than –2.5%		12		0.87
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0% and Greater than –3.5%		1		0.07
		1,384		100.00	%

iShares MSCI Chile ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.5% and Less than 6.0%		1		0.07	%
Greater than 5.0% and Less than 5.5%		1		0.07
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		14		1.01
Greater than 1.0% and Less than 1.5%		35		2.53
Greater than 0.5% and Less than 1.0%		141		10.19
Greater than 0.0% and Less than 0.5%		453		32.74
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		449		32.45
Less than –0.5% and Greater than –1.0%		210		15.17
Less than –1.0% and Greater than –1.5%		48		3.47
Less than –1.5% and Greater than –2.0%		14		1.01
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –3.0% and Greater than –3.5%		3		0.22
		1,384		100.00	%

S U P P L E M E N T A L   I N F O R M A T I O N 87

Supplemental Information (unaudited)  (continued)

iShares MSCI Colombia ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		1		0.08	%
Greater than 3.0% and Less than 3.5%		1		0.08
Greater than 2.5% and Less than 3.0%		5		0.39
Greater than 2.0% and Less than 2.5%		17		1.34
Greater than 1.5% and Less than 2.0%		40		3.16
Greater than 1.0% and Less than 1.5%		120		9.47
Greater than 0.5% and Less than 1.0%		284		22.42
Greater than 0.0% and Less than 0.5%		372		29.35
At NAV		10		0.79
Less than 0.0% and Greater than –0.5%		262		20.68
Less than –0.5% and Greater than –1.0%		114		9.00
Less than –1.0% and Greater than –1.5%		31		2.45
Less than –1.5% and Greater than –2.0%		8		0.63
Less than –2.0% and Greater than –2.5%		2		0.16
		1,267		100.00	%

iShares MSCI Israel ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		5		0.36
Greater than 1.0% and Less than 1.5%		24		1.73
Greater than 0.5% and Less than 1.0%		116		8.38
Greater than 0.0% and Less than 0.5%		533		38.52
At NAV		15		1.08
Less than 0.0% and Greater than –0.5%		505		36.50
Less than –0.5% and Greater than –1.0%		135		9.76
Less than –1.0% and Greater than –1.5%		34		2.46
Less than –1.5% and Greater than –2.0%		10		0.72
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5% and Greater than –3.0%		1		0.07
		1,384		100.00	%

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Supplemental Information (unaudited)  (continued)

iShares MSCI Russia ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		2		0.14	%
Greater than 4.5% and Less than 5.0%		2		0.14
Greater than 4.0% and Less than 4.5%		4		0.29
Greater than 3.5% and Less than 4.0%		4		0.29
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		11		0.79
Greater than 2.0% and Less than 2.5%		15		1.08
Greater than 1.5% and Less than 2.0%		38		2.75
Greater than 1.0% and Less than 1.5%		78		5.64
Greater than 0.5% and Less than 1.0%		218		15.75
Greater than 0.0% and Less than 0.5%		416		30.07
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		283		20.46
Less than –0.5% and Greater than –1.0%		144		10.40
Less than –1.0% and Greater than –1.5%		86		6.21
Less than –1.5% and Greater than –2.0%		32		2.31
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%		7		0.51
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –5.0% and Greater than –5.5%		1		0.07
Less than –6.0%		2		0.14
		1,384		100.00	%

iShares MSCI South Africa ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 4.5% and Less than 5.0%		2		0.14
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		14		1.01
Greater than 1.5% and Less than 2.0%		32		2.31
Greater than 1.0% and Less than 1.5%		93		6.72
Greater than 0.5% and Less than 1.0%		258		18.64
Greater than 0.0% and Less than 0.5%		380		27.47
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		289		20.89
Less than –0.5% and Greater than –1.0%		172		12.43
Less than –1.0% and Greater than –1.5%		71		5.13
Less than –1.5% and Greater than –2.0%		30		2.17
Less than –2.0% and Greater than –2.5%		15		1.08
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5% and Greater than –4.0%		3		0.22
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –4.5% and Greater than –5.0%		2		0.14
		1,384		100.00	%

S U P P L E M E N T A L   I N F O R M A T I O N 89

Supplemental Information (unaudited)  (continued)

iShares MSCI Turkey ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 5.5% and Less than 6.0%		1		0.07
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		6		0.43
Greater than 1.5% and Less than 2.0%		30		2.17
Greater than 1.0% and Less than 1.5%		62		4.48
Greater than 0.5% and Less than 1.0%		209		15.10
Greater than 0.0% and Less than 0.5%		441		31.88
At NAV		11		0.79
Less than 0.0% and Greater than –0.5%		350		25.30
Less than –0.5% and Greater than –1.0%		137		9.90
Less than –1.0% and Greater than –1.5%		75		5.42
Less than –1.5% and Greater than –2.0%		27		1.95
Less than –2.0% and Greater than –2.5%		18		1.30
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0% and Greater than –3.5%		1		0.07
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
		1,384		100.00	%

iShares MSCI USA Equal Weighted ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		777		56.14	%
At NAV		133		9.61
Less than 0.0% and Greater than –0.5%		474		34.25
		1,384		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD if such managers market a fund to EU investors.

BFA has registered the iShares MSCI Brazil ETF and 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

BFA is required under the AIFMD 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 Funds.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the each 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.

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Supplemental Information (unaudited)  (continued)

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

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 each 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 iShares MSCI Brazil ETF in respect of BFA’s financial year ending December 31, 2017 was USD 720.72 thousand. This figure is comprised of fixed remuneration of USD 287.27 thousand and variable remuneration of USD 433.45 thousand. There were a total of 417 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Brazil ETF in respect of BFA’s financial year ending December 31, 2017, to its senior management was USD 100.83 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 18.78 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, 2017 was USD 12.56 thousand. This figure is comprised of fixed remuneration of USD 5.01 thousand and variable remuneration of USD 7.55 thousand. There were a total of 417 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, 2017, to its senior management was USD 1.76 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.33 thousand.

S U P P L E M E N T A L   I N F O R M A T I O N 91

Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S.ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^(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. and its affiliates.

^(b) Mark K. 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.

Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company(since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios)(since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information (continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001- 2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

D I R E C T O R   A N D   O F F I C E R   I N F O R M A T I O N 93

General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

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Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity

ADR	American Depositary Receipt
GDR	Global Depositary Receipt
NVS	Non-Voting Shares

G L O S S A R Y   O F   T E R M S   U S E D   I N   T H I S   R E P O R T 95

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

	This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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. ©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

    2018 ANNUAL REPORT

iShares, Inc.

u iShares MSCI Australia ETF | EWA | NYSE Arca

u iShares MSCI Canada ETF | EWC | NYSE Arca

u iShares MSCI Japan ETF | EWJ | NYSE Arca

u iShares MSCI Mexico ETF | EWW | NYSE Arca

u iShares MSCI South Korea ETF | EWY | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		16
Shareholder Expenses		16
Schedules of Investments		17
Financial Statements
Statements of Assets and Liabilities		36
Statements of Operations		38
Statements of Changes in Net Assets		40
Financial Highlights		43
Notes to Financial Statements		48
Report of Independent Registered Public Accounting Firm		57
Important Tax Information (Unaudited)		58
Board Review and Approval of Investment Advisory Contract		59
Supplemental Information		65
Director and Officer Information		69
General Information		71
Glossary of Terms Used in this Report		72

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T     O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® MSCI Australia ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		4.43	%		3.76	%		4.40	%		4.43	%		20.27	%		53.87	%
Fund Market		3.73			3.81			4.43			3.73			20.57			54.20
Index		4.75			4.14			4.76			4.75			22.48			59.19

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

Expense Example

Actual							Hypothetical 5% Return
Beginning   Account Value		Ending Account Value		Expenses Paid During			Beginning Account Value		Ending Account Value		Expenses Paid During			Annualized Expense
	(03/01/18)		(08/31/18)		the Period	(a)		(03/01/18)		(08/31/18)		the Period	(a)		Ratio
	$      1,000.00	$	995.40	$	2.41		$	1,000.00	$	1,022.80	$	2.45			0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018 (continued) iShares^® MSCI Australia ETF

Portfolio Management Commentary

Australia’s economy strengthened over the course of the reporting period, expanding by 3.4% year-over-year in the second quarter of 2018. Stronger consumer spending drove much of the increase, with exports also contributing to growth. In particular, energy exports rose sharply, reflecting strong demand from countries across Asia for Australian coal. Amid more robust economic conditions, the unemployment rate reached a six-year low of 5.3% at the end of the reporting period, though wage gains were muted. In that environment, Australian companies posted record corporate profits, led by mining, construction, and utilities. At the same time, the Reserve Bank of Australia (“RBA”) kept short-term interest rates at a record low throughout the reporting period, even as the economy improved and inflation crept up to the lower end of the RBA’s 2-3% inflation target.

From a sector perspective, healthcare stocks contributed the most to the Index’s performance. The biotechnology industry led the advance, benefiting from record profits and robust U.S. sales. Other notable contributions came from stocks in the consumer staples, materials, and energy sectors, reflecting the increase in consumer spending and strong materials and energy exports, respectively.

The leading detractors from the Index’s performance were Australian banks, as the nation’s financials sector sold off amid allegations of misconduct by its four largest banks. In addition, Australian home prices declined in 2018 after years of increases, leading to a downturn in sales that weighed on banks’ home lending business. The pace of mortgage loan growth reached a record low, and lenders competed to offer low-rate, interest-only loans to capture market share, making them especially vulnerable to a decline in home prices.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Financials	38.5	%
Materials	17.4
Health Care	10.0
Consumer Staples	8.3
Real Estate	7.3
Energy	5.9
Industrials	5.3
Consumer Discretionary	3.0
Utilities	2.1
Telecommunication Services	1.2
Information Technology	1.0

TEN LARGEST HOLDINGS
Security	Percent of Total Investments	(a)
Commonwealth Bank of Australia	9.1	%
BHP Billiton Ltd.	7.8
CSL Ltd.	7.5
Westpac Banking Corp.	7.1
Australia & New Zealand Banking Group Ltd.	6.2
National Australia Bank Ltd.	5.6
Wesfarmers Ltd.	4.3
Macquarie Group Ltd.	3.1
Woolworths Group Ltd.	2.7
Woodside Petroleum Ltd.	2.5

^(a) Excludes money market funds.

F U N D     S U M M A R Y 7

Fund Summary as of August 31, 2018 iShares^® MSCI Canada ETF

Investment Objective

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 Custom 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		5.61	%		3.13	%		1.49	%		5.61	%		16.68	%		15.92	%
Fund Market		5.49			3.10			1.50			5.49			16.50			16.07
Index(a)		5.82			3.32			1.69			5.82			17.72			18.23
MSCI Canada Index		5.79			3.31			1.69			5.79			17.68			18.19
MSCI Canada Custom Capped Index(b)		N/A			N/A			N/A			N/A			N/A			N/A

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

^(a)  Index performance through August 31, 2017 reflects the performance of the MSCI Canada Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI Canada Custom Capped Index, which, effective as of September 1, 2017, replaced the MSCI Canada Index as the underlying index of the Fund.

^(b)  The inception date of the MSCI Canada Custom Capped Index was May 12, 2017. The cumulative total return of this index for the period May 12, 2017 through August 31, 2018 was 13.87%.

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.

Expense Example

Actual							Hypothetical 5% Return
Beginning Account Value		Ending Account Value		Expenses Paid During			Beginning Account Value		Ending Account Value		Expenses Paid During			Annualized Expense
	(03/01/18)		(08/31/18)		the Period	(a)		(03/01/18)		(08/31/18)		the Period	(a)		Ratio
	$    1,000.00	$	1,045.00	$	2.47		$	1,000.00	$	1,022.80	$	2.45			0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Canada ETF

Portfolio Management Commentary

Canada’s economic growth rate slowed during the reporting period. The housing market cooled after years of record sales volumes as the price-to-rent ratio (a measure of affordability) reached one of the highest levels in the world. Consumer spending also weakened as retail sales growth slowed meaningfully. Nonetheless, Canadian manufacturing activity expanded, reflecting strength in energy and mining production, and the unemployment rate declined to its lowest level in more than 40 years. Meanwhile, inflation rose to its highest level since September 2011, prompting the Bank of Canada to raise short-term interest rates three times during the reporting period.

From a sector perspective, financials contributed the most to the Index’s return. Canadian banks led the advance, benefiting from strong performance in global capital markets and rising interest rates, which led to higher net interest margins (the difference between the interest banks pay to depositors and the interest they receive from borrowers). The industrials sector also contributed to the Index’s return as road and rail stocks benefited from strong shipment volumes for energy and lumber.

Other sectors that contributed meaningfully to the Index’s performance included energy and information technology. Energy companies operating in Canada’s oil sands benefited from rising production and a significant increase in oil prices during the reporting period. In the information technology sector, software companies and IT services stocks benefited from rising U.S. sales and a lack of exposure to U.S. tariffs.

On the downside, the materials sector detracted modestly from the Index’s performance during the reporting period as Canadian gold mining companies declined along with the price of the precious metal. Diversified metals and mining companies and silver producers also detracted, declining along with the prices of copper and silver, respectively.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of
		Total Investments	(a)
Financials		41.5	%
Energy		21.3
Materials		9.3
Industrials		8.9
Consumer Discretionary		5.0
Information Technology		4.3
Consumer Staples		3.8
Telecommunication Services		2.3
Utilities		2.2
Other (each representing less than 1%)		1.4

TEN LARGEST HOLDINGS
Security	Percent of
		Total Investments	(a)
Royal Bank of Canada		8.2	%
Toronto-Dominion Bank (The)		7.9
Bank of Nova Scotia (The)		5.0
Suncor Energy Inc.		4.8
Canadian National Railway Co.		4.7
Enbridge Inc.		4.1
Bank of Montreal		3.8
Canadian Natural Resources Ltd.		3.0
Canadian Imperial Bank of Commerce		2.9
TransCanada Corp.		2.7

^(a) Excludes money market funds.

F U N D     S U M M A R Y 9

Fund Summary as of August 31, 2018 iShares^® MSCI Japan ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		8.67	%		7.46	%		3.91	%		8.67	%		43.28	%		46.75	%
Fund Market		7.95			7.57			4.05			7.95			44.01			48.72
Index		9.05			7.84			4.39			9.05			45.86			53.69

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

Expense Example

Actual							Hypothetical 5% Return
Beginning Account Value		Ending Account Value		Expenses Paid During			Beginning Account Value		Ending Account Value		Expenses Paid During			Annualized Expense
	(03/01/18)		(08/31/18)		the Period	(a)		(03/01/18)		(08/31/18)		the Period	(a)		Ratio
	$    1,000.00	$	955.70	$	2.37		$	1,000.00	$	1,022.80	$	2.45			0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

10 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Japan ETF

Portfolio Management Commentary

Japanese economic growth moderated during the reporting period as the economy contracted in the first quarter of 2018, ending a streak of eight straight quarters of expansion, before turning positive again in the second quarter. The pace of manufacturing activity also slowed, but nevertheless expanded for two straight years through August 2018. The nation’s jobless rate reached its lowest level since October 1992, helping wages rise at the fastest pace in 21 years in June 2018. These factors led to a strong increase in private consumption.

Inflation remained below the Bank of Japan’s 2% target, with consumer prices rising 0.9% for the twelve months ended July 2018. In an ongoing effort to stimulate the economy and inflation, the central bank maintained its extraordinary stimulus policies, targeting negative short-term interest rates and flat long-term bond yields. In that environment, corporate profits attained record levels in 2017, but reported earnings generally disappointed in the first quarter of 2018.

The consumer discretionary sector contributed the most to the Index’s performance, led by the automobile manufacturers and consumer electronics industries. Japan’s leading automobile manufacturers benefited from increased global vehicle sales, though higher input costs and concerns about tariffs resulted in these stocks declining somewhat late in the reporting period. Consumer electronics companies benefited from strong demand for video game software.

The industrials and healthcare sectors also contributed to the Index’s return. Among industrials, companies in the trading companies and distributors industry posted record profits due to a rebound in prices for a host of commodities, including coal and base metals. Biotechnology stocks led the healthcare sector’s advance, benefiting from a number of successfully-concluded partnership deals and drug trials.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Industrials	20.8	%
Consumer Discretionary	19.9
Information Technology	12.8
Financials	12.0
Consumer Staples	8.1
Health Care	8.0
Materials	6.0
Telecommunication Services	5.4
Real Estate	3.9
Utilities	1.8
Energy	1.3

TEN LARGEST HOLDINGS
Security	Percent of Total Investments	(a)
Toyota Motor Corp.	4.1	%
SoftBank Group Corp.	2.2
Sony Corp.	2.1
Mitsubishi UFJ Financial Group Inc.	2.1
Keyence Corp.	1.6
Sumitomo Mitsui Financial Group Inc.	1.5
Honda Motor Co. Ltd.	1.4
KDDI Corp.	1.3
Mizuho Financial Group Inc.	1.2
Nintendo Co. Ltd.	1.2

^(a)  Excludes money market funds.

F U N D   S U M M A R Y 11

Fund Summary as of August 31, 2018 iShares ^® MSCI Mexico ETF

Investment Objective

The iShares MSCI Mexico ETF (the “Fund”) (formerly the iShares MSCI Mexico Capped ETF) seeks to track the investment results of a broad-based index composed of Mexican equities, as represented by the MSCI Mexico IMI 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(9.02	)%		(2.15	)%		1.39	%		(9.02	)%		(10.28	)%		14.81	%
Fund Market		(8.76	)		(2.07	)		1.37			(8.76	)		(9.92	)		14.54
Index		(8.75	)		(2.00	)		1.29			(8.75	)		(9.60	)		13.65

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance 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 IMI 25/50 Index.

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.

Expense Example

Actual							Hypothetical 5% Return
Beginning   Account Value		Ending Account Value		Expenses Paid During			Beginning Account Value		Ending Account Value		Expenses Paid During			Annualized Expense
	(03/01/18)		(08/31/18)		the Period	(a)		(03/01/18)		(08/31/18)		the Period	(a)		Ratio
	$    1,000.00	$	1,020.70	$	2.44		$	1,000.00	$	1,022.80	$	2.45			0.48	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Mexico ETF

Portfolio Management Commentary

Mexico’s economy struggled early in the reporting period when a powerful earthquake and hurricane disrupted several industries essential to its growth, including tourism and oil production. The natural disasters and concerns about the nation’s trade relationship with the U.S. led to Mexico’s first economic contraction in nearly two years. However, Mexico’s economy rebounded later in the reporting period, driven by robust wholesale and retail trade, as well as a strong recovery in manufacturing. Mexican exports reached an all-time high, paced by shipments of oil and automobiles. The election of President Andrés Manuel López Obrador led to a rebound in Mexico’s stock market late in the reporting period, and a tentative agreement on a new trade deal with the U.S. further boosted the country’s economic outlook.

The materials sector was the largest detractor from the Index’s performance. Within the sector, tariffs imposed by the U.S. on steel and aluminum imports weighed on Mexican metals and mining companies. In addition, construction materials companies struggled as the government scaled back its plans to increase construction spending and pricing for cement and steel grew increasingly volatile.

The consumer discretionary sector was another meaningful detractor from the Index’s return. Media companies within the sector detracted the most as the weakness of the Mexican peso relative to the U.S. dollar adversely affected corporate profits. The debt of Mexico’s media companies is primarily denominated in U.S. dollars, which strengthened considerably relative to the Mexican peso during the reporting period. The telecommunications services sector also restrained the Index’s performance due in part to a declining wireless subscriber base.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of    Total Investments(a)
Consumer Staples		27.4%
Financials		17.4
Telecommunication Services		15.9
Materials		13.1
Industrials		11.2
Consumer Discretionary		7.3
Real Estate		5.8
Utilities		1.4
Health Care		0.5

TEN LARGEST HOLDINGS
Security	Percent of    Total Investments(a)

America Movil SAB de CV, Series L	15.0%
Fomento Economico Mexicano SAB de CV	9.7
Grupo Financiero Banorte SAB de CV, Series O	9.2
Wal-Mart de Mexico SAB de CV	7.4
Grupo Mexico SAB de CV, Series B	4.6
Cemex SAB de CV	4.5
Grupo Televisa SAB	4.3
Grupo Aeroportuario del Sureste SAB de CV, Series B	2.3
Fibra Uno Administracion SA de CV	2.3
Alfa SAB de CV, Class A	2.2

^(a)  Excludes money market funds.

F U N D     S U M M A R Y 13

Fund Summary as of August 31, 2018 iShares^® MSCI South Korea ETF

Investment Objective

The iShares MSCI South Korea ETF (the “Fund”) (formerly the iShares MSCI South Korea Capped ETF) 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		2.15	%		5.14	%		5.91	%		2.15	%		28.50	%		77.52	%
Fund Market		1.17			5.17			5.91			1.17			28.69			77.60
Index		2.62			5.64			6.49			2.62			31.56			87.51

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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.

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.

Expense Example

Actual					Hypothetical 5% Return
Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)		Expenses     Paid During     the Period (a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses     Paid During     the Period (a)		Annualized Expense Ratio
$        1,000.00	$	927.00	$	2.87	$	1,000.00	$	1,022.20	$	3.01		0.59	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI South Korea ETF

Portfolio Management Commentary

South Korea’s economy grew at a solid, steady pace during the reporting period. The expansion was primarily driven by robust demand for exports, which historically account for more than half of South Korea’s economic growth. Semiconductor exports were particularly strong, with shipments reaching a record high. Increased sales of petrochemicals and automobiles to trading partners overseas were also beneficial. However, South Korea’s domestic economy struggled as rising unemployment, falling consumer confidence, and an escalating trade dispute between the U.S. and China hindered growth.

From a sector perspective, the information technology sector was the largest contributor to the Index’s performance. The technology hardware and equipment industry led the gains in the sector as the advanced technology of Korean televisions helped increase their market share over Chinese competitors. Strong worldwide demand for semiconductors, particularly memory chips, led to solid earnings for South Korean semiconductor companies as well.

The healthcare sector also contributed to the Index’s return, benefiting from the South Korean government’s increased spending on medical benefits. Within the sector, a number of biotechnology stocks posted sizable gains, especially those related to the production of biosimilars, which are biopharmaceutical drugs demonstrated to have active properties similar to drugs that have already been licensed.

On the downside, the financials sector was the largest detractor from the Index’s performance. Banks detracted the most as stricter borrowing regulations, hiring irregularities, and corruption allegations weighed on the industry. The materials sector also detracted from the Index’s return as chemicals and metals and mining companies weighed on performance in the sector. The rising price of oil, a key ingredient in chemical production, reduced the profit margins of chemicals companies, while metals and mining companies were adversely affected by global trade conflicts.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of    Total Investments(a)
Information Technology		38.8%
Financials		13.2
Consumer Discretionary		11.3
Industrials		10.2
Materials		8.1
Consumer Staples		6.9
Health Care		6.7
Energy		2.6
Utilities		1.2
Telecommunication Services		1.0

TEN LARGEST HOLDINGS
Security	Percent of    Total Investments(a)
Samsung Electronics Co. Ltd.		23.2%
SK Hynix Inc.		5.8
POSCO		3.1
Celltrion Inc.		2.7
NAVER Corp.		2.6
KB Financial Group Inc.		2.5
Hyundai Motor Co.		2.3
Shinhan Financial Group Co. Ltd.		2.3
LG Chem Ltd.		2.1
Hyundai Mobis Co. Ltd.		1.9

^(a)  Excludes money market funds.

F U N D     S U M M A R Y 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 ask 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. 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 your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments	iShares® MSCI Australia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Banks — 28.5%
Australia & New Zealand Banking Group Ltd.		3,930,160	$	83,847,628
Bank of Queensland Ltd.		536,376		4,457,054
Bendigo & Adelaide Bank Ltd.		656,559		5,503,205
Commonwealth Bank of Australia		2,389,677		123,118,027
National Australia Bank Ltd.		3,696,989		75,851,823
Westpac Banking Corp.		4,648,556		95,946,816
				388,724,553
Beverages — 1.4%
Coca-Cola Amatil Ltd.		686,943		4,664,927
Treasury Wine Estates Ltd.		978,018		13,771,185
				18,436,112
Biotechnology — 7.4%
CSL Ltd.		614,310		100,986,811
Capital Markets — 4.0%
ASX Ltd.		263,502		12,889,796
Macquarie Group Ltd.		439,093		41,091,247
				53,981,043
Chemicals — 1.0%
Incitec Pivot Ltd.		2,255,580		6,394,445
Orica Ltd.		513,204		6,528,515
				12,922,960
Commercial Services & Supplies — 1.3%
Brambles Ltd.		2,164,561		17,172,558
Construction & Engineering — 0.3%
CIMIC Group Ltd.		131,974		4,703,462
Construction Materials — 1.3%
Boral Ltd.		1,594,150		8,070,227
James Hardie Industries PLC		598,960		9,170,166
				17,240,393
Containers & Packaging — 1.2%
Amcor Ltd./Australia		1,575,001		16,288,287
Diversified Financial Services — 1.1%
AMP Ltd.		3,961,130		9,568,065
Challenger Ltd./Australia		745,929		5,842,308
				15,410,373
Diversified Telecommunication Services — 1.2%
Telstra Corp. Ltd.		5,653,326		12,674,308
TPG Telecom Ltd.(a)		501,371		3,132,791
				15,807,099
Electric Utilities — 0.2%
AusNet Services		2,451,552		2,916,524
Equity Real Estate Investment Trusts (REITs) — 6.3%
BGP Holdings PLC(b)		18,888,372		220
Dexus		1,380,596		10,703,355
Goodman Group		2,204,316		17,057,531
GPT Group (The)		2,452,801		9,170,888
Mirvac Group		5,024,421		8,829,799
Scentre Group		7,238,683		21,515,919
Stockland		3,309,810		9,885,796
Vicinity Centres		4,464,262		8,943,098
				86,106,606
Food & Staples Retailing — 6.9%
Wesfarmers Ltd.		1,541,528		57,358,175

Security	Shares		Value
Food & Staples Retailing (continued)
Woolworths Group Ltd.		1,783,402	$	36,500,114
				93,858,289
Gas Utilities — 0.9%
APA Group		1,602,155		11,586,788
Health Care Equipment & Supplies — 0.9%
Cochlear Ltd.		78,100		12,189,366
Health Care Providers & Services — 1.6%
Healthscope Ltd.		2,349,986		3,721,928
Ramsay Health Care Ltd.		192,388		7,749,822
Sonic Healthcare Ltd.		547,048		10,361,424
				21,833,174
Hotels, Restaurants & Leisure — 2.8%
Aristocrat Leisure Ltd.		781,393		17,851,622
Crown Resorts Ltd.		513,973		5,278,216
Domino’s Pizza Enterprises Ltd.(a)		81,144		3,174,770
Flight Centre Travel Group Ltd.		75,467		3,188,432
Tabcorp Holdings Ltd.		2,594,728		9,007,237
				38,500,277
Insurance — 4.5%
Insurance Australia Group Ltd.		3,218,787		17,970,827
Medibank Pvt Ltd.		3,741,536		8,225,874
QBE Insurance Group Ltd.		1,841,526		14,663,030
Suncorp Group Ltd.		1,762,023		19,738,835
				60,598,566
Internet Software & Services — 0.3%
REA Group Ltd.		71,542		4,714,992
IT Services — 0.6%
Computershare Ltd.		627,976		8,728,808
Metals & Mining — 13.8%
Alumina Ltd.		3,320,689		6,916,386
BHP Billiton Ltd.		4,361,130		104,743,345
BlueScope Steel Ltd.		747,093		9,352,555
Fortescue Metals Group Ltd.		2,121,231		5,890,847
Newcrest Mining Ltd.		1,043,610		14,634,388
Rio Tinto Ltd.		559,957		29,456,864
South32 Ltd.		6,963,841		17,526,154
				188,520,539
Multi-Utilities — 1.0%
AGL Energy Ltd.		892,103		13,406,613
Multiline Retail — 0.1%
Harvey Norman Holdings Ltd.		758,720		1,975,343
Oil, Gas & Consumable Fuels — 5.8%
Caltex Australia Ltd.		354,621		7,747,716
Oil Search Ltd.		1,866,361		12,093,784
Origin Energy Ltd.(c)		2,391,060		13,747,260
Santos Ltd.		2,402,527		11,780,304
Woodside Petroleum Ltd.		1,271,193		33,895,587
				79,264,651
Professional Services — 0.5%
Seek Ltd.		451,909		7,320,783
Real Estate Management & Development — 0.9%
LendLease Group		784,456		11,624,361

S C H E D U L E   O F   I N V E S T M E N T S 17

Schedule of Investments  (continued)	iShares® MSCI Australia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Road & Rail — 0.6%
Aurizon Holdings Ltd.		2,702,380	$	8,208,319
Transportation Infrastructure — 2.5%
Sydney Airport		1,497,751		7,809,683
Transurban Group		3,024,651		26,380,384
				34,190,067
Total Common Stocks — 98.9%
(Cost: $1,558,094,211)				1,347,217,717
Short-Term Investments
Money Market Funds — 0.4%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		5,082,269		5,083,794
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		358,813		358,813
				5,442,607
Total Short-Term Investments — 0.4% (Cost: $5,441,463)				5,442,607
Total Investments in Securities — 99.3% (Cost: $1,563,535,674)				1,352,660,324
Other Assets, Less Liabilities — 0.7%				10,109,840
Net Assets — 100.0%			$	1,362,770,164

^(a)  All or a portion of this security is on loan.

^(b)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(c)  Non-income producing security.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	6,985,447	(1,903,178	)	5,082,269	$	5,083,794	$	63,122	(b)	$	(1,454	)	$	824
BlackRock Cash Funds: Treasury, SL Agency Shares	183,299	175,514		358,813		358,813		18,406			—			—
					$	5,442,607	$	81,528		$	(1,454	)	$	824

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
ASX SPI 200 Index		134		09/20/18	$	15,273	$	180,435

18 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)	iShares® MSCI Australia ETF
August 31, 2018

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	180,435

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	305,608
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	261,088

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	17,055,820

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	1,320,837,113	$	26,380,384	$	220	$	1,347,217,717
Money Market Funds		5,442,607		—		—		5,442,607
	$	1,326,279,720	$	26,380,384	$	220	$	1,352,660,324
Derivative financial instruments(a)
Assets
Futures Contracts	$	180,435	$	—	$	—	$	180,435

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

The Fund had transfers from Level 1 to Level 2 during the year ended August 31, 2018 in the amount of $ 34,627,543 (the value of the securities as of the beginning of the period), resulting in a difference of valuation methodology, due to a temporary suspension of trading.

See notes to financial statements.

S C H E D U L E   O F   I N V E S T M E N T S 19

Schedule of Investments	iShares® MSCI Canada ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 0.9%
Bombardier Inc., Class B(a)		4,464,869	$	14,757,917
CAE Inc.		573,315		11,453,549
				26,211,466
Auto Components — 1.5%
Linamar Corp.		97,981		4,311,630
Magna International Inc.		731,656		39,647,849
				43,959,479
Banks — 28.9%
Bank of Montreal		1,376,295		112,904,848
Bank of Nova Scotia (The)		2,554,097		147,943,515
Canadian Imperial Bank of Commerce		935,325		87,725,946
National Bank of Canada		727,037		36,414,576
Royal Bank of Canada		3,074,667		244,426,536
Toronto-Dominion Bank (The)		3,921,576		236,536,640
				865,952,061
Capital Markets — 3.9%
Brookfield Asset Management Inc., Class A		1,789,925		76,541,445
CI Financial Corp.		584,774		9,417,734
IGM Financial Inc.		178,148		4,974,400
Thomson Reuters Corp.		605,192		26,937,646
				117,871,225
Chemicals — 2.9%
Methanex Corp.		143,577		10,484,606
Nutrien Ltd.		1,372,240		77,180,936
				87,665,542
Construction & Engineering — 0.9%
SNC-Lavalin Group Inc.		374,246		15,076,608
WSP Global Inc.		219,638		11,834,630
				26,911,238
Containers & Packaging — 0.5%
CCL Industries Inc., Class B, NVS		314,623		15,169,560
Diversified Financial Services — 0.4%
Onex Corp.		184,089		13,217,081
Diversified Telecommunication Services — 1.0%
BCE Inc.		324,969		13,265,923
TELUS Corp.		416,978		15,474,186
				28,740,109
Electric Utilities — 1.5%
Emera Inc.		124,450		3,940,750
Fortis Inc./Canada		896,418		29,368,440
Hydro One Ltd.(b)		699,148		10,337,492
				43,646,682
Equity Real Estate Investment Trusts (REITs) — 0.5%
H&R REIT		296,622		4,620,110
RioCan REIT		343,252		6,649,446
SmartCentres Real Estate Investment Trust		138,875		3,296,278
				14,565,834
Food & Staples Retailing — 3.2%
Alimentation Couche-Tard Inc., Class B		920,703		44,116,357
Empire Co. Ltd., Class A, NVS		366,548		6,993,914
George Weston Ltd.		109,649		8,546,895
Loblaw Companies Ltd.		411,488		21,301,001
Metro Inc.		516,718		16,191,647
				97,149,814

Security	Shares		Value
Food Products — 0.5%
Saputo Inc.		494,507	$	15,154,339
Gas Utilities — 0.3%
AltaGas Ltd.		561,751		10,447,074
Hotels, Restaurants & Leisure — 0.9%
Restaurant Brands International Inc.		494,822		28,404,024
Insurance — 8.0%
Fairfax Financial Holdings Ltd.		59,435		32,656,774
Great-West Lifeco Inc.		633,013		15,456,984
Industrial Alliance Insurance & Financial Services Inc.		227,261		9,428,905
Intact Financial Corp.		296,732		23,552,868
Manulife Financial Corp.		4,224,047		77,357,446
Power Corp. of Canada		753,461		16,901,518
Power Financial Corp.		530,329		12,376,173
Sun Life Financial Inc.		1,299,530		51,694,176
				239,424,844
Internet Software & Services — 0.9%
Shopify Inc., Class A(a)(c)		187,133		27,247,265
IT Services — 1.2%
CGI Group Inc., Class A(a)		542,685		35,662,930
Media — 0.7%
Shaw Communications Inc., Class B, NVS		966,681		19,512,285
Metals & Mining — 5.6%
Agnico Eagle Mines Ltd.		496,654		17,132,173
Barrick Gold Corp.		2,494,992		25,544,034
First Quantum Minerals Ltd.		1,469,524		18,448,643
Franco-Nevada Corp.		395,712		25,315,614
Goldcorp Inc.		1,843,923		19,938,889
Kinross Gold Corp.(a)		2,653,056		7,935,058
Lundin Mining Corp.		1,384,603		6,604,725
Teck Resources Ltd., Class B		1,094,621		24,688,679
Turquoise Hill Resources Ltd.(a)		2,165,188		5,031,266
Wheaton Precious Metals Corp.		942,742		16,166,042
				166,805,123
Multi-Utilities — 0.4%
Atco Ltd./Canada, Class I, NVS		161,720		4,838,143
Canadian Utilities Ltd., Class A, NVS		271,227		6,604,132
				11,442,275
Multiline Retail — 1.4%
Canadian Tire Corp. Ltd., Class A, NVS		133,983		16,776,260
Dollarama Inc.		663,942		25,127,910
				41,904,170
Oil, Gas & Consumable Fuels — 21.2%
ARC Resources Ltd.		756,891		8,039,373
Cameco Corp.		842,769		8,764,100
Canadian Natural Resources Ltd.		2,598,520		88,799,456
Cenovus Energy Inc.		2,225,107		20,647,873
Crescent Point Energy Corp.		1,156,961		7,107,065
Enbridge Inc.		3,608,436		123,173,041
Encana Corp.		2,073,784		27,481,872
Husky Energy Inc.		750,661		12,423,225
Imperial Oil Ltd.		618,675		19,296,378
Inter Pipeline Ltd.		812,075		14,934,283
Keyera Corp.		436,860		12,047,613
Pembina Pipeline Corp.		1,071,058		36,560,291
PrairieSky Royalty Ltd.		453,584		8,348,492

20 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)	iShares® MSCI Canada ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Oil, Gas & Consumable Fuels (continued)
Seven Generations Energy Ltd., Class A(a)		562,074	$	6,621,003
Suncor Energy Inc.		3,451,840		142,208,555
Tourmaline Oil Corp.		552,134		9,002,162
TransCanada Corp.		1,876,496		79,984,392
Vermilion Energy Inc.		307,104		9,759,876
				635,199,050
Paper & Forest Products — 0.3%
West Fraser Timber Co. Ltd.		129,558		8,601,431
Pharmaceuticals — 0.7%
Aurora Cannabis Inc.(a)		625,683		4,222,563
Australis Capital Inc., NVS(a)		18,402		—
Bausch Health Companies Inc.(a)		668,379		15,449,168
				19,671,731
Real Estate Management & Development — 0.2%
First Capital Realty Inc.		355,778		5,576,979
Road & Rail — 6.8%
Canadian National Railway Co.		1,576,935		140,357,434
Canadian Pacific Railway Ltd.		307,744		64,782,124
				205,139,558
Software — 2.2%
BlackBerry Ltd.(a)		1,089,824		11,609,076
Constellation Software Inc./Canada		42,978		32,798,020
Open Text Corp.		566,705		22,243,155
				66,650,251
Textiles, Apparel & Luxury Goods — 0.5%
Gildan Activewear Inc.		467,551		13,790,415
Trading Companies & Distributors — 0.3%
Finning International Inc.		357,850		8,323,625
Wireless Telecommunication Services — 1.3%
Rogers Communications Inc., Class B, NVS		772,811		40,076,291
Total Common Stocks — 99.5% (Cost: $3,395,784,024)				2,980,093,751

Security	Shares		Value
Warrants
Pharmaceuticals — 0.0%
Australis Capital Inc., (Expires 08/22/19)(a)		18,402	$	—
Total Warrants — 0.0% (Cost: $0)				—
Short-Term Investments
Money Market Funds — 0.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		13,326,671		13,330,669
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		840,722		840,722
				14,171,391
Total Short-Term Investments — 0.5% (Cost: $14,169,987)				14,171,391
Total Investments in Securities — 100.0% (Cost: $3,409,954,011)				2,994,265,142
Other Assets, Less Liabilities — 0.0%				361,820
Net Assets — 100.0%			$	2,994,626,962

^(a)  Non-income producing security.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  All or a portion of this security is on loan.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	43,796,579	(30,469,908	)	13,326,671	$	13,330,669	$	56,748	(b)	$	(997	)	$	(1,282	)
BlackRock Cash Funds: Treasury, SL Agency Shares	412,255	428,467		840,722		840,722		23,946			—			—
					$	14,171,391	$	80,694		$	(997	)	$	(1,282	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

S C H E D U L E   O F   I N V E S T M E N T S 21

Schedule of Investments  (continued)	iShares® MSCI Canada ETF
August 31, 2018

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
S&P/TSX 60 Index		93		09/20/18	$	13,767	$	11,898

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	11,898

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	974,424
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(35,374	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	12,496,521

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	2,980,093,751	$	0	(a)	$	—	$	2,980,093,751
Warrants		—		0	(a)		—		0	(a)
Money Market Funds		14,171,391		—			—		14,171,391
	$	2,994,265,142	$	0	(a)	$	—	$	2,994,265,142
Derivative financial instruments(b)
Assets
Futures Contracts	$	11,898	$	—		$	—	$	11,898

^(a)  Rounds to less than $1.

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

See notes to financial statements.

22 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments	iShares® MSCI Japan ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Air Freight & Logistics — 0.3%
SG Holdings Co. Ltd.		400,800	$	9,502,667
Yamato Holdings Co. Ltd.		1,548,800		46,149,030
				55,651,697
Airlines — 0.2%
ANA Holdings Inc.		580,800		20,160,519
Japan Airlines Co. Ltd.		580,800		20,977,626
				41,138,145
Auto Components — 2.8%
Aisin Seiki Co. Ltd.		789,700		36,606,015
Bridgestone Corp.		2,904,000		107,192,785
Denso Corp.		2,129,600		102,845,362
Koito Manufacturing Co. Ltd.		580,800		35,984,092
NGK Spark Plug Co. Ltd.		774,400		22,068,846
NOK Corp.		387,200		7,409,825
Stanley Electric Co. Ltd.		580,800		20,139,568
Sumitomo Electric Industries Ltd.		3,678,400		58,318,323
Sumitomo Rubber Industries Ltd.		774,400		11,509,322
Toyoda Gosei Co. Ltd.		387,200		9,679,563
Toyota Industries Corp.		774,400		43,928,178
Yokohama Rubber Co. Ltd. (The)		580,800		12,230,401
				467,912,280
Automobiles — 8.0%
Honda Motor Co. Ltd.		7,937,600		235,654,770
Isuzu Motors Ltd.		2,710,800		39,286,248
Mazda Motor Corp.		2,710,400		31,495,246
Mitsubishi Motors Corp.		3,291,200		23,507,511
Nissan Motor Co. Ltd.		11,422,400		107,131,677
Subaru Corp.		2,926,100		87,108,771
Suzuki Motor Corp.		1,654,900		107,903,928
Toyota Motor Corp.		11,120,000		694,968,661
Yamaha Motor Co. Ltd.		1,355,200		34,428,448
				1,361,485,260
Banks — 6.6%
Aozora Bank Ltd.		580,800		20,558,597
Bank of Kyoto Ltd. (The)		266,300		13,472,904
Chiba Bank Ltd. (The)		2,904,000		19,118,186
Concordia Financial Group Ltd.		5,420,800		26,056,603
Fukuoka Financial Group Inc.		3,872,000		21,754,575
Japan Post Bank Co. Ltd.		1,936,000		22,662,470
Mebuki Financial Group Inc.		4,065,680		14,446,300
Mitsubishi UFJ Financial Group Inc.		57,886,480		350,184,883
Mizuho Financial Group Inc.		118,289,680		208,128,390
Resona Holdings Inc.		10,260,800		58,288,118
Seven Bank Ltd.		2,710,400		8,457,396
Shinsei Bank Ltd.		774,400		11,914,383
Shizuoka Bank Ltd. (The)		2,323,200		20,574,310
Sumitomo Mitsui Financial Group Inc.		6,589,200		260,335,349
Sumitomo Mitsui Trust Holdings Inc.		1,572,632		63,268,353
Yamaguchi Financial Group Inc.		846,400		9,327,689
				1,128,548,506
Beverages — 1.3%
Asahi Group Holdings Ltd.		1,742,400		78,866,444
Coca-Cola Bottlers Japan Holdings Inc.		580,800		16,499,256
Kirin Holdings Co. Ltd.		4,065,600		100,737,124
Suntory Beverage & Food Ltd.		651,300		26,754,489
				222,857,313

Security	Shares		Value
Building Products — 1.4%
AGC Inc./Japan		973,700	$	39,076,205
Daikin Industries Ltd.		1,172,900		149,884,953
LIXIL Group Corp.		1,355,200		26,631,022
TOTO Ltd.		686,900		29,115,119
				244,707,299
Capital Markets — 1.2%
Daiwa Securities Group Inc.		7,744,000		46,540,124
Japan Exchange Group Inc.		2,516,800		44,441,488
Nomura Holdings Inc.		16,843,200		77,240,088
SBI Holdings Inc./Japan		1,168,410		32,296,313
				200,518,013
Chemicals — 4.5%
Air Water Inc.		774,400		13,911,754
Asahi Kasei Corp.		6,195,200		91,068,909
Daicel Corp.		1,355,200		15,362,640
Hitachi Chemical Co. Ltd.		387,200		8,143,125
JSR Corp.		968,000		18,830,103
Kaneka Corp.		1,233,000		11,286,423
Kansai Paint Co. Ltd.		968,000		19,179,294
Kuraray Co. Ltd.		1,548,800		22,515,810
Mitsubishi Chemical Holdings Corp.		6,195,200		55,647,014
Mitsubishi Gas Chemical Co. Inc.		802,900		16,740,811
Mitsui Chemicals Inc.		968,000		25,089,345
Nippon Paint Holdings Co. Ltd.(a)		774,400		30,658,935
Nissan Chemical Corp.		580,800		27,760,653
Nitto Denko Corp.		784,000		61,003,310
Shin-Etsu Chemical Co. Ltd.		1,791,600		168,439,645
Showa Denko KK		580,800		27,708,274
Sumitomo Chemical Co. Ltd.		7,744,000		44,067,854
Taiyo Nippon Sanso Corp.		580,800		8,569,137
Teijin Ltd.		968,000		19,214,213
Toray Industries Inc.		6,582,400		49,490,435
Tosoh Corp.		1,355,200		21,339,038
				756,026,722
Commercial Services & Supplies — 0.9%
Dai Nippon Printing Co. Ltd.		1,184,600		26,633,069
Park24 Co. Ltd.		580,800		17,075,420
Secom Co. Ltd.		975,800		80,476,990
Sohgo Security Services Co. Ltd.		387,200		17,075,420
Toppan Printing Co. Ltd.		2,436,000		19,046,868
				160,307,767
Construction & Engineering — 0.9%
JGC Corp.		968,000		19,537,214
Kajima Corp.		4,178,000		30,142,941
Obayashi Corp.		3,097,600		29,080,593
Shimizu Corp.		2,710,400		23,758,929
Taisei Corp.		968,000		43,386,933
				145,906,610
Construction Materials — 0.1%
Taiheiyo Cement Corp.		580,800		17,599,206
Consumer Finance — 0.2%
Acom Co. Ltd.(a)		1,742,400		7,133,964
AEON Financial Service Co. Ltd.		580,870		11,917,566
Credit Saison Co. Ltd.		774,400		12,850,214
				31,901,744
Containers & Packaging — 0.1%
Toyo Seikan Group Holdings Ltd.		774,400		14,693,941

S C H E D U L E   O F   I N V E S T M E N T S 23

Schedule of Investments (continued)	iShares® MSCI Japan ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Diversified Consumer Services — 0.1%
Benesse Holdings Inc.		387,200	$	12,134,373
Diversified Financial Services — 0.7%
Mitsubishi UFJ Lease & Finance Co. Ltd.		1,936,000		10,912,206
ORIX Corp.		6,388,800		102,960,595
Tokyo Century Corp.		200,400		11,096,686
				124,969,487
Diversified Telecommunication Services — 0.9%
Nippon Telegraph & Telephone Corp.		3,314,800		147,975,470
Electric Utilities — 1.1%
Chubu Electric Power Co. Inc.		2,904,000		42,308,806
Chugoku Electric Power Co. Inc. (The)		1,355,200		16,963,679
Kansai Electric Power Co. Inc. (The)		3,484,800		50,047,743
Kyushu Electric Power Co. Inc.		1,742,400		19,579,117
Tohoku Electric Power Co. Inc.		2,129,600		26,772,444
Tokyo Electric Power Co. Holdings Inc.(b)		6,969,600		32,307,115
				187,978,904
Electrical Equipment — 1.8%
Fuji Electric Co. Ltd.		2,403,000		19,395,635
Mabuchi Motor Co. Ltd.		216,800		9,003,598
Mitsubishi Electric Corp.		8,905,600		120,470,758
Nidec Corp.		1,102,900		160,185,819
				309,055,810
Electronic Equipment, Instruments & Components — 5.8%
Alps Electric Co. Ltd		968,700		29,178,500
Hamamatsu Photonics KK		580,800		23,413,230
Hirose Electric Co. Ltd		193,658		23,088,414
Hitachi High-Technologies Corp.		387,200		15,242,170
Hitachi Ltd		23,232,000		152,002,669
Keyence Corp.		478,552		271,417,552
Kyocera Corp.		1,548,800		97,913,045
Murata Manufacturing Co. Ltd		890,600		154,089,020
Nippon Electric Glass Co. Ltd		387,300		12,469,324
Omron Corp.		968,000		43,430,581
Shimadzu Corp.		1,162,300		34,538,292
TDK Corp.		599,600		67,538,477
Yaskawa Electric Corp.		1,161,600		39,074,429
Yokogawa Electric Corp.		1,161,600		23,874,162
				987,269,865
Equity Real Estate Investment Trusts (REITs) — 1.1%
Daiwa House REIT Investment Corp.		7,744		17,990,300
Japan Prime Realty Investment Corp.		3,872		14,037,462
Japan Real Estate Investment Corp.		5,808		30,955,747
Japan Retail Fund Investment Corp.		13,620		24,688,822
Nippon Building Fund Inc.		6,215		36,263,742
Nippon Prologis REIT Inc.		7,744		15,119,953
Nomura Real Estate Master Fund Inc.		19,428		27,122,283
United Urban Investment Corp.		15,488		24,485,245
				190,663,554
Food & Staples Retailing — 1.7%
Aeon Co. Ltd.		2,904,000		63,024,539
FamilyMart UNY Holdings Co. Ltd.		387,200		33,836,569
Lawson Inc.		237,600		13,970,799
Seven & i Holdings Co. Ltd.		3,678,480		150,111,575
Sundrug Co. Ltd.		387,200		13,932,705
Tsuruha Holdings Inc.		193,600		22,156,144
				297,032,331

Security	Shares		Value
Food Products — 1.5%
Ajinomoto Co. Inc.		2,323,200	$	39,514,409
Calbee Inc.(a)		389,000		12,401,272
Kikkoman Corp.		774,400		38,899,833
MEIJI Holdings Co. Ltd.		580,856		38,659,127
NH Foods Ltd		451,100		16,496,465
Nisshin Seifun Group Inc.		968,075		19,407,771
Nissin Foods Holdings Co. Ltd.		275,900		17,641,079
Toyo Suisan Kaisha Ltd.		387,200		14,299,355
Yakult Honsha Co. Ltd.		580,800		41,379,086
Yamazaki Baking Co. Ltd.		580,800		11,324,251
				250,022,648
Gas Utilities — 0.5%
Osaka Gas Co. Ltd.		1,763,500		33,008,470
Toho Gas Co. Ltd.		387,200		13,007,350
Tokyo Gas Co. Ltd.		1,936,000		45,970,943
				91,986,763
Health Care Equipment & Supplies — 1.9%
CYBERDYNE Inc.(a)(b)		580,800		4,583,127
Hoya Corp.		1,936,000		113,434,567
Olympus Corp.		1,361,500		55,560,152
Sysmex Corp.		774,400		67,323,948
Terumo Corp.		1,548,800		85,621,536
				326,523,330
Health Care Providers & Services — 0.3%
Alfresa Holdings Corp.		968,000		24,329,855
Medipal Holdings Corp.		774,400		15,650,723
Suzuken Co. Ltd./Aichi Japan		387,240		17,635,947
				57,616,525
Health Care Technology — 0.2%
M3 Inc.		968,000		42,732,200
Hotels, Restaurants & Leisure — 0.7%
McDonald’s Holdings Co. Japan Ltd.		387,200		17,040,502
Oriental Land Co. Ltd./Japan		968,000		103,927,853
				120,968,355
Household Durables — 3.9%
Casio Computer Co. Ltd.		968,400		15,589,070
Iida Group Holdings Co. Ltd.		774,480		14,332,263
Nikon Corp.		1,548,800		29,709,136
Panasonic Corp.		10,848,415		129,777,901
Rinnai Corp.		193,600		14,439,031
Sekisui Chemical Co. Ltd.		1,936,000		33,731,812
Sekisui House Ltd.		2,904,000		47,494,287
Sharp Corp./Japan(a)		774,400		18,388,377
Sony Corp.		6,195,200		354,665,912
				658,127,789
Household Products — 0.5%
Lion Corp.		1,161,600		24,523,656
Unicharm Corp.		1,936,000		63,413,014
				87,936,670
Independent Power and Renewable Electricity Producers — 0.1%
Electric Power Development Co. Ltd.		774,400		20,539,391
Industrial Conglomerates — 0.8%
Keihan Holdings Co. Ltd.		387,200		14,246,977
Seibu Holdings Inc.		1,161,600		20,982,863
Toshiba Corp.(b)		31,305,000		93,730,081
				128,959,921

24 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments (continued)	iShares® MSCI Japan ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Insurance — 3.2%
Dai-ichi Life Holdings Inc.		5,228,300	$	99,817,929
Japan Post Holdings Co. Ltd.		7,750,800		92,267,268
MS&AD Insurance Group Holdings Inc.		2,323,240		71,550,386
Sompo Holdings Inc.		1,548,850		66,264,548
Sony Financial Holdings Inc.		774,400		15,469,144
T&D Holdings Inc.		2,710,400		41,297,027
Tokio Marine Holdings Inc.		3,291,200		155,440,451
				542,106,753
Internet & Direct Marketing Retail — 0.4%
Rakuten Inc.		4,065,600		31,161,595
Start Today Co. Ltd.		968,700		33,459,178
				64,620,773
Internet Software & Services — 0.3%
DeNA Co. Ltd.		580,800		10,067,165
Kakaku.com Inc.		580,800		10,758,562
Yahoo Japan Corp.(a)		6,776,000		23,343,392
				44,169,119
IT Services — 1.1%
Fujitsu Ltd.		9,680,000		70,981,720
Nomura Research Institute Ltd.		580,804		28,965,560
NTT Data Corp.		3,097,600		39,891,535
Obic Co. Ltd.		387,200		36,455,499
Otsuka Corp.		435,200		15,797,267
				192,091,581
Leisure Products — 0.9%
Bandai Namco Holdings Inc.		968,098		37,629,097
Sankyo Co. Ltd.		193,600		7,429,030
Sega Sammy Holdings Inc.		774,400		12,514,991
Shimano Inc.		387,200		59,851,269
Yamaha Corp.		774,400		37,084,042
				154,508,429
Machinery — 5.5%
Amada Holdings Co. Ltd.		1,548,800		16,593,537
Daifuku Co. Ltd.		487,200		25,351,887
FANUC Corp.		968,000		190,090,634
Hino Motors Ltd.		1,161,600		12,256,590
Hitachi Construction Machinery Co. Ltd.		580,800		17,389,692
Hoshizaki Corp.		248,100		23,582,757
IHI Corp.		774,400		27,097,191
JTEKT Corp.		968,000		13,592,244
Kawasaki Heavy Industries Ltd.		774,400		21,230,789
Komatsu Ltd.		4,452,800		126,936,022
Kubota Corp.		4,840,000		75,796,185
Kurita Water Industries Ltd.		387,200		11,523,290
Makita Corp.		1,161,600		52,797,619
MINEBEA MITSUMI Inc.		1,936,000		36,420,580
MISUMI Group Inc.		1,355,200		35,002,866
Mitsubishi Heavy Industries Ltd.		1,548,800		57,630,417
Nabtesco Corp.		580,800		15,174,078
NGK Insulators Ltd.		1,161,600		18,961,050
NSK Ltd.		1,742,400		19,814,821
SMC Corp./Japan		281,100		93,721,126
Sumitomo Heavy Industries Ltd.		580,800		18,934,860
THK Co. Ltd.		581,400		15,603,972
				925,502,207
Marine — 0.2%
Mitsui OSK Lines Ltd.		580,800		15,650,723

Security	Shares		Value
Marine (continued)
Nippon Yusen KK		774,400	$	14,638,070
				30,288,793
Media — 0.7%
CyberAgent Inc.		494,000		28,156,018
Dentsu Inc.		1,024,900		47,970,699
Hakuhodo DY Holdings Inc.		1,162,300		19,653,808
Toho Co. Ltd./Tokyo		580,800		17,861,099
				113,641,624
Metals & Mining — 1.2%
Hitachi Metals Ltd.		968,000		11,209,018
JFE Holdings Inc.		2,323,250		50,944,514
Kobe Steel Ltd.		1,554,400		13,036,858
Maruichi Steel Tube Ltd.		240,500		7,385,151
Mitsubishi Materials Corp.		580,800		15,739,766
Nippon Steel & Sumitomo Metal Corp.		3,678,870		74,167,957
Sumitomo Metal Mining Co. Ltd.		1,161,600		37,607,828
				210,091,092
Multiline Retail — 0.8%
Don Quijote Holdings Co. Ltd.		580,800		28,284,439
Isetan Mitsukoshi Holdings Ltd.		1,548,860		17,544,015
J Front Retailing Co. Ltd.		1,161,600		16,551,635
Marui Group Co. Ltd.		968,000		21,431,573
Ryohin Keikaku Co. Ltd.		123,100		36,635,253
Takashimaya Co. Ltd.		761,000		12,312,161
				132,759,076
Oil, Gas & Consumable Fuels — 1.3%
Idemitsu Kosan Co. Ltd.		580,800		29,384,389
Inpex Corp.		5,047,200		55,303,675
JXTG Holdings Inc.		15,916,095		112,303,312
Showa Shell Sekiyu KK		968,000		19,563,404
				216,554,780
Paper & Forest Products — 0.2%
Oji Holdings Corp.		3,872,000		26,573,405
Personal Products — 2.2%
Kao Corp.		2,363,500		183,840,803
Kobayashi Pharmaceutical Co. Ltd.		200,400		14,422,077
Kose Corp.		145,400		26,881,003
Pola Orbis Holdings Inc.		406,600		14,374,099
Shiseido Co. Ltd.		1,807,000		127,501,177
				367,019,159
Pharmaceuticals — 5.5%
Astellas Pharma Inc.		9,276,850		157,451,699
Chugai Pharmaceutical Co. Ltd.		1,161,600		67,463,624
Daiichi Sankyo Co. Ltd.		2,710,869		106,053,566
Eisai Co. Ltd.		1,235,300		112,072,129
Hisamitsu Pharmaceutical Co. Inc.		254,200		18,614,817
Kyowa Hakko Kirin Co. Ltd.		1,161,600		20,637,165
Mitsubishi Tanabe Pharma Corp.		1,161,600		19,411,506
Ono Pharmaceutical Co. Ltd.		1,751,300		46,118,014
Otsuka Holdings Co. Ltd.		1,936,000		90,981,612
Santen Pharmaceutical Co. Ltd.		1,742,400		26,901,644
Shionogi & Co. Ltd.		1,397,000		81,336,808
Sumitomo Dainippon Pharma Co. Ltd.		774,400		16,516,716
Taisho Pharmaceutical Holdings Co. Ltd.		193,600		21,021,274
Takeda Pharmaceutical Co. Ltd.		3,484,800		146,230,549
				930,811,123

S C H E D U L E   O F   I N V E S T M E N T S 25

Schedule of Investments (continued)	iShares® MSCI Japan ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Professional Services — 1.1%
Persol Holdings Co. Ltd.		774,400	$	17,354,773
Recruit Holdings Co. Ltd.		5,427,600		165,786,907
				183,141,680
Real Estate Management & Development — 2.7%
Aeon Mall Co. Ltd.		580,800		9,737,180
Daito Trust Construction Co. Ltd.		387,200		58,140,235
Daiwa House Industry Co. Ltd.		2,710,400		82,838,487
Hulic Co. Ltd.		1,355,200		12,857,198
Mitsubishi Estate Co. Ltd.		5,808,000		96,612,310
Mitsui Fudosan Co. Ltd.		4,259,200		97,736,704
Nomura Real Estate Holdings Inc.		580,800		12,618,003
Sumitomo Realty & Development Co. Ltd.		1,936,000		67,219,191
Tokyo Tatemono Co. Ltd.		968,000		11,889,940
Tokyu Fudosan Holdings Corp.		2,323,200		15,860,237
				465,509,485
Road & Rail — 3.8%
Central Japan Railway Co.		696,100		140,086,319
East Japan Railway Co.		1,548,800		140,444,461
Hankyu Hanshin Holdings Inc.		1,161,600		41,536,222
Keikyu Corp.		1,161,600		20,134,330
Keio Corp.		580,800		28,860,603
Keisei Electric Railway Co. Ltd.		603,100		20,287,352
Kintetsu Group Holdings Co. Ltd.		841,900		33,103,522
Kyushu Railway Co.		774,400		23,325,932
Nagoya Railroad Co. Ltd.		894,400		20,447,346
Nippon Express Co. Ltd.		387,200		24,303,666
Odakyu Electric Railway Co. Ltd.		1,355,200		29,368,676
Tobu Railway Co. Ltd.		968,000		27,062,272
Tokyu Corp.		2,348,000		38,792,767
West Japan Railway Co.		774,400		52,071,303
				639,824,771
Semiconductors & Semiconductor Equipment — 1.5%
Disco Corp.		144,500		25,906,660
Renesas Electronics Corp.(b)		4,065,600		30,798,611
Rohm Co. Ltd.		433,300		39,193,750
Sumco Corp.		1,161,600		20,783,825
Tokyo Electron Ltd.		774,452		131,828,304
				248,511,150
Software — 1.9%
Konami Holdings Corp.		440,100		18,475,587
LINE Corp.(a)(b)		394,900		18,234,098
Nexon Co. Ltd.(b)		2,129,600		26,772,444
Nintendo Co. Ltd.		559,500		202,638,049
Oracle Corp. Japan		193,600		16,289,742
Trend Micro Inc./Japan		580,800		36,665,013
				319,074,933
Specialty Retail — 1.6%
ABC-Mart Inc.		193,600		10,580,475
Fast Retailing Co. Ltd.		288,100		134,612,085
Hikari Tsushin Inc.		93,100		17,640,177
Nitori Holdings Co. Ltd.		387,200		58,908,455
Shimamura Co. Ltd.		108,100		10,012,057
USS Co. Ltd.		1,161,600		21,946,629
Yamada Denki Co. Ltd.(a)		3,097,600		15,392,322
				269,092,200
Technology Hardware, Storage & Peripherals — 2.2%
Brother Industries Ltd.		1,161,600		23,905,589

Security	Shares		Value
Technology Hardware, Storage & Peripherals (continued)
Canon Inc.		4,889,350	$	157,106,498
FUJIFILM Holdings Corp.		1,936,000		82,042,332
Konica Minolta Inc.		2,129,600		21,721,401
NEC Corp.		1,394,400		38,605,835
Ricoh Co. Ltd.		3,291,200		34,578,600
Seiko Epson Corp.		1,355,200		23,233,397
				381,193,652
Textiles, Apparel & Luxury Goods — 0.1%
Asics Corp.		774,400		11,607,096
Tobacco — 0.8%
Japan Tobacco Inc.		5,420,800		142,846,892
Trading Companies & Distributors — 3.7%
ITOCHU Corp.		6,969,600		122,157,349
Marubeni Corp.		7,744,000		63,664,431
Mitsubishi Corp.		6,582,400		188,238,178
Mitsui & Co. Ltd.		8,131,200		135,843,874
Sumitomo Corp.		5,420,800		88,167,135
Toyota Tsusho Corp.		968,000		33,085,810
				631,156,777
Transportation Infrastructure — 0.1%
Japan Airport Terminal Co. Ltd.		193,600		8,686,116
Kamigumi Co. Ltd.		580,800		11,816,610
				20,502,726
Wireless Telecommunication Services — 4.6%
KDDI Corp.		8,525,200		226,113,660
NTT DOCOMO Inc.		6,582,400		171,260,531
SoftBank Group Corp.		4,065,600		377,649,637
				775,023,828
Total Common Stocks — 99.7% (Cost: $16,832,085,121)				16,929,970,993
Short-Term Investments
Money Market Funds — 0.5%
BlackRock Cash Funds: Institutional, SL Agency
Shares, 2.15%(c)(d)(e)		71,651,613		71,673,108
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		6,517,877		6,517,877
				78,190,985
Total Short-Term Investments — 0.5% (Cost: $78,173,150)				78,190,985
Total Investments in Securities — 100.2% (Cost: $16,910,258,271)				17,008,161,978
Other Assets, Less Liabilities — (0.2)%				(35,123,714	)
Net Assets — 100.0%			$	16,973,038,264

^(a)  All or a portion of this security is on loan.

^(b)  Non-income producing security.

^(c)  Affiliate of the Fund.

^(d) Annualized 7-day yield as of period-end.

^(e)  All or a portion of this security was purchased with cash collateral received from loaned securities.

26 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments (continued)	iShares® MSCI Japan ETF
August 31, 2018

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		40,539,970		31,111,643		71,651,613	$	71,673,108	$	4,153,292	(b)	$	(5,447	)	$	11,023
BlackRock Cash Funds: Treasury, SL Agency Shares		5,281,032		1,236,845		6,517,877		6,517,877		135,701			—			—
							$	78,190,985	$	4,288,993		$	(5,447	)	$	11,023

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
TOPIX Index		255		09/13/18	$	39,865	$	(472,542	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	472,542

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	15,743,260
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(1,114,774	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	99,423,501

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

S C H E D U L E   O F   I N V E S T M E N T S 27

Schedule of Investments (continued)	iShares® MSCI Japan ETF
August 31, 2018

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	16,929,970,993		$	—	$	—	$	16,929,970,993
Money Market Funds		78,190,985			—		—		78,190,985
	$	17,008,161,978		$	—	$	—	$	17,008,161,978
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(472,542	)	$	—	$	—	$	(472,542	)

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

See notes to financial statements.

28 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments	iShares® MSCI Mexico ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Airlines — 0.6%
Controladora Vuela Cia. de Aviacion SAB de CV, Class A(a)(b)		5,031,400	$	3,673,457
Grupo Aeromexico SAB de CV(a)(b)		2,375,843		3,337,525
				7,010,982
Auto Components — 0.2%
Rassini SAB de CV		667,799		2,546,790
Banks — 15.0%
Banco del Bajio SA(c)		4,866,130		11,325,163
Banco Santander Mexico SA Institucion de Banca
Multiple Grupo Financiero Santand, Class B(b)		12,896,772		20,396,872
Grupo Financiero Banorte SAB de CV, Series O		15,702,461		107,467,067
Grupo Financiero Inbursa SAB de CV, Series O(b)		15,976,092		25,367,232
Regional SAB de CV		1,777,900		10,907,949
				175,464,283
Beverages — 12.5%
Arca Continental SAB de CV(b)		3,031,229		18,637,132
Coca-Cola Femsa SAB de CV, Series L, NVS		2,447,247		14,709,976
Fomento Economico Mexicano SAB de CV		11,788,610		112,648,568
				145,995,676
Capital Markets — 0.6%
Bolsa Mexicana de Valores SAB de CV		3,424,387		6,914,860
Chemicals — 2.1%
Mexichem SAB de CV		7,302,079		24,704,976
Construction Materials — 4.6%
Cemex SAB de CV, CPO(a)		73,848,892		52,256,767
Grupo Cementos de Chihuahua SAB de CV		186,800		1,219,932
				53,476,699
Consumer Finance — 1.2%
Credito Real SAB de CV SOFOM ER		2,192,874		2,816,714
Gentera SAB de CV(b)		7,431,158		7,528,126
Unifin Financiera SAB de CV SOFOM ENR(b)		1,290,148		3,288,712
				13,633,552
Diversified Telecommunication Services — 0.9%
Axtel SAB de CV, CPO(a)(b)		11,230,677		2,243,727
Telesites SAB de CV(a)(b)		10,830,329		8,434,068
				10,677,795
Equity Real Estate Investment Trusts (REITs) — 5.0%
Concentradora Fibra Danhos SA de CV		2,418,900		3,997,659
Concentradora Fibra Hotelera Mexicana SA de CV(c)		8,051,390		5,090,939
Fibra Uno Administracion SA de CV		20,437,300		26,785,845
Macquarie Mexico Real Estate Management SA de CV		6,604,600		7,281,450
PLA Administradora Industrial S. de RL de CV		6,265,300		9,410,811
Prologis Property Mexico SA de CV		3,202,000		6,303,354
				58,870,058
Food & Staples Retailing — 8.5%
Grupo Comercial Chedraui SA de CV		2,897,000		6,869,589
La Comer SAB de CV(a)(b)		4,734,255		5,249,142
Wal-Mart de Mexico SAB de CV		31,356,033		86,735,210
				98,853,941
Food Products — 4.7%
Gruma SAB de CV, Series B		1,539,560		19,489,579
Grupo Bimbo SAB de CV, Series A(b)		11,395,404		23,690,139
Grupo Herdez SAB de CV		2,172,944		4,676,481

Security	Shares		Value
Food Products (continued)
Industrias Bachoco SAB de CV, Series B(b)		1,526,800	$	7,379,074
				55,235,273
Gas Utilities — 1.4%
Infraestructura Energetica Nova SAB de CV		3,493,471		16,231,791
Hotels, Restaurants & Leisure — 1.5%
Alsea SAB de CV(b)		3,719,364		13,239,189
Hoteles City Express SAB de CV(a)(b)		3,668,300		4,301,315
				17,540,504
Household Durables — 0.3%
Consorcio ARA SAB de CV		8,965,219		3,038,342
Household Products — 1.6%
Kimberly-Clark de Mexico SAB de CV, Series A		10,769,754		18,902,902
Industrial Conglomerates — 3.3%
Alfa SAB de CV, Class A		19,755,351		25,964,384
Grupo Carso SAB de CV, Series A1(b)		3,420,633		12,648,140
				38,612,524
Insurance — 0.4%
Qualitas Controladora SAB de CV(b)		1,852,300		4,639,348
Machinery — 0.2%
Grupo Rotoplas SAB de CV(a)		1,819,800		2,258,511
Media — 4.5%
Grupo Televisa SAB, CPO		14,012,848		50,524,084
TV Azteca SAB de CV, CPO(b)		15,029,939		1,807,947
				52,332,031
Metals & Mining — 6.4%
Grupo Mexico SAB de CV, Series B		18,090,386		53,001,931
Industrias CH SAB de CV, Series B(a)(b)		1,265,083		4,944,413
Industrias Penoles SAB de CV		982,469		16,686,122
				74,632,466
Mortgage Real Estate Investment — 0.2%
Concentradora Hipotecaria SAPI de CV(b)		3,057,575		2,825,624
Multiline Retail — 0.8%
El Puerto de Liverpool SAB de CV, Series C1, NVS(b)		1,395,265		9,815,491
Pharmaceuticals — 0.5%
Genomma Lab Internacional SAB de CV, Class B(a)(b)		6,561,993		5,676,387
Real Estate Management & Development — 0.8%
Corp Inmobiliaria Vesta SAB de CV		4,473,249		6,347,075
Grupo GICSA SA de CV(a)(b)		5,369,266		2,513,267
				8,860,342
Transportation Infrastructure — 7.1%
Grupo Aeroportuario del Centro Norte SAB de CV		1,984,192		13,077,476
Grupo Aeroportuario del Pacifico SAB de CV, Series B		2,491,449		25,700,866
Grupo Aeroportuario del Sureste SAB de CV, Series B		1,433,689		26,837,476
Promotora y Operadora de Infraestructura SAB de CV		1,645,915		17,426,272
				83,042,090
Wireless Telecommunication Services — 14.9%
America Movil SAB de CV, Series L, NVS		208,140,424		174,715,818
Total Common Stocks — 99.8% (Cost: $1,506,301,828)				1,166,509,056

S C H E D U L E   O F   I N V E S T M E N T S 29

Schedule of Investments  (continued)	iShares® MSCI Mexico ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Short-Term Investments
Money Market Funds — 1.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		16,322,257	$	16,327,153
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		734,154		734,154
				17,061,307
Total Short-Term Investments — 1.5% (Cost: $17,056,434)				17,061,307
Total Investments in Securities — 101.3% (Cost: $1,523,358,262)				1,183,570,363
Other Assets, Less Liabilities — (1.3)%				(14,640,110	)
Net Assets — 100.0%			$	1,168,930,253

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		27,657,667		(11,335,410	)		16,322,257	$	16,327,153	$	415,795	(b)	$	2,930	$	(1,598	)
BlackRock Cash Funds: Treasury, SL Agency Shares		431,254		302,900			734,154		734,154		13,135			—		—
								$	17,061,307	$	428,930		$	2,930	$	(1,598	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MEX BOLSA Index		95		09/21/18	$	2,465	$	(9,345	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	9,345

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

30 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)	iShares® MSCI Mexico ETF
August 31, 2018

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	69,292
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(9,345	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	2,311,770

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	1,166,509,056		$	—	$	—	$	1,166,509,056
Money Market Funds		17,061,307			—		—		17,061,307
	$	1,183,570,363		$	—	$	—	$	1,183,570,363
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(9,345	)	$	—	$	—	$	(9,345	)

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

See notes to financial statements.

S C H E D U L E   O F   I N V E S T M E N T S 31

Schedule of Investments	iShares® MSCI South Korea ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 0.4%
Korea Aerospace Industries Ltd.(a)(b)		454,118	$	17,032,230
Air Freight & Logistics — 0.3%
Hyundai Glovis Co. Ltd.		120,649		13,114,611
Airlines — 0.2%
Korean Air Lines Co. Ltd.		348,280		8,776,224
Auto Components — 2.7%
Hankook Tire Co. Ltd.		450,209		18,867,403
Hanon Systems(b)		1,248,811		13,462,455
Hyundai Mobis Co. Ltd.		363,674		73,182,389
				105,512,247
Automobiles — 3.4%
Hyundai Motor Co.		814,289		91,439,721
Kia Motors Corp.		1,450,966		41,776,454
				133,216,175
Banks — 8.4%
BNK Financial Group Inc.		1,659,473		12,433,189
DGB Financial Group Inc.		1,176,724		10,835,396
Hana Financial Group Inc.		1,589,618		60,977,127
Industrial Bank of Korea		1,492,526		19,978,114
KB Financial Group Inc.		2,094,741		97,289,772
Shinhan Financial Group Co. Ltd.		2,258,679		88,468,225
Woori Bank		2,617,785		38,332,565
				328,314,388
Biotechnology — 4.0%
Celltrion Inc.(a)(b)		427,359		103,658,024
Medy-Tox Inc.		25,977		15,630,773
SillaJen Inc.(a)(b)		305,235		20,949,516
ViroMed Co. Ltd.(a)(b)		82,153		17,498,519
				157,736,832
Building Products — 0.3%
KCC Corp.		39,317		11,461,498
Capital Markets — 1.5%
Korea Investment Holdings Co. Ltd.		248,973		15,947,334
Mirae Asset Daewoo Co. Ltd.		2,391,572		17,660,443
NH Investment & Securities Co. Ltd.		932,518		11,267,455
Samsung Securities Co. Ltd.		411,575		11,961,057
				56,836,289
Chemicals — 3.7%
Hanwha Chemical Corp.		673,780		12,257,149
Kumho Petrochemical Co. Ltd.(b)		121,909		11,170,748
LG Chem Ltd.		244,299		80,324,695
Lotte Chemical Corp.		96,549		27,408,241
OCI Co. Ltd.(b)		114,934		11,925,506
				143,086,339
Commercial Services & Supplies — 0.4%
KEPCO Plant Service & Engineering Co. Ltd.		196,946		6,440,133
S-1 Corp.		120,636		9,287,612
				15,727,745
Construction & Engineering — 2.2%
Daelim Industrial Co. Ltd.		182,184		13,404,186
Daewoo Engineering & Construction Co. Ltd.(a)		1,392,591		6,555,430
GS Engineering & Construction Corp.		325,018		13,985,862
HDC Hyundai Development Co-Engineering & Construction, Class E(a)		227,311		11,415,070

Security	Shares		Value
Construction & Engineering (continued)
Hyundai Engineering & Construction Co. Ltd.		450,965	$	24,307,506
Samsung Engineering Co. Ltd.(a)		982,696		14,875,288
				84,543,342
Consumer Finance — 0.2%
Samsung Card Co. Ltd.		232,217		7,353,591
Diversified Telecommunication Services — 0.3%
KT Corp.		205,716		5,340,873
LG Uplus Corp.		447,872		6,316,840
				11,657,713
Electric Utilities — 1.0%
Korea Electric Power Corp.		1,406,211		38,529,790
Electrical Equipment — 0.2%
Doosan Heavy Industries & Construction Co. Ltd.(a)(b)		507,839		6,455,484
Electronic Equipment, Instruments & Components — 3.7%
LG Display Co. Ltd.(b)		1,338,729		25,556,296
LG Innotek Co. Ltd.(b)		95,516		12,313,296
Samsung Electro-Mechanics Co. Ltd.(b)		307,955		44,540,947
Samsung SDI Co. Ltd.(b)		295,770		62,706,482
				145,117,021
Food & Staples Retailing — 1.2%
BGF retail Co. Ltd.		56,033		8,632,852
Dongsuh Cos. Inc.(b)		299,783		6,099,883
E-MART Inc.		119,498		23,026,835
GS Retail Co. Ltd.(b)		212,969		7,117,142
				44,876,712
Food Products — 0.9%
CJ CheilJedang Corp.(b)		51,432		15,824,875
Orion Corp./Republic of Korea		131,943		12,682,838
Ottogi Corp.(b)		9,848		6,414,050
				34,921,763
Gas Utilities — 0.2%
Korea Gas Corp.(a)		193,169		9,127,871
Health Care Providers & Services — 0.4%
Celltrion Healthcare Co. Ltd.(a)(b)		204,545		16,611,300
Hotels, Restaurants & Leisure — 0.5%
Kangwon Land Inc.		717,266		18,654,135
Household Durables — 1.8%
Coway Co. Ltd.		285,354		23,430,225
Hanssem Co. Ltd.(b)		83,691		6,202,675
LG Electronics Inc.		583,397		40,250,541
				69,883,441
Industrial Conglomerates — 3.8%
CJ Corp.		96,207		11,408,457
Hanwha Corp.		309,566		8,857,456
LG Corp.		530,218		34,057,034
Lotte Corp.(a)		205,165		8,883,756
Samsung C&T Corp.		415,538		45,915,801
SK Holdings Co. Ltd.		174,521		41,233,457
				150,355,961
Insurance — 3.1%
DB Insurance Co. Ltd.		306,119		17,600,158
Hanwha Life Insurance Co. Ltd.		2,129,118		9,276,578
Hyundai Marine & Fire Insurance Co. Ltd.		407,541		13,619,481
ING Life Insurance Korea Ltd.(b)(c)		241,976		7,564,807

32 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)	iShares® MSCI South Korea ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Insurance (continued)
Samsung Fire & Marine Insurance Co. Ltd.		169,700	$	40,399,317
Samsung Life Insurance Co. Ltd.		389,673		32,380,858
				120,841,199
Internet & Direct Marketing Retail — 0.1%
CJ ENM Co. Ltd.		17,079		3,866,422
Internet Software & Services — 3.4%
Kakao Corp.(b)		286,603		32,183,780
NAVER Corp.		147,917		99,926,860
				132,110,640
IT Services — 1.1%
Samsung SDS Co. Ltd.(b)		194,113		42,287,565
Leisure Products — 0.4%
HLB Inc.(a)(b)		183,543		17,148,158
Life Sciences Tools & Services — 1.0%
Samsung Biologics Co. Ltd.(a)(b)(c)		91,976		38,256,199
Machinery — 1.7%
Doosan Bobcat Inc.		278,241		8,898,513
Hyundai Heavy Industries Co. Ltd.(a)(b)		216,037		22,901,106
Hyundai Heavy Industries Holdings Co. Ltd.(a)		58,590		19,869,492
Samsung Heavy Industries Co. Ltd.(a)(b)		2,420,538		15,395,417
				67,064,528
Marine — 0.2%
Pan Ocean Co. Ltd.(a)(b)		1,882,564		8,726,614
Media — 0.2%
Cheil Worldwide Inc.		512,641		8,888,266
Metals & Mining — 4.1%
Hyundai Steel Co.		467,625		22,390,884
Korea Zinc Co. Ltd.		51,168		18,639,558
POSCO		409,552		120,126,423
				161,156,865
Multiline Retail — 0.9%
Hyundai Department Store Co. Ltd.		100,446		8,987,487
Lotte Shopping Co. Ltd.(b)		73,216		11,839,267
Shinsegae Inc.(b)		45,912		13,384,040
				34,210,794
Oil, Gas & Consumable Fuels — 2.6%
GS Holdings Corp.		317,691		15,154,644
SK Innovation Co. Ltd.		347,263		60,209,100
S-Oil Corp.		259,477		27,855,636
				103,219,380
Personal Products — 2.9%
Amorepacific Corp.(b)		174,878		41,317,804
AMOREPACIFIC Group		173,520		15,027,021
LG Household & Health Care Ltd.		50,146		56,986,651
				113,331,476
Pharmaceuticals — 1.2%
Celltrion Pharm Inc.(a)(b)		113,990		8,202,487
Hanmi Pharm Co. Ltd.		39,191		17,515,629
Hanmi Science Co. Ltd.(b)		110,485		8,625,205
Yuhan Corp.		58,235		12,503,405
				46,846,726
Road & Rail — 0.2%
CJ Logistics Corp.(a)(b)		60,201		8,328,576

Security	Shares		Value
Semiconductors & Semiconductor Equipment — 5.8%
SK Hynix Inc.		3,019,052	$	225,110,107
Software — 1.5%
NCSoft Corp.		98,412		34,258,321
Netmarble Corp.(b)(c)		151,031		15,806,595
Pearl Abyss Corp.(a)(b)		42,754		9,794,071
				59,858,987
Specialty Retail — 0.5%
Hotel Shilla Co. Ltd.(b)		186,174		18,062,967
Technology Hardware, Storage & Peripherals — 23.1%
Samsung Electronics Co. Ltd.		20,760,589		903,607,364
Tobacco — 1.5%
KT&G Corp.		628,286		57,006,590
Trading Companies & Distributors — 0.2%
Posco Daewoo Corp.		397,717		6,520,537
Wireless Telecommunication Services — 0.7%
SK Telecom Co. Ltd.		116,494		27,471,298
Total Common Stocks — 98.1% (Cost: $1,805,088,410)				3,832,823,960
Preferred Stocks
Automobiles — 0.7%
Hyundai Motor Co.
Preference Shares, NVS		159,777		11,238,862
Series 2, Preference Shares, NVS(b)		227,032		17,458,509
				28,697,371
Chemicals — 0.3%
LG Chem Ltd., Preference Shares, NVS		54,901		9,864,079
Personal Products — 0.5%
Amorepacific Corp., Preference Shares, NVS		67,033		8,701,674
LG Household & Health Care Ltd., Preference Shares, NVS		14,915		10,035,786
				18,737,460
Technology Hardware, Storage & Peripherals — 0.1%
Samsung Electronics Co. Ltd., Preference Shares, NVS		104,819		3,738,323
Total Preferred Stocks — 1.6% (Cost: $39,879,947)				61,037,233
Short-Term Investments
Money Market Funds — 7.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		289,663,819		289,750,718

S C H E D U L E   O F   I N V E S T M E N T S 33

Schedule of Investments  (continued)	iShares® MSCI South Korea ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Money Market Funds (continued)
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		3,563,166	$	3,563,166
				293,313,884
Total Short-Term Investments — 7.5% (Cost: $293,253,757)				293,313,884
Total Investments in Securities — 107.2% (Cost: $2,138,222,114)				4,187,175,077
Other Assets, Less Liabilities — (7.2)%				(280,284,163	)
Net Assets — 100.0%			$	3,906,890,914

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Net Activity			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		140,876,705		148,787,114			289,663,819	$	289,750,718	$	6,437,040	(b)	$	(23,526	)	$	40,286
BlackRock Cash Funds: Treasury, SL Agency Shares		4,974,415		(1,411,249	)		3,563,166		3,563,166		130,272			—			—
								$	293,313,884	$	6,567,312		$	(23,526	)	$	40,286

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
KOSPI 200 Index		157		09/13/18	$	10,562	$	7,973

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	7,973

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

34 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  (continued)	iShares® MSCI South Korea ETF
August 31, 2018

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(3,128,548	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	7,973

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	17,979,014

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	3,832,823,960	$	—	$	—	$	3,832,823,960
Preferred Stocks		61,037,233		—		—		61,037,233
Money Market Funds		293,313,884		—		—		293,313,884
	$	4,187,175,077	$	—	$	—	$	4,187,175,077
Derivative financial instruments(a)
Assets
Futures Contracts	$	7,973	$	—	$	—	$	7,973

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

See notes to financial statements.

S C H E D U L E   O F   I N V E S T M E N T S 35

Statements of Assets and Liabilities

August 31, 2018

	iShares
	MSCI Australia			iShares			iShares			iShares
	ETF			MSCI Canada ETF			MSCI Japan ETF			MSCI Mexico ETF
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	1,347,217,717		$	2,980,093,751		$	16,929,970,993		$	1,166,509,056
Affiliated(c)		5,442,607			14,171,391			78,190,985			17,061,307
Cash		—			—			—			442,164
Cash pledged:
Futures contracts(d)		685,594			669,504			754,187			257,315
Foreign currency, at value(e)		3,884,133			11,770,658			5,869,561			3,144,619
Receivables:
Investments sold		2,276,692			—			44,790,123			3,883,328
Securities lending income — Affiliated		2,599			6,912			602,029			32,156
Dividends		11,223,506			5,597,221			22,331,172			404,281
Tax reclaims		—			—			241,886			—
Total assets		1,370,732,848			3,012,309,437			17,082,750,936			1,191,734,226
LIABILITIES
Collateral on securities loaned, at value		5,084,295			13,332,823			71,659,131			16,321,438
Payables:
Investments purchased		2,218,242			3,014,020			30,918,525			5,809,121
Variation margin on futures contracts		82,259			112,450			92,697			21,099
Capital shares redeemed		—			—			9			170,274
Investment advisory fees		577,888			1,223,182			7,042,310			482,041
Total liabilities		7,962,684			17,682,475			109,712,672			22,803,973
NET ASSETS	$	1,362,770,164		$	2,994,626,962		$	16,973,038,264		$	1,168,930,253
NET ASSETS CONSIST OF:
Paid-in capital	$	1,786,928,755		$	3,877,178,852		$	17,966,702,449		$	1,811,989,958
Undistributed (distributions in excess of) net investment income		5,589,658			4,969,296			(13,175,500	)		5,242,328
Accumulated net realized loss		(218,964,301	)		(471,865,231	)		(1,077,908,580	)		(308,264,293	)
Net unrealized appreciation (depreciation)		(210,783,948	)		(415,655,955	)		97,419,895			(340,037,740	)
NET ASSETS	$	1,362,770,164		$	2,994,626,962		$	16,973,038,264		$	1,168,930,253
Shares outstanding		60,400,000			104,000,000			290,400,000			23,200,000
Net asset value	$	22.56		$	28.79		$	58.45		$	50.38
Shares authorized		627.8 million			340.2 million			2.5246 billion			255 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a)   Securities loaned, at value	$	4,661,663		$	12,866,566		$	56,815,489		$	15,478,727
(b)   Investments, at cost — Unaffiliated	$	1,558,094,211		$	3,395,784,024		$	16,832,085,121		$	1,506,301,828
(c)   Investments, at cost — Affiliated	$	5,441,463		$	14,169,987		$	78,173,150		$	17,056,434
(d)   Cash collateral pledged, at cost	$	695,634		$	660,925		$	748,453		$	262,718
(e)   Foreign currency, at cost	$	3,901,751		$	11,776,314		$	5,855,248		$	3,186,359

See notes to financial statements.

36 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Assets and Liabilities (continued)

August 31, 2018

	iShares MSCI South Korea ETF
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	3,893,861,193
Affiliated(c)		293,313,884
Cash pledged:
Futures contracts(d)		5,218,717
Receivables:
Investments sold		11,398,843
Securities lending income — Affiliated		808,729
Variation margin on futures contracts		8,324
Dividends		229,594
Total assets		4,204,839,284
LIABILITIES
Foreign bank overdraft		14,050
Collateral on securities loaned, at value		289,709,408
Payables:
Investments purchased		6,322,592
Investment advisory fees		1,902,320
Total liabilities		297,948,370
NET ASSETS	$	3,906,890,914
NET ASSETS CONSIST OF:
Paid-in capital	$	2,808,497,993
Distributions in excess of net investment income		(104,898,504	)
Accumulated net realized loss		(845,475,942	)
Net unrealized appreciation		2,048,767,367
NET ASSETS	$	3,906,890,914
Shares outstanding		57,750,000
Net asset value	$	67.65
Shares authorized		200 million
Par value	$	0.001
(a)   Securities loaned, at value	$	274,029,117
(b)   Investments, at cost — Unaffiliated	$	1,844,968,357
(c)   Investments, at cost — Affiliated	$	293,253,757
(d)   Cash collateral pledged, at cost	$	5,400,455

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 37

Statements of Operations

Year Ended August 31, 2018

	iShares MSCI Australia ETF			iShares MSCI Canada ETF			iShares MSCI Japan ETF			iShares MSCI Mexico ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	72,894,282		$	86,786,854		$	410,871,925		$	27,054,603
Dividends — Affiliated		18,406			23,946			135,701			13,135
Interest — Unaffiliated		564			2,525			—			6,942
Securities lending income — Affiliated — net		63,122			56,748			4,153,292			415,795
Foreign taxes withheld		(918,797	)		(13,005,689	)		(41,091,459	)		(1,299,918	)
Other foreign taxes		—			—			—			(104,632	)
Total investment income		72,057,577			73,864,384			374,069,459			26,085,925
EXPENSES
Investment advisory fees		7,725,026			14,137,084			91,569,049			5,288,772
Proxy fees		210			339			1,749			144
Total expenses		7,725,236			14,137,423			91,570,798			5,288,916
Net investment income		64,332,341			59,726,961			282,498,661			20,797,009
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(12,086,447	)		(50,516,549	)		(178,511,706	)		(55,451,920	)
Investments — Affiliated		(1,454	)		(997	)		(5,447	)		2,930
In-kind redemptions — Unaffiliated		62,810,686			186,357,426			1,111,588,236			(18,210,664	)
Futures contracts		305,608			974,424			15,743,260			69,292
Foreign currency transactions		(1,016,602	)		(623,016	)		(7,166,609	)		(209,651	)
Net realized gain (loss)		50,011,791			136,191,288			941,647,734			(73,800,013	)
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(43,247,505	)		(30,867,682	)		61,878,904			(90,582,464	)
Investments — Affiliated		824			(1,282	)		11,023			(1,598	)
Futures contracts		261,088			(35,374	)		(1,114,774	)		(9,345	)
Foreign currency translations		(308,933	)		21,539			(147,375	)		(76,873	)
Net change in unrealized appreciation (depreciation)		(43,294,526	)		(30,882,799	)		60,627,778			(90,670,280	)
Net realized and unrealized gain (loss)		6,717,265			105,308,489			1,002,275,512			(164,470,293	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	71,049,606		$	165,035,450		$	1,284,774,173		$	(143,673,284	)

See notes to financial statements.

38 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Operations (continued)

Year Ended August 31, 2018

	iShares MSCI South Korea ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	83,246,355
Dividends — Affiliated		130,272
Interest — Unaffiliated		262
Securities lending income — Affiliated — net		6,437,040
Foreign taxes withheld		(12,863,179	)
Other foreign taxes		(871	)
Total investment income		76,949,879
EXPENSES
Investment advisory fees		23,961,232
Proxy fees		351
Total expenses		23,961,583
Net investment income		52,988,296
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		40,334,402
Investments — Affiliated		(23,526	)
Futures contracts		(3,128,548	)
Foreign currency transactions		218,190
Net realized gain		37,400,518
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(22,854,078	)
Investments — Affiliated		40,286
Futures contracts		7,973
Foreign currency translations		(196,958	)
Net change in unrealized appreciation (depreciation)		(23,002,777	)
Net realized and unrealized gain		14,397,741
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	67,386,037

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 39

Statements of Changes in Net Assets

	iShares MSCI Australia ETF						iShares MSCI Canada ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	64,332,341		$	70,264,196		$	59,726,961		$	62,223,555
Net realized gain		50,011,791			78,995,511			136,191,288			139,294,992
Net change in unrealized appreciation (depreciation)		(43,294,526	)		127,209,450			(30,882,799	)		156,684,789
Net increase in net assets resulting from operations		71,049,606			276,469,157			165,035,450			358,203,336
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(70,243,817	)		(83,656,742	)		(62,114,985	)		(60,198,481	)
Decrease in net assets resulting from distributions to shareholders		(70,243,817	)		(83,656,742	)		(62,114,985	)		(60,198,481	)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(403,947,951	)		(95,602,420	)		(236,213,205	)		(267,878,744	)
NET ASSETS
Total increase (decrease) in net assets		(403,142,162	)		97,209,995			(133,292,740	)		30,126,111
Beginning of year		1,765,912,326			1,668,702,331			3,127,919,702			3,097,793,591
End of year	$	1,362,770,164		$	1,765,912,326		$	2,994,626,962		$	3,127,919,702
Undistributed net investment income included in net assets at end of year	$	5,589,658		$	6,908,701		$	4,969,296		$	7,575,046

See notes to financial statements.

40 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Changes in Net Assets (continued)

	iShares MSCI Japan ETF						iShares MSCI Mexico ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	282,498,661		$	227,669,417		$	20,797,009		$	25,577,881
Net realized gain (loss)		941,647,734			455,582,391			(73,800,013	)		(7,878,835	)
Net change in unrealized appreciation (depreciation)		60,627,778			1,310,254,903			(90,670,280	)		189,275,345
Net increase (decrease) in net assets resulting from operations		1,284,774,173			1,993,506,711			(143,673,284	)		206,974,391
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(279,038,333	)		(288,645,468	)		(22,542,336	)		(21,098,710	)
Decrease in net assets resulting from distributions to shareholders		(279,038,333	)		(288,645,468	)		(22,542,336	)		(21,098,710	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(50,386,475	)		297,647,992			14,504,278			(182,752,096	)
NET ASSETS
Total increase (decrease) in net assets		955,349,365			2,002,509,235			(151,711,342	)		3,123,585
Beginning of year		16,017,688,899			14,015,179,664			1,320,641,595			1,317,518,010
End of year	$	16,973,038,264		$	16,017,688,899		$	1,168,930,253		$	1,320,641,595
Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(13,175,500	)	$	(26,048,656	)	$	5,242,328		$	7,154,017

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 41

Statements of Changes in Net Assets (continued)

	iShares MSCI South Korea ETF
	Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	52,988,296		$	35,160,671
Net realized gain		37,400,518			166,328,669
Net change in unrealized appreciation (depreciation)		(23,002,777	)		392,652,094
Net increase in net assets resulting from operations		67,386,037			594,141,434
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(118,169,941	)		(34,948,193	)
Decrease in net assets resulting from distributions to shareholders		(118,169,941	)		(34,948,193	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		173,037,055			(227,525,666	)
NET ASSETS
Total increase in net assets		122,253,151			331,667,575
Beginning of year		3,784,637,763			3,452,970,188
End of year	$	3,906,890,914		$	3,784,637,763
Distributions in excess of net investment income included in net assets at end of year	$	(104,898,504	)	$	(81,351,030	)

See notes to financial statements.

42 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights

(For a share outstanding throughout each period)

	iShares MSCI Australia ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	22.58		$	20.30		$	18.66		$	27.15		$	23.61
Net investment income(a)		0.90			0.84			0.84			1.23			1.10
Net realized and unrealized gain (loss)(b)		0.07			2.45			1.59			(8.49	)		3.43
Net increase (decrease) from investment operations		0.97			3.29			2.43			(7.26	)		4.53
Distributions(c)
From net investment income		(0.99	)		(1.01	)		(0.79	)		(1.23	)		(0.99	)
Total distributions		(0.99	)		(1.01	)		(0.79	)		(1.23	)		(0.99	)
Net asset value, end of year	$	22.56		$	22.58		$	20.30		$	18.66		$	27.15
Total Return
Based on net asset value		4.43	%		16.70	%		13.36	%		(27.31	)%		19.76	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		3.95	%		3.90	%		4.41	%		5.37	%		4.28	%
Supplemental Data
Net assets, end of year (000)	$	1,362,770		$	1,765,912		$	1,668,702		$	1,228,063		$	2,047,113
Portfolio turnover rate(d)		3	%		4	%		7	%		9	%		6	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N AN C I A L    H I G H L I G H T S 43

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Canada ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	27.83		$	25.33		$	24.02		$	32.93		$	27.34
Net investment income(a)		0.58			0.51			0.51			0.54			0.59
Net realized and unrealized gain (loss)(b)		0.97			2.47			1.29			(8.85	)		5.62
Net increase (decrease) from investment operations		1.55			2.98			1.80			(8.31	)		6.21
Distributions(c)
From net investment income		(0.59	)		(0.48	)		(0.49	)		(0.60	)		(0.62	)
Total distributions		(0.59	)		(0.48	)		(0.49	)		(0.60	)		(0.62	)
Net asset value, end of year	$	28.79		$	27.83		$	25.33		$	24.02		$	32.93
Total Return
Based on net asset value		5.61	%		11.88	%		7.73	%		(25.48	)%		23.00	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		2.01	%		1.93	%		2.18	%		1.92	%		1.97	%
Supplemental Data
Net assets, end of year (000)	$	2,994,627		$	3,127,920		$	3,097,794		$	1,931,454		$	3,786,906
Portfolio turnover rate(d)		3	%		6	%		4	%		5	%		6	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

44 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Japan ETF
		Year Ended 08/31/18			Year Ended 08/31/17	(a)		Year Ended 08/31/16	(a)		Year Ended 08/31/15	(a)		Year Ended 08/31/14	(a)
Net asset value, beginning of year	$	54.57		$	49.05		$	48.61		$	47.32		$	43.87
Net investment income(b)		0.87			0.49			0.72			0.60			0.60
Net realized and unrealized gain(c)		3.87			5.96			0.44			1.22			3.53
Net increase from investment operations		4.74			6.45			1.16			1.82			4.13
Distributions(d)
From net investment income		(0.86	)		(0.93	)		(0.72	)		(0.53	)		(0.68	)
Total distributions		(0.86	)		(0.93	)		(0.72	)		(0.53	)		(0.68	)
Net asset value, end of year	$	58.45		$	54.57		$	49.05		$	48.61		$	47.32
Total Return
Based on net asset value		8.67	%		13.31	%		2.44	%		3.84	%		9.39	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		1.46	%		1.45	%		1.53	%		1.20	%		1.31	%
Supplemental Data
Net assets, end of year (000)	$	16,973,038		$	16,017,689		$	14,015,180		$	19,147,802		$	14,729,189
Portfolio turnover rate(e)		4	%		4	%		4	%		2	%		2	%

^(a)  Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L   H I G H L I G H T S 45

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Mexico ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	56.68		$	50.48		$	52.70		$	71.51		$	61.93
Net investment income(a)		0.95			0.88			0.93			0.68			1.06
Net realized and unrealized gain (loss)(b)		(6.17	)		6.10			(1.82	)		(18.56	)		9.61
Net increase (decrease) from investment operations		(5.22	)		6.98			(0.89	)		(17.88	)		10.67
Distributions(c)
From net investment income		(1.08	)		(0.78	)		(1.33	)		(0.93	)		(1.09	)
Total distributions		(1.08	)		(0.78	)		(1.33	)		(0.93	)		(1.09	)
Net asset value, end of year	$	50.38		$	56.68		$	50.48		$	52.70		$	71.51
Total Return
Based on net asset value		(9.02	)%		14.03	%		(1.68	)%		(25.10	)%		17.42	%
Ratios to Average Net Assets
Total expenses		0.47	%		0.49	%		0.48	%		0.48	%		0.48	%
Net investment income		1.87	%		1.79	%		1.82	%		1.10	%		1.61	%
Supplemental Data
Net assets, end of year (000)	$	1,168,930		$	1,320,642		$	1,317,518		$	1,206,942		$	3,275,152
Portfolio turnover rate(d)		7	%		8	%		8	%		13	%		19	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

46 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI South Korea ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	68.19		$	56.89		$	48.15		$	66.42		$	57.67
Net investment income(a)		0.94			0.64			0.56			0.46			0.25
Net realized and unrealized gain (loss)(b)		0.70			11.31			9.38			(18.07	)		9.40
Net increase (decrease) from investment operations		1.64			11.95			9.94			(17.61	)		9.65
Distributions(c)
From net investment income		(2.18	)		(0.65	)		(1.20	)		(0.66	)		(0.90	)
Total distributions		(2.18	)		(0.65	)		(1.20	)		(0.66	)		(0.90	)
Net asset value, end of year	$	67.65		$	68.19		$	56.89		$	48.15		$	66.42
Total Return
Based on net asset value		2.15	%		21.28	%		20.92	%		(26.58	)%		16.83	%
Ratios to Average Net Assets
Total expenses		0.59	%		0.62	%		0.64	%		0.62	%		0.62	%
Net investment income		1.31	%		1.05	%		1.09	%		0.81	%		0.39	%
Supplemental Data
Net assets, end of year (000)	$	3,906,891		$	3,784,638		$	3,452,970		$	3,160,954		$	4,891,619
Portfolio turnover rate(d)		18	%(e)		16	%(e)		22	%(e)		24	%(e)		13	%(e)
(a)   Based on average shares outstanding.
(b)   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.
(c)   Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d)   Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash in U.S. dollars (“cash creations”).
(e)   Portfolio turnover rate excluding cash creations was as follows:		11	%		6	%		10	%		10	%		10	%

See notes to financial statements.

F I N A N C I A L   H I G H L I G H T S 47

Notes to Financial Statements

1.     ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification   Classification
MSCI Australia	Non-diversified
MSCI Canada	Diversified
MSCI Japan	Diversified
MSCI Mexico(a)	Non-diversified
MSCI South Korea(b)	Non-diversified

^(a)  Formerly the iShares MSCI Mexico Capped ETF.

^(b)  Formerly the iShares MSCI South Korea Capped ETF.

2.     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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

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Notes to Financial Statements   (continued)

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3.     INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.     SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 49

Notes to Financial Statements   (continued)

exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral   Received(a)		Non-Cash Collateral Received		Net Amount
MSCI Australia
Goldman Sachs & Co.	$	311,045	$	311,045	$	—	$	—
JPMorgan Securities LLC		4,236,703		4,236,703		—		—
Macquarie Bank Limited		113,915		113,915		—		—
	$	4,661,663	$	4,661,663	$	—	$	—
MSCI Canada
Credit Suisse Securities (USA) LLC	$	1,019	$	1,019	$	—	$	—
JPMorgan Securities LLC		12,865,547		12,865,547		—		—
	$	12,866,566	$	12,866,566	$	—	$	—
MSCI Japan
Barclays Capital Inc.	$	1,492,403	$	1,492,403	$	—	$	—
Citigroup Global Markets Inc.		6,860,825		6,860,825		—		—
Credit Suisse Securities (USA) LLC		1,242,759		1,242,759		—		—
Goldman Sachs & Co.		1,722,506		1,722,506		—		—
JPMorgan Securities LLC		19,378,057		19,378,057		—		—
Macquarie Bank Limited		46,174		46,174		—		—
Merrill Lynch, Pierce, Fenner & Smith		334,931		334,931		—		—
Morgan Stanley & Co. LLC		11,450,860		11,450,860		—		—
Nomura Securities International Inc.		1,624,180		1,624,180		—		—
State Street Bank & Trust Company		424,800		424,800		—		—
UBS AG		1,110,830		1,110,830		—		—
Wells Fargo Securities LLC		11,127,164		11,127,164		—		—
	$	56,815,489	$	56,815,489	$	—	$	—
MSCI Mexico
Credit Suisse Securities (USA) LLC	$	109,156	$	109,156	$	—	$	—
Deutsche Bank Securities Inc.		351,526		351,526		—		—
Goldman Sachs & Co.		7,506,087		7,506,087		—		—
JPMorgan Securities LLC		365,053		365,053		—		—
Merrill Lynch, Pierce, Fenner & Smith		623,517		623,517		—		—
Morgan Stanley & Co. LLC		5,890,240		5,890,240		—		—
UBS Securities LLC		633,148		633,148		—		—
	$	15,478,727	$	15,478,727	$	—	$	—

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Notes to Financial Statements (continued)

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral   Received(a)		Non-Cash Collateral Received		Net Amount
MSCI South Korea
Citigroup Global Markets Inc.	$	73,007,406	$	73,007,406	$	—	$	—
Credit Suisse Securities (USA) LLC		33,779,422		33,779,422		—		—
Goldman Sachs & Co.		76,488,011		76,488,011		—		—
HSBC Bank PLC		5,920,734		5,920,734		—		—
Jefferies LLC		586,210		586,210		—		—
JPMorgan Securities LLC		10,366,065		10,366,065		—		—
Macquarie Bank Limited		12,693,263		12,693,263		—		—
Morgan Stanley & Co. LLC		61,188,006		61,188,006		—		—
	$	274,029,117	$	274,029,117	$	—	$	—

^(a)  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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5.     DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

6.     INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Japan and iShares MSCI Mexico ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $7 billion		0.59	%
Over $7 billion, up to and including $11 billion		0.54
Over $11 billion, up to and including $24 billion		0.49
Over $24 billion, up to and including $48 billion		0.44
Over $48 billion, up to and including $72 billion		0.40
Over $72 billion, up to and including $96 billion		0.36
Over $96 billion		0.32

N O T E S   T O   F I N A N C I A L    S T A T E M E N T S 51

Notes to Financial Statements   (continued)

For its investment advisory services to the iShares MSCI South Korea ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $2 billion		0.74	%
Over $2 billion, up to and including $4 billion		0.69
Over $4 billion, up to and including $8 billion		0.64
Over $8 billion, up to and including $16 billion		0.57
Over $16 billion, up to and including $24 billion		0.51
Over $24 billion, up to and including $32 billion		0.48
Over $32 billion		0.45

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid to BTC
MSCI Australia	$	16,345
MSCI Canada		19,233
MSCI Japan		901,288
MSCI Mexico		102,764
MSCI South Korea		1,566,482

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Australia	$	2,592,852	$	180,313
MSCI Japan		43,832,041		26,951,050
MSCI South Korea		19,574,912		4,872,193

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 shown as dividends – affiliated in the statement of operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

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Notes to Financial Statements (continued)

7.     PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
MSCI Australia	$	101,629,202	$	44,305,093
MSCI Canada		151,230,034		91,094,753
MSCI Japan		784,482,729		779,401,264
MSCI Mexico		87,032,433		73,593,125
MSCI South Korea		878,756,157		743,745,183

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind   Sales
MSCI Australia	$	131,175,959	$	593,982,121
MSCI Canada		969,375,834		1,260,389,806
MSCI Japan		5,769,607,636		5,810,186,448
MSCI Mexico		1,652,868,980		1,651,113,010

8.     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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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. As of August 31, 2018, the following permanent differences attributable to passive foreign investment companies, the timing and recognition of partnership income, the characterization of corporate actions, 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 (Distributions in Excess of) Net Investment Income			Accumulated   Net Realized   Gain (Loss)
MSCI Australia	$	21,149,650		$	4,592,433			$(25,742,083)
MSCI Canada		70,228,771			(217,726	)		(70,011,045)
MSCI Japan		817,584,489			9,412,828			(826,997,317)
MSCI Mexico		(50,991,454	)		(166,362	)		51,157,816
MSCI South Korea		(226,591,665	)		41,634,171			184,957,494

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
MSCI Australia
Ordinary income	$	70,243,817	$	83,656,742
MSCI Canada
Ordinary income	$	62,114,985	$	60,198,481
MSCI Japan
Ordinary income	$	279,038,333	$	288,645,468
MSCI Mexico
Ordinary income	$	22,542,336	$	21,098,710
MSCI South Korea
Ordinary income	$	118,169,941	$	34,948,193

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 53

Notes to Financial Statements   (continued)

As of August 31, 2018, 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
MSCI Australia	$	14,908,453	$(181,281,964)	$(257,785,080)	$(424,158,591)
MSCI Canada		5,962,706	(423,454,955)	(465,059,641)	(882,551,890)
MSCI Japan		17,571,698	(908,062,500)	(103,173,383)	(993,664,185)
MSCI Mexico		5,720,202	(271,643,832)	(377,136,075)	(643,059,705)
MSCI South Korea		18,571,131	(406,596,244)	1,486,418,034	1,098,392,921

^(a)  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 on investments in passive foreign investment companies, the timing and recognition of partnership income and the characterization of corporate actions.

As of August 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non-Expiring(a)		Expiring 2019		Total
MSCI Australia	$	169,154,600	$	12,127,364	$	181,281,964
MSCI Canada		408,551,036		14,903,919		423,454,955
MSCI Japan		768,834,306		139,228,194		908,062,500
MSCI Mexico		248,780,167		22,863,665		271,643,832
MSCI South Korea		328,092,540		78,503,704		406,596,244

^(a)  Must be utilized prior to losses subject to expiration.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation	Gross Unrealized  Depreciation	Net Unrealized   Appreciation   (Depreciation)
MSCI Australia	$	1,610,536,806	$113,902,032	$(371,598,079)	$(257,696,047)
MSCI Canada		3,459,357,697	213,388,534	(678,469,190)	(465,080,656)
MSCI Japan		17,110,851,549	1,701,909,221	(1,805,071,334)	(103,162,113)
MSCI Mexico		1,560,456,597	7,633,697	(384,529,276)	(376,895,579)
MSCI South Korea		2,700,571,447	2,125,508,146	(638,896,543)	1,486,611,603

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9.     PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability

54 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements   (continued)

or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

10.  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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Australia
Shares sold		8,600,000		$	194,963,106			29,400,000		$	624,267,864
Shares redeemed		(26,400,000	)		(598,911,057	)		(33,400,000	)		(719,870,284	)
Net decrease		(17,800,000	)	$	(403,947,951	)		(4,000,000	)	$	(95,602,420	)
MSCI Canada
Shares sold		35,900,000		$	1,032,578,219			38,600,000		$	1,022,753,433
Shares redeemed		(44,300,000	)		(1,268,791,424	)		(48,500,000	)		(1,290,632,177	)
Net decrease		(8,400,000	)	$	(236,213,205	)		(9,900,000	)	$	(267,878,744	)
MSCI Japan
Shares sold		99,600,000		$	6,015,335,010			113,100,000	(a)	$	4,661,723,572
Shares redeemed		(102,750,000	)		(6,065,721,485	)		(105,300,000	)(a)		(4,364,075,580	)
Net increase (decrease)		(3,150,000	)	$	(50,386,475	)		7,800,000		$	297,647,992
MSCI Mexico
Shares sold		33,200,000		$	1,674,175,777			45,200,000		$	2,161,693,065
Shares redeemed		(33,300,000	)		(1,659,671,499	)		(48,000,000	)		(2,344,445,161	)
Net increase (decrease)		(100,000	)	$	14,504,278			(2,800,000	)	$	(182,752,096	)
MSCI South Korea
Shares sold		6,850,000		$	492,531,534			4,750,000		$	330,287,930
Shares redeemed		(4,600,000	)		(319,494,479	)		(9,950,000	)		(557,813,596	)
Net increase (decrease)		2,250,000		$	173,037,055			(5,200,000	)	$	(227,525,666	)

^(a)  Share transactions reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016.

N O T E S    T O    F I N A N C I A L    S T A T E M E N T S 55

Notes to Financial Statements   (continued)

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 shares sold in the table above.

11.  LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

12.  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 additional disclosure in the financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of iShares MSCI Australia ETF, iShares MSCI Canada ETF,

iShares MSCI Japan ETF, iShares MSCI Mexico ETF and iShares MSCI South Korea ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares MSCI Australia ETF, iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico ETF and iShares MSCI South Korea ETF (five of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

R E P O R T   O F   I N D E P E N D E N T   R E G I S T E R E D   P U B L I C   A C C O U N T I N G   F I R M 57

Important Tax Information   (unaudited)

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend   Income
MSCI Australia	$	66,475,503
MSCI Canada		86,182,443
MSCI Japan		385,996,702
MSCI Mexico		23,393,807
MSCI South Korea		120,012,126

For the fiscal year ended August 31, 2018, 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
MSCI Australia	$	72,894,280	$918,320
MSCI Canada		86,786,853	13,002,780
MSCI Japan		410,678,068	41,088,621
MSCI Mexico		26,949,466	1,392,853
MSCI South Korea		122,780,758	12,864,050

58 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Board Review and Approval of Investment Advisory Contract

I. iShares MSCI Australia ETF, iShares MSCI Canada ETF and iShares MSCI Mexico 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

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

B O A R D  R E V I E W  A N D  A P P R O V A L  O F  I N V E S T M E N T  A D V I S O R Y  C O N T R A C T 59

Board Review and Approval of Investment Advisory Contract  (continued)

Costs of Services Provided to Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds already provided for breakpoints in the Funds’ investment advisory fee rate as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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

60 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Board Review and Approval of Investment Advisory Contract  (continued)

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

B O A R D  R E V I E W  A N D  A P P R O V A L  O F  I N V E S T M E N T  A D V I S O R Y  C O N T R A C T 61

Board Review and Approval of Investment Advisory Contract  (continued)

including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

III. iShares MSCI South Korea 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests,

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Board Review and Approval of Investment Advisory Contract  (continued)

and requested certain additional information, which management agreed to provide. At a meeting held on May 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information considered.

B O A R D  R E V I E W  A N D  A P P R O V A L  O F  I N V E S T M E N T  A D V I S O R Y  C O N T R A C T 63

Board Review and Approval of Investment Advisory Contract  (continued)

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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information(unaudited)

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 Australia	$	0.990614	$	—	$	—	$	0.990614		100	%		—	%		—	%		100	%
MSCI Canada		0.536248		—		0.056849		0.593097		90			—			10			100
MSCI Japan		0.841095		—		0.018735		0.859830		98			—			2			100
MSCI South Korea		0.962801		—		1.213441		2.176242		44			—			56			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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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 Australia ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		6		0.43
Greater than 1.5% and Less than 2.0%		18		1.30
Greater than 1.0% and Less than 1.5%		52		3.76
Greater than 0.5% and Less than 1.0%		221		15.97
Greater than 0.0% and Less than 0.5%		512		37.00
At NAV		11		0.79
Less than 0.0% and Greater than –0.5%		337		24.36
Less than –0.5% and Greater than –1.0%		141		10.19
Less than –1.0% and Greater than –1.5%		55		3.97
Less than –1.5% and Greater than –2.0%		12		0.87
Less than –2.0% and Greater than –2.5%		10		0.72
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –4.0% and Greater than –4.5%		1		0.07
		1,384		100.00	%

S U P P L E M E N T A L   I N F O R M A T I O N 65

Supplemental Information  (unaudited) (continued)

iShares MSCI Canada ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 1.5% and Less than 2.0%		2		0.14
Greater than 1.0% and Less than 1.5%		5		0.36
Greater than 0.5% and Less than 1.0%		39		2.82
Greater than 0.0% and Less than 0.5%		631		45.59
At NAV		30		2.17
Less than 0.0% and Greater than –0.5%		633		45.74
Less than –0.5% and Greater than –1.0%		39		2.82
Less than –1.0% and Greater than –1.5%		4		0.29
		1,384		100.00	%

iShares MSCI Japan ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 4.0% and Less than 4.5%		3		0.22
Greater than 3.5% and Less than 4.0%		3		0.22
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		14		1.01
Greater than 1.5% and Less than 2.0%		42		3.03
Greater than 1.0% and Less than 1.5%		103		7.44
Greater than 0.5% and Less than 1.0%		248		17.92
Greater than 0.0% and Less than 0.5%		375		27.11
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		300		21.69
Less than –0.5% and Greater than –1.0%		161		11.63
Less than –1.0% and Greater than –1.5%		51		3.68
Less than –1.5% and Greater than –2.0%		37		2.67
Less than –2.0% and Greater than –2.5%		14		1.01
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%		2		0.14
Less than –4.5% and Greater than –5.0%		1		0.07
Less than –6.0%		3		0.22
		1,384		100.00	%

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Supplemental Information(unaudited) (continued)

iShares MSCI Mexico ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0% and Less than 2.5%		5		0.36	%
Greater than 1.5% and Less than 2.0%		6		0.43
Greater than 1.0% and Less than 1.5%		19		1.37
Greater than 0.5% and Less than 1.0%		90		6.50
Greater than 0.0% and Less than 0.5%		514		37.14
At NAV		27		1.95
Less than 0.0% and Greater than –0.5%		539		38.96
Less than –0.5% and Greater than –1.0%		158		11.42
Less than –1.0% and Greater than –1.5%		20		1.45
Less than –1.5% and Greater than –2.0%		2		0.14
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –4.5% and Greater than –5.0%		1		0.07
		1,384		100.00	%

iShares MSCI South Korea ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		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%		9		0.65
Greater than 1.5% and Less than 2.0%		26		1.88
Greater than 1.0% and Less than 1.5%		52		3.76
Greater than 0.5% and Less than 1.0%		176		12.72
Greater than 0.0% and Less than 0.5%		345		24.94
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		361		26.09
Less than –0.5% and Greater than –1.0%		239		17.27
Less than –1.0% and Greater than –1.5%		99		7.15
Less than –1.5% and Greater than –2.0%		31		2.24
Less than –2.0% and Greater than –2.5%		19		1.37
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 –4.0% and Greater than –4.5%		1		0.07
		1,384		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD if such managers market a fund to EU investors.

BFA has registered the iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico ETF and iShares MSCI South Korea ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

BFA is required under the AIFMD 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.

S U P P L E M E N T A L  I N F O R M A T I O N 67

Supplemental Information(unaudited) (continued)

Disclosures are provided in relation to both (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.

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 each 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.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

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 each 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 iShares MSCI Canada ETF in respect of BFA’s financial year ending December 31, 2017 was USD 294.45 thousand. This figure is comprised of fixed remuneration of USD 117.36 thousand and variable remuneration of USD 177.09 thousand. There were a total of 417 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, 2017, to its senior management was USD 41.19 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 7.67 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, 2017 was USD 1.8 million. This figure is comprised of fixed remuneration of USD 718.95 thousand and variable remuneration of USD 1.08 million. There were a total of 417 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, 2017, to its senior management was USD 252.34 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 47.01 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Mexico ETF in respect of BFA’s financial year ending December 31, 2017 was USD 103.29 thousand. This figure is comprised of fixed remuneration of USD 41.17 thousand and variable remuneration of USD 62.12 thousand. There were a total of 417 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Mexico ETF in respect of BFA’s financial year ending December 31, 2017, to its senior management was USD 14.45 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 2.69 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI South Korea ETF in respect of BFA’s financial year ending December 31, 2017 was USD 394.31 thousand. This figure is comprised of fixed remuneration of USD 157.17 thousand and variable remuneration of USD 237.14 thousand. There were a total of 417 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 ETF in respect of BFA’s financial year ending December 31, 2017, to its senior management was USD 55.16 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 10.28 thousand.

68 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^(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. and its affiliates.

^(b) Mark K. 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.

Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

D I R E C T O R   A N D  O F F I C E R  I N F O R M A T I O N 69

Director and Officer Information(continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

70 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

G E N E R A L   I N F O R M A T I O N 71

Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity

CPO	Certificates of Participation (Ordinary)
NVS	Non-Voting Shares

72 2 0 1 8   I S H A R E S   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

  For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737)       This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus.   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.   ^©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

  2018 ANNUAL REPORT

iShares, Inc.

u iShares Core MSCI Emerging Markets ETF | IEMG | NYSE Arca

u iShares MSCI BRIC ETF | BKF | NYSE Arca

u iShares MSCI Emerging Markets Asia ETF | EEMA | NASDAQ

u iShares MSCI Emerging Markets Small-Cap ETF | EEMS | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		14
Shareholder Expenses		14
Consolidated Schedules of Investments		15
Consolidated Financial Statements
Consolidated Statements of Assets and Liabilities		60
Consolidated Statements of Operations		61
Consolidated Statements of Changes in Net Assets		62
Consolidated Financial Highlights		64
Notes to Consolidated Financial Statements		68
Report of Independent Registered Public Accounting Firm		79
Important Tax Information (Unaudited)		80
Board Review and Approval of Investment Advisory Contract		81
Supplemental Information		89
Director and Officer Information		93
General Information		95
Glossary of Terms Used in this Report		96

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T   O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® Core MSCI Emerging Markets ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		(0.52	)%		5.03	%		3.22	%		(0.52	)%		27.78	%		20.44	%
Fund Market		(0.66	)		5.17			3.22			(0.66	)		28.68			20.45
Index		(0.67	)		5.00			3.18			(0.67	)		27.63			20.20

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 10/18/12. The first day of secondary market trading was 10/22/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 14 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        900.00	$        0.67			$        1,000.00	$        1,024.50	$        0.71		0.14	%

^(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

6 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Fund Summary as of August 31, 2018(continued) iShares^® Core MSCI Emerging Markets ETF

Portfolio Management Commentary

The Brazilian equity market detracted the most from the Index’s return for the reporting period as the Brazilian real depreciated sharply against the U.S. dollar and public debt expanded significantly. In addition, Brazil’s economy slowed during the latter half of the reporting period as a nationwide truckers’ strike disrupted transportation.

Equity markets in Turkey and South Africa also weighed on the Index’s performance. In Turkey, sharply rising inflation, a significantly weaker Turkish lira, concerns about the government’s ability to control the currency crisis, and escalating political tensions with the U.S. led to an economic slowdown and steep market losses. Stocks in South Africa declined as the economy slipped into recession late in the reporting period and the South African rand weakened.

On the upside, stocks in Taiwan contributed to the Index’s return, driven largely by technology-related stocks. Solid demand for semiconductors and electronic components boosted Taiwan’s export-driven economy.

South Korean and Indian equities also contributed to the Index’s return. South Korean stocks advanced as strong demand for exports outweighed a domestic economic slowdown. In India, robust economic growth coupled with strong corporate earnings drove gains as the country recovered from the short-term setbacks of long-term reform measures.

From a sector perspective, consumer discretionary and financials stocks were the key detractors from the Index’s performance. Within the consumer discretionary sector, retailers faced a slowdown in consumer spending, and weaker sales weighed on automotive stocks. In the financials sector, bank stocks declined despite strong profitability amid slowing loan growth, trade concerns, and changing regulatory policies.

On the upside, energy stocks contributed meaningfully to the Index’s return. Crude oil prices rose sharply during the reporting period, leading to higher revenues for energy companies. Larger energy companies increased their market share as cost, tax, and regulatory issues weighed on smaller companies. The information technology sector was another contributor to the Index’s performance as investors’ expectations for growth rose amid an ongoing shift toward e-commerce, cloud computing, and mobile devices.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Information Technology	26.4%
Financials	21.5
Consumer Discretionary	10.1
Materials	8.3
Energy	7.0
Consumer Staples	6.6
Industrials	6.1
Telecommunication Services	4.0
Health Care	3.9
Real Estate	3.5
Utilities	2.6

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
China	29.1%
South Korea	15.3
Taiwan	13.1
India	10.1
South Africa	6.1
Brazil	5.6
Mexico	3.1
Russia	3.1
Malaysia	2.6
Thailand	2.6

^(a)  Excludes money market funds.

F U N D    S U M M A  R Y 7

Fund Summary as of August 31, 2018 iShares^® MSCI BRIC ETF

Investment Objective

The iShares MSCI BRIC ETF (the “Fund”) seeks to track the investment of an index composed of Chinese equities that are available to international investors, and Brazilian, Russian, and Indian equities, as represented by the MSCI BRIC Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(1.16	)%		5.74	%		1.38	%		(1.16	)%		32.19	%		14.68	%
Fund Market		(1.65	)		5.87			1.37			(1.65	)		32.97			14.58
Index		(0.53	)		6.36			2.00			(0.53	)		36.12			21.86

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 14 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        873.20	$        3.16			$        1,000.00	$        1,021.80	$        3.41		0.67	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI BRIC ETF

Portfolio Management Commentary

Stocks in Brazil were the largest detractors from the Index’s return for the reporting period as the country struggled to emerge from a lengthy recession. A nationwide truckers’ strike late in the reporting period adversely affected many areas of the Brazilian economy as transportation ground to a halt. In addition, the Brazilian real depreciated sharply against major currencies, public debt continued to expand, and concerns arose about the country’s upcoming elections as polling favored anti-reform candidates.

Chinese stocks, which represented the largest country weight in the Index on average, detracted modestly from the Index’s return. Chinese equities rose sharply for much of the reporting period, but later declined amid escalating trade tensions, a slowing economy, and a depreciating Chinese yuan.

On the positive side, Indian equities contributed to the Index’s return. Robust economic growth coupled with strong corporate earnings drove gains as the country’s stock market recovered from the short-term setbacks of long-term reform measures, including retiring older paper currency in 2016 and implementing a value-added tax in 2017. Rising construction spending and manufacturing growth helped stimulate the economy, as did generally accommodative monetary policy from the Reserve Bank of India.

Stocks in Russia also modestly contributed to the Index’s return. Energy production represents a meaningful component of the Russian economy, and rising oil prices helped the economy overcome the impact of U.S. sanctions on Russia’s nascent recovery.

From a sector perspective, financials and consumer discretionary stocks detracted the most from the Index’s return. Banks led the decline in the financials sector. Despite strong profitability, banks struggled with economic sanctions, trade concerns, and government regulatory uncertainty. In the consumer discretionary sector, retailers faced a slowdown in consumer spending, and trade-war concerns weighed on automotive stocks.

On the upside, energy stocks contributed to the Index’s return, benefiting from the rise in oil prices. The information technology sector also contributed to performance, led by software-related industries.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Information Technology	26.7%
Financials	23.4
Energy	11.4
Consumer Discretionary	8.5
Materials	6.2
Consumer Staples	5.4
Industrials	4.6
Telecommunication Services	3.9
Real Estate	3.6
Health Care	3.4
Utilities	2.9

ALLOCATION BY COUNTRY

Country	Percent of    Total Investments(a)
China	62.9%
India	18.8
Brazil	11.5
Russia	6.6
Other (each representing less than 1%)	0.2

^(a)  Excludes money market funds.

F U N D    S U M M A  R Y 9

Fund Summary as of August 31, 2018 iShares^® MSCI Emerging Markets Asia ETF

Investment Objective

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 EM Asia Custom 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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		2.22	%		7.84	%		5.58	%		2.22	%		45.85	%		42.80	%
Fund Market		1.56			8.00			5.52			1.56			46.91			42.32
Index(a)		2.68			8.20			5.96			2.68			48.32			46.22
MSCI Emerging Markets Asia Index		2.71			8.21			5.72			2.71			48.36			44.06
MSCI EM Asia Custom Capped Index(b)		N/A			N/A			N/A			N/A			N/A			N/A

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.

^(a)  Index performance through May 31, 2018 reflects the performance of the MSCI Emerging Markets Asia Index performance beginning on June 1, 2018 reflects the performance of the MSCI EM Asia Custom Capped Index, which, effective as of June 1, 2018, replaced the MSCI Emerging Markets Asia Index as the underlying index of the Fund.

^(b)  The inception date of the MSCI EM Asia Custom Capped Index was March 27, 2018. The cumulative total return of this index for the period March 27, 2018 through August 31, 2018 was -7.19%.

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 14 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        926.00	$        2.38			$        1,000.00	$        1,022.70	$        2.50		0.49	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Emerging Markets Asia ETF

Portfolio Management Commentary

Taiwanese equities contributed the most to the Index’s return during the reporting period. Increased foreign demand for technology and machinery supported the export-heavy economy’s growth. The manufacturing industry was also a significant contributor to Taiwan’s economic growth; manufacturing companies reported strong profit growth, led by makers of semiconductors and other electronic components.

Indian and South Korean equities also bolstered the Index’s return. In India, robust economic growth coupled with strong corporate earnings drove gains as the country recovered from the short-term setbacks of long-term reform measures, including retiring older paper currency in 2016 and implementing a value-added tax in 2017. South Korean stocks advanced as strong demand for the country’s exports outweighed a domestic economic slowdown. Thai equities also benefited from growth in exports, which continued to drive the country’s economy, along with tourism revenues and infrastructure investments.

On the downside, Indonesian equities were notable detractors from the Index’s return. Despite improving economic growth in the country, heavy sales by foreign investors weighed on the Indonesian stock market, due in part to a weakening Indonesian rupiah. Chinese stocks, which represented the largest country weight in the Index on average, detracted modestly from the Index’s return as trade tensions escalated.

From a sector perspective, information technology stocks were the primary contributor to the Index’s performance as investors’ expectations for growth rose amid an ongoing shift toward e-commerce, cloud computing, and mobile devices. Energy stocks contributed to the Index’s return as crude oil prices rose during the reporting period, leading to higher revenues for energy companies. In addition, larger energy companies increased their market share as cost, tax, and regulatory issues weighed on smaller companies. Healthcare stocks also contributed to the Index’s return as biotechnology and pharmaceuticals stocks benefited from demographic trends toward an older and wealthier middle-class population.

In contrast, the consumer discretionary sector was a notable detractor from the Index’s performance. Retailers faced a slowdown in consumer spending, and weaker sales also weighed on automotive stocks.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Information Technology	36.2%
Financials	20.2
Consumer Discretionary	8.3
Materials	5.8
Energy	5.7
Industrials	5.5
Consumer Staples	5.3
Telecommunication Services	4.0
Health Care	3.7
Real Estate	3.0
Utilities	2.3

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
China	41.1%
South Korea	19.6
Taiwan	16.2
India	12.4
Malaysia	3.4
Thailand	3.2
Indonesia	2.6
Philippines	1.4
Pakistan	0.1

^(a)  Excludes money market funds.

F U N D    S U M M A  R Y 11

Fund Summary as of August 31, 2018 iShares^® MSCI Emerging Markets Small-Cap ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		(0.38	)%		4.30	%		1.92	%		(0.38	)%		23.40	%		14.31	%
Fund Market		(1.40	)		4.35			1.82			(1.40	)		23.75			13.54
Index		(0.87	)		4.73			2.42			(0.87	)		25.97			18.37

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 8/16/11. The first day of secondary market trading was 8/18/11.

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 14 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        896.30	$        3.20			$        1,000.00	$        1,021.80	$        3.41		0.67	%

^(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 14 for more information.

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Fund Summary as of August 31, 2018(continued) iShares^® MSCI Emerging Markets Small-Cap ETF

Portfolio Management Commentary

The Brazilian equity market detracted the most from the Index’s return for the reporting period as the Brazilian real depreciated sharply and public debt expanded significantly. In addition, Brazil’s economy slowed during the latter half of the reporting period as a nationwide truckers’ strike ground transportation to a halt.

Equity markets in South Africa and Turkey also weighed on the Index’s return. South African stocks declined as the economy slipped into recession late in the reporting period and the South African rand weakened. Turkish stocks were negatively affected by sharply rising inflation, a significantly weaker Turkish lira, concerns about the government’s ability to control the currency crisis, and escalating political tensions with the U.S., which led to an economic slowdown and steep market losses.

On the upside, South Korean stocks contributed to the Index’s return as robust demand for exports outweighed a domestic economic slowdown. Chinese stocks, which represented the largest country weight in the Index on average, contributed modestly to the Index’s return despite escalating trade tensions. Taiwanese stocks also bolstered the Index’s return, driven largely by semiconductor-related stocks. Solid global demand for semiconductors and electronic components boosted the country’s export-driven economy.

From a sector perspective, industrials and financials stocks detracted the most from the Index’s return. In the industrials sector, widespread issues such as trade tariffs, the Brazilian truckers’ strike, and slowing growth in India weighed on capital goods and transportation stocks. The financials sector declined amid a strong U.S. dollar, increasing loan defaults, and trade concerns. The materials sector also weighed on the Index’s returns as platinum prices declined.

On the upside, healthcare stocks contributed to the Index’s return as biotechnology and pharmaceuticals stocks benefited from demographic trends toward an older and wealthier middle-class population. The information technology sector also contributed to the Index’s performance as investors’ expectations for growth rose amid an ongoing shift toward e-commerce, cloud computing, and mobile devices.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Information Technology	17.0%
Consumer Discretionary	15.8
Industrials	13.9
Materials	12.1
Financials	10.2
Health Care	9.1
Real Estate	7.6
Consumer Staples	7.0
Utilities	4.0
Energy	2.1
Telecommunication Services	1.2

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
Taiwan	20.0%
South Korea	19.6
India	16.0
China	12.8
South Africa	4.9
Brazil	4.7
Thailand	4.0
Malaysia	3.4
Mexico	3.3
Indonesia	2.4

^(a)  Excludes money market funds.

F U N D    S U M M A  R Y 13

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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Consolidated Schedule of Investments	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Brazil — 3.7%
AES Tiete Energia SA, NVS	1,332,200	$	3,123,481
Aliansce Shopping Centers SA	985,000		3,617,157
Alupar Investimento SA, NVS	1,571,024		5,795,870
Ambev SA	38,556,999		176,403,347
Arezzo Industria e Comercio SA	484,612		4,654,279
Atacadao Distribuicao Comercio e Industria Ltda	3,109,200		10,972,493
B2W Cia. Digital(a)	1,678,474		10,763,157
B3 SA - Brasil, Bolsa, Balcao	17,098,428		90,304,069
Banco ABC Brasil SA, NVS(a)	36,392		129,047
Banco Bradesco SA	8,558,324		52,158,811
Banco do Brasil SA	7,125,913		52,059,412
Banco Santander Brasil SA, NVS	3,404,863		28,593,544
BB Seguridade Participacoes SA	5,587,743		33,200,153
BR Malls Participacoes SA(a)	7,271,265		16,148,170
BR Properties SA	1,064,600		2,377,204
BRF SA(a)	4,429,658		21,642,440
CCR SA	10,467,187		23,779,246
Centrais Eletricas Brasileiras SA(a)	1,930,000		7,410,645
Cia. de Saneamento Basico do Estado de Sao Paulo	2,885,528		17,088,635
Cia. de Saneamento de Minas Gerais-COPASA	636,100		6,465,830
Cia. Siderurgica Nacional SA(a)	5,555,056		11,837,915
Cielo SA	10,308,018		37,778,469
Cosan SA	1,423,877		12,026,630
CVC Brasil Operadora e Agencia de Viagens SA	1,174,740		12,132,032
Cyrela Brazil Realty SA Empreendimentos e Participacoes	2,382,200		6,319,615
Duratex SA	2,911,908		6,827,269
EcoRodovias Infraestrutura e Logistica SA	2,299,200		3,962,117
EDP - Energias do Brasil SA	2,599,100		8,459,487
Embraer SA	5,645,783		26,857,927
Engie Brasil Energia SA	1,132,400		10,141,880
Equatorial Energia SA	1,622,576		22,447,715
Estacio Participacoes SA	2,381,524		13,028,701
Ez Tec Empreendimentos e Participacoes SA	643,823		2,508,036
Fibria Celulose SA	2,096,900		40,298,183
Fleury SA	1,510,114		9,419,657
Gafisa SA(a)	1		3
Hypera SA	2,572,500		17,107,959
Iguatemi Empresa de Shopping Centers SA	787,300		5,854,924
Instituto Hermes Pardini SA	514,574		1,843,429
Iochpe Maxion SA	905,328		4,944,026
IRB Brasil Resseguros S/A	751,915		10,847,753
JBS SA	7,796,061		17,786,698
Klabin SA, NVS	5,727,624		29,680,050
Kroton Educacional SA	11,787,415		29,238,946
Light SA	1,057,600		3,562,896
Linx SA	1,065,000		4,446,009
Localiza Rent a Car SA	4,424,284		23,119,544
Lojas Renner SA	6,120,960		42,013,725
M. Dias Branco SA	937,804		9,630,467
Magazine Luiza SA	659,121		20,836,997
Magnesita Refratarios SA	452,192		7,792,440
Marfrig Global Foods SA(a)	2,173,713		3,017,800
Minerva SA(a)	1,375,200		1,942,590
MRV Engenharia e Participacoes SA	2,676,592		8,445,352
Multiplan Empreendimentos Imobiliarios SA	2,121,533		9,593,010
Multiplus SA	522,800		3,087,237

Security	Shares		Value
Brazil (continued)
Natura Cosmeticos SA	1,679,517	$	11,821,556
Odontoprev SA	2,451,100		7,793,357
Petrobras Distribuidora SA	2,958,312		14,202,425
Petroleo Brasileiro SA	24,989,279		133,919,876
Porto Seguro SA	998,898		13,305,386
Qualicorp Consultoria e Corretora de Seguros SA	2,114,500		8,088,279
Raia Drogasil SA	1,927,657		36,025,725
Rumo SA(a)	9,673,281		33,409,575
Sao Martinho SA	1,628,511		7,490,178
SLC Agricola SA	691,589		11,078,584
Smiles Fidelidade SA	586,900		7,394,476
Sonae Sierra Brasil SA	420,043		2,160,314
Sul America SA, NVS	1,744,132		9,723,723
Suzano Papel e Celulose SA	3,715,254		42,661,262
TIM Participacoes SA	7,289,800		21,745,016
TOTVS SA	851,500		5,505,682
Transmissora Alianca de Energia Eletrica SA, NVS	1,589,400		7,753,923
Ultrapar Participacoes SA	3,024,580		30,223,043
Vale SA	26,284,183		342,068,856
Via Varejo SA	1,284,235		5,267,729
WEG SA	7,014,159		32,584,404
			1,829,747,847
Chile — 1.0%
AES Gener SA	26,383,241		6,676,869
Aguas Andinas SA, Class A	21,628,324		11,643,531
Banco de Chile	219,415,857		31,743,277
Banco de Credito e Inversiones SA	375,457		24,038,438
Banco Santander Chile	545,906,649		41,935,547
CAP SA	698,484		6,311,459
Cencosud SA	11,465,520		27,279,899
Cia. Cervecerias Unidas SA	1,283,052		16,968,503
Cia. Sud Americana de Vapores SA(a)	156,690,323		4,678,358
Colbun SA	70,835,502		14,980,185
Empresa Nacional de Telecomunicaciones SA	1,262,218		10,380,067
Empresas CMPC SA	10,285,641		40,686,082
Empresas COPEC SA	3,336,513		51,128,135
Enel Americas SA	244,019,669		36,389,324
Enel Chile SA	252,729,178		24,795,016
Engie Energia Chile SA	4,484,040		8,237,847
Inversiones Aguas Metropolitanas SA	4,281,457		6,197,026
Inversiones La Construccion SA	480,374		7,693,350
Itau CorpBanca	1,244,823,925		11,805,385
Latam Airlines Group SA	2,560,584		24,078,117
Parque Arauco SA	5,553,471		13,940,483
SACI Falabella	5,716,660		45,623,705
Salfacorp SA	5,498,494		8,457,413
SONDA SA	3,958,723		5,219,753
Vina Concha y Toro SA	4,119,713		8,070,258
			488,958,027
China — 29.0%
21Vianet Group Inc., ADR(a)(b)	706,963		6,892,889
361 Degrees International Ltd.	9,696,000		2,779,498
3SBio Inc.(b)(c)	10,910,500		20,823,210
51job Inc., ADR(a)(b)	241,618		18,679,488
58.com Inc., ADR(a)(b)	779,878		59,333,118
AAC Technologies Holdings Inc.(b)	6,074,000		67,326,377
Agile Group Holdings Ltd.	13,726,500		22,420,177
Agricultural Bank of China Ltd., Class A	15,057,973		8,000,533
Agricultural Bank of China Ltd., Class H	236,407,000		114,455,096

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 15

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
AGTech Holdings Ltd.(a)(b)	29,952,000	$	2,442,289
Air China Ltd., Class H	15,690,000		14,712,686
Ajisen China Holdings Ltd.(b)	10,087,000		4,240,989
Alibaba Group Holding Ltd., ADR(a)(b)	9,569,770		1,674,805,447
Alibaba Health Information Technology Ltd.(a)(b)	30,604,000		30,959,212
Alibaba Pictures Group Ltd.(a)(b)	140,960,000		17,061,244
Aluminum Corp. of China Ltd., Class H(a)	34,838,000		14,736,098
Anhui Conch Cement Co. Ltd., Class H	10,606,000		64,590,809
ANTA Sports Products Ltd.	9,252,000		50,392,157
APT Satellite Holdings Ltd.	7,461,500		3,118,108
Asia Cement China Holdings Corp.	7,207,000		7,694,665
Autohome Inc., ADR	499,508		41,264,356
AviChina Industry & Technology Co. Ltd., Class H	19,693,000		11,416,014
BAIC Motor Corp. Ltd., Class H(c)	14,467,500		12,165,463
Baidu Inc., ADR(a)	2,292,769		519,266,323
Bank of Beijing Co. Ltd., Class A	10,826,300		9,238,350
Bank of China Ltd., Class H	657,625,000		295,763,260
Bank of Communications Co. Ltd., Class A	10,786,700		8,873,005
Bank of Communications Co. Ltd., Class H	66,389,000		47,959,030
Baoshan Iron & Steel Co. Ltd., Class A	3,275,967		3,778,431
Baozun Inc., ADR(a)(b)	315,122		16,824,364
Beijing Capital International Airport Co. Ltd., Class H	13,986,000		14,896,732
Beijing Capital Land Ltd., Class H	10,958,000		4,383,814
Beijing Enterprises Holdings Ltd.	4,171,500		20,010,062
Beijing Enterprises Medical & Health Group Ltd.(a)	89,742,000		3,944,628
Beijing Enterprises Water Group Ltd.(b)	50,268,000		27,411,107
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.	4,045,000		7,926,219
Bitauto Holdings Ltd., ADR(a)(b)	251,069		5,952,846
BOC Aviation Ltd.(c)	1,667,000		12,212,221
BOE Technology Group Co. Ltd., Class A	11,060,300		5,520,356
Bosideng International Holdings Ltd.	47,500,000		5,991,285
Brilliance China Automotive Holdings Ltd.(b)	25,546,000		40,488,761
BYD Co. Ltd., Class H(b)	5,537,500		32,912,176
BYD Electronic International Co. Ltd.(b)	6,298,000		6,619,845
C C Land Holdings Ltd.(b)	25,645,500		6,273,409
CGN Power Co. Ltd., Class H(c)	96,868,000		22,955,380
Chaowei Power Holdings Ltd.(b)	8,478,000		4,093,774
China Aerospace International Holdings Ltd.(b)	44,450,000		3,681,089
China Agri-Industries Holdings Ltd.	22,139,200		8,800,508
China Aircraft Leasing Group Holdings Ltd.	4,512,000		4,828,804
China Animal Healthcare Ltd.(a)(b)(d)	1,237,000		9,456
China Aoyuan Property Group Ltd.(b)	15,436,000		11,524,540
China BlueChemical Ltd., Class H	19,366,000		6,760,545
China Cinda Asset Management Co. Ltd., Class H	76,209,000		19,710,312
China CITIC Bank Corp. Ltd., Class H	73,954,000		46,168,839
China Communications Construction Co. Ltd., Class H	37,867,000		37,582,837
China Communications Services Corp. Ltd., Class H	22,322,000		18,485,775
China Conch Venture Holdings Ltd.	14,522,500		49,957,000
China Construction Bank Corp., Class H	795,442,000		704,343,526
China Datang Corp. Renewable Power Co. Ltd., Class H	32,588,000		4,982,303
China Dongxiang Group Co. Ltd.	40,121,000		6,645,173
China Everbright Bank Co. Ltd., Class A	13,871,809		7,573,345
China Everbright Bank Co. Ltd., Class H	18,419,000		7,697,170
China Everbright International Ltd.(b)	21,460,000		18,072,673
China Everbright Ltd.	8,230,000		14,407,140
China Everbright Water Ltd.	11,171,400		3,180,064

Security	Shares		Value
China (continued)
China Evergrande Group(a)(b)	24,310,000	$	87,187,568
China Fiber Optic Network System Group Ltd.(a)(d)	10,394,800		556,233
China First Capital Group Ltd.(a)	30,622,000		16,386,041
China Foods Ltd.(b)	10,386,000		5,160,647
China Galaxy Securities Co. Ltd., Class H	30,092,000		14,722,226
China Gas Holdings Ltd.	14,826,600		47,130,639
China Huarong Asset Management Co. Ltd., Class H(c)	85,814,000		17,821,200
China Huishan Dairy Holdings Co. Ltd.(a)(d)	16,599,187		317,226
China Huiyuan Juice Group Ltd.(a)(b)(d)	10,877,000		2,244,995
China International Capital Corp. Ltd., Class H(b)(c)	8,625,600		15,781,016
China International Travel Service Corp. Ltd., Class A	679,095		6,297,838
China Investment Fund International Holdings Co. Ltd.(a)	6,000,000		10,090,586
China Jinmao Holdings Group Ltd.(b)	44,062,000		20,770,987
China Life Insurance Co. Ltd., Class H	61,474,000		138,942,879
China Lilang Ltd.	6,397,000		7,090,662
China Literature Ltd.(a)(b)(c)	2,199,400		15,468,012
China Logistics Property Holdings Co. Ltd.(a)(c)	10,594,000		3,981,743
China Longyuan Power Group Corp. Ltd., Class H	27,139,000		22,855,278
China Lumena New Materials Corp.(a)(b)(d)	2,584,000		3
China Maple Leaf Educational Systems Ltd.(b)	18,266,000		9,983,710
China Medical System Holdings Ltd.	11,459,000		18,979,347
China Mengniu Dairy Co. Ltd.	23,338,000		67,347,743
China Merchants Bank Co. Ltd., Class A	3,130,092		12,960,920
China Merchants Bank Co. Ltd., Class H	32,227,964		123,592,060
China Merchants Land Ltd.	23,760,000		3,602,339
China Merchants Port Holdings Co. Ltd.	11,498,270		23,468,548
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A	1,768,018		4,658,059
China Metal Recycling Holdings Ltd.(a)(d)	62,400		—
China Minsheng Banking Corp. Ltd., Class H	50,970,220		36,495,896
China Mobile Ltd.	50,774,500		477,411,879
China Molybdenum Co. Ltd., Class H(b)	33,939,000		13,923,426
China National Building Material Co. Ltd., Class H	33,208,850		31,055,684
China Oil & Gas Group Ltd.	66,888,000		5,198,395
China Oilfield Services Ltd., Class H	15,952,000		14,145,411
China Overseas Grand Oceans Group Ltd.	14,504,500		5,118,866
China Overseas Land & Investment Ltd.	31,554,000		99,901,502
China Pacific Insurance Group Co. Ltd., Class A	1,410,745		6,764,539
China Pacific Insurance Group Co. Ltd., Class H	21,140,000		78,781,103
China Petroleum & Chemical Corp., Class A	6,941,665		6,949,692
China Petroleum & Chemical Corp., Class H	208,782,200		209,875,468
China Power Clean Energy Development Co. Ltd.(b)	5,824,500		2,248,498
China Power International Development Ltd.(b)	41,372,000		9,013,508
China Railway Construction Corp. Ltd., Class H	17,268,000		20,878,508
China Railway Group Ltd., Class H	32,815,000		28,346,099
China Reinsurance Group Corp., Class H	28,006,000		5,530,622
China Resources Beer Holdings Co. Ltd.	12,804,000		54,485,801
China Resources Cement Holdings Ltd.	20,384,000		23,788,995
China Resources Gas Group Ltd.	7,442,000		33,896,661
China Resources Land Ltd.	23,063,777		80,367,224
China Resources Pharmaceutical Group Ltd.(c)	16,544,000		26,474,110
China Resources Phoenix Healthcare Holdings Co. Ltd.(b)	8,203,000		7,597,983
China Resources Power Holdings Co. Ltd.	15,906,000		28,655,078
China SCE Group Holdings Ltd.	17,909,200		8,031,748
China Shenhua Energy Co. Ltd., Class H	27,945,000		62,306,502
China Shineway Pharmaceutical Group Ltd.	3,937,000		5,557,716

16 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
China Singyes Solar Technologies Holdings Ltd.(b)	9,038,000	$	2,855,717
China Southern Airlines Co. Ltd., Class H	16,148,000		10,677,690
China State Construction Engineering Corp. Ltd., Class A	8,437,741		6,669,077
China State Construction International Holdings Ltd.(b)	17,754,000		18,480,320
China Suntien Green Energy Corp. Ltd., Class H	21,794,000		6,553,000
China Taiping Insurance Holdings Co. Ltd.	13,959,508		44,285,409
China Telecom Corp. Ltd., Class H	114,558,000		53,857,104
China Tower Corp. Ltd., Class H(a)(c)	345,114,000		52,763,674
China Traditional Chinese Medicine Holdings Co. Ltd.(b)	20,056,000		14,616,102
China Travel International Investment Hong Kong Ltd.	25,264,000		8,207,927
China Unicom Hong Kong Ltd.	50,412,000		58,640,263
China Vanke Co. Ltd., Class A	1,755,688		6,180,281
China Vanke Co. Ltd., Class H	10,127,887		35,097,724
China Water Affairs Group Ltd.	9,862,000		11,295,771
China Yangtze Power Co. Ltd., Class A	3,432,284		7,947,590
China Youzan Ltd.(a)(b)	120,028,000		11,775,097
China Yuhua Education Corp. Ltd., Class L(b)(c)	11,218,000		5,702,687
China ZhengTong Auto Services Holdings Ltd.(b)	9,778,500		5,992,507
Chinasoft International Ltd.(b)	19,370,000		13,820,026
Chong Sing Holdings FinTech Group Ltd.(a)(b)	158,712,000		11,121,507
Chongqing Rural Commercial Bank Co. Ltd., Class H	20,395,000		10,991,457
CIFI Holdings Group Co. Ltd.	29,932,000		17,351,552
CIMC Enric Holdings Ltd.	6,676,000		6,192,114
CITIC Ltd.	47,565,000		67,630,547
CITIC Resources Holdings Ltd.	35,160,000		3,583,687
CITIC Securities Co. Ltd., Class A	4,217,545		9,864,664
CITIC Securities Co. Ltd., Class H	16,928,500		30,324,595
CNOOC Ltd.	148,973,000		263,443,953
Colour Life Services Group Co. Ltd.(b)	5,954,000		4,050,805
Comba Telecom Systems Holdings Ltd.(a)(b)	24,027,524		3,826,575
Concord New Energy Group Ltd.(b)	109,320,000		4,596,262
Coolpad Group Ltd.(a)(b)(d)	22,836,000		145,473
COSCO SHIPPING Holdings Co. Ltd., Class H(a)(b)	20,028,000		8,344,043
COSCO SHIPPING International Hong Kong Co. Ltd.(b)	10,342,000		3,649,854
COSCO SHIPPING Ports Ltd.(b)	15,910,000		16,844,666
Country Garden Holdings Co. Ltd.(b)	63,501,733		94,497,349
Country Garden Services Holdings Co. Ltd.(a)	2,932,000		5,020,586
CPMC Holdings Ltd.(b)	5,509,000		2,344,285
CRRC Corp. Ltd., Class A	5,942,308		7,123,359
CRRC Corp. Ltd., Class H	33,759,750		27,957,851
CSPC Pharmaceutical Group Ltd.	39,314,000		99,175,324
CT Environmental Group Ltd.(b)	29,934,000		3,890,058
Ctrip.com International Ltd., ADR(a)(b)	3,386,095		132,565,619
Dah Chong Hong Holdings Ltd.(b)	11,506,000		4,998,848
Dali Foods Group Co. Ltd.(c)	14,839,500		10,776,688
Daqin Railway Co. Ltd., Class A	3,945,646		4,983,962
Dawnrays Pharmaceutical Holdings Ltd.	14,173,000		3,882,321
Digital China Holdings Ltd.(a)(b)	8,968,000		4,684,580
Dongfeng Motor Group Co. Ltd., Class H	23,124,000		25,837,694
Eastern Communications Co. Ltd., Class B	4,253,949		2,203,546
ENN Energy Holdings Ltd.	6,493,000		59,148,352
Fang Holdings Ltd., ADR(a)(b)	2,114,493		6,491,494
Fanhua Inc., ADR(b)	244,085		5,682,299
Fantasia Holdings Group Co. Ltd.(b)	34,264,500		4,627,447

Security	Shares		Value
China (continued)
Far East Horizon Ltd.	19,172,000	$	18,148,780
First Tractor Co. Ltd., Class H(a)	8,030,000		2,281,453
Focus Media Information Technology Co. Ltd., Class A	3,890,197		4,891,145
Foshan Haitian Flavouring & Food Co. Ltd., Class A	648,227		6,499,253
Fosun International Ltd.	22,127,500		40,032,425
Fu Shou Yuan International Group Ltd.(b)	11,176,000		10,009,973
Fufeng Group Ltd.	15,901,400		7,536,497
Fullshare Holdings Ltd.(b)	56,265,000		22,509,154
Future Land Development Holdings Ltd.	15,754,000		12,183,463
Fuyao Glass Industry Group Co. Ltd., Class H(c)	4,542,400		16,754,256
GCL New Energy Holdings Ltd.(a)(b)	96,410,000		3,623,559
GCL-Poly Energy Holdings Ltd.(a)(b)	122,241,000		8,254,371
GDS Holdings Ltd., ADR(a)(b)	556,661		21,247,750
Geely Automobile Holdings Ltd.	41,125,000		87,396,323
Genertec Universal Medical Group Co. Ltd.(b)(c)	7,406,000		5,887,887
Genscript Biotech Corp.(a)(b)	6,824,000		14,693,218
GF Securities Co. Ltd., Class H	11,189,000		14,041,668
Glorious Property Holdings Ltd.(a)	34,270,000		1,899,304
GOME Retail Holdings Ltd.(a)(b)	112,721,000		10,914,645
Great Wall Motor Co. Ltd., Class H(b)	26,895,000		16,550,453
Greatview Aseptic Packaging Co. Ltd.	13,867,000		7,420,326
Gree Electric Appliances Inc. of Zhuhai, Class A(a)	868,060		4,948,835
Greentown China Holdings Ltd.(b)	7,595,000		7,644,447
Guangdong Investment Ltd.	24,572,000		43,578,366
Guangdong Land Holdings Ltd.(a)	10,602,000		2,647,495
Guangzhou Automobile Group Co. Ltd., Class H	25,307,200		27,471,027
Guangzhou R&F Properties Co. Ltd., Class H	8,363,200		16,877,918
Guotai Junan Securities Co. Ltd., Class A	5,234,456		11,201,204
Guotai Junan Securities Co. Ltd., Class H(b)(c)	3,107,200		6,413,209
Haier Electronics Group Co. Ltd.	11,123,000		28,980,539
Haitian International Holdings Ltd.	6,018,000		12,083,691
Haitong Securities Co. Ltd., Class H	27,321,600		24,157,768
Hanergy Thin Film Power Group Ltd.(a)(d)	8,046		—
Hangzhou Hikvision Digital Technology Co. Ltd., Class A	2,154,383		9,917,206
Hangzhou Steam Turbine Co. Ltd., Class B	3,465,074		2,979,940
HC Group Inc.(b)	6,166,000		4,328,589
Hengan International Group Co. Ltd.	5,986,500		53,886,051
HengTen Networks Group Ltd.(a)(b)	205,568,000		8,642,923
Hi Sun Technology China Ltd.(a)	33,429,000		4,983,110
Hua Han Health Industry Holdings Ltd., Class H(a)(b)(d)	22,424,288		1,028,519
Hua Hong Semiconductor Ltd.(b)(c)	3,798,000		10,355,235
Huabao International Holdings Ltd.	10,585,000		6,230,516
Huaneng Power International Inc., Class H	35,712,000		22,931,682
Huaneng Renewables Corp. Ltd., Class H	42,588,000		13,619,218
Huangshi Dongbei Electrical Appliance Co. Ltd., Class B	1,974,103		2,345,234
Huatai Securities Co. Ltd., Class H(c)	13,661,800		20,469,463
Huaxia Bank Co. Ltd., Class A	7,000,019		7,940,479
Huazhu Group Ltd., ADR(b)	1,102,593		37,951,251
IGG Inc.	14,900,000		17,996,407
iKang Healthcare Group Inc., ADR(a)(b)	545,679		10,722,592
Industrial & Commercial Bank of China Ltd., Class H	575,116,000		423,520,554
Industrial Bank Co. Ltd., Class A	4,526,520		9,991,060
Inner Mongolia Yili Industrial Group Co. Ltd., Class A	1,444,098		5,115,143
Inner Mongolia Yitai Coal Co. Ltd., Class B	11,000,803		13,233,966

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 17

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
JD.com Inc., ADR(a)(b)	5,987,905	$	187,421,427
Jiangsu Expressway Co. Ltd., Class H	11,208,000		14,165,470
Jiangsu Hengrui Medicine Co. Ltd., Class A	793,789		7,685,652
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A	304,577		5,141,445
Jiangxi Copper Co. Ltd., Class H	11,227,000		13,302,641
Jiayuan International Group Ltd.(b)	11,504,000		22,981,911
JinkoSolar Holding Co. Ltd., ADR(a)(b)	309,772		4,067,306
Jumei International Holding Ltd., ADR(a)(b)	1,149,071		2,194,726
Kaisa Group Holdings Ltd.	19,552,000		7,273,865
Kama Co. Ltd., Class B(a)	3,599,700		2,102,225
Kangmei Pharmaceutical Co. Ltd., Class A	1,977,975		6,030,535
Kingboard Holdings Ltd.(b)	6,138,200		21,819,080
Kingboard Laminates Holdings Ltd.	9,605,500		9,068,373
Kingdee International Software Group Co. Ltd.	19,276,000		21,955,617
Kingsoft Corp. Ltd.(b)	7,058,000		12,823,081
Konka Group Co. Ltd., Class B	9,295,218		3,197,529
Kunlun Energy Co. Ltd.	28,582,000		29,860,541
Kweichow Moutai Co. Ltd., Class A	189,656		18,298,816
KWG Property Holdings Ltd.	11,109,500		11,875,384
Launch Tech Co. Ltd., Class H	2,615,000		2,888,564
Lee & Man Paper Manufacturing Ltd.	14,371,000		13,768,798
Lee’s Pharmaceutical Holdings Ltd.(b)	3,003,000		2,689,688
Legend Holdings Corp., Class H(c)	193,400		598,762
Lenovo Group Ltd.(b)	62,524,000		40,785,700
Li Ning Co. Ltd.(a)	15,279,500		16,118,725
Lianhua Supermarket Holdings Co. Ltd., Class H(a)(b)	6,703,000		1,708,010
Lifetech Scientific Corp.(a)(b)	26,210,000		6,411,497
Logan Property Holdings Co. Ltd.	12,398,000		15,479,927
Longfor Group Holdings Ltd.	12,794,000		35,534,814
Lonking Holdings Ltd.	20,494,000		7,049,880
Luthai Textile Co. Ltd., Class B	3,300,521		3,881,284
Luye Pharma Group Ltd.(b)(c)	11,144,000		10,492,446
Meitu Inc.(a)(c)	27,062,500		14,653,725
Midea Group Co. Ltd., Class A	1,334,104		8,123,231
MMG Ltd.(a)(b)	21,475,999		10,753,185
Momo Inc., ADR(a)(b)	1,196,731		55,396,678
NetDragon Websoft Holdings Ltd.(b)	2,178,500		4,563,001
NetEase Inc., ADR(b)	653,963		129,295,025
New China Life Insurance Co. Ltd., Class H	7,040,200		31,887,157
New Oriental Education & Technology Group Inc., ADR	1,180,992		92,825,971
Nexteer Automotive Group Ltd.	7,797,000		13,132,584
Nine Dragons Paper Holdings Ltd.	14,443,000		16,377,161
Noah Holdings Ltd., ADR(a)(b)	277,771		13,066,348
North Mining Shares Co. Ltd.(a)(b)	177,080,000		1,105,495
Panda Green Energy Group Ltd.(a)(b)	66,194,852		3,331,291
Parkson Retail Group Ltd.(a)(b)	27,294,000		2,955,815
PAX Global Technology Ltd.(b)	10,151,000		5,018,013
People’s Insurance Co. Group of China Ltd. (The), Class H	57,551,000		24,930,041
PetroChina Co. Ltd., Class H	173,778,000		129,300,096
Phoenix New Media Ltd., ADR(a)(b)	425,352		2,177,802
PICC Property & Casualty Co. Ltd., Class H	57,287,040		64,520,816
Ping An Bank Co. Ltd., Class A	4,215,791		6,250,781
Ping An Insurance Group Co. of China Ltd., Class A	1,853,512		17,086,135
Ping An Insurance Group Co. of China Ltd., Class H	42,729,500		411,567,251
Poly Property Group Co. Ltd.	19,665,000		7,491,285
Poly Real Estate Group Co. Ltd., Class A	2,438,661		4,383,243

Security	Shares		Value
China (continued)
Postal Savings Bank of China Co. Ltd., Class H(c)	22,890,000	$	13,473,455
Pou Sheng International Holdings Ltd.(b)	21,810,000		4,251,462
Qingdao Haier Co. Ltd., Class A	2,074,801		4,521,858
Road King Infrastructure Ltd.	4,360,000		7,399,151
Ronshine China Holdings Ltd.(a)(b)	4,372,500		5,247,735
SAIC Motor Corp. Ltd., Class A	1,574,156		6,716,331
Sany Heavy Equipment International Holdings Co. Ltd.	15,484,000		5,484,274
Semiconductor Manufacturing International Corp.(a)(b)	25,407,700		29,975,576
Shandong Airlines Co. Ltd., Class B	1,856,724		2,956,981
Shandong Weigao Group Medical Polymer Co. Ltd., Class H	16,088,000		15,229,375
Shang Gong Group Co. Ltd., Class B(a)	4,520,500		3,064,899
Shanghai Chlor-Alkali Chemical Co. Ltd., Class B	5,588,147		3,559,650
Shanghai Electric Group Co. Ltd., Class H	29,136,000		9,131,797
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H	4,662,500		18,830,823
Shanghai Haixin Group Co., Class B	5,502,800		2,723,886
Shanghai Industrial Holdings Ltd.	4,118,000		9,811,133
Shanghai Industrial Urban Development Group Ltd.	23,458,000		4,124,405
Shanghai Jinjiang International Industrial Investment Co. Ltd., Class B	2,122,042		2,147,507
Shanghai Jinjiang International Travel Co. Ltd., Class B	1,118,300		2,265,676
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B	8,348,687		11,262,379
Shanghai Pharmaceuticals Holding Co. Ltd., Class H	7,497,400		19,677,463
Shanghai Pudong Development Bank Co. Ltd., Class A	6,031,418		9,119,385
Shenzhen International Holdings Ltd.	9,016,750		16,910,212
Shenzhen Investment Ltd.(b)	30,136,000		9,867,564
Shenzhou International Group Holdings Ltd.	6,356,000		83,408,885
Shimao Property Holdings Ltd.	10,193,500		30,389,978
Shougang Concord International Enterprises Co. Ltd.(a)(b)	233,160,000		5,762,978
Shougang Fushan Resources Group Ltd.	26,370,000		5,879,486
Shui On Land Ltd.	36,155,166		8,613,966
Sihuan Pharmaceutical Holdings Group Ltd.	35,671,000		7,907,801
SINA Corp./China(a)(b)	546,199		38,758,281
Sino Biopharmaceutical Ltd.	58,007,000		73,461,196
Sinofert Holdings Ltd.(a)(b)	33,544,000		3,846,348
Sinolink Worldwide Holdings Ltd.(a)	29,876,000		2,702,539
Sino-Ocean Group Holding Ltd.	26,911,500		13,680,501
Sinopec Engineering Group Co. Ltd., Class H	8,017,000		8,355,191
Sinopec Kantons Holdings Ltd.(b)	11,614,000		5,178,942
Sinopec Shanghai Petrochemical Co. Ltd., Class H	30,369,000		17,837,033
Sinopharm Group Co. Ltd., Class H	9,940,800		49,457,662
Sinosoft Technology Group Ltd.(b)	8,234,600		2,759,240
Sinotrans Ltd., Class H	20,542,000		8,610,529
Sinotrans Shipping Ltd.(b)	19,731,000		4,952,295
Sinotruk Hong Kong Ltd.(b)	5,948,500		8,882,317
Skyfame Realty Holdings Ltd.	14,326,000		9,874,461
Skyworth Digital Holdings Ltd.	19,324,000		6,253,483
SMI Holdings Group Ltd.(a)(b)	15,427,999		4,599,564
SOHO China Ltd.(b)	19,101,500		7,666,007
Sohu.com Ltd., ADR(a)	292,585		6,246,690
SSY Group Ltd.	18,796,411		17,481,915
Sun Art Retail Group Ltd.	20,122,500		23,201,802

18 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
Sunac China Holdings Ltd.(b)	20,258,000	$	66,331,664
Suning.com Co. Ltd., Class A	3,932,572		7,125,956
Sunny Optical Technology Group Co. Ltd.	5,982,200		76,026,507
Superb Summit International Group Ltd.(a)(b)(d)	6,035,000		8,919
TAL Education Group, Class A, ADR(a)	2,940,212		87,030,275
Tarena International Inc., ADR(b)	419,585		3,566,473
TCL Electronics Holdings Ltd.	8,134,000		3,948,393
Tencent Holdings Ltd.	47,267,600		2,047,546,026
Tian Ge Interactive Holdings Ltd.(b)(c)	6,025,000		3,999,318
Tianjin Development Holdings Ltd.	9,118,000		3,426,990
Tianjin Port Development Holdings Ltd.	37,454,000		4,390,129
Tianneng Power International Ltd.	7,010,000		8,707,908
Tibet Water Resources Ltd.(a)(b)	22,242,000		6,716,042
Tingyi Cayman Islands Holding Corp.	16,724,000		29,873,037
Tong Ren Tang Technologies Co. Ltd., Class H	5,481,000		7,946,818
Tongada Hong Tai Holdings Ltd.(a)	4,500		785
Tongda Group Holdings Ltd.	32,680,000		4,913,096
Towngas China Co. Ltd.	11,356,000		10,460,559
TravelSky Technology Ltd., Class H	7,967,000		20,402,439
Tsingtao Brewery Co. Ltd., Class H(b)	3,176,000		15,093,172
Tuniu Corp., ADR(a)(b)	370,318		2,773,682
Uni-President China Holdings Ltd.	10,037,000		9,884,953
Vinda International Holdings Ltd.	2,616,000		4,379,498
Vipshop Holdings Ltd., ADR(a)(b)	3,636,735		25,384,410
Viva China Holdings Ltd.(a)(b)	30,984,000		3,552,804
Want Want China Holdings Ltd.(b)	43,269,000		35,336,708
Wasion Holdings Ltd.	5,706,000		2,878,844
Weibo Corp., ADR(a)(b)	452,367		34,714,644
Weichai Power Co. Ltd., Class H	17,495,000		18,545,070
West China Cement Ltd.	32,212,000		5,950,821
Wuliangye Yibin Co. Ltd., Class A	771,974		6,994,217
Wuxi Biologics Cayman Inc.(a)(b)(c)	4,965,500		49,029,323
Xiamen International Port Co. Ltd., Class H	21,522,000		3,016,244
Xingda International Holdings Ltd.	12,318,000		3,578,214
Xinyi Solar Holdings Ltd.	27,532,800		8,208,380
Xtep International Holdings Ltd.	11,070,000		7,390,437
Xunlei Ltd., ADR(a)	289,797		2,758,867
Yanzhou Coal Mining Co. Ltd., Class H	16,182,000		18,699,530
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H(c)	2,397,400		10,950,170
Yuexiu Property Co. Ltd.	64,084,880		11,594,049
Yuexiu REIT	17,006,000		11,548,367
Yuexiu Transport Infrastructure Ltd.(b)	10,460,000		8,129,292
Yum China Holdings Inc.	3,051,929		118,048,614
Yunnan Baiyao Group Co. Ltd., Class A	358,194		4,173,277
Yuzhou Properties Co. Ltd.	16,192,400		8,602,773
YY Inc., ADR(a)(b)	407,329		31,132,155
Zhaojin Mining Industry Co. Ltd., Class H(b)	11,636,500		9,073,294
Zhejiang Expressway Co. Ltd., Class H	13,842,000		10,986,974
Zhongsheng Group Holdings Ltd.(b)	5,182,000		11,368,987
Zhuzhou CRRC Times Electric Co. Ltd., Class H	4,712,900		25,429,209
Zijin Mining Group Co. Ltd., Class H	53,652,000		20,028,330
ZTE Corp., Class H(a)(b)	6,237,840		12,111,848
			14,244,613,148
Colombia — 0.3%
Almacenes Exito SA	1,682,834		8,737,115
Bancolombia SA	1,615,775		17,349,156
Cementos Argos SA	4,010,476		11,842,028
Corp. Financiera Colombiana SA(a)	1,049,887		8,310,410
Ecopetrol SA	42,353,173		47,417,175

Security	Shares		Value
Colombia (continued)
Grupo Argos SA/Colombia	2,404,304	$	15,033,024
Grupo de Inversiones Suramericana SA	2,181,311		25,706,545
Interconexion Electrica SA ESP	3,474,651		15,378,412
			149,773,865
Czech Republic — 0.2%
CEZ AS	1,452,965		36,989,007
Komercni Banka AS	702,539		29,368,819
Moneta Money Bank AS(c)	5,510,250		19,359,826
			85,717,652
Egypt — 0.2%
Commercial International Bank Egypt SAE	8,527,857		41,931,420
Eastern Tobacco	692,888		4,030,253
Egyptian Financial Group-Hermes Holding Co.(a)	10,789,441		10,970,980
Ezz Steel(a)	3,611,807		5,359,978
Global Telecom Holding SAE(a)	35,123,136		8,450,827
Heliopolis Housing	1,968,156		3,217,709
Medinet Nasr Housing(a)	6,743,935		3,286,865
Oriental Weavers	1,615,252		1,019,158
Six of October Development & Investment(a)	4,125,350		5,453,421
Telecom Egypt Co.	4,995,587		3,897,286
			87,617,897
Greece — 0.3%
Alpha Bank AE(a)(b)	12,677,412		23,334,760
Athens Water Supply & Sewage Co. SA	331,736		2,103,562
Eurobank Ergasias SA(a)(b)	16,269,894		13,913,561
FF Group(a)(d)	343,633		1,727,209
Hellenic Exchanges-Athens Stock Exchange SA	796,553		4,147,381
Hellenic Telecommunications Organization SA	2,168,400		27,727,029
Holding Co. ADMIE IPTO SA	1,263,737		2,426,090
JUMBO SA	904,546		13,555,413
Motor Oil Hellas Corinth Refineries SA(b)	539,331		12,738,482
Mytilineos Holdings SA	989,768		9,938,262
National Bank of Greece SA(a)(b)(d)	51,363,149		14,629,494
OPAP SA	2,126,869		22,902,527
Piraeus Bank SA(a)(b)	2,506,668		6,999,618
Piraeus Port Authority SA	52,187		984,871
Public Power Corp. SA(a)(b)	1,348,446		2,629,504
Titan Cement Co. SA	405,828		9,349,178
			169,106,941
Hungary — 0.3%
Magyar Telekom Telecommunications PLC	3,691,510		5,433,465
MOL Hungarian Oil &Gas PLC	3,131,082		32,064,555
OTP Bank Nyrt	1,868,613		69,076,130
Richter Gedeon Nyrt	1,194,947		23,578,852
			130,153,002
India — 10.0%
Adani Enterprises Ltd.	2,224,156		7,063,550
Adani Ports & Special Economic Zone Ltd.	5,135,907		27,744,633
AIA Engineering Ltd.	431,813		10,707,617
Ajanta Pharma Ltd.(a)	283,464		5,078,682
Amara Raja Batteries Ltd.	512,322		6,110,194
Ambuja Cements Ltd.	5,966,314		20,302,355
Apollo Hospitals Enterprise Ltd.	832,513		13,882,210
Apollo Tyres Ltd.	2,656,872		9,417,354
Arvind Ltd.	1,393,069		7,841,706
Ashok Leyland Ltd.	10,591,065		19,270,396
Asian Paints Ltd.	2,487,256		48,129,353
Aurobindo Pharma Ltd.	2,311,215		23,225,794
Avanti Feeds Ltd.	408,689		2,431,347

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 19

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
India (continued)
Avenue Supermarts Ltd.(a)(c)	1,047,197	$	23,689,785
Axis Bank Ltd.(a)	15,203,620		139,172,031
Bajaj Auto Ltd.	729,997		28,250,926
Bajaj Finance Ltd.	1,536,658		61,889,882
Bajaj Finserv Ltd.	365,643		34,786,639
Balkrishna Industries Ltd.	838,485		16,079,004
Bata India Ltd.	725,198		11,067,190
Bayer CropScience Ltd./India	127,381		7,908,438
BEML Ltd.	325,606		3,858,082
Bharat Forge Ltd.	1,941,949		18,592,277
Bharat Heavy Electricals Ltd.	10,484,428		11,914,417
Bharat Petroleum Corp. Ltd.	6,390,860		32,627,277
Bharti Airtel Ltd.	11,734,274		63,505,417
Bharti Infratel Ltd.	3,233,945		13,081,459
Blue Dart Express Ltd.	88,047		4,307,430
Bosch Ltd.	70,404		21,828,429
Britannia Industries Ltd.	232,919		22,123,221
Cadila Healthcare Ltd.	1,837,012		10,431,351
Canara Bank	1,641,236		6,564,828
Care Ratings Ltd.	310,211		5,669,206
Ceat Ltd.	270,766		5,292,681
Century Textiles & Industries Ltd.	459,910		6,342,658
CESC Ltd.	777,897		10,922,721
CG Power and Industrial Solutions Ltd.(a)	5,385,789		4,480,168
Cipla Ltd./India	2,827,783		26,399,486
Coal India Ltd.	5,943,009		23,960,148
Container Corp. of India Ltd.	1,223,091		11,240,857
CRISIL Ltd.	260,664		6,487,543
Crompton Greaves Consumer Electricals Ltd.	3,885,560		13,720,428
Dabur India Ltd.	5,259,979		35,504,696
DCB Bank Ltd.	2,544,354		6,410,547
Dewan Housing Finance Corp. Ltd.	1,437,353		13,530,234
Dish TV India Ltd.(a)	8,228,884		8,301,252
Dr. Reddy’s Laboratories Ltd.	951,198		33,420,425
Edelweiss Financial Services Ltd.	4,180,300		16,517,567
Eicher Motors Ltd.	112,746		44,604,425
Escorts Ltd.	601,546		7,376,601
Exide Industries Ltd.	2,742,264		11,022,992
Federal Bank Ltd.	14,523,075		16,606,283
Finolex Cables Ltd.	1,172,077		9,047,597
Fortis Healthcare Ltd.(a)	3,694,547		7,636,391
GAIL India Ltd.	6,509,545		34,160,168
Gateway Distriparks Ltd.	1,366,289		3,585,904
GE T&D India Ltd.	1,058,468		4,109,186
Glenmark Pharmaceuticals Ltd.	1,232,736		11,569,352
GMR Infrastructure Ltd.(a)	25,028,991		7,445,927
Godrej Consumer Products Ltd.	2,214,129		45,332,263
Godrej Industries Ltd.	1,014,993		9,253,911
Grasim Industries Ltd.	3,078,490		46,333,876
GRUH Finance Ltd.	2,460,833		11,636,924
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.	566,021		3,126,328
Gujarat Pipavav Port Ltd.	2,120,839		3,322,116
Havells India Ltd.	2,501,560		25,579,477
HCL Technologies Ltd.	4,516,472		66,636,289
Hero MotoCorp Ltd.	469,259		21,527,642
Hexaware Technologies Ltd.	1,264,335		7,822,071
Hindalco Industries Ltd.	10,492,908		35,202,587
Hindustan Petroleum Corp. Ltd.	5,234,539		18,731,090
Hindustan Unilever Ltd.	5,671,520		142,343,247

Security	Shares		Value
India (continued)
Housing Development Finance Corp. Ltd.	13,152,146	$	358,991,164
ICICI Bank Ltd.	20,197,744		97,562,568
Idea Cellular Ltd.(a)	17,541,859		12,205,506
IDFC Bank Ltd.	17,556,459		11,782,485
IDFC Ltd.	8,006,655		5,943,503
IFCI Ltd.(a)	12,186,007		2,972,354
IIFL Holdings Ltd.	778,608		7,953,902
India Cements Ltd. (The)	3,199,464		5,701,870
Indiabulls Housing Finance Ltd.	2,453,684		43,563,583
Indiabulls Real Estate Ltd.(a)	2,560,888		5,573,015
Indiabulls Ventures Ltd.	1,468,016		15,971,443
Indian Hotels Co. Ltd. (The)	4,921,603		9,523,837
Indian Oil Corp. Ltd.	11,840,321		25,967,282
Infibeam Avenues Ltd.	1,601,071		5,151,328
Info Edge India Ltd.	73,663		1,701,204
Infosys Ltd.	14,455,281		293,706,568
InterGlobe Aviation Ltd.(c)	776,078		10,163,516
IRB Infrastructure Developers Ltd.	1,989,012		5,336,656
ITC Ltd.	28,642,983		129,168,793
Jain Irrigation Systems Ltd.	4,029,005		4,842,674
Jaiprakash Associates Ltd.(a)	13,702,360		2,308,640
Jammu & Kashmir Bank Ltd. (The)(a)	3,155,999		2,460,679
Jindal Steel & Power Ltd.(a)	3,388,816		10,547,310
JSW Steel Ltd.	7,841,135		43,817,823
Jubilant Foodworks Ltd.	722,271		15,777,664
Jubilant Life Sciences Ltd.	710,414		7,233,725
Just Dial Ltd.(a)	398,675		3,139,036
Kajaria Ceramics Ltd.	830,334		5,488,830
Karur Vysya Bank Ltd. (The)	4,889,502		6,452,581
KPIT Technologies Ltd.	2,051,018		8,762,037
Larsen & Toubro Infotech Ltd.(c)	254,705		6,455,944
Larsen & Toubro Ltd.	4,072,837		78,644,422
LIC Housing Finance Ltd.	2,740,299		20,125,437
Lupin Ltd.	1,863,272		24,469,709
Mahanagar Gas Ltd.	249,717		3,048,131
Mahindra & Mahindra Financial Services Ltd.	2,805,544		19,348,716
Mahindra & Mahindra Ltd.	6,575,613		89,493,512
Manappuram Finance Ltd.	4,557,807		6,432,548
Marico Ltd.	4,303,441		22,416,331
Maruti Suzuki India Ltd.	904,646		116,022,233
Max Financial Services Ltd.(a)	1,296,059		8,187,367
Mindtree Ltd.	920,867		14,472,645
Motherson Sumi Systems Ltd.	5,947,497		25,500,204
Mphasis Ltd.	617,600		10,971,622
Natco Pharma Ltd.	694,444		7,634,099
National Aluminium Co. Ltd.	5,738,095		6,055,535
NCC Ltd./India	5,447,597		7,576,961
Nestle India Ltd.	218,906		35,747,329
NIIT Technologies Ltd.	424,231		8,413,891
NTPC Ltd.	15,842,794		38,307,949
Oil & Natural Gas Corp. Ltd.	11,718,654		29,748,417
Page Industries Ltd.	54,282		26,340,178
Persistent Systems Ltd.	526,217		6,140,141
Petronet LNG Ltd.	4,782,579		16,726,088
PI Industries Ltd.	699,895		7,614,092
Pidilite Industries Ltd.	879,202		14,486,589
Piramal Enterprises Ltd.	734,361		33,129,788
Power Finance Corp. Ltd.	7,611,003		9,056,853
Power Grid Corp. of India Ltd.	12,805,008		36,378,761
PTC India Ltd.	5,004,716		5,916,645

20 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
India (continued)
Rain Industries Ltd.	989,148	$      2,640,703
Rajesh Exports Ltd.	895,371	8,374,743
Rallis India Ltd.	1,548,379	4,569,193
Ramco Cements Ltd. (The)	927,688	9,016,432
Raymond Ltd.	439,502	5,225,288
RBL Bank Ltd.(c)	1,061,707	9,389,411
Redington India Ltd.	3,835,663	5,681,062
Reliance Capital Ltd.	1,029,514	6,854,113
Reliance Communications Ltd.(a)	9,835,455	2,530,756
Reliance Industries Ltd.	23,726,828	415,366,891
Reliance Infrastructure Ltd.	1,487,030	10,020,634
Rural Electrification Corp. Ltd.	7,154,828	12,085,066
Shree Cement Ltd.	85,097	22,707,091
Shriram Transport Finance Co. Ltd.	1,352,295	25,468,647
Siemens Ltd.	792,437	11,393,351
Sobha Ltd.	716,369	4,641,545
Solara Active Pharma Sciences Ltd.(a)	123,005	610,548
SRF Ltd.	195,227	5,566,727
State Bank of India(a)	14,841,106	64,782,875
Sterlite Technologies Ltd.	1,150,164	5,880,855
Sun Pharma Advanced Research Co. Ltd.(a)	1,145,643	6,477,998
Sun Pharmaceutical Industries Ltd.	6,974,691	64,199,461
Sundaram Finance Ltd.	421,914	9,469,624
Tata Communications Ltd.	819,075	6,236,062
Tata Consultancy Services Ltd.	7,628,921	223,555,445
Tata Elxsi Ltd.	292,134	5,914,039
Tata Global Beverages Ltd.	3,251,104	10,739,799
Tata Motors Ltd.(a)	13,735,963	51,805,504
Tata Power Co. Ltd. (The)	10,618,016	11,482,375
Tata Steel Ltd.	2,973,982	25,179,340
Tech Mahindra Ltd.	4,019,319	43,397,113
Thermax Ltd.	432,212	6,279,380
TI Financial Holdings Ltd.	918,752	7,598,596
Titan Co. Ltd.	2,685,146	33,765,802
Torrent Power Ltd.	1,519,659	5,647,868
TTK Prestige Ltd.	57,605	5,810,794
Tube Investments of India Ltd.	773,162	3,196,697
TV18 Broadcast Ltd.(a)	7,570,515	4,915,278
UltraTech Cement Ltd.	799,005	50,417,820
Union Bank of India(a)	3,589,376	4,541,992
United Spirits Ltd.(a)	2,578,499	22,912,518
UPL Ltd.	3,253,347	32,810,407
VA Tech Wabag Ltd.	562,080	3,077,616
Vakrangee Ltd.	4,495,938	2,459,490
Vedanta Ltd.	11,636,843	37,358,653
Vijaya Bank	4,533,973	4,088,015
Voltas Ltd.	1,181,873	10,244,663
Welspun India Ltd.	3,135,154	3,326,277
Wipro Ltd.	9,419,143	40,006,582
Wockhardt Ltd.(a)	525,347	4,917,472
Yes Bank Ltd.	14,096,008	68,267,796
Zee Entertainment Enterprises Ltd.	4,739,909	33,411,008
		4,926,047,666
Indonesia — 2.0%
Ace Hardware Indonesia Tbk PT	93,763,400	8,657,042
Adaro Energy Tbk PT	123,805,100	15,675,255
Adhi Karya Persero Tbk PT	26,067,000	2,636,784
AKR Corporindo Tbk PT	16,449,900	4,031,510
Alam Sutera Realty Tbk PT(a)	125,252,300	2,772,047
Aneka Tambang Tbk	84,619,443	4,997,890

Security	Shares		Value
Indonesia (continued)
Astra International Tbk PT	167,778,800	$	82,579,518
Bank Bukopin Tbk PT(a)	68,216,000		1,880,224
Bank Central Asia Tbk PT	81,886,300		137,866,955
Bank Danamon Indonesia Tbk PT	28,304,100		13,066,387
Bank Mandiri Persero Tbk PT	154,304,100		72,280,943
Bank Negara Indonesia Persero Tbk PT	62,913,100		33,314,473
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT	24,598,100		3,222,969
Bank Rakyat Indonesia Persero Tbk PT	453,823,700		97,974,159
Bank Tabungan Negara Persero Tbk PT	38,222,676		7,135,938
Bumi Resources Tbk PT(a)	377,349,900		6,148,267
Bumi Serpong Damai Tbk PT(a)	74,732,000		6,088,147
Charoen Pokphand Indonesia Tbk PT	66,990,600		22,648,553
Ciputra Development Tbk PT	121,404,727		6,964,494
Delta Dunia Makmur Tbk PT(a)	43,068,300		2,017,456
Eagle High Plantations Tbk PT(a)	155,612,300		2,324,148
Gudang Garam Tbk PT	4,114,900		20,392,919
Hanjaya Mandala Sampoerna Tbk PT	76,757,500		19,957,992
Hanson International Tbk PT(a)	668,046,200		6,440,092
Indah Kiat Pulp & Paper Corp. Tbk PT	22,195,900		28,780,834
Indika Energy Tbk PT	16,936,700		3,759,878
Indocement Tunggal Prakarsa Tbk PT	15,198,900		18,289,240
Indofood CBP Sukses Makmur Tbk PT	21,151,400		12,456,782
Indofood Sukses Makmur Tbk PT	36,380,300		15,745,038
Inti Agri Resources Tbk PT(a)	296,144,300		5,548,936
Jasa Marga Persero Tbk PT	23,292,680		7,163,329
Kalbe Farma Tbk PT	183,120,100		16,720,742
Kawasan Industri Jababeka Tbk PT(a)	82,989,588		1,194,419
Krakatau Steel Persero Tbk PT(a)	53,986,214		1,524,662
Link Net Tbk PT	13,036,000		3,805,485
Matahari Department Store Tbk PT	21,167,700		10,777,851
Medco Energi Internasional Tbk PT(a)	67,714,000		3,999,401
Media Nusantara Citra Tbk PT	57,843,100		3,553,836
Mitra Adiperkasa Tbk PT	108,119,100		6,128,951
Modernland Realty Tbk PT	131,089,800		2,260,476
Pakuwon Jati Tbk PT	212,112,200		7,416,007
Panin Financial Tbk PT(a)	219,545,300		3,040,546
Perusahaan Gas Negara Persero Tbk PT	94,678,500		13,755,057
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT	37,087,600		3,512,369
PP Persero Tbk PT	34,205,950		4,412,173
Ramayana Lestari Sentosa Tbk PT	41,017,400		3,536,463
Salim Ivomas Pratama Tbk PT	48,578,300		1,665,448
Semen Indonesia Persero Tbk PT	26,053,500		16,714,567
Siloam International Hospitals Tbk PT(a)	4,119,971		867,068
Sugih Energy Tbk PT(a)	82,105,800		278,703
Summarecon Agung Tbk PT	95,178,300		4,264,608
Surya Citra Media Tbk PT	58,336,300		8,316,784
Telekomunikasi Indonesia Persero Tbk PT	418,823,800		99,232,523
Timah Tbk PT	42,578,952		2,254,690
Tower Bersama Infrastructure Tbk PT	22,403,800		8,441,350
Unilever Indonesia Tbk PT	12,621,800		37,574,062
United Tractors Tbk PT	14,196,700		33,154,547
Waskita Karya Persero Tbk PT	50,853,500		6,542,253
Wijaya Karya Persero Tbk PT	34,219,423		3,600,822
			981,364,062
Malaysia — 2.6%
AEON Credit Service M Bhd	2,458,100		9,032,074
AirAsia Group Bhd	13,785,500		11,539,633
Alliance Bank Malaysia Bhd	10,675,700		10,728,955

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 21

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Malaysia (continued)
AMMB Holdings Bhd	14,666,600	$	14,632,695
Astro Malaysia Holdings Bhd(b)	15,730,000		6,660,226
Axiata Group Bhd(b)	23,357,100		27,281,684
Berjaya Corp. Bhd(a)(b)	43,628,006		3,025,668
Berjaya Sports Toto Bhd	6,908,873		3,715,442
British American Tobacco Malaysia Bhd	165,200		1,361,156
Bursa Malaysia Bhd	7,138,300		13,340,344
Cahya Mata Sarawak Bhd(b)	6,225,800		5,196,373
Carlsberg Brewery Malaysia Bhd	1,785,400		8,862,918
CIMB Group Holdings Bhd	38,245,200		56,676,790
Dialog Group Bhd	36,886,796		31,236,416
DiGi.Com Bhd(b)	27,508,700		31,528,404
DRB-Hicom Bhd(b)	6,669,700		3,684,200
Eastern & Oriental Bhd(b)	10,509,529		3,963,930
FGV Holdings Bhd(b)	16,912,400		6,214,314
Fraser & Neave Holdings Bhd	77,100		712,933
Gamuda Bhd(b)	16,845,300		15,166,714
Genting Bhd	18,228,200		38,235,086
Genting Malaysia Bhd(b)	25,461,500		32,341,898
Genting Plantations Bhd(b)	2,760,700		6,334,932
HAP Seng Consolidated Bhd(b)	6,209,600		14,853,478
Hartalega Holdings Bhd	12,451,700		21,512,853
Hong Leong Bank Bhd	6,244,800		31,242,995
Hong Leong Financial Group Bhd	2,545,700		12,153,944
IHH Healthcare Bhd(b)	20,425,500		27,734,345
IJM Corp. Bhd(b)	25,082,300		11,413,530
Inari Amertron Bhd	24,634,800		13,427,899
IOI Corp. Bhd	19,638,900		21,600,640
IOI Properties Group Bhd	19,531,641		8,317,404
Kossan Rubber Industries	6,264,200		6,783,232
KPJ Healthcare Bhd(b)	26,561,100		7,109,675
Kuala Lumpur Kepong Bhd(b)	4,009,000		24,056,927
Lafarge Malaysia Bhd(a)(b)	4,656,400		3,682,516
Magnum Bhd	8,722,600		4,075,287
Mah Sing Group Bhd(b)	15,235,723		4,374,779
Malayan Banking Bhd	30,697,000		74,398,861
Malaysia Airports Holdings Bhd(b)	7,264,300		16,527,851
Malaysia Building Society Bhd	15,679,200		4,044,276
Malaysian Resources Corp. Bhd(b)	20,963,900		3,570,928
Maxis Bhd(b)	16,530,600		23,250,242
MISC Bhd	10,383,900		14,983,946
Nestle Malaysia Bhd(b)	422,900		15,127,461
OSK Holdings Bhd	11,986,000		2,902,073
Pavilion REIT	13,668,400		5,421,461
Petronas Chemicals Group Bhd	20,049,500		46,153,612
Petronas Dagangan Bhd	2,197,300		14,543,511
Petronas Gas Bhd	5,777,000		26,287,845
Pos Malaysia Bhd(b)	3,988,800		3,503,971
PPB Group Bhd	4,956,020		20,260,649
Press Metal Aluminium Holdings Bhd(b)	12,551,700		15,210,480
Public Bank Bhd	24,067,260		147,115,117
QL Resources Bhd	9,590,695		13,605,974
RHB Bank Bhd	7,852,566		10,318,495
RHB Bank Bhd, New(a)(d)	1,769,000		4
Sime Darby Bhd	21,021,300		13,043,999
Sime Darby Plantation Bhd	19,754,100		25,765,172
Sime Darby Property Bhd	20,811,700		6,381,005
SP Setia Bhd Group(b)	5,213,200		3,336,347
Sunway Bhd(b)	19,415,554		7,370,304
Sunway Construction Group Bhd(b)	6,837,270		3,194,442

Security	Shares		Value
Malaysia (continued)
Sunway REIT	18,957,400	$	7,934,476
Supermax Corp. Bhd	6,235,800		5,098,501
Ta Ann Holdings Bhd	4,775,360		3,195,581
Telekom Malaysia Bhd(b)	10,337,700		8,326,509
Tenaga Nasional Bhd	26,499,500		101,110,150
TIME dotCom Bhd(b)	4,021,800		8,025,005
Top Glove Corp. Bhd(b)	6,609,700		17,917,522
UEM Sunrise Bhd(b)	15,536,600		3,402,589
UOA Development Bhd	9,334,300		5,519,491
VS Industry Bhd(b)	11,552,775		4,441,753
WCT Holdings Bhd(b)	12,526,479		2,743,358
Westports Holdings Bhd	11,479,100		10,391,106
YTL Corp. Bhd	31,670,866		10,249,970
			1,258,486,326
Mexico — 3.1%
Alfa SAB de CV, Class A	25,455,947		33,456,654
Alsea SAB de CV	4,623,524		16,457,574
America Movil SAB de CV, Series L, NVS	278,399,395		233,692,126
Arca Continental SAB de CV	3,907,038		24,021,934
Axtel SAB de CV, CPO(a)(b)	14,794,500		2,955,728
Banco del Bajio SA(c)	4,784,553		11,135,306
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand, Class B	14,847,411		23,481,902
Bolsa Mexicana de Valores SAB de CV	4,241,278		8,564,407
Cemex SAB de CV, CPO(a)	125,289,930		88,657,344
Coca-Cola Femsa SAB de CV, Series L, NVS	4,245,200		25,517,159
Concentradora Fibra Hotelera Mexicana SA de CV(c)	6,691,704		4,231,202
Consorcio ARA SAB de CV	11,964,900		4,054,944
Controladora Vuela Cia. de Aviacion SAB de CV, Class A(a)(b)	6,672,459		4,871,605
Corp. Inmobiliaria Vesta SAB de CV	5,385,200		7,641,039
El Puerto de Liverpool SAB de CV, Series C1, NVS(b)	1,551,905		10,917,431
Fibra Uno Administracion SA de CV	29,447,000		38,594,274
Fomento Economico Mexicano SAB de CV	16,215,660		154,952,184
Genomma Lab Internacional SAB de CV, Class B(a)(b)	7,530,668		6,514,330
Gruma SAB de CV, Series B	1,842,359		23,322,769
Grupo Aeromexico SAB de CV(a)	4,453,600		6,256,306
Grupo Aeroportuario del Centro Norte SAB de CV	2,786,700		18,366,671
Grupo Aeroportuario del Pacifico SAB de CV, Series B	3,058,397		31,549,291
Grupo Aeroportuario del Sureste SAB de CV, Series B	1,848,820		34,608,387
Grupo Bimbo SAB de CV, Series A(b)	14,182,292		29,483,858
Grupo Carso SAB de CV, Series A1	4,711,886		17,422,679
Grupo Comercial Chedraui SA de CV	3,629,500		8,606,550
Grupo Financiero Banorte SAB de CV, Series O	20,602,578		141,003,287
Grupo Financiero Inbursa SAB de CV, Series O(b)	19,979,871		31,724,530
Grupo Herdez SAB de CV	3,036,100		6,534,113
Grupo Mexico SAB de CV, Series B	29,588,324		86,689,046
Grupo Televisa SAB, CPO	20,673,674		74,540,053
Industrias Bachoco SAB de CV, Series B(b)	1,775,684		8,581,939
Industrias CH SAB de CV, Series B(a)(b)	1,608,500		6,286,614
Industrias Penoles SAB de CV	1,242,165		21,096,763
Infraestructura Energetica Nova SAB de CV	4,675,471		21,723,744
Kimberly-Clark de Mexico SAB de CV, Series A	13,441,183		23,591,752
La Comer SAB de CV(a)(b)	4,570,502		5,067,579

22 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Mexico (continued)
Macquarie Mexico Real Estate Management SA de CV	8,179,400	$	9,017,638
Mexichem SAB de CV	9,215,683		31,179,233
PLA Administradora Industrial S.de RL de CV	6,825,349		10,252,034
Promotora y Operadora de Infraestructura SAB de CV	2,036,820		21,565,014
Qualitas Controladora SAB de CV(b)	3,124,989		7,826,978
Regional SAB de CV	2,126,447		13,046,390
Telesites SAB de CV(a)	14,141,995		11,013,013
Wal-Mart de Mexico SAB de CV	43,007,893		118,965,898
			1,519,039,272
Pakistan — 0.1%
Engro Corp. Ltd./Pakistan	2,964,300		7,854,500
Engro Fertilizers Ltd.	5,597,347		3,559,038
Fauji Fertilizer Co. Ltd.	5,546,820		4,355,694
Habib Bank Ltd.	4,914,400		5,978,428
Hub Power Co. Ltd. (The)	6,786,495		5,049,830
Lucky Cement Ltd.	1,355,300		5,903,497
MCB Bank Ltd.	3,250,900		5,269,260
National Bank of Pakistan(a)	4,863,500		2,050,387
Nishat Mills Ltd.	3,509,400		3,828,822
Oil &Gas Development Co. Ltd.	6,428,200		7,894,026
Pakistan Oilfields Ltd.	1,064,850		5,517,321
Pakistan State Oil Co. Ltd.	2,038,882		5,642,522
Searle Co. Ltd. (The)	1,113,957		2,816,970
United Bank Ltd./Pakistan	4,055,400		5,162,101
			70,882,396
Peru — 0.4%
Cia. de Minas Buenaventura SAA, ADR, NVS	1,868,290		23,521,771
Credicorp Ltd.	558,660		121,799,053
Southern Copper Corp.(b)	740,206		32,302,590
			177,623,414
Philippines — 1.0%
Aboitiz Equity Ventures Inc.	17,474,040		17,468,157
Aboitiz Power Corp.	11,785,500		8,155,598
Alliance Global Group Inc.(a)	30,917,000		7,979,625
Ayala Corp.	2,220,035		41,520,816
Ayala Land Inc.	61,390,800		51,093,937
Bank of the Philippine Islands	8,570,363		15,027,148
BDO Unibank Inc.	17,606,836		42,841,501
Bloomberry Resorts Corp.	23,285,600		4,159,076
Cebu Air Inc.	2,739,450		3,688,943
Cosco Capital Inc.	27,253,400		3,053,188
D&L Industries Inc.	28,252,800		5,569,397
DMCI Holdings Inc.	36,317,200		8,694,175
Filinvest Land Inc.	113,760,000		3,212,718
First Gen Corp.	12,408,400		3,945,216
First Philippine Holdings Corp.	1,976,290		2,398,841
Globe Telecom Inc.	320,835		12,697,068
GT Capital Holdings Inc.	834,729		13,675,892
International Container Terminal Services Inc.	4,812,080		8,428,430
JG Summit Holdings Inc.	25,572,163		28,696,225
Jollibee Foods Corp.	3,868,810		20,838,956
Manila Electric Co.	990,710		6,918,739
Manila Water Co. Inc.	12,410,500		5,663,503
Megaworld Corp.	102,041,600		8,759,837
Melco Resorts And Entertainment (Philippines) Corp.(a)	20,942,100		2,671,226
Metro Pacific Investments Corp.	130,582,000		13,310,240

Security	Shares		Value
Philippines (continued)
Metropolitan Bank & Trust Co.	8,060,032	$	11,042,069
Nickel Asia Corp.	18,462,124		1,874,941
PLDT Inc.	767,245		19,989,008
Robinsons Land Corp.	20,506,213		8,169,042
Security Bank Corp.	2,037,840		7,413,030
SM Investments Corp.	2,084,832		37,666,412
SM Prime Holdings Inc.	77,821,296		56,763,495
Universal Robina Corp.	8,067,390		21,048,120
Vista Land & Lifescapes Inc.	46,882,800		5,611,766
			510,046,335
Poland — 1.2%
Alior Bank SA(a)	817,658		15,118,159
Asseco Poland SA	617,400		7,699,781
Bank Handlowy w Warszawie SA	298,587		5,516,694
Bank Millennium SA(a)	5,495,202		13,407,848
Bank Polska Kasa Opieki SA	1,231,419		39,096,119
Bank Zachodni WBK SA	293,796		30,014,617
Budimex SA	120,834		3,742,769
CCC SA	276,238		16,181,965
CD Projekt SA(a)	583,200		32,642,530
Ciech SA	271,928		3,886,322
Cyfrowy Polsat SA(a)	2,073,477		12,664,691
Dino Polska SA(a)(c)	394,861		9,795,218
Enea SA(a)	2,141,334		4,968,684
Eurocash SA(b)	850,632		4,705,639
Getin Noble Bank SA(a)	5,818,583		1,185,707
Grupa Azoty SA	413,320		4,267,456
Grupa Lotos SA	814,831		15,475,468
Jastrzebska Spolka Weglowa SA(a)	469,511		9,822,806
KGHM Polska Miedz SA	1,187,209		29,289,510
KRUK SA	158,881		8,935,964
LPP SA	11,285		28,224,382
Lubelski Wegiel Bogdanka SA(a)	163,848		2,648,849
mBank SA	128,640		14,316,441
Orange Polska SA(a)(b)	5,519,004		7,287,793
PGE Polska Grupa Energetyczna SA(a)	7,048,190		17,235,314
PLAY Communications SA(c)	874,842		5,158,084
Polski Koncern Naftowy ORLEN SA	2,460,604		65,679,397
Polskie Gornictwo Naftowe i Gazownictwo SA(a)	14,979,511		23,687,526
Powszechna Kasa Oszczednosci Bank Polski SA	7,298,609		83,685,772
Powszechny Zaklad Ubezpieczen SA	5,082,261		61,670,115
Tauron Polska Energia SA(a)	10,506,980		5,709,617
Warsaw Stock Exchange	492,094		5,548,751
			589,269,988
Qatar — 0.9%
Al Meera Consumer Goods Co. QSC	111,127		4,604,781
Barwa Real Estate Co.	994,541		9,792,178
Commercial Bank PQSC (The)	2,003,187		21,579,988
Doha Bank QPSC	425,969		2,993,261
Ezdan Holding Group QSC(a)	7,178,699		20,315,128
Gulf International Services QSC(a)	446,817		2,120,864
Industries Qatar QSC	1,454,118		49,300,896
Masraf Al Rayan QSC	3,598,461		37,092,972
Ooredoo QPSC	780,624		15,623,792
Qatar Electricity & Water Co. QSC	378,614		19,813,996
Qatar Gas Transport Co. Ltd.	2,210,288		10,569,931
Qatar Industrial Manufacturing Co. QSC	288,362		3,232,625
Qatar Insurance Co. SAQ	1,642,716		16,537,877
Qatar Islamic Bank SAQ	908,892		34,791,551

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 23

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Qatar (continued)
Qatar National Bank QPSC	3,721,781	$	181,135,800
Qatar National Cement Co. QSC	224,325		3,526,785
United Development Co. QSC	1,898,260		7,214,463
Vodafone Qatar QSC(a)	1,702,419		4,254,477
			444,501,365
Russia — 3.0%
Aeroflot PJSC	5,381,157		9,227,751
Alrosa PJSC	22,217,200		33,444,343
Gazprom PJSC	69,791,600		155,377,398
Gazprom PJSC, ADR, NVS	9,655,751		42,581,862
Inter RAO UES PJSC	299,048,648		17,937,480
LSR Group PJSC, GDR, NVS(e)	2,614,257		5,333,084
LUKOIL PJSC	2,794,088		194,994,498
LUKOIL PJSC, ADR, NVS	724,435		49,986,015
M.Video PJSC(a)	453,304		2,914,175
Magnit PJSC, GDR, NVS(e)	3,046,007		44,989,523
Magnitogorsk Iron &Steel Works PJSC	19,119,927		13,752,239
Mechel PJSC, ADR, NVS(a)	955,284		2,541,055
MMC Norilsk Nickel PJSC	557,509		92,871,607
Mobile TeleSystems PJSC, ADR, NVS	4,388,042		34,007,326
Moscow Exchange MICEX-RTS PJSC	13,482,645		19,625,314
Novatek PJSC, GDR, NVS(e)	776,469		129,670,323
Novolipetsk Steel PJSC	10,602,658		26,077,781
PhosAgro PJSC, GDR, NVS(e)	1,195,697		15,842,985
Polyus PJSC	174,832		11,351,118
Rosneft Oil Co. PJSC	1,378,100		8,914,696
Rosneft Oil Co. PJSC, GDR, NVS(e)	8,457,126		53,888,807
RusHydro PJSC	1,037,281,000		9,808,574
Sberbank of Russia PJSC	14,908,356		40,284,628
Sberbank of Russia PJSC,ADR	18,530,702		201,150,770
Severstal PJSC	1,869,870		30,152,231
Surgutneftegas PJSC	54,213,550		23,133,047
Surgutneftegas PJSC, ADR, NVS	1,338,259		5,567,157
Tatneft PJSC	13,133,548		152,699,463
VTB Bank PJSC	2,703,690,000		1,661,864
VTB Bank PJSC, GDR, NVS(e)	12,670,817		15,965,229
X5 Retail Group NV, GDR(e)	707,699		16,706,440
			1,462,458,783
South Africa — 6.0%
Absa Group Ltd.	5,799,838		64,346,978
Adcock Ingram Holdings Ltd.	1,080,482		5,255,193
Advtech Ltd.	5,507,819		5,732,906
AECI Ltd.	1,273,949		9,049,049
African Rainbow Minerals Ltd.	1,099,916		9,453,966
Anglo American Platinum Ltd.	473,623		13,900,376
AngloGold Ashanti Ltd.	3,593,681		28,918,692
Aspen Pharmacare Holdings Ltd.	3,175,655		63,165,217
Astral Foods Ltd.	464,340		8,204,330
Attacq Ltd.(a)	5,234,655		5,766,561
AVI Ltd.	3,034,458		24,027,129
Barloworld Ltd.	1,760,392		15,019,128
Bid Corp. Ltd.	2,855,237		61,112,449
Bidvest Group Ltd. (The)	2,732,582		40,285,826
Blue Label Telecoms Ltd.	5,516,915		2,696,092
Brait SE(a)(b)	2,761,033		7,032,967
Capitec Bank Holdings Ltd.(b)	343,784		23,529,010
Cashbuild Ltd.	245,434		5,193,041
City Lodge Hotels Ltd.	553,281		5,249,112
Clicks Group Ltd.	2,218,612		30,739,919

Security	Shares		Value
South Africa (continued)
Coronation Fund Managers Ltd.	1,917,266	$	7,531,006
Discovery Ltd.	2,958,005		35,373,914
Emira Property Fund Ltd.	6,247,536		6,809,873
Exxaro Resources Ltd.	2,145,439		21,796,679
Famous Brands Ltd.(a)(b)	805,766		5,597,534
FirstRand Ltd.	27,333,984		131,900,873
Fortress REIT Ltd., Series A	11,906,803		13,401,122
Foschini Group Ltd. (The)	1,869,739		22,280,538
Gold Fields Ltd.	7,315,303		17,974,638
Grindrod Ltd.(a)	4,692,430		2,712,730
Growthpoint Properties Ltd.	26,739,892		46,430,363
Harmony Gold Mining Co. Ltd.	4,060,639		6,629,502
Hosken Consolidated Investments Ltd.	710,971		6,114,314
Hudaco Industries Ltd.	583,959		5,783,292
Hyprop Investments Ltd.	2,371,107		16,507,323
Impala Platinum Holdings Ltd.(a)(b)	6,452,754		7,883,580
Imperial Holdings Ltd.	1,273,120		17,916,006
Investec Ltd.	2,208,122		14,493,991
JSE Ltd.	869,107		9,607,410
KAP Industrial Holdings Ltd.	11,894,883		6,048,418
Kumba Iron Ore Ltd.	571,932		10,348,158
Liberty Holdings Ltd.	1,145,160		9,098,751
Life Healthcare Group Holdings Ltd.	11,492,160		20,911,594
Massmart Holdings Ltd.	1,003,301		7,584,719
Metair Investments Ltd.	2,805,264		3,346,883
MMI Holdings Ltd./South Africa	7,753,627		9,075,997
Mondi Ltd.	994,060		27,831,305
Mpact Ltd.	2,304,049		3,616,970
Mr. Price Group Ltd.	2,075,557		31,922,601
MTN Group Ltd.	13,710,201		83,274,177
Murray & Roberts Holdings Ltd.	4,125,785		4,367,609
Nampak Ltd.(a)	5,699,866		6,131,210
Naspers Ltd., Class N	3,645,264		812,530,932
Nedbank Group Ltd.	1,793,915		34,036,174
NEPI Rockcastle PLC	3,219,319		30,762,198
Netcare Ltd.	9,072,802		18,175,018
Northam Platinum Ltd.(a)	3,407,224		9,060,350
Old Mutual Ltd.(a)	40,955,592		84,979,097
Omnia Holdings Ltd.	672,213		5,964,521
Pick n Pay Stores Ltd.	3,167,582		15,674,410
Pioneer Foods Group Ltd.	1,190,726		8,574,121
PPC Ltd.(a)	14,366,852		6,020,815
PSG Group Ltd.	1,208,942		18,569,085
Rand Merchant Investment Holdings Ltd.	6,244,173		17,405,479
Redefine Properties Ltd.	45,993,437		32,490,885
Reinet Investments SCA	1,203,919		23,410,734
Remgro Ltd.	4,316,466		63,168,226
Resilient REIT Ltd.	2,576,351		10,021,414
Reunert Ltd.	1,798,789		9,335,716
RMB Holdings Ltd.	5,919,397		34,058,880
Royal Bafokeng Platinum Ltd.(a)	669,068		1,050,324
SA Corporate Real Estate Ltd.	23,646,129		7,069,024
Sanlam Ltd.	14,038,912		76,024,044
Sappi Ltd.	4,601,019		31,526,068
Sasol Ltd.	4,574,842		179,855,575
Shoprite Holdings Ltd.	3,640,399		50,687,921
Sibanye Gold Ltd.(a)	1,920,429		1,120,701
SPAR Group Ltd. (The)	1,644,838		23,014,541
Standard Bank Group Ltd.	10,606,397		134,896,068
Super Group Ltd./South Africa(a)	3,603,911		9,691,603

24 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
South Africa (continued)
Telkom SA SOC Ltd.	2,374,754	$	8,151,276
Tiger Brands Ltd.	1,334,489		26,074,510
Tongaat Hulett Ltd.	1,104,018		5,958,928
Trencor Ltd.	1,861,097		4,257,928
Truworths International Ltd.	3,685,163		21,641,254
Tsogo Sun Holdings Ltd.	4,092,509		5,871,481
Vodacom Group Ltd.	4,888,193		42,168,328
Vukile Property Fund Ltd.	6,820,445		9,356,945
Wilson Bayly Holmes-Ovcon Ltd.	599,525		6,129,774
Woolworths Holdings Ltd./South Africa	8,375,435		30,995,040
Zeder Investments Ltd.	14,714,440		5,001,478
			2,963,761,887
South Korea — 14.6%
Advanced Process Systems Corp.(a)(b)	213,201		4,989,342
Ahnlab Inc.	55,474		2,900,406
AK Holdings Inc.	56,208		3,393,233
Amorepacific Corp.(b)	265,186		62,654,555
AMOREPACIFIC Group(b)	252,621		21,877,253
Ananti Inc.(a)(b)	422,440		2,819,682
Aprogen pharmaceuticals Inc.(a)(b)	1,325,194		4,785,770
Asiana Airlines Inc.(a)	973,477		3,690,494
ATGen Co. Ltd.(a)(b)	335,006		4,860,393
BGF retail Co. Ltd.(b)	64,940		10,005,130
BH Co. Ltd.(a)(b)	236,797		5,392,628
Binggrae Co. Ltd.(b)	74,740		4,706,710
BNK Financial Group Inc.	2,055,270		15,398,600
Boditech Med Inc.	260,109		3,715,342
Bukwang Pharmaceutical Co. Ltd.	293,357		6,799,273
Caregen Co. Ltd.	47,184		3,552,099
Cell Biotech Co. Ltd.	93,531		3,108,878
Celltrion Healthcare Co. Ltd.(a)(b)	297,551		24,164,408
Celltrion Inc.(a)(b)	678,923		164,676,108
Cheil Worldwide Inc.	612,665		10,622,499
Chong Kun Dang Pharmaceutical Corp.	62,049		6,047,987
CJ CGV Co. Ltd.	146,602		6,980,107
CJ CheilJedang Corp.(b)	65,337		20,103,241
CJ Corp.(b)	121,481		14,405,509
CJ ENM Co. Ltd.	95,156		21,541,852
CJ Freshway Corp.(b)	92,972		2,647,633
CJ Logistics Corp.(a)(b)	73,596		10,181,722
Com2uSCorp.(b)	83,991		11,763,192
Cosmax Inc.(b)	77,606		10,597,055
Coway Co. Ltd.	423,075		34,738,405
CrystalGenomics Inc.(a)(b)	336,030		6,007,274
Daeduck Electronics Co.(b)	538,949		4,037,942
Daeduck GDS Co. Ltd.(b)	264,270		3,015,073
Daekyo Co. Ltd.	365,423		2,383,301
Daelim Industrial Co. Ltd.	252,203		18,555,833
Daesang Corp.	204,132		4,877,969
Daewoo Engineering & Construction Co. Ltd.(a)	1,566,460		7,373,894
Daewoong Pharmaceutical Co. Ltd.(b)	48,002		8,840,147
Daishin Securities Co. Ltd.	364,833		3,998,529
Daou Technology Inc.	260,350		5,309,208
DB HiTek Co. Ltd.	376,801		6,211,470
DB Insurance Co. Ltd.	411,206		23,642,082
Dentium Co. Ltd.(b)	73,666		6,194,257
DGB Financial Group Inc.	1,273,035		11,722,238
DIO Corp.(a)(b)	127,824		3,864,059
Dong-A Socio Holdings Co. Ltd.	44,934		4,238,485
Dong-A ST Co. Ltd.	57,548		5,324,928

Security	Shares	Value
South Korea (continued)
Dongjin Semichem Co. Ltd.	333,762	$	3,343,167
DongKook Pharmaceutical Co. Ltd.	78,292		4,874,128
Dongkuk Steel Mill Co. Ltd.(b)	680,885		5,725,269
Dongsuh Cos. Inc.	337,591		6,869,188
Dongwon Industries Co. Ltd.	17,658		4,782,722
Doosan Bobcat Inc.	213,423		6,825,548
Doosan Heavy Industries & Construction Co. Ltd.(a)(b)	692,662		8,804,894
Doosan Infracore Co. Ltd.(a)(b)	1,181,370		10,103,438
DoubleUGames Co. Ltd.	98,135		6,144,733
Douzone Bizon Co. Ltd.	182,391		9,339,520
E1 Corp.(b)	37,604		2,189,048
Ecopro Co. Ltd.(a)(b)	202,144		7,145,817
E-MART Inc.(b)	177,083		34,123,257
Eo Technics Co Ltd.(b)	93,875		5,043,098
Fila Korea Ltd.	454,965		17,063,997
Foosung Co. Ltd.(a)(b)	575,940		6,001,800
GemVax & Kael Co. Ltd.(a)(b)	333,096		4,413,750
Genexine Co. Ltd.(a)(b)	127,349		11,428,976
Grand Korea Leisure Co. Ltd.	290,170		6,295,293
Green Cross Cell Corp.	127,710		6,172,392
Green Cross Corp./South Korea(b)	51,581		9,082,223
Green Cross Holdings Corp.	257,334		7,085,556
GS Engineering & Construction Corp.(b)	446,463		19,211,766
GS Holdings Corp.	431,509		20,584,043
GS Home Shopping Inc.	33,150		6,179,423
GS Retail Co. Ltd.(b)	243,042		8,122,142
G-treeBNT Co. Ltd.(a)(b)	197,744		5,888,886
Gwangju Shinsegae Co. Ltd.(b)	12,842		2,422,692
Halla Holdings Corp.(b)	88,122		3,320,952
Hana Financial Group Inc.	2,366,236		90,767,890
Hana Tour Service Inc.(b)	100,996		6,378,313
Hanall Biopharma Co. Ltd.(a)(b)	273,906		7,800,225
Hancom Inc.(b)	245,333		3,834,878
Handsome Co. Ltd.	162,566		5,681,011
Hanil Cement Co. Ltd./New(a)(b)	20,548		2,796,588
Hanil Holdings Co. Ltd.(b)	18,524		1,322,965
Hanjin Heavy Industries & Construction Co. Ltd.(a)(b)	832,715		1,956,205
Hanjin Kal Corp.(b)	423,965		6,893,740
Hanjin Transportation Co. Ltd.	113,936		3,034,813
Hankook Shell Oil Co. Ltd.	12,656		3,854,273
Hankook Tire Co. Ltd.(b)	620,834		26,017,973
Hankook Tire Worldwide Co. Ltd.(b)	294,967		4,822,710
Hanmi Pharm Co. Ltd.(b)	52,543		23,483,037
Hanmi Science Co. Ltd.(b)	115,545		9,020,222
Hanon Systems	1,626,704		17,536,224
Hansae Co. Ltd.	161,551		2,706,667
Hansol Chemical Co. Ltd.(b)	84,983		6,351,871
Hansol Technics Co. Ltd.(a)	337,519		2,956,304
Hanssem Co. Ltd.(b)	102,331		7,584,160
Hanwha Aerospace Co. Ltd.(a)(b)	359,956		8,084,176
Hanwha Chemical Corp.(b)	957,817		17,424,241
Hanwha Corp.	368,360		10,539,699
Hanwha General Insurance Co. Ltd.	833,824		5,220,997
Hanwha Investment & Securities Co. Ltd.(a)(b)	1,435,884		3,334,465
Hanwha Life Insurance Co. Ltd.	2,121,972		9,245,442
HDC Hyundai Development Co-Engineering & Construction, Class E(a)	372,355		18,698,868
Hite Jinro Co. Ltd.(b)	257,875		3,891,928
HLB Inc.(a)(b)	275,009		25,693,694

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 25

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
South Korea (continued)
Homecast Co. Ltd.(a)(b)		352,011	$	2,779,658
Hotel Shilla Co. Ltd.(b)		270,915		26,284,706
HS Industries Co. Ltd.(b)		435,301		3,499,927
Huchems Fine Chemical Corp.		215,504		4,907,718
Hugel Inc.(a)(b)		22,383		8,618,204
Humedix Co. Ltd.(b)		137,191		4,178,031
Huons Co. Ltd.(b)		85,505		7,635,267
Huons Global Co. Ltd.(b)		87,133		4,618,288
Hy-Lok Corp.(b)		158,631		3,498,532
Hyosung Advanced Materials Corp.(a)		22,033		3,166,941
Hyosung Chemical Corp.(a)		22,940		3,894,947
Hyosung Corp.(b)		81,865		3,375,649
Hyosung Heavy Industries Corp.(a)		71,662		3,811,158
Hyosung TNC Co. Ltd.(a)		21,935		3,744,015
Hyundai Construction Equipment Co. Ltd.(a)		58,776		6,230,578
Hyundai Department Store Co. Ltd.		113,566		10,161,410
Hyundai Elevator Co. Ltd.(b)		128,111		10,507,599
Hyundai Engineering & Construction Co. Ltd.(b)		652,028		35,145,021
Hyundai Glovis Co. Ltd.(b)		156,467		17,008,047
Hyundai Greenfood Co. Ltd.(b)		457,905		5,368,244
Hyundai Heavy Industries Co. Ltd.(a)(b)		309,689		32,828,731
Hyundai Heavy Industries Holdings Co. Ltd.(a)(b)		81,783		27,734,881
Hyundai Home Shopping Network Corp.		64,986		6,626,161
Hyundai Livart Furniture Co. Ltd.(b)		176,134		3,686,765
Hyundai Marine & Fire Insurance Co. Ltd.		531,292		17,755,076
Hyundai Merchant Marine Co. Ltd.(a)(b)		2,357,943		9,638,091
Hyundai Mipo Dockyard Co. Ltd.(a)(b)		103,766		9,116,754
Hyundai Mobis Co. Ltd.(b)		562,908		113,274,394
Hyundai Motor Co.		1,283,316		144,108,611
Hyundai Motor Securities Co. Ltd.		394,388		3,511,104
Hyundai Rotem Co. Ltd.(a)(b)		260,425		6,375,225
Hyundai Steel Co.(b)		656,057		31,413,411
Il Dong Pharmaceutical Co. Ltd.		173,458		3,903,448
Iljin Materials Co. Ltd.(b)		195,285		9,719,076
Ilyang Pharmaceutical Co. Ltd.(a)		183,777		5,580,257
iMarketKorea Inc.		260,253		1,636,591
InBody Co. Ltd.		125,645		3,312,834
Industrial Bank of Korea		2,001,426		26,789,963
ING Life Insurance Korea Ltd.(b)(c)		282,692		8,837,696
Innocean Worldwide Inc.		96,345		5,054,618
Innox Advanced Materials Co. Ltd.(a)(b)		80,259		4,116,955
iNtRON Biotechnology Inc.(a)(b)		158,496		5,695,405
IS Dongseo Co. Ltd.		177,950		5,818,964
It’s Hanbul Co. Ltd.(b)		83,397		3,318,948
Jayjun Cosmetic Co. Ltd.(a)(b)		210,717		4,069,906
JB Financial Group Co. Ltd.(b)		1,042,671		5,816,814
Jeil Pharmaceutical Co. Ltd.(b)		74,522		2,774,951
Jenax Inc.(a)(b)		180,649		2,499,209
Jusung Engineering Co. Ltd.(b)		478,861		3,901,783
JW Holdings Corp.(b)		419,058		3,098,277
JW Pharmaceutical Corp.		148,881		6,159,071
Kakao Corp.(b)		387,320		43,493,689
Kakao M Corp.(b)		72,945		6,546,472
Kangwon Land Inc.		941,815		24,494,043
KB Financial Group Inc.		3,222,696		149,677,387
KC Co. Ltd.		91,012		1,782,385
KC Tech Co. Ltd./New		160,188		2,475,168
KCC Corp.		50,897		14,837,243
KEPCO Engineering & Construction Co. Inc.(b)		153,718		2,886,140
KEPCO Plant Service & Engineering Co. Ltd.		208,765		6,826,615

Security	Shares		Value
South Korea (continued)
Kia Motors Corp.		2,139,209	$	61,592,461
KISWIRE Ltd.(b)		97,932		2,291,810
KIWOOM Securities Co. Ltd.(b)		104,495		8,655,113
Koh Young Technology Inc.(b)		122,410		11,689,514
Kolon Corp.(b)		76,775		2,755,389
Kolon Industries Inc.(b)		148,535		9,047,004
Kolon Life Science Inc.(a)(b)		86,555		6,228,321
Komipharm International Co. Ltd.(a)(b)		388,670		8,956,013
Korea Aerospace Industries Ltd.(a)(b)		637,398		23,906,362
Korea Electric Power Corp.		2,070,887		56,741,727
Korea Gas Corp.(a)		209,332		9,891,626
Korea Investment Holdings Co. Ltd.		345,143		22,107,259
Korea Kolmar Co. Ltd.(b)		135,407		9,038,081
Korea Line Corp.(a)		138,315		2,926,217
Korea Petrochemical Ind. Co Ltd.(b)		29,298		5,671,939
Korea REIT Co. Ltd.		1,992,248		5,154,448
Korea Zinc Co. Ltd.		68,884		25,093,170
Korean Air Lines Co. Ltd.		382,052		9,627,237
Korean Reinsurance Co.		836,058		7,811,169
KT Corp.		51,660		1,341,215
KT Skylife Co. Ltd.		319,500		3,817,410
KT&G Corp.		959,841		87,089,737
Kukdo Chemical Co. Ltd.		89,464		4,717,726
Kumho Industrial Co. Ltd.(b)		313,959		3,017,887
Kumho Petrochemical Co. Ltd.(b)		156,018		14,296,219
Kumho Tire Co. Inc.(a)(b)		913,442		4,472,226
Kwang Dong Pharmaceutical Co. Ltd.(b)		620,773		4,193,696
Kwangju Bank Co. Ltd.		423,343		4,297,512
L&F Co. Ltd.(b)		139,060		6,040,112
LF Corp.		186,965		4,459,346
LG Chem Ltd.(b)		381,086		125,299,803
LG Corp.(b)		773,182		49,663,130
LG Display Co. Ltd.(b)		1,964,052		37,493,694
LG Electronics Inc.		881,139		60,792,773
LG Hausys Ltd.		73,376		4,423,060
LG Household & Health Care Ltd.(b)		78,226		88,897,175
LG Innotek Co. Ltd.(b)		121,349		15,643,518
LG International Corp.		265,273		5,075,969
LG Uplus Corp.		1,130,121		15,939,361
LIG Nex1 Co. Ltd.(b)		119,200		3,565,881
Lock&Lock Co. Ltd.(b)		198,110		3,123,416
Lotte Chemical Corp.		139,133		39,496,948
Lotte Confectionery Co. Ltd.		19,994		2,981,632
Lotte Corp.(a)		266,271		11,529,679
LOTTE Fine Chemical Co. Ltd.		164,924		9,008,111
Lotte Food Co. Ltd.(b)		5,891		4,339,595
LOTTE Himart Co. Ltd.		74,145		4,769,152
Lotte Shopping Co. Ltd.		90,341		14,608,436
LS Corp.		162,634		9,818,088
LS Industrial Systems Co. Ltd.		138,952		8,937,666
Maeil Dairies Co. Ltd.		59,074		4,537,418
Mando Corp.(b)		288,642		9,270,046
Medipost Co. Ltd.(a)(b)		77,592		7,144,751
Medy-Tox Inc.		37,780		22,732,825
Meritz Fire & Marine Insurance Co. Ltd.		518,824		8,506,076
Meritz Securities Co. Ltd.		3,242,699		11,535,811
Mirae Asset Daewoo Co. Ltd.		3,388,032		25,018,751
Modetour Network Inc.(b)		213,327		4,321,541
Muhak Co. Ltd.		211,682		2,757,390
Namhae Chemical Corp.(b)		263,217		3,215,875

26 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
South Korea (continued)
Namyang Dairy Products Co. Ltd.	5,590	$	3,173,768
Naturalendo Tech Co. Ltd.(a)(b)	155,603		3,012,392
NAVER Corp.(b)	231,749		156,560,435
NCSoft Corp.(b)	144,988		50,471,949
Netmarble Corp.(b)(c)	222,391		23,274,987
Nexen Corp.	478,441		2,651,917
Nexen Tire Corp.	355,768		3,160,891
NH Investment & Securities Co. Ltd.	1,127,453		13,622,821
NHN Entertainment Corp.(a)	100,628		5,451,079
NHN KCP Corp.(a)(b)	200,864		2,661,586
NICE Holdings Co. Ltd.	260,659		4,636,436
NICE Information Service Co. Ltd.	464,580		4,277,901
Nong Shim Holdings Co. Ltd.(b)	36,924		2,889,171
NongShim Co. Ltd.(b)	26,281		5,890,589
NS Shopping Co. Ltd.	258,702		2,881,826
NUTRIBIOTECH Co. Ltd.(a)(b)	160,507		2,790,110
OCI Co. Ltd.	156,425		16,230,596
Orion Corp./Republic of Korea	176,505		16,966,298
Osstem Implant Co. Ltd.(a)	113,840		5,092,963
Ottogi Corp.	11,375		7,408,593
Pan Ocean Co. Ltd.(a)(b)	2,034,180		9,429,429
Paradise Co. Ltd.(b)	440,968		8,021,922
Partron Co. Ltd.(b)	439,543		3,162,862
Pearl Abyss Corp.(a)(b)	48,668		11,148,848
Poongsan Corp.	218,505		6,605,303
POSCO	625,166		183,368,548
POSCO Chemtech Co. Ltd.(b)	204,032		11,089,194
Posco Daewoo Corp.	395,198		6,479,238
Posco ICT Co. Ltd.(b)	430,395		2,578,929
S&T Motiv Co. Ltd.	123,760		3,579,996
S-1 Corp.	143,386		11,039,105
Samchully Co. Ltd.	28,174		2,670,221
Samjin Pharmaceutical Co. Ltd.	165,596		8,196,864
Samsung Biologics Co. Ltd.(a)(b)(c)	139,686		58,100,542
Samsung C&T Corp.	635,471		70,217,790
Samsung Card Co. Ltd.	204,466		6,474,803
Samsung Electro-Mechanics Co. Ltd.	470,990		68,121,448
Samsung Electronics Co. Ltd.	39,835,831		1,733,859,778
Samsung Engineering Co. Ltd.(a)	1,435,564		21,730,453
Samsung Fire & Marine Insurance Co. Ltd.	252,051		60,004,056
Samsung Heavy Industries Co. Ltd.(a)	3,567,717		22,691,853
Samsung Life Insurance Co. Ltd.	577,830		48,016,238
Samsung SDI Co. Ltd.(b)	466,959		99,000,426
Samsung SDS Co. Ltd.(b)	287,936		62,726,928
Samsung Securities Co. Ltd.	502,424		14,601,281
Samyang Corp.(b)	44,181		2,901,344
Samyang Holdings Corp.	41,699		3,820,957
Sangsangin Co. Ltd.(a)(b)	306,112		6,668,657
Seah Besteel Corp.	144,870		2,700,492
Sebang Global Battery Co. Ltd.	125,268		3,955,595
Seegene Inc.(a)	207,539		4,782,262
Seobu T&D(a)(b)	460,188		4,216,788
Seoul Semiconductor Co. Ltd.(b)	389,274		6,172,291
SFA Engineering Corp.	184,293		6,324,388
Shinhan Financial Group Co. Ltd.	3,327,331		130,325,321
Shinsegae Food Co. Ltd.	28,768		3,010,800
Shinsegae Inc.	64,251		18,730,135
Shinsegae International Inc.(b)	35,002		6,351,708
Silicon Works Co. Ltd.	126,673		5,268,796
SillaJen Inc.(a)(b)	497,403		34,138,786

Security	Shares	Value
South Korea (continued)
Sindoh Co. Ltd.(b)	77,375	$	3,565,860
SK Chemicals Co. Ltd.(a)(b)	92,461		7,193,211
SK Discovery Co. Ltd.	7,592		219,613
SK Gas Ltd.(b)	49,505		3,789,090
SK Holdings Co. Ltd.	261,927		61,884,563
SK Hynix Inc.	4,824,798		359,752,265
SK Innovation Co. Ltd.	530,652		92,005,422
SK Materials Co. Ltd.(b)	54,785		8,883,522
SK Networks Co. Ltd.	1,147,155		4,616,857
SK Securities Co. Ltd.(a)(b)	3,742,335		3,462,790
SK Telecom Co. Ltd.	161,611		38,110,666
SKC Co. Ltd.	195,397		8,258,931
SKCKOLONPI Inc.(b)	139,394		6,636,915
SL Corp.	176,154		3,180,789
SM Entertainment Co. Ltd.(a)(b)	212,905		9,285,844
S-Oil Corp.	370,255		39,747,988
Songwon Industrial Co. Ltd.	185,052		4,571,648
Soulbrain Co. Ltd.	91,353		5,424,636
SPC Samlip Co. Ltd.(b)	28,618		3,213,628
Ssangyong Cement Industrial Co. Ltd.(b)	1,313,890		7,200,044
Ssangyong Motor Co.(a)(b)	725,836		2,947,293
Sungwoo Hitech Co. Ltd.(b)	722,560		2,914,517
Taekwang Industrial Co. Ltd.	3,853		5,572,771
Taewoong Co. Ltd.(a)(b)	132,715		1,889,712
Taeyoung Engineering & Construction Co. Ltd.(b)	405,298		4,915,351
Telcon RF Pharmaceutical Inc.(a)(b)	663,684		5,210,976
Tera Resource Co. Ltd.(a)(d)	49,111		—
Tongyang Inc.(b)	1,895,287		3,183,926
Tongyang Life Insurance Co. Ltd.	482,495		2,847,767
Toptec Co. Ltd.(a)(b)	197,312		3,332,404
Value Added Technology Co. Ltd.(b)	106,070		3,196,917
Vieworks Co. Ltd.	84,312		2,919,847
ViroMed Co. Ltd.(a)(b)	119,401		25,432,311
Webzen Inc.(a)(b)	162,787		2,902,863
Wonik Holdings Co. Ltd.(a)	521,796		2,625,035
WONIK IPS Co. Ltd.(b)	237,506		5,696,816
Woori Bank	3,753,255		54,959,400
YG Entertainment Inc.(b)	162,098		6,247,140
Youlchon Chemical Co. Ltd.	288,827		3,412,007
Youngone Corp.	200,154		6,230,370
Youngone Holdings Co. Ltd.	81,385		3,838,398
Yuanta Securities Korea Co. Ltd.(a)(b)	1,004,162		3,179,869
Yuhan Corp.	68,530		14,713,803
Yungjin Pharmaceutical Co. Ltd.(a)(b)	982,461		7,069,589
			7,146,874,108
Taiwan — 13.0%
AcBel Polytech Inc.(b)	5,984,000		3,945,173
Accton Technology Corp.(b)	4,207,000		14,998,095
Acer Inc.(b)	24,325,872		20,354,059
A-DATA Technology Co. Ltd.(b)	2,404,820		4,094,810
Advanced Ceramic X Corp.(b)	432,000		3,537,294
Advanced Wireless Semiconductor Co.(b)	1,817,000		3,401,514
Advantech Co. Ltd.(b)	2,717,165		18,488,930
Airtac International Group(b)	956,880		9,190,285
Alpha Networks Inc.(b)	4,412,700		2,535,704
AmTRAN Technology Co. Ltd.(a)(b)	8,763,000		3,680,374
Ardentec Corp.(b)	5,452,546		6,772,412
ASE Technology Holding Co. Ltd.	30,029,222		73,618,767
Asia Cement Corp.	18,710,050		25,492,938
Asia Optical Co. Inc.(b)	2,269,000		5,968,914

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 27

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Taiwan (continued)
Asia Pacific Telecom Co. Ltd.(a)	21,597,000	$	5,146,998
Asia Polymer Corp.(b)	10,330,535		5,700,881
Asustek Computer Inc.(b)	5,546,000		47,217,288
AU Optronics Corp.(b)	69,176,000		29,954,120
Bank of Kaohsiung Co. Ltd.(b)	20,977,149		6,665,700
BES Engineering Corp.(b)	20,411,000		5,489,007
Bizlink Holding Inc.(b)	1,246,926		6,475,165
Brogent Technologies Inc.(b)	465,558		2,660,115
Capital Securities Corp.	23,507,050		7,921,145
Casetek Holdings Ltd.(b)	1,944,485		3,785,779
Catcher Technology Co. Ltd.	5,385,000		66,008,546
Cathay Financial Holding Co. Ltd.	66,279,078		113,504,135
Cathay Real Estate Development Co. Ltd.(b)	7,323,900		4,148,978
Center Laboratories Inc.	3,236,898		8,641,564
Chailease Holding Co. Ltd.	9,705,803		33,021,534
Chang Hwa Commercial Bank Ltd.	42,907,470		26,681,839
Cheng Loong Corp.(b)	10,384,000		7,251,727
Cheng Shin Rubber Industry Co. Ltd.(b)	16,267,650		24,839,746
Cheng Uei Precision Industry Co. Ltd.(b)	3,646,000		3,329,653
Chicony Electronics Co. Ltd.	4,073,787		8,568,017
China Airlines Ltd.	22,594,000		6,922,010
China Bills Finance Corp.(b)	14,521,000		6,665,997
China Development Financial Holding Corp.	118,811,000		42,936,744
China Life Insurance Co. Ltd./Taiwan	24,783,499		24,650,363
China Man-Made Fiber Corp.	18,607,535		7,057,717
China Metal Products(b)	3,585,146		3,665,101
China Motor Corp.	5,200,000		4,367,898
China Petrochemical Development Corp.(a)	22,041,900		10,190,297
China Steel Chemical Corp.(b)	1,637,000		7,648,038
China Steel Corp.(b)	99,657,529		81,601,395
China Synthetic Rubber Corp.	6,303,205		8,721,674
Chin-Poon Industrial Co. Ltd.(b)	3,088,000		3,815,387
Chipbond Technology Corp.(b)	5,749,000		13,158,219
Chlitina Holding Ltd.	512,000		4,584,079
Chong Hong Construction Co. Ltd.(b)	2,037,122		5,398,722
Chroma ATE Inc.	3,328,000		18,365,489
Chunghwa Precision Test Tech Co. Ltd.(b)	223,000		4,436,041
Chunghwa Telecom Co. Ltd.	29,588,000		104,518,900
Cleanaway Co. Ltd.	752,000		4,443,692
Clevo Co.	4,180,175		4,300,620
CMC Magnetics Corp.(a)(b)	25,301,566		5,988,683
Compal Electronics Inc.	31,856,000		19,965,098
Compeq Manufacturing Co. Ltd.(b)	9,491,000		9,084,662
Concraft Holding Co. Ltd.(b)	421,300		3,772,017
Continental Holdings Corp.(b)	9,792,600		4,447,559
Coretronic Corp.	3,726,200		6,999,894
CSBC Corp. Taiwan(a)(b)	2,840,449		3,264,459
CTBC Financial Holding Co. Ltd.	142,671,599		100,332,298
CTCI Corp.(b)	5,431,000		8,319,341
Cub Elecparts Inc.(b)	474,095		4,090,352
Darwin Precisions Corp.(b)	4,607,000		3,599,805
Delta Electronics Inc.(b)	17,636,000		70,624,385
Depo Auto Parts Ind. Co. Ltd.(b)	1,068,000		2,625,232
E Ink Holdings Inc.(b)	7,470,000		8,925,574
E.Sun Financial Holding Co. Ltd.	80,563,999		59,278,736
Eclat Textile Co. Ltd.	1,330,683		16,159,686
Egis Technology Inc.(b)	865,000		4,449,617
Elan Microelectronics Corp.	3,817,000		6,747,944
Elite Advanced Laser Corp.	1,448,516		3,499,264
Elite Material Co. Ltd.(b)	2,486,000		7,187,264

Security	Shares	Value
Taiwan (continued)
Elite Semiconductor Memory Technology Inc.(b)	3,981,000	$	4,763,202
Ennoconn Corp.(b)	531,000		5,169,103
Epistar Corp.(b)	8,654,000		9,974,006
Eternal Materials Co. Ltd.(b)	8,666,915		7,590,429
Eva Airways Corp.	16,031,963		8,142,557
Evergreen Marine Corp. Taiwan Ltd.	18,594,148		7,900,167
Everlight Chemical Industrial Corp.(b)	8,409,781		5,024,238
Everlight Electronics Co. Ltd.(b)	3,557,000		3,682,650
Far Eastern Department Stores Ltd.(b)	8,695,167		4,954,108
Far Eastern International Bank(b)	21,183,201		7,758,783
Far Eastern New Century Corp.	23,030,916		26,806,292
Far EasTone Telecommunications Co. Ltd.	12,670,000		30,195,149
Faraday Technology Corp.(b)	2,388,000		5,566,687
Farglory Land Development Co. Ltd.	2,436,782		2,499,060
Feng Hsin Steel Co. Ltd.	4,065,000		7,676,054
Feng TAY Enterprise Co. Ltd.	2,499,506		15,136,191
Firich Enterprises Co. Ltd.(b)	2,766,041		4,223,582
First Financial Holding Co. Ltd.	77,036,512		51,541,603
FLEXium Interconnect Inc.(b)	2,828,616		9,117,141
Formosa Chemicals & Fibre Corp.	27,554,210		110,342,433
Formosa Petrochemical Corp.	10,307,000		42,281,686
Formosa Plastics Corp.	34,999,800		128,193,961
Formosa Taffeta Co. Ltd.	4,604,000		5,358,717
Foxconn Technology Co. Ltd.(b)	7,483,424		19,003,974
Foxsemicon Integrated Technology Inc.(b)	710,000		3,744,750
Fubon Financial Holding Co. Ltd.	50,729,000		84,066,616
General Interface Solution Holding Ltd.(b)	1,621,000		10,053,736
Genius Electronic Optical Co. Ltd.	571,000		7,408,221
Getac Technology Corp.	4,255,000		5,811,403
Giant Manufacturing Co. Ltd.	2,468,000		10,646,590
Gigabyte Technology Co. Ltd.(b)	4,432,000		7,561,022
Gigasolar Materials Corp.(b)	501,800		2,254,547
Ginko International Co. Ltd.(b)	476,000		3,207,944
Gintech Energy Corp.(a)(b)	6,937,762		2,936,380
Global Unichip Corp.(b)	751,000		7,653,036
Globalwafers Co. Ltd.(b)	1,894,000		24,172,163
Gloria Material Technology Corp.	8,144,048		4,852,225
Goldsun Building Materials Co. Ltd.(b)	16,109,000		4,919,499
Gourmet Master Co. Ltd.(b)	683,471		4,895,446
Grand Pacific Petrochemical	8,729,000		8,426,334
Grape King Bio Ltd.(b)	1,038,000		7,333,420
Great Wall Enterprise Co. Ltd.(b)	5,648,500		7,687,036
Greatek Electronics Inc.	3,631,000		6,182,689
HannStar Display Corp.(b)	25,174,640		6,729,083
Highwealth Construction Corp.(b)	6,854,230		11,135,474
Hiwin Technologies Corp.(b)	1,869,891		16,863,416
Ho Tung Chemical Corp.(a)	21,563,920		5,756,931
Holy Stone Enterprise Co. Ltd.(b)	1,157,330		6,744,655
Hon Hai Precision Industry Co. Ltd.	136,089,410		356,672,554
Hota Industrial Manufacturing Co. Ltd.(b)	2,135,216		8,689,630
Hotai Motor Co. Ltd.(b)	2,264,000		19,606,837
HTC Corp.(a)(b)	6,150,000		8,930,164
Hu Lane Associate Inc.(b)	773,000		2,730,604
Hua Nan Financial Holdings Co. Ltd.	62,858,155		36,836,946
Huaku Development Co. Ltd.(b)	2,900,000		6,155,950
Hung Sheng Construction Ltd.	9,147,000		9,529,676
IEI Integration Corp.	3,588,582		4,439,724
Innolux Corp.(b)	75,094,241		27,993,783
International Games System Co. Ltd.	602,000		2,979,131
Inventec Corp.	20,757,000		18,618,113

28 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Taiwan (continued)
ITEQ Corp.(b)	2,752,000	$	5,931,382
Kenda Rubber Industrial Co. Ltd.(b)	4,365,889		4,470,363
Kerry TJ Logistics Co. Ltd.(b)	3,383,000		4,427,693
Kindom Construction Corp.(b)	5,436,000		3,911,301
King Slide Works Co. Ltd.	411,000		5,232,004
King Yuan Electronics Co. Ltd.(b)	9,822,000		6,939,196
King’s Town Bank Co. Ltd.	8,733,000		8,785,600
Kinpo Electronics(b)	17,430,000		5,816,621
Kinsus Interconnect Technology Corp.(b)	2,559,000		4,107,397
LandMark Optoelectronics Corp.(b)	598,900		5,128,136
Largan Precision Co. Ltd.(b)	828,000		126,835,097
LCY Chemical Corp.	5,016,000		8,459,346
Lealea Enterprise Co. Ltd.(b)	14,003,173		5,106,155
Lien Hwa Industrial Corp.(b)	7,683,945		9,118,665
Lite-On Technology Corp.(b)	17,584,238		21,153,755
Long Chen Paper Co. Ltd.(b)	5,414,000		4,018,857
Lotes Co. Ltd.(b)	495,000		3,787,238
Macronix International(b)	16,262,557		17,472,387
Makalot Industrial Co. Ltd.(b)	1,683,208		8,713,335
Masterlink Securities Corp.	19,337,344		6,988,264
MediaTek Inc.	12,527,572		102,578,035
Mega Financial Holding Co. Ltd.	86,053,958		72,283,644
Merida Industry Co. Ltd.	1,794,850		8,619,254
Merry Electronics Co. Ltd.(b)	1,765,070		9,539,366
Microbio Co. Ltd.(a)	7,140,141		4,184,357
Micro-Star International Co. Ltd.(b)	5,668,000		19,653,003
Mitac Holdings Corp.(b)	6,571,560		7,595,324
Motech Industries Inc.(a)(b)	7,369,948		2,675,400
Nan Kang Rubber Tire Co. Ltd.(b)	5,565,000		4,565,782
Nan Ya Plastics Corp.	39,856,440		110,816,864
Nan Ya Printed Circuit Board Corp.(b)	2,407,000		2,249,093
Nanya Technology Corp.(b)	8,753,000		19,862,741
Neo Solar Power Corp.(a)(b)	14,628,806		4,691,315
Nien Made Enterprise Co. Ltd.	1,295,000		10,034,511
Novatek Microelectronics Corp.	4,386,000		21,490,900
OBI Pharma Inc.(a)	1,244,000		5,811,949
Oriental Union Chemical Corp.	5,771,000		6,115,776
Pan-International Industrial Corp.(b)	3,957,366		2,911,817
Parade Technologies Ltd.(b)	616,000		9,125,183
PChome Online Inc.(a)(b)	848,070		3,920,753
Pegatron Corp.(b)	15,891,000		34,249,852
PharmaEngine Inc.(b)	994,793		4,339,973
PharmaEssentia Corp.(a)	1,394,000		8,237,376
Pharmally International Holding Co. Ltd.(b)	380,704		4,573,654
Phison Electronics Corp.(b)	1,279,000		10,576,787
Pixart Imaging Inc.(b)	1,372,000		5,672,929
Pou Chen Corp.	16,083,000		17,724,550
Powertech Technology Inc.	5,542,000		16,437,448
Poya International Co. Ltd.	423,447		4,342,693
President Chain Store Corp.	4,793,000		52,275,924
President Securities Corp.(b)	12,709,135		5,751,489
Primax Electronics Ltd.	3,855,000		7,153,996
Prince Housing & Development Corp.	11,947,995		4,278,950
Qisda Corp.(b)	16,488,000		11,219,248
Quanta Computer Inc.(b)	21,529,000		37,008,992
Radiant Opto-Electronics Corp.(b)	3,879,000		8,524,581
Radium Life Tech Co. Ltd.(a)	12,429,196		6,838,789
Realtek Semiconductor Corp.	3,796,110		18,415,119
Ritek Corp.(a)	18,819,503		6,923,665
Ruentex Development Co. Ltd.(b)	8,518,986		9,596,514

Security	Shares	Value
Taiwan (continued)
Ruentex Industries Ltd.(b)	5,124,906	$	10,511,772
Sanyang Motor Co. Ltd.(b)	6,524,000		4,428,631
ScinoPharm Taiwan Ltd.(b)	2,359,027		2,392,437
Sercomm Corp.(b)	2,251,000		3,957,480
Shin Kong Financial Holding Co. Ltd.	70,974,443		28,075,516
Shin Zu Shing Co. Ltd.(b)	1,208,000		3,519,974
Shining Building Business Co. Ltd.(a)	9,616,945		3,694,610
Shinkong Synthetic Fibers Corp.(b)	15,739,000		6,994,542
Sigurd Microelectronics Corp.(b)	5,876,000		6,667,055
Silergy Corp.(b)	547,000		10,774,377
Simplo Technology Co. Ltd.	1,256,400		9,203,646
Sinbon Electronics Co. Ltd.(b)	2,353,809		6,682,473
Sino-American Silicon Products Inc.(b)	4,458,000		12,772,391
SinoPac Financial Holdings Co. Ltd.	82,528,660		30,227,818
Sinyi Realty Inc.(b)	3,818,704		4,183,604
Sitronix Technology Corp.	1,247,000		3,929,989
Soft-World International Corp.(b)	1,298,000		3,059,587
St. Shine Optical Co. Ltd.(b)	384,000		8,363,861
Standard Foods Corp.	4,874,096		8,251,766
Sunny Friend Environmental Technology Co. Ltd.(b)	672,000		5,032,069
Synnex Technology International Corp.	10,868,250		14,542,897
TA Chen Stainless Pipe(b)	9,872,568		14,914,119
Taichung Commercial Bank Co. Ltd.(b)	23,783,730		8,091,811
Taigen Biopharmaceuticals Holdings Ltd.(a)(b)	3,690,000		2,420,755
TaiMed Biologics Inc.(a)(b)	1,679,000		12,490,689
Tainan Spinning Co. Ltd.(b)	10,415,894		4,561,087
Taishin Financial Holding Co. Ltd.	79,396,424		37,352,379
Taiwan Business Bank	34,074,718		12,314,158
Taiwan Cement Corp.	35,199,800		48,533,665
Taiwan Cogeneration Corp.(b)	5,619,000		4,728,997
Taiwan Cooperative Financial Holding Co. Ltd.	66,961,964		39,786,939
Taiwan Fertilizer Co. Ltd.(b)	4,304,000		5,934,377
Taiwan Glass Industry Corp.	11,212,053		5,968,324
Taiwan High Speed Rail Corp.	14,313,000		12,069,240
Taiwan Hon Chuan Enterprise Co. Ltd.	3,356,674		5,737,437
Taiwan Mobile Co. Ltd.	12,310,000		42,883,607
Taiwan Paiho Ltd.(b)	2,154,000		4,803,809
Taiwan Secom Co. Ltd.	2,460,185		7,024,523
Taiwan Semiconductor Co. Ltd.	2,968,000		7,102,328
Taiwan Semiconductor Manufacturing Co. Ltd.	203,930,000		1,699,693,309
Taiwan Shin Kong Security Co. Ltd.(b)	5,163,770		6,178,367
Taiwan TEA Corp.(b)	9,712,000		4,901,058
Tatung Co. Ltd.(a)(b)	17,069,000		20,839,574
TCI Co. Ltd.	781,557		14,249,452
Teco Electric and Machinery Co. Ltd.	16,745,000		12,266,401
Test Research Inc.(b)	2,186,400		3,836,789
Test Rite International Co. Ltd.(b)	8,120,000		6,001,107
Ton Yi Industrial Corp.(b)	8,813,000		3,873,531
Tong Hsing Electronic Industries Ltd.	1,331,000		3,661,713
Tong Yang Industry Co. Ltd.(b)	3,416,400		4,877,393
Topco Scientific Co. Ltd.(b)	2,066,639		5,248,180
TPK Holding Co. Ltd.(b)	3,207,000		6,003,663
Transcend Information Inc.(b)	1,665,000		4,027,658
Tripod Technology Corp.	3,905,000		12,027,120
TSRC Corp.(b)	5,822,900		6,066,508
TTY Biopharm Co. Ltd.	2,027,124		5,794,611
Tung Ho Steel Enterprise Corp.(b)	8,149,000		5,996,008
Tung Thih Electronic Co. Ltd.(b)	654,000		1,926,974
TWi Pharmaceuticals Inc.(a)(b)	853,000		1,894,013
TXC Corp.(b)	3,611,000		4,191,182

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 29

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Taiwan (continued)
U-Ming Marine Transport Corp.	5,138,000	$	5,712,606
Unimicron Technology Corp.(b)	12,665,000		7,257,171
Uni-President Enterprises Corp.	39,660,369		100,200,053
United Integrated Services Co. Ltd.(b)	3,013,000		6,081,914
United Microelectronics Corp.(b)	99,600,000		56,261,110
UPC Technology Corp.(b)	12,537,826		6,265,852
USI Corp.(b)	11,115,300		4,994,014
Vanguard International Semiconductor Corp.	7,307,000		17,723,311
Visual Photonics Epitaxy Co. Ltd.(b)	1,807,000		5,553,664
Voltronic Power Technology Corp.(b)	393,974		6,785,357
Wafer Works Corp.	4,696,404		7,224,649
Wah Lee Industrial Corp.	2,416,000		4,357,688
Walsin Lihwa Corp.(b)	25,243,000		17,834,058
Walsin Technology Corp.(b)	2,668,597		27,324,557
Waterland Financial Holdings Co. Ltd.	26,502,645		9,146,282
Win Semiconductors Corp.(b)	3,052,427		16,546,609
Winbond Electronics Corp.(b)	26,327,480		14,785,904
Wistron Corp.(b)	23,434,004		16,594,159
Wistron NeWeb Corp.(b)	2,458,654		5,491,247
Wowprime Corp.	719,260		1,840,594
WPG Holdings Ltd.	12,035,000		15,242,113
WT Microelectronics Co. Ltd.	4,695,734		6,688,535
XinTec Inc.(a)(b)	1,719,000		2,876,660
XPEC Entertainment Inc.(a)(d)	31,000		—
Yageo Corp.(b)	2,111,454		47,982,904
Yang Ming Marine Transport Corp.(a)	12,041,677		3,465,682
Yeong Guan Energy Technology Group Co. Ltd.(b)	975,937		1,817,470
YFY Inc.	13,533,000		5,441,398
Yieh Phui Enterprise Co. Ltd.(b)	14,231,477		4,679,730
Yuanta Financial Holding Co. Ltd.	84,446,912		42,752,710
Yulon Finance Corp.(b)	1,865,000		6,254,110
Yulon Motor Co. Ltd.(b)	8,011,000		5,490,202
YungShin Global Holding Corp.(b)	3,488,650		4,645,476
Yungtay Engineering Co. Ltd.(b)	3,714,000		5,665,014
Zhen Ding Technology Holding Ltd.	3,656,950		9,358,173
Zinwell Corp.(b)	3,851,000		2,858,629
			6,387,038,303
Thailand — 2.6%
Advanced Info Service PCL, NVDR	8,548,100		52,756,376
Airports of Thailand PCL, NVDR	35,506,600		72,412,635
Amata Corp. PCL, NVDR(b)	7,020,200		4,568,599
AP Thailand PCL, NVDR	21,019,490		6,036,762
Bangchak Corp. PCL, NVDR(b)	4,620,900		5,082,566
Bangkok Airways PCL, NVDR(b)	7,354,300		2,921,048
Bangkok Bank PCL Foreign	1,942,500		12,344,638
Bangkok Chain Hospital PCL, NVDR	15,292,550		8,924,158
Bangkok Dusit Medical Services PCL, NVDR	32,652,000		26,187,443
Bangkok Expressway & Metro PCL, NVDR	75,018,985		19,253,268
Bangkok Land PCL, NVDR	120,966,800		6,837,415
Banpu PCL, NVDR	18,967,800		11,764,325
Beauty Community PCL, NVDR(b)	19,845,800		6,851,743
Berli Jucker PCL, NVDR	10,906,900		19,327,840
BTS Group Holdings PCL, NVDR	58,286,300		16,472,602
Bumrungrad Hospital PCL, NVDR	3,048,400		16,904,510
Central Pattana PCL, NVDR	11,793,300		29,726,467
Charoen Pokphand Foods PCL, NVDR	27,317,100		21,491,455
Chularat Hospital PCL, NVDR(b)	65,769,600		5,023,648
CP ALL PCL, NVDR	42,056,400		86,734,097
Delta Electronics Thailand PCL, NVDR	4,597,000		9,796,540
Dynasty Ceramic PCL, NVDR(b)	40,927,720		3,276,218

Security	Shares	Value
Thailand (continued)
Eastern Polymer Group PCL, NVDR(b)	11,712,600	$	3,256,482
Electricity Generating PCL, NVDR	1,172,500		8,096,089
Energy Absolute PCL, NVDR(b)	11,721,400		13,877,307
Esso Thailand PCL, NVDR	11,971,900		5,779,286
Glow Energy PCL, NVDR	4,149,300		11,916,719
Gunkul Engineering PCL, NVDR(b)	32,470,935		2,877,046
Hana Microelectronics PCL, NVDR(b)	5,649,100		6,644,985
Home Product Center PCL, NVDR	40,353,675		18,000,723
Indorama Ventures PCL, NVDR	14,321,000		26,252,979
Inter Far East Energy Corp., NVDR(a)(b)(d)	7,049,000		2
IRPC PCL, NVDR	89,298,000		18,961,842
Italian-Thai Development PCL, NVDR(a)(b)	29,436,400		2,536,225
Jasmine International PCL, NVDR(b)	32,917,300		5,380,616
Kasikornbank PCL, NVDR(b)	4,780,800		30,820,312
Kasikornbank PCL Foreign	9,682,400		62,715,209
KCE Electronics PCL, NVDR(b)	4,764,500		6,587,034
Khon Kaen Sugar Industry PCL, NVDR(b)	18,767,986		1,892,281
Kiatnakin Bank PCL, NVDR	3,802,600		8,974,973
Krung Thai Bank PCL, NVDR	27,790,800		16,472,396
LPN Development PCL, NVDR	9,260,700		2,801,128
Major Cineplex Group PCL, NVDR	4,871,900		3,706,395
Minor International PCL, NVDR(b)	18,776,160		22,659,894
Muangthai Capital PCL, NVDR(b)	7,650,200		9,758,504
PTG Energy PCL, NVDR(b)	8,112,100		2,899,834
PTT Exploration & Production PCL, NVDR	12,113,201		52,738,501
PTT Global Chemical PCL, NVDR	18,917,600		47,250,651
PTT PCL, NVDR	87,160,400		139,808,158
Quality Houses PCL, NVDR	52,063,017		5,503,759
Robinson PCL, NVDR	5,010,600		9,989,051
Siam Cement PCL (The),NVDR	3,095,800		42,752,875
Siam Commercial Bank PCL (The), NVDR	14,495,600		65,546,862
Siam Global House PCL, NVDR(b)	17,912,565		10,453,101
Singha Estate PCL, NVDR(a)(b)	29,110,700		2,935,084
Sino-Thai Engineering & Construction PCL, NVDR(a)(b)	7,987,028		5,490,624
Sri Trang Agro-Industry PCL, NVDR(a)(b)	9,734,360		3,747,416
Srisawad Corp PCL, NVDR(b)	5,956,181		7,688,624
Supalai PCL, NVDR(b)	7,753,000		5,732,435
Thai Airways International PCL, NVDR(a)	6,666,000		2,668,029
Thai Oil PCL, NVDR	8,870,800		22,834,247
Thai Union Group PCL, NVDR	17,561,400		9,389,688
Thai Vegetable Oil PCL, NVDR	5,423,600		4,888,365
Thanachart Capital PCL, NVDR	5,960,400		9,788,313
Thoresen Thai Agencies PCL, NVDR(b)	14,105,623		3,102,979
Tisco Financial Group PCL, NVDR(b)	3,070,650		7,693,043
TMB Bank PCL, NVDR	112,050,000		7,531,622
True Corp. PCL, NVDR(b)	96,738,111		19,802,791
TTW PCL, NVDR(b)	16,495,800		6,249,555
Unique Engineering & Construction PCL, NVDR(b)	8,692,800		3,426,127
VGI Global Media PCL, NVDR(b)	30,708,400		7,224,402
Vibhavadi Medical Center PCL, NVDR	57,323,000		4,098,253
WHA Corp. PCL, NVDR	81,653,600		10,028,948
			1,255,926,117
Turkey — 0.5%
AG Anadolu Grubu Holding AS(b)	782,499		2,139,916
Akbank Turk AS	18,380,179		15,986,988
Aksa Akrilik Kimya Sanayii AS	1,113,423		1,874,690
Albaraka Turk Katilim Bankasi AS(b)	11,416,585		2,172,207
Anadolu Efes Biracilik Ve Malt Sanayii AS	1,902,266		6,003,603
Aselsan Elektronik Sanayi Ve Ticaret AS(b)	2,925,462		11,406,309

30 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Turkey (continued)
BIM Birlesik Magazalar AS	1,874,933	$	20,668,218
Cimsa Cimento Sanayi VE Ticaret AS(b)	1,014,765		1,547,680
Coca-Cola Icecek AS	825,982		3,562,240
Emlak Konut Gayrimenkul Yatirim Ortakligi AS(b)	26,592,923		7,388,875
Eregli Demir ve Celik Fabrikalari TAS	12,267,183		21,932,643
Ford Otomotiv Sanayi AS	662,935		6,702,178
Haci Omer Sabanci Holding AS	7,550,994		8,118,551
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D(a)	8,484,637		5,393,986
KOC Holding AS	6,271,798		14,187,253
Koza Altin Isletmeleri AS(a)(b)	525,255		3,489,935
Koza Anadolu Metal Madencilik Isletmeleri AS(a)(b)	2,156,054		1,872,069
Petkim Petrokimya Holding AS	7,560,908		6,291,004
Soda Sanayii AS	4,801,610		5,873,086
TAV Havalimanlari Holding AS	1,688,555		8,404,209
Tekfen Holding AS	2,110,489		6,520,534
Tofas Turk Otomobil Fabrikasi AS	1,267,943		4,384,597
Trakya Cam Sanayii AS	7,021,735		4,580,602
Tupras Turkiye Petrol Rafinerileri AS	1,041,979		18,566,729
Turk Hava Yollari AO(a)	4,838,519		11,894,913
Turkcell Iletisim Hizmetleri AS	8,834,248		14,140,666
Turkiye Garanti Bankasi AS	19,516,477		17,535,285
Turkiye Is Bankasi AS, Class C	13,831,943		8,333,943
Turkiye Sinai Kalkinma Bankasi AS	22,273,118		2,556,166
Turkiye Sise ve Cam Fabrikalari AS	6,711,650		6,243,160
Turkiye Vakiflar Bankasi TAO, Class D	8,176,206		4,271,912
Ulker Biskuvi Sanayi AS(a)	1,645,273		3,684,457
Yapi ve Kredi Bankasi AS(a)(b)	15,237,847		3,865,693
Zorlu Enerji Elektrik Uretim AS(a)(b)	11,475,900		2,356,786
			263,951,083
United Arab Emirates — 0.7%
Abu Dhabi Commercial Bank PJSC	18,877,218		36,488,640
Agthia Group PJSC	2,018,946		2,676,794
Air Arabia PJSC	24,157,454		6,642,535
Al Waha Capital PJSC	11,504,033		5,794,063
Aldar Properties PJSC	30,971,048		16,273,259
Amanat Holdings PJSC	8,275,037		2,770,999
Amlak Finance PJSC(a)	11,375,653		2,044,003
DAMAC Properties Dubai Co. PJSC	13,748,280		7,860,117
Deyaar Development PJSC(a)	24,700,102		2,689,801
DP World Ltd.	1,510,338		32,321,233
Dubai Investments PJSC	11,580,482		6,273,950
Dubai Islamic Bank PJSC	17,172,993		23,937,417
Emaar Development PJSC(a)	207,192		298,394
Emaar Malls PJSC	16,267,521		8,857,532
Emaar Properties PJSC	31,692,952		43,227,663
Emirates Telecommunications Group Co. PJSC	15,392,905		71,031,605
Eshraq Properties Co. PJSC(a)	16,596,015		2,575,372
First Abu Dhabi Bank PJSC	13,011,084		52,424,770
			324,188,147
Total Common Stocks — 96.7% (Cost: $43,108,031,774)			47,467,147,631
Preferred Stocks
Brazil — 1.9%
Alpargatas SA, Preference Shares, NVS	1,476,700		4,336,805
Banco ABC Brasil SA, Preference Shares, NVS	1,013,305		3,627,642
Banco Bradesco SA, Preference Shares, NVS	27,309,802		188,114,895

Security	Shares		Value
Brazil (continued)
Banco do Estado do Rio Grande do Sul SA, Class B, Preference Shares, NVS	1,639,900	$	5,831,056
Bradespar SA, Preference Shares, NVS	2,156,900		16,265,353
Braskem SA, Class A, Preference Shares, NVS	1,472,300		21,158,439
Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS(a)	1,895,500		8,327,116
Cia. Brasileira de Distribuicao, Preference Shares, NVS	1,319,000		26,145,659
Cia. de Saneamento do Parana, Preference Shares, NVS	2,007,209		4,140,986
Cia. Energetica de Minas Gerais, Preference Shares, NVS	7,399,194		13,397,244
Cia. Energetica de Sao Paulo, Class B, Preference Shares, NVS	1,659,600		6,726,856
Cia. Energetica do Ceara, Class A, Preference Shares, NVS	93,400		983,850
Cia. Paranaense de Energia, Preference Shares, NVS	951,600		4,709,382
Gerdau SA, Preference Shares, NVS	8,765,774		34,126,117
Gol Linhas Aereas Inteligentes SA, Preference Shares, NVS	1,100,100		2,993,161
Itau Unibanco Holding SA, Preference Shares, NVS.	26,392,388		270,771,642
Itausa-Investimentos Itau SA, Preference Shares, NVS	37,460,377		87,193,276
Lojas Americanas SA, Preference Shares, NVS	6,191,010		23,441,119
Marcopolo SA, Preference Shares, NVS	4,993,286		4,593,227
Metalurgica Gerdau SA, Preference Shares, NVS	6,277,736		11,976,167
Petroleo Brasileiro SA, Preference Shares, NVS	32,312,908		151,051,336
Telefonica Brasil SA, Preference Shares, NVS	3,518,440		34,175,862
			924,087,190
Chile — 0.1%
Embotelladora Andina SA, Class B, Preference Shares	2,459,833		9,512,188
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares	989,948		43,007,583
			52,519,771
Colombia — 0.1%
Avianca Holdings SA, Preference Shares, NVS	3,850,208		2,684,648
Bancolombia SA, Preference Shares, NVS	4,025,759		43,753,165
Grupo Aval Acciones y Valores SA, Preference Shares, NVS	34,560,005		13,576,214
Grupo de Inversiones Suramericana SA, Preference Shares, NVS	680,982		7,878,178
			67,892,205
Russia — 0.1%
Surgutneftegas PJSC,Preference Shares, NVS	57,528,977		31,961,610
Transneft PJSC, Preference Shares	2,163		4,576,249
			36,537,859
South Korea — 0.7%
Amorepacific Corp., Preference Shares, NVS	81,771		10,614,840
Hyundai Motor Co. Preference Shares, NVS	176,111		12,387,811
Series 2, Preference Shares, NVS	292,733		22,510,843
LG Chem Ltd., Preference Shares, NVS	62,790		11,281,499
LG Household & Health Care Ltd., Preference Shares, NVS	17,858		12,016,028

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 31

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
South Korea (continued)
Samsung Electronics Co. Ltd., Preference Shares, NVS		7,173,461	$	255,838,298
				324,649,319
Total Preferred Stocks — 2.9% (Cost: $1,431,678,648)				1,405,686,344
Rights
China — 0.0%
China Everbright International Ltd., NVS (Expires 09/13/18)(a)		8,138,148		632,480
Total Rights — 0.0% (Cost: $0)				632,480
Warrants
Thailand — 0.0%
BTS Group Holdings PCL (Expires 08/01/19)(a)		6,377,055		2
VGI Global Media PCL (Expires 12/31/22)(a)		6,082,880		2
				4
Total Warrants — 0.0% (Cost: $0)				4
Short-Term Investments
Money Market Funds — 5.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		2,670,933,233		2,671,734,514

Security	Shares		Value
Money Market Funds (continued)
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(f)(g)		110,463,488	$	110,463,488
				2,782,198,002
Total Short-Term Investments — 5.6% (Cost: $2,781,565,667)				2,782,198,002
Total Investments in Securities — 105.2% (Cost: $47,321,276,089)				51,655,664,461
Other Assets, Less Liabilities — (5.2)%				(2,575,938,877	)
Net Assets — 100.0%			$	49,079,725,584

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

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

^(f)  Affiliate of the Fund.

^(g)  Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss	)(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		2,544,586,672	126,346,561			2,670,933,233	$	2,671,734,514	$	52,553,227	(b)	$	(166,484	)	$	326,475
BlackRock Cash Funds: Treasury, SL Agency Shares		111,111,661	(648,173	)		110,463,488		110,463,488		1,328,581			—			—
							$	2,782,198,002	$	53,881,808		$	(166,484	)	$	326,475

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Emerging Markets E-Mini		2,647		09/21/18	$	139,616	$	(3,071,376	)

32 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® Core MSCI Emerging Markets ETF
August 31, 2018

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Consolidated Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	3,071,376

^(a)  Represents cumulative appreciation (depreciation) 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.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Consolidated Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(991,302	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(10,041,554	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	135,812,101

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.

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, refer to the Notes to Consolidated Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.

	Level 1			Level 2		Level 3		Total
Investments
Assets
Common Stocks	$	46,995,432,261		$	451,047,837	$	20,667,533	$	47,467,147,631
Preferred Stocks		1,405,686,344			—		—		1,405,686,344
Rights		—			632,480		—		632,480
Warrants		—			4		—		4
Money Market Funds		2,782,198,002			—		—		2,782,198,002
	$	51,183,316,607		$	451,680,321	$	20,667,533	$	51,655,664,461
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(3,071,376	)	$	—	$	—	$	(3,071,376	)

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

See notes to consolidated financial statements.

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 33

Consolidated Schedule of Investments	iShares® MSCI BRIC ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Brazil — 7.6%
Ambev SA		380,065	$	1,738,847
Atacadao Distribuicao Comercio e Industria Ltda		30,000		105,871
B3 SA - Brasil, Bolsa, Balcao		170,069		898,207
Banco Bradesco SA		80,039		487,799
Banco do Brasil SA		70,089		512,046
Banco Santander Brasil SA, NVS		30,000		251,936
BB Seguridade Participacoes SA		60,000		356,496
BR Malls Participacoes SA(a)		62,718		139,285
BRF SA(a)		40,000		195,432
CCR SA		100,000		227,179
Centrais Eletricas Brasileiras SA(a)		20,000		76,794
Cia. de Saneamento Basico do Estado de Sao Paulo		30,000		177,666
Cia. Siderurgica Nacional SA(a)		50,000		106,551
Cielo SA		100,021		366,573
Cosan SA		10,000		84,464
EDP - Energias do Brasil SA		20,000		65,095
Embraer SA		50,000		237,858
Engie Brasil Energia SA		10,000		89,561
Equatorial Energia SA		10,000		138,346
Fibria Celulose SA		20,041		385,148
Hypera SA		30,000		199,510
JBS SA		70,052		159,823
Klabin SA, NVS		60,000		310,915
Kroton Educacional SA		110,064		273,016
Localiza Rent a Car SA		40,079		209,437
Lojas Renner SA		60,060		412,246
M. Dias Branco SA		10,000		102,692
Magazine Luiza SA		10,000		316,133
Multiplan Empreendimentos Imobiliarios SA		20,030		90,570
Natura Cosmeticos SA		10,000		70,387
Odontoprev SA		20,000		63,591
Petrobras Distribuidora SA		30,000		144,026
Petroleo Brasileiro SA		240,000		1,286,182
Porto Seguro SA		10,000		133,201
Raia Drogasil SA		20,050		374,712
Rumo SA(a)		90,000		310,842
Sul America SA, NVS		20,089		111,998
Suzano Papel e Celulose SA		30,000		344,482
TIM Participacoes SA		70,069		209,011
Ultrapar Participacoes SA		30,000		299,774
Vale SA		250,029		3,253,939
WEG SA		67,672		314,372
				15,632,013
China — 62.9%
3SBio Inc.(b)		100,000		190,855
51job Inc., ADR(a)		2,100		162,351
58.com Inc., ADR(a)		7,300		555,384
AAC Technologies Holdings Inc.		64,000		709,399
Agile Group Holdings Ltd.		200,000		326,670
Agricultural Bank of China Ltd., Class A		184,800		98,187
Agricultural Bank of China Ltd., Class H		2,200,000		1,065,117
Air China Ltd., Class H		200,000		187,542
Alibaba Group Holding Ltd., ADR(a)		91,200		15,960,912
Alibaba Health Information Technology Ltd.(a)		278,000		281,227
Alibaba Pictures Group Ltd.(a)		1,000,000		121,036
Aluminum Corp. of China Ltd., Class H(a)		400,000		169,196
Angang Steel Co. Ltd., Class A		50,500		45,310
Anhui Conch Cement Co. Ltd., Class H		100,000		609,003

Security	Shares		Value
China (continued)
ANTA Sports Products Ltd.		100,040	$	544,880
Anxin Trust Co. Ltd., Class A		42,400		34,071
Autohome Inc., ADR		4,700		388,267
AviChina Industry & Technology Co. Ltd., Class H		200,000		115,940
BAIC Motor Corp. Ltd., Class H(b)		150,000		126,132
Baidu Inc., ADR(a)		21,800		4,937,264
Bank of China Ltd., Class H		6,400,000		2,878,365
Bank of Communications Co. Ltd., Class H		700,200		505,820
Baozun Inc., ADR(a)		1,900		101,441
BBMG Corp., Class H		200,000		74,405
Beijing Capital International Airport Co. Ltd., Class H		200,000		213,023
Beijing Enterprises Holdings Ltd.		50,000		239,843
Beijing Enterprises Water Group Ltd.		400,000		218,120
BOC Aviation Ltd.(b)		20,000		146,517
BOE Technology Group Co. Ltd., Class A		70,000		34,938
Brilliance China Automotive Holdings Ltd.		200,000		316,987
BYD Co. Ltd., Class H(c)		50,000		297,175
BYD Electronic International Co. Ltd.		50,000		52,555
CGN Power Co. Ltd., Class H(b)		700,000		165,883
China Agri-Industries Holdings Ltd.		100,000		39,751
China Cinda Asset Management Co. Ltd., Class H		800,000		206,908
China CITIC Bank Corp. Ltd., Class H		700,000		437,004
China Coal Energy Co. Ltd., Class H		200,000		85,107
China Communications Construction Co. Ltd., Class H		300,000		297,749
China Communications Services Corp. Ltd., Class H		200,800		166,291
China Conch Venture Holdings Ltd.		150,000		515,996
China Construction Bank Corp., Class A		40,000		40,280
China Construction Bank Corp., Class H		7,600,370		6,729,933
China Eastern Airlines Corp. Ltd., Class A		99,700		84,347
China Everbright Bank Co. Ltd., Class H		309,000		129,129
China Everbright International Ltd.		200,000		168,431
China Evergrande Group(a)(c)		200,000		717,298
China First Capital Group Ltd.(a)		200,000		107,021
China Galaxy Securities Co. Ltd., Class H		250,000		122,310
China Gas Holdings Ltd.		140,000		445,031
China Grand Automotive Services Co. Ltd., Class A		10,000		9,075
China Huarong Asset Management Co. Ltd., Class H(b)		800,000		166,138
China Huishan Dairy Holdings Co. Ltd.(a)(d)		51,450		983
China International Capital Corp. Ltd., Class H(b)		80,000		146,364
China International Marine Containers Group Co. Ltd., Class H		30,000		31,915
China Jinmao Holdings Group Ltd.		400,000		188,561
China Life Insurance Co. Ltd., Class H		600,000		1,356,114
China Literature Ltd.(a)(b)(c)		20,000		140,657
China Longyuan Power Group Corp. Ltd., Class H		200,000		168,431
China Medical System Holdings Ltd.		104,000		172,253
China Mengniu Dairy Co. Ltd.		200,000		577,151
China Merchants Bank Co. Ltd., Class A		41,600		172,255
China Merchants Bank Co. Ltd., Class H		300,456		1,152,228
China Merchants Port Holdings Co. Ltd.		200,000		408,210
China Minsheng Banking Corp. Ltd., Class H		550,000		393,813
China Mobile Ltd.		500,000		4,701,296
China Molybdenum Co. Ltd., Class H		300,000		123,075
China National Building Material Co. Ltd., Class H		246,000		230,050
China National Nuclear Power Co. Ltd., Class A		72,400		61,993
China Overseas Land & Investment Ltd.		400,800		1,268,952
China Pacific Insurance Group Co. Ltd., Class H		220,000		819,860
China Petroleum &Chemical Corp., Class H		2,000,600		2,011,076
China Power International Development Ltd.		200,000		43,573
China Railway Construction Corp. Ltd., Class H		162,000		195,872

34 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI BRIC ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
China Railway Group Ltd., Class H		300,000	$	259,145
China Reinsurance Group Corp., Class H		400,000		78,992
China Resources Beer Holdings Co. Ltd.		158,000		672,349
China Resources Cement Holdings Ltd.		200,000		233,408
China Resources Gas Group Ltd.		89,000		405,375
China Resources Land Ltd.		228,444		796,028
China Resources Pharmaceutical Group Ltd.(b)		150,000		240,034
China Resources Power Holdings Co. Ltd.		200,200		360,666
China Shenhua Energy Co. Ltd., Class H		300,000		668,884
China Southern Airlines Co. Ltd., Class H		200,000		132,248
China State Construction Engineering Corp. Ltd., Class A		70,000		55,327
China State Construction International Holdings Ltd.		200,000		208,182
China Taiping Insurance Holdings Co. Ltd.		120,040		380,817
China Telecom Corp. Ltd., Class H		1,000,000		470,130
China Tower Corp. Ltd., Class H(a)(b)		2,800,000		428,085
China Traditional Chinese Medicine Holdings Co. Ltd.		200,000		145,753
China Travel International Investment Hong Kong Ltd.		200,000		64,977
China Unicom Hong Kong Ltd.		443,900		516,353
China Vanke Co. Ltd., Class H		100,001		346,549
China Yangtze Power Co. Ltd., Class A		20,000		46,311
China Zhongwang Holdings Ltd.		160,000		75,017
Chong Sing Holdings FinTech Group Ltd.(a)		1,200,000		84,088
Chongqing Changan Automobile Co. Ltd., Class B		40,000		35,062
Chongqing Rural Commercial Bank Co. Ltd., Class H		200,000		107,786
CIFI Holdings Group Co. Ltd.		200,000		115,940
CITIC Ltd.		500,000		710,928
CITIC Securities Co. Ltd., Class H		200,000		358,267
CNOOC Ltd.		1,400,000		2,475,761
COSCO SHIPPING Development Co. Ltd., Class A(a)		104,000		35,163
COSCO SHIPPING Development Co. Ltd., Class H(a)		100,000		14,524
COSCO SHIPPING Holdings Co. Ltd., Class A(a)		41,600		24,904
COSCO SHIPPING Holdings Co. Ltd., Class H(a)		200,000		83,324
COSCO SHIPPING Ports Ltd.		200,000		211,749
Country Garden Holdings Co. Ltd.		600,046		892,932
CRRC Corp. Ltd., Class H		375,400		310,884
CSPC Pharmaceutical Group Ltd.		400,000		1,009,059
Ctrip.com International Ltd., ADR(a)		31,300		1,225,395
Dali Foods Group Co. Ltd.(b)		150,000		108,932
Datang International Power Generation Co. Ltd., Class H.		200,000		51,217
Dongfeng Motor Group Co. Ltd., Class H		200,000		223,471
ENN Energy Holdings Ltd.		74,000		674,107
Everbright Securities Co. Ltd., Class A		53,197		81,056
Fang Holdings Ltd., ADR(a)		16,300		50,041
Far East Horizon Ltd.		200,000		189,326
Focus Media Information Technology Co. Ltd., Class A		53,239		66,937
Fosun International Ltd.		200,000		361,834
Founder Securities Co. Ltd., Class A		63,999		55,830
Fullshare Holdings Ltd.(c)		585,000		234,033
Future Land Development Holdings Ltd.		200,000		154,671
Fuyao Glass Industry Group Co. Ltd., Class H(b)		40,000		147,537
GCL-Poly Energy Holdings Ltd.(a)		1,100,000		74,278
GDS Holdings Ltd., ADR(a)		4,700		179,399
Geely Automobile Holdings Ltd.		400,000		850,055
GF Securities Co. Ltd., Class H		100,000		125,495
GOME Retail Holdings Ltd.(a)		900,400		87,185
Great Wall Motor Co. Ltd., Class H(c)		250,000		153,843
Greentown China Holdings Ltd.		50,000		50,326
Guangdong Investment Ltd.		200,000		354,699
Guangzhou Automobile Group Co. Ltd., Class H		306,235		332,419

Security	Shares		Value
China (continued)
Guangzhou R&F Properties Co. Ltd., Class H		80,000	$	161,449
Guotai Junan Securities Co. Ltd., Class A		63,200		135,242
Guotai Junan Securities Co. Ltd., Class H(b)		20,000		41,280
Haier Electronics Group Co. Ltd.		120,000		312,655
Haitong Securities Co. Ltd., Class H		240,000		212,208
Hanergy Thin Film Power Group Ltd.(a)(d)		7,709		—
Hangzhou Hikvision Digital Technology Co. Ltd., Class A		10,000		46,033
Hengan International Group Co. Ltd.		50,000		450,063
HengTen Networks Group Ltd.(a)		1,600,000		67,271
Huadian Power International Corp. Ltd., Class A		50,000		27,298
Huaneng Power International Inc., Class H		400,000		256,851
Huaneng Renewables Corp. Ltd., Class H		400,000		127,916
Huatai Securities Co. Ltd., Class H(b)		140,000		209,762
Huayu Automotive Systems Co. Ltd., Class A		10,699		31,993
Huazhu Group Ltd., ADR		10,500		361,410
Hubei Biocause Pharmaceutical Co. Ltd., Class A		53,200		49,602
Hubei Energy Group Co. Ltd., Class A		52,400		31,139
Industrial & Commercial Bank of China Ltd., Class A		75,600		60,196
Industrial & Commercial Bank of China Ltd., Class H		5,400,050		3,976,645
Industrial Bank Co. Ltd., Class A		43,200		95,352
Inner Mongolia Yili Industrial Group Co. Ltd., Class A		10,000		35,421
Inner Mongolia Yitai Coal Co. Ltd., Class B		80,000		96,240
JD.com Inc., ADR(a)		57,100		1,787,230
Jiangxi Copper Co. Ltd., Class H		100,000		118,488
Kaisa Group Holdings Ltd.		200,000		74,405
Kangmei Pharmaceutical Co. Ltd., Class A		10,000		30,488
Kingboard Holdings Ltd.		50,000		177,732
Kingboard Laminates Holdings Ltd.		100,000		94,408
Kingdee International Software Group Co. Ltd.		200,000		227,803
Kingsoft Corp. Ltd.		100,000		181,682
Kunlun Energy Co. Ltd.		200,000		208,946
KWG Property Holdings Ltd.		100,000		106,894
Lee & Man Paper Manufacturing Ltd.		100,000		95,810
Legend Holdings Corp., Class H(b)		20,000		61,920
Lenovo Group Ltd.		600,000		391,392
Logan Property Holdings Co. Ltd.		200,000		249,717
Longfor Group Holdings Ltd.		100,000		277,746
Luxshare Precision Industry Co. Ltd., Class A		13,570		36,944
Luye Pharma Group Ltd.(b)(c)		100,000		94,153
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A		12,638		30,577
Meitu Inc.(a)(b)(c)		150,000		81,222
Metallurgical Corp. of China Ltd., Class A		113,200		59,316
Midea Group Co. Ltd., Class A		10,000		60,889
Momo Inc., ADR(a)		9,200		425,868
NetEase Inc., ADR		6,200		1,225,802
New China Life Insurance Co. Ltd., Class H		70,000		317,051
New Hope Liuhe Co. Ltd., Class A		52,400		46,478
New Oriental Education & Technology Group Inc., ADR		11,400		896,040
Nexteer Automotive Group Ltd.		100,000		168,431
Nine Dragons Paper Holdings Ltd.		100,000		113,392
Ningbo Zhoushan Port Co. Ltd., Class A		40,000		23,712
Noah Holdings Ltd., ADR(a)		2,300		108,192
People’s Insurance Co. Group of China Ltd. (The), Class H		600,000		259,909
PetroChina Co. Ltd., Class H		1,600,000		1,190,485
PICC Property & Casualty Co. Ltd., Class H		602,322		678,379
Ping An Insurance Group Co. of China Ltd., Class A		20,800		191,740
Ping An Insurance Group Co. of China Ltd., Class H		400,000		3,852,769
Postal Savings Bank of China Co. Ltd., Class H(b)		200,000		117,724

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 35

Consolidated Schedule of Investments  (continued)	iShares® MSCI BRIC ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
Qingdao Haier Co. Ltd., Class A		10,000	$	21,794
Sanan Optoelectronics Co. Ltd., Class A		42,396		100,962
SDIC Capital Co. Ltd., Class A		10,000		12,866
SDIC Power Holdings Co. Ltd., Class A		41,599		44,874
Semiconductor Manufacturing International Corp.(a)		200,200		236,193
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		184,000		174,180
Shanghai 2345 Network Holding Group Co. Ltd., Class A		13,750		9,016
Shanghai Electric Group Co. Ltd., Class A		53,200		38,856
Shanghai Electric Group Co. Ltd., Class H		204,000		63,938
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H		53,500		216,075
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		80,080		108,028
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		70,000		183,720
Shanghai Pudong Development Bank Co. Ltd., Class A		50,828		76,851
Shenergy Co. Ltd., Class A		52,400		38,809
Shenwan Hongyuan Group Co. Ltd., Class A		191,944		125,301
Shenzhen Energy Group Co. Ltd., Class A		41,600		31,723
Shenzhen International Holdings Ltd.		100,000		187,542
Shenzhou International Group Holdings Ltd.		55,000		721,757
Shimao Property Holdings Ltd.		100,000		298,131
Shui On Land Ltd.		250,000		59,562
Sichuan Chuantou Energy Co. Ltd., Class A		52,400		62,201
Sihuan Pharmaceutical Holdings Group Ltd.		300,000		66,506
SINA Corp./China(a)		5,000		354,800
Sino Biopharmaceutical Ltd.		500,000		633,210
Sino-Ocean Group Holding Ltd.		250,000		127,088
Sinopec Engineering Group Co. Ltd., Class H		100,000		104,218
Sinopec Shanghai Petrochemical Co. Ltd., Class H		201,000		118,056
Sinopharm Group Co. Ltd., Class H		80,000		398,018
Sinotrans Ltd., Class H		100,000		41,917
Sinotruk Hong Kong Ltd.(c)		50,000		74,660
SOHO China Ltd.		200,000		80,266
SSY Group Ltd.		200,000		186,013
Sun Art Retail Group Ltd.		200,000		230,606
Sunac China Holdings Ltd.		200,000		654,869
Suning.com Co. Ltd., Class A		42,400		76,830
Sunny Optical Technology Group Co. Ltd.		60,000		762,527
TAL Education Group, Class A, ADR(a)		26,400		781,440
Tencent Holdings Ltd.		450,000		19,493,177
Tingyi Cayman Islands Holding Corp.		200,000		357,248
Tongwei Co. Ltd., Class A		10,695		10,019
Towngas China Co. Ltd.		100,000		92,115
TravelSky Technology Ltd., Class H		100,000		256,087
Tsingtao Brewery Co. Ltd., Class H		40,000		190,090
Uni-President China Holdings Ltd.		100,000		98,485
Vipshop Holdings Ltd., ADR(a)		34,200		238,716
Want Want China Holdings Ltd.(c)		400,000		326,670
Wanxiang Qianchao Co. Ltd., Class A		31,600		28,214
Weibo Corp., ADR(a)(c)		3,700		283,938
Weichai Power Co. Ltd., Class H		201,100		213,170
Wuxi Biologics Cayman Inc.(a)(b)(c)		50,000		493,700
Xinjiang Goldwind Science & Technology Co. Ltd., Class A		31,599		56,287
Xinjiang Goldwind Science & Technology Co. Ltd., Class H		20,000		21,404
Xinyi Solar Holdings Ltd.		264,000		78,707
Yanzhou Coal Mining Co. Ltd., Class H		200,000		231,115
Yonghui Superstores Co. Ltd., Class A		63,993		71,841

Security	Shares		Value
China (continued)
Youngor Group Co. Ltd., Class A		41,699	$	43,273
Yuexiu Property Co. Ltd.		400,000		72,367
Yum China Holdings Inc.		28,800		1,113,984
Yuzhou Properties Co. Ltd.		100,000		53,128
YY Inc., ADR(a)		3,600		275,148
Zhaojin Mining Industry Co. Ltd., Class H		50,000		38,986
Zhejiang Longsheng Group Co. Ltd., Class A		42,400		65,287
Zhejiang Zheneng Electric Power Co. Ltd., Class A		40,000		28,571
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)		10,000		42,872
Zhongjin Gold Corp. Ltd., Class A		10,000		9,719
Zhongsheng Group Holdings Ltd		50,000		109,697
Zhuzhou CRRC Times Electric Co. Ltd., Class H		50,000		269,783
Zijin Mining Group Co. Ltd., Class A		40,000		19,906
Zijin Mining Group Co. Ltd., Class H		431,000		160,893
ZTE Corp., Class H(a)		64,848		125,914
				128,917,057
India — 18.7%
Adani Ports &Special Economic Zone Ltd.		42,701		230,674
Ambuja Cements Ltd.		47,300		160,954
Ashok Leyland Ltd.		97,422		177,259
Asian Paints Ltd.		22,700		439,254
Aurobindo Pharma Ltd.		21,400		215,052
Avenue Supermarts Ltd.(a)(b)		9,500		214,910
Axis Bank Ltd.(a)		142,900		1,308,089
Bajaj Auto Ltd.		6,700		259,290
Bajaj Finance Ltd.		14,000		563,859
Bajaj Finserv Ltd.		3,100		294,929
Bharat Forge Ltd		16,605		158,977
Bharat Heavy Electricals Ltd.		65,300		74,206
Bharat Petroleum Corp. Ltd.		60,400		308,360
Bharti Airtel Ltd.		110,800		599,645
Bharti Infratel Ltd.		25,900		104,767
Bosch Ltd.		600		186,027
Britannia Industries Ltd.		1,800		170,968
Cadila Healthcare Ltd.		16,300		92,558
Cipla Ltd./India		28,100		262,335
Coal India Ltd.		54,600		220,128
Container Corp. of India Ltd.		9,500		87,310
Dabur India Ltd.		41,700		281,474
Dr. Reddy’s Laboratories Ltd.		9,100		319,729
Eicher Motors Ltd.		1,100		435,180
GAIL India Ltd.		58,100		304,892
Glenmark Pharmaceuticals Ltd.		9,500		89,158
Godrej Consumer Products Ltd.		18,900		386,960
Grasim Industries Ltd.		27,200		409,383
Havells India Ltd.		20,200		206,553
HCL Technologies Ltd.		44,400		655,080
Hero MotoCorp Ltd.		3,600		165,153
Hindalco Industries Ltd.		91,900		308,315
Hindustan Petroleum Corp. Ltd.		48,600		173,908
Hindustan Unilever Ltd.		51,600		1,295,052
Housing Development Finance Corp. Ltd.		125,700		3,431,013
ICICI Bank Ltd.		188,600		911,008
Idea Cellular Ltd.(a)		156,500		108,892
Indiabulls Housing Finance Ltd.		22,200		394,147
Indian Oil Corp. Ltd.		116,500		255,499
Infosys Ltd.		137,900		2,801,892
InterGlobe Aviation Ltd.(b)		7,400		96,910
ITC Ltd.		266,900		1,203,616
JSW Steel Ltd.		68,900		385,027

36 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI BRIC ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
India (continued)
Larsen & Toubro Ltd.		38,400	$	741,484
LIC Housing Finance Ltd.		23,400		171,855
Lupin Ltd.		17,300		227,195
Mahindra & Mahindra Financial Services Ltd.		24,489		168,891
Mahindra & Mahindra Ltd.		59,100		804,346
Marico Ltd.		35,200		183,354
Maruti Suzuki India Ltd.		8,300		1,064,488
Motherson Sumi Systems Ltd.		51,162		219,360
Nestle India Ltd.		1,800		293,940
NTPC Ltd.		138,900		335,861
Oil & Natural Gas Corp. Ltd.		118,900		301,834
Page Industries Ltd.		400		194,099
Petronet LNG Ltd.		44,800		156,679
Pidilite Industries Ltd.		8,100		133,463
Piramal Enterprises Ltd.		6,590		297,300
Power Grid Corp. of India Ltd.		114,900		326,428
Reliance Industries Ltd.		226,000		3,956,404
Rural Electrification Corp. Ltd.		57,800		97,629
Shree Cement Ltd.		700		186,786
Shriram Transport Finance Co. Ltd.		12,100		227,887
Siemens Ltd.		5,100		73,326
State Bank of India(a)		136,300		594,963
Sun Pharmaceutical Industries Ltd.		66,000		607,506
Tata Consultancy Services Ltd.		72,600		2,127,447
Tata Motors Ltd.(a)		123,900		467,292
Tata Power Co. Ltd. (The)		91,700		99,165
Tata Steel Ltd.		29,700		251,456
Tech Mahindra Ltd.		38,100		411,371
Titan Co. Ltd.		25,600		321,921
UltraTech Cement Ltd.		7,400		466,946
United Spirits Ltd.(a)		23,500		208,821
UPL Ltd.		28,900		291,460
Vedanta Ltd.		110,900		356,031
Wipro Ltd.		90,800		385,661
Yes Bank Ltd.		135,600		656,719
Zee Entertainment Enterprises Ltd.		37,000		260,808
				38,418,568
Russia — 6.6%
Alrosa PJSC		210,000		316,121
Gazprom PJSC		704,824		1,569,153
Gazprom PJSC, ADR, NVS		68,600		302,526
Inter RAO UES PJSC		2,300,000		137,958
LUKOIL PJSC		21,900		1,528,363
LUKOIL PJSC, ADR, NVS		11,600		800,400
Magnit PJSC, GDR, NVS(e)		28,300		417,991
Magnitogorsk Iron & Steel Works PJSC		190,000		136,660
MMC Norilsk Nickel PJSC		5,100		849,574
Mobile TeleSystems PJSC, ADR, NVS		39,700		307,675
Moscow Exchange MICEX-RTS PJSC		96,000		139,737
Novatek PJSC, GDR, NVS(e)		7,300		1,219,100
Novolipetsk Steel PJSC		101,000		248,415
PhosAgro PJSC, GDR, NVS(e)		9,900		131,175
Polyus PJSC		2,772		179,974
Rosneft Oil Co. PJSC		90,722		586,865
Rosneft Oil Co. PJSC, GDR, NVS(e)		3,998		25,475
RusHydro PJSC		5,300,200		50,119
Sberbank of Russia PJSC		848,900		2,293,856
Severstal PJSC		17,000		274,130
Surgutneftegas PJSC		440,010		187,753
Surgutneftegas PJSC, ADR, NVS		8,100		33,696

Security	Shares		Value
Russia (continued)
Tatneft PJSC		120,003	$	1,395,236
VTB Bank PJSC		254,006,001		156,129
X5 Retail Group NV, GDR(e)		8,900		210,100
				13,498,181
Total Common Stocks — 95.8% (Cost: $181,231,232)				196,465,819
Preferred Stocks
Brazil — 3.9%
Banco Bradesco SA, Preference Shares, NVS		270,002		1,859,823
Braskem SA, Class A, Preference Shares, NVS		10,000		143,710
Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS(a)		20,082		88,222
Cia. Brasileira de Distribuicao, Preference Shares, NVS		10,356		205,280
Cia. Energetica de Minas Gerais, Preference Shares, NVS		70,087		126,902
Gerdau SA, Preference Shares, NVS		80,000		311,449
Itau Unibanco Holding SA, Preference Shares, NVS		250,071		2,565,594
Itausa-Investimentos Itau SA, Preference Shares, NVS		350,044		814,767
Lojas Americanas SA, Preference Shares, NVS		60,104		227,573
Petroleo Brasileiro SA, Preference Shares, NVS		310,014		1,449,205
Telefonica Brasil SA, Preference Shares, NVS		30,064		292,022
				8,084,547
Russia — 0.2%
Surgutneftegas PJSC, Preference Shares, NVS		580,000		322,233
Total Preferred Stocks — 4.1% (Cost: $7,255,029)				8,406,780
Rights
China — 0.0%
China Everbright International Ltd., NVS (Expires 09/13/18)(a)		80,000		6,218
Total Rights — 0.0% (Cost: $0)				6,218
Short-Term Investments
Money Market Funds — 1.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		3,027,232		3,028,140
Total Short-Term Investments — 1.5% (Cost: $3,027,444)				3,028,140
Total Investments in Securities — 101.4% (Cost: $191,513,705)				207,906,957
Other Assets, Less Liabilities — (1.4)%				(2,842,811	)
Net Assets — 100.0%			$	205,064,146

^(a)  Non-income producing security.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  All or a portion of this security is on loan.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 37

Consolidated Schedule of Investments  (continued)	iShares® MSCI BRIC ETF
August 31, 2018

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

^(f)  Affiliate of the Fund.

^(g)  Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss	)(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		25,497,132	(22,469,900	)		3,027,232	$	3,028,140	$	108,720	(b)	$	(1,995	)	$	(1,441	)
BlackRock Cash Funds: Treasury, SL Agency Shares		159,468	(159,468	)		—		—		4,883			—			—
							$	3,028,140	$	113,603		$	(1,995	)	$	(1,441	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Consolidated Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.

	Level 1		Level 2		Level 3		Total
Investments
Assets
Common Stocks	$	196,464,836	$	—	$	983	$	196,465,819
Preferred Stocks		8,406,780		—		—		8,406,780
Rights		—		6,218		—		6,218
Money Market Funds		3,028,140		—		—		3,028,140
	$	207,899,756	$	6,218	$	983	$	207,906,957

See notes to consolidated financial statements.

38 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Common Stocks
China — 41.1%
3SBio Inc.(a)	141,000	$	269,105
51job Inc., ADR(b)(c)	2,796		216,159
58.com Inc., ADR(b)	10,406		791,688
AAC Technologies Holdings Inc.(c)	83,500		925,544
Agile Group Holdings Ltd.	178,000		290,736
Agricultural Bank of China Ltd., Class A	95,300		50,634
Agricultural Bank of China Ltd., Class H	3,302,000		1,598,644
Air China Ltd., Class H	204,000		191,293
Alibaba Group Holding Ltd., ADR(b)(c)	128,327		22,458,508
Alibaba Health Information Technology Ltd.(b)	206,000		208,391
Alibaba Pictures Group Ltd.(b)(c)	580,000		70,201
Aluminum Corp. of China Ltd., Class H(b)	482,000		203,881
Angang Steel Co. Ltd., Class A	26,500		23,777
Angang Steel Co. Ltd., Class H(c)	126,000		123,931
Anhui Conch Cement Co. Ltd., Class A	4,500		24,456
Anhui Conch Cement Co. Ltd., Class H	143,000		870,874
ANTA Sports Products Ltd.	122,000		664,488
Autohome Inc., ADR	6,662		550,348
AviChina Industry & Technology Co. Ltd., Class H	256,000		148,403
BAIC Motor Corp. Ltd., Class H(a)	191,500		161,029
Baidu Inc., ADR(b)	31,238		7,074,782
Bank of Beijing Co. Ltd., Class A	45,200		38,570
Bank of China Ltd., Class A	80,100		41,620
Bank of China Ltd., Class H	8,955,000		4,027,462
Bank of Communications Co. Ltd., Class A	48,400		39,813
Bank of Communications Co. Ltd., Class H	981,000		708,669
Bank of Jiangsu Co. Ltd., Class A	19,599		18,044
Bank of Ningbo Co. Ltd., Class A	10,100		24,806
Bank of Shanghai Co. Ltd., Class A	14,800		25,367
Baoshan Iron & Steel Co. Ltd., Class A	22,200		25,605
Baozun Inc., ADR(b)	2,054		109,663
BBMG Corp., Class H	261,000		97,099
Beijing Capital International Airport Co. Ltd., Class H	188,000		200,242
Beijing Enterprises Holdings Ltd.	56,500		271,022
Beijing Enterprises Water Group Ltd.	650,000		354,445
BOC Aviation Ltd.(a)	25,400		186,077
BOE Technology Group Co. Ltd., Class A	35,000		17,469
Brilliance China Automotive Holdings Ltd.	338,000		535,708
BYD Co. Ltd., Class H(c)	74,500		442,791
BYD Electronic International Co. Ltd.	75,000		78,833
CAR Inc.(b)	90,000		72,239
CGN Power Co. Ltd., Class H(a)	1,280,000		303,329
Changjiang Securities Co. Ltd., Class A	21,800		16,114
China Agri-Industries Holdings Ltd.	192,000		76,322
China Cinda Asset Management Co. Ltd., Class H	1,020,000		263,808
China CITIC Bank Corp. Ltd., Class H	1,020,000		636,777
China Coal Energy Co. Ltd., Class H	205,000		87,235
China Communications Construction Co. Ltd., Class H	508,000		504,188
China Communications Services Corp. Ltd., Class H	282,000		233,536
China Conch Venture Holdings Ltd.	186,500		641,555
China Construction Bank Corp., Class A	20,000		20,140
China Construction Bank Corp., Class H	10,869,000		9,624,221
China Eastern Airlines Corp. Ltd., Class A	52,400		44,331
China Eastern Airlines Corp. Ltd., Class H	160,000		102,333
China Everbright Bank Co. Ltd., Class A	46,000		25,114
China Everbright Bank Co. Ltd., Class H	285,000		119,099
China Everbright International Ltd.	274,000		230,751
China Everbright Ltd.	102,000		178,557

Security	Shares	Value
China (continued)
China Evergrande Group(b)(c)	301,000	$	1,079,533
China First Capital Group Ltd.(b)	370,000		197,990
China Galaxy Securities Co. Ltd., Class H	392,500		192,027
China Gas Holdings Ltd.	194,000		616,685
China Huarong Asset Management Co. Ltd., Class H(a)	1,204,000		250,038
China Huishan Dairy Holdings Co. Ltd.(b)(d)	20,200		386
China International Capital Corp. Ltd., Class H(a)	113,600		207,838
China International Marine Containers Group Co. Ltd., Class A	9,900		16,215
China International Marine Containers Group Co. Ltd., Class H	37,100		39,469
China International Travel Service Corp. Ltd., Class A	4,400		40,805
China Jinmao Holdings Group Ltd.	612,000		288,499
China Life Insurance Co. Ltd., Class H	845,000		1,909,860
China Literature Ltd.(a)(b)(c)	2,800		19,692
China Longyuan Power Group Corp. Ltd., Class H	383,000		322,546
China Medical System Holdings Ltd.	161,000		266,662
China Mengniu Dairy Co. Ltd.	312,000		900,355
China Merchants Bank Co. Ltd., Class A	22,100		91,511
China Merchants Bank Co. Ltd., Class H	438,831		1,682,887
China Merchants Port Holdings Co. Ltd.	150,000		306,158
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A	6,100		16,071
China Minsheng Banking Corp. Ltd., Class A	31,900		27,875
China Minsheng Banking Corp. Ltd., Class H	698,660		500,257
China Mobile Ltd.	696,000		6,544,204
China Molybdenum Co. Ltd., Class H	444,000		182,150
China National Building Material Co. Ltd., Class H	430,000		402,120
China National Nuclear Power Co. Ltd., Class A	48,100		41,186
China Oilfield Services Ltd., Class H	208,000		184,444
China Overseas Land & Investment Ltd.	432,000		1,367,733
China Pacific Insurance Group Co. Ltd., Class A	5,800		27,811
China Pacific Insurance Group Co. Ltd., Class H	296,200		1,103,830
China Petroleum & Chemical Corp., Class A	38,900		38,945
China Petroleum & Chemical Corp., Class H	2,876,600		2,891,663
China Power International Development Ltd.	506,000		110,240
China Railway Construction Corp. Ltd., Class A	15,799		24,512
China Railway Construction Corp. Ltd., Class H	223,000		269,626
China Railway Group Ltd., Class H	416,000		359,347
China Railway Signal & Communication Corp. Ltd., Class H(a)	153,000		108,187
China Reinsurance Group Corp., Class H	692,000		136,656
China Resources Beer Holdings Co. Ltd.	168,000		714,903
China Resources Cement Holdings Ltd.	284,000		331,440
China Resources Gas Group Ltd.	100,000		455,478
China Resources Land Ltd.	317,777		1,107,315
China Resources Pharmaceutical Group Ltd.(a)	173,000		276,839
China Resources Power Holdings Co. Ltd.	220,000		396,336
China Shenhua Energy Co. Ltd., Class H	383,500		855,056
China Southern Airlines Co. Ltd., Class H	226,000		149,440
China State Construction Engineering Corp. Ltd., Class A	58,940		46,585
China State Construction International Holdings Ltd.	226,000		235,246
China Taiping Insurance Holdings Co. Ltd.	183,900		583,408
China Telecom Corp. Ltd., Class H	1,568,000		737,163
China Tower Corp. Ltd., Class H(a)(b)	3,892,000		595,039
China Traditional Chinese Medicine Holdings Co. Ltd.	258,000		188,021
China Travel International Investment Hong Kong Ltd.	254,000		82,521
China Unicom Hong Kong Ltd.	688,000		800,296
China Vanke Co. Ltd., Class A	15,500		54,562
China Vanke Co. Ltd., Class H	142,900		495,213

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 39

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
China (continued)
China Yangtze Power Co. Ltd., Class A	22,300	$	51,637
China Zhongwang Holdings Ltd.	177,200		83,081
Chong Sing Holdings FinTech Group Ltd.(b)(c)	1,892,000		132,579
Chongqing Changan Automobile Co. Ltd., Class B	68,200		59,781
Chongqing Rural Commercial Bank Co. Ltd., Class H	272,000		146,589
CIFI Holdings Group Co. Ltd.	398,000		230,720
CITIC Ltd.	654,000		929,893
CITIC Securities Co. Ltd., Class A	10,500		24,559
CITIC Securities Co. Ltd., Class H	266,500		477,390
CNOOC Ltd.	2,013,000		3,559,791
COSCO SHIPPING Development Co. Ltd., Class A(b)	74,900		25,324
COSCO SHIPPING Development Co. Ltd., Class H(b)	381,000		55,338
COSCO SHIPPING Energy Transportation Co. Ltd., Class H	128,000		55,937
COSCO SHIPPING Holdings Co. Ltd., Class H(b)	289,500		120,611
COSCO SHIPPING Ports Ltd.	202,000		213,867
Country Garden Holdings Co. Ltd.	852,828		1,269,099
Country Garden Services Holdings Co. Ltd.(b)	46,000		78,768
CRRC Corp. Ltd., Class A	30,900		37,041
CRRC Corp. Ltd., Class H	472,750		391,504
CSPC Pharmaceutical Group Ltd.	528,000		1,331,957
Ctrip.com International Ltd., ADR(b)(c)	44,610		1,746,481
Dali Foods Group Co. Ltd.(a)	216,500		157,226
Daqin Railway Co. Ltd., Class A	18,699		23,620
Datang International Power Generation Co. Ltd., Class H	308,000		78,875
Dongfeng Motor Group Co. Ltd., Class H	314,000		350,849
ENN Energy Holdings Ltd.	87,000		792,531
Fang Holdings Ltd., ADR(b)	22,860		70,180
Far East Horizon Ltd.	265,000		250,857
Focus Media Information Technology Co. Ltd., Class A	18,200		22,883
Foshan Haitian Flavouring & Food Co. Ltd., Class A	4,500		45,118
Fosun International Ltd.	298,500		540,037
Fullshare Holdings Ltd.(c)	552,500		221,031
Future Land Development Holdings Ltd.	198,000		153,125
Fuyao Glass Industry Group Co. Ltd., Class H(a)	63,200		233,108
GCL-Poly Energy Holdings Ltd.(b)	1,612,000		108,851
GDS Holdings Ltd., ADR(b)(c)	6,602		251,998
Geely Automobile Holdings Ltd.	562,000		1,194,328
Gemdale Corp., Class A	13,000		17,410
Genscript Biotech Corp.(b)	90,000		193,785
GF Securities Co. Ltd., Class H	173,200		217,358
GOME Retail Holdings Ltd.(b)(c)	1,360,000		131,687
Great Wall Motor Co. Ltd., Class H	367,500		226,150
Gree Electric Appliances Inc. of Zhuhai, Class A(b)	4,600		26,225
Greentown China Holdings Ltd.	99,000		99,645
Guangdong Investment Ltd.	328,000		581,707
Guangzhou Automobile Group Co. Ltd., Class H	344,800		374,281
Guangzhou R&F Properties Co. Ltd., Class H	110,000		221,993
Guotai Junan Securities Co. Ltd., Class A	26,700		57,135
Guotai Junan Securities Co. Ltd., Class H(a)	67,800		139,938
Haier Electronics Group Co. Ltd.	145,000		377,792
Haitian International Holdings Ltd.	71,000		142,563
Haitong Securities Co. Ltd., Class H	378,400		334,581
Hanergy Thin Film Power Group Ltd.(b)(d)	2,513		—
Hangzhou Hikvision Digital Technology Co. Ltd., Class A	13,000		59,843
Hengan International Group Co. Ltd.	81,000		729,102
HengTen Networks Group Ltd.(b)	2,540,000		106,792
Hua Hong Semiconductor Ltd.(a)	9,000		24,538
Huadian Power International Corp. Ltd., Class H	184,000		68,453
Huaneng Power International Inc., Class H	508,000		326,201

Security	Shares	Value
China (continued)
Huaneng Renewables Corp. Ltd., Class H	552,000	$	176,524
Huatai Securities Co. Ltd., Class A(b)	10,800		24,281
Huatai Securities Co. Ltd., Class H(a)	187,800		281,381
Huaxia Bank Co. Ltd., Class A	17,100		19,397
Huazhu Group Ltd., ADR	14,726		506,869
Industrial & Commercial Bank of China Ltd., Class A	63,700		50,721
Industrial & Commercial Bank of China Ltd., Class H	7,827,000		5,763,873
Industrial Bank Co. Ltd., Class A	25,400		56,064
Industrial Securities Co. Ltd., Class A	51,600		34,213
Inner Mongolia Yili Industrial Group Co. Ltd., Class A	8,600		30,462
Inner Mongolia Yitai Coal Co. Ltd., Class B	107,200		128,962
JD.com Inc., ADR(b)	81,660		2,555,958
Jiangsu Expressway Co. Ltd., Class H	156,000		197,164
Jiangsu Hengrui Medicine Co. Ltd., Class A	5,900		57,125
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A	1,803		30,436
Jiangxi Copper Co. Ltd., Class H	156,000		184,841
Jiayuan International Group Ltd.(c)	112,000		223,746
Jihua Group Corp. Ltd., Class A	30,800		17,176
Kaisa Group Holdings Ltd.	252,000		93,751
Kangmei Pharmaceutical Co. Ltd., Class A	5,900		17,988
Kingboard Holdings Ltd.	75,500		268,375
Kingboard Laminates Holdings Ltd.	124,500		117,538
Kingdee International Software Group Co. Ltd.(c)	222,000		252,861
Kingsoft Corp. Ltd.	91,000		165,330
Kunlun Energy Co. Ltd.	388,000		405,356
Kweichow Moutai Co. Ltd., Class A	1,318		127,166
KWG Property Holdings Ltd.	141,500		151,255
Lee & Man Paper Manufacturing Ltd.	175,000		167,667
Legend Holdings Corp., Class H(a)	37,100		114,861
Lenovo Group Ltd.	806,000		525,770
Logan Property Holdings Co. Ltd.	156,000		194,779
Longfor Group Holdings Ltd.	167,500		465,224
Luye Pharma Group Ltd.(a)(c)	127,500		120,045
Luzhou Laojiao Co. Ltd., Class A	2,500		15,767
Meinian Onehealth Healthcare Holdings Co. Ltd., Class A	12,120		29,324
Meitu Inc.(a)(b)(c)	195,000		105,588
Metallurgical Corp. of China Ltd., Class A	81,600		42,758
Metallurgical Corp. of China Ltd., Class H	341,000		93,408
Midea Group Co. Ltd., Class A	6,000		36,533
MMG Ltd.(b)	264,000		132,187
Momo Inc., ADR(b)(c)	13,710		634,636
NetEase Inc., ADR	8,991		1,777,611
New China Life Insurance Co. Ltd., Class A	3,600		24,159
New China Life Insurance Co. Ltd., Class H	92,900		420,772
New Oriental Education & Technology Group Inc., ADR	16,031		1,260,037
Nexteer Automotive Group Ltd.	109,000		183,590
Nine Dragons Paper Holdings Ltd.	196,000		222,248
Noah Holdings Ltd., ADR(b)(c)	3,202		150,622
People’s Insurance Co. Group of China Ltd. (The), Class H	876,000		379,467
PetroChina Co. Ltd., Class H	2,372,000		1,764,894
PICC Property & Casualty Co. Ltd., Class H	778,740		877,073
Ping An Bank Co. Ltd., Class A	20,800		30,840
Ping An Insurance Group Co. of China Ltd., Class A	9,800		90,339
Ping An Insurance Group Co. of China Ltd., Class H	591,000		5,692,466
Poly Real Estate Group Co. Ltd., Class A	12,600		22,647
Postal Savings Bank of China Co. Ltd., Class H(a)	332,000		195,421
Qingdao Haier Co. Ltd., Class A	10,700		23,320
RiseSun Real Estate Development Co. Ltd., Class A	14,700		17,471
SAIC Motor Corp. Ltd., Class A	10,400		44,373

40 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
China (continued)
Semiconductor Manufacturing International Corp.(b)(c)	336,300	$	396,761
Shandong Weigao Group Medical Polymer Co. Ltd., Class H	232,000		219,618
Shanghai Electric Group Co. Ltd., Class H	360,000		112,831
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A	5,100		21,797
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H	61,500		248,385
Shanghai Industrial Holdings Ltd.	64,000		152,480
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B	114,380		154,299
Shanghai Pharmaceuticals Holding Co. Ltd., Class A	14,200		44,208
Shanghai Pharmaceuticals Holding Co. Ltd., Class H	91,200		239,361
Shanghai Pudong Development Bank Co. Ltd., Class A	33,600		50,803
Shenwan Hongyuan Group Co. Ltd., Class A	35,735		23,328
Shenzhen International Holdings Ltd.	97,000		181,916
Shenzhen Investment Ltd.	364,000		119,186
Shenzhou International Group Holdings Ltd.	86,000		1,128,566
Shimao Property Holdings Ltd.	137,500		409,930
Shui On Land Ltd.	376,500		89,701
Sihuan Pharmaceutical Holdings Group Ltd.	493,000		109,292
SINA Corp./China(b)	7,216		512,047
Sino Biopharmaceutical Ltd.	742,500		940,316
Sino-Ocean Group Holding Ltd.	357,500		181,736
Sinopec Engineering Group Co. Ltd., Class H	147,000		153,201
Sinopec Shanghai Petrochemical Co. Ltd., Class H	347,000		203,808
Sinopharm Group Co. Ltd., Class H	132,800		660,709
Sinotrans Ltd., Class H	217,000		90,959
Sinotruk Hong Kong Ltd.	77,500		115,723
Skyworth Digital Holdings Ltd.	204,000		66,017
SOHO China Ltd.	258,000		103,543
SSY Group Ltd.	162,000		150,671
Sun Art Retail Group Ltd.	273,000		314,777
Sunac China Holdings Ltd.	275,000		900,445
Suning.com Co. Ltd., Class A	13,100		23,738
Sunny Optical Technology Group Co. Ltd.	80,900		1,028,141
TAL Education Group, Class A, ADR(b)	37,156		1,099,818
Tencent Holdings Ltd.	633,800		27,455,057
Tingyi Cayman Islands Holding Corp.	224,000		400,117
Tong Ren Tang Technologies Co. Ltd., Class H	64,000		92,793
Towngas China Co. Ltd.	118,000		108,695
TravelSky Technology Ltd., Class H	106,000		271,452
Tsingtao Brewery Co. Ltd., Class H	42,000		199,595
Uni-President China Holdings Ltd.	140,000		137,879
Vipshop Holdings Ltd., ADR(b)(c)	47,680		332,806
Want Want China Holdings Ltd.	575,000		469,588
Weibo Corp., ADR(b)(c)	5,239		402,041
Weichai Power Co. Ltd., Class H	227,200		240,837
Wuliangye Yibin Co. Ltd., Class A	4,700		42,583
Wuxi Biologics Cayman Inc.(a)(b)(c)	56,000		552,944
XCMG Construction Machinery Co. Ltd., Class A	33,800		20,234
Xinhu Zhongbao Co. Ltd., Class A	19,000		8,788
Xinjiang Goldwind Science & Technology Co. Ltd., Class A	15,600		27,788
Xinjiang Goldwind Science & Technology Co. Ltd., Class H	54,600		58,434
Xinyi Solar Holdings Ltd.	362,000		107,923
Yanzhou Coal Mining Co. Ltd., Class H	202,000		233,426
Yuexiu Property Co. Ltd.	720,000		130,260
Yum China Holdings Inc.	41,151		1,591,721
Yunnan Baiyao Group Co. Ltd., Class A	2,100		24,467
Yuzhou Properties Co. Ltd.	190,000		100,944

Security	Shares	Value
China (continued)
YY Inc., ADR(b)(c)	5,077	$	388,035
Zhaojin Mining Industry Co. Ltd., Class H	120,000		93,567
Zhejiang Expressway Co. Ltd., Class H	166,000		131,761
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)	18,000		77,170
Zhongsheng Group Holdings Ltd.	64,000		140,412
Zhuzhou CRRC Times Electric Co. Ltd., Class H	63,600		343,164
Zijin Mining Group Co. Ltd., Class H	652,000		243,392
ZTE Corp., Class H(b)	82,560		160,305
			180,815,442
India — 12.4%
Adani Ports &Special Economic Zone Ltd.	58,677		316,978
Ambuja Cements Ltd.	68,277		232,335
Ashok Leyland Ltd.	131,717		239,659
Asian Paints Ltd.	32,547		629,797
Aurobindo Pharma Ltd.	29,465		296,099
Avenue Supermarts Ltd.(a)(b)	13,591		307,457
Axis Bank Ltd.(b)	202,043		1,849,476
Bajaj Auto Ltd.	9,305		360,104
Bajaj Finance Ltd.	19,812		797,941
Bajaj Finserv Ltd.	4,346		413,471
Bharat Forge Ltd.	23,243		222,529
Bharat Heavy Electricals Ltd.	99,226		112,760
Bharat Petroleum Corp. Ltd.	85,200		434,972
Bharti Airtel Ltd.	159,419		862,769
Bharti Infratel Ltd.	37,740		152,660
Bosch Ltd.	879		272,530
Britannia Industries Ltd.	3,177		301,759
Cadila Healthcare Ltd.	22,865		129,837
Cipla Ltd./India	40,675		379,732
Coal India Ltd.	76,467		308,288
Container Corp. of India Ltd.	19,050		175,080
Dabur India Ltd.	60,544		408,670
Dr. Reddy’s Laboratories Ltd.	12,778		448,956
Eicher Motors Ltd.	1,513		598,571
GAIL India Ltd.	88,013		461,866
Glenmark Pharmaceuticals Ltd.	15,626		146,652
Godrej Consumer Products Ltd.	26,978		552,350
Grasim Industries Ltd.	37,242		560,524
Havells India Ltd.	28,705		293,520
HCL Technologies Ltd.	62,540		922,719
Hero MotoCorp Ltd.	5,532		253,785
Hindalco Industries Ltd.	132,762		445,402
Hindustan Petroleum Corp. Ltd.	68,376		244,674
Hindustan Unilever Ltd.	73,187		1,836,840
Housing Development Finance Corp. Ltd.	178,180		4,863,468
ICICI Bank Ltd.	267,210		1,290,723
Idea Cellular Ltd.(b)	220,275		153,266
Indiabulls Housing Finance Ltd.	31,322		556,102
Indian Oil Corp. Ltd.	160,101		351,121
Infosys Ltd.	197,599		4,014,873
InterGlobe Aviation Ltd.(a)	9,734		127,476
ITC Ltd.	382,652		1,725,613
JSW Steel Ltd.	96,425		538,842
Larsen & Toubro Ltd.	53,342		1,030,007
LIC Housing Finance Ltd.	34,294		251,864
Lupin Ltd.	24,218		318,047
Mahindra & Mahindra Financial Services Ltd.	35,236		243,009
Mahindra & Mahindra Ltd.	83,934		1,142,334
Marico Ltd.	50,964		265,468
Maruti Suzuki India Ltd.	11,914		1,527,989

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 41

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
India (continued)
Motherson Sumi Systems Ltd.		72,924	$	312,665
Nestle India Ltd.		2,640		431,112
NTPC Ltd.		222,135		537,123
Oil & Natural Gas Corp. Ltd.		155,898		395,755
Page Industries Ltd.		384		186,335
Petronet LNG Ltd.		70,026		244,902
Pidilite Industries Ltd.		14,186		233,742
Piramal Enterprises Ltd.		9,356		422,084
Power Grid Corp. of India Ltd.		177,038		502,961
Reliance Industries Ltd.		321,737		5,632,396
Rural Electrification Corp. Ltd.		76,264		128,816
Shree Cement Ltd.		943		251,628
Shriram Transport Finance Co. Ltd.		16,883		317,968
Siemens Ltd.		8,392		120,657
State Bank of India(b)		193,885		846,327
Sun Pharmaceutical Industries Ltd.		94,196		867,040
Tata Consultancy Services Ltd.		103,267		3,026,103
Tata Motors Ltd.(b)		176,544		665,840
Tata Power Co. Ltd. (The)		124,507		134,643
Tata Steel Ltd.		39,546		334,818
Tech Mahindra Ltd.		53,201		574,418
Titan Co. Ltd.		35,117		441,598
UltraTech Cement Ltd.		10,922		689,186
United Spirits Ltd.(b)		32,788		291,354
UPL Ltd.		39,849		401,882
Vedanta Ltd.		147,120		472,311
Wipro Ltd.		127,108		539,875
Yes Bank Ltd.		194,758		943,224
Zee Entertainment Enterprises Ltd.		54,629		385,073
				54,702,800
Indonesia — 2.6%
Adaro Energy Tbk PT		1,626,500		205,935
AKR Corporindo Tbk PT		3,600		882
Astra International Tbk PT		2,289,700		1,126,974
Bank Central Asia Tbk PT		1,105,200		1,860,758
Bank Danamon Indonesia Tbk PT		332,100		153,312
Bank Mandiri Persero Tbk PT		2,088,400		978,273
Bank Negara Indonesia Persero Tbk PT		838,600		444,065
Bank Rakyat Indonesia Persero Tbk PT		6,204,600		1,339,486
Bank Tabungan Negara Persero Tbk PT		472,100		88,138
Bumi Serpong Damai Tbk PT(b)		944,800		76,969
Charoen Pokphand Indonesia Tbk PT		879,500		297,346
Gudang Garam Tbk PT		52,900		262,166
Hanjaya Mandala Sampoerna Tbk PT		1,029,100		267,580
Indah Kiat Pulp & Paper Corp. Tbk PT		305,600		396,263
Indocement Tunggal Prakarsa Tbk PT		216,300		260,279
Indofood CBP Sukses Makmur Tbk PT		257,500		151,651
Indofood Sukses Makmur Tbk PT		465,400		201,421
Jasa Marga Persero Tbk PT		301,898		92,844
Kalbe Farma Tbk PT		2,303,100		210,297
Matahari Department Store Tbk PT		292,600		148,982
Pakuwon Jati Tbk PT		1,993,900		69,712
Perusahaan Gas Negara Persero Tbk PT		1,248,800		181,428
Semen Indonesia Persero Tbk PT		355,800		228,263
Surya Citra Media Tbk PT		658,400		93,866
Telekomunikasi Indonesia Persero Tbk PT		5,734,200		1,358,612
Tower Bersama Infrastructure Tbk PT		215,700		81,272
Unilever Indonesia Tbk PT		169,000		503,099
United Tractors Tbk PT		190,900		445,822

Security	Shares		Value
Indonesia (continued)
Waskita Karya Persero Tbk PT		566,700	$	72,905
				11,598,600
Malaysia — 3.3%
AirAsia Group Bhd		167,000		139,793
Alliance Bank Malaysia Bhd		115,700		116,277
AMMB Holdings Bhd		190,700		190,259
Astro Malaysia Holdings Bhd		179,500		76,002
Axiata Group Bhd(c)		299,300		349,590
British American Tobacco Malaysia Bhd		15,500		127,711
CIMB Group Holdings Bhd		520,700		771,642
Dialog Group Bhd		412,178		349,040
DiGi.Com Bhd(c)		362,700		415,699
FGV Holdings Bhd(c)		207,100		76,097
Fraser & Neave Holdings Bhd		14,300		132,230
Gamuda Bhd		203,900		183,582
Genting Bhd		241,000		505,516
Genting Malaysia Bhd		343,300		436,069
Genting Plantations Bhd		26,900		61,727
HAP Seng Consolidated Bhd		76,600		183,229
Hartalega Holdings Bhd		155,800		269,176
Hong Leong Bank Bhd		76,500		382,733
Hong Leong Financial Group Bhd		26,300		125,564
IHH Healthcare Bhd		296,400		402,461
IJM Corp. Bhd(c)		343,100		156,125
IOI Corp. Bhd		229,000		251,875
IOI Properties Group Bhd		211,943		90,254
Kuala Lumpur Kepong Bhd		51,200		307,237
Malayan Banking Bhd		431,400		1,045,564
Malaysia Airports Holdings Bhd		103,300		235,030
Maxis Bhd(c)		265,600		373,566
MISC Bhd		127,000		183,261
My EG Services Bhd(c)		230,300		83,501
Nestle Malaysia Bhd		7,200		257,550
Petronas Chemicals Group Bhd		278,700		641,563
Petronas Dagangan Bhd		25,400		168,118
Petronas Gas Bhd		79,900		363,580
PPB Group Bhd		65,080		266,053
Press Metal Aluminium Holdings Bhd		149,600		181,289
Public Bank Bhd		325,810		1,991,568
RHB Bank Bhd		96,962		127,411
RHB Bank Bhd, New(b)(d)		28,800		—
Sime Darby Bhd		266,900		165,615
Sime Darby Plantation Bhd		266,700		347,855
Sime Darby Property Bhd		320,900		98,390
SP Setia Bhd Group		168,900		108,093
Telekom Malaysia Bhd(c)		109,900		88,519
Tenaga Nasional Bhd		352,500		1,344,981
Top Glove Corp. Bhd		76,700		207,918
UMW Holdings Bhd		50,700		73,283
Westports Holdings Bhd		126,200		114,239
YTL Corp. Bhd		377,908		122,306
				14,689,141
Pakistan — 0.1%
Habib Bank Ltd.		61,300		74,572
Lucky Cement Ltd.		15,900		69,258
MCB Bank Ltd.		51,000		82,664
Oil &Gas Development Co. Ltd.		81,200		99,716
United Bank Ltd./Pakistan		69,700		88,721
				414,931

42 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Philippines — 1.4%
Aboitiz Equity Ventures Inc.		218,450	$	218,376
Aboitiz Power Corp.		173,000		119,717
Alliance Global Group Inc.(b)		444,700		114,776
Ayala Corp.		27,950		522,743
Ayala Land Inc.		835,300		695,198
Bank of the Philippine Islands		102,182		179,164
BDO Unibank Inc.		221,499		538,958
DMCI Holdings Inc.		451,500		108,087
Globe Telecom Inc.		3,945		156,124
GT Capital Holdings Inc.		9,866		161,641
International Container Terminal Services Inc.		58,490		102,446
JG Summit Holdings Inc.		320,236		359,358
Jollibee Foods Corp.		50,860		273,952
Manila Electric Co.		25,460		177,803
Megaworld Corp.		1,316,500		113,016
Metro Pacific Investments Corp.		1,666,700		169,887
Metropolitan Bank & Trust Co.		87,268		119,555
PLDT Inc.		10,185		265,350
Robinsons Land Corp.		270,190		107,635
Security Bank Corp.		26,370		95,926
SM Investments Corp.		26,689		482,187
SM Prime Holdings Inc.		1,143,750		834,261
Universal Robina Corp.		104,160		271,757
				6,187,917
South Korea — 18.6%
Amorepacific Corp.		3,621		855,521
AMOREPACIFIC Group		3,282		284,225
BGF retail Co. Ltd.		973		149,908
BNK Financial Group Inc.		29,970		224,543
Celltrion Healthcare Co. Ltd.(b)(c)		3,850		312,662
Celltrion Inc.(b)(c)		9,245		2,242,420
Celltrion Pharm Inc.(b)		1,715		123,408
Cheil Worldwide Inc.		7,878		136,590
CJ CheilJedang Corp.		915		281,532
CJ Corp.		1,652		195,898
CJ ENM Co. Ltd.		1,229		278,227
CJ Logistics Corp.(b)		897		124,097
Coway Co. Ltd.		5,501		451,683
Daelim Industrial Co. Ltd.		3,279		241,252
Daewoo Engineering & Construction Co. Ltd.(b)		19,190		90,334
DB Insurance Co. Ltd.		5,595		321,682
DGB Financial Group Inc.		19,249		177,247
Dongsuh Cos. Inc.		4,336		88,227
Doosan Bobcat Inc.		4,355		139,279
Doosan Heavy Industries & Construction Co. Ltd.(b)		6,530		83,007
E-MART Inc.		2,376		457,847
GS Engineering & Construction Corp.		5,582		240,199
GS Holdings Corp.		5,836		278,392
GS Retail Co. Ltd.		3,221		107,642
Hana Financial Group Inc.		33,311		1,277,797
Hankook Tire Co. Ltd.		8,255		345,951
Hanmi Pharm Co. Ltd.		702		313,745
Hanmi Science Co. Ltd.		1,453		113,431
Hanon Systems		20,201		217,771
Hanssem Co. Ltd.		1,222		90,567
Hanwha Chemical Corp.		12,438		226,267
Hanwha Corp.		4,654		133,163
Hanwha Life Insurance Co. Ltd.		34,961		152,325
HDC Hyundai Development Co-Engineering & Construction, Class E(b)		4,080		204,889

Security	Shares		Value
South Korea (continued)
HLB Inc.(b)		3,474	$	324,571
Hotel Shilla Co. Ltd.		3,572		346,562
Hyundai Department Store Co. Ltd.		1,662		148,709
Hyundai Engineering & Construction Co. Ltd.		8,831		476,001
Hyundai Glovis Co. Ltd.		2,119		230,336
Hyundai Heavy Industries Co. Ltd.(b)		4,109		435,577
Hyundai Heavy Industries Holdings Co. Ltd.(b)		1,117		378,806
Hyundai Marine & Fire Insurance Co. Ltd.		7,092		237,005
Hyundai Mobis Co. Ltd.		7,651		1,539,616
Hyundai Motor Co.		17,444		1,958,856
Hyundai Steel Co.		9,109		436,158
Industrial Bank of Korea		29,025		388,512
ING Life Insurance Korea Ltd.(a)		3,488		109,044
Kakao Corp.		5,656		635,135
Kangwon Land Inc.		13,157		342,178
KB Financial Group Inc.		44,685		2,075,385
KCC Corp.		677		197,356
KEPCO Plant Service & Engineering Co. Ltd.		2,771		90,612
Kia Motors Corp.		29,489		849,052
Korea Aerospace Industries Ltd.(b)		7,963		298,662
Korea Electric Power Corp.		28,890		791,578
Korea Gas Corp.(b)		2,938		138,830
Korea Investment Holdings Co. Ltd.		4,702		301,175
Korea Zinc Co. Ltd.		991		361,003
Korean Air Lines Co. Ltd.		5,417		136,502
KT Corp.		574		14,902
KT&G Corp.		13,358		1,212,018
Kumho Petrochemical Co. Ltd.		2,033		186,288
LG Chem Ltd.		5,196		1,708,427
LG Corp.		10,643		683,623
LG Display Co. Ltd.		26,062		497,523
LG Electronics Inc.		11,955		824,816
LG Household & Health Care Ltd.		1,073		1,219,373
LG Innotek Co. Ltd.		1,623		209,227
LG Uplus Corp.		15,913		224,439
Lotte Chemical Corp.		1,951		553,848
Lotte Corp.(b)		3,159		136,786
Lotte Shopping Co. Ltd.		1,274		206,010
Medy-Tox Inc.		492		296,044
Mirae Asset Daewoo Co. Ltd.		46,892		346,272
NAVER Corp.		3,166		2,138,824
NCSoft Corp.		2,023		704,229
Netmarble Corp.(a)		2,823		295,449
NH Investment & Securities Co. Ltd.		16,386		197,989
OCI Co. Ltd.		2,080		215,820
Orion Corp./Republic of Korea		2,472		237,618
Ottogi Corp.		132		85,972
Pan Ocean Co. Ltd.(b)		24,771		114,826
Pearl Abyss Corp.(b)		633		145,007
POSCO		8,854		2,596,982
Posco Daewoo Corp.		5,715		93,697
S-1 Corp.		1,848		142,275
Samsung Biologics Co. Ltd.(a)(b)		1,880		781,961
Samsung C&T Corp.		8,533		942,873
Samsung Card Co. Ltd.		3,428		108,554
Samsung Electro-Mechanics Co. Ltd.		6,354		919,008
Samsung Electronics Co. Ltd.		534,160		23,249,384
Samsung Engineering Co. Ltd.(b)		17,653		267,217
Samsung Fire & Marine Insurance Co. Ltd.		3,463		824,413
Samsung Heavy Industries Co. Ltd.(b)		42,470		270,123

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 43

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
South Korea (continued)
Samsung Life Insurance Co. Ltd.		7,921	$	658,215
Samsung SDI Co. Ltd.		6,219		1,318,496
Samsung SDS Co. Ltd.		3,943		858,984
Samsung Securities Co. Ltd.		7,255		210,842
Shinhan Financial Group Co. Ltd.		48,185		1,887,316
Shinsegae Inc.		856		249,537
SillaJen Inc.(b)(c)		5,736		393,685
SK Holdings Co. Ltd.		3,570		843,471
SK Hynix Inc.		65,759		4,903,200
SK Innovation Co. Ltd.		7,302		1,266,034
SK Telecom Co. Ltd.		2,288		539,550
S-Oil Corp.		5,089		546,319
ViroMed Co. Ltd.(b)		1,526		325,037
Woori Bank		52,583		769,980
Yuhan Corp.		1,017		218,356
				81,829,788
Taiwan — 16.2%
Acer Inc.		342,062		286,212
Advantech Co. Ltd.		37,282		253,685
Airtac International Group		14,000		134,462
ASE Technology Holding Co. Ltd.		395,484		969,557
Asia Cement Corp.		254,229		346,394
Asustek Computer Inc.		80,000		681,100
AU Optronics Corp.		981,000		424,786
Catcher Technology Co. Ltd.		74,000		907,081
Cathay Financial Holding Co. Ltd.		922,944		1,580,559
Chailease Holding Co. Ltd.		133,105		452,856
Chang Hwa Commercial Bank Ltd.		557,294		346,551
Cheng Shin Rubber Industry Co. Ltd.		224,776		343,220
Chicony Electronics Co. Ltd.		69,518		146,211
China Airlines Ltd.		332,000		101,713
China Development Financial Holding Corp.		1,525,200		551,187
China Life Insurance Co. Ltd./Taiwan		294,298		292,717
China Steel Corp.		1,418,867		1,161,794
Chunghwa Telecom Co. Ltd.		433,000		1,529,562
Compal Electronics Inc.		466,000		292,056
CTBC Financial Holding Co. Ltd.		1,987,265		1,397,523
Delta Electronics Inc.		235,000		941,071
E.Sun Financial Holding Co. Ltd.		1,070,564		787,718
Eclat Textile Co. Ltd.		19,604		238,069
Eva Airways Corp.		236,628		120,182
Evergreen Marine Corp. Taiwan Ltd.		250,358		106,371
Far Eastern New Century Corp.		369,460		430,024
Far EasTone Telecommunications Co. Ltd.		179,000		426,593
Feng TAY Enterprise Co. Ltd.		38,064		230,503
First Financial Holding Co. Ltd.		1,101,725		737,114
Formosa Chemicals & Fibre Corp.		395,950		1,585,605
Formosa Petrochemical Corp.		141,000		578,414
Formosa Plastics Corp.		506,400		1,854,794
Formosa Taffeta Co. Ltd.		103,000		119,884
Foxconn Technology Co. Ltd.		98,521		250,192
Fubon Financial Holding Co. Ltd.		752,396		1,246,849
General Interface Solution Holding Ltd.		21,000		130,246
Giant Manufacturing Co. Ltd.		39,000		168,240
Globalwafers Co. Ltd.		25,000		319,062
Highwealth Construction Corp.		100,840		163,826
Hiwin Technologies Corp.		24,181		218,074
Hon Hai Precision Industry Co. Ltd.		1,865,314		4,888,744
Hotai Motor Co. Ltd.		30,000		259,808
HTC Corp.(b)		80,000		116,165

Security	Shares		Value
Taiwan (continued)
Hua Nan Financial Holdings Co. Ltd.		846,461	$	496,054
Innolux Corp.		1,010,620		376,741
Inventec Corp.		278,980		250,233
Largan Precision Co. Ltd.		11,000		1,685,007
Lite-On Technology Corp.		241,032		289,960
Macronix International		216,241		232,328
MediaTek Inc.		168,176		1,377,056
Mega Financial Holding Co. Ltd.		1,231,542		1,034,471
Micro-Star International Co. Ltd.		76,000		263,519
Nan Ya Plastics Corp.		580,090		1,612,883
Nanya Technology Corp.		115,000		260,964
Nien Made Enterprise Co. Ltd.		19,000		147,225
Novatek Microelectronics Corp.		70,000		342,992
Pegatron Corp.		229,000		493,563
Phison Electronics Corp.		19,000		157,122
Pou Chen Corp.		248,000		273,313
Powertech Technology Inc.		80,000		237,278
President Chain Store Corp.		65,000		708,937
Quanta Computer Inc.		306,000		526,023
Realtek Semiconductor Corp.		49,140		238,381
Ruentex Development Co. Ltd.		104,065		117,228
Ruentex Industries Ltd.		66,855		137,127
Shin Kong Financial Holding Co. Ltd.		941,138		372,288
SinoPac Financial Holdings Co. Ltd.		1,181,699		432,822
Standard Foods Corp.		53,987		91,399
Synnex Technology International Corp.		161,050		215,502
TaiMed Biologics Inc.(b)		20,000		148,787
Taishin Financial Holding Co. Ltd.		1,122,129		527,910
Taiwan Business Bank		387,768		140,134
Taiwan Cement Corp.		534,100		736,420
Taiwan Cooperative Financial Holding Co. Ltd.		984,626		585,037
Taiwan High Speed Rail Corp.		219,000		184,669
Taiwan Mobile Co. Ltd.		181,000		630,539
Taiwan Semiconductor Manufacturing Co. Ltd.		2,734,000		22,787,042
Teco Electric and Machinery Co. Ltd.		234,000		171,415
Uni-President Enterprises Corp.		542,650		1,370,980
United Microelectronics Corp.		1,365,000		771,048
Vanguard International Semiconductor Corp.		107,000		259,531
Walsin Technology Corp.		36,000		368,615
Win Semiconductors Corp.		40,000		216,832
Winbond Electronics Corp.		335,000		188,141
Wistron Corp.		314,080		222,407
WPG Holdings Ltd.		199,000		252,030
Yageo Corp.		28,151		639,733
Yuanta Financial Holding Co. Ltd.		1,153,893		584,178
Zhen Ding Technology Holding Ltd.		55,455		141,910
				71,414,548
Thailand — 3.2%
Advanced Info Service PCL, NVDR		116,300		717,770
Airports of Thailand PCL, NVDR		483,000		985,037
Bangkok Bank PCL Foreign		27,200		172,857
Bangkok Dusit Medical Services PCL, NVDR		438,000		351,283
Bangkok Expressway & Metro PCL, NVDR		803,300		206,163
Banpu PCL, NVDR		254,600		157,910
Berli Jucker PCL, NVDR(c)		141,600		250,926
BTS Group Holdings PCL, NVDR		712,000		201,222
Bumrungrad Hospital PCL, NVDR		42,600		236,233
Central Pattana PCL, NVDR		155,100		390,949
Charoen Pokphand Foods PCL, NVDR		375,200		295,185
CP ALL PCL, NVDR		565,500		1,166,247

44 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Thailand (continued)
Delta Electronics Thailand PCL, NVDR		61,800	$	131,700
Electricity Generating PCL, NVDR		17,000		117,385
Energy Absolute PCL, NVDR		147,400		174,511
Glow Energy PCL, NVDR		61,300		176,052
Home Product Center PCL, NVDR		424,145		189,200
Indorama Ventures PCL, NVDR		179,300		328,689
IRPC PCL, NVDR		1,143,000		242,708
Kasikornbank PCL, NVDR		73,600		474,476
Kasikornbank PCL Foreign		131,700		853,052
Krung Thai Bank PCL, NVDR		391,550		232,083
Land & Houses PCL, NVDR		274,500		94,771
Minor International PCL, NVDR		254,680		307,359
PTT Exploration & Production PCL, NVDR		157,710		686,638
PTT Global Chemical PCL, NVDR		254,200		634,917
PTT PCL, NVDR		1,188,700		1,906,714
Robinson PCL, NVDR		50,100		99,879
Siam Cement PCL (The), NVDR		43,200		596,590
Siam Commercial Bank PCL (The), NVDR		210,000		949,587
Thai Oil PCL, NVDR		127,300		327,682
Thai Union Group PCL, NVDR		202,900		108,486
TMB Bank PCL, NVDR		1,486,100		99,891
True Corp. PCL, NVDR		1,218,005		249,332
				14,113,484
Total Common Stocks — 98.9% (Cost: $380,167,095)				435,766,651
Preferred Stocks
South Korea — 1.0%
Amorepacific Corp., Preference Shares, NVS		1,032		133,966
Hyundai Motor Co. Preference Shares, NVS		2,796		196,673
Series 2, Preference Shares, NVS		4,266		328,050
LG Chem Ltd., Preference Shares, NVS		923		165,836
LG Household & Health Care Ltd., Preference Shares, NVS		247		166,198
Samsung Electronics Co. Ltd., Preference Shares, NVS		91,010		3,245,831
				4,236,554
Total Preferred Stocks — 1.0% (Cost: $2,967,873)				4,236,554

Security	Shares		Value
Rights
China — 0.0%
China Everbright International Ltd., NVS (Expires 09/13/18)(b)		101,481	$	7,887
Total Rights — 0.0% (Cost: $0)				7,887
Warrants
Thailand — 0.0%
BTS Group Holdings PCL (Expires 08/01/19)(b)		79,111		0	(e)
Total Warrants — 0.0% (Cost: $0)				0	(e)
Short-Term Investments
Money Market Funds — 7.1%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		31,286,159		31,295,545
Total Short-Term Investments — 7.1% (Cost: $31,290,610)				31,295,545
Total Investments in Securities — 107.0% (Cost: $414,425,578)				471,306,637
Other Assets, Less Liabilities — (7.0)%				(30,768,457	)
Net Assets — 100.0%			$	440,538,180

^(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(b)  Non-income producing security.

^(c)  All or a portion of this security is on loan.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(e)  Rounds to less than $1.

^(f) Affiliate of the Fund.

^(g)  Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss	)(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		9,807,306	21,478,853			31,286,159	$	31,295,545	$	273,096	(b)	$	(2,039	)	$	3,664
BlackRock Cash Funds: Treasury, SL Agency Shares		768,227	(768,227	)		—		—		14,322			—			—
							$	31,295,545	$	287,418		$	(2,039	)	$	3,664

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 45

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Asia ETF
August 31, 2018

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, refer to the Notes to Consolidated Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.

	Level 1		Level 2			Level 3		Total
Investments
Assets
Common Stocks	$	435,766,265	$	—		$	386	$	435,766,651
Preferred Stocks		4,236,554		—			—		4,236,554
Rights		—		7,887			—		7,887
Warrants		—		0	(a)		—		0	(a)
Money Market Funds		31,295,545		—			—		31,295,545
	$	471,298,364	$	7,887		$	386	$	471,306,637

^(a)  Rounds to less than $1.

See notes to consolidated financial statements.

46 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Common Stocks
Brazil — 3.6%
AES Tiete Energia SA, NVS	62,600	$	146,772
Aliansce Shopping Centers SA	34,300		125,958
Alupar Investimento SA, NVS	60,608		223,597
Anima Holding SA	15,900		50,169
Arezzo Industria e Comercio SA	18,600		178,637
B2W Cia. Digital(a)	68,323		438,119
Banco ABC Brasil SA, NVS(a)	1,093		3,876
BK Brasil Operacao e Assessoria a Restaurantes SA(a)	53,200		187,228
BR Properties SA	48,241		107,720
Cia. de Saneamento de Minas Gerais-COPASA	25,300		257,169
Cia. Hering	52,000		207,111
Cosan Logistica SA(a)	72,522		169,507
CVC Brasil Operadora e Agencia de Viagens SA	52,800		545,288
Cyrela Brazil Realty SA Empreendimentos e Participacoes	101,900		270,325
Dommo Energia SA(a)	445,100		216,063
Duratex SA	123,500		289,559
EcoRodovias Infraestrutura e Logistica SA	88,100		151,819
Estacio Participacoes SA	104,300		570,598
Ez Tec Empreendimentos e Participacoes SA	22,044		85,873
Fleury SA	73,400		457,848
Guararapes Confeccoes SA	3,700		94,339
Iguatemi Empresa de Shopping Centers SA	33,000		245,412
Instituto Hermes Pardini SA	22,800		81,680
Iochpe Maxion SA	39,805		217,376
Light SA	31,500		106,119
Linx SA	51,800		216,247
Magnesita Refratarios SA	11,800		203,345
Mahle-Metal Leve SA	17,200		105,327
Marfrig Global Foods SA(a)	82,000		113,842
Minerva SA(a)	41,600		58,764
MRV Engenharia e Participacoes SA	109,900		346,763
Multiplus SA	20,900		123,419
QGEP Participacoes SA	32,000		94,755
Qualicorp Consultoria e Corretora de Seguros SA	95,800		366,449
Santos Brasil Participacoes SA	115,100		78,221
Sao Martinho SA	65,000		298,961
Ser Educacional SA(b)	28,635		111,201
SLC Agricola SA	18,900		302,760
Smiles Fidelidade SA	24,300		306,161
TOTVS SA	46,800		302,602
Transmissora Alianca de Energia Eletrica SA, NVS	85,800		418,577
Tupy SA	21,500		124,300
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA	31,740		113,630
Via Varejo SA	57,800		237,086
Wiz Solucoes e Corretagem de Seguros SA	37,900		78,650
			9,429,222
Chile — 1.4%
AES Gener SA	1,170,862		296,313
Besalco SA	159,561		142,567
CAP SA	29,922		270,373
Cia. Sud Americana de Vapores SA(a)	6,144,160		183,448
Engie Energia Chile SA	199,340		366,217
Forus SA	41,141		110,522
Inversiones Aguas Metropolitanas SA	176,417		255,348
Inversiones La Construccion SA	13,346		213,741
Parque Arauco SA	215,134		540,036

Security	Shares	Value
Chile (continued)
Ripley Corp. SA	293,960	$	251,395
Salfacorp SA	137,554		211,576
SMU SA(a)	1,015,408		286,990
Sociedad de Inversiones Oro Blanco SA	15,977,540		107,306
SONDA SA	193,472		255,102
Vina Concha y Toro SA	137,417		269,191
			3,760,125
China — 12.8%
21Vianet Group Inc., ADR(a)(c)	25,722		250,789
361 Degrees International Ltd.	386,000		110,652
500.com Ltd., ADR(a)(c)	6,432		83,873
AGTech Holdings Ltd.(a)(c)	1,432,000		116,765
Ajisen China Holdings Ltd.(c)	255,000		107,212
Anton Oilfield Services Group/Hong Kong(a)(c)	840,000		115,583
Anxin-China Holdings Ltd.(a)(d)	1,084,000		16,573
APT Satellite Holdings Ltd.	209,000		87,340
Asia Cement China Holdings Corp.	196,000		209,262
AVIC International Holding HK Ltd.(a)(c)	1,950,000		47,453
AVIC International Holdings Ltd., Class H	128,000		66,211
Beijing Capital Land Ltd., Class H	410,000		164,023
Beijing Enterprises Medical & Health Group Ltd.(a)	2,646,000		116,305
Beijing Gas Blue Sky Holdings Ltd.(a)(c)	2,880,000		209,150
Beijing Sports and Entertainment Industry Group Ltd.(a)(c)	417,500		151,066
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.	111,000		217,506
Best Pacific International Holdings Ltd.	146,000		47,619
Bitauto Holdings Ltd., ADR(a)(c)	10,287		243,906
Boshiwa International Holding Ltd.(a)(d)	32,000		163
Bosideng International Holdings Ltd.	1,356,000		171,035
Boyaa Interactive International Ltd.(a)	267,000		67,355
C C Land Holdings Ltd.	876,000		214,287
Canvest Environment Protection Group Co. Ltd.(c)	406,000		214,150
Capital Environment Holdings Ltd.(a)	2,244,000		58,609
Carnival Group International Holdings Ltd.(a)(c)	4,527,500		187,471
Central China Real Estate Ltd.	287,000		119,935
CGN Meiya Power Holdings Co. Ltd.(a)(b)	604,000		105,426
Changyou.com Ltd., ADR	7,817		105,451
Chaowei Power Holdings Ltd.(c)	252,000		121,683
China Aerospace International Holdings Ltd.(c)	2,650,000		219,457
China Aircraft Leasing Group Holdings Ltd.	161,500		172,840
China Animal Healthcare Ltd.(a)(c)(d)	126,000		963
China Aoyuan Property Group Ltd.(c)	466,000		347,916
China BlueChemical Ltd., Class H	730,000		254,838
China Datang Corp. Renewable Power Co. Ltd., Class H	988,000		151,053
China Dongxiang Group Co. Ltd.	1,541,000		255,233
China Electronics Huada Technology Co. Ltd.(c)	630,000		63,410
China Electronics Optics Valley Union Holding Co Ltd.	2,140,000		141,778
China Everbright Greentech Ltd., Class L(b)(c)	239,000		235,684
China Fangda Group Co. Ltd., Class B	271,200		128,190
China Foods Ltd.	346,000		171,922
China Goldjoy Group Ltd.(c)	3,704,000		217,080
China Grand Pharmaceutical and Healthcare Holdings Ltd., Class A(a)(c)	416,000		286,206
China Greenland Broad Greenstate Group Co Ltd.(c)	600,000		61,155
China Harmony New Energy Auto Holding Ltd.(c)	336,000		133,135
China High Speed Transmission Equipment Group Co. Ltd.(c)	189,000		210,217
China Huiyuan Juice Group Ltd.(a)(d)	379,000		78,225
China Investment Fund International Holdings Co. Ltd.(a)	304,000		511,256
China Lilang Ltd.	187,000		207,277
China Logistics Property Holdings Co. Ltd.(a)(b)(c)	460,000		172,890

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 47

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
China (continued)
China Lumena New Materials Corp.(a)(c)(d)	210,000	$	—
China Maple Leaf Educational Systems Ltd.	588,000		321,385
China Merchants Land Ltd.	746,000		113,104
China Metal Recycling Holdings Ltd.(a)(d)	12,000		—
China Metal Resources Utilization Ltd.(a)(b)(c)	340,000		202,296
China Modern Dairy Holdings Ltd.(a)	783,000		119,711
China New Higher Education Group Ltd.(b)	171,000		123,312
China NT Pharma Group Co. Ltd.	464,000		88,675
China Oil & Gas Group Ltd.	2,210,000		171,757
China Overseas Grand Oceans Group Ltd.	583,000		205,750
China Overseas Property Holdings Ltd.(c)	535,000		171,769
China Power Clean Energy Development Co. Ltd.	281,500		108,671
China Regenerative Medicine International Ltd.(a)(c)	5,135,000		105,331
China Resources Phoenix Healthcare Holdings Co. Ltd.(c)	345,000		319,554
China Sanjiang Fine Chemicals Co. Ltd.	342,000		109,368
China SCE Group Holdings Ltd.	663,000		297,336
China Shengmu Organic Milk Ltd.(a)(b)(c)	1,774,000		88,147
China Shineway Pharmaceutical Group Ltd.	115,000		162,341
China Silver Group Ltd.(a)	726,000		95,272
China Singyes Solar Technologies Holdings Ltd.(c)	248,000		78,360
China Suntien Green Energy Corp. Ltd., Class H	698,000		209,874
China Water Affairs Group Ltd.	318,000		364,232
China Water Industry Group Ltd.(a)	620,000		115,328
China Youzan Ltd.(a)(c)	2,796,000		274,296
China Yuchai International Ltd.	7,778		156,416
China Yuhua Education Corp Ltd., Class L(b)(c)	470,000		238,925
China ZhengTong Auto Services Holdings Ltd.	442,000		270,869
Chinasoft International Ltd.	802,000		572,208
Chongqing Machinery & Electric Co. Ltd., Class H	1,906,000		145,702
CIMC Enric Holdings Ltd.	234,000		217,039
CITIC Resources Holdings Ltd.	1,568,000		159,819
Citychamp Watch & Jewellery Group Ltd.	750,000		163,399
COFCO Meat Holdings Ltd.(a)(c)	660,000		100,906
Colour Life Services Group Co. Ltd.(c)	147,000		100,011
Comba Telecom Systems Holdings Ltd.(a)(c)	684,894		109,075
Concord New Energy Group Ltd.	3,960,000		166,495
Consun Pharmaceutical Group Ltd.	168,000		147,689
Coolpad Group Ltd.(a)(d)	1,024,000		6,523
COSCO SHIPPING International Hong Kong Co. Ltd.(c)	404,000		142,578
Cosmo Lady China Holdings Co. Ltd.(b)(c)	239,000		110,838
CPMC Holdings Ltd.	201,000		85,533
CT Environmental Group Ltd.(c)	1,028,000		133,593
Dah Chong Hong Holdings Ltd.(c)	384,000		166,831
Daqo New Energy Corp., ADR(a)	4,037		144,000
Dawnrays Pharmaceutical Holdings Ltd.	464,000		127,101
Digital China Holdings Ltd.(a)(c)	318,000		166,112
Dongyue Group Ltd.	463,000		337,418
eHi Car Services Ltd., ADR(a)(c)	13,961		174,094
Fanhua Inc., ADR(c)	15,239		354,764
Fantasia Holdings Group Co. Ltd.	748,500		101,086
FDG Electric Vehicles Ltd.(a)(c)	8,100,000		101,135
Fu Shou Yuan International Group Ltd.(c)	359,000		321,544
Fufeng Group Ltd.	607,400		287,878
GCL New Energy Holdings Ltd.(a)(c)	3,502,000		131,622
Gemdale Properties & Investment Corp. Ltd.(c)	1,988,000		189,963
Genertec Universal Medical Group Co. Ltd.(b)	365,000		290,181
Glorious Property Holdings Ltd.(a)	1,016,000		56,309
Grand Baoxin Auto Group Ltd.	275,000		75,329
Greatview Aseptic Packaging Co. Ltd.	316,000		169,094
Greenland Hong Kong Holdings Ltd.	407,000		135,859

Security	Shares	Value
China (continued)
Ground International Development Ltd.(a)(c)	710,000	$	122,119
Guorui Properties Ltd.(c)	365,000		113,003
Haichang Ocean Park Holdings Ltd.(a)(b)	614,000		123,599
Hangzhou Steam Turbine Co. Ltd., Class B	99,280		85,380
Harbin Electric Co. Ltd., Class H(c)	320,000		100,702
HC Group Inc.(c)	233,000		163,568
Hi Sun Technology China Ltd.(a)	897,000		133,712
Honghua Group Ltd.(a)(c)	1,197,000		88,453
Hua Han Health Industry Holdings Ltd., Class H(a)(d)	1,112,400		51,022
Huabao International Holdings Ltd.	280,000		164,813
Huangshi Dongbei Electrical Appliance Co. Ltd., Class B	68,700		81,616
Huanxi Media Group Ltd.(a)(c)	540,000		128,655
Huayi Tencent Entertainment Co. Ltd.(a)(c)	2,640,000		124,451
IGG Inc.	357,000		431,189
iKang Healthcare Group Inc., ADR(a)(c)	19,111		375,531
IMAX China Holding Inc.(b)	54,000		138,287
Jinchuan Group International Resources Co. Ltd.(a)(c)	607,000		81,976
JinkoSolar Holding Co. Ltd., ADR(a)(c)	12,221		160,462
JNBY Design Ltd.	80,000		136,580
Jumei International Holding Ltd., ADR(a)(c)	43,655		83,381
Jupai Holdings Ltd., ADR(c)	6,259		84,559
Kama Co. Ltd., Class B(a)	99,400		58,050
Kong Sun Holdings Ltd.(a)(c)	2,600,000		47,370
Konka Group Co. Ltd., Class B	372,500		128,139
Launch Tech Co. Ltd., Class H	99,000		109,357
Lee’s Pharmaceutical Holdings Ltd.	109,500		98,076
Li Ning Co. Ltd.(a)	676,000		713,129
Lifestyle China Group Ltd.(a)	275,500		123,203
Lifetech Scientific Corp.(a)(c)	886,000		216,734
Lonking Holdings Ltd.	758,000		260,750
Luthai Textile Co. Ltd., Class B	132,300		155,580
Nam Tai Property Inc.	12,908		127,789
National Agricultural Holdings Ltd.(a)(c)(d)	354,000		37,435
NetDragon Websoft Holdings Ltd.(c)	92,000		192,700
North Mining Shares Co. Ltd.(a)(c)	7,560,000		47,196
O-Net Technologies Group Ltd.(a)(c)	190,000		108,206
Panda Green Energy Group Ltd.(a)(c)	2,126,000		106,992
PAX Global Technology Ltd.(c)	331,000		163,625
Phoenix Media Investment Holdings Ltd.	642,000		62,164
Phoenix New Media Ltd., ADR(a)(c)	12,980		66,458
Poly Property Group Co. Ltd.	810,000		308,566
Pou Sheng International Holdings Ltd.	783,000		152,632
Powerlong Real Estate Holdings Ltd.	489,000		249,830
Q Technology Group Co. Ltd.(c)	138,000		89,141
Realord Group Holdings Ltd.(a)(c)	242,000		151,078
Redco Group(b)	338,000		215,747
Renhe Commercial Holdings Co. Ltd.(a)	8,872,000		214,766
Road King Infrastructure Ltd.	93,000		157,826
Ronshine China Holdings Ltd.(a)(c)	194,000		232,833
Sany Heavy Equipment International Holdings Co. Ltd.	380,000		134,592
Seaspan Corp.(c)	26,432		243,703
Shandong Airlines Co. Ltd., Class B	62,900		100,173
Shang Gong Group Co. Ltd., Class B(a)	200,100		135,668
Shanghai Haixin Group Co., Class B	263,900		130,630
Shanghai Haohai Biological Technology Co. Ltd., Class H(b)	18,200		136,113
Shanghai Industrial Urban Development Group Ltd.	702,000		123,426
Shanghai Jinjiang International Industrial Investment Co. Ltd., Class B	142,000		143,704
Shanghai Jinjiang International Travel Co. Ltd., Class B	21,741		44,047

48 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
China (continued)
Shougang Concord International Enterprises Co. Ltd.(a)(c)	3,186,000	$	78,748
Shougang Fushan Resources Group Ltd.	1,014,000		226,083
Silver Grant International Industries Ltd.(a)(c)	608,000		122,392
Sinolink Worldwide Holdings Ltd.(a)	846,000		76,528
Sinopec Kantons Holdings Ltd.	400,000		178,369
Sinosoft Technology Group Ltd.	283,800		95,095
Sinotrans Shipping Ltd.(c)	571,000		143,316
Skyfame Realty Holdings Ltd.	296,000		204,023
SMI Holdings Group Ltd.(a)	468,800		139,764
Sohu.com Ltd., ADR(a)	12,394		264,612
Suncity Group Holdings Ltd.(a)	700,000		129,317
Superb Summit International Group Ltd.(a)(d)	238,250		352
Tarena International Inc., ADR(c)	15,327		130,280
TCL Electronics Holdings Ltd.	326,000		158,246
Texhong Textile Group Ltd.	110,000		189,198
Tian Ge Interactive Holdings Ltd.(b)(c)	247,000		163,955
Tianjin Development Holdings Ltd.(c)	388,000		145,829
Tianjin Port Development Holdings Ltd.	1,536,000		180,041
Tianneng Power International Ltd.	258,000		320,491
Tibet Water Resources Ltd.(a)(c)	924,000		279,005
Tongda Group Holdings Ltd.	1,340,000		201,455
Truly International Holdings Ltd.(a)	732,000		117,509
Vinda International Holdings Ltd.	98,000		164,064
Viva China Holdings Ltd.(a)	1,360,000		155,945
Wasion Holdings Ltd.	264,000		133,196
West China Cement Ltd.	952,000		175,872
Wisdom Education International Holdings Co. Ltd.(c)	250,000		142,058
Xiamen International Port Co. Ltd., Class H	1,332,000		186,676
Xingda International Holdings Ltd.	369,000		107,190
Xinjiang Xinxin Mining Industry Co. Ltd., Class H(a)	531,000		60,888
Xinyuan Real Estate Co. Ltd., ADR	17,849		83,355
Xtep International Holdings Ltd.	402,500		268,713
Xunlei Ltd., ADR(a)	12,931		123,103
Yadea Group Holdings Ltd.(b)	478,000		178,438
YiChang HEC ChangJiang Pharmaceutical Co. Ltd., Class H(b)	39,600		180,874
Yihai International Holding Ltd.	164,000		419,982
Yuexiu REIT	565,000		383,678
Yuexiu Transport Infrastructure Ltd.(c)	374,000		290,665
Zhuguang Holdings Group Co. Ltd.(a)(c)	814,000		159,712
			33,470,888
Colombia — 0.3%
Almacenes Exito SA	70,838		367,784
Cemex Latam Holdings SA(a)	82,680		170,516
Corp. Financiera Colombiana SA(a)	29,548		233,888
			772,188
Czech Republic — 0.1%
Central European Media Enterprises Ltd. AS Class A(a)(c)	45,745		172,719
Egypt — 0.7%
Alexandria Mineral Oils Co.	158,301		102,190
Egyptian Financial Group-Hermes Holding Co.(a)	234,938		238,891
Ezz Steel(a)	78,985		117,215
Global Telecom Holding SAE(a)	833,519		200,549
Heliopolis Housing	58,049		94,903
Juhayna Food Industries	211,945		143,833
Medinet Nasr Housing(a)	304,413		148,365
Oriental Weavers	104,075		65,667
Palm Hills Developments SAE(a)	446,956		80,969
Pioneers Holding For Financial Investments SAE(a)	158,559		60,649

Security	Shares	Value
Egypt (continued)
Sidi Kerir Petrochemicals Co.	82,825	$	113,716
Six of October Development & Investment(a)	97,380		128,730
Talaat Moustafa Group	377,621		246,523
Telecom Egypt Co.	133,088		103,828
			1,846,028
Greece — 0.6%
Aegean Airlines SA	21,462		197,521
GEK Terna Holding Real Estate Construction SA(a)	42,235		253,073
Grivalia Properties REIC AE	24,165		239,548
Hellenic Exchanges-Athens Stock Exchange SA	44,522		231,811
Mytilineos Holdings SA	42,839		430,146
Public Power Corp. SA(a)	56,032		109,264
Terna Energy SA	31,092		220,671
			1,682,034
Hungary — 0.1%
Magyar Telekom Telecommunications PLC	185,554		273,114
India — 15.9%
Aarti Industries	9,567		185,469
Adani Power Ltd.(a)	318,950		159,191
Aditya Birla Fashion and Retail Ltd.(a)	79,696		223,044
Aegis Logistics Ltd.	37,519		116,668
AIA Engineering Ltd.	16,551		410,413
Ajanta Pharma Ltd.(a)	9,937		178,036
Alembic Pharmaceuticals Ltd.	19,732		166,811
Allcargo Logistics Ltd.	41,769		69,521
Amara Raja Batteries Ltd.	18,112		216,012
Apollo Hospitals Enterprise Ltd.	35,748		596,100
Apollo Tyres Ltd.	105,201		372,888
Arvind Ltd.	55,033		309,785
Asahi India Glass Ltd.	31,740		152,622
Astral Polytechnik Ltd.	12,517		195,256
Avanti Feeds Ltd.	15,789		93,931
Balkrishna Industries Ltd.	30,914		592,815
BASF India Ltd.	5,617		155,479
Bata India Ltd.	15,706		239,688
Bayer CropScience Ltd./India	3,628		225,244
Birla Corp. Ltd.	10,029		107,507
Blue Dart Express Ltd.	2,536		124,066
Can Fin Homes Ltd.	13,734		61,945
Canara Bank	60,394		241,572
Capital First Ltd.	20,716		188,186
Care Ratings Ltd.	9,616		175,735
Ceat Ltd.	9,001		175,943
Century Plyboards India Ltd.	31,046		97,765
Century Textiles & Industries Ltd.	14,132		194,896
CESC Ltd.	25,264		354,741
CG Power and Industrial Solutions Ltd.(a)	171,605		142,750
City Union Bank Ltd.	113,076		322,921
Coromandel International Ltd.	31,134		184,496
Cox & Kings Ltd.	43,342		137,983
CRISIL Ltd.	8,105		201,722
Crompton Greaves Consumer Electricals Ltd.	152,130		537,191
Dalmia Bharat Ltd.	8,859		327,687
DCB Bank Ltd.	67,288		169,533
Dewan Housing Finance Corp. Ltd.	56,380		530,722
Dilip Buildcon Ltd.(b)	13,555		160,173
Dish TV India Ltd.(a)	311,012		313,747
Dr Lal PathLabs Ltd.(b)	10,146		149,659
eClerx Services Ltd.	10,122		152,994

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 49

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
India (continued)
Edelweiss Financial Services Ltd.	176,713	$	698,244
EID Parry India Ltd.	55,881		170,417
EIH Ltd.	63,367		160,458
Endurance Technologies Ltd.(b)	12,120		259,330
Engineers India Ltd.	87,210		157,695
Eris Lifesciences Ltd.(a)(b)	15,378		157,376
Escorts Ltd.	26,786		328,470
Exide Industries Ltd.	93,527		375,947
Federal Bank Ltd.	601,519		687,802
Finolex Cables Ltd.	33,770		260,680
Fortis Healthcare Ltd.(a)	132,363		273,586
Future Lifestyle Fashions Ltd.	22,871		140,513
Gateway Distriparks Ltd.	41,630		109,260
Gayatri Projects Ltd.(a)	49,587		145,909
GE T&D India Ltd.	31,244		121,295
Gillette India Ltd.	3,297		307,851
GMR Infrastructure Ltd.(a)	910,913		270,989
Godfrey Phillips India Ltd.	9,359		116,674
Godrej Industries Ltd.	37,875		345,315
Godrej Properties Ltd.(a)	21,682		210,228
Graphite India Ltd.	18,869		269,495
Great Eastern Shipping Co. Ltd. (The)	33,825		145,360
GRUH Finance Ltd.	70,192		331,928
Gujarat Fluorochemicals Ltd.	13,781		150,321
Gujarat Gas Ltd.	16,083		175,612
Gujarat Mineral Development Corp. Ltd.	59,699		96,670
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.	18,041		99,647
Gujarat Pipavav Port Ltd.	99,691		156,158
Gujarat State Petronet Ltd.	65,427		177,575
HEG Ltd.	3,236		193,470
Hexaware Technologies Ltd.	38,100		235,714
Hindustan Construction Co. Ltd.(a)	303,128		60,689
IDFC Bank Ltd.	538,196		361,194
IDFC Ltd.	352,901		261,966
IIFL Holdings Ltd.	39,187		400,316
India Cements Ltd. (The)	91,469		163,010
Indiabulls Real Estate Ltd.(a)	98,133		213,557
Indiabulls Ventures Ltd.	66,937		728,248
Indian Bank(a)	37,471		175,636
Indian Hotels Co. Ltd. (The)	201,683		390,278
Indraprastha Gas Ltd.	87,016		356,278
Infibeam Avenues Ltd.	56,922		183,142
Info Edge India Ltd.	25,740		594,450
Inox Leisure Ltd.(a)	24,288		86,483
Ipca Laboratories Ltd.	19,435		211,432
IRB Infrastructure Developers Ltd.	61,123		163,997
Jain Irrigation Systems Ltd.	154,441		185,631
Jaiprakash Associates Ltd.(a)	486,534		81,974
Jammu & Kashmir Bank Ltd. (The)(a)	96,370		75,138
Jindal Steel & Power Ltd.(a)	158,074		491,988
JK Cement Ltd.	8,786		99,174
JM Financial Ltd.	93,391		158,535
JSW Energy Ltd.(a)	142,862		146,838
Jubilant Foodworks Ltd.	26,549		579,950
Jubilant Life Sciences Ltd.	30,580		311,378
Just Dial Ltd.(a)	13,530		106,531
Kajaria Ceramics Ltd.	28,823		190,531
Karnataka Bank Ltd. (The)	79,674		134,295
Karur Vysya Bank Ltd. (The)	138,797		183,168
Kaveri Seed Co. Ltd.	16,392		148,537

Security	Shares	Value
India (continued)
KEC International Ltd.	30,028	$	127,858
KPIT Technologies Ltd.	61,245		261,641
KRBL Ltd.	22,984		124,502
Lakshmi Machine Works Ltd.	1,230		124,768
Larsen & Toubro Infotech Ltd.(b)	13,582		344,260
Laurus Labs Ltd.(b)	25,153		155,490
Magma Fincorp Ltd.	51,838		111,860
Mahanagar Gas Ltd.	10,570		129,021
Mahindra CIE Automotive Ltd.(a)	48,438		180,636
Manappuram Finance Ltd.	175,346		247,470
Max Financial Services Ltd.(a)	52,902		334,189
Max India Ltd.(a)	94,911		118,026
Minda Industries Ltd.	29,578		179,341
Mindtree Ltd.	38,654		607,499
MOIL Ltd.	42,667		110,719
Motilal Oswal Financial Services Ltd.	14,957		175,611
Mphasis Ltd.	30,864		548,297
Muthoot Finance Ltd.	42,059		242,773
Natco Pharma Ltd.	36,642		402,809
National Aluminium Co. Ltd.	206,623		218,054
NBCC India Ltd.	195,155		198,247
NCC Ltd./India	187,467		260,744
NIIT Technologies Ltd.	12,987		257,575
Oberoi Realty Ltd.	26,754		166,292
PC Jeweller Ltd.(a)	69,309		82,329
Persistent Systems Ltd.	15,609		182,133
Pfizer Ltd./India	5,114		261,107
Phoenix Mills Ltd. (The)	24,819		219,474
PI Industries Ltd.	25,215		274,312
Power Finance Corp. Ltd.	273,690		325,682
Prestige Estates Projects Ltd.	48,960		163,634
PVR Ltd.	6,799		131,592
Quess Corp. Ltd.(a)(b)	15,510		213,659
Radico Khaitan Ltd.	23,266		161,834
Rain Industries Ltd.	35,840		95,681
Rajesh Exports Ltd.	33,208		310,607
Ramco Cements Ltd. (The)	27,733		269,544
Raymond Ltd.	11,932		141,861
RBL Bank Ltd.(b)	41,802		369,684
Redington India Ltd.	109,100		161,590
Reliance Capital Ltd.	40,561		270,040
Reliance Communications Ltd.(a)	279,903		72,022
Reliance Infrastructure Ltd.	56,308		379,442
Reliance Power Ltd.(a)	230,780		122,831
Repco Home Finance Ltd.	16,283		125,062
Sadbhav Engineering Ltd.	43,344		174,442
Sanofi India Ltd.	2,667		240,661
Shankara Building Products Ltd.	4,338		97,673
Sintex Plastics Technology Ltd., Class L(a)	243,670		129,863
Sobha Ltd.	18,811		121,881
Solara Active Pharma Sciences Ltd.(a)	8,131		40,359
Somany Ceramics Ltd.	10,667		71,130
SpiceJet Ltd.(a)	65,672		73,194
SRF Ltd.	6,890		196,462
Sterlite Technologies Ltd.	42,410		216,845
Strides Pharma Science Ltd.	19,916		139,445
Sun Pharma Advanced Research Co. Ltd.(a)	36,803		208,101
Sundaram Finance Ltd.	11,777		264,328
Sundram Fasteners Ltd.	22,418		208,752
Supreme Industries Ltd.	16,784		284,347

50 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
India (continued)
Suzlon Energy Ltd.(a)	1,591,705	$	160,458
Symphony Ltd.	8,670		133,473
Syngene International Ltd.(b)	23,305		195,473
Tata Communications Ltd.	27,081		206,182
Tata Elxsi Ltd.	8,125		164,485
Tata Global Beverages Ltd.	122,256		403,864
TeamLease Service Ltd.(a)	3,746		137,228
Thermax Ltd.	14,607		212,217
Thomas Cook India Ltd.	42,155		148,706
TI Financial Holdings Ltd.	29,761		246,140
Time Technoplast Ltd.	44,717		97,439
Timken India Ltd.	14,067		137,375
Torrent Power Ltd.	51,450		191,216
TTK Prestige Ltd.	1,776		179,151
Tube Investments of India Ltd.	43,807		181,123
TV18 Broadcast Ltd.(a)	217,945		141,504
Union Bank of India(a)	102,173		129,290
VA Tech Wabag Ltd.	17,773		97,314
Varun Beverages Ltd.	20,042		231,514
V-Guard Industries Ltd.	55,268		174,626
V-Mart Retail Ltd.	3,738		167,745
Voltas Ltd.	39,767		344,707
VRL Logistics Ltd.(a)	16,084		71,489
WABCO India Ltd.	2,179		219,991
Welspun India Ltd.	129,915		137,835
Whirlpool of India Ltd.	13,359		334,059
Wockhardt Ltd.(a)	15,290		143,121
			41,704,250
Indonesia — 2.4%
Ace Hardware Indonesia Tbk PT	2,972,900		274,484
Alam Sutera Realty Tbk PT(a)	5,903,300		130,650
Aneka Tambang Tbk	3,610,400		213,242
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT	945,600		123,897
Bumi Resources Tbk PT(a)	20,421,000		332,725
Ciputra Development Tbk PT	4,135,363		237,229
Delta Dunia Makmur Tbk PT(a)	2,274,600		106,549
Global Mediacom Tbk PT	3,239,200		94,999
Hanson International Tbk PT(a)	28,391,100		273,696
Harum Energy Tbk PT	393,300		68,354
Indika Energy Tbk PT	811,000		180,039
Indo Tambangraya Megah Tbk PT	142,600		273,970
Inti Agri Resources Tbk PT(a)	13,035,700		244,253
Japfa Comfeed Indonesia Tbk PT	1,875,800		280,160
Kawasan Industri Jababeka Tbk PT(a)	4,862,498		69,983
Krakatau Steel Persero Tbk PT(a)	2,687,300		75,894
Kresna Graha Investama Tbk PT(a)	5,046,200		256,935
Link Net Tbk PT	527,600		154,018
Lippo Karawaci Tbk PT	5,253,600		126,971
Medco Energi Internasional Tbk PT(a)	2,803,366		165,576
Media Nusantara Citra Tbk PT	2,435,900		149,660
Mitra Adiperkasa Tbk PT	3,293,100		186,676
Panin Financial Tbk PT(a)	9,126,800		126,400
Pelat Timah Nusantara Tbk PT(a)	60,300		10,807
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT	1,421,300		134,604
PP Persero Tbk PT	1,232,925		159,033
PP Properti Tbk PT	14,650,969		129,302
Ramayana Lestari Sentosa Tbk PT	1,199,400		103,411
Sawit Sumbermas Sarana Tbk PT	2,126,000		187,631

Security	Shares	Value
Indonesia (continued)
Siloam International Hospitals Tbk PT(a)	301,625	$	63,478
Sitara Propertindo Tbk PT(a)	3,881,800		259,577
Sri Rejeki Isman Tbk PT	4,301,400		100,454
Sugih Energy Tbk PT(a)	5,450,300		18,501
Summarecon Agung Tbk PT	3,889,600		174,279
Timah Tbk PT	1,311,696		69,458
Trada Alam Minera Tbk PT(a)	10,359,300		157,534
Tunas Baru Lampung Tbk PT	1,318,800		104,304
Visi Media Asia Tbk PT(a)	4,312,800		52,409
Waskita Beton Precast Tbk PT	5,877,900		155,627
Wijaya Karya Persero Tbk PT	1,291,048		135,854
			6,162,623
Malaysia — 3.4%
AEON Credit Service M Bhd	44,300		162,776
AirAsia X Bhd(a)(c)	1,288,600		105,045
Berjaya Sports Toto Bhd(c)	310,300		166,873
Bermaz Auto Bhd	418,800		218,088
Bumi Armada Bhd(a)(c)	1,222,400		165,089
Bursa Malaysia Bhd	266,450		497,953
Cahya Mata Sarawak Bhd	247,100		206,242
Carlsberg Brewery Malaysia Bhd	65,200		323,660
DRB-Hicom Bhd	319,300		176,374
Eastern & Oriental Bhd	469,781		177,190
Eco World Development Group Bhd(a)	488,700		148,649
Globetronics Technology BHD	245,266		168,305
Hengyuan Refining Co. Bhd	37,600		67,981
IGB REIT(c)	962,100		405,021
Inari Amertron Bhd	925,150		504,279
Kossan Rubber Industries	264,200		286,091
KPJ Healthcare Bhd	1,127,800		301,881
Lafarge Malaysia Bhd(a)(c)	154,000		121,791
Magnum Bhd	293,500		137,126
Mah Sing Group Bhd	475,457		136,523
Malaysia Building Society Bhd	708,200		182,672
Malaysian Pacific Industries Bhd	37,000		110,743
Malaysian Resources Corp. Bhd(c)	771,500		131,415
OSK Holdings Bhd	821,880		198,995
Padini Holdings Bhd	162,600		236,610
Pos Malaysia Bhd(c)	184,800		162,338
QL Resources Bhd	313,530		444,794
Sapura Energy Bhd(a)(c)	1,480,900		122,522
Scientex BHD	130,600		265,363
Serba Dinamik Holdings Bhd	292,600		274,123
SKP Resources Bhd(c)	429,800		129,688
Sunway Bhd	667,635		253,440
Sunway Construction Group Bhd	263,720		123,213
Sunway REIT	797,500		333,788
Supermax Corp. Bhd	192,300		157,228
TIME dotCom Bhd	170,400		340,012
Unisem M Bhd	209,800		147,542
Velesto Energy Bhd(a)(c)	1,305,600		85,780
VS Industry Bhd	573,825		220,621
WCT Holdings Bhd(c)	467,015		102,278
Yinson Holdings BHD	258,400		289,242
			8,789,344
Mexico — 3.3%
Banco del Bajio SA(b)	308,300		717,520
Bolsa Mexicana de Valores SAB de CV	154,200		311,376
Concentradora Fibra Danhos SA de CV	148,600		245,588

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 51

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Mexico (continued)
Concentradora Fibra Hotelera Mexicana SA de CV(b)	345,800	$	218,651
Consorcio ARA SAB de CV	429,200		145,457
Controladora Vuela Cia. de Aviacion SAB de CV, Class A(a)(c)	250,700		183,038
Corp Inmobiliaria Vesta SAB de CV	248,400		352,454
Credito Real SAB de CV SOFOM ER	113,300		145,532
Genomma Lab Internacional SAB de CV, Class B(a)(c)	323,500		279,840
Gentera SAB de CV	406,000		411,298
Grupo Aeromexico SAB de CV(a)	133,400		187,397
Grupo Aeroportuario del Centro Norte SAB de CV	126,700		835,058
Grupo Cementos de Chihuahua SAB de CV	65,800		429,719
Grupo Comercial Chedraui SA de CV	132,500		314,194
Grupo Herdez SAB de CV(c)	100,400		216,075
Hoteles City Express SAB de CV(a)	195,300		229,002
Industrias Bachoco SAB de CV, Series B(c)	78,100		377,460
Industrias CH SAB de CV, Series B(a)	65,571		256,276
La Comer SAB de CV(a)(c)	210,000		232,839
Macquarie Mexico Real Estate Management SA de CV	308,400		340,005
PLA Administradora Industrial S. de RL de CV	318,400		478,254
Prologis Property Mexico SA de CV	147,700		290,757
Qualitas Controladora SAB de CV(c)	75,200		188,349
Regional SAB de CV	87,900		539,293
Telesites SAB de CV(a)(c)	516,700		402,378
TV Azteca SAB de CV, CPO(c)	644,000		77,467
Unifin Financiera SAB de CV SOFOM ENR(c)	47,500		121,082
Urbi Desarrollos Urbanos SAB de CV(a)	1		—
			8,526,359
Pakistan — 0.8%
Bank Alfalah Ltd.	198,500		91,264
DG Khan Cement Co. Ltd.	118,673		107,785
Engro Corp. Ltd./Pakistan	103,500		274,244
Engro Fertilizers Ltd.	221,500		140,839
Fauji Cement Co. Ltd.	326,000		64,649
Fauji Fertilizer Co. Ltd.	198,500		155,874
Honda Atlas Cars Pakistan Ltd.	13,450		30,646
Hub Power Co. Ltd. (The)	221,900		165,116
Indus Motor Co. Ltd.	5,180		63,137
International Steels Ltd.	54,900		46,887
Kot Addu Power Co. Ltd.	132,000		60,317
Maple Leaf Cement Factory Ltd.	116,537		49,083
Millat Tractors Ltd.	15,490		156,508
National Bank of Pakistan(a)	127,500		53,752
Nishat Mills Ltd.	45,964		50,148
Packages Ltd.	13,600		53,119
Pakistan Oilfields Ltd.	36,250		187,823
Pakistan State Oil Co. Ltd.	60,798		168,256
Searle Co. Ltd. (The)	34,450		87,117
SUI Northern Gas Pipeline	78,300		61,101
Thal Ltd.	15,100		55,511
			2,123,176
Philippines — 0.9%
Bloomberry Resorts Corp.	1,540,200		275,097
Cebu Air Inc.	77,310		104,106
Cosco Capital Inc.	1,724,000		193,139
D&L Industries Inc.	1,342,100		264,564
DoubleDragon Properties Corp.(a)	325,810		155,386
Filinvest Land Inc.	5,355,000		151,232
First Gen Corp.	514,000		163,425
First Philippine Holdings Corp.	179,300		217,636

Security	Shares	Value
Philippines (continued)
Manila Water Co. Inc.	595,300	$	271,664
Megawide Construction Corp.	332,800		112,659
Melco Resorts And Entertainment (Philippines) Corp.(a)	660,700		84,274
Petron Corp.	1,071,600		181,580
Premium Leisure Corp.	3,500,000		56,950
Vista Land & Lifescapes Inc.	1,695,500		202,947
			2,434,659
Poland — 1.0%
Asseco Poland SA	30,048		374,738
Boryszew SA(a)	48,293		88,964
Budimex SA	5,153		159,611
Ciech SA	12,022		171,815
Enea SA(a)	98,110		227,651
Energa SA	86,889		198,309
Eurocash SA	34,737		192,163
Famur SA	131,173		204,576
KRUK SA	6,974		392,240
PKP Cargo SA(a)	13,493		182,573
Tauron Polska Energia SA(a)	461,822		250,960
Warsaw Stock Exchange	13,118		147,916
			2,591,516
Qatar — 0.8%
Gulf International Services QSC(a)	35,178		166,976
Gulf Warehousing Co.	14,372		157,185
Medicare Group	6,245		114,984
Qatar First Bank(a)	86,821		121,068
Qatar Gas Transport Co. Ltd.	103,404		494,494
Qatar National Cement Co. QSC	10,325		162,327
Qatar Navigation QSC	21,563		385,349
United Development Co. QSC	69,934		265,789
Vodafone Qatar QSC(a)	127,117		317,675
			2,185,847
Russia — 0.9%
Aeroflot PJSC	220,456		378,044
Credit Bank of Moscow PJSC(a)	3,333,100		247,432
Detsky Mir PJSC(b)	118,830		158,784
LSR Group PJSC, GDR, NVS(e)	101,549		207,160
M.Video PJSC(a)	21,160		136,032
Mechel PJSC, ADR, NVS(a)	37,583		99,971
Raspadskaya OAO(a)	66,430		97,968
Ros Agro PLC, GDR(e)	15,327		161,112
Safmar Financial Investment	20,110		239,874
Sistema PJSFC, GDR(e)	68,870		172,175
TMK PJSC, GDR, NVS(e)	36,500		153,300
Unipro PJSC	5,831,000		230,976
			2,282,828
South Africa — 4.9%
Adcock Ingram Holdings Ltd.	18,204		88,540
Advtech Ltd.	176,593		183,810
AECI Ltd.	43,949		312,176
African Rainbow Minerals Ltd.	44,243		380,276
Alexander Forbes Group Holdings Ltd.	309,139		111,618
Arrowhead Properties Ltd., Class A	441,704		177,269
Ascendis Health Ltd.(a)	95,728		78,405
Astral Foods Ltd.	16,454		290,722
Attacq Ltd.(a)	211,480		232,969
AVI Ltd.	124,664		987,101
Barloworld Ltd.	82,750		705,998
Blue Label Telecoms Ltd.	171,469		83,796

52 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
South Africa (continued)
Brait SE(a)	128,701	$	327,830
Cashbuild Ltd.	7,404		156,658
City Lodge Hotels Ltd.	15,559		147,612
Curro Holdings Ltd.(a)(c)	75,104		164,036
DataTec Ltd.	88,554		142,520
Delta Property Fund Ltd.	299,862		125,051
Dis-Chem Pharmacies Ltd.(b)(c)	136,600		315,412
Emira Property Fund Ltd.	197,619		215,407
EOH Holdings Ltd.	56,731		154,884
Equites Property Fund Ltd.	150,070		204,856
Famous Brands Ltd.(a)	28,403		197,311
Grindrod Ltd.(a)	154,051		89,058
Harmony Gold Mining Co. Ltd.	177,559		289,887
Hosken Consolidated Investments Ltd.	18,262		157,052
Hudaco Industries Ltd.	12,796		126,726
Impala Platinum Holdings Ltd.(a)	275,761		336,908
Invicta Holdings Ltd.	26,403		61,145
JSE Ltd.	31,680		350,202
KAP Industrial Holdings Ltd.	768,903		390,979
Massmart Holdings Ltd.	42,292		319,718
Metair Investments Ltd.	83,646		99,796
Mpact Ltd.	65,424		102,705
Murray & Roberts Holdings Ltd.	152,883		161,844
Nampak Ltd.(a)	251,539		270,575
Northam Platinum Ltd.(a)	142,956		380,143
Oceana Group Ltd.	16,431		88,484
Omnia Holdings Ltd.	25,477		226,056
PPC Ltd.(a)	601,272		251,979
Raubex Group Ltd.	63,034		94,091
Reunert Ltd.	66,003		342,556
SA Corporate Real Estate Ltd.	797,417		238,388
Sibanye Gold Ltd.(a)(c)	719,706		419,997
Stadio Holdings Ltd.(a)(c)	77,003		23,073
Steinhoff International Holdings NV, Class H(a)(c)	1,453,051		277,693
Sun International Ltd./South Africa(a)	46,055		168,173
Super Group Ltd./South Africa(a)	131,551		353,766
Tongaat Hulett Ltd.	41,583		224,444
Trencor Ltd.	62,988		144,108
Tsogo Sun Holdings Ltd.	193,500		277,612
Vukile Property Fund Ltd.	263,677		361,738
Wilson Bayly Holmes-Ovcon Ltd.	20,194		206,471
Zeder Investments Ltd.	401,584		136,500
			12,756,124
South Korea — 19.5%
Advanced Process Systems Corp.(a)(c)	5,353		125,271
Ahnlab Inc.	2,564		134,056
AK Holdings Inc.	2,669		161,125
Amicogen Inc.(a)	5,691		222,139
Ananti Inc.(a)	13,283		88,661
Anterogen Co. Ltd.(a)(c)	1,680		156,809
Aprogen KIC Inc.(a)(c)	8,018		81,754
Aprogen pharmaceuticals Inc.(a)	47,749		172,439
APS Holdings Corp.(a)	1		5
Asiana Airlines Inc.(a)	45,476		172,401
ATGen Co. Ltd.(a)	12,312		178,627
BGF Co. Ltd.	15,071		127,809
BH Co. Ltd.(a)	10,059		229,076
Binex Co. Ltd.(a)	13,775		147,879
Binggrae Co. Ltd.	3,469		218,458
Bukwang Pharmaceutical Co. Ltd.	12,521		290,205

Security	Shares	Value
South Korea (continued)
Cafe24 Corp.(a)	2,850	$	414,257
Caregen Co. Ltd.	1,873		141,003
Chabiotech Co. Ltd.(a)	1		17
Chong Kun Dang Pharmaceutical Corp.	2,830		275,843
CJ CGV Co. Ltd.	6,054		288,247
CJ Freshway Corp.	3,614		102,919
CMG Pharmaceutical Co. Ltd.(a)(c)	37,125		170,425
Com2uSCorp.	3,888		544,526
Cosmax Inc.(c)	3,084		421,118
CrystalGenomics Inc.(a)	13,435		240,180
Dae Hwa Pharmaceutical Co. Ltd.	6,079		171,478
Daeduck GDS Co. Ltd.	8,250		94,125
Daesang Corp.	9,552		228,256
Daewoong Co. Ltd.	10,592		176,510
Daewoong Pharmaceutical Co. Ltd.(c)	2,007		369,613
Daishin Securities Co. Ltd.	21,189		232,229
Daou Technology Inc.	12,236		249,524
DB HiTek Co. Ltd.	15,057		248,211
Dentium Co. Ltd.	2,904		244,185
DIO Corp.(a)	5,574		168,499
Dong-A Socio Holdings Co. Ltd.	1,973		186,107
Dong-A ST Co. Ltd.	2,332		215,780
Dongjin Semichem Co. Ltd.	14,870		148,947
DongKook Pharmaceutical Co. Ltd.	3,535		220,074
Dongkuk Steel Mill Co. Ltd.(c)	26,939		226,518
Dongwon F&B Co. Ltd.	537		138,935
Dongwon Industries Co. Ltd.	712		192,847
Doosan Infracore Co. Ltd.(a)	54,632		467,230
DoubleUGames Co. Ltd.	3,476		217,650
Douzone Bizon Co. Ltd.	7,731		395,874
Duk San Neolux Co. Ltd.(a)	5,513		85,680
Easy Bio Inc.	19,582		127,539
Ecopro Co. Ltd.(a)(c)	8,045		284,392
Enzychem Lifesciences Corp.(a)	2,636		265,222
Eo Technics Co Ltd.	3,743		201,079
Esmo Corp.(a)(c)	18,363		160,510
Eugene Corp.(c)	19,675		117,893
F&F Co. Ltd.	2,570		232,031
Fila Korea Ltd.	19,714		739,397
Foosung Co. Ltd.(a)	22,051		229,791
Gamevil Inc.(a)	1,948		96,599
GemVax & Kael Co. Ltd.(a)	11,442		151,614
Genexine Co. Ltd.(a)	5,375		482,381
Grand Korea Leisure Co. Ltd.	12,920		280,302
Green Cross Cell Corp.	2,720		131,461
Green Cross Corp./South Korea	2,504		440,897
Green Cross Holdings Corp.	12,173		335,177
GS Home Shopping Inc.	1,430		266,563
G-treeBNT Co. Ltd.(a)	8,374		249,381
Halla Holdings Corp.(c)	4,452		167,777
Hana Tour Service Inc.(c)	4,291		270,994
Hanall Biopharma Co. Ltd.(a)	11,678		332,563
Handsome Co. Ltd.	6,030		210,724
Hanil Cement Co. Ltd./New(a)(c)	774		105,342
Hanil Holdings Co. Ltd.	717		51,207
Hanjin Heavy Industries & Construction Co. Ltd.(a)	47,526		111,648
Hanjin Kal Corp.	18,641		303,106
Hanjin Transportation Co. Ltd.	4,727		125,909
Hankook Tire Worldwide Co. Ltd.(c)	12,330		201,595
Hansae Co. Ltd.	8,285		138,809

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 53

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
South Korea (continued)
Hansol Chemical Co. Ltd.(c)	3,850	$	287,760
Hansol Technics Co. Ltd.(a)	18,043		158,037
Hanwha Aerospace Co. Ltd.(a)	14,608		328,078
Hanwha General Insurance Co. Ltd.	24,052		150,602
Hanwha Investment & Securities Co. Ltd.(a)	60,252		139,920
Harim Holdings Co. Ltd.	21,867		209,211
HDC Holdings Co. Ltd.(c)	10,477		230,595
Hite Jinro Co. Ltd.	13,201		199,234
Homecast Co. Ltd.(a)(c)	13,038		102,955
HS Industries Co. Ltd.	21,293		171,201
Huchems Fine Chemical Corp.	8,607		196,009
Hugel Inc.(a)	978		376,563
Huons Co. Ltd.(c)	2,204		196,809
Huons Global Co. Ltd.	2,426		128,585
Hyosung Advanced Materials Corp.(a)	1,118		160,697
Hyosung Heavy Industries Corp.(a)	2,929		155,771
Hyosung TNC Co. Ltd.(a)	1,080		184,342
Hyundai Construction Equipment Co. Ltd.(a)	2,686		284,731
Hyundai Electric & Energy System Co. Ltd.(a)(c)	2,203		117,161
Hyundai Elevator Co. Ltd.	5,960		488,836
Hyundai Greenfood Co. Ltd.	24,472		286,897
Hyundai Home Shopping Network Corp.	2,852		290,798
Hyundai Livart Furniture Co. Ltd.	7,110		148,824
Hyundai Merchant Marine Co. Ltd.(a)(c)	98,870		404,131
Hyundai Mipo Dockyard Co. Ltd.(a)(c)	4,881		428,839
Hyundai Rotem Co. Ltd.(a)(c)	11,663		285,511
Hyundai Wia Corp.	6,860		262,839
Iljin Materials Co. Ltd.	8,311		413,627
Ilyang Pharmaceutical Co. Ltd.(a)	7,855		238,511
InBody Co. Ltd.	5,215		137,502
Innocean Worldwide Inc.	3,772		197,893
Innox Advanced Materials Co. Ltd.(a)	3,009		154,349
Inscobee Inc.(a)(c)	32,597		289,029
Interflex Co. Ltd.(a)	5,206		75,531
iNtRON Biotechnology Inc.(a)	5,395		193,864
IS Dongseo Co. Ltd.(c)	6,424		210,065
It’s Hanbul Co. Ltd.(c)	3,740		148,841
Jayjun Cosmetic Co. Ltd.(a)(c)	9,263		178,911
JB Financial Group Co. Ltd.	57,173		318,955
Jeil Pharmaceutical Co. Ltd.	3,555		132,376
Jeju Air Co. Ltd.	3,360		118,022
Jenax Inc.(a)	7,453		103,109
Jin Air Co. Ltd.	5,712		109,555
Jusung Engineering Co. Ltd.	18,979		154,642
JW Holdings Corp.	16,625		122,916
JW Pharmaceutical Corp.	5,983		247,511
JYP Entertainment Corp.(a)	10,719		310,549
KC Co. Ltd.	3,734		73,127
KEPCO Engineering & Construction Co. Inc.	5,785		108,617
Kginicis Co. Ltd.	7,665		127,733
KIWOOM Securities Co. Ltd.(c)	4,932		408,508
Koh Young Technology Inc.(c)	4,605		439,753
Kolmar BNH Co. Ltd.	5,905		142,433
Kolon Corp.(c)	3,867		138,783
Kolon Industries Inc.(c)	6,966		424,287
Kolon Life Science Inc.(a)	3,445		247,895
Komipharm International Co. Ltd.(a)	15,945		367,416
Korea Kolmar Co. Ltd.(c)	5,873		392,008
Korea Kolmar Holdings Co. Ltd.(c)	4,037		144,703
Korea Line Corp.(a)	5,484		116,020

Security	Shares	Value
South Korea (continued)
Korea Petrochemical Ind. Co Ltd.	1,382	$	267,548
Korea REIT Co. Ltd.	80,377		207,956
Korean Reinsurance Co.	37,071		346,349
KT Skylife Co. Ltd.	16,964		202,687
Kumho Tire Co. Inc.(a)	41,299		202,201
Kyung Dong Navien Co. Ltd.	2,371		106,393
L&F Co. Ltd.	5,651		245,453
LEENO Industrial Inc.(c)	4,651		256,544
LegoChem Biosciences Inc.(a)	3,465		130,426
LF Corp.	9,010		214,900
LG Hausys Ltd.	3,646		219,779
LG International Corp.(c)	15,562		297,777
LIG Nex1 Co. Ltd.	4,317		129,144
Lock&Lock Co. Ltd.	8,322		131,205
Lotte Chilsung Beverage Co. Ltd.(c)	177		214,661
LOTTE Fine Chemical Co. Ltd.	7,383		403,258
Lotte Food Co. Ltd.	274		201,842
LOTTE Himart Co. Ltd.	3,427		220,431
LS Corp.	7,353		443,895
LS Industrial Systems Co. Ltd.	6,086		391,464
Lutronic Corp.	9,651		107,074
Maeil Dairies Co. Ltd.	1,657		127,273
Mando Corp.	13,112		421,106
Medipost Co. Ltd.(a)	3,082		283,794
MeereCo. Inc.	1,385		141,965
Meritz Financial Group Inc.	19,576		216,309
Meritz Fire & Marine Insurance Co. Ltd.	19,471		319,225
Meritz Securities Co. Ltd.	128,752		458,032
Mezzion Pharma Co. Ltd.(a)(c)	2,925		198,390
Mirae Asset Life Insurance Co. Ltd.	36,068		168,165
Modetour Network Inc.	6,968		141,157
Muhak Co. Ltd.	13,086		170,460
Namhae Chemical Corp.	8,917		108,944
Nanomedics Co. Ltd.(a)(c)	8,964		72,636
Naturalendo Tech Co. Ltd.(a)	6,816		131,954
Nexen Tire Corp.	18,788		166,926
NHN Entertainment Corp.(a)	4,407		238,730
NICE Holdings Co. Ltd.	8,730		155,284
NICE Information Service Co. Ltd.	14,803		136,308
NongShim Co. Ltd.	1,180		264,484
NUTRIBIOTECH Co. Ltd.(a)	5,172		89,905
Orion Holdings Corp.(c)	9,792		175,054
Oscotec Inc.(a)	9,639		216,480
Osstem Implant Co. Ltd.(a)	5,280		236,216
Paradise Co. Ltd.(c)	18,538		337,236
Partron Co. Ltd.	19,710		141,829
Peptron Inc.(a)(c)	6,726		167,674
Pharmicell Co. Ltd.(a)(c)	21,103		343,138
Poongsan Corp.	8,442		255,198
POSCO Chemtech Co. Ltd.	8,269		449,422
Posco ICT Co. Ltd.	32,176		192,799
PSK Inc.	6,870		132,074
S&T Motiv Co. Ltd.	4,918		142,263
Sam Chun Dang Pharm Co. Ltd.	5,564		229,428
Samjin Pharmaceutical Co. Ltd.	4,809		238,042
Samwha Capacitor Co. Ltd.(c)	3,165		250,209
Samyang Corp.(c)	2,308		151,565
Samyang Foods Co. Ltd.	1,241		93,090
Samyang Holdings Corp.	1,694		155,224
Sangsangin Co. Ltd.(a)	12,883		280,656

54 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
South Korea (continued)
Seah Besteel Corp.	9,298	$	173,322
SeAH Steel Corp.	1,610		99,075
Seegene Inc.(a)	9,241		212,938
Seoul Semiconductor Co. Ltd.	16,004		253,758
SFA Engineering Corp.	8,295		284,660
Shinsegae International Inc.(c)	1,043		189,270
Silicon Works Co. Ltd.	4,883		203,102
SK Chemicals Co. Ltd.(a)(c)	3,899		303,331
SK Discovery Co. Ltd.	5,974		172,809
SK Gas Ltd.	1,844		141,139
SK Materials Co. Ltd.	2,206		357,708
SK Networks Co. Ltd.	67,987		273,621
SK Securities Co. Ltd.(a)	140,601		130,098
SKC Co. Ltd.	8,446		356,991
SKCKOLONPI Inc.	6,169		293,722
SM Entertainment Co. Ltd.(a)	7,651		333,698
Songwon Industrial Co. Ltd.	6,610		163,298
Soulbrain Co. Ltd.	3,982		236,455
SPC Samlip Co. Ltd.	1,144		128,464
Ssangyong Cement Industrial Co. Ltd.	51,336		281,318
Sungwoo Hitech Co. Ltd.	28,930		116,692
Taekwang Industrial Co. Ltd.	163		235,754
Taewoong Co. Ltd.(a)	6,896		98,191
Taeyoung Engineering & Construction Co. Ltd.	15,392		186,670
Taihan Fiberoptics Co. Ltd.(a)	23,799		148,804
Telcon RF Pharmaceutical Inc.(a)(c)	25,085		196,957
TES Co. Ltd./Korea(c)	7,368		137,345
Theragen Etex Co. Ltd.(a)(c)	10,541		128,312
Tokai Carbon Korea Co. Ltd.	2,456		138,338
Tongyang Inc.	86,939		146,050
Tongyang Life Insurance Co. Ltd.	20,197		119,206
Toptec Co. Ltd.(a)	7,920		133,761
Vieworks Co. Ltd.(c)	3,903		135,167
Webzen Inc.(a)	6,779		120,885
WeMade Entertainment Co. Ltd.	4,336		123,285
WONIK IPS Co. Ltd.	11,478		275,311
Young Poong Corp.	235		153,268
Youngone Corp.	9,523		296,431
Yuanta Securities Korea Co. Ltd.(a)(c)	45,751		144,879
Yungjin Pharmaceutical Co. Ltd.(a)	40,763		293,322
Yuyang DNU Co. Ltd.(a)(c)	19,030		173,521
			51,187,958
Taiwan — 19.9%
AcBel Polytech Inc.	338,000		222,839
Accton Technology Corp.	182,000		648,836
A-DATA Technology Co. Ltd.	94,000		160,059
Advanced Ceramic X Corp.	19,000		155,575
Advanced Wireless Semiconductor Co.	64,000		119,811
AmTRAN Technology Co. Ltd.(a)	349,312		146,708
Ardentec Corp.	177,000		219,845
Asia Optical Co. Inc.	88,000		231,496
Asia Pacific Telecom Co. Ltd.(a)	836,000		199,236
Asia Polymer Corp.	660,379		364,429
Asia Vital Components Co. Ltd.	150,000		142,846
ASMedia Technology Inc.	11,000		191,242
ASPEED Technology Inc.	9,000		209,507
BES Engineering Corp.	644,000		173,187
Bizlink Holding Inc.	42,770		222,100
Capital Securities Corp.	702,530		236,731
Career Technology MFG. Co. Ltd.	146,000		241,947

Security	Shares	Value
Taiwan (continued)
Casetek Holdings Ltd.	67,816	$	132,033
Cathay Real Estate Development Co. Ltd.	244,300		138,396
Center Laboratories Inc.	91,200		243,477
Charoen Pokphand Enterprise	78,000		131,799
Cheng Loong Corp.	293,000		204,618
Cheng Uei Precision Industry Co. Ltd.	169,000		154,337
Chilisin Electronics Corp.	80,000		289,110
China Bills Finance Corp.	360,000		165,261
China General Plastics Corp.	137,660		134,680
China Man-Made Fiber Corp.	506,595		192,148
China Motor Corp.	248,000		208,315
China Petrochemical Development Corp.(a)	1,013,000		468,325
China Steel Chemical Corp.	65,000		303,679
China Synthetic Rubber Corp.	211,856		293,143
Chin-Poon Industrial Co. Ltd.	153,000		189,040
Chipbond Technology Corp.	240,000		549,308
Chlitina Holding Ltd.	20,000		179,066
Chong Hong Construction Co. Ltd.	75,424		199,886
Chroma ATE Inc.	146,000		805,698
Chung Hung Steel Corp.(a)	378,000		172,294
Chunghwa Precision Test Tech Co. Ltd.	8,000		159,140
Cleanaway Co. Ltd.	54,000		319,095
Clevo Co.	227,000		233,541
CMC Magnetics Corp.(a)	621,000		146,986
Compeq Manufacturing Co. Ltd.	398,000		380,960
Concraft Holding Co. Ltd.	15,980		143,073
Coretronic Corp.	144,400		271,264
CSBC Corp. Taiwan(a)	62,475		71,801
CTCI Corp.	255,000		390,615
Cub Elecparts Inc.	21,009		181,259
Darwin Precisions Corp.	163,000		127,364
E Ink Holdings Inc.	342,000		408,641
Egis Technology Inc.	29,000		149,178
Elan Microelectronics Corp.	160,000		282,859
Elite Advanced Laser Corp.	60,324		145,728
Elite Material Co. Ltd.	105,000		303,565
Elite Semiconductor Memory Technology Inc.	125,000		149,560
eMemory Technology Inc.	29,000		298,356
Ennoconn Corp.	21,000		204,428
Epistar Corp.	378,000		435,657
Eternal Materials Co. Ltd.	486,399		425,985
Everlight Electronics Co. Ltd.	194,000		200,853
Far Eastern Department Stores Ltd.	413,000		235,308
Far Eastern International Bank	792,360		290,218
Faraday Technology Corp.	82,000		191,151
Farglory Land Development Co. Ltd.	154,000		157,936
Feng Hsin Steel Co. Ltd.	199,000		375,777
Firich Enterprises Co. Ltd.	99,155		151,404
FLEXium Interconnect Inc.	116,418		375,236
Foxsemicon Integrated Technology Inc.	28,200		148,735
Genius Electronic Optical Co. Ltd.	24,000		311,379
Getac Technology Corp.	169,000		230,817
Gigabyte Technology Co. Ltd.	204,000		348,025
Ginko International Co. Ltd.	18,000		121,309
Gintech Energy Corp.(a)	270,647		114,550
Global Unichip Corp.	34,000		346,476
Gloria Material Technology Corp.	248,850		148,265
Goldsun Building Materials Co. Ltd.	558,000		170,407
Gourmet Master Co. Ltd.	35,821		256,572
Grand Pacific Petrochemical	331,000		319,523

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 55

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Taiwan (continued)
Grape King Bio Ltd.	45,000	$	317,923
Great Wall Enterprise Co. Ltd.	219,128		298,211
Greatek Electronics Inc.	140,000		238,385
HannStar Display Corp.	1,032,320		275,935
Ho Tung Chemical Corp.(a)	496,342		132,509
Holtek Semiconductor Inc.	75,000		206,577
Holy Stone Enterprise Co. Ltd.	54,050		314,991
Hota Industrial Manufacturing Co. Ltd.	84,192		342,634
Hu Lane Associate Inc.	38,000		134,234
Huaku Development Co. Ltd.	112,080		237,917
Huang Hsiang Construction Corp.	98,000		84,552
Hung Sheng Construction Ltd.	267,400		278,587
International Games System Co. Ltd.	28,000		138,564
ITEQ Corp.	85,600		184,494
Jih Sun Financial Holdings Co. Ltd.	495,752		152,042
Kenda Rubber Industrial Co. Ltd.	232,341		237,901
Kerry TJ Logistics Co. Ltd.	114,000		149,204
Kindom Construction Corp.	159,000		114,403
King Slide Works Co. Ltd.	23,000		292,789
King Yuan Electronics Co. Ltd.	453,000		320,042
King’s Town Bank Co. Ltd.	314,000		315,891
Kinpo Electronics	880,000		293,668
Kinsus Interconnect Technology Corp.	105,000		168,533
LandMark Optoelectronics Corp.	27,400		234,615
LCY Chemical Corp.	224,000		377,770
Lealea Enterprise Co. Ltd.	288,590		105,232
Lien Hwa Industrial Corp.	284,494		337,614
Long Chen Paper Co. Ltd.	227,751		169,061
Lotes Co. Ltd.	23,000		175,973
Lung Yen Life Service Corp.	83,000		167,810
Machvision Inc.	13,000		204,851
Makalot Industrial Co. Ltd.	75,559		391,140
Masterlink Securities Corp.	420,121		151,826
Mercuries & Associates Holding Ltd.	166,436		130,049
Mercuries Life Insurance Co. Ltd.(a)	380,223		197,446
Merida Industry Co. Ltd.	88,000		422,595
Merry Electronics Co. Ltd.	71,000		383,721
Microbio Co. Ltd.(a)	266,727		156,311
Mitac Holdings Corp.	301,379		348,330
momo.com Inc.	18,000		113,983
Motech Industries Inc.(a)	220,344		79,988
Nan Kang Rubber Tire Co. Ltd.	281,000		230,545
Neo Solar Power Corp.(a)	461,364		147,955
OBI Pharma Inc.(a)	55,000		256,959
On-Bright Electronics Inc.	14,000		96,402
Oriental Union Chemical Corp.	223,000		236,323
Pan Jit International Inc.(a)	112,000		151,874
Pan-International Industrial Corp.	201,722		148,426
Parade Technologies Ltd.	28,000		414,781
PChome Online Inc.(a)	38,305		177,090
PharmaEngine Inc.	38,756		169,080
PharmaEssentia Corp.(a)	62,000		366,368
Pharmally International Holding Co. Ltd.	18,851		226,470
Pixart Imaging Inc.	49,635		205,230
Poya International Co. Ltd.	24,453		250,780
President Securities Corp.	437,741		198,099
Primax Electronics Ltd.	157,000		291,356
Prince Housing & Development Corp.	493,917		176,887
Qisda Corp.	661,000		449,777
Radiant Opto-Electronics Corp.	168,000		369,201

Security	Shares	Value
Taiwan (continued)
Radium Life Tech Co. Ltd.(a)	295,707	$	162,704
Ritek Corp.(a)	754,260		277,491
Roo Hsing Co. Ltd.(a)	352,000		165,600
Run Long Construction Co. Ltd.	66,000		124,630
Sanyang Motor Co. Ltd.	337,820		229,319
ScinoPharm Taiwan Ltd.	130,708		132,559
SDI Corp.	47,000		135,116
Senao International Co. Ltd.	58,000		77,421
Sercomm Corp.	98,000		172,294
Shin Zu Shing Co. Ltd.	62,000		180,661
Shining Building Business Co. Ltd.(a)	173,300		66,578
Shinkong Synthetic Fibers Corp.	538,135		239,152
Sigurd Microelectronics Corp.	179,000		203,098
Silergy Corp.	26,000		512,128
Simplo Technology Co. Ltd.	65,600		480,547
Sinbon Electronics Co. Ltd.	90,000		255,510
Sino-American Silicon Products Inc.	196,000		561,550
Sinyi Realty Inc.	111,778		122,459
Sitronix Technology Corp.	45,000		141,820
Soft-World International Corp.	41,140		96,973
Sporton International Inc.	33,330		149,749
St. Shine Optical Co. Ltd.	19,000		413,837
Sunny Friend Environmental Technology Co. Ltd.	25,000		187,205
Supreme Electronics Co. Ltd.	158,000		161,781
TA Chen Stainless Pipe	271,290		409,828
Taichung Commercial Bank Co. Ltd.	1,295,489		440,757
Tainan Spinning Co. Ltd.	440,190		192,758
Taiwan Cogeneration Corp.	187,000		157,381
Taiwan Fertilizer Co. Ltd.	353,000		486,718
Taiwan Glass Industry Corp.	415,000		220,910
Taiwan Hon Chuan Enterprise Co. Ltd.	111,004		189,735
Taiwan Paiho Ltd.	100,050		223,130
Taiwan Secom Co. Ltd.	122,450		349,629
Taiwan Semiconductor Co. Ltd.	86,000		205,795
Taiwan Shin Kong Security Co. Ltd.	248,640		297,494
Taiwan Styrene Monomer	222,000		161,540
Taiwan TEA Corp.	511,000		257,871
Taiwan Union Technology Corp.	84,000		326,811
Tatung Co. Ltd.(a)	776,000		947,420
TCI Co. Ltd.	30,181		550,264
Test Research Inc.	61,000		107,045
Ton Yi Industrial Corp.	473,000		207,895
Tong Hsing Electronic Industries Ltd.	65,000		178,821
Tong Yang Industry Co. Ltd.	138,133		197,204
Topco Scientific Co. Ltd.	66,000		167,605
TPK Holding Co. Ltd.	121,000		226,518
Transcend Information Inc.	108,000		261,253
Tripod Technology Corp.	172,000		529,748
TSRC Corp.	300,000		312,551
TTY Biopharm Co. Ltd.	88,450		252,838
Tung Ho Steel Enterprise Corp.	393,000		289,168
TXC Corp.	201,000		233,295
U-Ming Marine Transport Corp.	184,000		204,578
Unimicron Technology Corp.	490,000		280,775
Unitech Printed Circuit Board Corp.	221,420		136,968
United Integrated Services Co. Ltd.	93,000		187,726
UPC Technology Corp.	340,458		170,146
USI Corp.	395,070		177,502
Visual Photonics Epitaxy Co. Ltd.	62,425		191,858
Voltronic Power Technology Corp.	22,077		380,229

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Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares	Value
Taiwan (continued)
Wafer Works Corp.	196,681	$	302,562
Wah Lee Industrial Corp.	115,000		207,423
Walsin Lihwa Corp.	1,052,000		743,233
Waterland Financial Holdings Co. Ltd.	822,178		283,740
Win Semiconductors Corp.	1		5
Wistron NeWeb Corp.	119,481		266,853
Wowprime Corp.	33,000		84,447
WT Microelectronics Co. Ltd.	201,757		287,380
XinTec Inc.(a)	67,000		112,121
Xxentria Technology Materials Corp.	60,000		170,926
Yang Ming Marine Transport Corp.(a)	471,820		135,793
Yeong Guan Energy Technology Group Co. Ltd.	44,601		83,060
YFY Inc.	553,000		222,352
Yieh Phui Enterprise Co. Ltd.	625,782		205,776
Yulon Finance Corp.	44,000		147,550
Yulon Motor Co. Ltd.	357,000		244,664
YungShin Global Holding Corp.	165,200		219,980
Yungtay Engineering Co. Ltd.	153,000		233,373
Zinwell Corp.	194,000		144,008
			52,163,099
Thailand — 3.9%
Amata Corp. PCL, NVDR(c)	272,600		177,402
Bangchak Corp. PCL, NVDR	251,600		276,737
Bangkok Airways PCL, NVDR	451,600		179,371
Bangkok Chain Hospital PCL, NVDR	680,500		397,114
Bangkok Land PCL, NVDR	7,958,400		449,833
Beauty Community PCL, NVDR(c)	905,000		312,450
CH Karnchang PCL, NVDR	282,500		228,727
Chularat Hospital PCL, NVDR(c)	2,519,100		192,415
Eastern Polymer Group PCL, NVDR	571,500		158,895
Esso Thailand PCL, NVDR	453,200		218,777
GFPT PCL, NVDR(c)	332,300		150,261
Gunkul Engineering PCL, NVDR(c)	1,881,383		166,698
Hana Microelectronics PCL, NVDR	262,400		308,659
Italian-Thai Development PCL, NVDR(a)(c)	1,861,100		160,351
Jasmine International PCL, NVDR(c)	1,665,000		272,159
KCE Electronics PCL, NVDR(c)	219,900		304,017
Khon Kaen Sugar Industry PCL, NVDR(c)	890,630		89,798
Kiatnakin Bank PCL, NVDR	198,032		467,399
LPN Development PCL, NVDR	456,400		138,049
Major Cineplex Group PCL, NVDR	324,800		247,098
Muangthai Capital PCL, NVDR(c)	294,900		376,171
PTG Energy PCL, NVDR(c)	355,600		127,116
Quality Houses PCL, NVDR	3,027,267		320,023
Siam Global House PCL, NVDR(c)	735,028		428,935
Siamgas & Petrochemicals PCL, NVDR	311,500		114,207
Sino-Thai Engineering & Construction PCL, NVDR(a)	319,528		219,657
Sri Trang Agro-Industry PCL, NVDR(a)(c)	416,080		160,177
Srisawad Corp PCL, NVDR(c)	231,843		299,278
Supalai PCL, NVDR	420,900		311,206
Super Energy Corp. PCL, NVDR(a)	6,190,500		141,854
Taokaenoi Food & Marketing PCL, NVDR	255,300		122,463
Thai Airways International PCL, NVDR(a)	363,000		145,289
Thai Vegetable Oil PCL, NVDR	239,500		215,865
Thaicom PCL, NVDR(c)	308,800		95,291
Thanachart Capital PCL, NVDR	307,900		505,641
Tisco Financial Group PCL, NVDR(c)	153,340		384,170
TTW PCL, NVDR	977,000		370,144
VGI Global Media PCL, NVDR(c)	1,078,000		253,608
Vibhavadi Medical Center PCL, NVDR(c)	4,533,800		324,140

Security	Shares	Value
Thailand (continued)
WHA Corp. PCL, NVDR	3,573,200	$	438,871
Workpoint Entertainment PCL, NVDR(c)	84,900		104,407
			10,354,723
Turkey — 0.8%
AG Anadolu Grubu Holding AS(c)	45,761		125,144
Akcansa Cimento AS	51,147		73,914
Aygaz AS	57,474		104,060
Cimsa Cimento Sanayi VE Ticaret AS	102,636		156,536
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D(a)	366,411		232,940
Koza Altin Isletmeleri AS(a)(c)	22,066		146,612
Koza Anadolu Metal Madencilik Isletmeleri AS(a)(c)	100,148		86,957
Logo Yazilim Sanayi Ve Ticaret AS(a)	18,470		94,271
Otokar Otomotiv Ve Savunma Sanayi AS	10,171		109,355
Sasa Polyester Sanayi AS(a)(c)	57,687		82,146
Soda Sanayii AS	188,766		230,889
Tekfen Holding AS	89,599		276,824
Trakya Cam Sanayii AS	273,802		178,614
Turkiye Sinai Kalkinma Bankasi AS	1,338,921		153,661
Vestel Elektronik Sanayi ve Ticaret AS(a)(c)	62,452		81,386
			2,133,309
United Arab Emirates — 0.5%
Agthia Group PJSC	80,703		106,999
Air Arabia PJSC	875,016		240,602
Al Waha Capital PJSC	456,308		229,822
Amanat Holdings PJSC	551,603		184,711
Amlak Finance PJSC(a)	315,168		56,630
Arabtec Holding PJSC	283,142		146,460
Deyaar Development PJSC(a)	896,942		97,675
Drake & Scull International PJSC(a)	255,099		30,558
DXB Entertainments PJSC(a)	1,419,192		133,684
Eshraq Properties Co. PJSC(a)	616,015		95,593
			1,322,734
Total Common Stocks — 98.5% (Cost: $257,772,899)			258,124,867
Preferred Stocks
Brazil — 1.1%
Alpargatas SA, Preference Shares, NVS	63,500		186,488
Banco ABC Brasil SA, Preference Shares, NVS	28,123		100,681
Banco do Estado do Rio Grande do Sul SA, Class B, Preference Shares, NVS	71,600		254,591
Bradespar SA, Preference Shares, NVS	88,500		667,386
Cia. de Gas de Sao Paulo - COMGAS, Class A, Preference Shares, NVS	10,460		132,879
Cia. de Saneamento do Parana, Preference Shares, NVS	37,700		77,777
Cia. Energetica de Sao Paulo, Class B, Preference Shares, NVS	71,000		287,784
Cia. Paranaense de Energia, Preference Shares, NVS	42,500		210,329
Gol Linhas Aereas Inteligentes SA, Preference Shares, NVS	42,300		115,090
Marcopolo SA, Preference Shares, NVS	202,500		186,276
Metalurgica Gerdau SA, Preference Shares, NVS	267,200		509,743
Randon SA Implemetos e Participacoes, Preference Shares, NVS	85,425		136,428
			2,865,452

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 57

Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Colombia — 0.0%
Avianca Holdings SA, Preference Shares, NVS		144,902	$	101,036
Total Preferred Stocks — 1.1% (Cost: $2,764,687)				2,966,488
Warrants
Thailand — 0.0%
Samart Corp. PCL, NVDR (Expires 05/17/21)(a)		101,933		903
VGI Global Media PCL (Expires 08/14/19)(a)		223,440		0	(f)
				903
Total Warrants — 0.0% (Cost: $0)				903
Short-Term Investments
Money Market Funds — 8.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(g)(h)(i)		21,372,298		21,378,710
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(g)(h)		768,641		768,641
				22,147,351
Total Short-Term Investments — 8.5% (Cost: $22,140,939)				22,147,351
Total Investments in Securities — 108.1% (Cost: $282,678,525)				283,239,609
Other Assets, Less Liabilities — (8.1)%				(21,215,896	)
Net Assets — 100.0%			$	262,023,713

^(a)  Non-income producing security.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  All or a portion of this security is on loan.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

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

^(f)  Rounds to less than $1.

^(g)  Affiliate of the Fund.

^(h)  Annualized 7-day yield as of period-end.

⁽ⁱ⁾  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss	)(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		25,015,086	(3,642,788	)		21,372,298	$	21,378,710	$	1,425,055	(b)	$	(1,857	)	$	1,928
BlackRock Cash Funds: Treasury, SL Agency Shares		579,280	189,361			768,641		768,641		10,467			—			—
							$	22,147,351	$	1,435,522		$	(1,857	)	$	1,928

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Consolidated Financial Statements.

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Consolidated Schedule of Investments  (continued)	iShares® MSCI Emerging Markets Small-Cap ETF
August 31, 2018

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.

	Level 1		Level 2		Level 3		Total
Investments
Assets
Common Stocks	$	255,648,689	$	2,284,922	$	191,256	$	258,124,867
Preferred Stocks		2,966,488		—		—		2,966,488
Warrants		903		—		—		903
Money Market Funds		22,147,351		—		—		22,147,351
	$	280,763,431	$	2,284,922	$	191,256	$	283,239,609

See notes to consolidated financial statements.

C O N S O L I D A T E D    S C H E D U L E    O F    I N V E S T M E N T S 59

Consolidated Statements of Assets and Liabilities

August 31, 2018

	iShares Core MSCI Emerging Markets ETF			iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF			iShares MSCI Emerging Markets Small-Cap ETF
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	48,873,466,459		$	204,878,817		$	440,011,092		$	261,092,258
Affiliated(c)		2,782,198,002			3,028,140			31,295,545			22,147,351
Cash		21,922,264			274,963			793,573			1,334,998
Cash pledged:
Futures contracts		8,272,200			—			—			—
Foreign currency, at value(d)		79,337,292			523,758			418,334			336,698
Receivables:
Investments sold		270,778,388			8,018,610			1,297,338			7,413,087
Securities lending income — Affiliated		5,176,054			9,581			30,155			94,027
Variation margin on futures contracts		855,232			—			—			—
Capital shares sold		86,130,499			—			—			—
Securities related to in-kind transactions		12,677,509			—			—			—
Dividends		85,189,370			333,408			663,871			510,707
Tax reclaims		17,535			—			—			—
Total assets		52,226,020,804			217,067,277			474,509,908			292,929,126
LIABILITIES
Collateral on securities loaned, at value		2,671,392,371			3,027,951			31,293,428			21,374,807
Deferred foreign capital gain tax		63,273,075			699,271			936,417			23,388
Payables:
Investments purchased		404,568,649			2,230,496			1,549,004			5,520,756
Bank borrowings		—			240,083			—			1,200,415
Capital shares redeemed		—			5,670,961			—			2,600,134
Securities related to in-kind transactions		—			—			—			6,910
Investment advisory fees		5,360,282			134,369			181,569			157,351
Foreign taxes		1,700,843			—			11,310			21,652
Total liabilities		3,146,295,220			12,003,131			33,971,728			30,905,413
NET ASSETS	$	49,079,725,584		$	205,064,146		$	440,538,180		$	262,023,713
NET ASSETS CONSIST OF:
Paid-in capital	$	46,280,853,903		$	415,172,546		$	422,693,386		$	280,007,735
Undistributed net investment income		396,725,467			1,966,005			3,898,199			377,735
Accumulated net realized loss		(1,863,833,463	)		(227,748,807	)		(41,996,247	)		(18,892,958	)
Net unrealized appreciation		4,265,979,677			15,674,402			55,942,842			531,201
NET ASSETS	$	49,079,725,584		$	205,064,146		$	440,538,180		$	262,023,713
Shares outstanding		939,000,000			5,000,000			6,350,000			5,500,000
Net asset value	$	52.27		$	41.01		$	69.38		$	47.64
Shares authorized		2.05 billion			500 million			500 million			500 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a)  Securities loaned, at value	$	2,495,007,198		$	2,784,731		$	30,182,472		$	19,715,880
(b)  Investments, at cost — Unaffiliated	$	44,539,710,422		$	188,486,261		$	383,134,968		$	260,537,586
(c)  Investments, at cost — Affiliated	$	2,781,565,667		$	3,027,444		$	31,290,610		$	22,140,939
(d)  Foreign currency, at cost	$	79,341,433		$	528,385		$	418,520		$	338,128

See notes to consolidated financial statements.

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Consolidated Statements of Operations

Year Ended August 31, 2018

	iShares Core MSCI Emerging Markets ETF			iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF			iShares MSCI Emerging Markets Small-Cap ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	1,279,761,682		$	6,916,398		$	12,950,827		$	7,792,933
Dividends — Affiliated		1,328,581			4,883			14,322			10,467
Interest — Unaffiliated		57,975			—			—			2
Securities lending income — Affiliated — net(a)		52,553,227			108,720			273,096			1,425,055
Foreign taxes withheld		(136,301,399	)		(497,757	)		(1,491,453	)		(791,693	)
Other foreign taxes		(2,417,343	)		—			(26,291	)		(39,386	)
Total investment income		1,194,982,723			6,532,244			11,720,501			8,397,378
EXPENSES
Investment advisory fees		63,877,649			1,986,671			2,762,084			1,980,905
Commitment fees		246,564			3,235			4,044			2,543
Proxy fees		3,167			34			37			23
Mauritius income taxes		1,630,758			17,671			29,479			3,086
Interest expense		37,530			965			901			3,870
Total expenses		65,795,668			2,008,576			2,796,545			1,990,427
Less:
Investment advisory fees waived		(1,918,019	)		—			—			—
Total expenses after fees waived		63,877,649			2,008,576			2,796,545			1,990,427
Net investment income		1,131,105,074			4,523,668			8,923,956			6,406,951
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated(b)		(769,513,579	)		(6,790,116	)		(10,181,906	)		(4,000,701	)
Investments — Affiliated		(166,484	)		(1,995	)		(2,039	)		(1,857	)
In-kind redemptions — Unaffiliated		—			25,726,738			35,489,555			17,337,917
Futures contracts		(991,302	)		—			—			—
Foreign currency transactions		(8,675,620	)		(134,722	)		(130,215	)		(177,625	)
Net realized gain (loss)		(779,346,985	)		18,799,905			25,175,395			13,157,734
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated(c)		(1,554,090,315	)		(26,831,580	)		(22,403,360	)		(26,430,370	)
Investments — Affiliated		326,475			(1,441	)		3,664			1,928
Futures contracts		(10,041,554	)		—			—			—
Foreign currency translations		(2,248,237	)		(20,964	)		(2,890	)		(8,199	)
Net change in unrealized appreciation (depreciation)		(1,566,053,631	)		(26,853,985	)		(22,402,586	)		(26,436,641	)
Net realized and unrealized gain (loss)		(2,345,400,616	)		(8,054,080	)		2,772,809			(13,278,907	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(1,214,295,542	)	$	(3,530,412	)	$	11,696,765		$	(6,871,956	)
(a)  Net of securities lending income tax paid of	$	2,601,035		$	—		$	—		$	—
(b)  Net of foreign capital gain tax of	$	2,456,180		$	—		$	—		$	49,732
(c)  Net of deferred foreign capital gain tax of	$	51,183,927		$	590,670		$	853,544		$	23,388

See notes to consolidated financial statements.

C O N S O L I D A T E D    F I N A N C I A L    S T A T E M E N T S 61

Consolidated Statements of Changes in Net Assets

	iShares Core MSCI Emerging Markets ETF						iShares MSCI BRIC ETF
		Year Ended			Year Ended			Year Ended			Year Ended
		08/31/18			08/31/17			08/31/18			08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	1,131,105,074		$	673,065,996		$	4,523,668		$	4,074,906
Net realized gain (loss)		(779,346,985	)		(251,417,814	)		18,799,905			4,403,874
Net change in unrealized appreciation (depreciation)		(1,566,053,631	)		5,496,593,394			(26,853,985	)		45,791,924
Net increase (decrease) in net assets resulting from operations		(1,214,295,542	)		5,918,241,576			(3,530,412	)		54,270,704
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(1,110,833,238	)		(472,049,457	)		(4,984,880	)		(2,786,991	)
Decrease in net assets resulting from distributions to shareholders		(1,110,833,238	)		(472,049,457	)		(4,984,880	)		(2,786,991	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		14,629,556,824			15,325,617,290			(48,122,268	)		27,730,095
NET ASSETS
Total increase (decrease) in net assets		12,304,428,044			20,771,809,409			(56,637,560	)		79,213,808
Beginning of year		36,775,297,540			16,003,488,131			261,701,706			182,487,898
End of year	$	49,079,725,584		$	36,775,297,540		$	205,064,146		$	261,701,706
Undistributed net investment income included in net assets at end of year	$	396,725,467		$	335,190,679		$	1,966,005		$	2,438,261

See notes to consolidated financial statements.

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Consolidated Statements of Changes in Net Assets  (continued)

	iShares MSCI Emerging Markets Asia ETF						iShares MSCI Emerging Markets Small-Cap ETF
		Year Ended			Year Ended			Year Ended			Year Ended
		08/31/18			08/31/17			08/31/18			08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	8,923,956		$	6,168,348		$	6,406,951		$	4,272,056
Net realized gain (loss)		25,175,395			(1,931,555	)		13,157,734			(1,051,152	)
Net change in unrealized appreciation (depreciation)		(22,402,586	)		71,503,450			(26,436,641	)		29,206,941
Net increase (decrease) in net assets resulting from operations		11,696,765			75,740,243			(6,871,956	)		32,427,845
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(10,521,349	)		(3,388,608	)		(8,416,326	)		(3,832,107	)
Decrease in net assets resulting from distributions to shareholders		(10,521,349	)		(3,388,608	)		(8,416,326	)		(3,832,107	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(61,967,541	)		212,115,628			23,792,902			103,772,829
NET ASSETS
Total increase (decrease) in net assets		(60,792,125	)		284,467,263			8,504,620			132,368,567
Beginning of year		501,330,305			216,863,042			253,519,093			121,150,526
End of year	$	440,538,180		$	501,330,305		$	262,023,713		$	253,519,093
Undistributed net investment income included in net assets at end of year	$	3,898,199		$	4,251,863		$	377,735		$	1,578,413

See notes to consolidated financial statements.

C O N S O L I D A T E D    F I N A N C I A L    S T A T E M E N T S 63

Consolidated Financial Highlights

(For a share outstanding throughout each period)

	iShares Core MSCI Emerging Markets ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	53.91		$	44.60		$	40.75		$	53.89		$	45.71
Net investment income(a)		1.39			1.31			1.20			1.21			1.31
Net realized and unrealized gain (loss)(b)		(1.61	)		8.95			3.58			(13.26	)		7.78
Net increase (decrease) from investment operations		(0.22	)		10.26			4.78			(12.05	)		9.09
Distributions(c)
From net investment income		(1.42	)		(0.95	)		(0.93	)		(1.09	)		(0.91	)
Total distributions		(1.42	)		(0.95	)		(0.93	)		(1.09	)		(0.91	)
Net asset value, end of year	$	52.27		$	53.91		$	44.60		$	40.75		$	53.89
Total Return
Based on net asset value		(0.52	)%		23.45	%		11.99	%		(22.61	)%		20.05	%
Ratios to Average Net Assets
Total expenses		0.14	%		0.15	%		0.17	%		0.18	%		0.18	%
Total expenses after fees waived		0.14	%		0.14	%		0.17	%		0.18	%		0.17	%
Net investment income		2.48	%		2.74	%		2.93	%		2.49	%		2.61	%
Supplemental Data
Net assets, end of year (000)	$	49,079,726		$	36,775,298		$	16,003,488		$	7,025,331		$	5,669,167
Portfolio turnover rate(d)		6	%		4	%		10	%		7	%		8	%

(a)	Based on average shares outstanding.
(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)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d)	Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

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Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

		iShares MSCI BRIC ETF
		Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year		$	42.21		$	33.48		$	30.74		$	41.12		$	34.41
Net investment income(a)			0.68			0.70			0.64			0.77			0.89
Net realized and unrealized gain (loss)(b)			(1.13	)		8.57			2.84			(10.20	)		6.53
Net increase (decrease) from investment operations			(0.45	)		9.27			3.48			(9.43	)		7.42
Distributions(c)
From net investment income			(0.75	)		(0.54	)		(0.74	)		(0.95	)		(0.71	)
Total distributions			(0.75	)		(0.54	)		(0.74	)		(0.95	)		(0.71	)
Net asset value, end of year		$	41.01		$	42.21		$	33.48		$	30.74		$	41.12
Total Return
Based on net asset value			(1.16	)%		28.15	%		11.61	%		(23.19	)%		21.73	%
Ratios to Average Net Assets
Total expenses			0.67	%		0.70	%		0.73	%		0.69	%		0.68	%
Net investment income			1.51	%		1.96	%		2.13	%		2.07	%		2.38	%
Supplemental Data
Net assets, end of year (000)		$	205,064		$	261,702		$	182,488		$	196,758		$	411,164
Portfolio turnover rate(d)			22	%		24	%		20	%		9	%		10	%
(a)	Based on average shares outstanding.
(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)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d)	Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

C O N S O L I D A T E D    F I N A N C I A L    H I G H L I G H T S 65

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

		iShares MSCI Emerging Markets Asia ETF
		Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year		$	69.15		$	56.33		$	50.87		$	62.08		$	52.23
Net investment income(a)			1.16			1.31			1.02			1.25			1.36
Net realized and unrealized gain (loss)(b)			0.42			12.43			5.54			(11.61	)		9.75
Net increase (decrease) from investment operations			1.58			13.74			6.56			(10.36	)		11.11
Distributions(c)
From net investment income			(1.35	)		(0.92	)		(1.10	)		(0.85	)		(1.26	)
Total distributions			(1.35	)		(0.92	)		(1.10	)		(0.85	)		(1.26	)
Net asset value, end of year		$	69.38		$	69.15		$	56.33		$	50.87		$	62.08
Total Return
Based on net asset value			2.22	%		24.80	%		13.14	%		(16.86	)%		21.54	%(d)
Ratios to Average Net Assets
Total expenses			0.50	%		0.49	%		0.66	%		0.68	%		0.68	%
Total expenses after fees waived			0.50	%		0.49	%		0.49	%		0.49	%		0.49	%
Net investment income			1.58	%		2.16	%		1.98	%		2.10	%		2.36	%
Supplemental Data
Net assets, end of year (000)		$	440,538		$	501,330		$	216,863		$	124,637		$	80,706
Portfolio turnover rate(e)			33	%		15	%		22	%		16	%		33	%
(a)	Based on average shares outstanding.
(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)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d)	Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return would have been 21.46%.
(e)	Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

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Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

		iShares MSCI Emerging Markets Small-Cap ETF
		Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year		$	49.23		$	43.27		$	40.06		$	51.37		$	43.78
Net investment income(a)			1.10			1.04			0.90			1.04			0.93
Net realized and unrealized gain (loss)(b)			(1.22	)		5.81			3.36			(11.06	)		7.67
Net increase (decrease) from investment operations			(0.12	)		6.85			4.26			(10.02	)		8.60
Distributions(c)
From net investment income			(1.47	)		(0.89	)		(1.05	)		(1.29	)		(1.01	)
Total distributions			(1.47	)		(0.89	)		(1.05	)		(1.29	)		(1.01	)
Net asset value, end of year		$	47.64		$	49.23		$	43.27		$	40.06		$	51.37
Total Return
Based on net asset value			(0.38	)%		16.17	%		10.83	%		(19.77	)%		19.92	%(d)
Ratios to Average Net Assets
Total expenses			0.67	%		0.69	%		0.71	%		0.69	%		0.67	%
Net investment income			2.14	%		2.32	%		2.20	%		2.20	%		1.93	%
Supplemental Data
Net assets, end of year (000)		$	262,024		$	253,519		$	121,151		$	76,120		$	43,666
Portfolio turnover rate(e)			39	%		19	%		24	%		23	%		20	%
(a)	Based on average shares outstanding.
(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)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d)	Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return would have been 19.73%.
(e)	Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

C O N S O L I D A T E D    F I N A N C I A L    H I G H L I G H T S 67

Notes to Consolidated Financial Statements

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

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

Basis of Consolidation: The accompanying consolidated financial statements for each Fund includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (each, a “Subsidiary”) of the Fund that invests in Indian securities included in the underlying index. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its consolidated statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the consolidated statement 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.

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 each Subsidiary and are disclosed in the consolidated statement 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.

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Notes to Consolidated Financial Statements  (continued)

The DTAA 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.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

N O T E S    T O    C O N S O L I D A T E D    F I N A N C I A L    S T A T E M E N T S 69

Notes to Consolidated Financial Statements  (continued)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its consolidated schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the consolidated schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its consolidated schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the consolidated statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

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Notes to Consolidated Financial Statements   (continued)

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
Core MSCI Emerging Markets
Barclays Bank PLC	$	118,734,333	$	118,734,333		$	—	$	—
Barclays Capital Inc.		25,984,684		25,984,684			—		—
BNP Paribas New York Branch		7,855,367		7,764,627			—		(90,740	)(b)
BNP Paribas Securities Corp.		4,190,784		4,156,714			—		(34,070	)(b)
Citigroup Global Markets Inc.		172,749,162		172,749,162			—		—
Citigroup Global Markets Ltd.		82,900,955		82,900,955			—		—
Credit Suisse Securities (Europe) Ltd.		36,700,830		36,700,830			—		—
Credit Suisse Securities (USA) LLC		207,274,275		207,274,275			—		—
Deutsche Bank AG		1,284,837		1,284,837			—		—
Deutsche Bank Securities Inc.		10,934,935		10,934,935			—		—
Goldman Sachs & Co.		232,788,457		232,788,457			—		—
Goldman Sachs International		109,897,980		109,897,980			—		—
HSBC Bank PLC		74,451,052		74,451,052			—		—
ING Financial Markets LLC		34,940,190		34,940,190			—		—
Jefferies LLC		5,055,248		5,055,248			—		—
JPMorgan Securities LLC		244,035,762		244,035,762			—		—
JPMorgan Securities PLC		57,404,882		57,404,882			—		—
Macquarie Bank Limited		30,098,649		30,098,649			—		—
Merrill Lynch, Pierce, Fenner & Smith		255,947,500		255,947,500			—		—
Morgan Stanley & Co. International PLC		162,476,203		162,476,203			—		—
Morgan Stanley & Co. LLC		506,553,064		506,553,064			—		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		45,137,308		45,137,308			—		—
SG Americas Securities LLC		710,509		710,509			—		—
State Street Bank & Trust Company		1,549,675		1,549,675			—		—
UBS AG		19,054,470		19,054,470			—		—
UBS Ltd.		13,029,155		13,029,155			—		—
UBS Securities LLC		20,052,726		20,052,726			—		—
Wells Fargo Securities LLC		13,214,206		13,214,206			—		—
	$	2,495,007,198	$	2,494,882,388		$	—	$	(124,810	)
MSCI BRIC
Citigroup Global Markets Inc.	$	936,734	$	936,734		$	—	$	—
Credit Suisse Securities (USA) LLC		681,976		681,976			—		—
Goldman Sachs & Co.		151,743		151,743			—		—
Macquarie Bank Limited		77,160		77,160			—		—
Morgan Stanley & Co. LLC		937,118		937,118			—		—
	$	2,784,731	$	2,784,731		$	—	$	—
MSCI Emerging Markets Asia
Barclays Bank PLC	$	1,746,482	$	1,746,482		$	—	$	—
Barclays Capital Inc.		387,502		387,502			—		—
BNP Paribas New York Branch		606,445		599,411			—		(7,034	)(b)
Citigroup Global Markets Inc.		413,349		413,349			—		—
Credit Suisse Securities (USA) LLC		516,084		516,084			—		—
Deutsche Bank AG		119,813		119,813			—		—
HSBC Bank PLC		550,827		550,827			—		—
Jefferies LLC		132,765		132,765			—		—
JPMorgan Securities LLC		20,203,285		20,203,285			—		—
Macquarie Bank Limited		603,246		603,246			—		—
Morgan Stanley & Co. International PLC		283,377		283,377			—		—
Morgan Stanley & Co. LLC		4,471,666		4,471,666			—		—
Scotia Capital (USA) Inc.		30,784		30,258			—		(526	)(b)
UBS AG		116,847		116,847			—		—
	$	30,182,472	$	30,174,912		$	—	$	(7,560	)

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Notes to Consolidated Financial Statements   (continued)

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
MSCI Emerging Markets Small-Cap
Barclays Bank PLC	$	6,689	$	6,689		$	—	$	—
Barclays Capital Inc.		889,835		889,835			—		—
Citigroup Global Markets Inc.		1,308,658		1,308,658			—		—
Credit Suisse Securities (USA) LLC		1,995,645		1,995,645			—		—
Deutsche Bank AG		86,399		86,399			—		—
Deutsche Bank Securities Inc.		1,033,031		1,033,031			—		—
Goldman Sachs & Co.		3,577,510		3,577,510			—		—
HSBC Bank PLC		1,084,545		1,084,545			—		—
JPMorgan Securities LLC		2,127,848		2,127,848			—		—
JPMorgan Securities PLC		28,531		28,531			—		—
Macquarie Bank Limited		576,460		576,460			—		—
Merrill Lynch, Pierce, Fenner & Smith		586,935		586,935			—		—
Morgan Stanley & Co. International PLC		244,612		244,612			—		—
Morgan Stanley & Co. LLC		4,678,678		4,678,678			—		—
SG Americas Securities LLC		358,920		358,920			—		—
UBS AG		457,047		457,047			—		—
UBS Securities LLC		674,537		674,537			—		—
	$	19,715,880	$	19,715,880		$	—	$	—

^(a)  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.

^(b)  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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the consolidated schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the consolidated statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the consolidated statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the consolidated statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

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Notes to Consolidated Financial Statements   (continued)

For its investment advisory services to each of the following Funds, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

iShares ETF	Investment Advisory Fee
Core MSCI Emerging Markets	0.14	%
MSCI Emerging Markets Asia	0.49

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, accrued daily and paid monthly by the Funds, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $14 billion	0.75	%
Over $14 billion, up to and including $28 billion	0.68
Over $28 billion, up to and including $42 billion	0.61
Over $42 billion, up to and including $56 billion	0.54
Over $56 billion, up to and including $70 billion	0.47
Over $70 billion, up to and including $84 billion	0.41
Over $84 billion	0.35

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.

Expense Waivers: The total of the investment advisory fee and any fund other expenses are a fund’s total annual operating expenses. For the iShares Core MSCI Emerging Markets ETF, BFA has contractually agreed to waive a portion of its investment advisory fee through December 31, 2022 in order to limit the Fund’s total annual operating expenses after fee waiver to 0.14% of average daily net assets.

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its consolidated statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid to BTC
Core MSCI Emerging Markets	$	13,424,029
MSCI BRIC		31,667
MSCI Emerging Markets Asia		69,595
MSCI Emerging Markets Small-Cap		327,668

For the year ended August 31, 2018, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares Core MSCI Emerging Markets ETF in the amount of $111,073, related to foreign tax on income earned from the lending of Taiwan securities. The voluntary waiver was discontinued effective January 1, 2018. Such reimbursement is included in securities lending income – affiliated – net in the consolidated statement of operations.

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

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Notes to Consolidated Financial Statements   (continued)

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, 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	$	79,971,358	$	96,525,604
MSCI BRIC		2,050,120		1,615,277
MSCI Emerging Markets Asia		2,217,935		3,530,820
MSCI Emerging Markets Small-Cap		1,871,008		7,470,096

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 shown as dividends – affiliated in the consolidated statement of operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF		Purchases		Sales
Core MSCI Emerging Markets	$	12,784,516,754	$	2,650,586,252
MSCI BRIC		65,597,704		66,028,304
MSCI Emerging Markets Asia		219,416,437		182,932,882
MSCI Emerging Markets Small-Cap		190,246,659		114,980,133

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF		In-kind Purchases		In-kind Sales
Core MSCI Emerging Markets	$	4,471,278,874	$	—
MSCI BRIC		28,190,735		76,530,198
MSCI Emerging Markets Asia		—		98,754,838
MSCI Emerging Markets Small-Cap		—		52,537,046

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ consolidated financial statements.

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. As of August 31, 2018, the following permanent differences attributable to foreign currency transactions, passive foreign investment companies, the characterization of corporate actions, realized gains (losses) from in-kind redemptions, the expiration of capital loss carryforwards and the characterization of expenses, were reclassified to the following accounts:

iShares ETF	Paid-in Capital		Undistributed (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
Core MSCI Emerging Markets	$	—	$	41,262,952		$	(41,262,952	)
MSCI BRIC		13,371,913		(11,044	)		(13,360,869	)
MSCI Emerging Markets Asia		34,390,871		1,243,729			(35,634,600	)
MSCI Emerging Markets Small-Cap		16,604,865		808,697			(17,413,562	)

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Notes to Consolidated Financial Statements   (continued)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
Core MSCI Emerging Markets
Ordinary income	$	1,110,833,238	$	472,049,457
MSCI BRIC
Ordinary income	$	4,984,880	$	2,786,991
MSCI Emerging Markets Asia
Ordinary income	$	10,521,349	$	3,388,608
MSCI Emerging Markets Small-Cap
Ordinary income	$	8,416,326	$	3,832,107

As of August 31, 2018, 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
Core MSCI Emerging Markets	$	518,981,235	$	(1,039,051,226	)	$	3,318,941,672		$	2,798,871,681
MSCI BRIC		2,124,392		(223,773,168	)		11,540,376			(210,108,400	)
MSCI Emerging Markets Asia		4,833,365		(34,528,807	)		47,540,236			17,844,794
MSCI Emerging Markets Small-Cap		3,017,505		(9,761,132	)		(11,240,395	)		(17,984,022	)

^(a)  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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the timing and recognition of partnership income and the characterization of corporate actions.

As of August 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non-Expiring(a)		Expiring 2019		Total
Core MSCI Emerging Markets	$	1,039,051,226	$	—	$	1,039,051,226
MSCI BRIC		216,012,610		7,760,558		223,773,168
MSCI Emerging Markets Asia		34,528,807		—		34,528,807
MSCI Emerging Markets Small-Cap		9,761,132		—		9,761,132

^(a)  Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2018, the iShares MSCI Emerging Markets Small-Cap ETF utilized $2,083,076 of its capital loss carryforwards.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Core MSCI Emerging Markets	$	48,271,385,471	$	7,650,111,948	$	(4,265,832,958	)	$	3,384,278,990
MSCI BRIC		195,647,731		39,660,029		(27,400,803	)		12,259,226
MSCI Emerging Markets Asia		422,828,184		79,337,565		(30,859,112	)		48,478,453
MSCI Emerging Markets Small-Cap		294,449,229		34,522,303		(45,731,923	)		(11,209,620	)

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

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Notes to Consolidated Financial Statements   (continued)

9. LINE OF CREDIT

The Funds, along with certain other iShares funds, are parties to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. 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 ended August 31, 2018, the maximum amount borrowed, the average borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

iShares ETF	Maximum Amount Borrowed		Average Borrowing		Weighted Average Interest Rates
Core MSCI Emerging Markets	$	43,000,000	$	1,400,000		2.64	%
MSCI BRIC		1,200,000		30,904		2.95
MSCI Emerging Markets Asia		800,000		32,438		2.74
MSCI Emerging Markets Small-Cap		5,900,000		119,726		3.02

At a meeting held on September 12-13, 2018, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $300 million and (ii) extending the expiration date to October 23, 2019. These changes to the credit agreement are expected to be effective on or around October 25, 2018.

10. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a fund’s exposure to market risk is the market value of the investments held as shown in the fund’s consolidated schedule of investments.

Investing in the securities of non-U.S. issuers involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its consolidated statement of assets and liabilities.

Concentration Risk: 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 consolidated schedule of investments.

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Notes to Consolidated Financial Statements   (continued)

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

11. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
Core MSCI Emerging Markets
Shares sold		256,800,000		$	14,629,556,824			323,400,000		$	15,325,617,290
MSCI BRIC
Shares sold		1,450,000		$	67,260,906			3,600,000		$	130,590,725
Shares redeemed		(2,650,000	)		(115,383,174	)		(2,850,000	)		(102,860,630	)
Net increase (decrease)		(1,200,000	)	$	(48,122,268	)		750,000		$	27,730,095
MSCI Emerging Markets Asia
Shares sold		2,100,000		$	159,314,183			4,300,000		$	262,708,017
Shares redeemed		(3,000,000	)		(221,281,724	)		(900,000	)		(50,592,389	)
Net increase (decrease)		(900,000	)	$	(61,967,541	)		3,400,000		$	212,115,628
MSCI Emerging Markets Small-Cap
Shares sold		2,450,000		$	129,553,510			2,350,000		$	103,772,829
Shares redeemed		(2,100,000	)		(105,760,608	)		—			—
Net increase		350,000		$	23,792,902			2,350,000		$	103,772,829

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the consolidated statement of assets and liabilities.

12. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

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Notes to Consolidated Financial Statements  (continued)

13. 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 additional disclosure in the consolidated financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of iShares Core MSCI Emerging Markets ETF, iShares MSCI BRIC ETF,

iShares MSCI Emerging Markets Asia ETF and iShares MSCI Emerging Markets Small-Cap ETF

Opinions on the Financial Statements

We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of iShares Core MSCI Emerging Markets ETF, iShares MSCI BRIC ETF, iShares MSCI Emerging Markets Asia ETF and iShares MSCI Emerging Markets Small-Cap ETF and their subsidiaries (four of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related consolidated statements of operations for the year ended August 31, 2018, the consolidated statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the consolidated financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These consolidated financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information  (unaudited)

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend    Income
Core MSCI Emerging Markets	$	763,859,165
MSCI BRIC		4,328,092
MSCI Emerging Markets Asia		8,568,002
MSCI Emerging Markets Small-Cap		3,884,298

For the fiscal year ended August 31, 2018, 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	$	1,327,585,717	$	145,338,582
MSCI BRIC		6,899,297		515,425
MSCI Emerging Markets Asia		14,107,713		1,547,111
MSCI Emerging Markets Small-Cap		8,405,956		880,739

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Board Review and Approval of Investment Advisory Contract

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates

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Board Review and Approval of Investment Advisory Contract  (continued)

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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 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. At a meeting on May 11,

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Board Review and Approval of Investment Advisory Contract  (continued)

2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

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Board Review and Approval of Investment Advisory Contract  (continued)

including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. At these meetings, the 15(c) Committee reviewed and discussed information provided in response to the 15(c) Committee’s initial requests,

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Board Review and Approval of Investment Advisory Contract  (continued)

and requested certain additional information, which management agreed to provide. At a meeting held on May 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information considered.

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Board Review and Approval of Investment Advisory Contract  (continued)

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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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

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Board Review and Approval of Investment Advisory Contract  (continued)

Contract for the Fund, based on a review of qualitative and quantitative information provided by BFA. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with

B O A R D   R E V I E  W   A N D   A P P R O V A  L   O F   I N V E S T M E  N T   A D V I S O R Y   C  O N T R A C T 87

Board Review and Approval of Investment Advisory Contract  (continued)

the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information  (unaudited)

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
Core MSCI Emerging Markets	$	1.375501	$	—	$	0.039875	$	1.415376		97	%		—	%		3	%		100	%
MSCI BRIC		0.641602		—		0.110420		0.752022		85			—			15			100
MSCI Emerging Markets Asia		1.242084		—		0.108340		1.350424		92			—			8			100
MSCI Emerging Markets Small-Cap		1.472497		—		—		1.472497		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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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 Core MSCI Emerging Markets ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 2.0% and Less than 2.5%		8		0.58
Greater than 1.5% and Less than 2.0%		27		1.95
Greater than 1.0% and Less than 1.5%		70		5.06
Greater than 0.5% and Less than 1.0%		309		22.33
Greater than 0.0% and Less than 0.5%		503		36.35
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		285		20.59
Less than –0.5% and Greater than –1.0%		112		8.09
Less than –1.0% and Greater than –1.5%		38		2.75
Less than –1.5% and Greater than –2.0%		14		1.01
Less than –2.0% and Greater than –2.5%		5		0.36
Less than –3.0% and Greater than –3.5%		2		0.14
		1,384		100.00	%

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Supplemental Information  (unaudited) (continued)

iShares MSCI BRIC ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		1		0.07
Greater than 1.5% and Less than 2.0%		8		0.58
Greater than 1.0% and Less than 1.5%		31		2.24
Greater than 0.5% and Less than 1.0%		137		9.90
Greater than 0.0% and Less than 0.5%		373		26.95
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		431		31.13
Less than –0.5% and Greater than –1.0%		251		18.14
Less than –1.0% and Greater than –1.5%		93		6.72
Less than –1.5% and Greater than –2.0%		29		2.10
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%		3		0.22
Less than –3.5% and Greater than –4.0%		1		0.07
Less than –6.0%		1		0.07
		1,384		100.00	%

iShares MSCI Emerging Markets Asia ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		1		0.07	%
Greater than 2.0% and Less than 2.5%		8		0.58
Greater than 1.5% and Less than 2.0%		23		1.66
Greater than 1.0% and Less than 1.5%		88		6.36
Greater than 0.5% and Less than 1.0%		271		19.58
Greater than 0.0% and Less than 0.5%		426		30.79
At NAV		16		1.16
Less than 0.0% and Greater than –0.5%		268		19.36
Less than –0.5% and Greater than –1.0%		174		12.57
Less than –1.0% and Greater than –1.5%		66		4.77
Less than –1.5% and Greater than –2.0%		19		1.37
Less than –2.0% and Greater than –2.5%		13		0.94
Less than –2.5% and Greater than –3.0%		6		0.43
Less than –3.0% and Greater than –3.5%		5		0.36
		1,384		100.00	%

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Supplemental Information  (unaudited) (continued)

iShares MSCI Emerging Markets Small-Cap ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
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%		1		0.07
Greater than 3.5% and Less than 4.0%		2		0.14
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%		19		1.37
Greater than 1.5% and Less than 2.0%		39		2.82
Greater than 1.0% and Less than 1.5%		128		9.25
Greater than 0.5% and Less than 1.0%		353		25.51
Greater than 0.0% and Less than 0.5%		444		32.09
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		214		15.46
Less than –0.5% and Greater than –1.0%		109		7.88
Less than –1.0% and Greater than –1.5%		35		2.53
Less than –1.5% and Greater than –2.0%		16		1.16
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%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
		1,384		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD if such managers market a fund to EU investors.

BFA has registered the iShares Core MSCI Emerging Markets ETF and 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

BFA is required under the AIFMD 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 Funds.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the each 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.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

S U P P L E M E N T A L    I N F O R M A T I O  N 91

Supplemental Information  (unaudited) (continued)

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

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 each 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 iShares Core MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2017 was USD 4.04 million. This figure is comprised of fixed remuneration of USD 1.61 million and variable remuneration of USD 2.43 million. There were a total of 417 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, 2017, to its senior management was USD 564.98 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 105.25 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, 2017 was USD 28.71 thousand. This figure is comprised of fixed remuneration of USD 11.44 thousand and variable remuneration of USD 17.27 thousand. There were a total of 417 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, 2017, to its senior management was USD 4.02 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.75 thousand.

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Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^(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. and its affiliates.

^(b) Mark K. 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.

Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information  (continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

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General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

G E N E R A L    I N F O R M A T I O N 95

Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity

ADR	American Depositary Receipt
CPO	Certificates of Participation (Ordinary)
GDR	Global Depositary Receipt
NVDR	Non-Voting Depositary Receipt
NVS	Non-Voting Shares

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

	This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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. ©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

  2018 ANNUAL REPORT

iShares, Inc.

▶ iShares Currency Hedged MSCI Emerging Markets ETF | HEEM | Cboe BZX

▶ iShares MSCI Emerging Markets ETF | EEM | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		10
Shareholder Expenses		10
Schedules of Investments		11
Financial Statements
Statements of Assets and Liabilities		27
Statements of Operations		28
Statements of Changes in Net Assets		29
Financial Highlights		30
Notes to Financial Statements		32
Report of Independent Registered Public Accounting Firm		42
Important Tax Information (Unaudited)		43
Board Review and Approval of Investment Advisory Contract		44
Supplemental Information		48
Director and Officer Information		51
General Information		53
Glossary of Terms Used in this Report		54

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T    O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® Currency Hedged MSCI Emerging Markets ETF

Investment Objective

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 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.

Performance

	Average Annual Total Returns						Cumulative Total Returns
	1 Year			Since Inception			1 Year			Since Inception
Fund NAV		2.77	%		4.57	%		2.77	%		19.24	%
Fund Market		2.57			4.57			2.57			19.26
Index		3.52			5.04			3.52			21.34

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 9/23/14. The first day of secondary market trading was 9/25/14.

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 10 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)(b)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)(b)	Annualized Expense Ratio	(a)
	$        1,000.00	$        961.60	$           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.

^(b)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.

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Fund Summary as of August 31, 2018    (continued) iShares^® Currency Hedged MSCI Emerging Markets ETF

Portfolio Management Commentary

The Brazilian equity market detracted the most from the Index’s return in U.S. dollar terms for the reporting period as public debt expanded significantly. In addition, Brazil’s economy slowed during the latter half of the reporting period as a nationwide truckers’ strike disrupted transportation.

Equity markets in Turkey and South Africa also weighed on the Index’s performance. In Turkey, sharply rising inflation, concerns about the government’s ability to control the currency crisis, and escalating political tensions with the U.S. led to an economic slowdown and steep market losses. Stocks in South Africa declined as the economy slipped into recession late in the reporting period.

On the upside, stocks in Taiwan contributed to the Index’s return in U.S. dollar terms, driven largely by technology-related stocks. Solid demand for semiconductors and electronic components boosted Taiwan’s export-driven economy.

Indian and South Korean equities also contributed to the Index’s return. In India, robust economic growth coupled with strong corporate earnings drove gains as the country recovered from the short-term setbacks of long-term reform measures. South Korean stocks advanced as strong demand for exports outweighed a domestic economic slowdown.

From a sector perspective, consumer discretionary and financials stocks were the key detractors from the Index’s performance. Within the consumer discretionary sector, retailers faced a slowdown in consumer spending, and weaker sales weighed on automotive stocks. In the financials sector, bank stocks declined despite strong profitability amid slowing loan growth, trade concerns, and changing regulatory policies.

On the upside, energy stocks contributed meaningfully to the Index’s return. Crude oil prices rose sharply during the reporting period, leading to higher revenues for energy companies. Larger energy companies increased their market share as cost, tax, and regulatory issues weighed on smaller companies. The information technology sector was another contributor to the Index’s performance as investors’ expectations for growth rose amid an ongoing shift toward e-commerce, cloud computing, and mobile devices.

In general, emerging market currencies depreciated against the U.S. dollar for the reporting period, as rising U.S. interest rates and bond yields drove investors to shift capital away from emerging markets. The Chinese yuan and Taiwan new dollar depreciated against the U.S. dollar by approximately 3% and 2%, respectively. The Brazilian real declined by 24% against the U.S. dollar due to political uncertainty, while the Turkish lira depreciated by 48%, as Turkey’s large trade deficits and dollar-denominated debt led to a currency crisis.

The negative performance of some foreign currencies meant hedging activity contributed to the Index’s return. A fully hedged investor seeks to bypass the currency fluctuations — both on the upside and on the downside — related to holding foreign-currency-denominated securities. The Index’s hedging activity offset the negative impact of foreign currency performance relative to the U.S. dollar, resulting in an Index return that was relatively close to the Index’s return measured in local currencies.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Information Technology	27.6%
Financials	23.0
Consumer Discretionary	9.3
Materials	7.8
Energy	7.6
Consumer Staples	6.5
Industrials	5.3
Telecommunication Services	4.4
Health Care	3.2
Real Estate	2.9
Utilities	2.4

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
China	31.3%
South Korea	14.7
Taiwan	12.1
India	9.3
South Africa	6.2
Brazil	5.7
Russia	3.4
Mexico	3.1
Malaysia	2.5
Thailand	2.4

^(a) Excludes money market funds.

F U N D    S U M M A R Y 7

Fund Summary as of August 31, 2018 iShares^® MSCI Emerging Markets ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			10 Years			1 Year			5 Years			10 Years
Fund NAV		(1.28	)%		4.43	%		2.75	%		(1.28	)%		24.22	%		31.17	%
Fund Market		(1.50	)		4.63			2.75			(1.50	)		25.39			31.18
Index		(0.68	)		5.04			3.45			(0.68	)		27.87			40.38

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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 10 for more information.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	895.90	$	3.25		$	1,000.00	$	1,021.80	$	3.47		0.68	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.

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Fund Summary as of August 31, 2018    (continued) iShares^® MSCI Emerging Markets ETF

Portfolio Management Commentary

The Brazilian equity market detracted the most from the Index’s return for the reporting period as the Brazilian real depreciated sharply against the U.S. dollar and public debt expanded significantly. In addition, Brazil’s economy slowed during the latter half of the reporting period as a nationwide truckers’ strike disrupted transportation.

Equity markets in Turkey and South Africa also weighed on the Index’s performance. In Turkey, sharply rising inflation, a significantly weaker Turkish lira, concerns about the government’s ability to control the currency crisis, and escalating political tensions with the U.S. led to an economic slowdown and steep market losses. Stocks in South Africa declined as the economy slipped into recession late in the reporting period and the South African rand weakened.

On the upside, stocks in Taiwan contributed to the Index’s return, driven largely by technology-related stocks. Solid demand for semiconductors and electronic components boosted Taiwan’s export-driven economy.

Indian and South Korean equities also contributed to the Index’s return. In India, robust economic growth coupled with strong corporate earnings drove gains as the country recovered from the short-term setbacks of long-term reform measures. South Korean stocks advanced as strong demand for exports outweighed a domestic economic slowdown.

From a sector perspective, consumer discretionary and financials stocks were the key detractors from the Index’s performance. Within the consumer discretionary sector, retailers faced a slowdown in consumer spending, and weaker sales weighed on automotive stocks. In the financials sector, bank stocks declined despite strong profitability amid slowing loan growth, trade concerns, and changing regulatory policies.

On the upside, energy stocks contributed meaningfully to the Index’s return. Crude oil prices rose sharply during the reporting period, leading to higher revenues for energy companies. Larger energy companies increased their market share as cost, tax, and regulatory issues weighed on smaller companies. The information technology sector was another contributor to the Index’s performance as investors’ expectations for growth rose amid an ongoing shift toward e-commerce, cloud computing, and mobile devices.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Information Technology	27.6%
Financials	23.0
Consumer Discretionary	9.3
Materials	7.8
Energy	7.6
Consumer Staples	6.5
Industrials	5.3
Telecommunication Services	4.4
Health Care	3.2
Real Estate	2.9
Utilities	2.4

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
China	31.3%
South Korea	14.7
Taiwan	12.1
India	9.3
South Africa	6.2
Brazil	5.7
Russia	3.4
Mexico	3.1
Malaysia	2.5
Thailand	2.4

^(a) Excludes money market funds.

F U N D    S U M M A R Y 9

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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Schedule of Investments   August 31, 2018 iShares^® Currency Hedged MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Investment Companies
Exchange-Traded Funds — 100.0%
iShares MSCI Emerging Markets ETF(a)(b)		7,975,290	$	344,293,269
Total Investment Companies — 100.0% (Cost: $332,596,142)				344,293,269
Short-Term Investments
Money Market Funds — 47.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(a)(c)(d)		155,991,380		156,038,177
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(a)(c)		7,866,429		7,866,429
				163,904,606
Total Short-Term Investments — 47.6% (Cost: $163,902,058)				163,904,606
Total Investments in Securities — 147.6% (Cost: $496,498,200)				508,197,875
Other Assets, Less Liabilities — (47.6)%				(163,870,110	)
Net Assets — 100.0%			$	344,327,765

^(a)  Affiliate of the Fund.

^(b)  All or a portion of this security is on loan.

^(c)  Annualized 7-day yield as of period-end.

^(d)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Shares Purchased		Shares Sold		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	—	155,991,380	(b)	—		155,991,380	$	156,038,177	$	404,724	(c)	$	(12,236	)	$	2,548
BlackRock Cash Funds: Treasury, SL Agency Shares	—	7,866,429	(b)	—		7,866,429		7,866,429		11,607			—			—
iShares MSCI Emerging Markets ETF	8,795,358	2,534,758		(3,354,826	)	7,975,290		344,293,269		8,630,949			27,790,313			(39,455,804	)
							$	508,197,875	$	9,047,280		$	27,778,077		$	(39,453,256	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Net of purchases and sales.

^(c)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Forward Foreign Currency Exchange Contracts

Forward foreign currency exchange contracts outstanding as of August 31, 2018 were as follows:

Currency Purchased		Currency Sold			Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
BRL	172,140,000		USD	41,438,705	MS	09/05/18	$	823,945
CNY	8,679,320		USD	1,268,428	MS	09/05/18		42
EUR	5,000		USD	5,774	MS	09/05/18		30
HKD	653,532,000		USD	83,264,152	MS	09/05/18		1,591
INR	2,132,847,000		USD	30,040,099	MS	09/05/18		31,236
KRW	3,329,331,000		USD	2,980,279	MS	09/05/18		10,631
MXN	413,905,000		USD	21,628,672	MS	09/05/18		35,792
RUB	679,160,000		USD	9,968,078	MS	09/05/18		94,483

S C H E D U L E    O F    I N V E S T M E N T  S 11

Schedule of Investments  (continued) August 31, 2018 iShares^® Currency Hedged MSCI Emerging Markets ETF

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
TRY	11,748,000	USD	1,734,703	MS	09/05/18	$	53,383
TWD	1,267,000	USD	41,135	MS	09/05/18		115
USD	22,420,905	BRL	83,714,000	MS	09/05/18		1,868,009
USD	11,174,266	CLP	7,378,038,000	MS	09/05/18		350,077
USD	2,525,360	CNY	17,248,640	MS	09/05/18		4,497
USD	14,104,101	EUR	12,083,000	MS	09/05/18		78,760
USD	83,332,027	HKD	653,532,000	MS	09/05/18		66,284
USD	32,564,477	INR	2,246,748,000	MS	09/05/18		887,235
USD	2,298,543	KRW	2,550,429,000	MS	09/05/18		7,361
USD	11,219,559	MXN	209,779,000	MS	09/05/18		239,383
USD	10,270,883	RUB	644,604,000	MS	09/05/18		720,310
USD	2,510,985	TRY	12,635,000	MS	09/05/18		587,894
USD	58,679,988	TWD	1,792,636,000	MS	09/05/18		316,453
USD	46,164,263	ZAR	643,488,000	MS	09/05/18		2,374,675
BRL	3,300,000	USD	798,400	MS	10/04/18		9,137
EUR	147,000	USD	170,799	MS	10/04/18		199
INR	27,733,000	USD	389,552	MS	10/04/18		374
KRW	904,084,000	USD	809,496	MS	10/04/18		1,441
MXN	5,583,000	USD	288,636	MS	10/04/18		2,226
RUB	14,286,000	USD	210,739	MS	10/04/18		416
TWD	20,081,000	USD	655,255	MS	10/04/18		490
USD	5,336,842	CLP	3,609,293,000	MS	10/04/18		35,280
USD	7,085,377	EUR	6,049,000	MS	10/04/18		48,866
USD	78,805,466	HKD	618,221,000	MS	10/04/18		677
USD	2,310,084	INR	164,247,000	MS	10/04/18		770
USD	59,423,708	KRW	65,969,018,000	MS	10/04/18		251,425
USD	334,413	RUB	22,603,000	MS	10/04/18		328
USD	22,273,563	ZAR	328,050,000	MS	10/04/18		38,794
ZAR	16,876,000	USD	1,141,511	MS	10/04/18		2,321
CNY	202,000	USD	29,485	MS	10/09/18		24
USD	1,208,573	CNY	8,272,320	MS	10/09/18		88
							8,945,042
BRL	4,002,000	USD	985,496	MS	09/05/18		(2,952	)
CLP	7,378,038,000	USD	10,879,653	MS	09/05/18		(55,463	)
CNY	8,691,320	USD	1,272,134	MS	09/05/18		(1,910	)
EUR	12,163,000	USD	14,183,092	MS	09/05/18		(64,891	)
HKD	653,532,000	USD	83,269,223	MS	09/05/18		(3,480	)
INR	113,901,000	USD	1,629,134	MS	09/05/18		(23,226	)
KRW	65,313,264,000	USD	58,803,696	MS	09/05/18		(129,425	)
MXN	10,335,000	USD	550,314	MS	09/05/18		(9,363	)
TRY	887,000	USD	157,804	MS	09/05/18		(22,800	)
TWD	1,816,966,000	USD	59,189,623	MS	09/05/18		(33,966	)
USD	22,355,538	BRL	92,428,000	MS	09/05/18		(336,760	)
USD	16,827	CNY	116,000	MS	09/05/18		(126	)
USD	98,161	EUR	85,000	MS	09/05/18		(503	)
USD	83,264,152	HKD	653,532,000	MS	09/05/18		(1,591	)
USD	59,168,243	KRW	66,092,166,000	MS	09/05/18		(205,756	)
USD	11,216,215	MXN	214,461,000	MS	09/05/18		(9,024	)
USD	508,552	RUB	34,556,000	MS	09/05/18		(3,436	)

12 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments   (continued) August 31, 2018 iShares^® Currency Hedged MSCI Emerging Markets ETF

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	830,136	TWD	25,597,000	MS		09/05/18		$            (3,235	)
ZAR	643,488,000	USD	43,927,943	MS		09/05/18		(138,355	)
CLP	78,967,000	USD	116,043	MS		10/04/18		(51	)
HKD	16,005,000	USD	2,040,174	MS		10/04/18		(12	)
TRY	159,000	USD	23,912	MS		10/04/18		(130	)
USD	20,288,597	BRL	84,952,000	MS		10/04/18		(499,875	)
USD	2,786,348	HKD	21,860,000	MS		10/04/18		(152	)
USD	30,255,556	INR	2,158,614,000	MS		10/04/18		(94,583	)
USD	2,129,974	KRW	2,376,086,000	MS		10/04/18		(1,306	)
USD	10,958,934	MXN	210,896,000	MS		10/04/18		(28,274	)
USD	9,559,261	RUB	653,463,000	MS		10/04/18		(99,295	)
USD	1,733,149	TRY	11,911,000	MS		10/04/18		(48,415	)
USD	59,650,692	TWD	1,828,616,000	MS		10/04/18		(62,737	)
USD	248,854	ZAR	3,680,000	MS		10/04/18		(571	)
CNY	109,000	USD	15,944	MS		10/09/18		(21	)
USD	13,391	CNY	92,000	MS		10/09/18		(49	)
								(1,881,733	)
	Net unrealized appreciation						$	7,063,309

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Foreign Currency Exchange Contracts
Assets — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts	$	8,945,042
Liabilities — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts	$	1,881,733

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Foreign Currency Exchange Contracts
Net Realized Gain (Loss) from:
Forward foreign currency exchange contracts	$	5,868,058
Net Change in Unrealized Appreciation (Depreciation) on:
Forward foreign currency exchange contracts	$	8,608,170

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Forward foreign currency exchange contracts:
Average amounts purchased — in USD	$	495,458,109
Average amounts sold — in USD	$	853,905,875

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

S C H E D U L E    O F    I N V E S T M E N T  S 13

Schedule of Investments  (continued) August 31, 2018 iShares^® Currency Hedged MSCI Emerging Markets ETF

Derivative Financial Instruments - Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

	Assets		Liabilities
Derivative Financial Instruments:
Forward foreign currency exchange contracts	$	8,945,042	$	1,881,733
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	8,945,042	$	1,881,733
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		—		—
Total derivative assets and liabilities subject to an MNA	$	8,945,042	$	1,881,733

The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

		Derivative Assets Subject to an MNA by		Derivatives Available			Cash Collateral			Net Amount of Derivative
Counterparty		Counterparty		for Offse	t(a)		Received	(b)		Assets
Morgan Stanley & Co. International PLC	$	8,945,042	$	(1,881,733	)	$	(7,063,309	)	$	—
		Derivative Liabilities Subject to an MNA by		Derivatives Available			Cash Collateral			Net Amount of Derivative
Counterparty		Counterparty		for Offset	(a)		Pledged			Liabilities
Morgan Stanley & Co. International PLC	$	1,881,733	$	(1,881,733	)	$	—		$	—

^(a)  The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA.

^(b)  Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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
Investment Companies	$	344,293,269	$	—		$	—	$	344,293,269
Money Market Funds		163,904,606		—			—		163,904,606
	$	508,197,875	$	—		$	—	$	508,197,875
Derivative financial instruments(a)
Assets
Forward Foreign Currency Exchange Contracts	$	—	$	8,945,042		$	—	$	8,945,042
Liabilities
Forward Foreign Currency Exchange Contracts		—		(1,881,733	)		—		(1,881,733	)
	$	—	$	7,063,309		$	—	$	7,063,309

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

See notes to financial statements.

14 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Consolidated Schedule of Investments   August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Brazil — 3.7%
Ambev SA		27,858,215	$	127,455,002
Atacadao Distribuicao Comercio e Industria Ltda		2,369,100		8,360,650
B3 SA - Brasil, Bolsa, Balcao		12,288,501		64,900,799
Banco Bradesco SA		6,066,691		36,973,523
Banco do Brasil SA		5,106,874		37,309,023
Banco Santander Brasil SA, NVS		2,436,700		20,463,052
BB Seguridade Participacoes SA		4,126,900		24,520,403
BR Malls Participacoes SA(a)		4,988,888		11,079,422
BRF SA(a)		3,149,285		15,386,788
CCR SA		7,236,500		16,439,805
Centrais Eletricas Brasileiras SA(a)		1,228,900		4,718,623
Cia. de Saneamento Basico do Estado de Sao Paulo		2,048,624		12,132,333
Cia. Siderurgica Nacional SA(a)		3,775,628		8,045,924
Cielo SA		7,292,976		26,728,462
Cosan SA		972,900		8,217,500
EDP - Energias do Brasil SA		1,871,700		6,091,963
Embraer SA		3,981,200		18,939,230
Engie Brasil Energia SA		981,800		8,793,092
Equatorial Energia SA		1,031,700		14,273,173
Fibria Celulose SA		1,476,761		28,380,364
Hypera SA		2,062,500		13,716,293
IRB Brasil Resseguros S/A		620,700		8,954,736
JBS SA		5,646,265		12,881,942
Klabin SA, NVS		4,183,500		21,678,533
Kroton Educacional SA		8,330,380		20,663,693
Localiza Rent a Car SA		2,979,289		15,568,576
Lojas Renner SA		4,256,490		29,216,169
M. Dias Branco SA		617,100		6,337,104
Magazine Luiza SA		453,400		14,333,475
Multiplan Empreendimentos Imobiliarios SA		1,611,709		7,287,721
Natura Cosmeticos SA		1,142,700		8,043,081
Odontoprev SA		1,644,900		5,230,016
Petrobras Distribuidora SA		2,064,300		9,910,404
Petroleo Brasileiro SA		17,759,574		95,175,213
Porto Seguro SA		596,300		7,942,755
Raia Drogasil SA		1,370,800		25,618,699
Rumo SA(a)		6,519,200		22,516,011
Sul America SA, NVS		1,228,236		6,847,548
Suzano Papel e Celulose SA		2,631,300		30,214,510
TIM Participacoes SA		5,045,876		15,051,532
Ultrapar Participacoes SA		2,158,000		21,563,763
Vale SA		18,841,509		245,208,056
WEG SA		4,926,106		22,884,316
				1,166,053,277
Chile — 0.9%
Aguas Andinas SA, Class A		16,491,106		8,877,928
Banco de Chile		149,512,419		21,630,224
Banco de Credito e Inversiones SA		245,556		15,721,594
Banco Santander Chile		391,016,942		30,037,204
Cencosud SA		8,481,150		20,179,191
Cia. Cervecerias Unidas SA		882,288		11,668,355
Colbun SA		49,352,429		10,436,977
Empresa Nacional de Telecomunicaciones SA		909,578		7,480,071
Empresas CMPC SA		7,637,278		30,210,165
Empresas COPEC SA		2,254,933		34,554,195
Enel Americas SA		173,209,182		25,829,742
Enel Chile SA		174,136,939		17,084,407

Security	Shares		Value
Chile (continued)
Itau CorpBanca		942,629,790	$	8,939,504
Latam Airlines Group SA		1,822,393		17,136,634
SACI Falabella		4,288,059		34,222,280
				294,008,471
China — 31.2%
3SBio Inc.(b)		7,510,500		14,334,147
51job Inc., ADR(a)(c)		149,602		11,565,731
58.com Inc., ADR(a)(c)		552,363		42,023,777
AAC Technologies Holdings Inc.		4,369,500		48,433,093
Agile Group Holdings Ltd.		9,436,000		15,412,290
Agricultural Bank of China Ltd., Class A		11,937,500		6,342,578
Agricultural Bank of China Ltd., Class H		170,151,000		82,377,633
Air China Ltd., Class H		11,326,000		10,620,515
Alibaba Group Holding Ltd., ADR(a)(c)		6,869,544		1,202,238,895
Alibaba Health Information Technology Ltd.(a)		20,574,000		20,812,797
Alibaba Pictures Group Ltd.(a)(c)		83,880,000		10,152,505
Aluminum Corp. of China Ltd., Class H(a)		24,228,000		10,248,183
Angang Steel Co. Ltd., Class A		3,003,483		2,694,830
Angang Steel Co. Ltd., Class H(c)		4,524,000		4,449,704
Anhui Conch Cement Co. Ltd., Class H		7,569,500		46,098,447
ANTA Sports Products Ltd.		6,414,402		34,936,830
Autohome Inc., ADR		350,664		28,968,353
AviChina Industry & Technology Co. Ltd., Class H		13,171,000		7,635,216
BAIC Motor Corp. Ltd., Class H(b)		10,590,000		8,904,942
Baidu Inc., ADR(a)		1,654,733		374,763,930
Bank of Beijing Co. Ltd., Class A		6,823,727		5,822,855
Bank of China Ltd., Class A		4,383,100		2,277,485
Bank of China Ltd., Class H		476,239,000		214,185,895
Bank of Communications Co. Ltd., Class A		9,603,200		7,899,472
Bank of Communications Co. Ltd., Class H		45,181,600		32,638,927
Bank of Shanghai Co. Ltd., Class A		2,382,245		4,083,091
Baoshan Iron & Steel Co. Ltd., Class A		2,345,974		2,705,797
Baozun Inc., ADR(a)		217,084		11,590,115
BBMG Corp., Class H		14,235,000		5,295,799
Beijing Capital International Airport Co. Ltd., Class H		10,208,000		10,872,718
Beijing Enterprises Holdings Ltd.		3,170,000		15,206,016
Beijing Enterprises Water Group Ltd.(c)		33,802,000		18,432,208
BOC Aviation Ltd.(b)		1,240,100		9,084,808
BOE Technology Group Co. Ltd., Class A		5,259,900		2,625,292
Brilliance China Automotive Holdings Ltd.(c)		18,158,000		28,779,258
BYD Co. Ltd., Class H(c)		3,911,000		23,245,060
BYD Electronic International Co. Ltd.(c)		4,146,500		4,358,397
CAR Inc.(a)		4,187,000		3,360,738
CGN Power Co. Ltd., Class H(b)		65,667,000		15,561,495
China Agri-Industries Holdings Ltd.		11,189,000		4,447,716
China Cinda Asset Management Co. Ltd., Class H		55,411,000		14,331,222
China CITIC Bank Corp. Ltd., Class H		54,149,800		33,805,249
China Coal Energy Co. Ltd., Class H		11,134,000		4,737,933
China Communications Construction Co. Ltd., Class H		27,083,000		26,879,763
China Communications Services Corp. Ltd., Class H		15,054,000		12,466,843
China Conch Venture Holdings Ltd.		9,751,000		33,543,172
China Construction Bank Corp., Class A		2,830,700		2,850,546
China Construction Bank Corp., Class H		570,185,760		504,884,892
China Eastern Airlines Corp. Ltd., Class A		4,363,267		3,691,352
China Eastern Airlines Corp. Ltd., Class H		4,562,000		2,917,764
China Everbright Bank Co. Ltd., Class H		14,762,000		6,168,936
China Everbright International Ltd.(c)		15,112,000		12,726,665

S C H E D U L E    O F    I N V E S T M E N T  S  15

Consolidated Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
China Everbright Ltd.		6,182,000	$	10,821,985
China Evergrande Group(a)(c)		15,680,388		56,237,552
China First Capital Group Ltd.(a)		19,216,000		10,282,613
China Galaxy Securities Co. Ltd., Class H		20,979,000		10,263,777
China Gas Holdings Ltd.		10,379,200		32,993,291
China Huarong Asset Management Co. Ltd., Class H(b)		60,966,000		12,660,956
China Huishan Dairy Holdings Co. Ltd.(a)(d)		5,603,350		107,085
China International Capital Corp. Ltd., Class H(b)(c)		6,115,600		11,188,831
China International Marine Containers Group Co. Ltd., Class A		1,243,300		2,036,347
China International Marine Containers Group Co. Ltd., Class H		1,819,600		1,935,769
China International Travel Service Corp. Ltd., Class A		358,500		3,324,682
China Jinmao Holdings Group Ltd.		31,468,000		14,834,130
China Life Insurance Co. Ltd., Class H		44,725,000		101,086,968
China Literature Ltd.(a)(b)(c)		1,088,800		7,657,348
China Longyuan Power Group Corp. Ltd., Class H		19,239,000		16,202,244
China Medical System Holdings Ltd.		8,310,000		13,763,712
China Mengniu Dairy Co. Ltd.		16,445,000		47,456,236
China Merchants Bank Co. Ltd., Class A		2,362,391		9,782,064
China Merchants Bank Co. Ltd., Class H		22,942,467		87,982,807
China Merchants Port Holdings Co. Ltd.		8,222,000		16,781,516
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A		1,039,683		2,739,172
China Minsheng Banking Corp. Ltd., Class A		8,483,953		7,413,416
China Minsheng Banking Corp. Ltd., Class H		30,205,548		21,627,894
China Mobile Ltd.		36,528,000		343,457,860
China Molybdenum Co. Ltd., Class H(c)		23,331,000		9,571,509
China National Building Material Co. Ltd., Class H		23,336,000		21,822,961
China Oilfield Services Ltd., Class H		11,390,000		10,100,065
China Overseas Land & Investment Ltd.		22,884,960		72,454,899
China Pacific Insurance Group Co. Ltd., Class A		561,700		2,693,358
China Pacific Insurance Group Co. Ltd., Class H		15,948,200		59,433,150
China Petroleum & Chemical Corp., Class A		5,488,067		5,494,413
China Petroleum & Chemical Corp., Class H		150,404,800		151,192,380
China Power International Development Ltd.		24,179,000		5,267,756
China Railway Construction Corp. Ltd., Class H		12,512,500		15,128,696
China Railway Group Ltd., Class H		23,165,000		20,010,282
China Railway Signal & Communication Corp. Ltd., Class H(b)		8,400,000		5,939,686
China Reinsurance Group Corp., Class H		25,987,000		5,131,910
China Resources Beer Holdings Co. Ltd.		8,736,000		37,174,942
China Resources Cement Holdings Ltd.		14,362,000		16,761,065
China Resources Gas Group Ltd.		5,374,000		24,477,379
China Resources Land Ltd.		16,541,333		57,639,345
China Resources Pharmaceutical Group Ltd.(b)(c)		9,738,000		15,582,984
China Resources Power Holdings Co. Ltd.		11,208,999		20,193,307
China Shenhua Energy Co. Ltd., Class H		20,405,500		45,496,343
China Southern Airlines Co. Ltd., Class H		11,488,000		7,596,315
China State Construction Engineering Corp. Ltd., Class A		5,658,614		4,472,492
China State Construction International Holdings Ltd.		12,552,000		13,065,505
China Taiping Insurance Holdings Co. Ltd.		9,718,860		30,832,297
China Telecom Corp. Ltd., Class H		83,566,000		39,286,848
China Tower Corp. Ltd., Class H(a)(b)		177,768,000		27,178,535
China Traditional Chinese Medicine Holdings Co. Ltd.		13,522,000		9,854,354

Security	Shares		Value
China (continued)
China Travel International Investment Hong Kong Ltd.		12,218,000	$	3,969,461
China Unicom Hong Kong Ltd.		36,716,000		42,708,797
China United Network Communications Ltd., Class A		2,765,400		2,270,736
China Vanke Co. Ltd., Class A		1,209,290		4,256,879
China Vanke Co. Ltd., Class H		7,193,331		24,928,156
China Yangtze Power Co. Ltd., Class A		2,310,463		5,349,969
China Zhongwang Holdings Ltd.(c)		9,179,600		4,303,906
Chong Sing Holdings FinTech Group Ltd.(a)(c)		101,012,000		7,078,266
Chongqing Changan Automobile Co. Ltd., Class B		3,636,800		3,187,859
Chongqing Rural Commercial Bank Co. Ltd., Class H		15,751,000		8,488,671
CIFI Holdings Group Co. Ltd.		20,380,000		11,814,267
CITIC Ltd.		35,261,000		50,136,039
CITIC Securities Co. Ltd., Class H		14,175,000		25,392,157
CNOOC Ltd.		106,502,000		188,338,208
COSCO SHIPPING Development Co. Ltd., Class H(a)		6,660,000		967,320
COSCO SHIPPING Energy Transportation Co. Ltd., Class H		5,476,000		2,393,033
COSCO SHIPPING Holdings Co. Ltd., Class A(a)		3,686,899		2,207,142
COSCO SHIPPING Holdings Co. Ltd., Class H(a)(c)		13,110,500		5,462,082
COSCO SHIPPING Ports Ltd.(c)		10,504,000		11,121,079
Country Garden Holdings Co. Ltd.		45,312,939		67,430,484
Country Garden Services Holdings Co. Ltd.(a)		5,942,000		10,174,735
CRRC Corp. Ltd., Class A		3,697,993		4,432,980
CRRC Corp. Ltd., Class H		23,904,300		19,796,143
CSPC Pharmaceutical Group Ltd.		27,920,000		70,432,290
Ctrip.com International Ltd., ADR(a)(c)		2,420,245		94,752,592
Dali Foods Group Co. Ltd.(b)		11,867,500		8,618,373
Daqin Railway Co. Ltd., Class A		2,686,557		3,393,537
Datang International Power Generation Co. Ltd., Class H		16,956,000		4,342,208
Dongfeng Motor Group Co. Ltd., Class H		16,608,000		18,557,016
ENN Energy Holdings Ltd.		4,546,000		41,412,045
Fang Holdings Ltd., ADR(a)		1,241,657		3,811,887
Far East Horizon Ltd.		12,869,000		12,182,175
Focus Media Information Technology Co. Ltd., Class A		1,907,992		2,398,919
Foshan Haitian Flavouring & Food Co. Ltd., Class A		372,506		3,734,820
Fosun International Ltd.		15,608,500		28,238,441
Fullshare Holdings Ltd.(c)		42,300,000		16,922,371
Future Land Development Holdings Ltd.(c)		10,638,000		8,226,969
Fuyao Glass Industry Group Co. Ltd., Class H(b)		3,209,200		11,836,861
GCL-Poly Energy Holdings Ltd.(a)(c)		81,045,000		5,472,595
GDS Holdings Ltd., ADR(a)(c)		350,856		13,392,174
Geely Automobile Holdings Ltd.		29,419,000		62,519,451
Genscript Biotech Corp.(a)(c)		4,708,000		10,137,115
GF Securities Co. Ltd., Class H		8,790,800		11,032,040
GOME Retail Holdings Ltd.(a)(c)		70,944,200		6,869,446
Great Wall Motor Co. Ltd., Class H(c)		18,683,500		11,497,319
Gree Electric Appliances Inc. of Zhuhai, Class A(a)		507,975		2,895,980
Greentown China Holdings Ltd.		5,115,000		5,148,301
Greentown Service Group Co. Ltd.		5,778,000		4,564,155
Guangdong Investment Ltd.		18,034,110		31,983,439
Guangzhou Automobile Group Co. Ltd., Class H		17,841,838		19,367,358
Guangzhou R&F Properties Co. Ltd., Class H		5,821,600		11,748,671

16 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Consolidated Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
Guotai Junan Securities Co. Ltd., Class A		2,838,400	$	6,073,888
Guotai Junan Securities Co. Ltd., Class H(b)(c)		1,515,600		3,128,173
Haier Electronics Group Co. Ltd.		7,642,000		19,910,930
Haitian International Holdings Ltd.		4,183,000		8,399,149
Haitong Securities Co. Ltd., Class H		20,277,600		17,929,461
Hangzhou Hikvision Digital Technology Co. Ltd., Class A		1,265,287		5,824,458
Hengan International Group Co. Ltd.		4,324,500		38,925,955
HengTen Networks Group Ltd.(a)		133,904,000		5,629,874
Hua Hong Semiconductor Ltd.(b)		2,474,000		6,745,353
Huadian Power International Corp. Ltd., Class H		9,138,000		3,399,580
Huaneng Power International Inc., Class H		26,016,000		16,705,607
Huaneng Renewables Corp. Ltd., Class H		29,628,000		9,474,739
Huatai Securities Co. Ltd., Class H(b)		10,285,800		15,411,205
Huazhu Group Ltd., ADR(c)		780,363		26,860,094
Industrial &Commercial Bank of China Ltd., Class A		7,728,690		6,153,902
Industrial &Commercial Bank of China Ltd., Class H		409,643,085		301,664,823
Industrial Bank Co. Ltd., Class A		3,149,800		6,952,326
Inner Mongolia Yili Industrial Group Co. Ltd., Class A		879,989		3,117,011
Inner Mongolia Yitai Coal Co. Ltd., Class B		6,048,300		7,276,105
JD.com Inc., ADR(a)		4,298,603		134,546,274
Jiangsu Expressway Co. Ltd., Class H		7,844,000		9,913,807
Jiangsu Hengrui Medicine Co. Ltd., Class A		509,894		4,936,914
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A		188,687		3,185,151
Jiangxi Copper Co. Ltd., Class H		8,048,000		9,535,910
Jiayuan International Group Ltd.(c)		5,994,000		11,974,407
Kaisa Group Holdings Ltd.		12,789,000		4,757,849
Kangmei Pharmaceutical Co. Ltd., Class A		1,086,794		3,313,464
Kingboard Holdings Ltd.(c)		4,196,500		14,917,039
Kingboard Laminates Holdings Ltd.		6,418,000		6,059,114
Kingdee International Software Group Co. Ltd.(c)		13,368,000		15,226,327
Kingsoft Corp. Ltd.		4,953,000		8,998,685
Kunlun Energy Co. Ltd.		19,654,000		20,533,170
Kweichow Moutai Co. Ltd., Class A		130,176		12,559,933
KWG Property Holdings Ltd.		7,549,500		8,069,959
Lee & Man Paper Manufacturing Ltd.		9,599,000		9,196,764
Legend Holdings Corp., Class H(b)		2,076,500		6,428,793
Lenovo Group Ltd.(c)		43,444,000		28,339,421
Logan Property Holdings Co. Ltd.		8,262,000		10,315,789
Longfor Group Holdings Ltd.		8,935,000		24,816,599
Luye Pharma Group Ltd.(b)(c)		6,822,000		6,423,140
Meitu Inc.(a)(b)(c)		10,368,500		5,614,306
Metallurgical Corp. of China Ltd., Class A		7,350,790		3,851,792
Metallurgical Corp. of China Ltd., Class H		10,289,000		2,818,401
Midea Group Co. Ltd., Class A		826,300		5,031,261
MMG Ltd.(a)		14,480,000		7,250,239
Momo Inc., ADR(a)		855,823		39,616,047
NetEase Inc., ADR		468,625		92,651,849
New China Life Insurance Co. Ltd., Class H		5,108,200		23,136,555
New Oriental Education & Technology Group Inc., ADR		846,623		66,544,568
Nexteer Automotive Group Ltd.		5,314,000		8,950,436
Nine Dragons Paper Holdings Ltd.		9,926,000		11,255,259
Noah Holdings Ltd., ADR(a)(c)		173,056		8,140,554
People’s Insurance Co. Group of China Ltd. (The), Class H		44,159,000		19,128,872

Security	Shares		Value
China (continued)
PetroChina Co. Ltd., Class H		127,144,000	$	94,601,914
PICC Property & Casualty Co. Ltd., Class H		41,219,192		46,424,041
Ping An Bank Co. Ltd., Class A		2,681,194		3,975,424
Ping An Insurance Group Co. of China Ltd., Class A		1,320,294		12,170,799
Ping An Insurance Group Co. of China Ltd., Class H		30,665,500		295,367,733
Poly Real Estate Group Co. Ltd., Class A		1,499,373		2,694,969
Postal Savings Bank of China Co. Ltd., Class H(b)		16,087,000		9,469,090
Qingdao Haier Co. Ltd., Class A		1,090,565		2,376,797
SAIC Motor Corp. Ltd., Class A		1,128,785		4,816,101
Semiconductor Manufacturing International Corp.(a)(c)		17,718,999		20,904,577
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		11,976,000		11,336,834
Shanghai Electric Group Co. Ltd., Class H		18,202,000		5,704,866
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H		3,369,500		13,608,678
Shanghai Industrial Holdings Ltd.		3,206,000		7,638,293
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		6,246,026		8,425,889
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		5,265,500		13,819,682
Shanghai Pudong Development Bank Co. Ltd., Class A		4,319,556		6,531,083
Shenzhen International Holdings Ltd.		5,103,000		9,570,279
Shenzhen Investment Ltd.		14,296,000		4,681,002
Shenzhou International Group Holdings Ltd.		4,503,000		59,092,229
Shimao Property Holdings Ltd.		7,108,500		21,192,638
Shui On Land Ltd.		20,381,500		4,855,891
Sihuan Pharmaceutical Holdings Group Ltd.		23,449,000		5,198,341
SINA Corp./China(a)		386,415		27,420,008
Sino Biopharmaceutical Ltd.		40,905,500		51,803,523
Sino-Ocean Group Holding Ltd.		18,727,500		9,520,153
Sinopec Engineering Group Co. Ltd., Class H		7,361,500		7,672,039
Sinopec Shanghai Petrochemical Co. Ltd., Class H		21,967,000		12,902,174
Sinopharm Group Co. Ltd., Class H		7,134,000		35,493,216
Sinotrans Ltd., Class H		11,171,000		4,682,515
Sinotruk Hong Kong Ltd.(c)		4,131,500		6,169,168
Skyworth Digital Holdings Ltd.		10,348,000		3,348,739
SOHO China Ltd.		13,547,000		5,436,819
SSY Group Ltd.		8,908,000		8,285,034
Sun Art Retail Group Ltd.		14,271,000		16,454,860
Sunac China Holdings Ltd.(c)		14,428,000		47,242,238
Suning.com Co. Ltd., Class A		1,984,573		3,596,114
Sunny Optical Technology Group Co. Ltd.		4,245,200		53,951,344
TAL Education Group, Class A, ADR(a)		2,100,011		62,160,326
Tencent Holdings Ltd.		33,897,300		1,468,369,071
Tingyi Cayman Islands Holding Corp.		11,886,000		21,231,220
Tong Ren Tang Technologies Co. Ltd., Class H		3,080,000		4,465,645
Towngas China Co. Ltd.		5,254,000		4,839,713
TravelSky Technology Ltd., Class H		5,785,000		14,814,624
Tsingtao Brewery Co. Ltd., Class H		2,260,000		10,740,104
Uni-President China Holdings Ltd.		7,555,000		7,440,552
Vipshop Holdings Ltd., ADR(a)(c)		2,578,278		17,996,380
Want Want China Holdings Ltd.		30,106,000		24,586,816
Weibo Corp., ADR(a)(c)		322,270		24,731,000
Weichai Power Co. Ltd., Class H		11,890,800		12,604,499
Wuliangye Yibin Co. Ltd., Class A		476,181		4,314,282

S C H E D U L E     O F    I N V E S T M E N  T S  17

Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
China (continued)
Wuxi Biologics Cayman Inc.(a)(b)(c)		2,923,500	$	28,866,625
Xinjiang Goldwind Science & Technology Co. Ltd., Class A		1,668,354		2,971,834
Xinjiang Goldwind Science & Technology Co. Ltd., Class H		2,766,200		2,960,425
Xinyi Solar Holdings Ltd.		18,612,000		5,548,813
Yanzhou Coal Mining Co. Ltd., Class H		11,180,800		12,920,263
Yuexiu Property Co. Ltd.		37,938,000		6,863,632
Yum China Holdings Inc.		2,180,651		84,347,581
Yunnan Baiyao Group Co. Ltd., Class A		235,392		2,742,525
Yuzhou Properties Co. Ltd.		9,865,000		5,241,123
YY Inc., ADR(a)(c)		286,727		21,914,545
Zhaojin Mining Industry Co. Ltd., Class H		5,045,500		3,934,113
Zhejiang Expressway Co. Ltd., Class H		9,286,000		7,370,686
ZhongAn Online P&C Insurance Co. Ltd., Class H(a)(b)(c)		985,700		4,225,918
Zhongsheng Group Holdings Ltd.(c)		3,374,500		7,403,444
Zhuzhou CRRC Times Electric Co. Ltd., Class H		3,292,600		17,765,752
Zijin Mining Group Co. Ltd., Class H		35,562,000		13,275,320
ZTE Corp., Class H(a)		4,561,000		8,855,972
				9,704,239,001
Colombia — 0.3%
Bancolombia SA		1,358,020		14,581,548
Cementos Argos SA		2,835,409		8,372,321
Ecopetrol SA		29,689,093		33,238,901
Grupo Argos SA/Colombia		1,857,854		11,616,320
Grupo de Inversiones Suramericana SA		1,584,144		18,668,988
Interconexion Electrica SA ESP		2,429,449		10,752,466
				97,230,544
Czech Republic — 0.2%
CEZ AS		952,481		24,247,884
Komercni Banka AS		432,254		18,069,872
Moneta Money Bank AS(b)		2,818,047		9,900,984
O2 Czech Republic AS		365,970		4,343,941
				56,562,681
Egypt — 0.1%
Commercial International Bank Egypt SAE		6,845,362		33,658,603
Eastern Tobacco		1,344,589		7,820,938
EISewedy Electric Co.		446,909		4,823,760
				46,303,301
Greece — 0.3%
Alpha Bank AE(a)		8,518,688		15,679,977
Eurobank Ergasias SA(a)		11,206,292		9,583,310
FF Group(a)(d)		246,892		1,240,958
Hellenic Telecommunications Organization SA		1,369,838		17,515,928
JUMBO SA		693,177		10,387,864
Motor Oil Hellas Corinth Refineries SA		348,148		8,222,922
National Bank of Greece SA(a)(d)		33,624,002		9,576,946
OPAP SA		1,400,241		15,078,060
Piraeus Bank SA(a)(c)		1,666,515		4,653,575
Titan Cement Co. SA		321,348		7,402,988
				99,342,528
Hungary — 0.3%
MOL Hungarian Oil &Gas PLC		2,218,414		22,718,171
OTP Bank Nyrt		1,336,074		49,390,014
Richter Gedeon Nyrt		837,998		16,535,487
				88,643,672

Security	Shares		Value
India — 9.3%
Adani Ports &Special Economic Zone Ltd.		3,081,966	$	16,649,058
Ambuja Cements Ltd.		3,585,940		12,202,346
Ashok Leyland Ltd.		7,025,545		12,782,948
Asian Paints Ltd.		1,706,646		33,024,251
Aurobindo Pharma Ltd.		1,580,224		15,879,941
Avenue Supermarts Ltd.(a)(b)		738,521		16,706,888
Axis Bank Ltd.(a)		10,692,045		97,873,639
Bajaj Auto Ltd.		497,462		19,251,808
Bajaj Finance Ltd.		1,033,301		41,616,858
Bajaj Finserv Ltd.		226,463		21,545,296
Bharat Forge Ltd.		1,270,426		12,163,096
Bharat Heavy Electricals Ltd.		5,296,874		6,019,324
Bharat Petroleum Corp. Ltd.		4,508,308		23,016,279
Bharti Airtel Ltd.		8,336,450		45,116,531
Bharti Infratel Ltd.		1,952,834		7,899,305
Bosch Ltd.		45,026		13,960,099
Britannia Industries Ltd.		168,819		16,034,845
Cadila Healthcare Ltd.		1,227,364		6,969,505
Cipla Ltd./India		2,066,760		19,294,762
Coal India Ltd.		4,098,143		16,522,289
Container Corp. of India Ltd.		923,556		8,487,971
Dabur India Ltd.		3,127,224		21,108,666
Dr. Reddy’s Laboratories Ltd.		684,655		24,055,413
Eicher Motors Ltd.		79,313		31,377,705
GAIL India Ltd.		4,695,068		24,638,329
Glenmark Pharmaceuticals Ltd.		828,990		7,780,155
Godrej Consumer Products Ltd.		1,415,936		28,989,993
Grasim Industries Ltd.		1,981,516		29,823,490
Havells India Ltd.		1,495,707		15,294,218
HCL Technologies Ltd.		3,305,714		48,772,696
Hero MotoCorp Ltd.		298,843		13,709,668
Hindalco Industries Ltd.		7,036,460		23,606,572
Hindustan Petroleum Corp. Ltd.		3,650,848		13,064,066
Hindustan Unilever Ltd.		3,842,447		96,437,354
Housing Development Finance Corp. Ltd.		9,464,236		258,328,724
ICICI Bank Ltd.		14,151,790		68,358,376
Idea Cellular Ltd.(a)		11,781,105		8,197,212
Indiabulls Housing Finance Ltd.		1,657,456		29,427,066
Indian Oil Corp. Ltd.		8,615,187		18,894,166
Infosys Ltd.		10,382,180		210,948,127
InterGlobe Aviation Ltd.(b)		545,057		7,138,065
ITC Ltd.		20,224,043		91,202,625
JSW Steel Ltd.		5,016,582		28,033,659
Larsen & Toubro Ltd.		2,824,456		54,538,816
LIC Housing Finance Ltd.		1,788,072		13,132,045
Lupin Ltd.		1,325,519		17,407,584
Mahindra & Mahindra Financial Services Ltd.		1,794,588		12,376,556
Mahindra & Mahindra Ltd.		4,441,051		60,442,312
Marico Ltd.		2,656,618		13,838,142
Maruti Suzuki India Ltd.		627,534		80,482,195
Motherson Sumi Systems Ltd.		3,823,724		16,394,416
Nestle India Ltd.		137,043		22,379,109
NTPC Ltd.		11,705,464		28,303,866
Oil & Natural Gas Corp. Ltd.		8,336,557		21,162,787
Page Industries Ltd.		32,477		15,759,367
Petronet LNG Ltd.		3,550,415		12,416,848
Pidilite Industries Ltd.		700,201		11,537,194
Piramal Enterprises Ltd.		489,732		22,093,653
Power Grid Corp. of India Ltd.		9,341,085		26,537,828
Reliance Industries Ltd.		16,934,985		296,467,445

18 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
India (continued)
Rural Electrification Corp. Ltd.		4,250,941	$	7,180,173
Shree Cement Ltd.		51,239		13,672,499
Shriram Transport Finance Co. Ltd.		891,258		16,785,639
Siemens Ltd.		433,951		6,239,179
State Bank of India(a)		10,519,269		45,917,635
Sun Pharmaceutical Industries Ltd.		4,988,336		45,915,795
Tata Consultancy Services Ltd.		5,458,460		159,952,955
Tata Motors Ltd.(a)		9,474,473		35,733,195
Tata Power Co. Ltd. (The)		6,847,004		7,404,384
Tata Steel Ltd.		2,073,659		17,556,719
Tech Mahindra Ltd.		2,811,017		30,350,918
Titan Co. Ltd.		1,839,417		23,130,731
UltraTech Cement Ltd.		566,535		35,748,787
United Spirits Ltd.(a)		1,750,997		15,559,343
UPL Ltd.		2,168,191		21,866,474
Vedanta Ltd.		7,835,674		25,155,467
Wipro Ltd.		6,777,928		28,788,366
Yes Bank Ltd.		10,152,366		49,168,506
Zee Entertainment Enterprises Ltd.		2,868,232		20,217,798
				2,893,818,110
Indonesia — 2.0%
Adaro Energy Tbk PT		85,563,300		10,833,371
AKR Corporindo Tbk PT		212,700		52,128
Astra International Tbk PT		120,472,100		59,295,501
Bank Central Asia Tbk PT		58,302,900		98,161,026
Bank Danamon Indonesia Tbk PT		18,371,416		8,481,034
Bank Mandiri Persero Tbk PT		110,461,800		51,743,817
Bank Negara Indonesia Persero Tbk PT		44,097,676		23,351,112
Bank Rakyat Indonesia Persero Tbk PT		328,671,110		70,955,474
Bank Tabungan Negara Persero Tbk PT		25,051,300		4,676,923
Bumi Serpong Damai Tbk PT(a)		45,822,200		3,732,969
Charoen Pokphand Indonesia Tbk PT		44,427,545		15,020,311
Gudang Garam Tbk PT		2,839,400		14,071,704
Hanjaya Mandala Sampoerna Tbk PT		54,514,200		14,174,432
Indah Kiat Pulp & Paper Corp. Tbk PT		16,308,100		21,146,280
Indocement Tunggal Prakarsa Tbk PT		11,022,400		13,263,546
Indofood CBP Sukses Makmur Tbk PT		13,817,800		8,137,774
Indofood Sukses Makmur Tbk PT		25,858,400		11,191,263
Jasa Marga Persero Tbk PT		13,060,195		4,016,475
Kalbe Farma Tbk PT		127,480,215		11,640,250
Matahari Department Store Tbk PT		14,843,100		7,557,587
Pakuwon Jati Tbk PT		112,930,800		3,948,361
Perusahaan Gas Negara Persero Tbk PT		65,463,600		9,510,666
Semen Indonesia Persero Tbk PT		17,833,700		11,441,172
Surya Citra Media Tbk PT		35,446,000		5,053,401
Telekomunikasi Indonesia Persero Tbk PT		299,491,600		70,958,974
Tower Bersama Infrastructure Tbk PT		12,808,800		4,826,126
Unilever Indonesia Tbk PT		9,014,000		26,833,938
United Tractors Tbk PT		9,988,853		23,327,668
Waskita Karya Persero Tbk PT		28,367,300		3,649,425
				611,052,708
Malaysia — 2.5%
AirAsia Group Bhd		9,022,100		7,552,263
Alliance Bank Malaysia Bhd		6,432,700		6,464,789
AMMB Holdings Bhd		10,176,975		10,153,449
Astro Malaysia Holdings Bhd(c)		8,681,300		3,675,742
Axiata Group Bhd(c)		16,358,600		19,107,259
British American Tobacco Malaysia Bhd		853,800		7,034,838
CIMB Group Holdings Bhd		27,438,200		40,661,550

Security	Shares		Value
Malaysia (continued)
Dialog Group Bhd(c)		21,207,812	$	17,959,164
DiGi.Com Bhd(c)		19,109,100		21,901,414
FGV Holdings Bhd		8,931,600		3,281,839
Fraser & Neave Holdings Bhd(c)		614,100		5,678,501
Gamuda Bhd(c)		11,399,200		10,263,302
Genting Bhd		12,710,900		26,662,114
Genting Malaysia Bhd		17,794,100		22,602,556
Genting Plantations Bhd		1,773,300		4,069,161
HAP Seng Consolidated Bhd(c)		3,590,900		8,589,499
Hartalega Holdings Bhd(c)		7,965,800		13,762,545
Hong Leong Bank Bhd		3,853,600		19,279,722
Hong Leong Financial Group Bhd		1,281,700		6,119,225
IHH Healthcare Bhd(c)		14,616,700		19,846,985
IJM Corp. Bhd(c)		17,513,540		7,969,417
IOI Corp. Bhd		12,187,220		13,404,607
IOI Properties Group Bhd(c)		12,622,556		5,375,222
Kuala Lumpur Kepong Bhd		2,668,000		16,009,948
Malayan Banking Bhd		22,524,800		54,592,288
Malaysia Airports Holdings Bhd(c)		5,760,000		13,105,244
Maxis Bhd(c)		12,288,000		17,283,037
MISC Bhd		6,954,100		10,034,752
My EG Services Bhd(c)		12,248,800		4,441,103
Nestle Malaysia Bhd(c)		333,300		11,922,399
Petronas Chemicals Group Bhd		14,356,600		33,048,652
Petronas Dagangan Bhd		1,259,700		8,337,715
Petronas Gas Bhd		4,213,900		19,175,065
PPB Group Bhd		3,572,260		14,603,715
Press Metal Aluminium Holdings Bhd(c)		8,005,500		9,701,275
Public Bank Bhd		17,270,930		105,571,423
RHB Bank Bhd		4,996,725		6,565,839
RHB Bank Bhd, New(a)(d)		3,214,200		8
Sime Darby Bhd		14,281,473		8,861,846
Sime Darby Plantation Bhd(c)		14,311,173		18,665,990
Sime Darby Property Bhd(c)		16,045,873		4,919,771
SP Setia Bhd Group		6,752,600		4,321,533
Telekom Malaysia Bhd		6,742,400		5,430,671
Tenaga Nasional Bhd		18,556,050		70,801,524
Top Glove Corp. Bhd(c)		4,129,800		11,195,029
UMW Holdings Bhd(c)		2,679,000		3,872,311
Westports Holdings Bhd(c)		6,045,100		5,472,143
YTL Corp. Bhd		20,018,589		6,478,823
				765,827,267
Mexico — 3.1%
Alfa SAB de CV, Class A		18,052,300		23,726,069
Alsea SAB de CV		2,603,900		9,268,661
America Movil SAB de CV, Series L, NVS		200,049,137		167,923,885
Arca Continental SAB de CV		2,614,136		16,072,688
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand, Class B		10,924,100		17,276,995
Cemex SAB de CV, CPO(a)		86,788,323		61,412,934
Coca-Cola Femsa SAB de CV, Series L, NVS		3,097,493		18,618,492
El Puerto de Liverpool SAB de CV, Series C1, NVS(c)		1,116,337		7,853,272
Fibra Uno Administracion SA de CV		19,681,000		25,794,611
Fomento Economico Mexicano SAB de CV		11,522,763		110,108,210
Gruma SAB de CV, Series B		1,270,759		16,086,777
Grupo Aeroportuario del Pacifico SAB de CV, Series B		2,119,794		21,867,010
Grupo Aeroportuario del Sureste SAB de CV, Series B		1,247,245		23,347,398

S C H E D U L E     O F    I N V E S T M E N  T S 19

Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Mexico (continued)
Grupo Bimbo SAB de CV, Series A(c)		9,959,627	$	20,705,273
Grupo Carso SAB de CV, Series A1(c)		3,047,266		11,267,577
Grupo Financiero Banorte SAB de CV, Series O		15,321,656		104,860,851
Grupo Financiero Inbursa SAB de CV, Series O(c)		13,840,445		21,976,199
Grupo Mexico SAB de CV, Series B		20,852,389		61,094,157
Grupo Televisa SAB, CPO(c)		14,586,170		52,591,227
Industrias Penoles SAB de CV		845,913		14,366,873
Infraestructura Energetica Nova SAB de CV		3,222,200		14,971,379
Kimberly-Clark de Mexico SAB de CV, Series A		9,106,909		15,984,303
Mexichem SAB de CV		6,336,034		21,436,576
Promotora y Operadora de Infraestructura SAB de CV		1,384,543		14,658,973
Wal-Mart de Mexico SAB de CV		30,890,897		85,448,578
				958,718,968
Pakistan — 0.1%
Habib Bank Ltd.		3,526,000		4,289,422
Lucky Cement Ltd.		805,550		3,508,863
MCB Bank Ltd.		2,292,600		3,715,988
Oil & Gas Development Co. Ltd.		3,978,700		4,885,965
United Bank Ltd./Pakistan		2,868,200		3,650,920
				20,051,158
Peru — 0.4%
Cia. de Minas Buenaventura SAA, ADR, NVS		1,051,404		13,237,176
Credicorp Ltd.		400,387		87,292,374
Southern Copper Corp.		504,241		22,005,077
				122,534,627
Philippines — 1.0%
Aboitiz Equity Ventures Inc.		12,778,460		12,774,158
Aboitiz Power Corp.		7,451,464		5,156,433
Alliance Global Group Inc.(a)		22,414,180		5,785,062
Ayala Corp.		1,520,636		28,440,114
Ayala Land Inc.		45,043,300		37,488,345
Bank of the Philippine Islands		5,663,774		9,930,778
BDO Unibank Inc.		11,876,671		28,898,685
DMCI Holdings Inc.		22,969,900		5,498,891
Globe Telecom Inc.		210,495		8,330,355
GT Capital Holdings Inc.		532,651		8,726,758
International Container Terminal Services Inc.		3,063,370		5,365,538
JG Summit Holdings Inc.		17,597,604		19,747,442
Jollibee Foods Corp.		2,740,539		14,761,638
Manila Electric Co.		1,070,470		7,475,752
Megaworld Corp.		66,815,200		5,735,800
Metro Pacific Investments Corp.		83,264,600		8,487,171
Metropolitan Bank & Trust Co.		4,807,030		6,585,527
PLDT Inc.		540,593		14,084,051
Robinsons Land Corp.		11,212,706		4,466,796
Security Bank Corp.		1,228,250		4,467,993
SM Investments Corp.		1,488,702		26,896,202
SM Prime Holdings Inc.		58,334,525		42,549,683
Universal Robina Corp.		5,455,540		14,233,707
				325,886,879
Poland — 1.2%
Alior Bank SA(a)		540,919		10,001,369
Bank Handlowy w Warszawie SA		206,829		3,821,373
Bank Millennium SA(a)		3,677,039		8,971,677
Bank Polska Kasa Opieki SA		999,164		31,722,293
Bank Zachodni WBK SA		206,953		21,142,612
CCC SA		174,486		10,221,354
CD Projekt SA(a)		402,287		22,516,573

Security	Shares		Value
Poland (continued)
Cyfrowy Polsat SA(a)		1,442,596	$	8,811,302
Dino Polska SA(a)(b)		287,846		7,140,524
Grupa Azoty SA		272,889		2,817,531
Grupa Lotos SA		550,309		10,451,602
Jastrzebska Spolka Weglowa SA(a)		317,281		6,637,948
KGHM Polska Miedz SA		841,795		20,767,837
LPP SA		7,796		19,498,208
mBank SA		88,650		9,865,924
Orange Polska SA(a)		3,960,005		5,229,150
PGE Polska Grupa Energetyczna SA(a)		5,050,804		12,351,000
PLAY Communications SA(b)		678,424		4,000,000
Polski Koncern Naftowy ORLEN SA		1,780,031		47,513,278
Polskie Gornictwo Naftowe i Gazownictwo SA(a)		10,425,214		16,485,687
Powszechna Kasa Oszczednosci Bank Polski SA		5,183,415		59,432,981
Powszechny Zaklad Ubezpieczen SA		3,589,983		43,562,239
				382,962,462
Qatar — 0.9%
Barwa Real Estate Co.		642,085		6,321,922
Commercial Bank PQSC (The)		1,264,039		13,617,274
Doha Bank QPSC		699,459		4,915,060
Ezdan Holding Group QSC(a)		4,911,273		13,898,499
Industries Qatar QSC		971,180		32,927,207
Masraf Al Rayan QSC		2,360,553		24,332,604
Ooredoo QPSC		511,568		10,238,773
Qatar Electricity & Water Co. QSC		299,408		15,668,911
Qatar Insurance Co. SAQ		994,192		10,008,927
Qatar Islamic Bank SAQ		701,114		26,838,000
Qatar National Bank QPSC		2,688,547		130,849,212
				289,616,389
Russia — 3.3%
Alrosa PJSC		15,296,400		23,026,216
Gazprom PJSC		52,373,269		116,598,878
Gazprom PJSC, ADR, NVS		5,476,657		24,152,057
Inter RAO UES PJSC		180,914,000		10,851,550
LUKOIL PJSC		2,134,902		148,991,063
LUKOIL PJSC, ADR, NVS		381,687		26,336,403
Magnit PJSC, GDR, NVS(e)		2,126,273		31,405,052
Magnitogorsk Iron &Steel Works PJSC		13,166,100		9,469,877
MMC Norilsk Nickel PJSC		376,298		62,684,907
Mobile TeleSystems PJSC, ADR, NVS		2,960,653		22,945,061
Moscow Exchange MICEX-RTS PJSC		8,099,560		11,789,705
Novatek PJSC, GDR, NVS(e)		541,954		90,506,318
Novolipetsk Steel PJSC		7,079,140		17,411,508
PhosAgro PJSC, GDR, NVS(e)		685,263		9,079,735
Polyus PJSC		196,295		12,744,621
Rosneft Oil Co. PJSC		6,537,457		42,289,702
Rosneft Oil Co. PJSC, GDR, NVS(e)		505,284		3,219,670
RusHydro PJSC		611,617,100		5,783,478
Sberbank of Russia PJSC		59,363,421		160,408,925
Sberbank of Russia PJSC, ADR		1,119,200		12,148,916
Severstal PJSC		1,229,003		19,818,052
Surgutneftegas PJSC		33,000,160		14,081,244
Surgutneftegas PJSC, ADR, NVS		920,104		3,827,633
Tatneft PJSC		9,065,010		105,395,903
VTB Bank PJSC		19,097,471,998		11,738,550
X5 Retail Group NV, GDR(e)		725,674		17,130,771
				1,013,835,795
South Africa — 6.2%
Absa Group Ltd.		4,268,830		47,361,032

20 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
South Africa (continued)
Anglo American Platinum Ltd.		326,855	$	9,592,878
AngloGold Ashanti Ltd.		2,440,635		19,640,022
Aspen Pharmacare Holdings Ltd.		2,307,754		45,902,273
Bid Corp. Ltd.		2,004,496		42,903,500
Bidvest Group Ltd. (The)		1,999,679		29,480,806
Capitec Bank Holdings Ltd.		239,734		16,407,697
Clicks Group Ltd.		1,494,836		20,711,660
Coronation Fund Managers Ltd.		1,382,854		5,431,840
Discovery Ltd.		2,125,305		25,415,899
Exxaro Resources Ltd.		1,499,768		15,236,957
FirstRand Ltd.		20,011,508		96,566,069
Fortress REIT Ltd., Series A		6,344,350		7,140,574
Fortress REIT Ltd., Series B		4,576,998		4,935,863
Foschini Group Ltd. (The)		1,335,251		15,911,371
Gold Fields Ltd.		4,924,038		12,098,993
Growthpoint Properties Ltd.		17,678,412		30,696,275
Hyprop Investments Ltd.		1,525,799		10,622,404
Imperial Holdings Ltd.		957,829		13,479,067
Investec Ltd.		1,686,756		11,071,774
Kumba Iron Ore Ltd.		386,465		6,992,441
Liberty Holdings Ltd.		778,209		6,183,180
Life Healthcare Group Holdings Ltd.		8,044,924		14,638,865
MMI Holdings Ltd./South Africa		5,801,370		6,790,785
Mondi Ltd.		707,280		19,802,150
Mr. Price Group Ltd.		1,520,031		23,378,468
MTN Group Ltd.		10,062,540		61,118,706
Naspers Ltd., Class N		2,607,300		581,168,305
Nedbank Group Ltd.		1,324,243		25,125,028
NEPI Rockcastle PLC		2,242,606		21,429,219
Netcare Ltd.		6,841,287		13,704,754
Old Mutual Ltd.(a)		29,375,441		60,951,346
Pick n Pay Stores Ltd.		2,191,636		10,845,055
Pioneer Foods Group Ltd.		774,813		5,579,235
PSG Group Ltd.		887,167		13,626,691
Rand Merchant Investment Holdings Ltd.		4,104,241		11,440,471
Redefine Properties Ltd.		32,038,128		22,632,514
Reinet Investments SCA		878,191		17,076,810
Remgro Ltd.		3,162,010		46,273,633
Resilient REIT Ltd.		1,665,849		6,479,770
RMB Holdings Ltd.		4,244,473		24,421,744
Sanlam Ltd.		10,326,358		55,919,682
Sappi Ltd.		3,171,884		21,733,670
Sasol Ltd.		3,272,227		128,644,502
Shoprite Holdings Ltd.		2,625,874		36,561,952
SPAR Group Ltd. (The)		1,156,959		16,188,147
Standard Bank Group Ltd.		7,660,151		97,424,625
Telkom SA SOC Ltd.		1,690,689		5,803,242
Tiger Brands Ltd.		957,341		18,705,435
Truworths International Ltd.		2,621,519		15,394,966
Vodacom Group Ltd.		3,570,759		30,803,394
Woolworths Holdings Ltd./South Africa		5,945,181		22,001,380
				1,929,447,119
South Korea — 13.9%
Amorepacific Corp.		190,164		44,929,373
AMOREPACIFIC Group		172,519		14,940,333
BGF retail Co. Ltd.(c)		48,323		7,444,993
BNK Financial Group Inc.		1,546,507		11,586,820
Celltrion Healthcare Co. Ltd.(a)(c)		207,460		16,848,029
Celltrion Inc.(a)(c)		484,635		117,550,600
Celltrion Pharm Inc.(a)(c)		91,795		6,605,381

Security	Shares		Value
South Korea (continued)
Cheil Worldwide Inc.		418,226	$	7,251,279
CJ CheilJedang Corp.		49,199		15,137,814
CJ Corp.		87,150		10,334,456
CJ ENM Co. Ltd.		63,970		14,481,822
CJ Logistics Corp.(a)(c)		48,314		6,684,055
Coway Co. Ltd.		286,947		23,561,026
Daelim Industrial Co. Ltd.		164,750		12,121,480
Daewoo Engineering & Construction Co. Ltd.(a)		981,868		4,622,008
DB Insurance Co. Ltd.		296,417		17,042,346
DGB Financial Group Inc.		1,005,571		9,259,401
Dongsuh Cos. Inc.		219,348		4,463,219
Doosan Bobcat Inc.		209,361		6,695,640
Doosan Heavy Industries & Construction Co. Ltd.(a)(c)		362,885		4,612,876
E-MART Inc.		124,934		24,074,332
GS Engineering & Construction Corp.(c)		299,103		12,870,713
GS Holdings Corp.		307,401		14,663,786
GS Retail Co. Ltd.		161,102		5,383,816
Hana Financial Group Inc.		1,761,736		67,579,506
Hankook Tire Co. Ltd.		442,130		18,528,828
Hanmi Pharm Co. Ltd.(c)		37,433		16,729,926
Hanmi Science Co. Ltd.(c)		76,891		6,002,630
Hanon Systems		1,113,875		12,007,816
Hanssem Co. Ltd.(c)		62,710		4,647,689
Hanwha Chemical Corp.		645,380		11,740,507
Hanwha Corp.		246,294		7,047,086
Hanwha Life Insurance Co. Ltd.		1,625,276		7,081,335
HDC Holdings Co. Ltd.		1		22
HDC Hyundai Development Co-Engineering & Construction, Class E(a)		214,576		10,775,545
HLB Inc.(a)(c)		185,634		17,343,517
Hotel Shilla Co. Ltd.		187,623		18,203,552
Hyundai Department Store Co. Ltd.		83,034		7,429,535
Hyundai Engineering & Construction Co. Ltd.		465,755		25,104,703
Hyundai Glovis Co. Ltd.		111,812		12,154,024
Hyundai Heavy Industries Co. Ltd.(a)		222,630		23,600,000
Hyundai Heavy Industries Holdings Co. Ltd.(a)		58,694		19,904,761
Hyundai Marine & Fire Insurance Co. Ltd.		375,756		12,557,268
Hyundai Mobis Co. Ltd.		405,056		81,509,719
Hyundai Motor Co.		915,382		102,791,852
Hyundai Steel Co.		479,610		22,964,751
Industrial Bank of Korea		1,496,463		20,030,812
ING Life Insurance Korea Ltd.(b)		196,507		6,143,326
Kakao Corp.(c)		273,006		30,656,920
Kangwon Land Inc.		694,393		18,059,271
KB Financial Group Inc.		2,356,455		109,445,020
KCC Corp.		36,049		10,508,827
KEPCO Plant Service & Engineering Co. Ltd.		134,504		4,398,280
Kia Motors Corp.		1,571,808		45,255,757
Korea Aerospace Industries Ltd.(a)(c)		437,441		16,406,739
Korea Electric Power Corp.		1,530,657		41,939,576
Korea Gas Corp.(a)		164,180		7,758,045
Korea Investment Holdings Co. Ltd.		248,878		15,941,249
Korea Zinc Co. Ltd.(c)		50,945		18,558,323
Korean Air Lines Co. Ltd.		281,778		7,100,456
KT Corp.		168,975		4,386,990
KT&G Corp.		696,890		63,231,272
Kumho Petrochemical Co. Ltd.		111,104		10,180,666
LG Chem Ltd.		272,460		89,583,937
LG Corp.		563,778		36,212,664

S C H E D U L E     O F    I N V E S T M E N  T S 21

Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
South Korea (continued)
LG Display Co. Ltd.		1,389,105	$	26,517,973
LG Electronics Inc.		630,992		43,534,282
LG Household & Health Care Ltd.		55,588		63,171,019
LG Innotek Co. Ltd.		84,780		10,929,282
LG Uplus Corp.		1,271,276		17,930,228
Lotte Chemical Corp.		102,173		29,004,777
Lotte Corp.(a)		180,662		7,822,763
Lotte Shopping Co. Ltd.		67,707		10,948,444
Medy-Tox Inc.(c)		25,386		15,275,159
Mirae Asset Daewoo Co. Ltd.		2,357,208		17,406,683
NAVER Corp.		166,691		112,609,830
NCSoft Corp.		104,700		36,447,244
Netmarble Corp.(b)(c)		152,170		15,925,801
NH Investment & Securities Co. Ltd.		852,013		10,294,727
OCI Co. Ltd.(c)		106,915		11,093,458
Orion Corp./Republic of Korea		130,334		12,528,175
Ottogi Corp.(c)		7,285		4,744,756
Pan Ocean Co. Ltd.(a)		1,391,894		6,452,116
Pearl Abyss Corp.(a)		33,429		7,657,903
POSCO		464,855		136,347,444
Posco Daewoo Corp.		277,998		4,557,754
S-1 Corp.		104,565		8,050,326
Samsung Biologics Co. Ltd.(a)(b)(c)		98,999		41,177,323
Samsung C&T Corp.		452,332		49,981,436
Samsung Card Co. Ltd.		179,323		5,678,602
Samsung Electro-Mechanics Co. Ltd.		333,387		48,219,294
Samsung Electronics Co. Ltd.		28,596,008		1,244,645,005
Samsung Engineering Co. Ltd.(a)(c)		929,131		14,064,463
Samsung Fire & Marine Insurance Co. Ltd.		182,568		43,462,714
Samsung Heavy Industries Co. Ltd.(a)(c)		2,559,929		16,281,990
Samsung Life Insurance Co. Ltd.		416,932		34,646,014
Samsung SDI Co. Ltd.		327,527		69,439,314
Samsung SDS Co. Ltd.		207,751		45,258,606
Samsung Securities Co. Ltd.		378,457		10,998,593
Shinhan Financial Group Co. Ltd.		2,547,548		99,782,682
Shinsegae Inc.(c)		44,106		12,857,564
SillaJen Inc.(a)(c)		348,458		23,916,086
SK Holdings Co. Ltd.		189,062		44,669,008
SK Hynix Inc.		3,458,174		257,852,439
SK Innovation Co. Ltd.		384,320		66,634,110
SK Telecom Co. Ltd.		120,302		28,369,290
S-Oil Corp.		269,092		28,887,835
ViroMed Co. Ltd.(a)(c)		81,150		17,284,881
Woori Bank		2,815,105		41,221,948
Yuhan Corp.		51,510		11,059,507
				4,340,307,148
Taiwan — 12.1%
Acer Inc.		17,485,121		14,630,233
Advantech Co. Ltd.		2,144,126		14,589,690
Airtac International Group(c)		688,000		6,607,846
ASE Technology Holding Co. Ltd.		20,732,110		50,826,237
Asia Cement Corp.(c)		13,135,077		17,896,890
Asustek Computer Inc.		4,197,968		35,740,473
AU Optronics Corp.(c)		51,398,000		22,256,012
Catcher Technology Co. Ltd.		3,892,210		47,710,144
Cathay Financial Holding Co. Ltd.		48,526,644		83,102,766
Chailease Holding Co. Ltd.		7,046,370		23,973,487
Chang Hwa Commercial Bank Ltd.		30,960,940		19,252,937
Cheng Shin Rubber Industry Co. Ltd.(c)		11,595,128		17,705,079
Chicony Electronics Co. Ltd.		3,410,998		7,174,035

Security	Shares		Value
Taiwan (continued)
China Airlines Ltd.		15,902,347	$	4,871,922
China Development Financial Holding Corp.		81,312,848		29,385,402
China Life Insurance Co. Ltd./Taiwan(c)		15,591,002		15,507,248
China Steel Corp.		75,534,313		61,848,868
Chunghwa Telecom Co. Ltd.		22,336,410		78,902,832
Compal Electronics Inc.		24,958,908		15,642,487
CTBC Financial Holding Co. Ltd.		103,705,772		72,929,991
Delta Electronics Inc.(c)		12,382,000		49,584,438
E.Sun Financial Holding Co. Ltd.		57,000,789		41,941,000
Eclat Textile Co. Ltd.(c)		1,064,427		12,926,299
Eva Airways Corp.		12,546,364		6,372,238
Evergreen Marine Corp. Taiwan Ltd.		12,669,312		5,382,859
Far Eastern New Century Corp.		19,103,038		22,234,531
Far EasTone Telecommunications Co. Ltd.		9,468,000		22,564,141
Feng TAY Enterprise Co. Ltd.		1,992,529		12,066,104
First Financial Holding Co. Ltd.		57,720,155		38,617,913
Formosa Chemicals & Fibre Corp.		20,905,090		83,715,646
Formosa Petrochemical Corp.		7,372,000		30,241,641
Formosa Plastics Corp.		26,469,280		96,949,178
Formosa Taffeta Co. Ltd.		4,814,000		5,603,142
Foxconn Technology Co. Ltd.(c)		5,573,637		14,154,116
Fubon Financial Holding Co. Ltd.		39,799,969		65,955,345
General Interface Solution Holding Ltd.(c)		1,016,000		6,301,416
Giant Manufacturing Co. Ltd.		1,881,203		8,115,233
Globalwafers Co. Ltd.(c)		1,301,000		16,604,005
Highwealth Construction Corp.(c)		4,989,170		8,105,472
Hiwin Technologies Corp.(c)		1,344,136		12,121,949
Hon Hai Precision Industry Co. Ltd.(c)		97,825,592		256,388,089
Hotai Motor Co. Ltd.(c)		1,634,000		14,150,871
HTC Corp.(a)(c)		3,963,708		5,755,539
Hua Nan Financial Holdings Co. Ltd.		45,539,883		26,687,869
Innolux Corp.(c)		53,187,002		19,827,158
Inventec Corp.		14,840,281		13,311,077
Largan Precision Co. Ltd.(c)		598,000		91,603,125
Lite-On Technology Corp.		12,687,246		15,262,697
Macronix International(c)		11,015,042		11,834,491
MediaTek Inc.		8,929,338		73,115,042
Mega Financial Holding Co. Ltd.		63,782,162		53,575,770
Micro-Star International Co. Ltd.(c)		4,025,000		13,956,129
Nan Ya Plastics Corp.		30,544,160		84,924,996
Nanya Technology Corp.(c)		6,208,000		14,087,501
Nien Made Enterprise Co. Ltd.(c)		975,000		7,554,941
Novatek Microelectronics Corp.		3,456,000		16,934,006
Pegatron Corp.		11,645,414		25,099,346
Phison Electronics Corp.		906,535		7,496,659
Pou Chen Corp.		13,177,220		14,522,184
Powertech Technology Inc.		4,452,300		13,205,422
President Chain Store Corp.		3,386,000		36,930,164
Quanta Computer Inc.(c)		16,067,000		27,619,652
Realtek Semiconductor Corp.		2,773,637		13,455,052
Ruentex Development Co. Ltd.		5,707,430		6,429,337
Ruentex Industries Ltd.		3,584,598		7,352,423
Shin Kong Financial Holding Co. Ltd.		49,047,865		19,401,972
SinoPac Financial Holdings Co. Ltd.		63,998,626		23,440,812
Standard Foods Corp.(c)		2,823,615		4,780,335
Synnex Technology International Corp.		8,529,834		11,413,843
TaiMed Biologics Inc.(a)(c)		1,063,000		7,908,042
Taishin Financial Holding Co. Ltd.		58,399,566		27,474,320
Taiwan Business Bank.		22,498,632		8,130,712
Taiwan Cement Corp		25,913,025		35,729,012

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Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Taiwan (continued)
Taiwan Cooperative Financial Holding Co. Ltd.		50,777,563	$	30,170,618
Taiwan High Speed Rail Corp.		10,710,000		9,031,060
Taiwan Mobile Co. Ltd.		9,481,600		33,030,480
Taiwan Semiconductor Manufacturing Co. Ltd.		146,340,000		1,219,698,519
Teco Electric and Machinery Co. Ltd.		12,035,000		8,816,132
Uni-President Enterprises Corp.		28,541,839		72,109,611
United Microelectronics Corp.(c)		71,343,000		40,299,562
Vanguard International Semiconductor Corp.		5,384,000		13,059,026
Walsin Technology Corp.(c)		1,881,000		19,260,117
Win Semiconductors Corp.(c)		2,147,000		11,638,467
Winbond Electronics Corp.(c)		17,879,000		10,041,112
Wistron Corp.(c)		16,879,940		11,953,075
WPG Holdings Ltd.		9,812,532		12,427,397
Yageo Corp.(c)		1,498,861		34,061,695
Yuanta Financial Holding Co. Ltd.		61,007,635		30,886,170
Zhen Ding Technology Holding Ltd.		2,713,075		6,942,787
				3,772,895,661
Thailand — 2.4%
Advanced Info Service PCL, NVDR		6,103,800		37,670,871
Airports of Thailand PCL, NVDR		25,252,100		51,499,471
Bangkok Bank PCL Foreign		1,414,600		8,989,820
Bangkok Dusit Medical Services PCL, NVDR		22,939,900		18,398,178
Bangkok Expressway & Metro PCL, NVDR		45,648,700		11,715,523
Banpu PCL, NVDR		12,439,000		7,714,992
Berli Jucker PCL, NVDR		7,253,800		12,854,274
BTS Group Holdings PCL, NVDR		34,853,000		9,849,992
Bumrungrad Hospital PCL, NVDR		2,140,500		11,869,867
Central Pattana PCL, NVDR		7,893,900		19,897,548
Charoen Pokphand Foods PCL, NVDR		19,494,300		15,336,946
CPALL PCL, NVDR		29,775,800		61,407,470
Delta Electronics Thailand PCL, NVDR		3,067,100		6,536,212
Electricity Generating PCL, NVDR		780,800		5,391,409
Energy Absolute PCL, NVDR(c)		7,743,400		9,167,637
Glow Energy PCL, NVDR		3,118,400		8,955,991
Home Product Center PCL, NVDR		23,663,714		10,555,766
Indorama Ventures PCL, NVDR		9,626,280		17,646,709
IRPC PCL, NVDR		60,562,600		12,860,069
Kasikornbank PCL, NVDR		3,326,000		21,441,674
Kasikornbank PCL Foreign		7,592,100		49,175,839
Krung Thai Bank PCL, NVDR		20,562,600		12,188,037
Land & Houses PCL, NVDR		18,675,900		6,447,836
Minor International PCL, NVDR		13,570,820		16,377,861
PTT Exploration & Production PCL, NVDR		8,237,439		35,864,194
PTT Global Chemical PCL, NVDR		13,384,030		33,429,406
PTT PCL, NVDR		62,687,100		100,552,177
Robinson PCL, NVDR		3,085,400		6,151,004
Siam Cement PCL (The), NVDR		2,256,600		31,163,556
Siam Commercial Bank PCL (The), NVDR		10,815,300		48,905,115
Thai Oil PCL, NVDR		6,698,800		17,243,321
Thai Union Group PCL, NVDR		11,708,600		6,260,327
TMB Bank PCL, NVDR		66,509,500		4,470,544
True Corp. PCL, NVDR(c)		60,124,901		12,307,878
				740,297,514
Turkey — 0.5%
Akbank Turk AS		12,889,132		11,210,903
Anadolu Efes Biracilik Ve Malt Sanayii AS		1,265,327		3,993,406
Arcelik AS		1,435,836		2,877,201
Aselsan Elektronik Sanayi Ve Ticaret AS		2,002,516		7,807,764
BIM Birlesik Magazalar AS		1,263,657		13,929,852

Security	Shares		Value
Turkey (continued)
Coca-Cola Icecek AS		457,639	$	1,973,675
Emlak Konut Gayrimenkul Yatirim Ortakligi AS(c)		10,525,926		2,924,641
Enka Insaat ve Sanayi AS		1		—
Eregli Demir ve Celik Fabrikalari TAS		8,355,419		14,938,753
Ford Otomotiv Sanayi AS		428,240		4,329,445
Haci Omer Sabanci Holding AS		5,483,051		5,895,175
KOC Holding AS(c)		4,486,871		10,149,621
Petkim Petrokimya Holding AS(c)		4,735,081		3,939,793
TAV Havalimanlari Holding AS		1,025,969		5,106,412
Tofas Turk Otomobil Fabrikasi AS		752,772		2,603,115
Tupras Turkiye Petrol Rafinerileri AS		739,464		13,176,300
Turk Hava Yollari AO(a)		3,251,649		7,993,785
Turkcell Iletisim Hizmetleri AS		6,541,374		10,470,545
Turkiye Garanti Bankasi AS		13,522,423		12,149,710
Turkiye Halk Bankasi AS(c)		3,575,827		3,315,426
Turkiye Is Bankasi AS, Class C		9,233,388		5,563,248
Turkiye Sise ve Cam Fabrikalari AS		4,247,685		3,951,186
Turkiye Vakiflar Bankasi TAO, Class D		4,360,507		2,278,282
Ulker Biskuvi Sanayi AS(a)		946,204		2,118,948
Yapi ve Kredi Bankasi AS(a)(c)		4,975,917		1,262,342
				153,959,528
United Arab Emirates — 0.7%
Abu Dhabi Commercial Bank PJSC		12,945,688		25,023,314
Aldar Properties PJSC		20,472,013		10,756,703
DAMAC Properties Dubai Co. PJSC		10,142,854		5,798,836
DP World Ltd.		1,023,243		21,897,400
Dubai Investments PJSC		6,063,814		3,285,188
Dubai Islamic Bank PJSC		11,051,709		15,404,966
Emaar Development PJSC(a)		3,607,140		5,194,934
Emaar Malls PJSC		12,501,237		6,806,821
Emaar Properties PJSC		21,642,444		29,519,253
Emirates Telecommunications Group Co. PJSC		10,869,295		50,157,099
First Abu Dhabi Bank PJSC		8,689,627		35,012,586
				208,857,100
Total Common Stocks — 96.6% (Cost: $25,634,581,150)				30,082,451,908
Preferred Stocks
Brazil — 2.0%
Banco Bradesco SA, Preference Shares, NVS		19,847,746		136,714,893
Braskem SA, Class A, Preference Shares, NVS		1,032,800		14,842,380
Centrais Eletricas Brasileiras SA, Class B, Preference Shares, NVS(a)		1,446,937		6,356,535
Cia. Brasileira de Distribuicao, Preference Shares, NVS		942,386		18,680,290
Cia. Energetica de Minas Gerais, Preference Shares, NVS		5,263,310		9,529,937
Gerdau SA, Preference Shares, NVS		6,184,385		24,076,487
Itau Unibanco Holding SA, Preference Shares, NVS		19,135,953		196,324,539
Itausa-Investimentos Itau SA, Preference Shares, NVS		26,295,492		61,205,740
Lojas Americanas SA, Preference Shares, NVS		4,419,324		16,732,957
Petroleo Brasileiro SA, Preference Shares, NVS		23,250,227		108,686,530
Telefonica Brasil SA, Preference Shares, NVS		2,650,767		25,747,845
				618,898,133

S C H E D U L E     O F    I N V E S T M E N  T S 23

Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Chile — 0.1%
Embotelladora Andina SA, Class B, Preference Shares		1,651,790	$	6,387,481
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares		708,338		30,773,238
				37,160,719
Colombia — 0.1%
Bancolombia SA, Preference Shares, NVS		2,726,462		29,632,013
Grupo Aval Acciones y Valores SA, Preference Shares, NVS		20,502,628		8,054,051
Grupo de Inversiones Suramericana SA, Preference Shares, NVS		556,160		6,434,131
				44,120,195
Russia — 0.1%
Surgutneftegas PJSC, Preference Shares, NVS		40,201,200		22,334,746
Transneft PJSC, Preference Shares		3,051		6,454,986
				28,789,732
South Korea — 0.8%
Amorepacific Corp., Preference Shares, NVS		55,731		7,234,541
Hyundai Motor Co.
Preference Shares, NVS		142,405		10,016,899
Series 2, Preference Shares, NVS(c)		226,507		17,418,137
LG Chem Ltd., Preference Shares, NVS		46,633		8,378,565
LG Household & Health Care Ltd., Preference Shares, NVS		12,777		8,597,200
Samsung Electronics Co. Ltd., Preference Shares, NVS		5,105,368		182,080,681
				233,726,023
Total Preferred Stocks — 3.1% (Cost: $739,441,060)				962,694,802
Rights
China — 0.0%
China Everbright International Ltd., NVS (Expires 09/13/18)(a)(c)		5,654,813		439,480
Total Rights — 0.0% (Cost: $0)				439,480

Security	Shares		Value
Warrants
Thailand — 0.0%
BTS Group Holdings PCL (Expires 08/01/19)(a)		3,850,855	$	1
Total Warrants — 0.0% (Cost: $0)				1
Short-Term Investments
Money Market Funds — 5.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		1,641,918,956		1,642,411,531
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(f)(g)		97,280,989		97,280,989
				1,739,692,520
Total Short-Term Investments — 5.6% (Cost: $1,739,283,311)				1,739,692,520
Total Investments in Securities — 105.3% (Cost: $28,113,305,521)				32,785,278,711
Other Assets, Less Liabilities — (5.3)%				(1,636,266,692	)
Net Assets — 100.0%			$	31,149,012,019

^(a)  Non-income producing security.

^(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)  All or a portion of this security is on loan.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

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

^(f)  Affiliate of the Fund.

^(g)  Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		2,193,968,858	(552,049,902	)		1,641,918,956	$	1,642,411,531	$	23,208,394	(b)	$	65,437		$	20,679
BlackRock Cash Funds: Treasury, SL Agency Shares		94,337,685	2,943,304			97,280,989		97,280,989		802,018			—			—
							$	1,739,692,520	$	24,010,412		$	65,437		$	20,679

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Emerging Markets E-Mini		1,429		09/21/18	$	75,373	$	(1,678,370	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Consolidated Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	1,678,370

^(a)  Represents cumulative appreciation (depreciation) 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.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Consolidated Statement of Operations was as follows:    

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	1,878,939
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(8,761,281	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	76,039,255

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.

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, refer to the Notes to Consolidated Financial Statements.

S C H E D U L E    O F    I N V E S T M E N T  S 25

Consolidated Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Emerging Markets ETF

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.

	Level 1			Level 2		Level 3		Total
Investments
Assets
Common Stocks	$	29,781,910,522		$	289,616,389	$	10,924,997	$	30,082,451,908
Preferred Stocks		962,694,802			—		—		962,694,802
Rights		—			439,480		—		439,480
Warrants		—			1		—		1
Money Market Funds		1,739,692,520			—		—		1,739,692,520
	$	32,484,297,844		$	290,055,870	$	10,924,997	$	32,785,278,711
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(1,678,370	)	$	—	$	—	$	(1,678,370)

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

See notes to financial statements.

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Statements of Assets and Liabilities

August 31, 2018

	iShares Currency Hedged MSCI Emerging Markets ETF			iShares MSCI Emerging Markets ETF (Consolidated)
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	—		$	31,045,586,191
Affiliated(c)		508,197,875			1,739,692,520
Cash pledged:
Futures contracts		—			5,252,000
Foreign currency, at value(d)		97			40,683,116
Receivables:
Investments sold		—			212,104,506
Securities lending income — Affiliated		37,961			2,266,934
Variation margin on futures contracts		—			482,284
Capital shares sold		86,195			6
Dividends		7,330			49,892,903
Tax reclaims		—			17,725
Unrealized appreciation on:
Forward foreign currency exchange contracts		8,945,042			—
Total assets		517,274,500			33,095,978,185
LIABILITIES
Bank overdraft		—			18,420,914
Cash received:
Collateral — forward foreign currency exchange contracts		7,630,000			—
Collateral on securities loaned, at value		156,025,400			1,641,892,631
Deferred foreign capital gain tax		—			48,541,141
Payables:
Investments purchased		7,409,602			219,146,955
Investment advisory fees		—			18,028,387
Professional fees		—			138,761
Foreign taxes		—			797,377
Unrealized depreciation on:
Forward foreign currency exchange contracts		1,881,733			—
Total liabilities		172,946,735			1,946,966,166
NET ASSETS	$	344,327,765		$	31,149,012,019
NET ASSETS CONSIST OF:
Paid-in capital	$	340,092,717		$	38,310,617,596
Undistributed net investment income		88,535			169,219,344
Accumulated net realized loss		(14,616,471	)		(11,950,980,269	)
Net unrealized appreciation		18,762,984			4,620,155,348
NET ASSETS	$	344,327,765		$	31,149,012,019
Shares outstanding		13,400,000			720,450,000
Net asset value	$	25.70		$	43.24
Shares authorized		250 million			2 billion
Par value	$	0.001		$	0.001
(a) Securities loaned, at value	$	153,322,572		$	1,573,256,018
(b) Investments, at cost — Unaffiliated	$	—		$	26,374,022,210
(c)  Investments, at cost — Affiliated	$	496,498,200		$	1,739,283,311
(d) Foreign currency, at cost	$	95		$	40,840,960

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 27

Statements of Operations

Year Ended August 31, 2018

	iShares Currency Hedged MSCI Emerging Markets ETF			iShares MSCI Emerging Markets ETF (Consolidated)
INVESTMENT INCOME
Dividends — Unaffiliated	$	—		$	1,001,312,678
Dividends — Affiliated		8,642,556			802,018
Interest — Unaffiliated		—			38,900
Securities lending income — Affiliated — net(a)		404,724			23,208,394
Foreign taxes withheld		—			(106,646,988	)
Foreign withholding tax claims		—			17,290,898
Other foreign taxes		—			(1,346,583	)
Total investment income		9,047,280			934,659,317
EXPENSES
Investment advisory fees		3,135,521			252,746,031
Commitment fees		—			204,272
Professional fees		—			1,823,570
Proxy fees		32			3,370
Mauritius income taxes		—			1,345,190
Interest expense		—			72,412
Total expenses		3,135,553			256,194,845
Less:
Investment advisory fees waived		(3,135,553	)		—
Total expenses after fees waived		—			256,194,845
Net investment income		9,047,280			678,464,472
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated(b)		—			(921,285,712	)
Investments — Affiliated		(316,181	)		65,437
In-kind redemptions — Unaffiliated		—			1,434,861,224
In-kind redemptions — Affiliated		28,094,258			—
Futures contracts		—			1,878,939
Forward foreign currency exchange contracts		5,868,058			—
Foreign currency transactions		—			(7,310,813	)
Net realized gain		33,646,135			508,209,075
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated(c)		—			(1,713,656,441	)
Investments — Affiliated		(39,453,256	)		20,679
Futures contracts		—			(8,761,281	)
Forward foreign currency exchange contracts		8,608,170			—
Foreign currency translations		—			(1,809,332	)
Net change in unrealized appreciation (depreciation)		(30,845,086	)		(1,724,206,375	)
Net realized and unrealized gain (loss)		2,801,049			(1,215,997,300	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	11,848,329		$	(537,532,828	)
(a) Net of securities lending income tax paid of	$	—		$	975,624
(b) Net of foreign capital gain tax of	$	—		$	890
(c)  Net of deferred foreign capital gain tax of	$	—		$	38,732,699

See notes to financial statements.

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Statements of Changes in Net Assets

	iShares Currency Hedged MSCI Emerging Markets ETF						iShares MSCI Emerging Markets ETF (Consolidated)
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	9,047,280		$	4,008,451		$	678,464,472		$	580,186,188
Net realized gain (loss)		33,646,135			(12,482,715	)		508,209,075			(545,920,506	)
Net change in unrealized appreciation (depreciation)		(30,845,086	)		64,687,519			(1,724,206,375	)		6,415,419,097
Net increase (decrease) in net assets resulting from operations		11,848,329			56,213,255			(537,532,828	)		6,449,684,779
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(9,015,264	)		(3,977,750	)		(789,458,393	)		(442,844,825	)
Decrease in net assets resulting from distributions to shareholders		(9,015,264	)		(3,977,750	)		(789,458,393	)		(442,844,825	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(52,262,674	)		161,268,077			(3,415,886,805	)		(981,418,486	)
NET ASSETS
Total increase (decrease) in net assets		(49,429,609	)		213,503,582			(4,742,878,026	)		5,025,421,468
Beginning of year		393,757,374			180,253,792			35,891,890,045			30,866,468,577
End of year	$	344,327,765		$	393,757,374		$	31,149,012,019		$	35,891,890,045
Undistributed net investment income included in net assets at end of year	$	88,535		$	56,519		$	169,219,344		$	233,610,496

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 29

Financial Highlights

(For a share outstanding throughout each period)

	iShares Currency Hedged MSCI Emerging Markets ETF
										Period From
		Year Ended			Year Ended			Year Ended			09/23/14	(a)
	08/31/18			08/31/17			08/31/16			to 08/31/15
Net asset value, beginning of period	$	25.57		$	21.72		$	21.40		$	24.44
Net investment income(b)		0.60			0.36			0.50			0.41
Net realized and unrealized gain (loss)(c)		0.12			3.83			1.08			(2.80	)
Net increase (decrease) from investment operations		0.72			4.19			1.58			(2.39	)
Distributions(d)
From net investment income		(0.59	)		(0.34	)		(0.48	)		(0.65	)
From net realized gain		—			—			(0.78	)		—
Total distributions		(0.59	)		(0.34	)		(1.26	)		(0.65	)
Net asset value, end of period	$	25.70		$	25.57		$	21.72		$	21.40
Total Return
Based on net asset value		2.77	%		19.55	%		7.84	%		(10.01	)%(e)
Ratios to Average Net Assets
Total expenses(f)		0.78	%		0.78	%		0.78	%		0.78	%(g)
Total expenses after fees waived(f)		0.00	%		0.00	%		0.00	%		0.02	%(g)
Net investment income		2.25	%		1.56	%		2.42	%		1.82	%(g)
Supplemental Data
Net assets, end of period (000)	$	344,328		$	393,757		$	180,254		$	211,865
Portfolio turnover rate(h)(i)		7	%		4	%		11	%		7	%(e)

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Not annualized.

^(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)  Annualized.

^(h)  Portfolio turnover rate excludes the portfolio activity of the underlying fund in which the Fund is invested. See the underlying fund’s financial highlights for its respective portfolio turnover rates.

⁽ⁱ⁾  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI Emerging Markets ETF (Consolidated)
		Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
		08/31/18			08/31/17			08/31/16			08/31/15			08/31/14
Net asset value, beginning of year	$	44.76		$	36.74		$	33.79		$	45.11		$	38.44
Net investment income(a)		0.83	(b)		0.75			0.72			0.73			0.83
Net realized and unrealized gain (loss)(c)		(1.36	)		7.86			3.00			(11.21	)		6.55
Net increase (decrease) from investment operations		(0.53	)		8.61			3.72			(10.48	)		7.38
Distributions(d)
From net investment income		(0.99	)		(0.59	)		(0.77	)		(0.84	)		(0.71	)
Total distributions		(0.99	)		(0.59	)		(0.77	)		(0.84	)		(0.71	)
Net asset value, end of year	$	43.24		$	44.76		$	36.74		$	33.79		$	45.11
Total Return
Based on net asset value		(1.28	)%(b)		23.80	%		11.28	%		(23.46	)%		19.34	%
Ratios to Average Net Assets
Total expenses		0.67	%		0.69	%		0.72	%		0.69	%		0.68	%
Total expenses after fees waived		0.67	%		0.69	%		0.72	%		0.69	%		0.67	%
Total expenses excluding professional fees for foreign withholding tax claims		0.67	%		0.69	%		N/A			N/A			N/A
Net investment income		1.78	%(b)		1.92	%		2.15	%		1.79	%		1.98	%
Supplemental Data
Net assets, end of year (000)	$	31,149,012		$	35,891,890		$	30,866,469		$	21,000,865		$	44,336,401
Portfolio turnover rate(e)		16	%		9	%		23	%		10	%		22	%

^(a)  Based on average shares outstanding.

^(b)  Reflects the one-time, positive effect of foreign withholding tax claims, net of the associated professional fees, which resulted in the following increases for the year ended August 31, 2018:

• Net investment income per share by $0.02.

• Total return by 0.07%.

• Ratio of net investment income to average net assets by 0.04%.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L   H I G H L I G H T S 31

Notes to Financial Statements

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

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
MSCI Emerging Markets		Diversified

Currently the iShares Currency Hedged MSCI Emerging Markets ETF seeks to achieve its investment objective by investing a substantial portion of its assets in the iShares MSCI Emerging Markets ETF (an “underlying fund”). The financial statements and schedule of investments for the underlying fund are included in this report and should be read in conjunction with the financial statements of the iShares Currency Hedged MSCI Emerging Markets ETF.

Basis of Consolidation: The accompanying consolidated financial statements for the iShares MSCI Emerging Markets ETF includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (each, a “Subsidiary”) of the Fund that invests in Indian securities included in the underlying index. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes. However, the currency hedged fund has elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

The 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, the 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. The 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, the Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. Taxes on income, if any, are paid by the Subsidiary and are disclosed in the consolidated statement of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. The Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

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Notes to Financial Statements  (continued)

The DTAA 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.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

• Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or 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 may be valued at the last traded price.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

• Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”).The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations in active markets for identical assets or liabilities;

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 33

Notes to Financial Statements  (continued)

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
Currency Hedged MSCI Emerging Markets
Goldman Sachs & Co.	$	105,766,500	$	105,766,500		$	—	$	—
Wells Fargo Securities LLC		47,556,072		47,556,072			—		—
	$	153,322,572	$	153,322,572		$	—	$	—

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Notes to Financial Statements  (continued)

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
MSCI Emerging Markets
Barclays Bank PLC	$	4,727,814	$	4,727,814		$	—	$	—
Barclays Capital Inc.		6,546,303		6,546,303			—		—
Citigroup Global Markets Inc.		54,656,054		54,656,054			—		—
Citigroup Global Markets Ltd.		40,733,169		40,733,169			—		—
Credit Suisse Securities (Europe) Ltd.		7,074,719		7,074,719			—		—
Credit Suisse Securities (USA) LLC		265,867,755		265,867,755			—		—
Deutsche Bank AG		2,513,180		2,513,180			—		—
Deutsche Bank Securities Inc.		702,604		702,604			—		—
Goldman Sachs & Co.		153,367,218		153,367,218			—		—
Goldman Sachs International		77,885,207		77,885,207			—		—
HSBC Bank PLC		13,009,837		13,009,837			—		—
Jefferies LLC		763,586		763,586			—		—
JPMorgan Securities LLC		448,815,011		448,815,011			—		—
JPMorgan Securities PLC		12,670,577		12,670,577			—		—
Macquarie Bank Limited		33,836,331		33,836,331			—		—
Merrill Lynch, Pierce, Fenner & Smith		105,238,319		105,238,319			—		—
Morgan Stanley & Co. International PLC		114,645,284		114,645,284			—		—
Morgan Stanley & Co. LLC		192,457,643		192,457,643			—		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		10,949,636		10,949,636			—		—
National Financial Services LLC		1,194,662		1,194,662			—		—
State Street Bank & Trust Company		962,318		962,318			—		—
UBS AG		8,894,392		8,894,392			—		—
UBS Ltd.		314,188		178,056			—		(136,132	)(b)
Wells Fargo Securities LLC		15,430,211		15,270,679			—		(159,532	)(b)
	$	1,573,256,018	$	1,572,960,354		$	—	$	(295,664	)

^(a)  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.

^(b) 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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

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Notes to Financial Statements  (continued)

Forward Foreign Currency Exchange Contracts: The currency-hedged fund uses forward foreign currency exchange contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held in its portfolio or its underlying fund’s portfolio. A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The 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 in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s 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 fund.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives 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, insolvency, or other events.

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 a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent trustees).

For its investment advisory services to the following Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund as follows:

iShares ETF	Investment Advisory Fee
Currency Hedged MSCI Emerging Markets	0.78	%

For its investment advisory services to the iShares MSCI Emerging Markets ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $14 billion	0.75	%
Over $14 billion, up to and including $28 billion	0.68
Over $28 billion, up to and including $42 billion	0.61
Over $42 billion, up to and including $56 billion	0.54
Over $56 billion, up to and including $70 billion	0.47
Over $70 billion, up to and including $84 billion	0.41
Over $84 billion	0.35

Expense Waivers: A fund may incur 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 any other fund expenses are a fund’s total annual operating expenses.

For the iShares Currency Hedged MSCI Emerging Markets ETF, BFA has contractually agreed to waive a portion of its investment advisory fee for the Fund through December 31, 2020 so that the Fund’s total annual operating expenses after fee waiver is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares MSCI Emerging Markets ETF (“EEM”), after taking into account any fee waivers by EEM.

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Notes to Financial Statements  (continued)

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid     to BTC
Currency Hedged MSCI Emerging Markets	$	132,208
MSCI Emerging Markets		6,258,333

For the year ended August 31, 2018, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Emerging Markets ETF in the amount of $42,006, related to foreign tax on income earned from the lending of Taiwan securities. The voluntary waiver was discontinued effective January 1, 2018. Such reimbursement is included in securities lending income – affiliated – net in the consolidated statement of operations.

Officers and Trustees: Certain officers and/or trustees of the Company are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF		Purchases		Sales
MSCI Emerging Markets	$	148,451,284	$	122,946,556

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 shown as dividends – affiliated in the statement of operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF		Purchases		Sales
Currency Hedged MSCI Emerging Markets	$	41,598,808	$	27,465,996
MSCI Emerging Markets		5,999,289,116		6,737,855,275

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Notes to Financial Statements  (continued)

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
Currency Hedged MSCI Emerging Markets	$	72,919,539	$	125,389,491
MSCI Emerging Markets		1,714,454,825		4,444,025,330

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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. As of August 31, 2018, the following permanent differences attributable to the characterization of corporate actions, the characterization of expenses, 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 (Distributions in Excess of) Net Investment Income		Accumulated Net Realized Gain (Loss)
Currency Hedged MSCI Emerging Markets	$	24,006,223	$	—	$	(24,006,223	)
MSCI Emerging Markets		136,987,176		46,602,769		(183,589,945	)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
Currency Hedged MSCI Emerging Markets
Ordinary income	$	9,015,264	$	3,977,750
MSCI Emerging Markets
Ordinary income	$	789,458,393	$	442,844,825

As of August 31, 2018, 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
Currency Hedged MSCI Emerging Markets	$	88,535	$	(5,739,018	)	$	9,885,531		$	4,235,048
MSCI Emerging Markets		261,294,482		(10,885,156,021	)		3,462,255,962			(7,161,605,577	)

^(a) 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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the characterization of corporate actions and the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts.

As of August 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

iShares ETF	Non-Expiring(a)		Expiring 2019		Total
Currency Hedged MSCI Emerging Markets	$	5,739,018	$	—	$	5,739,018
MSCI Emerging Markets		10,011,988,372		873,167,649		10,885,156,021

^(a)  Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2018, the iShares Currency Hedged MSCI Emerging Markets ETF utilized $14,546,006 of its capital loss carryforwards.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

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Notes to Financial Statements  (continued)

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Currency Hedged MSCI Emerging Markets	$	498,592,781	$	13,861,845	$	(3,976,314	)	$	9,885,531
MSCI Emerging Markets		29,272,883,277		8,345,392,961		(4,832,997,527	)		3,512,395,434

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9. LINE OF CREDIT

The iShares MSCI Emerging Markets ETF, along with certain other iShares funds, is party to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. 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, 2018, the maximum amount borrowed, the average borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

iShares ETF	Maximum Amount Borrowed		Average Borrowing		Weighted  Average  Interest Rates
MSCI Emerging Markets	$	94,000,000	$	2,484,932		2.87	%

At a meeting held on September 12-13, 2018, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $300 million and (ii) extending the expiration date to October 23, 2019. These changes to the credit agreement are expected to be effective on or around October 25, 2018.

10. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers.

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Notes to Financial Statements  (continued)

Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

11. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
Currency Hedged MSCI Emerging Markets
Shares sold		2,800,000		$	73,618,617			9,300,000		$	209,783,628
Shares redeemed		(4,800,000	)		(125,881,291	)		(2,200,000	)		(48,515,551	)
Net increase (decrease)		(2,000,000	)	$	(52,262,674	)		7,100,000		$	161,268,077
MSCI Emerging Markets
Shares sold		110,250,000		$	5,376,896,402			65,700,000		$	2,729,984,147
Shares redeemed		(191,700,000	)		(8,792,783,207	)		(103,950,000	)		(3,711,402,633	)
Net decrease		(81,450,000	)	$	(3,415,886,805	)		(38,250,000	)	$	(981,418,486	)

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 shares sold in the table above.

12. FOREIGN WITHHOLDING TAX CLAIMS

The iShares MSCI Emerging Markets ETF has filed claims to recover taxes withheld by Poland on dividend income on the basis that Poland 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. The Fund continues to evaluate developments in Poland for potential impacts to the receivables and payables recorded. Polish withholding tax claims received are disclosed in the statement of operations. Professional fees associated with the filing of tax claims in Poland that result in the recovery of foreign withholding taxes have been approved by the Board as appropriate expenses of the Fund.

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Notes to Financial Statements  (continued)

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 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 which the Fund is able to pass through to its shareholders as a foreign tax credit 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.

13. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

14. 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 additional disclosure in the financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of iShares Currency Hedged MSCI Emerging Markets ETF and

iShares MSCI Emerging Markets ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares Currency Hedged MSCI Emerging Markets ETF and iShares MSCI Emerging Markets ETF (two of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information (unaudited)

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend Income
Currency Hedged MSCI Emerging Markets	$	6,688,211
MSCI Emerging Markets		627,166,737

For the fiscal year ended August 31, 2018, the iShares Currency Hedged MSCI Emerging Markets ETF intends to pass through to its 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	$	9,224,672	$	1,587,573

For the fiscal year ended August 31, 2018, the iShares MSCI Emerging Markets ETF earned foreign source income and paid foreign taxes which it intends to pass through to its shareholders:

iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Emerging Markets	$	1,041,998,649	$	92,995,259

I M P O R T A N T    T A X    I N F O R  M A T I O N 43

Board Review and Approval of Investment Advisory Contract

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c)Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison
fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates

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Board Review and Approval of Investment Advisory Contract  (continued)

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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

II. 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. At a meeting on May 11,

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Board Review and Approval of Investment Advisory Contract  (continued)

2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c)Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison
fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

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Board Review and Approval of Investment Advisory Contract  (continued)

including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information  (unaudited)

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
Currency Hedged MSCI Emerging Markets	$	0.527108	$	—	$	0.066963	$	0.594071		89	%		—	%		11	%		100	%
MSCI Emerging Markets		0.870276		—		0.116139		0.986415		88			—			12			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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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 Currency Hedged MSCI Emerging Markets ETF

Period Covered: September 25, 2014 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		1		0.11	%
Greater than 1.0% and Less than 1.5%		3		0.32
Greater than 0.5% and Less than 1.0%		18		1.90
Greater than 0.0% and Less than 0.5%		540		56.95
At NAV		25		2.64
Less than 0.0% and Greater than –0.5%		349		36.81
Less than –0.5% and Greater than –1.0%		12		1.27
		948		100.00	%

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Supplemental Information  (unaudited) (continued)

iShares MSCI Emerging Markets ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0% and Less than 4.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		5		0.36
Greater than 1.5% and Less than 2.0%		23		1.66
Greater than 1.0% and Less than 1.5%		53		3.83
Greater than 0.5% and Less than 1.0%		216		15.61
Greater than 0.0% and Less than 0.5%		463		33.46
At NAV		8		0.58
Less than 0.0% and Greater than –0.5%		332		23.99
Less than –0.5% and Greater than –1.0%		179		12.93
Less than –1.0% and Greater than –1.5%		69		4.99
Less than –1.5% and Greater than –2.0%		23		1.66
Less than –2.0% and Greater than –2.5%		9		0.65
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
		1,384		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD if such managers market a fund to EU investors.

BFA has registered the iShares MSCI Emerging Markets 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 AIFMD 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.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

S U P P L E M E N T A L    I N F O R M A T I O  N 49

Supplemental Information  (unaudited) (continued)

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 iShares MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2017 was USD 3.72 million. This figure is comprised of fixed remuneration of USD 1.48 million and variable remuneration of USD 2.24 million. There were a total of 417 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, 2017, to its senior management was USD 520.77 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 97.02 thousand.

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Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).
(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. and its affiliates. (b) Mark K. 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.
Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information  (continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).
Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

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General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

G E N E R A L    I N F O R M A T I O N 53

Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity
ADR	American Depositary Receipt
CPO	Certificates of Participation (Ordinary)
GDR	Global Depositary Receipt
NVDR	Non-Voting Depositary Receipt
NVS	Non-Voting Shares
Counterparty Abbreviations
MS	Morgan Stanley & Co. International PLC
Currency Abbreviations
BRL	Brazilian Real
CLP	Chilean Peso
CNY	Chinese Yuan
EUR	Euro
HKD	Hong Kong Dollar
INR	Indian Rupee
KRW	South Korean Won
MXN	Mexican Peso
RUB	New Russian Ruble
TRY	Turkish Lira
TWD	New Taiwan Dollar
USD	United States Dollar
ZAR	South African Rand

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

	This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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.
	©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

  2018 ANNUAL REPORT

iShares, Inc.

▶ iShares MSCI Frontier 100 ETF | FM | NYSE Arca

▶ iShares MSCI World ETF | URTH | NYSE Arca

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		10
Shareholder Expenses		10
Schedules of Investments		11
Financial Statements
Statements of Assets and Liabilities		28
Statements of Operations		29
Statements of Changes in Net Assets		30
Financial Highlights		31
Notes to Financial Statements		33
Report of Independent Registered Public Accounting Firm		41
Important Tax Information (Unaudited)		42
Board Review and Approval of Investment Advisory Contract		43
Supplemental Information		47
Director and Officer Information		50
General Information		52
Glossary of Terms Used in this Report		53

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T    O V E R V I E W 5

Fund Summary  as of August 31, 2018  iShares^® MSCI Frontier 100 ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		(3.79	)%(a)		3.21	%		5.95	%		(3.79	)%(a)		17.13	%		41.19	%
Fund Market		(4.69	)		2.55			5.66			(4.69	)		13.41			38.93
Index		(4.50	)		4.72			7.28			(4.50	)		25.93			52.12

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 9/12/12. The first day of secondary market trading was 9/13/12.

^(a)  The NAV total return presented in the table for the one-year period differs from the same period return disclosed in the financial highlights. The total return in the financial highlights is calculated in the same manner but differs due to certain adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

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 10 for more information.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	840.20	$	3.71		$	1,000.00	$	1,021.20	$	4.08		0.80	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.

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Fund Summary  as of August 31, 2018 (continued) iShares^® MSCI Frontier 100 ETF

Portfolio Management Commentary

Facing a sharp drop in the value of its currency, Argentina was the leading detractor from the Index’s performance for the reporting period, accounting for a large majority of the negative return. The combination of high fiscal deficits, a significant trade deficit, and surging inflation caused the Argentine peso to lose more than half of its value relative to the U.S. dollar. This prompted investor concern about the government’s ability to service its foreign currency-denominated debt and prompted the government to take out a loan from the International Monetary Fund (“IMF”). In an attempt to support the Argentine peso, interest rates were raised dramatically, endangering the country’s fragile economy. The crisis increased volatility in Argentine financial markets and substantially reduced the value of assets affected by the value of the Argentine peso.

Stocks from several other countries, including Nigeria, Bangladesh, and Mauritius, also detracted from the Index’s return, as frontier markets struggled from the effect of a stronger U.S. dollar and increasing U.S. interest rates. When interest rates rise in the U.S., investors attracted by the higher rates tend to move capital out of frontier markets. Financing U.S. dollar-denominated debt and paying for imported inputs priced in U.S. dollars also becomes costlier for companies in those countries, which can reduce profitability.

On the upside, Vietnamese companies were notable contributors to the Index’s return. The combination of strong economic growth, continued privatization of the economy, and political stability caused Vietnamese markets to surge, before retreating somewhat in the wake of trade tensions between the U.S. and China. Kuwait was also a contributor, as higher oil prices and the anticipated inclusion in emerging-market benchmarks benefited stocks in the petroleum-rich country.

From a sector perspective, financials were the largest detractors from the Index’s return, followed by utilities. Both sectors had relatively large weights in securities with exposure to Argentina, which were adversely affected by the depreciation of the Argentine peso. In contrast, the real estate sector was the chief contributor to the Index’s performance. A rapid increase in Vietnamese property prices, driven by strong economic growth and an influx of international buyers, supported the sector.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of Total Investments	(a)
Financials	42.5	%
Telecommunication Services	11.8
Consumer Staples	10.9
Real Estate	10.9
Energy	5.9
Materials	4.6
Industrials	3.6
Utilities	3.5
Health Care	2.5
Consumer Discretionary	2.1
Information Technology	1.7

TEN LARGEST COUNTRIES

Country	Percent of Total Investments	(a)
Kuwait	21.6	%
Vietnam	19.4
Argentina	15.5
Morocco	7.3
Kenya	7.1
Bangladesh	6.2
Nigeria	6.0
Romania	5.8
Bahrain	4.5
Oman	1.9

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 7

Fund Summary  as of August 31, 2018  iShares^® MSCI World ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		13.46	%		10.43	%		11.70	%		13.46	%		64.22	%		108.54	%
Fund Market		13.23			9.89			11.67			13.23			60.24			108.15
Index		13.10			10.23			11.51			13.10			62.76			106.16

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/10/12. The first day of secondary market trading was 1/12/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 10 for more information.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value		Ending Account Value		Expenses Paid During			Beginning Account Value		Ending Account Value		Expenses Paid During		Annualized Expense
	(03/01/18)		(08/31/18)		the Period	(a)		(03/01/18)		(08/31/18)		the Period	(a)	Ratio
$	1,000.00	$	1,040.80	$	1.23		$	1,000.00	$	1,024.00	$	1.22		0.24	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 10 for more information.

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Fund Summary  as of August 31, 2018  (continued) iShares^® MSCI World ETF

Portfolio Management Commentary

The U.S., which made up approximately 60% of the Index on average during the reporting period, contributed a large majority of the Index’s return. Key to the performance of U.S. stocks was the growing economy, which expanded at its highest quarterly rate since 2014. Unemployment continued to fall, reaching an 18-year low, as the number of workers with a full-time job hit an all-time high, putting more money in the hands of consumers. The resulting strong consumer spending, along with record exports and increased industrial production, helped U.S. businesses generate healthy earnings. Tax reform legislation also benefited companies, with a lower corporate tax rate serving to boost earnings for many stocks.

Japan contributed moderately to the Index’s return, as healthy earnings and pro-business government policies supported Japanese stocks, despite concerns over a possible trade war. Companies in the U.K. were another source of strength, with large energy producers advancing due to increasing oil prices. Labor law reform in France, which contributed modestly to the Index’s return, was welcomed by investors. In contrast, Spain detracted slightly from the Index’s performance on concerns over political uncertainty.

From a sector perspective, information technology was the top contributor to the Index’s return. An improving economic environment and increasing automation led to an increase in worldwide IT budgets. This heightened spending on information technology products boosted the sector’s revenues and profits. The software and services industry within the sector benefited from increased adoption of cloud-based computing and the move to platform-based subscription models.

The consumer discretionary sector was also a solid contributor to the Index’s return, driven by increased consumer spending in the U.S., the European Union, and Japan. Healthcare stocks also contributed to the Index’s performance, with the healthcare equipment and services industry benefiting from a growing population of elderly and increased global healthcare spending. On the downside, the telecommunication services sector detracted slightly from the Index’s return as competitive pressures kept margins low.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of Total Investments	(a)
Information Technology	19.3	%
Financials	16.5
Health Care	12.8
Consumer Discretionary	12.7
Industrials	11.3
Consumer Staples	8.0
Energy	6.4
Materials	4.6
Utilities	2.9
Real Estate	2.9
Telecommunication Services	2.6

TEN LARGEST COUNTRIES

Country	Percent of Total Investments	(a)
United States	62.0	%
Japan	8.4
United Kingdom	5.9
France	3.7
Canada	3.4
Germany	3.3
Switzerland	2.9
Australia	2.4
Netherlands	1.3
Hong Kong	1.3

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 9

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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Schedule of Investments August 31, 2018 iShares^® MSCI Frontier 100 ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Argentina — 15.5%
Adecoagro SA(a)(b)		406,435	$	3,255,544
Arcos Dorados Holdings Inc., Class A(b)		511,049		3,449,581
Banco Macro SA, ADR		189,347		8,263,103
BBVA Banco Frances SA, ADR		293,495		2,500,577
Central Puerto SA, ADR		311,356		2,914,292
Corp. America Airports SA(a)(b)		131,214		1,194,047
Cresud SACIF y A, ADR		134,221		1,951,573
Despegar.com Corp.(a)		85,179		1,436,118
Empresa Distribuidora y Comercializadora Norte SA, ADR(a)		89,253		2,231,325
Globant SA(a)(b)		132,805		8,616,389
Grupo Financiero Galicia SA, ADR		423,666		9,532,485
Grupo Supervielle SA, ADR		243,951		1,668,625
IRSA Inversiones y Representaciones SA, ADR		95,710		1,568,687
Loma Negra Cia Industrial Argentina SA, ADR(a)		252,054		1,903,008
Pampa Energia SA, ADR(a)		270,745		8,241,478
Telecom Argentina SA, ADR		451,283		7,459,708
Transportadora de Gas del Sur SA, Class B, ADR		318,849		4,141,849
YPF SA, ADR		725,554		10,977,632
				81,306,021
Bahrain — 4.5%
Ahli United Bank BSC		23,648,377		15,937,459
Aluminium Bahrain BSC		791,582		1,321,401
GFH Financial Group BSC		14,889,925		5,431,986
Ithmaar Holding BSC(a)		7,353,736		743,391
				23,434,237
Bangladesh — 6.2%
Acme Laboratores Ltd. (The)		813,368		881,545
Bangladesh Export Import Co. Ltd.		3,877,922		1,216,041
Beximco Pharmaceuticals Ltd.		2,019,020		2,140,108
BRAC Bank Ltd.(a)		3,494,380		3,208,147
City Bank Ltd. (The)		3,418,356		1,446,902
Eastern Bank Ltd.		2,505,284		1,105,228
GrameenPhone Ltd.		596,745		2,750,705
International Finance Investment & Commerce Bank Ltd.(a)		4,938,819		736,082
Islami Bank Bangladesh Ltd.		4,796,046		1,503,947
LafargeHolcim Bangladesh Ltd.		2,532,204		1,606,215
National Bank Ltd.(a)		11,005,038		1,338,397
Olympic Industries Ltd.		860,065		2,068,381
Pubali Bank Ltd.		2,510,791		754,405
Renata Ltd.		66,388		963,722
Square Pharmaceuticals Ltd.		2,807,172		9,284,720
Summit Power Ltd.		2,722,115		1,295,009
				32,299,554
Croatia — 0.4%
Valamar Riviera DD		299,827		1,852,622
Jordan — 1.8%
Al-Eqbal Investment Co. PLC(a)		84,514		1,596,177
Arab Bank PLC		450,450		4,114,047
Bank of Jordan		311,983		1,006,964
Jordan Islamic Bank		255,787		1,168,076
Jordan Petroleum Refinery Co.		395,682		1,360,767
				9,246,031
Kazakhstan — 0.9%
Halyk Savings Bank of Kazakhstan JSC, GDR(c)		344,318		3,753,066

Security	Shares		Value
Kazakhstan (continued)
KCell JSC, GDR(c)		230,575	$	1,069,868
				4,822,934
Kenya — 7.1%
Co-operative Bank of Kenya Ltd. (The)		12,313,160		2,014,548
East African Breweries Ltd.		2,166,742		4,275,475
Equity Group Holdings Ltd./Kenya		15,261,600		6,734,172
KCB Group Ltd.		13,225,636		5,901,374
Safaricom PLC		64,934,667		18,189,433
				37,115,002
Kuwait — 21.5%
Agility Public Warehousing Co. KSC		3,471,765		9,645,703
Alimtiaz Investment Group KSC		3,039,953		1,265,392
Boubyan Bank KSCP		2,952,856		5,131,160
Burgan Bank SAK		2,775,544		2,329,000
Gulf Bank KSCP		5,632,511		4,689,107
Humansoft Holding Co. KSC		361,371		4,178,390
Kuwait Finance House KSCP		12,769,300		24,762,402
Kuwait International Bank KSCP		2,082,282		1,712,878
Kuwait Projects Co. Holding KSCP		1,905,163		1,422,421
Mabanee Co. SAK		2,047,355		4,524,878
Mezzan Holding Co. KSCC		507,426		1,195,226
Mobile Telecommunications Co. KSC		8,900,040		14,024,840
National Bank of Kuwait SAKP		12,517,420		33,206,106
National Industries Group Holding SAK		3,907,027		2,116,790
National Real Estate Co. KPSC(a)		2,749,989		990,250
Warba Bank KSCP(a)		2,033,224		1,578,486
				112,773,029
Mauritius — 0.8%
Greenbay Properties Ltd.		40,993,660		3,973,108
Morocco — 7.3%
Attijariwafa Bank		218,653		10,742,738
Banque Centrale Populaire		126,700		3,603,213
Ciments du Maroc		15,841		2,519,781
Cosumar		154,300		2,849,008
Douja Promotion Groupe Addoha SA		607,337		1,093,035
Maroc Telecom		962,077		14,466,326
Societe d’Exploitation des Ports		117,545		2,151,651
TOTAL Maroc SA		7,281		997,461
				38,423,213
Netherlands — 0.1%
Digi Communications NV(d)		68,031		495,597
Nigeria — 6.0%
Access Bank PLC		77,105,497		2,023,766
Afriland Properties PLC(a)		8,020		44
Dangote Cement PLC		8,470,033		5,335,454
FBN Holdings PLC		96,700,398		2,351,053
Guaranty Trust Bank PLC		78,980,452		7,855,495
Lafarge Africa PLC		14,092,744		914,987
Nestle Nigeria PLC		1,503,081		6,229,096
United Bank for Africa PLC		90,579,057		2,002,024
Wapic Insurance PLC(a)		73,817		73
Zenith Bank PLC		84,046,538		4,876,301
				31,588,293
Oman — 1.9%
Bank Muscat SAOG		4,714,938		4,630,415
Bank Nizwa SAOG(a)		3,981,713		899,997
Bank Sohar SAOG		2,297,914		770,150

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Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Frontier 100 ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Oman (continued)
Oman Telecommunications Co. SAOG		1,043,439	$	2,092,842
Ooredoo QSC		951,961		1,305,886
				9,699,290
Romania — 5.8%
Banca Transilvania SA		19,744,571		11,655,737
BRD-Groupe Societe Generale SA		1,168,177		4,172,847
OMV Petrom SA		62,200,236		5,124,955
Societatea Energetica Electrica SA		883,824		2,277,914
Societatea Nationala de Gaze Naturale ROMGAZ SA		622,708		5,083,841
Transgaz SA Medias		25,880		2,304,649
				30,619,943
Slovenia — 0.4%
Zavarovalnica Triglav DD		59,853		2,040,421
Sri Lanka — 0.3%
Sampath Bank PLC(a)		997,651		1,729,806
Vietnam — 19.4%
Bank for Foreign Trade of Vietnam JSC		1,592,355		4,270,605
FLC Faros Construction JSC(a)		775,102		1,370,331
Hoa Phat Group JSC(a)		5,655,000		9,694,355
Hoang Huy Investment Financial Services JSC		994,500		1,156,495
Kinh Bac City Development Share Holding Corp.(a)		1,328,590		689,836
Masan Group Corp.(a)		2,517,690		10,263,498
No Va Land Investment Group Corp.(a)		1,490,479		4,157,275
PetroVietnam Fertilizer &Chemicals JSC		996,890		750,747
PetroVietnam Gas JSC		316,000		1,396,670
PetroVietnam Technical Services Corp.		968,200		889,095
Saigon Beer Alcohol Beverage Corp.		351,480		3,408,620
Saigon Securities Inc.		1,658,260		2,248,585
Saigon Thuong Tin Commercial JSB(a)		3,111,069		1,515,218
Thanh Thanh Cong - Bien Hoa JSC(a)		941,490		767,607
Vietnam Dairy Products JSC		3,154,540		21,211,655
Vincom Retail JSC(a)		4,155,720		7,017,146
Vingroup JSC(a)		4,321,248		19,173,406
Vinhomes JSC(a)(d)		2,610,620		11,650,553
				101,631,697
Total Common Stocks — 99.9% (Cost: $482,520,146)				523,050,798

Security	Shares		Value
Rights
Morocco — 0.0%
Cosumar (Expires 12/18/28)(a)(e)		1	$	9
Total Rights — 0.0% (Cost: $0)				9
Short-Term Investments
Money Market Funds — 0.5%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		2,634,883		2,635,674
Total Short-Term Investments — 0.5% (Cost: $2,635,361)				2,635,674
Total Investments in Securities — 100.4% (Cost: $485,155,507)				525,686,481
Other Assets, Less Liabilities — (0.4)%				(2,241,006	)
Net Assets — 100.0%			$	523,445,475

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

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

^(d)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(e)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(f)  Affiliate of the Fund.

^(g)  Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer	08/31/17	Net Activity		08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	4,575,839	(1,940,956	)	2,634,883	$	2,635,674	$	18,654	(b)	$	46		$	(350)
BlackRock Cash Funds: Treasury, SL Agency Shares	3,859,935	(3,859,935	)	—		—		44,827			—			—
					$	2,635,674	$	63,481		$	46		$	(350)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Frontier 100 ETF

Forward Foreign Currency Exchange Contracts

Forward foreign currency exchange contracts outstanding as of August 31, 2018 were as follows:

Currency Purchased	Currency Sold		Counterparty	Settlement Date	Unrealized Appreciation (Depreciation)
USD         415,418		EUR        350,000	SSBL	09/13/18	$	7,963
EUR         350,000		USD        415,420	BOA	09/13/18		(7,965	)
Net unrealized depreciation					$	(2	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Foreign Currency Exchange Contracts
Assets — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts	$	7,963
Liabilities — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts	$	7,965

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Foreign Currency Exchange Contracts
Net Change in Unrealized Appreciation (Depreciation) on:
Forward foreign currency exchange contracts	$	(2	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Forward foreign currency exchange contracts:
Average amounts purchased — in USD	$	83,084
Average amounts sold — in USD	$	83,084

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments - Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

	Assets		Liabilities
Derivative Financial Instruments:
Forward foreign currency exchange contracts	$	7,963	$	7,965
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	7,963	$	7,965
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		—		—
Total derivative assets and liabilities subject to an MNA	$	7,963	$	7,965

S C H E D U L E    O F    I N V E S T M E N T  S 13

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI Frontier 100 ETF

The following tables presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

Counterparty		Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset	(a)		Net Amount of Derivative Assets	(b)
State Street Bank London	$	7,963	$	—		$	7,963

Counterparty		Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset	(a)		Net Amount of Derivative Liabilities	(c)
Bank of America N.A.	$	7,965	$	—		$	7,965

^(a)  The amount of derivatives available for offset is limited to the amount of derivatives assets and/or liabilities that are subject to an MNA.

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount represents the net amount payable due to the counterparty in the event of default.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	523,050,754	$	44		$	—	$	523,050,798
Rights		—		—			9		9
Money Market Funds		2,635,674		—			—		2,635,674
	$	525,686,428	$	44		$	9	$	525,686,481
Derivative financial instruments(a)
Assets
Forward Foreign Currency Exchange Contracts	$	—	$	7,963		$	—	$	7,963
Liabilities
Forward Foreign Currency Exchange Contracts		—		(7,965	)		—		(7,965	)
	$	—	$	(2	)	$	—	$	(2	)

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

See notes to financial statements.

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Schedule of Investments August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Australia — 2.4%
AGL Energy Ltd.		11,956	$	179,676
Amcor Ltd./Australia		19,276		199,348
AMP Ltd.		41,480		100,195
APA Group		20,406		147,576
Aristocrat Leisure Ltd.		10,004		228,550
ASX Ltd.		3,663		179,184
Aurizon Holdings Ltd.		32,513		98,756
Australia & New Zealand Banking Group Ltd.		36,173		771,729
Bendigo & Adelaide Bank Ltd.		10,187		85,386
BHP Billiton Ltd.		42,578		1,022,616
BlueScope Steel Ltd.		9,411		117,813
Brambles Ltd.		22,753		180,511
Cochlear Ltd.		1,647		257,054
Commonwealth Bank of Australia		22,108		1,139,021
Computershare Ltd.		8,723		121,249
Crown Resorts Ltd.		7,015		72,040
CSL Ltd.		6,588		1,083,006
Dexus		19,655		152,379
Fortescue Metals Group Ltd.		22,696		63,029
Goodman Group		32,696		253,010
GPT Group (The)		40,504		151,442
Incitec Pivot Ltd.		37,271		105,661
Insurance Australia Group Ltd.		36,539		204,001
James Hardie Industries PLC		9,036		138,343
LendLease Group		12,871		190,727
Macquarie Group Ltd.		4,341		406,240
Medibank Pvt Ltd.		45,630		100,319
Mirvac Group		91,805		161,336
National Australia Bank Ltd.		33,367		684,597
Newcrest Mining Ltd.		12,688		177,922
Oil Search Ltd.		21,494		139,278
Orica Ltd.		7,015		89,238
Origin Energy Ltd.(a)		32,635		187,633
QBE Insurance Group Ltd.		19,459		154,941
Ramsay Health Care Ltd.		2,501		100,746
Rio Tinto Ltd.		4,209		221,417
Santos Ltd.		26,243		128,677
Scentre Group		73,404		218,183
Sonic Healthcare Ltd.		8,296		157,131
South32 Ltd.		82,598		207,877
Stockland		45,695		136,483
Suncorp Group Ltd.		16,426		184,010
Sydney Airport		17,814		92,887
Tabcorp Holdings Ltd.		24,107		83,684
Telstra Corp. Ltd.		52,544		117,800
Transurban Group		35,493		309,563
Treasury Wine Estates Ltd.		7,747		109,083
Vicinity Centres		60,756		121,710
Wesfarmers Ltd.		14,152		526,577
Westpac Banking Corp.		42,155		870,085
Woodside Petroleum Ltd.		10,921		291,202
Woolworths Group Ltd.		16,897		345,824
				13,566,745
Austria — 0.1%
ANDRITZ AG		1,769		104,970
Erste Group Bank AG		5,002		199,445
OMV AG		3,721		197,550

Security	Shares		Value
Austria (continued)
Raiffeisen Bank International AG		2,417	$	68,898
				570,863
Belgium — 0.4%
Ageas		3,782		196,168
Anheuser-Busch InBev SA/NV		9,638		904,394
Colruyt SA		1,952		116,283
Groupe Bruxelles Lambert SA		1,037		109,072
KBC Group NV		3,675		261,683
Proximus SADP		3,111		71,832
Solvay SA		1,044		139,264
UCB SA		2,135		195,645
Umicore SA		4,514		252,308
				2,246,649
Canada — 3.4%
Agnico Eagle Mines Ltd.		4,087		140,982
Alimentation Couche-Tard Inc., Class B		5,856		280,596
Bank of Montreal		8,730		716,169
Bank of Nova Scotia (The)		15,931		922,787
Barrick Gold Corp.		14,367		147,091
Bausch Health Companies Inc.(a)		5,063		117,028
BCE Inc.		854		34,862
BlackBerry Ltd.(a)		9,089		96,818
Bombardier Inc., Class B(a)		30,605		101,160
Brookfield Asset Management Inc., Class A		11,468		490,399
Cameco Corp.		7,991		83,100
Canadian Imperial Bank of Commerce		5,925		555,717
Canadian National Railway Co.		10,614		944,715
Canadian Natural Resources Ltd.		15,632		534,194
Canadian Pacific Railway Ltd.		2,074		436,591
Canadian Tire Corp. Ltd., Class A, NVS		1,342		168,034
Canadian Utilities Ltd., Class A, NVS		2,928		71,294
Cenovus Energy Inc.		15,189		140,946
CGI Group Inc., Class A(a)		3,660		240,520
CI Financial Corp.		4,514		72,698
Constellation Software Inc./Canada		366		279,307
Dollarama Inc.		3,914		148,131
Enbridge Inc.		24,019		819,882
Encana Corp.		14,457		191,585
Fairfax Financial Holdings Ltd.		366		201,100
Finning International Inc.		4,331		100,739
First Quantum Minerals Ltd.		9,428		118,361
Fortis Inc./Canada		5,795		189,856
Franco-Nevada Corp.		2,806		179,513
George Weston Ltd.		1,525		118,870
Gildan Activewear Inc.		3,721		109,751
Goldcorp Inc.		12,017		129,943
Great-West Lifeco Inc.		3,660		89,370
Husky Energy Inc.		6,060		100,291
IGM Financial Inc.		1,769		49,396
Imperial Oil Ltd.		4,636		144,596
Intact Financial Corp.		1,952		154,938
Inter Pipeline Ltd.		9,288		170,809
Loblaw Companies Ltd.		3,416		176,832
Magna International Inc.		5,307		287,582
Manulife Financial Corp.		25,620		469,194
Metro Inc.		5,490		172,032
National Bank of Canada		5,124		256,642
Nutrien Ltd.		8,872		499,001
Onex Corp.		2,257		162,046

S C H E D U L E    O F    I N V E S T M E N T  S 15

Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Canada (continued)
Open Text Corp.		4,514	$	177,174
Pembina Pipeline Corp.		7,442		254,031
Power Corp. of Canada		5,002		112,204
Power Financial Corp.		3,538		82,566
PrairieSky Royalty Ltd.		4,941		90,942
Restaurant Brands International Inc.		3,599		206,592
RioCan REIT		4,880		94,535
Rogers Communications Inc., Class B, NVS		5,612		291,026
Royal Bank of Canada		18,422		1,464,492
Saputo Inc.		5,124		157,027
Shaw Communications Inc., Class B, NVS		6,289		126,942
Shopify Inc., Class A(a)		1,206		175,598
SNC-Lavalin Group Inc.		2,867		115,498
Sun Life Financial Inc.		7,625		303,316
Suncor Energy Inc.		22,031		907,631
Teck Resources Ltd., Class B		7,087		159,844
TELUS Corp.		2,411		89,473
Thomson Reuters Corp.		4,026		179,201
Toronto-Dominion Bank (The)		24,161		1,457,313
TransCanada Corp.		11,712		499,216
Vermilion Energy Inc.		2,684		85,299
Waste Connections Inc.(b)		4,484		355,985
Wheaton Precious Metals Corp.		7,137		122,385
				19,123,758
Denmark — 0.6%
AP Moller - Maersk A/S, Class A(b)		183		264,036
Carlsberg A/S, Class B		1,870		228,803
Coloplast A/S, Class B		2,318		248,672
Danske Bank A/S		9,924		292,643
DSV A/S		4,584		430,528
Genmab A/S(a)		943		163,505
Novo Nordisk A/S, Class B		25,254		1,240,511
Novozymes A/S, Class B		4,209		231,220
Pandora A/S		1,775		106,291
Vestas Wind Systems A/S		3,310		231,167
William Demant Holding A/S(a)		4,026		164,116
				3,601,492
Finland — 0.4%
Elisa OYJ		3,294		141,230
Fortum OYJ		3,843		97,475
Kone OYJ, Class B		4,880		264,078
Metso OYJ		3,320		116,850
Neste OYJ		1,686		146,732
Nokia OYJ		78,590		438,727
Sampo OYJ, Class A		5,124		262,735
Stora Enso OYJ, Class R		9,882		184,366
UPM-Kymmene OYJ		8,113		313,391
Wartsila OYJ Abp		9,516		201,397
				2,166,981
France — 3.7%
Accor SA, NVS		3,172		159,066
Air Liquide SA		5,525		697,474
Airbus SE		7,930		980,413
Alstom SA, NVS		3,782		167,213
Atos SE		2,013		241,707
AXA SA, NVS		25,084		634,633
BNP Paribas SA		14,890		876,274
Bollore SA, NVS		28,975		139,030
Bouygues SA, NVS		3,670		162,390

Security	Shares		Value
France (continued)
Bureau Veritas SA, NVS		5,003	$	128,877
Capgemini SE		2,318		298,692
Carrefour SA, NVS		9,150		163,629
Cie. de Saint-Gobain, NVS		6,840		294,976
Cie. Generale des Etablissements Michelin SCA, Class B, NVS		2,623		311,137
Credit Agricole SA		15,128		207,556
Danone SA, NVS		7,686		606,491
Dassault Systemes SE, NVS		2,318		376,500
Edenred, NVS		4,209		160,774
Electricite de France SA, NVS		6,511		106,891
Engie SA		22,265		327,184
Essilor International Cie Generale d’Optique SA, NVS		2,867		414,634
Eutelsat Communications SA		3,965		94,111
Getlink, NVS		11,529		145,542
Hermes International, NVS		497		323,941
Iliad SA, NVS		610		78,993
Ingenico Group SA, NVS		854		60,154
Ipsen SA, NVS		658		117,249
Kering SA, NVS		1,220		664,312
Klepierre SA		4,172		149,992
Legrand SA		4,209		317,826
L’Oreal SA		3,355		806,862
LVMH Moet Hennessy Louis Vuitton SE, NVS		3,721		1,306,824
Orange SA, NVS		25,498		413,853
Pernod Ricard SA, NVS		3,050		482,620
Peugeot SA, NVS		7,259		200,166
Publicis Groupe SA, NVS		3,116		200,488
Renault SA, NVS		2,637		227,657
Safran SA		4,392		573,863
Sanofi, NVS		15,433		1,323,199
Schneider Electric SE, NVS		7,278		594,789
SCOR SE		2,684		109,018
SES SA		5,734		115,284
Societe BIC SA, NVS		610		56,601
Societe Generale SA, NVS		10,370		425,188
Sodexo SA, NVS		1,525		159,194
STMicroelectronics NV		11,157		229,832
Suez		6,710		97,237
Thales SA, NVS		1,952		275,604
TOTAL SA, NVS		33,001		2,068,428
Ubisoft Entertainment SA, NVS(a)		1,077		116,111
Unibail-Rodamco-Westfield(a)		510		107,403
Unibail-Rodamco-Westfield		1,299		273,561
Valeo SA, NVS		3,843		174,874
Veolia Environnement SA, NVS		6,893		145,643
Vinci SA		6,832		656,272
Vivendi SA, NVS		14,884		387,047
				20,935,279
Germany — 3.1%
1&1 Drillisch AG		893		45,301
adidas AG		2,562		640,592
Allianz SE, Registered		5,795		1,238,189
BASF SE		11,956		1,108,552
Bayer AG, Registered		12,001		1,122,359
Bayerische Motoren Werke AG		4,212		408,764
Beiersdorf AG		2,650		309,252
Brenntag AG		3,294		199,064
Commerzbank AG(a)		19,094		180,948
Continental AG		1,482		272,527

16 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Germany (continued)
Covestro AG(c)		2,869	$	244,948
Daimler AG, Registered		11,913		772,045
Deutsche Bank AG, Registered(b)		27,049		305,337
Deutsche Boerse AG		2,909		402,770
Deutsche Lufthansa AG, Registered		4,379		114,586
Deutsche Post AG, Registered		13,969		510,504
Deutsche Telekom AG, Registered		41,420		670,353
E.ON SE		32,419		346,265
Fresenius Medical Care AG & Co. KGaA		3,355		340,623
Fresenius SE &Co. KGaA		5,734		438,852
GEA Group AG		3,172		120,794
Hannover Rueck SE		1,220		167,923
HeidelbergCement AG		2,440		194,694
Henkel AG & Co. KGaA		1,769		197,899
Infineon Technologies AG		18,666		476,056
LANXESS AG		2,257		177,729
Linde AG		2,684		612,700
MAN SE		1,403		152,873
Merck KGaA		2,257		237,602
MTU Aero Engines AG		825		181,323
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Registered		2,013		435,167
OSRAM Licht AG		2,136		96,129
Puma SE		162		88,966
QIAGEN NV(a)		5,170		200,610
RWE AG		9,211		234,166
SAP SE		13,115		1,581,168
Siemens AG, Registered		10,126		1,319,303
thyssenkrupp AG		6,771		156,852
TUI AG		8,174		151,076
United Internet AG, Registered		1,431		75,456
Vonovia SE		11,712		602,173
Wirecard AG		1,634		363,692
Zalando SE(a)(c)		2,379		125,444
				17,621,626
Hong Kong — 1.2%
AIA Group Ltd.		170,800		1,473,220
Bank of East Asia Ltd. (The)(b)		48,800		180,616
BOC Hong Kong Holdings Ltd.		91,500		446,489
CK Asset Holdings Ltd.		62,000		441,960
CK Hutchison Holdings Ltd.		30,500		351,479
CLP Holdings Ltd.		30,500		358,474
Galaxy Entertainment Group Ltd.		62,000		458,943
Hang Seng Bank Ltd.		18,300		496,151
Hong Kong & China Gas Co. Ltd.		241,446		497,110
Hong Kong Exchanges &Clearing Ltd.		16,000		455,401
Jardine Matheson Holdings Ltd.		6,200		391,344
Link REIT		30,500		303,877
Melco Resorts & Entertainment Ltd., ADR		6,051		144,498
Minth Group Ltd.(b)		8,000		32,769
MTR Corp. Ltd.		61,000		314,369
New World Development Co. Ltd.		183,333		244,790
Sands China Ltd.		48,800		238,128
Sun Hung Kai Properties Ltd.		8,000		118,743
WH Group Ltd.(c)		92,500		69,768
Wynn Macau Ltd.		33,600		93,537
				7,111,666
Ireland — 0.2%
AIB Group PLC		13,279		74,840

Security	Shares		Value
Ireland (continued)
Bank of Ireland Group PLC		15,570	$	127,535
CRH PLC		11,163		371,591
Kerry Group PLC, Class A		2,684		306,818
Paddy Power Betfair PLC		1,232		112,524
Smurfit Kappa Group PLC		3,294		134,830
				1,128,138
Israel — 0.2%
Bank Hapoalim BM		32,635		244,985
Check Point Software Technologies Ltd.(a)		2,013		233,891
Nice Ltd.(a)		1,708		197,022
Teva Pharmaceutical Industries Ltd., ADR, NVS		13,664		313,042
				988,940
Italy — 0.8%
Assicurazioni Generali SpA		15,982		266,746
Atlantia SpA		8,556		178,690
CNH Industrial NV		18,020		215,953
Enel SpA		107,319		531,928
Eni SpA		33,367		620,383
Ferrari NV		2,372		311,032
Fiat Chrysler Automobiles NV(a)		15,128		256,277
Intesa Sanpaolo SpA		201,361		498,438
Leonardo SpA(b)		3,996		44,866
Luxottica Group SpA		2,867		190,538
Mediobanca Banca di Credito Finanziario SpA		12,435		115,976
Snam SpA		49,084		201,938
Telecom Italia SpA/Milano(a)		234,915		150,055
Tenaris SA		7,991		134,349
Terna Rete Elettrica Nazionale SpA		44,957		236,744
UniCredit SpA		27,354		395,729
				4,349,642
Japan — 8.3%
Aeon Co. Ltd.		12,200		264,773
Aisin Seiki Co. Ltd.		6,100		282,761
Ajinomoto Co. Inc.		12,200		207,505
Alps Electric Co. Ltd.		800		24,097
ANA Holdings Inc.		6,100		211,741
Asahi Group Holdings Ltd.		10,000		452,631
Asahi Kasei Corp.		28,200		414,538
Astellas Pharma Inc.		36,600		621,195
Bridgestone Corp.		12,200		450,328
Canon Inc.		18,300		588,023
Casio Computer Co. Ltd.		6,400		103,026
Central Japan Railway Co.		2,200		442,738
Chubu Electric Power Co. Inc.		18,300		266,615
Chugai Pharmaceutical Co. Ltd.		6,100		354,277
Chugoku Electric Power Co. Inc. (The)		18,300		229,070
Concordia Financial Group Ltd.		24,400		117,286
Daifuku Co. Ltd.		1,000		52,036
Dai-ichi Life Holdings Inc.		15,000		286,378
Daiichi Sankyo Co. Ltd.		7,000		273,851
Daikin Industries Ltd.		6,200		792,298
Daiwa House Industry Co. Ltd.		12,200		372,871
Denso Corp.		6,100		294,589
Dentsu Inc.		5,000		234,026
East Japan Railway Co.		6,200		562,213
Eisai Co. Ltd.		6,200		562,493
FANUC Corp.		2,700		530,212
Fast Retailing Co. Ltd.		700		327,069
FUJIFILM Holdings Corp.		6,100		258,501

S C H E D U L E    O F    I N V E S T M E N T  S 17

Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Japan (continued)
Fujitsu Ltd.		40,000	$	293,313
Hakuhodo DY Holdings Inc.		12,200		206,295
Hitachi Ltd.		62,000		405,655
Honda Motor Co. Ltd.		24,400		724,397
Hoya Corp.		6,100		357,413
Hulic Co. Ltd.		12,200		115,745
Idemitsu Kosan Co. Ltd.		900		45,534
Iida Group Holdings Co. Ltd.		6,100		112,885
Inpex Corp.		24,400		267,358
ITOCHU Corp.		24,400		427,663
Japan Airlines Co. Ltd.		6,100		220,323
Japan Exchange Group Inc.		12,200		215,427
Japan Post Holdings Co. Ltd.		24,500		291,654
Japan Retail Fund Investment Corp.		122		221,148
Japan Tobacco Inc.		18,300		482,235
JFE Holdings Inc.		12,200		267,523
JTEKT Corp.		6,100		85,654
JXTG Holdings Inc.		54,900		387,372
Kansai Electric Power Co. Inc. (The)		16,100		231,224
Kao Corp.		6,200		482,256
KDDI Corp.		24,400		647,161
Keyence Corp.		1,000		567,164
Kirin Holdings Co. Ltd.		12,200		302,291
Kobe Steel Ltd.		6,100		51,161
Komatsu Ltd.		16,900		481,769
Konami Holdings Corp.		2,900		121,743
Konica Minolta Inc.		14,500		147,897
Kose Corp.		200		36,975
Kubota Corp.		18,300		286,585
Kuraray Co. Ltd.		18,300		266,038
Kyocera Corp.		6,100		385,634
Kyushu Electric Power Co. Inc.		12,200		137,090
M3 Inc.		6,100		269,284
Marubeni Corp.		36,600		300,893
Marui Group Co. Ltd.		6,100		135,054
Mazda Motor Corp.		12,200		141,766
MINEBEA MITSUMI Inc.		6,100		114,755
Mitsubishi Chemical Holdings Corp.		36,600		328,751
Mitsubishi Corp.		24,400		697,772
Mitsubishi Electric Corp.		28,200		381,476
Mitsubishi Estate Co. Ltd.		19,600		326,033
Mitsubishi Heavy Industries Ltd.		6,100		226,979
Mitsubishi Motors Corp.		12,200		87,139
Mitsubishi UFJ Financial Group Inc.		171,400		1,036,886
Mitsubishi UFJ Lease & Finance Co. Ltd.		24,400		137,530
Mitsui &Co. Ltd.		30,600		511,219
Mitsui Fudosan Co. Ltd.		12,200		279,956
Mizuho Financial Group Inc.		390,700		687,429
MS&AD Insurance Group Holdings Inc.		8,000		246,381
Murata Manufacturing Co. Ltd.		2,700		467,146
Nagoya Railroad Co. Ltd.		6,100		139,455
NEC Corp.		3,000		83,059
Nexon Co. Ltd.(a)		8,900		111,887
Nidec Corp.		4,700		682,631
Nikon Corp.		12,200		234,021
Nintendo Co. Ltd.		1,600		579,483
Nippon Paint Holdings Co. Ltd.(b)		4,900		193,994
Nippon Steel &Sumitomo Metal Corp.		12,247		246,906
Nippon Telegraph & Telephone Corp.		12,200		544,618
Nissan Motor Co. Ltd.		42,700		400,487

Security	Shares		Value
Japan (continued)
Nitori Holdings Co. Ltd.		900	$	136,926
Nitto Denko Corp.		3,700		287,898
Nomura Holdings Inc.		67,100		307,709
Nomura Real Estate Master Fund Inc.		122		170,317
NTT DOCOMO Inc.		24,400		634,838
Olympus Corp.		6,100		248,929
Omron Corp.		6,100		273,684
Ono Pharmaceutical Co. Ltd.		6,100		160,635
ORIX Corp.		24,400		393,225
Otsuka Holdings Co. Ltd.		6,100		286,667
Panasonic Corp.		36,600		437,840
Rakuten Inc.		18,300		140,264
Recruit Holdings Co. Ltd.		18,300		558,976
Renesas Electronics Corp.(a)		12,200		92,420
Resona Holdings Inc.		42,700		242,564
Ricoh Co. Ltd.		15,200		159,697
Ryohin Keikaku Co. Ltd.		200		59,521
Sekisui House Ltd.		12,200		199,528
Seven & i Holdings Co. Ltd.		12,200		497,858
Seven Bank Ltd.		28,800		89,866
Sharp Corp./Japan(b)		1,600		37,993
Shin-Etsu Chemical Co. Ltd.		6,200		582,901
Shionogi &Co. Ltd.		6,100		355,157
Shiseido Co. Ltd.		6,200		437,469
SMC Corp./Japan		600		200,045
SoftBank Group Corp.		12,400		1,151,824
Sompo Holdings Inc.		6,100		260,977
Sony Corp.		18,300		1,047,648
Start Today Co. Ltd.		2,200		75,989
Subaru Corp.		6,100		181,594
Sumco Corp.		2,500		44,731
Sumitomo Chemical Co. Ltd.		5,000		28,453
Sumitomo Corp.		18,300		297,642
Sumitomo Electric Industries Ltd.		18,300		290,133
Sumitomo Metal Mining Co. Ltd.		900		29,138
Sumitomo Mitsui Financial Group Inc.		18,300		723,022
Sumitomo Mitsui Trust Holdings Inc.		6,100		245,408
Sumitomo Realty & Development Co. Ltd.		5,000		173,603
Suzuki Motor Corp.		6,100		397,736
Sysmex Corp.		4,000		347,748
T&D Holdings Inc.		12,200		185,885
Takeda Pharmaceutical Co. Ltd.		12,200		511,941
Terumo Corp.		6,100		337,223
Tohoku Electric Power Co. Inc.		12,200		153,373
Tokio Marine Holdings Inc.		12,200		576,195
Tokyo Electric Power Co. Holdings Inc.(a)		30,500		141,381
Tokyo Electron Ltd.		1,700		289,376
Tokyo Gas Co. Ltd.		12,200		289,693
Tokyu Fudosan Holdings Corp.		24,400		166,576
Toray Industries Inc.		18,300		137,590
Toshiba Corp.(a)		122,000		365,279
Tosoh Corp.		6,100		96,051
Toyota Motor Corp.		30,500		1,906,164
Unicharm Corp.		6,100		199,803
USS Co. Ltd.		6,100		115,250
Yahoo Japan Corp.(b)		42,800		147,446
Yakult Honsha Co. Ltd.		500		35,623
Yamada Denki Co. Ltd.(b)		24,400		121,246
Yamaha Corp.		4,800		229,860
Yamaha Motor Co. Ltd.		900		22,864

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Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Japan (continued)
Yamato Holdings Co. Ltd.		6,100	$	181,760
Yaskawa Electric Corp.		2,700		90,824
Yokogawa Electric Corp.		6,100		125,372
				47,158,061
Netherlands — 1.3%
Aegon NV		25,376		152,526
AerCap Holdings NV(a)		2,623		149,432
Akzo Nobel NV		3,661		342,981
ArcelorMittal		10,146		306,218
ASML Holding NV		5,124		1,047,126
Heineken Holding NV		2,074		198,115
Heineken NV		3,233		320,262
ING Groep NV		50,508		686,975
Koninklijke Ahold Delhaize NV		18,504		451,256
Koninklijke DSM NV		2,990		314,420
Koninklijke KPN NV		56,120		143,716
Koninklijke Philips NV		13,557		607,124
NN Group NV		3,965		170,368
NXP Semiconductors NV(a)		4,758		443,160
Randstad NV		2,089		131,153
RELX NV		13,974		310,217
Unilever NV, CVA		21,228		1,223,701
Wolters Kluwer NV		5,673		360,389
				7,359,139
New Zealand — 0.0%
a2 Milk Co. Ltd.(a)(b)		10,980		91,940
Fletcher Building Ltd.		23,747		100,209
Spark New Zealand Ltd.		39,345		104,160
				296,309
Norway — 0.2%
DNB ASA		15,128		308,975
Equinor ASA		16,043		412,648
Norsk Hydro ASA		23,546		130,390
Orkla ASA		14,918		123,087
Telenor ASA		9,699		183,363
Yara International ASA		3,660		168,936
				1,327,399
Portugal — 0.1%
EDP - Energias de Portugal SA		40,958		160,358
Galp Energia SGPS SA		8,336		169,440
				329,798
Singapore — 0.4%
Ascendas REIT		100,165		200,323
CapitaLand Ltd.		85,400		213,804
CapitaLand Mall Trust		75,700		118,242
DBS Group Holdings Ltd.		23,100		420,675
Genting Singapore Ltd.		140,300		109,573
Oversea-Chinese Banking Corp. Ltd.		42,700		352,184
Singapore Press Holdings Ltd.(b)		3,700		7,562
Singapore Telecommunications Ltd.		122,000		287,625
United Overseas Bank Ltd.		16,600		327,868
Venture Corp. Ltd.		6,100		80,633
				2,118,489
Spain — 1.0%
ACS Actividades de Construccion y Servicios SA		4,295		179,301
Aena SME SA(c)		1,281		227,293
Amadeus IT Group SA		6,771		629,614
Banco Bilbao Vizcaya Argentaria SA		86,501		540,458

Security	Shares		Value
Spain (continued)
Banco de Sabadell SA		88,215	$	135,688
Banco Santander SA		210,866		1,052,029
Bankia SA		25,300		95,286
Bankinter SA		16,424		146,454
CaixaBank SA		51,547		231,563
Enagas SA		2,061		57,431
Endesa SA		3,867		86,791
Ferrovial SA		8,438		182,853
Grifols SA		3,974		117,119
Iberdrola SA		74,716		558,277
Industria de Diseno Textil SA		14,518		440,028
International Consolidated Airlines Group SA		10,126		91,190
Naturgy Energy Group SA		4,026		108,347
Red Electrica Corp. SA		5,764		121,386
Repsol SA		18,369		354,032
Telefonica SA		57,255		465,447
				5,820,587
Sweden — 0.9%
Alfa Laval AB		5,673		152,187
Assa Abloy AB, Class B		14,762		301,171
Atlas Copco AB, Class A		7,991		228,016
Atlas Copco AB, Class B		6,832		180,812
Boliden AB		5,494		143,958
Electrolux AB, Series B		4,148		92,617
Epiroc AB, Class A(a)		7,991		83,090
Epiroc AB, Class B(a)		6,832		65,400
Essity AB, Class B		8,540		221,528
Hennes & Mauritz AB, Class B(b)		11,468		154,665
Hexagon AB, Class B		4,331		257,496
Investor AB, Class B		6,100		275,541
Kinnevik AB, Class B		3,904		128,361
Lundin Petroleum AB		4,575		159,085
Millicom International Cellular SA, SDR		1,344		77,450
Modern Times Group MTG AB(a)(d)		3,904		192
Nordea Bank AB		38,125		412,277
Sandvik AB		18,976		332,417
Skandinaviska Enskilda Banken AB, Class A		19,276		205,916
Skanska AB, Class B		6,161		115,783
SKF AB, Class B		6,100		117,340
Svenska Handelsbanken AB, Class A		19,581		237,571
Swedbank AB, Class A		10,187		237,269
Swedish Match AB		3,965		212,171
Telefonaktiebolaget LM Ericsson, Class B		42,395		357,945
Telia Co. AB		25,099		111,423
Volvo AB, Class B		21,361		368,235
				5,229,916
Switzerland — 2.9%
ABB Ltd., Registered		26,291		621,186
Adecco Group AG, Registered		2,562		157,307
Baloise Holding AG, Registered		1,403		216,159
Cie. Financiere Richemont SA, Registered		7,259		643,260
Coca-Cola HBC AG		3,834		131,458
Credit Suisse Group AG, Registered		33,926		509,188
Geberit AG, Registered		732		333,642
Givaudan SA, Registered		122		297,462
Julius Baer Group Ltd.		4,087		217,725
Kuehne + Nagel International AG, Registered		1,681		272,026
LafargeHolcim Ltd., Registered		6,960		339,688
Lonza Group AG, Registered		976		314,770

S C H E D U L E    O F    I N V E S T M E N T  S 19

Schedule of Investments   (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Switzerland (continued)
Nestle SA, Registered		40,870	$	3,439,149
Novartis AG, Registered		29,036		2,413,312
Partners Group Holding AG		488		384,002
Roche Holding AG,NVS		9,394		2,339,029
Schindler Holding AG, Participation Certificates, NVS		732		174,996
Schindler Holding AG, Registered		732		169,546
SGS SA, Registered		122		322,062
Sonova Holding AG, Registered		1,342		255,190
Swatch Group AG (The), Bearer		610		260,879
Swiss Life Holding AG, Registered		671		243,672
Swiss Prime Site AG, Registered		2,871		265,251
Swiss Re AG		3,660		329,858
Swisscom AG, Registered		408		182,632
Temenos AG, Registered		976		176,610
UBS Group AG, Registered		48,683		761,883
Zurich Insurance Group AG		1,891		577,213
				16,349,155
United Kingdom — 5.9%
3i Group PLC		15,952		185,856
Admiral Group PLC		3,843		103,895
Anglo American PLC		16,531		331,231
Antofagasta PLC		9,516		99,640
Aptiv PLC		3,617		318,332
Ashtead Group PLC		7,403		227,273
Associated British Foods PLC		5,551		165,149
AstraZeneca PLC		16,775		1,263,501
Auto Trader Group PLC(c)		22,509		131,389
Aviva PLC		53,619		338,003
Babcock International Group PLC		7,198		66,743
BAE Systems PLC		45,445		357,947
Barclays PLC		232,280		530,448
BHP Billiton PLC		29,158		622,969
BP PLC		253,394		1,802,526
British American Tobacco PLC		30,063		1,454,153
British Land Co. PLC (The)		12,993		107,338
BT Group PLC		112,118		316,734
Bunzl PLC		7,137		222,446
Burberry Group PLC		6,527		189,690
Carnival PLC		3,660		220,300
Centrica PLC		72,529		135,088
Compass Group PLC		21,071		454,214
Croda International PLC		2,950		195,547
Diageo PLC		32,635		1,142,935
Experian PLC		14,396		359,255
Ferguson PLC		3,304		265,435
G4S PLC		29,768		96,495
GlaxoSmithKline PLC		66,002		1,338,606
Glencore PLC		164,887		671,975
Hammerson PLC		12,688		77,690
HSBC Holdings PLC		266,660		2,318,349
Imperial Brands PLC		12,078		430,763
Informa PLC		16,744		165,921
InterContinental Hotels Group PLC		3,398		210,007
Intertek Group PLC		3,660		244,229
Investec PLC		13,481		88,731
ITV PLC		55,815		116,544
J Sainsbury PLC		27,464		115,727
Johnson Matthey PLC		3,174		144,224
Kingfisher PLC		31,476		111,891
Land Securities Group PLC		10,580		126,031

Security	Shares		Value
United Kingdom (continued)
Legal &General Group PLC		76,433	$	252,631
Lloyds Banking Group PLC		948,840		731,320
London Stock Exchange Group PLC		5,494		330,192
Marks &Spencer Group PLC		22,692		88,954
Meggitt PLC		15,860		110,945
Melrose Industries PLC		64,379		186,515
Micro Focus International PLC		5,914		100,312
National Grid PLC		39,284		413,581
Next PLC		2,257		161,344
NMC Health PLC		1,708		87,112
Pearson PLC		11,712		139,653
Prudential PLC		34,526		778,584
Randgold Resources Ltd.		1,514		98,824
Reckitt Benckiser Group PLC		8,967		764,442
RELX PLC		16,592		368,769
Rio Tinto PLC		17,520		833,213
Rolls-Royce Holdings PLC		24,949		325,896
Royal Bank of Scotland Group PLC		62,742		196,777
Royal Dutch Shell PLC, Class A		56,394		1,833,551
Royal Dutch Shell PLC, Class B		52,905		1,746,930
RSA Insurance Group PLC		19,171		157,379
Sage Group PLC (The)		20,313		157,196
Segro PLC		22,842		195,412
Severn Trent PLC		5,246		136,438
Shire PLC		12,157		710,810
Sky PLC		14,785		296,035
Smith & Nephew PLC		12,749		224,945
Smiths Group PLC		8,357		175,041
SSE PLC		12,523		203,948
Standard Chartered PLC		45,019		366,938
Standard Life Aberdeen PLC		39,255		161,688
Taylor Wimpey PLC		66,734		145,155
Tesco PLC		135,976		435,651
Unilever PLC		17,263		985,458
United Utilities Group PLC		12,627		121,711
Vodafone Group PLC		348,069		744,202
Weir Group PLC (The)		4,392		107,006
Whitbread PLC		2,806		167,621
WPP PLC		17,324		287,878
				33,195,277
United States — 61.6%
3M Co.		7,747		1,633,997
Abbott Laboratories		22,064		1,474,758
AbbVie Inc.		21,045		2,019,899
ABIOMED Inc.(a)		671		272,815
Accenture PLC, Class A		8,710		1,472,600
Activision Blizzard Inc.		9,761		703,768
Acuity Brands Inc.		613		93,691
Adobe Systems Inc.(a)		6,771		1,784,226
Advance Auto Parts Inc.		1,220		200,117
Advanced Micro Devices Inc.(a)		12,156		305,967
AES Corp./VA		8,967		120,696
Aetna Inc.		4,636		928,452
Affiliated Managers Group Inc.		976		142,584
Aflac Inc.		10,370		479,510
AGCO Corp.		1,403		83,703
Agilent Technologies Inc.		5,673		383,154
AGNC Investment Corp.		5,843		111,134
Air Products &Chemicals Inc.		2,806		466,610
Akamai Technologies Inc.(a)		2,623		197,092

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Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
Albemarle Corp.		1,831	$	174,897
Alexion Pharmaceuticals Inc.(a)		3,172		387,745
Align Technology Inc.(a)		1,117		431,709
Alkermes PLC(a)		2,745		123,086
Alleghany Corp.		213		134,569
Allergan PLC		4,453		853,685
Alliance Data Systems Corp.		793		189,194
Alliant Energy Corp.		8,174		350,174
Allstate Corp. (The)		4,758		478,512
Alnylam Pharmaceuticals Inc.(a)		1,326		162,660
Alphabet Inc., Class A(a)		3,965		4,884,087
Alphabet Inc., Class C, NVS(a)		4,148		5,053,052
Altria Group Inc.		24,950		1,460,074
Amazon.com Inc.(a)		5,586		11,242,998
Ameren Corp.		4,026		254,564
American Airlines Group Inc.(b)		1,891		76,548
American Electric Power Co. Inc.		6,466		463,806
American Express Co.		9,943		1,053,759
American International Group Inc.		11,734		623,897
American Tower Corp.		5,978		891,439
American Water Works Co. Inc.		3,660		320,360
Ameriprise Financial Inc.		2,013		285,765
AmerisourceBergen Corp.		2,318		208,550
AMETEK Inc.		4,087		314,536
Amgen Inc.		9,577		1,913,580
Amphenol Corp., Class A		4,758		450,012
Anadarko Petroleum Corp.		7,381		475,336
Analog Devices Inc.		5,234		517,381
Andeavor		2,257		344,847
Annaly Capital Management Inc.		15,921		169,081
ANSYS Inc.(a)		1,587		295,150
Anthem Inc.		3,538		936,615
Aon PLC		3,500		509,460
Apache Corp.		5,124		224,585
Apple Inc.		66,612		15,162,890
Applied Materials Inc.		15,279		657,303
Arch Capital Group Ltd.(a)		6,771		206,989
Archer-Daniels-Midland Co.		7,930		399,672
Arconic Inc.		5,780		129,356
Arista Networks Inc.(a)		683		204,203
Arrow Electronics Inc.(a)		1,830		141,880
Assurant Inc.		1,220		125,440
AT&T Inc.		97,145		3,102,811
Autodesk Inc.(a)		3,050		470,767
Autoliv Inc.		1,342		119,559
Automatic Data Processing Inc.		6,039		886,223
AutoZone Inc.(a)		427		327,458
AvalonBay Communities Inc.		1,830		335,421
Avery Dennison Corp.		1,952		205,311
Avnet Inc.		2,501		121,048
Axis Capital Holdings Ltd.		2,074		119,296
Baker Hughes a GE Co.		5,856		193,072
Ball Corp.		7,137		298,898
Bank of America Corp.		129,442		4,003,641
Bank of New York Mellon Corp. (The)		13,969		728,483
Baxter International Inc.		6,527		485,413
BB&T Corp.		10,371		535,766
Becton Dickinson and Co.		3,798		994,582
Berkshire Hathaway Inc., Class B(a)		16,561		3,456,612
Best Buy Co. Inc.		3,965		315,455

Security	Shares		Value
United States (continued)
Biogen Inc.(a)		2,928	$	1,035,019
BioMarin Pharmaceutical Inc.(a)		2,928		292,741
BlackRock Inc.(e)		1,586		759,789
Boeing Co. (The) .		7,686		2,634,684
Booking Holdings Inc.(a)		671		1,309,490
BorgWarner Inc.		3,233		141,508
Boston Properties Inc.		2,318		302,383
Boston Scientific Corp.(a)		19,215		683,285
Brighthouse Financial Inc.(a)		1,816		75,382
Bristol-Myers Squibb Co.		22,141		1,340,638
Broadcom Inc.		5,553		1,216,274
Brookfield Property REIT Inc., NVS		3,119		62,442
Brown-Forman Corp., Class B, NVS		3,965		207,052
Bunge Ltd.		2,135		138,732
CA Inc.		4,697		205,729
Cabot Oil &Gas Corp.		7,442		177,343
Cadence Design Systems Inc.(a)		7,076		332,855
Campbell Soup Co.		3,355		132,355
Capital One Financial Corp.		6,771		670,938
Cardinal Health Inc.		4,392		229,218
CarMax Inc.(a)		2,806		219,008
Carnival Corp.		4,209		258,811
Caterpillar Inc.		7,749		1,075,949
CBRE Group Inc., Class A(a)		4,819		235,215
CBS Corp., Class B, NVS		4,960		262,979
CDK Global Inc.		2,501		155,862
Celanese Corp., Series A		2,379		277,939
Celgene Corp.(a)		10,370		979,446
Centene Corp.(a)		2,867		419,958
CenterPoint Energy Inc.		6,405		177,995
CenturyLink Inc.		13,916		297,246
Cerner Corp.(a)		4,148		270,076
CF Industries Holdings Inc.		3,483		180,942
CH Robinson Worldwide Inc.		2,501		240,296
Charles Schwab Corp. (The)		16,592		842,708
Charter Communications Inc., Class A(a)		2,269		704,298
Chemours Co. (The)		2,569		112,008
Cheniere Energy Inc.(a)		3,416		228,633
Chevron Corp.		25,323		2,999,763
Chipotle Mexican Grill Inc.(a)(b)		366		173,916
Chubb Ltd.		5,621		760,184
Church & Dwight Co. Inc.		4,636		262,305
Cigna Corp.		3,538		666,347
Cimarex Energy Co.		1,464		123,679
Cincinnati Financial Corp.		2,318		177,721
Cintas Corp.		1,769		377,452
Cisco Systems Inc.		64,416		3,077,152
CIT Group Inc.		3,294		178,667
Citigroup Inc.		33,859		2,412,115
Citizens Financial Group Inc.		8,324		342,616
Citrix Systems Inc.(a)		2,623		299,074
Clorox Co. (The)		2,075		300,833
CME Group Inc.		4,700		821,231
CMS Energy Corp.		4,880		240,291
Coca-Cola Co. (The)		55,449		2,471,362
Cognex Corp.		3,060		164,628
Cognizant Technology Solutions Corp., Class A		8,174		641,087
Colgate-Palmolive Co.		11,041		733,233
Comcast Corp., Class A		61,854		2,287,979
Comerica Inc.		3,416		332,992

S C H E D U L E    O F    I N V E S T M E N T  S 21

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
Conagra Brands Inc.		6,710	$	246,593
Concho Resources Inc.(a)		2,569		352,338
ConocoPhillips		16,104		1,182,517
Consolidated Edison Inc.		4,392		346,661
Constellation Brands Inc., Class A		2,562		533,408
Continental Resources Inc./OK(a)(b)		1,594		105,124
Copart Inc.(a)		3,172		203,991
Corning Inc.		14,152		474,234
CoStar Group Inc.(a)		549		242,746
Costco Wholesale Corp.		6,042		1,408,571
Crown Castle International Corp.		5,429		619,069
Crown Holdings Inc.(a)(b)		2,928		125,348
CSX Corp.		11,895		882,133
Cummins Inc.		2,318		328,692
CVS Health Corp.		13,669		1,028,456
Danaher Corp.		7,991		827,388
Darden Restaurants Inc.		2,135		247,745
DaVita Inc.(a)		2,135		147,934
Deere &Co.		3,965		570,167
Dell Technologies Inc., Class V(a)		2,929		281,682
Delta Air Lines Inc.		2,338		136,726
DENTSPLY SIRONA Inc.		3,416		136,367
Devon Energy Corp.		7,144		306,692
Diamondback Energy Inc.		1,346		162,974
Digital Realty Trust Inc.(b)		2,928		363,892
Discover Financial Services		5,551		433,644
Discovery Inc., Class A(a)(b)		2,074		57,719
Discovery Inc., Class C, NVS(a)		5,385		138,071
DISH Network Corp., Class A(a)		3,294		116,443
Dollar General Corp.		4,026		433,721
Dollar Tree Inc.(a)		3,233		260,289
Dominion Energy Inc.		8,303		587,603
Domino’s Pizza Inc.		610		182,122
Dover Corp.		2,745		235,713
DowDuPont Inc.		30,051		2,107,477
DR Horton Inc.		5,368		238,930
DTE Energy Co.		2,623		291,520
Duke Energy Corp.		8,967		728,479
Duke Realty Corp.		7,564		215,498
DXC Technology Co.		4,197		382,305
Eastman Chemical Co.		2,318		224,916
Eaton Corp. PLC		5,978		497,011
Eaton Vance Corp., NVS		2,812		148,277
eBay Inc.(a)		13,603		470,800
Ecolab Inc.		3,843		578,295
Edison International		4,514		296,705
Edwards Lifesciences Corp.(a)		3,050		439,932
Electronic Arts Inc.(a)		4,331		491,179
Eli Lilly &Co.		12,932		1,366,266
Emerson Electric Co.		8,296		636,552
Entergy Corp.		2,745		229,455
EOG Resources Inc.		7,381		872,656
EQT Corp.		3,861		196,988
Equifax Inc.		1,708		228,821
Equinix Inc.		1,098		478,871
Equity Residential		5,002		338,885
Essex Property Trust Inc.		1,037		255,392
Estee Lauder Companies Inc. (The), Class A		3,050		427,366
Everest Re Group Ltd.		707		157,675
Eversource Energy		4,758		297,042

Security	Shares		Value
United States (continued)
Exelon Corp.		12,078	$	527,929
Expedia Group Inc.		1,769		230,855
Expeditors International of Washington Inc.		3,538		259,265
Express Scripts Holding Co.(a)		7,507		660,766
Exxon Mobil Corp.		57,279		4,592,057
F5 Networks Inc.(a)		1,281		242,263
Facebook Inc., Class A(a)		32,150		5,649,719
Fastenal Co.		4,209		245,637
Federal Realty Investment Trust		1,342		175,279
FedEx Corp.		3,416		833,333
Fidelity National Financial Inc.		4,148		166,335
Fidelity National Information Services Inc.		4,392		475,083
Fifth Third Bancorp.		11,956		351,865
First Data Corp., Class A(a)		7,686		197,684
First Republic Bank/CA		2,684		272,668
FirstEnergy Corp.		6,344		237,139
Fiserv Inc.(a)		7,076		566,575
FleetCor Technologies Inc.(a)		1,282		274,015
Flex Ltd.(a)		10,553		145,526
FLIR Systems Inc.		3,050		191,357
Flowserve Corp.		2,745		143,069
Fluor Corp.		2,623		150,586
FMC Corp.		2,257		192,861
Ford Motor Co.		50,427		478,048
Fortive Corp.		4,473		375,643
Franklin Resources Inc.		5,307		168,444
Freeport-McMoRan Inc.		18,867		265,081
Gap Inc. (The)		3,599		109,230
Garmin Ltd.		2,379		162,105
Gartner Inc.(a)(b)		1,220		182,707
General Dynamics Corp.		3,599		696,047
General Electric Co.		117,791		1,524,216
General Mills Inc.		7,869		362,053
General Motors Co.		17,263		622,331
Genuine Parts Co.		2,501		249,725
Gilead Sciences Inc.		17,141		1,298,088
Global Payments Inc.		2,623		326,773
Goldman Sachs Group Inc. (The)		4,697		1,116,994
Goodyear Tire & Rubber Co. (The)		4,770		108,231
H&R Block Inc.		3,416		92,437
Halliburton Co.		11,468		457,459
Hanesbrands Inc.		5,551		97,365
Harley-Davidson Inc.		2,501		106,593
Harris Corp.		1,999		324,857
Hartford Financial Services Group Inc. (The)		5,673		285,749
Hasbro Inc.		1,709		169,721
HCA Healthcare Inc.		3,965		531,746
HCP Inc.		6,771		183,020
Helmerich & Payne Inc.		1,896		124,321
Henry Schein Inc.(a)(b)		2,392		185,811
Hershey Co. (The)		2,379		239,137
Hess Corp.		3,904		262,895
Hewlett Packard Enterprise Co.		20,748		342,964
Hilton Worldwide Holdings Inc.		3,662		284,244
HollyFrontier Corp.		2,989		222,740
Hologic Inc.(a)		4,299		170,928
Home Depot Inc. (The)		15,250		3,061,742
Honeywell International Inc.		9,516		1,513,615
Hormel Foods Corp.		4,819		188,664
Host Hotels & Resorts Inc.(b)		10,004		215,386

22 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
HP Inc.		23,851	$	587,927
Humana Inc.		2,074		691,181
Huntington Bancshares Inc./OH		16,874		273,528
IAC/InterActiveCorp.(a)		1,059		208,835
IDEXX Laboratories Inc.(a)		1,098		278,936
IHS Markit Ltd.(a)		5,429		298,595
Illinois Tool Works Inc.		4,453		618,433
Illumina Inc.(a)		2,135		757,562
Incyte Corp.(a)		2,623		193,866
Ingersoll-Rand PLC		3,904		395,436
Intel Corp.		62,363		3,020,240
Intercontinental Exchange Inc.		8,174		623,104
International Business Machines Corp.		11,840		1,734,323
International Flavors & Fragrances Inc.		1,403		182,797
International Paper Co.		5,368		274,520
Interpublic Group of Companies Inc. (The)		6,771		158,103
Intuit Inc.		3,538		776,485
Intuitive Surgical Inc.(a)		1,708		956,480
Invesco Ltd.		6,405		154,361
IPG Photonics Corp.(a)		549		96,339
Iron Mountain Inc.		4,167		150,429
Jacobs Engineering Group Inc.		2,440		177,364
Jazz Pharmaceuticals PLC(a)		976		166,818
JB Hunt Transport Services Inc.		1,586		191,510
Jefferies Financial Group Inc.		6,100		141,642
JM Smucker Co. (The)		1,891		195,492
Johnson & Johnson		35,397		4,767,622
Johnson Controls International PLC		13,486		509,366
JPMorgan Chase &Co.		46,360		5,311,929
Juniper Networks Inc.		5,856		166,486
Kansas City Southern		1,891		219,280
Kellogg Co.		3,843		275,889
KeyCorp.		16,470		347,023
Keysight Technologies Inc.(a)		2,640		171,310
Kimberly-Clark Corp.		5,002		577,931
Kimco Realty Corp.		7,159		122,490
Kinder Morgan Inc./DE		30,439		538,770
KLA-Tencor Corp.		2,434		282,855
Kohl’s Corp.		2,867		226,808
Kraft Heinz Co. (The)		8,784		511,844
Kroger Co. (The)		12,322		388,143
L Brands Inc.		3,477		91,897
L3 Technologies Inc.		1,342		286,812
Laboratory Corp. of America Holdings(a)		1,647		284,717
Lam Research Corp.		2,542		439,995
Las Vegas Sands Corp.		5,429		355,165
Leggett & Platt Inc.		4,453		202,344
Lennar Corp., Class A		4,157		214,792
Liberty Global PLC, Series A(a)		3,782		101,395
Liberty Global PLC, Series C,NVS(a)		6,893		178,460
Liberty Media Corp.-Liberty SiriusXM, Class C, NVS(a)		4,697		220,947
Liberty Property Trust		3,111		136,106
Lincoln National Corp.		3,416		224,021
LKQ Corp.(a)		5,246		181,092
Lockheed Martin Corp.		3,381		1,083,306
Loews Corp.		4,880		245,513
Lowe’s Companies Inc.		11,102		1,207,342
Lululemon Athletica Inc.(a)		1,708		264,620
LyondellBasell Industries NV, Class A		4,636		522,848
M&T Bank Corp.		2,074		367,409

Security	Shares		Value
United States (continued)
Macerich Co. (The)		1,952	$	114,660
Macy’s Inc.		4,331		158,298
ManpowerGroup Inc.		1,220		114,351
Marathon Oil Corp.		12,445		267,692
Marathon Petroleum Corp.		7,320		602,363
Markel Corp.(a)		244		294,947
Marriott International Inc./MD, Class A		4,583		579,612
Marsh & McLennan Companies Inc.		6,711		567,952
Martin Marietta Materials Inc.		976		193,951
Marvell Technology Group Ltd.		8,389		173,485
Masco Corp.		5,612		213,088
Mastercard Inc., Class A		12,505		2,695,578
Maxim Integrated Products Inc.		4,575		276,650
McCormick &Co. Inc./MD, NVS		2,501		312,325
McDonald’s Corp.		10,614		1,721,909
McKesson Corp.		2,928		376,980
Medtronic PLC		17,263		1,664,326
MercadoLibre Inc.(b)		549		187,983
Merck &Co. Inc.		35,722		2,450,172
MetLife Inc.		12,206		560,133
MGM Resorts International		7,137		206,902
Michael Kors Holdings Ltd.(a)		2,135		155,044
Microchip Technology Inc.(b)		3,965		341,109
Micron Technology Inc.(a)		15,662		822,568
Microsoft Corp.		96,746		10,867,478
Mohawk Industries Inc.(a)		1,098		210,366
Molson Coors Brewing Co., Class B		2,623		175,059
Mondelez International Inc., Class A		20,252		865,165
Monster Beverage Corp.(a)		6,161		375,143
Moody’s Corp.		2,867		510,383
Morgan Stanley		19,581		956,140
Mosaic Co. (The)		4,941		154,505
Motorola Solutions Inc.		2,623		336,688
Mylan NV(a)		6,771		264,949
Nasdaq Inc.		2,135		203,764
National Oilwell Varco Inc.		5,368		252,672
Nektar Therapeutics(a)		2,135		141,956
NetApp Inc.		3,660		317,725
Netflix Inc.(a)		5,917		2,175,563
New York Community Bancorp. Inc.		9,699		104,458
Newell Brands Inc.		7,954		172,761
Newfield Exploration Co.(a)		3,086		84,186
Newmont Mining Corp.		7,503		232,818
News Corp., Class A, NVS		5,981		78,172
NextEra Energy Inc.		6,240		1,061,424
Nielsen Holdings PLC		5,686		147,836
NIKE Inc., Class B		17,141		1,408,990
Noble Energy Inc.		6,588		195,795
Nordstrom Inc.		2,135		134,185
Norfolk Southern Corp.		3,965		689,276
Northern Trust Corp.		3,172		340,863
Northrop Grumman Corp.		2,318		691,900
Nucor Corp.		4,453		278,312
NVIDIA Corp.		7,869		2,208,671
O’Reilly Automotive Inc.(a)		1,161		389,423
Occidental Petroleum Corp.		10,065		803,892
Omnicom Group Inc.		3,477		241,026
ON Semiconductor Corp.(a)		6,649		141,890
ONEOK Inc.		5,309		349,916
Oracle Corp.		40,575		1,971,133

S C H E D U L E    O F    I N V E S T M E N T  S 23

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
PACCAR Inc.		5,002	$	342,237
Palo Alto Networks Inc.(a)		1,525		352,504
Parker-Hannifin Corp.		2,196		385,618
Paychex Inc.		4,636		339,587
PayPal Holdings Inc.(a)		15,433		1,424,929
Pentair PLC		3,111		135,266
People’s United Financial Inc.		8,784		162,592
PepsiCo Inc.		19,219		2,152,720
Perrigo Co. PLC		2,074		158,682
Pfizer Inc.		73,993		3,072,189
PG&E Corp.		6,649		307,051
Philip Morris International Inc.		20,557		1,601,185
Phillips 66		6,161		730,140
Pinnacle West Capital Corp.		2,257		177,287
Pioneer Natural Resources Co.		2,318		404,955
Plains GP Holdings LP, Class A		2,318		59,758
PNC Financial Services Group Inc. (The)(e)		5,734		823,058
PPG Industries Inc.		3,782		418,062
PPL Corp.		9,412		279,913
Praxair Inc.		3,660		578,975
Principal Financial Group Inc.		4,397		242,670
Procter &Gamble Co. (The)		33,901		2,812,088
Progressive Corp. (The)		8,663		585,012
Prologis Inc.		7,442		499,954
Prudential Financial Inc.		5,795		569,359
Public Service Enterprise Group Inc.		7,503		392,782
Public Storage		2,196		466,826
PulteGroup Inc.		5,490		153,446
PVH Corp.		1,220		174,655
Qorvo Inc.(a)		2,270		181,804
QUALCOMM Inc.		19,764		1,357,984
Quest Diagnostics Inc.		2,074		228,099
Qurate Retail Inc., Class A(a)		7,320		152,183
Ralph Lauren Corp.		976		129,623
Raytheon Co.		4,087		815,111
Realty Income Corp.		4,087		239,376
Red Hat Inc.(a)		3,152		465,645
Regency Centers Corp.		3,111		205,419
Regeneron Pharmaceuticals Inc.(a)		1,098		446,611
Regions Financial Corp.		19,703		383,420
Reinsurance Group of America Inc.		819		116,994
RenaissanceRe Holdings Ltd.		641		85,227
Republic Services Inc.		4,148		304,297
ResMed Inc.		1,774		197,641
Robert Half International Inc.		2,562		200,297
Rockwell Automation Inc.		2,074		375,311
Rockwell Collins Inc.		2,562		348,304
Roper Technologies Inc.		1,647		491,415
Ross Stores Inc.		5,490		525,832
Royal Caribbean Cruises Ltd.		2,318		284,140
S&P Global Inc.		3,843		795,693
salesforce.com Inc.(a)		8,845		1,350,455
SBA Communications Corp.(a)		1,952		303,009
Schlumberger Ltd.		17,835		1,126,459
Seagate Technology PLC		3,538		189,425
Seattle Genetics Inc.(a)(b)		1,733		133,025
SEI Investments Co.		3,294		207,786
Sempra Energy		3,421		397,110
ServiceNow Inc.(a)		2,562		503,074
Sherwin-Williams Co. (The)		1,159		528,017

Security	Shares		Value
United States (continued)
Simon Property Group Inc.		4,151	$	759,758
Sirius XM Holdings Inc.(b)		33,123		235,173
Skyworks Solutions Inc.		2,806		256,188
SL Green Realty Corp.		1,551		161,924
Southern Co. (The)		13,115		574,175
Southwest Airlines Co.		2,074		127,136
Spirit AeroSystems Holdings Inc., Class A		1,781		152,276
Splunk Inc.(a)		2,257		289,235
Sprint Corp.(a)(b)		14,097		86,133
Square Inc., Class A(a)		3,660		324,422
SS&C Technologies Holdings Inc.		2,623		155,649
Stanley Black & Decker Inc.		2,318		325,749
Starbucks Corp.		18,855		1,007,800
State Street Corp.		5,191		451,150
Stryker Corp.		4,392		744,137
SunTrust Banks Inc.		6,649		489,100
SVB Financial Group(a)		793		255,941
Symantec Corp.		9,291		187,307
Synchrony Financial		9,764		309,226
Synopsys Inc.(a)		3,416		348,910
Sysco Corp.		7,320		547,682
T-Mobile U.S. Inc.(a)		4,514		298,105
T Rowe Price Group Inc.		3,538		410,019
Take-Two Interactive Software Inc.(a)		1,574		210,223
Tapestry Inc.		4,148		210,262
Targa Resources Corp.		4,148		228,430
Target Corp.		7,198		629,825
TD Ameritrade Holding Corp.		3,965		232,230
TE Connectivity Ltd.		4,819		441,806
TechnipFMC PLC		7,381		226,080
Tesla Inc.(a)(b)		1,830		552,038
Texas Instruments Inc.		12,510		1,406,124
Textron Inc.		4,453		307,391
Thermo Fisher Scientific Inc.		5,307		1,268,904
Tiffany &Co.		1,647		202,005
TJX Companies Inc. (The)		8,418		925,727
Toll Brothers Inc.		3,782		137,022
Torchmark Corp.		2,641		232,197
Total System Services Inc.		3,050		296,277
Tractor Supply Co.		2,074		183,093
TransDigm Group Inc.		793		277,550
TransUnion		2,501		188,325
Travelers Companies Inc. (The)		3,088		406,381
Trimble Inc.(a)		4,392		184,903
TripAdvisor Inc.(a)(b)		1,952		106,013
Twenty-First Century Fox Inc., Class A, NVS		16,714		758,816
Twenty-First Century Fox Inc., Class B		3,545		159,171
Twitter Inc.(a)(b)		9,394		330,481
Tyson Foods Inc., Class A		4,392		275,862
U.S. Bancorp		21,533		1,165,151
UDR Inc.		4,819		192,615
Ulta Salon Cosmetics & Fragrance Inc.(a)		915		237,900
Under Armour Inc., Class A(a)		2,745		56,135
Under Armour Inc., Class C,NVS(a)		2,757		52,300
Union Pacific Corp.		10,614		1,598,681
United Parcel Service Inc., Class B		9,150		1,124,352
United Rentals Inc.(a)		1,342		209,178
United Technologies Corp.		10,004		1,317,527
UnitedHealth Group Inc.		12,627		3,389,844
Universal Health Services Inc., Class B		1,342		174,675

24 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
Unum Group		3,599	$	132,731
Valero Energy Corp.		6,222		733,449
Varian Medical Systems Inc.(a)		1,647		184,497
Veeva Systems Inc., Class A(a)		1,823		190,248
Ventas Inc.		5,012		300,068
VEREIT Inc.		22,387		175,066
VeriSign Inc.(a)		1,952		309,607
Verisk Analytics Inc.(a)		2,501		297,844
Verizon Communications Inc.		55,336		3,008,618
Vertex Pharmaceuticals Inc.(a)		3,660		674,904
VF Corp.		4,636		427,115
Viacom Inc., Class B, NVS		4,880		142,886
Visa Inc., Class A		24,034		3,530,354
VMware Inc., Class A(a)		1,159		177,628
Vornado Realty Trust		2,562		197,274
Vulcan Materials Co.		2,135		236,558
Walmart Inc.		19,891		1,906,751
Walgreens Boots Alliance Inc.		11,590		794,610
Walt Disney Co. (The)		19,947		2,234,463
Waste Management Inc.		5,917		537,855
Waters Corp.(a)		1,403		265,840
WEC Energy Group Inc.		4,943		334,048
Wells Fargo &Co.		62,281		3,642,193
Welltower Inc.		4,941		329,614
Western Digital Corp.		4,103		259,474
Western Union Co. (The)		8,235		155,806
WestRock Co.		4,467		246,042
Weyerhaeuser Co.		10,614		368,412
Whirlpool Corp.		1,159		144,852
Williams Companies Inc. (The)		16,375		484,536
Willis Towers Watson PLC		1,769		260,521
Workday Inc., Class A(a)		1,892		292,390
Worldpay Inc., Class A(a)		4,009		390,437
WR Berkley Corp.		2,318		181,407
WW Grainger Inc.		785		277,945
Wynn Resorts Ltd.		1,344		199,369
Xcel Energy Inc.		7,076		340,002
Xerox Corp.		3,157		87,954
Xilinx Inc.		3,599		280,110
XL Group Ltd.		4,087		234,553
XPO Logistics Inc.(a)		1,591		169,442
Xylem Inc./NY		2,745		208,373
Yum! Brands Inc.		4,758		413,423
Zillow Group Inc., Class C,NVS(a)(b)		2,520		122,598
Zimmer Biomet Holdings Inc.		2,623		324,281

Security	Shares		Value
United States (continued)
Zoetis Inc.		7,015	$	635,559
				348,807,006
Total Common Stocks — 99.1% (Cost: $476,597,384)				561,402,915
Preferred Stocks
Germany — 0.2%
Henkel AG & Co. KGaA, Preference Shares, NVS		2,623		335,552
Porsche Automobil Holding SE, Preference Shares, NVS		2,627		166,641
Sartorius AG, Preference Shares, NVS		671		122,103
Volkswagen AG, Preference Shares, NVS		2,928		479,803
				1,104,099
Total Preferred Stocks — 0.2% (Cost: $1,176,103)				1,104,099
Short-Term Investments
Money Market Funds — 1.2%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(e)(f)(g)		5,240,465		5,242,037
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(e)(f)		1,226,612		1,226,612
				6,468,649
Total Short-Term Investments — 1.2% (Cost: $6,467,583)				6,468,649
Total Investments in Securities — 100.5% (Cost: $484,241,070)				568,975,663
Other Assets, Less Liabilities — (0.5)%				(2,733,059	)
Net Assets — 100.0%			$	566,242,604

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(e)  Affiliate of the Fund.

^(f)  Annualized 7-day yield as of period-end.

^(g)  All or a portion of this security was purchased with cash collateral received from loaned securities.

S C H E D U L E    O F    I N V E S T M E N T  S 25

Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at		Shares			Shares			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17		Purchased			Sold			08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		7,849,531		—			(2,609,066	)(b)		5,240,465	$	5,242,037	$	48,252	(c)	$	(551)		$	(443	)
BlackRock Cash Funds: Treasury, SL Agency Shares		287,312		939,300	(b)		—			1,226,612		1,226,612		13,196			—			—
BlackRock Inc.		1,612		130			(156	)		1,586		759,789		13,166			34,904			66,870
PNC Financial Services Group Inc. (The)		6,510		749			(1,525	)		5,734		823,058		19,874			48,924			74,454
											$	8,051,496	$	94,488		$	83,277		$	140,881

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Net of purchases and sales.

^(c)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI EAFE E-Mini		14		09/21/18	$	1,371	$	(8,855	)
S&P 500 E-Mini Index		15		09/21/18		2,177		60,271
							$	51,416

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	60,271
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	8,855

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss)from:
Futures contracts	$	196,863
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	51,416

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	2,463,971

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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Schedule of Investments  (continued) August 31, 2018 iShares^® MSCI World ETF

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	561,093,160		$	309,563	$	192	$	561,402,915
Preferred Stocks		1,104,099			—		—		1,104,099
Money Market Funds		6,468,649			—		—		6,468,649
	$	568,665,908		$	309,563	$	192	$	568,975,663
Derivative financial instruments(a)
Assets
Futures Contracts	$	60,271		$	—	$	—	$	60,271
Liabilities
Futures Contracts		(8,855	)		—		—		(8,855	)
	$	51,416		$	—	$	—	$	51,416

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

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T  S 27

Statements of Assets and Liabilities

August 31, 2018

	iShares MSCI Frontier 100 ETF			iShares MSCI World ETF
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	523,050,807		$	560,924,167
Affiliated(c)		2,635,674			8,051,496
Cash		14,237,465			—
Cash pledged:
Futures contracts		—			167,000
Foreign currency, at value(d)		12,444,414			1,018,472
Receivables:
Investments sold		12,563,648			335,517
Securities lending income — Affiliated		1,539			3,453
Dividends		214,870			1,159,419
Tax reclaims		—			261,542
Unrealized appreciation on:
Forward foreign currency exchange contracts		7,963			—
Total assets		565,156,380			571,921,066
LIABILITIES
Collateral on securities loaned, at value		2,634,696			5,241,933
Deferred foreign capital gain tax		6,179			—
Payables:
Investments purchased		25,192,195			312,666
Variation margin on futures contracts		—			9,768
Bank borrowings		13,504,667			—
Investment advisory fees		365,203			114,095
Unrealized depreciation on:
Forward foreign currency exchange contracts		7,965			—
Total liabilities		41,710,905			5,678,462
NET ASSETS	$	523,445,475		$	566,242,604
NET ASSETS CONSIST OF:
Paid-in capital	$	632,835,133		$	484,336,444
Undistributed net investment income		1,425,283			1,827,733
Accumulated net realized loss		(151,335,958	)		(4,706,803	)
Net unrealized appreciation		40,521,017			84,785,230
NET ASSETS	$	523,445,475		$	566,242,604
Shares outstanding		18,500,000			6,200,000
Net asset value	$	28.29		$	91.33
Shares authorized		500 million			500 million
Par value	$	0.001		$	0.001
(a) Securities loaned, at value	$	2,694,700		$	5,062,020
(b) Investments, at cost — Unaffiliated	$	482,520,146		$	476,585,729
(c) Investments, at cost — Affiliated	$	2,635,361		$	7,655,341
(d) Foreign currency, at cost	$	12,446,690		$	1,022,151

See notes to financial statements.

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Statements of Operations

Year Ended August 31, 2018

	iShares MSCI Frontier 100 ETF			iShares MSCI World ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	24,632,478		$	13,286,296
Dividends — Affiliated		44,827			46,236
Interest — Unaffiliated		4,742			—
Securities lending income — Affiliated — net		18,654			48,252
Foreign taxes withheld		(1,200,941	)		(627,210	)
Other foreign taxes		—			(252	)
Total investment income		23,499,760			12,753,322
EXPENSES
Investment advisory fees		5,304,003			1,314,938
Commitment fees		8,933			—
Proxy fees		64			49
Interest expense		13,368			—
Pakistan income taxes		144,981			—
Total expenses		5,471,349			1,314,987
Net investment income		18,028,411			11,438,335
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated(a)		(33,558,001	)		(1,008,219	)
Investments — Affiliated		46			4,482
In-kind redemptions — Unaffiliated		13,732,096			15,526,409
In-kind redemptions — Affiliated		—			78,795
Futures contracts		—			196,863
Foreign currency transactions		(865,143	)		(69,577	)
Net realized gain (loss)		(20,691,002	)		14,728,753
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated(b)		(22,987,664	)		41,821,386
Investments — Affiliated		(350	)		140,881
Futures contracts		—			51,416
Forward foreign currency exchange contracts		(2	)		—
Foreign currency translations		(4,471	)		(13,645	)
Net change in unrealized appreciation (depreciation)		(22,992,487	)		42,000,038
Net realized and unrealized gain (loss)		(43,683,489	)		56,728,791
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(25,655,078	)	$	68,167,126
(a) Net of foreign capital gain tax of (Includes accrual adjustment for foreign capital gain taxes of $ 2,151,590)	$	(1,987,473	)	$	—
(b) Net of deferred foreign capital gain tax of	$	(8,839,023	)	$	—

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 29

Statements of Changes in Net Assets

	iShares MSCI Frontier 100 ETF						iShares MSCI World ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	18,028,411		$	14,581,528		$	11,438,335		$	8,910,122
Net realized gain (loss)		(20,691,002	)		(15,129,495	)		14,728,753			3,197,908
Net change in unrealized appreciation (depreciation)		(22,992,487	)		133,152,000			42,000,038			48,995,699
Net increase (decrease) in net assets resulting from operations		(25,655,078	)		132,604,033			68,167,126			61,103,729
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(24,308,098	)		(6,259,265	)		(11,541,113	)		(8,262,836	)
Decrease in net assets resulting from distributions to shareholders		(24,308,098	)		(6,259,265	)		(11,541,113	)		(8,262,836	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(54,217,461	)		93,558,846			(152,528	)		168,324,776
NET ASSETS
Total increase (decrease) in net assets		(104,180,637	)		219,903,614			56,473,485			221,165,669
Beginning of year		627,626,112			407,722,498			509,769,119			288,603,450
End of year	$	523,445,475		$	627,626,112		$	566,242,604		$	509,769,119
Undistributed net investment income included in net assets at end of year	$	1,425,283		$	4,578,443		$	1,827,733		$	1,667,798

See notes to financial statements.

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Financial Highlights

(For a share outstanding throughout each period)

	iShares MSCI Frontier 100 ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	30.62		$	24.20		$	26.20		$	37.79		$	30.12
Net investment income(a)		0.87			0.72			0.76			0.77			1.09
Net realized and unrealized gain (loss)(b)		(1.99	)		6.00			(2.17	)		(8.78	)		7.47
Net increase (decrease) from investment operations		(1.12	)		6.72			(1.41	)		(8.01	)		8.56
Distributions(c)
From net investment income		(1.21	)		(0.30	)		(0.59	)		(0.76	)		(0.89	)
From net realized gain		—			—			—			(2.82	)		—
Total distributions		(1.21	)		(0.30	)		(0.59	)		(3.58	)		(0.89	)
Net asset value, end of year	$	28.29		$	30.62		$	24.20		$	26.20		$	37.79
Total Return
Based on net asset value		(3.92	)%		27.91	%		(5.45	)%		(21.70	)%		28.56	%
Ratios to Average Net Assets
Total expenses		0.81	%		0.80	%		0.79	%		0.79	%		0.79	%
Net investment income		2.69	%		2.65	%		3.03	%		2.43	%		3.07	%
Supplemental Data
Net assets, end of year (000)	$	523,445		$	627,626		$	407,722		$	502,993		$	799,349
Portfolio turnover rate(d)		35	%		32	%		20	%		47	%		61	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 31

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI World ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	82.22		$	72.15		$	68.95		$	73.36		$	61.76
Net investment income(a)		1.84			1.74			1.62			1.64			1.81
Net realized and unrealized gain (loss)(b)		9.15			9.90			3.16			(4.49	)		11.16
Net increase (decrease) from investment operations		10.99			11.64			4.78			(2.85	)		12.97
Distributions(c)
From net investment income		(1.88	)		(1.57	)		(1.58	)		(1.56	)		(1.37	)
Total distributions		(1.88	)		(1.57	)		(1.58	)		(1.56	)		(1.37	)
Net asset value, end of year	$	91.33		$	82.22		$	72.15		$	68.95		$	73.36
Total Return
Based on net asset value		13.46	%		16.29	%		7.05	%		(3.97	)%		21.07	%
Ratios to Average Net Assets
Total expenses		0.24	%		0.24	%		0.24	%		0.24	%		0.24	%
Net investment income		2.09	%		2.25	%		2.34	%		2.25	%		2.57	%
Supplemental Data
Net assets, end of year (000)	$	566,243		$	509,769		$	288,603		$	206,842		$	168,728
Portfolio turnover rate(d)		3	%		3	%		5	%		5	%		5	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Notes to Financial Statements

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

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

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

N O T E S    T O    F I N A N C I A L     S T A T E M E N T S 33

Notes to Financial Statements  (continued)

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

• Forward foreign currency exchange contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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

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Notes to Financial Statements  (continued)

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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral   Received(a)		Non-Cash Collateral Received		Net Amount
MSCI Frontier 100
Credit Suisse Securities (USA) LLC	$	31,850	$	28,886	$	—	$	(2,964	)(b)
JPMorgan Securities LLC		336,700		314,617		—		(22,083	)(b)
Merrill Lynch, Pierce, Fenner & Smith		743,880		674,646		—		(69,234	)(b)
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		1,466,288		1,466,288		—		—
National Financial Services LLC		114,632		107,065		—		(7,567	)(b)
SG Americas Securities LLC		1,350		1,350		—		—
	$	2,694,700	$	2,592,852	$	—	$	(101,848	)
MSCI World
Barclays Bank PLC	$	253,115	$	253,115	$	—	$	—
BNP Paribas Securities Corp.		93,121		93,121		—		—
Citigroup Global Markets Inc.		345,294		345,294		—		—
Credit Suisse Securities (USA) LLC		270,682		270,682		—		—
Goldman Sachs & Co.		899,697		899,697		—		—
HSBC Bank PLC		226,271		226,271		—		—
Jefferies LLC		341,109		341,109		—		—
JPMorgan Securities LLC		565,718		565,718		—		—
Macquarie Bank Limited		54,680		54,680		—		—
Merrill Lynch, Pierce, Fenner & Smith		568,222		568,222		—		—
Morgan Stanley & Co. LLC		726,760		726,760		—		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		173,916		173,916		—		—
Nomura Securities International Inc.		37,993		37,993		—		—
State Street Bank & Trust Company		324,467		324,467		—		—
Wells Fargo Bank, National Association		2,009		2,009		—		—
Wells Fargo Securities LLC		178,966		178,966		—		—
	$	5,062,020	$	5,062,020	$	—	$	—

^(a)  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.

^(b)  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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

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Notes to Financial Statements  (continued)

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

Forward Foreign Currency Exchange Contracts: A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency against another currency at an agreed upon price and quantity. The 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 in the statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a contract changes unfavorably due to movements in the value of the referenced foreign currencies. A fund’s 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 fund.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help mitigate its counterparty risk, a fund may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a fund and a counterparty that governs certain OTC derivatives 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, insolvency, or other events.

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 a fund and the counterparty. Except for NDFs, the forward foreign currency exchange contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as cash pledged as collateral for OTC derivatives on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as affiliated investments at value and as a liability for cash received as collateral on OTC derivatives. To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, each Fund bears the risk of loss from counterparty non-performance. Each Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, each Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the statement of assets and liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, 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

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Notes to Financial Statements  (continued)

Distributor: 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.

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid   to BTC
MSCI Frontier 100	$	5,779
MSCI World		13,524

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:

iShares ETF	Purchases		Sales
MSCI Frontier 100	$	—	$	4,100,985
MSCI World		2,418,094		2,278,151

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 shown as dividends – affiliated in the statement of operations.

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
MSCI Frontier 100	$	230,130,386	$	267,808,351
MSCI World		25,124,075		15,848,118

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind   Sales
MSCI Frontier 100	$	19,827,784	$	33,951,008
MSCI World		43,036,221		51,824,681

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Notes to Financial Statements   (continued)

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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. As of August 31, 2018, the following permanent differences attributable to foreign currency transactions, passive foreign investment companies, the characterization of corporate actions, realized gains (losses) from in-kind redemptions and the characterization of expenses, were reclassified to the following accounts:

iShares ETF	Paid-in Capital		Undistributed (Distributions in Excess of) Net Investment Income		Accumulated     Net Realized     Gain (Loss)
MSCI Frontier 100	$	13,077,871	$	3,126,527	$	(16,204,398)
MSCI World		15,115,667		262,713		(15,378,380)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
MSCI Frontier 100 Ordinary income	$	24,308,098	$	6,259,265
MSCI World Ordinary income	$	11,541,113	$	8,262,836

As of August 31, 2018, 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
MSCI Frontier 100	$	1,739,116	$	(125,262,256)	$	14,133,482	$	(109,389,658)
MSCI World		2,313,319		(2,981,594)		82,574,435		81,906,160

^(a)  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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the characterization of corporate actions.

As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:

iShares ETF	Non-Expiring
MSCI Frontier 100	$	125,262,256
MSCI World		2,981,594

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized     Appreciation     (Depreciation)
MSCI Frontier 100	$	511,543,044	$	100,625,153	$	(86,481,716)	$	14,143,437
MSCI World		486,400,449		111,761,828		(29,186,614)		82,575,214

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Notes to Financial Statements  (continued)

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9. LINE OF CREDIT

The iShares MSCI Frontier 100 ETF, along with certain other iShares funds, is a party to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. 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, 2018, the maximum amount borrowed, the average borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

iShares ETF	Maximum Amount Borrowed		Average Borrowing		Weighted Average Interest Rates
MSCI Frontier 100		$13,500,000		$373,973		2.91	%

At a meeting held on September 12-13, 2018, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $300 million and (ii) extending the expiration date to October 23, 2019. These changes to the credit agreement are expected to be effective on or around October 25, 2018.

10. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

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Notes to Financial Statements  (continued)

Concentration Risk: 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.

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

11. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Frontier 100
Shares sold		3,100,000		$	105,659,783			4,500,000		$	117,275,876
Shares redeemed		(5,100,000	)		(159,877,244	)		(850,000	)		(23,717,030	)
Net increase (decrease)		(2,000,000	)	$	(54,217,461	)		3,650,000		$	93,558,846
MSCI World
Shares sold		600,000		$	53,126,579			2,600,000		$	196,779,133
Shares redeemed		(600,000	)		(53,279,107	)		(400,000	)		(28,454,357	)
Net increase (decrease)		—		$	(152,528	)		2,200,000		$	168,324,776

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 shares sold in the table above.

12. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

13. 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 additional disclosure in the financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of iShares MSCI Frontier 100 ETF and iShares MSCI World ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares MSCI Frontier 100 ETF and iShares MSCI World ETF (two of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information  (unaudited)

For corporate shareholders, the percentage of ordinary income distributions paid during the fiscal year ended August 31, 2018 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends-Received Deduction
MSCI World		48.92	%

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend     Income
MSCI Frontier 100	$	9,816,050
MSCI World		12,561,131

For the fiscal year ended August 31, 2018, the iShares MSCI Frontier 100 ETF earned foreign source income and paid foreign taxes which it intends to pass through to its shareholders:

iShares ETF	Foreign Source     Income Earned
MSCI Frontier 100	$	24,632,478

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Board Review and Approval of Investment Advisory Contract

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates

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Board Review and Approval of Investment Advisory Contract  (continued)

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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

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. At a meeting on May 11, 2018,

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Board Review and Approval of Investment Advisory Contract  (continued)

a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

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Board Review and Approval of Investment Advisory Contract  (continued)

including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those 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 rate 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 acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information  (unaudited)

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 Frontier 100	$	1.206139	$	—	$	—	$	1.206139		100	%		—	%		—	%		100	%
MSCI World		1.868304		—		0.010149		1.878453		99			—			1			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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.

S U P P L E M E N T A L    I N F O R M A T I O  N 47

Supplemental Information  (unaudited) (continued)

iShares MSCI Frontier 100 ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		7		0.51
Greater than 2.5% and Less than 3.0%		18		1.30
Greater than 2.0% and Less than 2.5%		70		5.06
Greater than 1.5% and Less than 2.0%		220		15.90
Greater than 1.0% and Less than 1.5%		234		16.90
Greater than 0.5% and Less than 1.0%		180		13.01
Greater than 0.0% and Less than 0.5%		122		8.82
At NAV		2		0.14
Less than 0.0% and Greater than –0.5%		119		8.60
Less than –0.5% and Greater than –1.0%		156		11.27
Less than –1.0% and Greater than –1.5%		124		8.96
Less than –1.5% and Greater than –2.0%		67		4.84
Less than –2.0% and Greater than –2.5%		40		2.89
Less than –2.5% and Greater than –3.0%		17		1.23
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%		1		0.07
Less than –6.0%		1		0.07
		1,384		100.00	%

iShares MSCI World ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		2		0.14	%
Greater than 2.0% and Less than 2.5%		37		2.67
Greater than 1.5% and Less than 2.0%		37		2.67
Greater than 1.0% and Less than 1.5%		43		3.11
Greater than 0.5% and Less than 1.0%		158		11.42
Greater than 0.0% and Less than 0.5%		853		61.64
At NAV		11		0.79
Less than 0.0% and Greater than –0.5%		227		16.41
Less than –0.5% and Greater than –1.0%		13		0.94
Less than –1.0% and Greater than –1.5%		2		0.14
Less than –2.0% and Greater than –2.5%		1		0.07
		1,384		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD if such managers market a fund to EU investors.

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

BFA is required under the AIFMD to make quantitative disclosures of remuneration. These disclosures are made in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures. As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in that same year.

Disclosures are provided in relation to both (a) the staff of BFA; (b) staff who are senior management; and (c) staff who have the ability to materially affect the risk profile of the Fund.

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Supplemental Information  (unaudited) (continued)

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.

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

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, 2017 was USD 68.02 thousand. This figure is comprised of fixed remuneration of USD 27.11 thousand and variable remuneration of USD 40.91 thousand. There were a total of 417 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, 2017, to its senior management was USD 9.52 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 1.77 thousand.

S U P P L E M E N T A L    I N F O R M A T I O  N 49

Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).
(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. and its affiliates. (b) Mark K. 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.
Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information  (continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

D I R E C T O R    A N D    O F F I C E R     I N F O R M A T I O N 51

General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

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Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity
ADR	American Depositary Receipt
GDR	Global Depositary Receipt
NVS	Non-Voting Shares
SDR	Swedish Depositary Receipt
Counterparty Abbreviations
BOA	Bank of America N.A.
SSBL	State Street Bank London
Currency Abbreviations
EUR	Euro
USD	United States Dollar

G L O S S A R Y    O F    T E R M S     U S E D    I N    T H I S    R E P O R T 53

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

	This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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.
	©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

  2018 ANNUAL REPORT

iShares, Inc.

u iShares MSCI Global Agriculture Producers ETF | VEGI | NYSE Arca

u iShares MSCI Global Energy Producers ETF | FILL | NYSE Arca

u iShares MSCI Global Gold Miners ETF | RING | NASDAQ

u iShares MSCI Global Metals & Mining Producers ETF | PICK | Cboe BZX

u iShares MSCI Global Silver Miners ETF | SLVP | Cboe BZX

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		16
Shareholder Expenses		16
Schedules of Investments		17
Financial Statements
Statements of Assets and Liabilities		32
Statements of Operations		34
Statements of Changes in Net Assets		36
Financial Highlights		39
Notes to Financial Statements		44
Report of Independent Registered Public Accounting Firm		53
Important Tax Information (Unaudited)		54
Board Review and Approval of Investment Advisory Contract		55
Supplemental Information		57
Director and Officer Information		60
General Information		62
Glossary of Terms Used in this Report		63

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T   O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® MSCI Global Agriculture Producers ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since   Inception			1 Year			5 Years			Since   Inception
Fund NAV		9.49	%		5.52	%		4.33	%		9.49	%		30.80	%		32.20	%
Fund Market		9.15			5.42			4.29			9.15			30.22			31.88
Index		9.22			5.50			4.38			9.22			30.71			32.59

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        997.10	$        1.91			$        1,000.00	$        1,023.30	$        1.94		0.38	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Global Agriculture Producers ETF

Portfolio Management Commentary

The Food and Agriculture Organization Food Price Index, a broad measure of global food prices, declined during the reporting period. Four out of five food groups that make up the index — meat, dairy, vegetable oils, and sugar — decreased, while only cereals prices rose. Analysts attribute the lower prices to uncertainty around U.S. trade policies, as well as the strength of the U.S. dollar. Many agricultural commodities are priced in U.S. dollars, so a stronger U.S. dollar makes them more expensive for foreign buyers. The supply of many commodities rose, weighing on prices. For example, U.S. corn and soy production hit record highs, while Russian grain production expanded, positioning the country among the world’s largest wheat exporters. Meat supplies also increased. According to the U.S. Department of Agriculture, the supply of beef cows and hogs in the U.S rose to the highest recorded level in July 2018. However, production did not increase uniformly across products and geographies — E.U. agricultural production was disrupted by heatwaves during the reporting period.

In country terms, agricultural producers in the U.S., which made up nearly 50% of the Index on average during the reporting period, contributed the most to the Index’s return. Machinery, agricultural products, and fertilizer and agricultural chemicals companies in the U.S. benefited from broad strength in agricultural activity. Canada was also a noteworthy contributor to the Index’s performance. The country’s potash fertilizer providers posted higher profits as prices rose amid strong demand, low inventories, and supply disruptions in China. On the downside, Japanese stocks detracted from the Index’s return amid concerns over potential trade disruptions to the global economy and higher input costs.

In sector terms, materials contributed the most to the Index’s performance. Companies in the fertilizer and agricultural chemicals industry generated solid profits as agricultural output rose, necessitating greater fertilizer use, even as fertilizer prices increased. In the industrials sector, agricultural and farm machinery companies benefited from rising demand from agricultural producers for new, more productive equipment.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Fertilizers & Agricultural Chemicals	35.1%
Agricultural & Farm Machinery	26.2
Agricultural Products	23.7
Packaged Foods & Meats	15.0

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
United States	44.6%
Canada	11.1
Norway	8.0
Japan	7.3
Italy	3.7
Malaysia	3.0
India	2.6
Singapore	2.1
Hong Kong	2.0
Australia	2.0

^(a) Excludes money market funds.

F U N D    S U M M A R Y 7

Fund Summary as of August 31, 2018 iShares^® MSCI Global Energy Producers ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		26.48	%		1.68	%		1.45	%		26.48	%		8.69	%		9.92	%
Fund Market		26.79			1.76			1.49			26.79			9.12			10.23
Index		25.83			1.47			1.26			25.83			7.58			8.62

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        1,121.70	$        2.09			$        1,000.00	$        1,023.20	$        1.99		0.39	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Global Energy Producers ETF

Portfolio Management Commentary

Energy prices rose during the reporting period, led by a significant increase in the price of crude oil. In terms of supply, OPEC countries continued to limit output but agreed in June 2018 to raise production modestly in response to rising prices. Indeed, crude oil supply reached a record high of 100 million barrels per day in August, reflecting increased production by Saudi Arabia. U.S. crude oil output also expanded, allowing the U.S. to overtake Saudi Arabia as the world’s number-two oil producing country during the reporting period. On the other hand, Venezuela’s production declined to the lowest level in 50 years amid the country’s ongoing crisis, while Iran’s exports were pressured by pending U.S. trade sanctions. Gasoline prices also rose during the reporting period. A key support for prices came from U.S. gasoline demand, which reached its highest level since the Energy Information Administration started tracking the data in 1991.

In country terms, the U.S., which made up nearly 50% of the Index on average during the reporting period, contributed the most to the Index’s return. Large-capitalization energy companies in the U.S. generated the highest year-over-year profit growth of all sectors in the S&P 500 during the second quarter of 2018. The rebound in oil prices helped every industry in the sector post positive earnings growth. The U.K. was another source of strength, as large refiners and producers raised output and benefited from higher oil prices.

From an industry perspective, integrated oil and gas companies drove the Index’s performance. As oil prices rose, these companies realized greater profits from their production and refining efforts, while also generating high margins from their retail, chemicals, and commodities trading businesses. Performance was also quite strong for oil and gas exploration and production companies, which increased operational efficiency and cut costs following the 2014-15 decline in oil prices and were therefore well positioned for the rebound in prices.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Integrated Oil & Gas	58.5%
Oil & Gas Exploration & Production	28.9
Oil & Gas Refining & Marketing	11.0
Coal & Consumable Fuels	1.6

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
United States	48.7%
United Kingdom	16.6
Canada	7.7
France	5.8
Russia	3.0
India	2.6
China	2.3
Australia	1.9
Italy	1.9
Japan	1.7

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 9

Fund Summary as of August 31, 2018 iShares^® MSCI Global Gold Miners ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since   Inception			1 Year			5 Years			Since   Inception
Fund NAV		(27.22	)%		(8.25	)%		(16.39	)%		(27.22	)%		(34.97	)%		(69.24	)%
Fund Market		(27.80	)		(8.33	)		(16.42	)		(27.80	)		(35.27	)		(69.31	)
Index		(27.07	)		(8.07	)		(16.26	)		(27.07	)		(34.36	)		(68.90	)

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        842.80	$        1.81			$        1,000.00	$        1,023.20	$        1.99		0.39	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Global Gold Miners ETF

Portfolio Management Commentary

The price of gold traded in a range between approximately $1,250 and $1,350 per ounce through mid-April 2018, then declined for the remainder of the reporting period, finishing at approximately $1,200 per ounce. Total gold supply rose modestly year-over-year through June 2018, the latest period for which data were available, as mine production and recycled gold supply edged up. Meanwhile, gold demand for the first half of 2018 was the lowest of any comparable period since 2009. Jewelry demand was affected by the high price of gold in U.S. dollar terms. Gold is priced in U.S. dollars, so a stronger U.S. currency made gold more expensive for foreign buyers.

Gold is typically viewed as a store of value relative to fiat currencies (those created by government decree with no inherent value of their own) during periods of rising inflation and economic and financial uncertainty. Although inflation generally rose in the developed world, it remained low by historical standards. Despite a brief surge in volatility in early 2018, financial markets in most developed countries subsequently rallied, producing strong gains amid low volatility. In that environment, investment demand for gold was slightly positive, but significantly lower than in the prior reporting period.

Price declines in the precious metal created a difficult environment for gold mining stocks. From a country perspective, gold mining stocks in Canada detracted the most from the Index’s performance. These stocks made up more than 50% of the Index on average and generally performed very poorly. Declining output and rising production costs weighed on earnings. South African gold mining stocks also detracted from performance amid slower output and higher production costs. The U.S. was another significant detractor from the Index’s performance. The largest gold mining company in the world by production volume is a U.S. company. Its stock price action closely mirrored that of gold — peaking in April 2018 and falling sharply thereafter — helping make the U.S. a significant detractor from the Index’s performance.

Portfolio Information

ALLOCATION BY COUNTRY

Country	Percent of    Total Investments(a)
Canada	51.9%
United States	16.5
Australia	13.0
South Africa	8.5
United Kingdom	6.7
Peru	2.7
Turkey	0.7

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Newmont Mining Corp.	15.4%
Barrick Gold Corp.	10.9
Newcrest Mining Ltd.	9.6
Goldcorp Inc.	8.3
Randgold Resources Ltd.	4.6
Agnico Eagle Mines Ltd.	4.4
Kirkland Lake Gold Ltd.	4.0
Kinross Gold Corp.	4.0
AngloGold Ashanti Ltd.	3.5
Yamana Gold Inc.	3.2

^(a)  Excludes money market funds.

F U N D    S U M M A  R Y 11

Fund Summary as of August 31, 2018 iShares^® MSCI Global Metals & Mining Producers ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since   Inception			1 Year			5 Years			Since   Inception
Fund NAV		(0.10	)%		1.03	%		(3.49	)%		(0.10	)%		5.24	%		(20.89	)%
Fund Market		(0.99	)		1.16			(3.56	)		(0.99	)		5.96			(21.25	)
Index		0.56			1.27			(3.38	)		0.56			6.53			(20.27	)

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        885.00	$        1.85			$        1,000.00	$        1,023.20	$        1.99		0.39	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Global Metals & Mining Producers ETF

Portfolio Management Commentary

Pricing for nonferrous metals was mixed during the reporting period, reflecting the divergence in global economic growth and currencies as well as uncertainty around global trade. The U.S. economy continued to grow, while many other leading economies and regions posted slowdowns from late 2017 into 2018. Slower global growth is noteworthy because it decreases demand for industrial commodities. In currency terms, stronger growth and higher interest rates in the U.S. contributed to a stronger U.S. dollar. That strength weighed on demand for commodities priced in U.S. dollars, which became more expensive for foreign buyers. Consequently, the prices of many commodities moved inversely to the U.S. dollar, peaking in early 2018 then declining for the remainder of the reporting period. Steel was a notable exception to these trends. The price of steel fluctuated throughout the first half of the reporting period before bottoming in April 2018 then rallying to finish the reporting period near an all-time high.

In country terms, Australia contributed the most to the Index’s performance, led by diversified metals and mining companies, which increased production and profits. The U.S. was another source of strength, reflecting gains by steel manufacturers. On the downside, Canada detracted the most from the Index’s performance, as it was home to a number of poor-performing copper mining companies. Japanese stocks struggled amid a product-quality scandal at a leading steel producer and concerns over the effect of tariffs.

In industry terms, steel stocks were the leading sources of strength. After the imposition of tariffs, U.S. steel prices rose sharply, benefiting U.S. steel companies. Other leading global steel makers advanced as well, as did companies producing iron ore used in the steel manufacturing process. Select diversified metals and mining companies also helped performance, benefiting from rising production, operational efficiencies, and exposure to a diverse array of metals with varied pricing. On the downside, copper companies were the main source of weakness. Their performance reflected declines in copper prices, which reached a 13-month low during the reporting period, amid uncertainty around Chinese demand.

Portfolio Information

ALLOCATION BY SECTOR

Sector	Percent of    Total Investments(a)
Diversified Metals & Mining	49.8%
Steel	37.3
Copper	7.1
Aluminum	4.5
Precious Metals & Minerals	1.3

TEN LARGEST COUNTRIES

Country	Percent of    Total Investments(a)
United Kingdom	23.8%
Australia	18.9
United States	12.4
Japan	7.7
Brazil	6.5
Canada	4.4
South Korea	4.3
Netherlands	3.0
Russia	3.0
India	2.2

^(a) Excludes money market funds.

F U N D    S U M M A R Y 13

Fund Summary as of August 31, 2018 iShares^® MSCI Global Silver Miners ETF

Investment Objective

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.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since   Inception			1 Year			5 Years			Since   Inception
Fund NAV		(25.87	)%		(8.15	)%		(13.86	)%		(25.87	)%		(34.61	)%		(62.56	)%
Fund Market		(26.50	)		(8.35	)		(13.89	)		(26.50	)		(35.34	)		(62.65	)
Index		(25.93	)		(8.15	)		(13.85	)		(25.93	)		(34.63	)		(62.53	)

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.

Expense Example

Actual					Hypothetical 5% Return
	Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)	Ending Account Value (08/31/18)	Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$        1,000.00	$        865.20	$        1.83			$        1,000.00	$        1,023.20	$        1.99		0.39	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Global Silver Miners ETF

Portfolio Management Commentary

The price per ounce of silver declined from approximately $17.50 to $14.50 during the reporting period. In terms of supply and demand, global silver supply declined as both mine output and above-ground scrap supply decreased. Output at a key silver mine in the U.S. was disrupted by strikes, while in Guatemala, the government shut down a mine over a licensing dispute with a mining company. Demand was mixed. Approximately 60% of silver production is used in industrial applications, so stronger economic growth in 2017 helped support industrial demand, though investment demand declined. Industrial fabrication demand is driven by silver’s use in solar and electrical components. Consequently, silver often tends to trade like other industrial metals, whose prices generally declined in 2018 as global growth moderated during the second half of the reporting period.

In addition, fluctuations in the U.S. dollar affected silver’s price performance. Silver is priced in U.S. dollars, so a stronger U.S. dollar makes silver more expensive for foreign buyers. The U.S. dollar strengthened in 2018 as the U.S. economy diverged from many other developed economies, and the Fed continued to raise interest rates. That strength was important for silver because its price action tended to mirror that of the U.S. dollar, rising through early 2018, then declining for the rest of the reporting period.

Stocks of Canadian silver mining companies, which made up almost 60% of the Index on average during the reporting period, were the main detractors from the Index’s performance, due to the decline in silver prices. The largest silver mining company in the world, as measured by provable reserves, is a Canadian company. Its stock price was further affected by lower-than-expected production. The U.K. was another notable source of weakness. U.K. mining companies reported lower earnings due to decreases in silver prices and production as well as disadvantageous foreign exchange effects. The U.S. also detracted from the Index’s return. U.S. silver mining companies declined on investor concerns about their capital allocation decisions and lower production levels.

Portfolio Information

ALLOCATION BY COUNTRY

Country	Percent of    Total Investments(a)
Canada	61.7%
United States	11.7
United Kingdom	10.8
Mexico	7.5
Peru	4.6
Japan	2.8
China	0.9

TEN LARGEST HOLDINGS

Security	Percent of    Total Investments(a)
Wheaton Precious Metals Corp.	21.4%
Fresnillo PLC	8.3
Industrias Penoles SAB de CV	7.5
Pan American Silver Corp.	7.0
Hecla Mining Co.	4.6
Cia. de Minas Buenaventura SAA	4.6
SSR Mining Inc.	4.4
Tahoe Resources Inc.	4.1
Coeur Mining Inc.	4.1
First Majestic Silver Corp.	4.1

^(a)  Excludes money market funds.

F U N D    S U M M A R Y 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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Schedule of Investments	iShares® MSCI Global Agriculture Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Australia — 1.9%
Australian Agricultural Co. Ltd.(a)(b)		38,893	$	37,269
Costa Group Holdings Ltd.		29,118		152,250
Elders Ltd.		11,155		53,647
GrainCorp Ltd., Class A		22,908		129,389
Inghams Group Ltd.(b)		25,691		68,002
Nufarm Ltd./Australia		23,023		114,054
Select Harvests Ltd.		9,683		39,636
Tassal Group Ltd.		17,664		56,847
				651,094
Brazil — 0.4%
Sao Martinho SA		16,100		74,050
SLC Agricola SA		4,600		73,688
				147,738
Canada — 11.1%
Ag Growth International Inc.		1,679		78,817
Nutrien Ltd.		63,986		3,598,860
Rogers Sugar Inc.		9,522		39,579
				3,717,256
China — 1.0%
Beijing Dabeinong Technology Group Co. Ltd., Class A		6,900		3,454
China Agri-Industries Holdings Ltd.		207,200		82,364
China BlueChemical Ltd., Class H		184,000		64,233
China Huishan Dairy Holdings Co. Ltd.(a)(c)		295,050		5,639
China Modern Dairy Holdings Ltd.(a)		184,000		28,131
China Shengmu Organic Milk Ltd.(a)(b)(d)		368,000		18,286
COFCO Meat Holdings Ltd.(a)(b)		69,000		10,549
First Tractor Co. Ltd., Class H(a)		46,000		13,069
Henan Shuanghui Investment & Development Co. Ltd., Class A		4,600		15,688
Inner Mongolia Yili Industrial Group Co. Ltd., Class A		9,200		32,587
Muyuan Foodstuff Co. Ltd., Class A		2,300		7,730
New Hope Liuhe Co. Ltd., Class A		4,600		4,080
Qinghai Salt Lake Industry Co. Ltd., Class A(a)		2,300		2,841
Sinofert Holdings Ltd.(a)(b)		230,000		26,373
Tongwei Co. Ltd., Class A		4,600		4,309
				319,333
Finland — 0.1%
Ponsse OYJ		1,127		40,911
Germany — 1.9%
K+S AG, Registered		19,251		438,899
KWS Saat SE(b)		230		90,049
Suedzucker AG(b)		7,176		98,856
				627,804
Hong Kong — 2.0%
WH Group Ltd.(d)		885,500		667,885
India — 2.6%
Bayer CropScience Ltd./India		828		51,406
Chambal Fertilizers and Chemicals Ltd.		10,097		23,511
Coromandel International Ltd.		7,061		41,843
Deepak Fertilisers & Petrochemicals Corp. Ltd.		1,771		6,305
Dhanuka Agritech Ltd.		1,012		7,868
EID Parry India Ltd.		5,382		16,413
Escorts Ltd.		6,049		74,177
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.		3,795		20,961
Jain Irrigation Systems Ltd.		31,303		37,625
Kaveri Seed Co. Ltd.		3,059		27,719

Security	Shares		Value
India (continued)
KRBL Ltd.		4,830	$	26,164
Monsanto India Ltd.		483		19,748
Rallis India Ltd.		4,853		14,321
Sharda Cropchem Ltd.		2,277		12,936
Tata Global Beverages Ltd.		30,130		99,532
UPL Ltd.		35,719		360,230
Venky’s India Ltd.		368		14,377
				855,136
Indonesia — 1.4%
Charoen Pokphand Indonesia Tbk PT		745,200		251,941
Eagle High Plantations Tbk PT(a)		982,100		14,668
Inti Agri Resources Tbk PT(a)		3,261,400		61,110
Japfa Comfeed Indonesia Tbk PT		450,800		67,329
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		271,400		25,703
Salim Ivomas Pratama Tbk PT		273,700		9,384
Sawit Sumbermas Sarana Tbk PT		351,900		31,057
Tunas Baru Lampung Tbk PT		255,300		20,192
				481,384
Ireland — 0.2%
Origin Enterprises PLC		12,466		81,223
Israel — 1.6%
Israel Chemicals Ltd.		70,909		415,084
Israel Corp. Ltd. (The)		391		117,863
				532,947
Italy — 3.7%
CNH Industrial NV		102,925		1,233,458
Japan — 7.3%
Chubu Shiryo Co. Ltd.		2,300		31,113
Hokuto Corp.		2,300		39,555
Iseki & Co. Ltd.		2,300		41,215
Kubota Corp.		98,900		1,548,810
Kumiai Chemical Industry Co. Ltd.		9,200		78,572
Maruha Nichiro Corp.		4,600		159,922
Mitsui Sugar Co. Ltd.		2,300		62,849
NH Foods Ltd.		9,200		336,439
Nihon Nohyaku Co. Ltd.		4,600		32,814
Sakata Seed Corp.		2,300		79,754
YAMABIKO Corp.		2,300		27,131
				2,438,174
Malaysia — 3.0%
Boustead Plantations Bhd		59,800		18,190
FGV Holdings Bhd(b)		158,700		58,313
Genting Plantations Bhd		25,300		58,055
IOI Corp. Bhd		190,900		209,969
Kuala Lumpur Kepong Bhd		43,700		262,232
QL Resources Bhd		66,705		94,632
Sime Darby Plantation Bhd		239,200		311,987
				1,013,378
Mexico — 0.3%
Industrias Bachoco SAB de CV, Series B		18,400		88,928
Netherlands — 0.8%
ForFarmers NV		3,887		43,507
OCI NV(a)		7,406		239,118
				282,625
Norway — 8.0%
Austevoll Seafood ASA		9,223		121,757

S C H E D U L E    O F    I N V E S T M E N T S 17

Schedule of Investments   (continued)	iShares® MSCI Global Agriculture Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Norway (continued)
Bakkafrost P/F		4,186	$	239,666
Grieg Seafood ASA		5,129		59,155
Leroy Seafood Group ASA		29,946		228,748
Marine Harvest ASA		41,906		907,754
Norway Royal Salmon ASA		1,335		32,326
Salmar ASA		5,129		247,903
Yara International ASA		17,940		828,063
				2,665,372
Pakistan — 0.6%
Engro Corp. Ltd./Pakistan		27,600		73,132
Engro Fertilizers Ltd.		57,967		36,858
Fauji Fertilizer Bin Qasim Ltd.		34,500		11,524
Fauji Fertilizer Co. Ltd.		48,100		37,771
Millat Tractors Ltd.		2,760		27,886
				187,171
Poland — 0.1%
Grupa Azoty SA		4,370		45,120
Russia — 0.6%
PhosAgro PJSC, GDR, NVS(e)		11,661		154,508
Ros Agro PLC, GDR(e)		3,381		35,540
				190,048
Singapore — 2.1%
Bumitama Agri Ltd.		39,100		19,977
China XLX Fertiliser Ltd.		46,000		18,637
First Resources Ltd.(b)		57,500		66,731
Golden Agri-Resources Ltd.		641,700		133,488
Japfa Ltd.		36,800		17,996
Wilmar International Ltd.		193,200		451,254
				708,083
South Africa — 0.5%
Astral Foods Ltd.		4,094		72,336
Oceana Group Ltd.		4,117		22,171
Tongaat Hulett Ltd.		10,994		59,340
				153,847
South Korea — 0.4%
Dongwon Industries Co. Ltd.		138		37,378
Easy Bio Inc.		4,048		26,365
Farmsco		1,656		15,918
Harim Holdings Co. Ltd.		2,990		28,607
Namhae Chemical Corp.		2,254		27,538
Sajo Industries Co. Ltd.		253		13,341
				149,147
Sweden — 0.1%
Scandi Standard AB		5,543		33,247
Taiwan — 0.4%
Charoen Pokphand Enterprise		23,000		38,864
Taiwan Fertilizer Co. Ltd.		69,000		95,137
				134,001
Thailand — 1.0%
Charoen Pokphand Foods PCL, NVDR		347,300		273,235
GFPT PCL, NVDR(b)		50,600		22,880
Khon Kaen Sugar Industry PCL, NVDR		167,954		16,934
Thaifoods Group PCL, NVDR(b)		135,700		17,662
				330,711
Turkey — 0.0%
Turk Traktor ve Ziraat Makineleri AS		1,091		7,503

Security	Shares		Value
United Kingdom — 0.6%
Sirius Minerals PLC(a)		420,463	$	196,739
United States — 44.4%
AGCO Corp.		6,348		378,721
AgroFresh Solutions Inc.(a)		2,783		18,507
American Vanguard Corp.		2,691		58,933
Archer-Daniels-Midland Co.		56,281		2,836,562
Bunge Ltd.		14,168		920,637
Cal-Maine Foods Inc.		3,128		154,679
CF Industries Holdings Inc.		23,460		1,218,747
Darling Ingredients Inc.(a)		16,629		328,922
Deere & Co.		30,912		4,445,145
FMC Corp.		13,524		1,155,626
Fresh Del Monte Produce Inc.		3,220		120,557
Ingredion Inc.		7,291		736,901
Intrepid Potash Inc.(a)		9,821		33,391
Lindsay Corp.		1,081		103,527
Mosaic Co. (The)		36,869		1,152,894
Sanderson Farms Inc.		2,070		218,923
Scotts Miracle-Gro Co. (The)		4,301		321,371
Titan International Inc.		5,037		37,677
Toro Co. (The)		10,787		655,742
				14,897,462
Total Common Stocks — 98.1% (Cost: $32,426,843)				32,877,725
Preferred Stocks
Chile — 1.6%
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares		12,075		524,590
Total Preferred Stocks — 1.6% (Cost: $442,067)				524,590
Short-Term Investments
Money Market Funds — 1.0%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		311,298		311,391
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(f)(g)		31,148		31,148
				342,539
Total Short-Term Investments — 1.0% (Cost: $342,474)				342,539
Total Investments in Securities — 100.7% (Cost: $33,211,384)				33,744,854
Other Assets, Less Liabilities — (0.7)%				(223,640	)
Net Assets — 100.0%			$	33,521,214

^(a) Non-income producing security.

^(b) All or a portion of this security is on loan.

^(c) Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(d)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

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

18 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Global Agriculture Producers ETF
August 31, 2018

^(f) Affiliate of the Fund.

^(g) Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at		Shares		Shares			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17		Purchased		Sold			08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		1,885,655		—		(1,574,357	)(b)		311,298	$	311,391	$	23,796	(c)	$	(22	)	$	(62	)
BlackRock Cash Funds: Treasury, SL Agency Shares		37,102		—		(5,954	)(b)		31,148		31,148		1,103			—			—
iShares India 50 ETF		22,680		4,117		(26,797	)		—		—		1,308			137,122			(133,195	)
										$	342,539	$	26,207		$	137,100		$	(133,257	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Net of purchases and sales.

^(c)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	32,872,086	$	—	$	5,639	$	32,877,725
Preferred Stocks		524,590		—		—		524,590
Money Market Funds		342,539		—		—		342,539
	$	33,739,215	$	—	$	5,639	$	33,744,854

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 19

Schedule of Investments	iShares® MSCI Global Energy Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Australia — 1.9%
Beach Energy Ltd.		32,487	$	45,579
Karoon Gas Australia Ltd.(a)(b)		5,502		4,556
Oil Search Ltd.		25,893		167,783
Santos Ltd.		32,991		161,765
Washington H Soul Pattinson & Co. Ltd.		2,058		35,363
Whitehaven Coal Ltd.		12,600		45,835
Woodside Petroleum Ltd.		16,884		450,202
				911,083
Austria — 0.3%
OMV AG		2,625		139,363
Brazil — 0.7%
Dommo Energia SA(a)		14,200		6,893
Petroleo Brasileiro SA		56,700		303,861
QGEP Participacoes SA		2,100		6,218
				316,972
Canada — 7.6%
Advantage Oil & Gas Ltd.(a)(b)		4,473		13,310
ARC Resources Ltd.		7,035		74,723
Athabasca Oil Corp.(a)(b)		8,148		9,373
Baytex Energy Corp.(a)		10,467		31,386
Birchcliff Energy Ltd.		4,746		17,289
Bonavista Energy Corp.(b)		6,762		7,260
Bonterra Energy Corp.		882		13,041
Cameco Corp.		7,518		78,181
Canacol Energy Ltd.(a)		1,554		4,946
Canadian Natural Resources Ltd.		22,596		772,175
Cardinal Energy Ltd.		3,360		13,451
Cenovus Energy Inc.		19,320		179,280
Crescent Point Energy Corp.		11,004		67,596
Crew Energy Inc.(a)		3,717		5,274
Encana Corp.		18,249		241,836
Enerplus Corp.		4,410		54,586
Freehold Royalties Ltd.		1,869		16,856
Husky Energy Inc.		6,573		108,781
Imperial Oil Ltd.		5,166		161,127
Kelt Exploration Ltd.(a)		2,653		18,637
MEG Energy Corp.(a)(b)		4,431		28,001
NexGen Energy Ltd.(a)		6,217		12,110
NuVista Energy Ltd.(a)		3,066		17,752
Obsidian Energy Ltd.(a)(b)		7,980		7,833
Painted Pony Energy Ltd.(a)(b)		2,037		4,249
Paramount Resources Ltd., Class A(a)(b)		1,407		15,538
Parex Resources Inc.(a)		2,688		38,652
Pengrowth Energy Corp.(a)(b)		8,757		6,044
Peyto Exploration & Development Corp.		2,205		18,297
PrairieSky Royalty Ltd.		4,011		73,825
Seven Generations Energy Ltd., Class A(a)		4,880		57,484
Suncor Energy Inc.		29,925		1,232,847
Surge Energy Inc.		5,712		10,031
Tamarack Valley Energy Ltd.(a)		3,465		12,888
TORC Oil & Gas Ltd.		2,478		13,322
Tourmaline Oil Corp.		4,809		78,407
Ultra Petroleum Corp.(a)		3,360		4,402
Vermilion Energy Inc.		2,597		82,534
Whitecap Resources Inc.		8,043		49,777
				3,653,101

Security	Shares		Value
China — 2.3%
China Coal Energy Co. Ltd., Class H		20,000	$	8,511
China Shenhua Energy Co. Ltd., Class H		63,000		140,465
CNOOC Ltd.		336,000		594,183
Inner Mongolia Yitai Coal Co. Ltd., Class B		21,000		25,263
PetroChina Co. Ltd., Class H		398,000		296,133
Yanzhou Coal Mining Co. Ltd., Class H		42,000		48,534
				1,113,089
Colombia — 0.2%
Ecopetrol SA		91,791		102,766
Finland — 0.4%
Neste OYJ		2,331		202,866
France — 5.8%
Esso SA Francaise		63		3,332
Etablissements Maurel et Prom(a)		819		5,574
TOTAL SA, NVS		44,184		2,769,353
				2,778,259
Greece — 0.1%
Motor Oil Hellas Corinth Refineries SA		1,065		25,154
Hungary — 0.2%
MOL Hungarian Oil & Gas PLC		7,602		77,850
India — 2.5%
Bharat Petroleum Corp. Ltd.		9,639		49,210
Coal India Ltd.		5,838		23,537
Gujarat Mineral Development Corp. Ltd.		3,885		6,291
Indian Oil Corp. Ltd.		3,801		8,336
Reliance Industries Ltd., GDR(c)		32,550		1,126,230
				1,213,604
Indonesia — 0.3%
Adaro Energy Tbk PT		260,400		32,970
Bumi Resources Tbk PT(a)		1,016,400		16,560
Delta Dunia Makmur Tbk PT(a)		94,500		4,427
Harum Energy Tbk PT		16,800		2,920
Indika Energy Tbk PT		29,400		6,526
Indo Tambangraya Megah Tbk PT		6,300		12,104
Medco Energi Internasional Tbk PT(a)		156,466		9,241
Sugih Energy Tbk PT(a)		618,000		2,098
United Tractors Tbk PT		29,400		68,660
				155,506
Israel — 0.2%
Jerusalem Oil Exploration(a)		231		12,957
Naphtha Israel Petroleum Corp. Ltd.		1,282		8,118
Oil Refineries Ltd.		38,619		20,268
Paz Oil Co. Ltd.		189		29,321
				70,664
Italy — 1.9%
Eni SpA		47,418		881,630
Saras SpA		9,492		24,054
				905,684
Japan — 1.7%
Idemitsu Kosan Co. Ltd.		2,100		106,245
Inpex Corp.		18,900		207,093
Japan Petroleum Exploration Co. Ltd.		100		2,134
JXTG Holdings Inc.		60,900		429,708
Showa Shell Sekiyu KK		4,200		84,882
				830,062

20 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments   (continued)	iShares® MSCI Global Energy Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Malaysia — 0.0%
Hengyuan Refining Co. Bhd		2,100	$	3,797
Petron Malaysia Refining & Marketing Bhd		2,100		4,343
				8,140
New Zealand — 0.0%
New Zealand Refining Co. Ltd. (The)		3,465		5,932
Norway — 1.3%
Aker BP ASA		1,932		68,615
DNO ASA(a)		11,970		23,281
Equinor ASA		21,147		543,929
				635,825
Pakistan — 0.1%
Oil & Gas Development Co. Ltd.		16,800		20,631
Pakistan Oilfields Ltd.		2,176		11,274
				31,905
Philippines — 0.0%
Petron Corp.		79,800		13,522
Poland — 0.4%
Grupa Lotos SA		1,659		31,508
Lubelski Wegiel Bogdanka SA(a)		155		2,506
Polski Koncern Naftowy ORLEN SA		5,733		153,027
				187,041
Portugal — 0.4%
Galp Energia SGPS SA		9,177		186,535
Russia — 2.8%
LUKOIL PJSC		6,510		454,321
LUKOIL PJSC, ADR, NVS		1,344		92,736
Novatek PJSC, GDR, NVS(d)		1,659		277,053
Rosneft Oil Co. PJSC		9,280		60,031
Rosneft Oil Co. PJSC, GDR, NVS(d)		10,500		66,906
Surgutneftegas PJSC		71,400		30,467
Surgutneftegas PJSC, ADR, NVS		5,552		23,096
Tatneft PJSC		27,930		324,733
				1,329,343
South Africa — 0.1%
Exxaro Resources Ltd.		4,830		49,071
South Korea — 0.6%
SK Innovation Co. Ltd.		1,218		211,179
S-Oil Corp.		798		85,668
				296,847
Spain — 1.0%
Repsol SA		25,478		491,047
Sweden — 0.3%
Lundin Petroleum AB		3,339		116,106
Thailand — 0.5%
Bangchak Corp. PCL, NVDR(b)		10,500		11,549
Banpu PCL, NVDR		44,100		27,352
Esso Thailand PCL, NVDR		16,800		8,110
IRPC PCL, NVDR		191,100		40,579
PTT Exploration & Production PCL, NVDR		25,231		109,851
Thai Oil PCL, NVDR		21,000		54,056
				251,497
Turkey — 0.1%
Tupras Turkiye Petrol Rafinerileri AS		2,268		40,413

Security	Shares		Value
United Kingdom — 16.5%
BPPLC		368,256	$	2,619,600
Cairn Energy PLC(a)		10,689		33,204
EnQuest PLC(a)		25,599		14,340
Faroe Petroleum PLC(a)		5,817		11,341
FLEX LNG Ltd.(a)(b)		3,339		4,711
Gulf Keystone Petroleum Ltd.(a)		4,221		14,676
Hurricane Energy PLC(a)(b)		24,927		15,953
Nostrum Oil & Gas PLC(a)		2,646		8,753
Ophir Energy PLC(a)		21,105		11,247
Premier Oil PLC(a)		15,981		25,756
Royal Dutch Shell PLC, Class A		84,477		2,746,620
Royal Dutch Shell PLC, Class B		69,111		2,282,055
Soco International PLC		4,578		5,302
Sound Energy PLC(a)		10,836		6,056
Stobart Group Ltd.		5,607		17,345
Tullow Oil PLC(a)		26,502		80,225
				7,897,184
United States — 48.4%
Alta Mesa Resources Inc.(a)(b)		1,365		6,470
Anadarko Petroleum Corp.		9,513		612,637
Andeavor		2,667		407,491
Antero Resources Corp.(a)		4,053		75,021
Apache Corp.		7,140		312,946
Arch Coal Inc., Class A		357		31,655
Bonanza Creek Energy Inc.(a)		294		9,114
Cabot Oil & Gas Corp.		8,631		205,677
California Resources Corp.(a)		819		34,021
Callon Petroleum Co.(a)(b)		4,137		46,748
Carrizo Oil & Gas Inc.(a)		1,722		41,707
Centennial Resource Development Inc./DE, Class A(a)(b)		2,583		49,774
Chesapeake Energy Corp.(a)(b)		17,073		75,633
Chevron Corp.		35,280		4,179,269
Cimarex Energy Co.		1,806		152,571
CNX Resources Corp.(a)		3,381		53,893
Concho Resources Inc.(a)		3,696		506,906
ConocoPhillips		21,567		1,583,665
CONSOL Energy Inc.(a)		378		16,216
Continental Resources Inc./OK(a)(b)		1,722		113,566
CVR Energy Inc.		483		18,378
Delek U.S. Holdings Inc.		1,365		74,393
Denbury Resources Inc.(a)		7,644		42,577
Devon Energy Corp.		9,723		417,408
Diamondback Energy Inc.(b)		1,785		216,128
Eclipse Resources Corp.(a)(b)		3,087		4,414
Energen Corp.(a)		1,638		127,027
EOG Resources Inc.		10,647		1,258,795
EQT Corp.		4,977		253,927
Extraction Oil & Gas Inc.(a)		2,079		24,012
Exxon Mobil Corp.		78,141		6,264,564
Gran Tierra Energy Inc.(a)(b)		6,783		23,401
Gulfport Energy Corp.(a)(b)		3,192		37,538
Halcon Resources Corp.(a)		2,961		13,561
Hess Corp.		5,145		346,464
HighPoint Resources Corp.(a)		2,247		12,381
HollyFrontier Corp.		3,045		226,913
Jagged Peak Energy Inc.(a)		1,008		13,316
Kosmos Energy Ltd.(a)		4,200		37,968
Laredo Petroleum Inc.(a)		3,423		28,377
Marathon Oil Corp.		15,666		336,976
Marathon Petroleum Corp.		8,568		705,061

S C H E D U L E    O F    I N V E S T M E N T S 21

Schedule of Investments   (continued)	iShares® MSCI Global Energy Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
Matador Resources Co.(a)(b)		1,911	$	62,566
Midstates Petroleum Co. Inc.(a)		231		2,687
Murphy Oil Corp.		3,171		97,762
Newfield Exploration Co.(a)		3,738		101,973
Noble Energy Inc.		8,988		267,123
Oasis Petroleum Inc.(a)		5,124		68,969
Occidental Petroleum Corp.		14,112		1,127,125
Par Pacific Holdings Inc.(a)		357		7,251
Parsley Energy Inc., Class A(a)		4,536		125,965
PBF Energy Inc., Class A		1,890		98,129
PDC Energy Inc.(a)		1,218		64,176
Peabody Energy Corp.		1,491		61,593
Penn Virginia Corp.(a)		189		16,810
Pioneer Natural Resources Co.		3,129		546,636
QEP Resources Inc.(a)		4,599		45,852
Range Resources Corp.(b)		4,767		78,274
Resolute Energy Corp.(a)(b)		420		13,843
Ring Energy Inc.(a)(b)		1,008		11,894
SandRidge Energy Inc.(a)		588		9,326
SM Energy Co.		1,953		58,766
Southwestern Energy Co.(a)(b)		11,004		61,843
SRC Energy Inc.(a)		4,326		40,275
Talos Energy Inc.(a)		441		15,223
Tellurian Inc.(a)		1,428		13,809
Valero Energy Corp.		7,896		930,781
W&T Offshore Inc.(a)		1,701		11,516
Whiting Petroleum Corp.(a)		1,650		84,002
WildHorse Resource Development Corp.(a)		357		7,761
WPX Energy Inc.(a)		7,308		139,364
				23,169,853
Total Common Stocks — 98.6% (Cost: $44,509,124)				47,206,284
Preferred Stocks
Brazil — 0.7%
Petroleo Brasileiro SA, Preference Shares, NVS		71,400		333,769

Security	Shares		Value
Russia — 0.1%
Surgutneftegas PJSC, Preference Shares, NVS		138,600	$	77,003
Total Preferred Stocks — 0.8% (Cost: $319,752)				410,772
Short-Term Investments
Money Market Funds — 1.3%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(e)(f)(g)		554,418		554,585
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(e)(f)		70,523		70,523
				625,108
Total Short-Term Investments — 1.3% (Cost: $624,946)				625,108
Total Investments in Securities — 100.7% (Cost: $45,453,822)				48,242,164
Other Assets, Less Liabilities — (0.7)%				(353,107	)
Net Assets — 100.0%			$	47,889,057

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

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

^(e) Affiliate of the Fund.

^(f) Annualized 7-day yield as of period-end.

^(g) All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at				Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer		08/31/17	Net Activity			08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares		656,714	(102,296	)		554,418	$	554,585	$	8,349	(b)	$	(26	)	$	68
BlackRock Cash Funds: Treasury, SL Agency Shares		25,717	44,806			70,523		70,523		615			—			—
							$	625,108	$	8,964		$	(26	)	$	68

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

22 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Global Energy Producers ETF
August 31, 2018

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	47,206,284	$	—	$	—	$	47,206,284
Preferred Stocks		410,772		—		—		410,772
Money Market Funds		625,108		—		—		625,108
	$	48,242,164	$	—	$	—	$	48,242,164

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 23

Schedule of Investments	iShares® MSCI Global Gold Miners ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Australia — 13.0%
Newcrest Mining Ltd.	1,587,826	$	22,265,848
Resolute Mining Ltd.	2,223,066		2,033,768
St. Barbara Ltd.	1,581,695		4,506,896
Westgold Resources Ltd.(a)	1,524,245		1,526,733
			30,333,245
Canada — 51.8%
Agnico Eagle Mines Ltd.	298,463		10,295,537
Alacer Gold Corp.(a)	1,377,513		2,493,141
Alamos Gold Inc., Class A	1,163,118		5,120,056
Barrick Gold Corp.	2,471,824		25,306,837
Centerra Gold Inc.(a)	745,045		3,188,275
China Gold International Resources Corp. Ltd.(a)	1,271,022		1,783,788
Detour Gold Corp.(a)	368,317		3,011,051
Eldorado Gold Corp.(a)(b)	2,316,469		2,238,392
Endeavour Mining Corp.(a)(b)	194,906		2,961,071
Goldcorp Inc.	1,786,137		19,314,032
Guyana Goldfields Inc.(a)	526,433		1,489,733
IAMGOLD Corp.(a)	1,297,882		5,295,243
Kinross Gold Corp.(a)	3,073,670		9,193,077
Kirkland Lake Gold Ltd.	503,018		9,408,803
New Gold Inc.(a)(b)	1,838,427		1,804,660
Premier Gold Mines Ltd.(a)	463,667		668,503
SEMAFO Inc.(a)	1,237,148		3,102,476
SSR Mining Inc.(a)	326,882		2,847,793
Tahoe Resources Inc.	806,212		2,776,097
Torex Gold Resources Inc.(a)	151,799		1,025,614
Yamana Gold Inc.	2,650,888		7,359,342
			120,683,521
Peru — 2.7%
Cia. de Minas Buenaventura SAA, ADR, NVS	497,580		6,264,532
South Africa — 8.5%
AngloGold Ashanti Ltd.	1,013,251		8,153,727
Gold Fields Ltd.	2,275,479		5,591,144
Harmony Gold Mining Co. Ltd.	1,746,461		2,851,316
Sibanye Gold Ltd.(a)(b)	5,352,051		3,123,285
			19,719,472

Security	Shares		Value
Turkey — 0.7%
Koza Altin Isletmeleri AS(a)	242,518	$	1,611,355
United Kingdom — 6.7%
Acacia Mining PLC(a)	377,709		540,019
Centamin PLC	3,220,618		4,273,903
Randgold Resources Ltd.	164,331		10,726,446
			15,540,368
United States — 16.4%
McEwen Mining Inc.(b)	1,237,978		2,438,817
Newmont Mining Corp.	1,156,772		35,894,635
			38,333,452
Total Common Stocks — 99.8% (Cost: $325,455,256)			232,485,945
Short-Term Investments
Money Market Funds — 3.6%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(c)(d)(e)	8,281,703		8,284,188
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)	114,042		114,042
			8,398,230
Total Short-Term Investments — 3.6% (Cost: $8,396,140)			8,398,230
Total Investments in Securities — 103.4% (Cost: $333,851,396)			240,884,175
Other Assets, Less Liabilities — (3.4)%			(7,894,817	)
Net Assets — 100.0%		$	232,989,358

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Affiliate of the Fund.

^(d)  Annualized 7-day yield as of period-end.

^(e)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

														Change in
	Shares			Shares										Unrealized
	Held at			Held at		Value at					Net Realized			Appreciation
Affiliated Issuer		08/31/17	Net Activity		08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		5,122,703	3,159,000		8,281,703	$	8,284,188	$	92,931	(b)	$	(1,166	)	$	1,252
BlackRock Cash Funds: Treasury, SL Agency Shares		27,472	86,570		114,042		114,042		2,154			—			—
						$	8,398,230	$	95,085		$	(1,166	)	$	1,252

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

24 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Global Gold Miners ETF
August 31, 2018

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	232,485,945	$	—	$	—	$	232,485,945
Money Market Funds		8,398,230		—		—		8,398,230
	$	240,884,175	$	—	$	—	$	240,884,175

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 25

Schedule of Investments	iShares® MSCI Global Metals & Mining Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Australia — 18.8%
Altura Mining Ltd.(a)	530,613	$	101,691
Alumina Ltd.	1,321,182		2,751,780
Ausdrill Ltd.	277,734		324,384
BHP Billiton Ltd.	1,686,582		40,507,447
BlueScope Steel Ltd.	292,581		3,662,703
Fortescue Metals Group Ltd.	750,114		2,083,133
Galaxy Resources Ltd.(a)(b)	204,287		403,331
Iluka Resources Ltd.	229,158		1,537,948
Independence Group NL(b)	268,569		831,301
Jacana Minerals Ltd.(a)(b)(c)	6,808		—
Kidman Resources Ltd.(a)(b)	186,615		148,456
Lynas Corp. Ltd.(a)(b)	356,526		564,669
Mineral Resources Ltd.	89,575		983,370
Orocobre Ltd.(a)(b)	113,013		347,357
OZ Minerals Ltd.	169,128		1,109,383
Pilbara Minerals Ltd.(a)(b)	822,150		478,636
Rio Tinto Ltd.	212,976		11,203,726
Sandfire Resources NL	91,089		467,717
Sims Metal Management Ltd.	89,001		808,431
South32 Ltd.	2,722,230		6,851,136
Syrah Resources Ltd.(a)(b)	156,861		288,142
Western Areas Ltd.	153,990		292,892
			75,747,633
Austria — 0.7%
Voestalpine AG	57,681		2,593,201
Belgium — 0.2%
Bekaert SA(b)	17,748		453,056
Nyrstar NV(a)(b)	45,675		236,061
			689,117
Brazil — 5.6%
Cia. Siderurgica Nacional SA(a)	313,200		667,434
Vale SA	1,670,462		21,739,806
			22,407,240
Canada — 4.3%
Altius Minerals Corp.(b)	24,012		227,791
First Quantum Minerals Ltd.	360,963		4,531,588
HudBay Minerals Inc.	136,503		638,574
Ivanhoe Mines Ltd., Class A(a)	281,358		500,595
Labrador Iron Ore Royalty Corp.	32,625		635,511
Lithium Americas Corp.(a)(b)	27,144		129,064
Lucara Diamond Corp.	155,817		261,697
Lundin Mining Corp.(b)	336,951		1,607,297
Major Drilling Group International Inc.(a)	49,068		190,409
Mountain Province Diamonds Inc.(a)	76,995		160,019
Nemaska Lithium Inc.(a)(b)	326,511		200,321
Nevsun Resources Ltd.	173,063		655,647
Stelco Holdings Inc.	13,050		253,104
Stornoway Diamond Corp.(a)(b)	216,108		58,007
Teck Resources Ltd., Class B	268,569		6,057,452
Trevali Mining Corp.(a)	313,461		187,507
Turquoise Hill Resources Ltd.(a)	524,871		1,219,647
			17,514,230
Chile — 0.1%
CAP SA	37,845		341,965
China — 1.4%
Aluminum Corp. of China Ltd., Class H(a)	2,088,000		883,202

Security	Shares		Value
China (continued)
Angang Steel Co. Ltd., Class A	76,800	$	68,908
Angang Steel Co. Ltd., Class H	522,000		513,427
Baoshan Iron & Steel Co. Ltd., Class A	130,599		150,630
Chiho Environmental Group Ltd.(a)(b)	522,000		194,198
China Metal Recycling Holdings Ltd.(a)(c)	132,000		—
China Molybdenum Co. Ltd., Class H	2,349,000		963,674
China Northern Rare Earth Group High-Tech Co. Ltd., Class A	52,200		78,238
China Zhongwang Holdings Ltd.(b)	835,200		391,588
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A	104,498		23,096
Inner Mongolia Eerduosi Resourses Co. Ltd., Class B	255,596		244,605
Jiangxi Copper Co. Ltd., Class H	783,000		927,761
Jinchuan Group International Resources Co. Ltd.(a)(b)	783,000		105,745
Jinduicheng Molybdenum Co. Ltd., Class A	104,400		94,741
MMG Ltd.(a)	1,050,000		525,742
North Mining Shares Co. Ltd.(a)(b)	7,830,000		48,882
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A	52,200		35,222
Shougang Fushan Resources Group Ltd.	1,044,000		232,771
Tiangong International Co. Ltd.(b)	522,000		123,701
Tongling Nonferrous Metals Group Co. Ltd., Class A	261,000		81,370
Xinjiang Xinxin Mining Industry Co. Ltd., Class H(a)	522,000		59,856
			5,747,357
Egypt — 0.1%
Ezz Steel(a)	168,995		250,791
Finland — 0.2%
Outokumpu OYJ	159,471		938,484
France — 0.4%
APERAM SA	25,839		1,164,065
Eramet, NVS	4,959		425,234
			1,589,299
Germany — 1.9%
Aurubis AG	20,619		1,520,499
Salzgitter AG	19,314		877,075
thyssenkrupp AG	227,853		5,278,278
			7,675,852
India — 2.2%
Hindalco Industries Ltd.	224,992		754,824
Jindal Stainless Ltd.(a)	100		95
Tata Steel Ltd., GDR(b)(d)	471,257		3,958,559
Vedanta Ltd., ADR, NVS	323,641		4,136,132
			8,849,610
Indonesia — 0.1%
Aneka Tambang Tbk	4,880,738		288,272
Krakatau Steel Persero Tbk PT(a)	1,618,253		45,702
Pelat Timah Nusantara Tbk PT(a)	73,900		13,245
Timah Tbk PT	1,827,067		96,749
			443,968
Japan — 7.7%
Asahi Holdings Inc.	26,100		496,414
Daido Steel Co. Ltd.	19,000		868,738
Dowa Holdings Co. Ltd.	26,100		782,635
Hitachi Metals Ltd.	104,400		1,208,907
JFE Holdings Inc.	261,000		5,723,240
Kobe Steel Ltd.	156,600		1,313,415
Kyoei Steel Ltd.(b)	26,100		478,996
Maruichi Steel Tube Ltd.	36,600		1,123,894
Mitsubishi Materials Corp.	52,200		1,414,628

26 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments  (continued)	iShares® MSCI Global Metals & Mining Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Japan (continued)
Mitsui Mining & Smelting Co. Ltd.	32,200	$	924,895
Nakayama Steel Works Ltd.	26,100		158,410
Neturen Co. Ltd.	26,100		239,145
Nippon Denko Co. Ltd.(b)	52,200		134,637
Nippon Light Metal Holdings Co. Ltd.	313,200		692,014
Nippon Steel & Sumitomo Metal Corp.	391,540		7,893,653
Nisshin Steel Co. Ltd.	26,100		366,485
Sumitomo Metal Mining Co. Ltd.	130,500		4,225,053
Toho Titanium Co. Ltd.(b)	26,100		274,687
Tokyo Steel Manufacturing Co. Ltd.	78,300		627,756
UACJ Corp.(b)	26,138		596,376
Yamato Kogyo Co. Ltd.	26,100		750,859
Yodogawa Steel Works Ltd.	26,100		615,516
			30,910,353
Malaysia — 0.2%
Press Metal Aluminium Holdings Bhd	756,900		917,231
Mexico — 1.4%
Grupo Mexico SAB de CV, Series B	1,853,100		5,429,286
Industrias CH SAB de CV, Series B(a)	78,300		306,025
			5,735,311
Netherlands — 3.0%
AMG Advanced Metallurgical Group NV(b)	16,443		815,381
ArcelorMittal	346,347		10,453,161
Constellium NV, Class A(a)(b)	65,250		760,163
			12,028,705
Norway — 1.0%
Norsk Hydro ASA	715,662		3,963,111
Pakistan — 0.0%
International Steels Ltd.	52,200		44,581
Peru — 0.5%
Southern Copper Corp.	48,024		2,095,767
Philippines — 0.0%
Nickel Asia Corp.	522,000		53,012
Poland — 0.7%
Boryszew SA(a)	52,983		97,603
Jastrzebska Spolka Weglowa SA(a)	27,927		584,271
KGHM Polska Miedz SA	74,907		1,848,023
Stalprodukt SA	1,095		137,751
			2,667,648
Russia — 3.0%
Alrosa PJSC	1,357,202		2,043,045
Magnitogorsk Iron & Steel Works PJSC	1,148,400		826,001
Mechel PJSC, ADR, NVS(a)	44,892		119,413
MMC Norilsk Nickel PJSC	33,669		5,608,688
Novolipetsk Steel PJSC	623,790		1,534,243
Raspadskaya OAO(a)	75,690		111,624
Severstal PJSC	107,010		1,725,569
			11,968,583
South Africa — 0.7%
African Rainbow Minerals Ltd.	58,464		502,508
Anglo American Platinum Ltd.	28,971		850,271
Impala Platinum Holdings Ltd.(a)	364,878		445,786
Kumba Iron Ore Ltd.	33,408		604,462
Northam Platinum Ltd.(a)	185,571		493,463

Security	Shares		Value
South Africa (continued)
Royal Bafokeng Platinum Ltd.(a)	43,326	$	68,014
			2,964,504
South Korea — 4.3%
Dongkuk Steel Mill Co. Ltd.	26,361		221,658
Hyundai Steel Co.	40,716		1,949,569
Jenax Inc.(a)	6,525		90,271
KISCO Corp.	12,267		71,190
KISWIRE Ltd.(b)	2,871		67,187
Korea Zinc Co. Ltd.	4,698		1,711,395
Poongsan Corp.	10,701		323,486
Poongsan Holdings Corp.	4,698		174,305
POSCO	41,760		12,248,700
Seah Besteel Corp.	783		14,596
SeAH Steel Corp.	1,665		102,459
Young Poong Corp.	261		170,225
			17,145,041
Spain — 0.3%
Acerinox SA(b)	85,869		1,156,941
Tubacex SA(a)(b)	57,159		207,494
			1,364,435
Sweden — 1.4%
Boliden AB	144,855		3,795,597
Granges AB	43,587		510,939
SSAB AB, Class A	107,532		469,135
SSAB AB, Class B	287,361		1,004,896
			5,780,567
Switzerland — 0.0%
Schmolz + Bickenbach AG, Registered(a)	199,926		160,420
Taiwan — 1.9%
China Metal Products	261,011		266,832
China Steel Corp.	6,786,612		5,557,001
Chung Hung Steel Corp.(a)	700,000		319,062
Feng Hsin Steel Co. Ltd.	261,000		492,853
Gloria Material Technology Corp.	261,000		155,504
TA Chen Stainless Pipe	271,807		410,609
Tung Ho Steel Enterprise Corp.	522,000		384,086
Yieh Phui Enterprise Co. Ltd.	563,887		185,423
			7,771,370
Turkey — 0.4%
Borusan Mannesmann Boru Sanayi ve Ticaret AS(b)	11,484		13,457
Eregli Demir ve Celik Fabrikalari TAS	740,196		1,323,406
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class A(a)	14,094		6,619
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS, Class D(a)	403,245		256,357
Koza Anadolu Metal Madencilik Isletmeleri AS(a)(b)	109,881		95,408
			1,695,247
United Kingdom — 23.6%
Anglo American PLC	553,581		11,092,069
Antofagasta PLC	210,366		2,202,696
BHP Billiton PLC	1,112,382		23,766,356
Central Asia Metals PLC	93,960		262,568
Evraz PLC	189,747		1,226,952
Ferrexpo PLC	155,295		312,960
Glencore PLC	6,050,763		24,659,066
Hill & Smith Holdings PLC	41,251		568,865
KAZ Minerals PLC(a)	131,805		798,321
Petra Diamonds Ltd.(a)(b)	444,490		198,622

S C H E D U L E    O F    I N V E S T M E N T S 27

Schedule of Investments (continued)	iShares® MSCI Global Metals & Mining Producers ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
United Kingdom (continued)
Rio Tinto PLC		627,183	$	29,827,466
Vedanta Resources PLC		43,566		472,818
				95,388,759
United States — 12.3%
AK Steel Holding Corp.(a)		162,864		723,116
Alcoa Corp.(a)		98,397		4,395,394
Allegheny Technologies Inc.(a)(b)		64,728		1,749,598
Carpenter Technology Corp.		24,273		1,448,370
Century Aluminum Co.(a)		27,666		349,145
Cleveland-Cliffs Inc.(a)(b)		146,421		1,471,531
Commercial Metals Co.		60,291		1,302,286
Compass Minerals International Inc.		18,270		1,142,789
Freeport-McMoRan Inc.		721,665		10,139,393
Haynes International Inc.		6,525		257,085
Kaiser Aluminum Corp.		9,918		1,086,914
Materion Corp.		12,006		765,983
Nucor Corp.		165,474		10,342,125
Reliance Steel & Aluminum Co.		38,106		3,349,136
Ryerson Holding Corp.(a)(b)		8,352		86,861
Schnitzer Steel Industries Inc., Class A		14,094		371,377
Steel Dynamics Inc.		123,192		5,633,570
SunCoke Energy Inc.(a)		30,015		334,967
TimkenSteel Corp.(a)		18,531		259,619
U.S. Steel Corp.(b)		91,872		2,726,761
Warrior Met Coal Inc.(b)		21,402		514,718
Worthington Industries Inc.		24,012		1,118,479
				49,569,217
Total Common Stocks — 98.4% (Cost: $421,173,538)				397,012,609
Preferred Stocks
Brazil — 0.9%
Bradespar SA, Preference Shares, NVS		130,500		984,111

Security	Shares		Value
Brazil (continued)
Gerdau SA, Preference Shares, NVS		522,000	$	2,032,203
Metalurgica Gerdau SA, Preference Shares, NVS		339,300		647,290
				3,663,604
Total Preferred Stocks — 0.9% (Cost: $2,151,471)				3,663,604
Short-Term Investments
Money Market Funds — 3.4%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(e)(f)(g)		13,214,268		13,218,232
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(e)(f)		469,147		469,147
				13,687,379
Total Short-Term Investments — 3.4% (Cost: $13,685,427)				13,687,379
Total Investments in Securities —102.7% (Cost: $437,010,436)				414,363,592
Other Assets, Less Liabilities — (2.7)%				(10,727,611	)
Net Assets — 100.0%			$	403,635,981

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

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

^(e)  Affiliate of the Fund.

^(f)  Annualized 7-day yield as of period-end.

^(g)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	10,837,677	2,376,591		13,214,268	$	13,218,232	$	279,787	(b)	$	(952	)	$	692
BlackRock Cash Funds: Treasury, SL Agency Shares	1,803,747	(1,334,600	)	469,147		469,147		9,204			—			—
					$	13,687,379	$	288,991		$	(952	)	$	692

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

28 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments (continued)	iShares® MSCI Global Metals & Mining Producers ETF
August 31, 2018

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	396,910,150	$	102,459	$	—	$	397,012,609
Preferred Stocks		3,663,604		—		—		3,663,604
Money Market Funds		13,687,379		—		—		13,687,379
	$	414,261,133	$	102,459	$	—	$	414,363,592

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 29

Schedule of Investments	iShares® MSCI Global Silver Miners ETF
August 31, 2018	(Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Canada — 61.6%
Americas Silver Corp.(a)(b)		168,874	$	393,709
Dalradian Resources Inc.(a)(b)		810,634		913,863
Dundee Precious Metals Inc.(a)		417,399		912,295
Endeavour Silver Corp.(a)(b)		359,137		801,479
Excellon Resources Inc.(a)		357,056		309,424
First Majestic Silver Corp.(a)(b)		367,198		2,044,448
Fortuna Silver Mines Inc.(a)		361,303		1,656,959
GoGold Resources Inc.(a)(b)		1,015,113		256,902
Great Panther Silver Ltd.(a)(b)		532,528		469,655
Levon Resources Ltd.(a)		1,631,376		275,243
Lundin Gold Inc.(a)		145,155		545,465
MAG Silver Corp.(a)(b)		159,842		1,229,507
Mandalay Resources Corp.(a)(b)		2,383,455		301,599
Minco Silver Corp.(a)(b)		558,765		248,540
Pan American Silver Corp.		224,985		3,518,113
Seabridge Gold Inc.(a)(b)		90,740		1,029,911
Silvercorp Metals Inc.(b)		422,383		1,143,458
SSR Mining Inc.(a)		254,852		2,220,268
Tahoe Resources Inc.		598,576		2,061,127
Wheaton Precious Metals Corp.		630,718		10,815,487
				31,147,452
China — 0.9%
China Silver Group Ltd.(a)(b)		3,404,000		446,702
Japan — 2.8%
Asahi Holdings Inc.		73,900		1,405,556
Mexico — 7.5%
Industrias Penoles SAB de CV		222,774		3,783,564
Peru — 4.5%
Cia. de Minas Buenaventura SAA, ADR, NVS		183,042		2,304,499
United Kingdom — 10.8%
Fresnillo PLC		358,546		4,181,131

Security	Shares		Value
United Kingdom (continued)
Hochschild Mining PLC		565,402	$	1,267,670
				5,448,801
United States — 11.6%
Coeur Mining Inc.(a)(b)		362,456		2,058,750
Golden Minerals Co.(a)(b)		870,536		238,353
Hecla Mining Co.		824,599		2,341,861
McEwen Mining Inc.(b)		641,562		1,263,877
				5,902,841
Total Common Stocks — 99.7% (Cost: $64,568,397)				50,439,415
Short-Term Investments
Money Market Funds — 15.1%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(c)(d)(e)		7,592,922		7,595,200
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(c)(d)		32,226		32,226
				7,627,426
Total Short-Term Investments — 15.1% (Cost: $7,625,700)				7,627,426
Total Investments in Securities — 114.8% (Cost: $72,194,097)				58,066,841
Other Assets, Less Liabilities — (14.8)%				(7,490,036	)
Net Assets — 100.0%			$	50,576,805

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Affiliate of the Fund.

^(d)  Annualized 7-day yield as of period-end.

^(e)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares	7,553,574	39,348		7,592,922	$	7,595,200	$	183,296	(b)	$	862		$	8
BlackRock Cash Funds: Treasury, SL Agency Shares	37,449	(5,223	)	32,226		32,226		578			—			—
					$	7,627,426	$	183,874		$	862		$	8

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

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, refer to the Notes to Financial Statements.

30 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Schedule of Investments (continued)	iShares® MSCI Global Silver Miners ETF
August 31, 2018

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	50,439,415	$	—	$	—	$	50,439,415
Money Market Funds		7,627,426		—		—		7,627,426
	$	58,066,841	$	—	$	—	$	58,066,841

See notes to financial statements.

S C H E D U L E    O F    I N V E S T M E N T S 31

Statements of Assets and Liabilities

August 31, 2018

	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
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	33,402,315		$	47,617,056		$	232,485,945		$	400,676,213
Affiliated(c)		342,539			625,108			8,398,230			13,687,379
Foreign currency, at value(d)		29,170			115,527			110,504			262,029
Receivables:
Investments sold		73,679			110,009			335,738			645,350
Securities lending income — Affiliated		1,499			657			7,517			22,968
Capital shares sold		—			36,808			—			—
Securities related to in-kind transactions		—			25,804			—			—
Dividends		70,109			239,130			388,355			2,392,892
Tax reclaims		11,173			3,867			—			52,671
Total assets		33,930,484			48,773,966			241,726,289			417,739,502
LIABILITIES
Bank overdraft		—			5,011			—			720
Collateral on securities loaned, at value		311,393			554,465			8,286,474			13,215,632
Payables:
Investments purchased		86,863			310,340			359,299			681,831
Capital shares redeemed		—			—			5,810			—
Securities related to in-kind transactions		—			—			—			59,407
Investment advisory fees		11,014			15,093			85,348			144,102
Foreign taxes		—			—			—			1,829
Total liabilities		409,270			884,909			8,736,931			14,103,521
NET ASSETS	$	33,521,214		$	47,889,057		$	232,989,358		$	403,635,981
NET ASSETS CONSIST OF:
Paid-in capital	$	34,574,509		$	47,013,007		$	367,368,914		$	459,017,999
Undistributed net investment income		107,413			267,105			159,655			3,206,084
Accumulated net realized loss		(1,693,002	)		(2,178,730	)		(41,568,158	)		(35,879,013	)
Net unrealized appreciation (depreciation)		532,294			2,787,675			(92,971,053	)		(22,709,089	)
NET ASSETS	$	33,521,214		$	47,889,057		$	232,989,358		$	403,635,981
Shares outstanding		1,150,000			2,100,000			16,150,000			13,050,000
Net asset value	$	29.15		$	22.80		$	14.43		$	30.93
Shares authorized		500 million			500 million			500 million			500 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a)  Securities loaned, at value	$	290,514		$	526,151		$	7,975,536		$	12,240,839
(b)  Investments, at cost — Unaffiliated	$	32,868,910		$	44,828,876		$	325,455,256		$	423,325,009
(c)  Investments, at cost — Affiliated	$	342,474		$	624,946		$	8,396,140		$	13,685,427
(d)  Foreign currency, at cost	$	30,400		$	116,874		$	114,333		$	264,934

See notes to financial statements.

32 2 0 1 8    I S H A R E S    A N N U  A L    R E P O R T    T O    S H A R E H O L D E R  S

Statements of Assets and Liabilities  (continued)

August 31, 2018

	iShares MSCI Global Silver Miners ETF
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	50,439,415
Affiliated(c)		7,627,426
Cash		1,077
Foreign currency, at value(d)		12,057
Receivables:
Investments sold		1,932,453
Securities lending income — Affiliated		20,310
Dividends		108,149
Total assets		60,140,887
LIABILITIES
Collateral on securities loaned, at value		7,592,382
Payables:
Investments purchased		1,949,269
Capital shares redeemed		4,076
Investment advisory fees		18,355
Total liabilities		9,564,082
NET ASSETS	$	50,576,805
NET ASSETS CONSIST OF:
Paid-in capital	$	79,224,538
Distributions in excess of net investment income		(266,371	)
Accumulated net realized loss		(14,254,370	)
Net unrealized depreciation		(14,126,992	)
NET ASSETS	$	50,576,805
Shares outstanding		6,000,000
Net asset value	$	8.43
Shares authorized		500 million
Par value	$	0.001
(a)  Securities loaned, at value	$	6,990,038
(b)  Investments, at cost — Unaffiliated	$	64,568,397
(c)  Investments, at cost — Affiliated	$	7,625,700
(d)  Foreign currency, at cost	$	12,176

See notes to financial statements.

F I N A N C I A L  S T A T E M E N T S 33

Statements of Operations

Year Ended August 31, 2018

	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
INVESTMENT INCOME
Dividends — Unaffiliated	$	730,572		$	1,292,749		$	3,200,585		$	17,997,977
Dividends — Affiliated		2,411			615			2,154			9,204
Securities lending income — Affiliated — net		23,796			8,349			92,931			279,787
Foreign taxes withheld		(57,678	)		(64,767	)		(170,164	)		(825,115	)
Other foreign taxes		—			—			—			(1,829	)
Total investment income		699,101			1,236,946			3,125,506			17,460,024
EXPENSES
Investment advisory fees		123,157			145,235			1,282,250			1,925,807
Commitment fees		59			55			—			550
Proxy fees		3			4			23			31
Interest expense		439			—			—			—
Total expenses		123,658			145,294			1,282,273			1,926,388
Less:
Investment advisory fees waived		(5,554	)		—			—			—
Total expenses after fees waived		118,104			145,294			1,282,273			1,926,388
Net investment income		580,997			1,091,652			1,843,233			15,533,636
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		217,179			(277,637	)		(3,376,548	)		(11,992,611	)
Investments — Affiliated		125,664			(26	)		(1,166	)		(952	)
In-kind redemptions — Unaffiliated		305,210			360,273			8,804,501			43,271,890
In-kind redemptions — Affiliated		11,436			—			—			—
Foreign currency transactions		(1,424	)		680			(56,577	)		(73,142	)
Net realized gain		658,065			83,290			5,370,210			31,205,185
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		1,577,004			6,716,692			(104,080,964	)		(65,781,546	)
Investments — Affiliated		(133,257	)		68			1,252			692
Foreign currency translations		(2,168	)		(2,579	)		(6,762	)		(62,286	)
Net change in unrealized appreciation (depreciation)		1,441,579			6,714,181			(104,086,474	)		(65,843,140	)
Net realized and unrealized gain (loss)		2,099,644			6,797,471			(98,716,264	)		(34,637,955	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,680,641		$	7,889,123		$	(96,873,031	)	$	(19,104,319	)

See notes to financial statements.

34 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Statements of Operations  (continued)

Year Ended August 31, 2018

	iShares MSCI Global Silver Miners ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	661,106
Dividends — Affiliated		578
Securities lending income — Affiliated — net		183,296
Foreign taxes withheld		(42,509	)
Total investment income		802,471
EXPENSES
Investment advisory fees		235,328
Proxy fees		7
Total expenses		235,335
Net investment income		567,136
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(4,220,410	)
Investments — Affiliated		862
In-kind redemptions — Unaffiliated		1,137,646
Foreign currency transactions		(7,443	)
Net realized loss		(3,089,345	)
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(15,232,789	)
Investments — Affiliated		8
Foreign currency translations		652
Net change in unrealized appreciation (depreciation)		(15,232,129	)
Net realized and unrealized loss		(18,321,474	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(17,754,338	)

See notes to financial statements.

F I N A N C I A L   S  T A T E M E N T S 35

Statements of Changes in Net Assets

	iShares MSCI Global Agriculture Producers ETF						iShares MSCI Global Energy Producers ETF
		Year Ended			Year Ended			Year Ended			Year Ended
		08/31/18			08/31/17			08/31/18			08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	580,997		$	505,154		$	1,091,652		$	1,111,642
Net realized gain		658,065			935,619			83,290			489,918
Net change in unrealized appreciation (depreciation)		1,441,579			2,278,925			6,714,181			(734,277	)
Net increase in net assets resulting from operations		2,680,641			3,719,698			7,889,123			867,283
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(539,577	)		(561,907	)		(1,078,574	)		(1,091,944	)
Decrease in net assets resulting from distributions to shareholders		(539,577	)		(561,907	)		(1,078,574	)		(1,091,944	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		2,945,823			(2,674,344	)		9,510,421			(5,647,277	)
NET ASSETS
Total increase (decrease) in net assets		5,086,887			483,447			16,320,970			(5,871,938	)
Beginning of year		28,434,327			27,950,880			31,568,087			37,440,025
End of year	$	33,521,214		$	28,434,327		$	47,889,057		$	31,568,087
Undistributed net investment income included in net assets at end of year	$	107,413		$	61,073		$	267,105		$	251,539

See notes to financial statements.

36 2 0 1 8   I S H A R E S    A N N U A L   R E P O R  T   T O   S H A R E H O L  D E R S

Statements of Changes in Net Assets  (continued)

	iShares MSCI Global Gold Miners ETF						iShares MSCI Global Metals & Mining Producers ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	1,843,233		$	963,974		$	15,533,636		$	6,226,345
Net realized gain (loss)		5,370,210			(12,294,792	)		31,205,185			27,468,057
Net change in unrealized appreciation (depreciation)		(104,086,474	)		(1,688,397	)		(65,843,140	)		62,029,722
Net increase (decrease) in net assets resulting from operations		(96,873,031	)		(13,019,215	)		(19,104,319	)		95,724,124
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(2,189,407	)		(2,501,502	)		(14,546,060	)		(5,470,440	)
Decrease in net assets resulting from distributions to shareholders		(2,189,407	)		(2,501,502	)		(14,546,060	)		(5,470,440	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(59,194,873	)		140,659,007			90,027,203			33,823,621
NET ASSETS
Total increase (decrease) in net assets		(158,257,311	)		125,138,290			56,376,824			124,077,305
Beginning of year		391,246,669			266,108,379			347,259,157			223,181,852
End of year	$	232,989,358		$	391,246,669		$	403,635,981		$	347,259,157
Undistributed net investment income included in net assets at end of year	$	159,655		$	562,406		$	3,206,084		$	1,573,871

See notes to financial statements.

F I N A N C I A L   S  T A T E M E N T S 37

Statements of Changes in Net Assets  (continued)

	iShares MSCI Global Silver Miners ETF
	Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	567,136		$	537,789
Net realized gain (loss)		(3,089,345	)		583,646
Net change in unrealized appreciation (depreciation)		(15,232,129	)		(13,353,209	)
Net decrease in net assets resulting from operations		(17,754,338	)		(12,231,774	)
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(528,302	)		(1,593,868	)
Decrease in net assets resulting from distributions to shareholders		(528,302	)		(1,593,868	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		4,601,395			(8,994,345	)
NET ASSETS
Total decrease in net assets		(13,681,245	)		(22,819,987	)
Beginning of year		64,258,050			87,078,037
End of year	$	50,576,805		$	64,258,050
Distributions in excess of net investment income included in net assets at end of year	$	(266,371	)	$	(670,207	)

See notes to financial statements.

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Financial Highlights

(For a share outstanding throughout each period)

	iShares MSCI Global Agriculture Producers ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	27.08		$	24.31		$	24.03		$	27.29		$	24.63
Net investment income(a)		0.53			0.45			0.54			0.50			0.58
Net realized and unrealized gain (loss)(b)		2.03			2.81			0.27			(3.21	)		2.63
Net increase (decrease) from investment operations		2.56			3.26			0.81			(2.71	)		3.21
Distributions(c)
From net investment income		(0.49	)		(0.49	)		(0.53	)		(0.55	)		(0.55	)
Total distributions		(0.49	)		(0.49	)		(0.53	)		(0.55	)		(0.55	)
Net asset value, end of year	$	29.15		$	27.08		$	24.31		$	24.03		$	27.29
Total Return
Based on net asset value		9.49	%		13.53	%		3.55	%		(10.11	)%		13.05	%
Ratios to Average Net Assets
Total expenses		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Total expenses after fees waived		0.37	%		0.37	%		0.38	%		0.38	%		0.38	%
Net investment income		1.84	%		1.76	%		2.38	%		1.87	%		2.17	%
Supplemental Data
Net assets, end of year (000)	$	33,521		$	28,434		$	27,951		$	27,640		$	46,395
Portfolio turnover rate(d)		25	%		16	%		7	%		10	%		14	%

^(a) Based on average shares outstanding.

^(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 39

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	iShares MSCI Global Energy Producers ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	18.57		$	18.72		$	17.67		$	28.06		$	24.06
Net investment income(a)		0.64			0.60			0.59			0.68			0.68
Net realized and unrealized gain (loss)(b)		4.23			(0.16	)		1.00			(10.61	)		3.96
Net increase (decrease) from investment operations		4.87			0.44			1.59			(9.93	)		4.64
Distributions(c)
From net investment income		(0.64	)		(0.59	)		(0.54	)		(0.46	)		(0.64	)
Total distributions		(0.64	)		(0.59	)		(0.54	)		(0.46	)		(0.64	)
Net asset value, end of year	$	22.80		$	18.57		$	18.72		$	17.67		$	28.06
Total Return
Based on net asset value		26.48	%		2.26	%		9.31	%		(35.63	)%		19.44	%
Ratios to Average Net Assets
Total expenses		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income		2.93	%		3.10	%		3.36	%		3.23	%		2.57	%
Supplemental Data
Net assets, end of year (000)	$	47,889		$	31,568		$	37,440		$	24,739		$	8,419
Portfolio turnover rate(d)		5	%		4	%		6	%		4	%		8	%

^(a) Based on average shares outstanding.

^(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) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights   (continued)

(For a share outstanding throughout each period)

	iShares MSCI Global Gold Miners ETF
		Year Ended 08/31/18			Year Ended 08/31/17	(a)		Year Ended 08/31/16	(a)		Year Ended 08/31/15	(a)		Year Ended 08/31/14	(a)
Net asset value, beginning of year	$	19.96		$	21.20		$	11.13		$	22.53		$	23.20
Net investment income(b)		0.10			0.06			0.02			0.14			0.16
Net realized and unrealized gain (loss)(c)		(5.51	)		(1.04	)		10.11			(11.42	)		(0.67	)
Net increase (decrease) from investment operations		(5.41	)		(0.98	)		10.13			(11.28	)		(0.51	)
Distributions(d)
From net investment income		(0.12	)		(0.26	)		(0.06	)		(0.12	)		(0.16	)
Total distributions		(0.12	)		(0.26	)		(0.06	)		(0.12	)		(0.16	)
Net asset value, end of year	$	14.43		$	19.96		$	21.20		$	11.13		$	22.53
Total Return
Based on net asset value		(27.22	)%		(4.30	)%		91.17	%		(50.16	)%		(2.01	)%
Ratios to Average Net Assets
Total expenses		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income		0.56	%		0.38	%		0.06	%		0.88	%		0.81	%
Supplemental Data
Net assets, end of year (000)	$	232,989		$	391,247		$	266,108		$	45,926		$	70,976
Portfolio turnover rate(e)		4	%		26	%		30	%		20	%		22	%

^(a)  Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 41

Financial Highlights   (continued)

(For a share outstanding throughout each period)

	iShares MSCI Global Metals & Mining Producers ETF
		Year Ended 08/31/18			Year Ended 08/31/17	(a)		Year Ended 08/31/16	(a)		Year Ended 08/31/15	(a)		Year Ended 08/31/14	(a)
Net asset value, beginning of year	$	31.86		$	21.67		$	21.30		$	40.37		$	36.23
Net investment income(b)		1.06			0.53			0.42			1.62			1.00
Net realized and unrealized gain (loss)(c)		(1.05	)		10.26			0.41			(17.91	)		4.44
Net increase (decrease) from investment operations		0.01			10.79			0.83			(16.29	)		5.44
Distributions(d)
From net investment income		(0.94	)		(0.60	)		(0.46	)		(2.78	)		(1.30	)
Total distributions		(0.94	)		(0.60	)		(0.46	)		(2.78	)		(1.30	)
Net asset value, end of year	$	30.93		$	31.86		$	21.67		$	21.30		$	40.37
Total Return
Based on net asset value		(0.10	)%		50.55	%		4.52	%		(41.94	)%		15.32	%
Ratios to Average Net Assets
Total expenses		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Total expenses after fees waived		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income		3.15	%		2.31	%		2.16	%		5.18	%		2.53	%
Supplemental Data
Net assets, end of year (000)	$	403,636		$	347,259		$	223,182		$	69,219		$	183,699
Portfolio turnover rate(e)		14	%		12	%		8	%		17	%		18	%

^(a)  Per share amounts reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights   (continued)

(For a share outstanding throughout each period)

	iShares MSCI Global Silver Miners ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	11.47		$	13.61		$	6.14		$	12.70		$	13.92
Net investment income(a)		0.10			0.09			0.05			0.05			0.08
Net realized and unrealized gain (loss)(b)		(3.05	)		(1.94	)		7.44			(6.42	)		(1.15	)
Net increase (decrease) from investment operations		(2.95	)		(1.85	)		7.49			(6.37	)		(1.07	)
Distributions(c)
From net investment income		(0.09	)		(0.29	)		(0.02	)		(0.19	)		(0.15	)
Total distributions		(0.09	)		(0.29	)		(0.02	)		(0.19	)		(0.15	)
Net asset value, end of year	$	8.43		$	11.47		$	13.61		$	6.14		$	12.70
Total Return
Based on net asset value		(25.87	)%		(13.26	)%		122.11	%		(50.51	)%		(7.48	)%
Ratios to Average Net Assets
Total expenses		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Net investment income		0.94	%		0.79	%		0.47	%		0.57	%		0.63	%
Supplemental Data
Net assets, end of year (000)	$	50,577		$	64,258		$	87,078		$	12,279		$	13,975
Portfolio turnover rate(d)		19	%		14	%		27	%		31	%		22	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d) Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 43

Notes to Financial Statements

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

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

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the statement of assets and liabilities.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

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Notes to Financial Statements   (continued)

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

• Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or 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 may be valued at the last traded price.

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

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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

N O T E S    T O    F I N A N C I A L    S  T A T E M E N T S 45

Notes to Financial Statements   (continued)

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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
MSCI Global Agriculture Producers
Citigroup Global Markets Inc.	$	98,855	$	98,855		$	—	$	—
Credit Suisse Securities (USA) LLC		69,042		69,042			—		—
Goldman Sachs & Co.		15,249		15,249			—		—
JPMorgan Securities LLC		26,488		26,488			—		—
Merrill Lynch, Pierce, Fenner & Smith		2,438		2,438			—		—
Morgan Stanley & Co. International PLC		10,233		10,233			—		—
Morgan Stanley & Co. LLC		42,562		42,562			—		—
Scotia Capital (USA) Inc.		4,809		4,809			—		—
SG Americas Securities LLC		20,838		20,838			—		—
	$	290,514	$	290,514		$	—	$	—
MSCI Global Energy Producers
BNP Paribas Prime Brokerage International Ltd.	$	97,393	$	97,393		$	—	$	—
BNP Paribas Securities Corp.		86,526		86,526			—		—
Citigroup Global Markets Inc.		29,173		29,173			—		—
Credit Suisse Securities (USA) LLC		49,351		49,351			—		—
Goldman Sachs & Co.		109,023		109,023			—		—
HSBC Bank PLC		4,471		4,471			—		—
JPMorgan Securities LLC		94,089		94,089			—		—
Merrill Lynch, Pierce, Fenner & Smith		43,473		43,473			—		—
Morgan Stanley & Co. LLC		7,958		7,958			—		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		2,978		2,978			—		—
Scotia Capital (USA) Inc.		1,716		1,716			—		—
	$	526,151	$	526,151		$	—	$	—
MSCI Global Gold Miners
Credit Suisse Securities (USA) LLC	$	598,956	$	598,956		$	—	$	—
JPMorgan Securities LLC		1,390,889		1,390,889			—		—
Merrill Lynch, Pierce, Fenner & Smith		305,455		305,455			—		—
Mizuho Securities USA Inc.		93,843		93,843			—		—
Morgan Stanley & Co. LLC		1,138,978		1,131,701			—		(7,277	)(b)
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		514,292		514,292			—		—
Scotia Capital (USA) Inc.		2,125,849		2,125,849			—		—
State Street Bank & Trust Company		1,178,040		1,178,040			—		—
Wells Fargo Securities LLC		629,234		629,234			—		—
	$	7,975,536	$	7,968,259		$	—	$	(7,277	)

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Notes to Financial Statements   (continued)

iShares ETF and Counterparty		Market Value of Securities on Loan		Cash Collateral Received	(a)		Non-Cash Collateral Received		Net Amount
MSCI Global Metals & Mining Producers
BMO Capital Markets	$	8,400	$	8,400		$	—	$	—
BNP Paribas Prime Brokerage International Ltd.		1,214,251		1,208,448			—		(5,803	)(b)
Citigroup Global Markets Inc.		5,867		5,867			—		—
Credit Suisse Securities (USA) LLC		4,269,587		4,269,587			—		—
Deutsche Bank Securities Inc.		33,041		33,041			—		—
JPMorgan Securities LLC		2,873,490		2,873,490			—		—
Macquarie Bank Limited		739,536		739,536			—		—
Merrill Lynch, Pierce, Fenner & Smith		230,356		230,356			—		—
Morgan Stanley & Co. LLC		2,088,488		2,088,488			—		—
Scotia Capital (USA) Inc.		179,027		179,027			—		—
SG Americas Securities LLC		62,287		62,287			—		—
State Street Bank & Trust Company		93,564		93,564			—		—
UBS AG		435,969		435,969			—		—
UBS Securities LLC		6,976		6,976			—		—
	$	12,240,839	$	12,235,036		$	—	$	(5,803	)
MSCI Global Silver Miners
Barclays Bank PLC	$	422,592	$	422,592		$	—	$	—
Barclays Capital Inc.		5,262		5,262			—		—
BMO Capital Markets		221,038		221,038			—		—
Citigroup Global Markets Inc.		500,320		500,320			—		—
Credit Suisse Securities (USA) LLC		1,223,812		1,223,812			—		—
Goldman Sachs & Co.		708,864		708,864			—		—
JPMorgan Securities LLC		1,248,847		1,248,847			—		—
Merrill Lynch, Pierce, Fenner & Smith		160,396		160,396			—		—
Morgan Stanley & Co. LLC		61,236		61,236			—		—
Scotia Capital (USA) Inc.		1,710,824		1,710,824			—		—
State Street Bank & Trust Company		75,533		75,533			—		—
UBS AG		651,314		651,314			—		—
	$	6,990,038	$	6,990,038		$	—	$	—

^(a)  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.

^(b)  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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee of 0.39%, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund.

Expense Waivers: A fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). For each of the iShares MSCI Global Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2023 in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.

Distributor: 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.

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Notes to Financial Statements   (continued)

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid     to BTC
MSCI Global Agriculture Producers	$	5,867
MSCI Global Energy Producers		2,088
MSCI Global Gold Miners		25,636
MSCI Global Metals & Mining Producers		68,092
MSCI Global Silver Miners		44,123

Officers and Directors: Certain officers and/or directors of the Company are officers and/or directors of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, 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	$	3,608	$	160,100
MSCI Global Energy Producers		103,145		38,880
MSCI Global Gold Miners		2,016,015		384,911
MSCI Global Metals & Mining Producers		1,190,838		2,359,763
MSCI Global Silver Miners		66,542		539,189

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 shown as dividends – affiliated in the statement of operations.

6. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
MSCI Global Agriculture Producers	$	8,498,303	$	7,974,496
MSCI Global Energy Producers		2,042,095		1,750,271
MSCI Global Gold Miners		16,341,117		13,941,843
MSCI Global Metals & Mining Producers		76,462,923		65,516,835
MSCI Global Silver Miners		11,338,712		11,434,702

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Notes to Financial Statements   (continued)

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind Sales
MSCI Global Agriculture Producers	$	3,891,799	$	1,335,854
MSCI Global Energy Producers		11,133,019		1,990,225
MSCI Global Gold Miners		72,582,940		134,866,673
MSCI Global Metals & Mining Producers		272,759,380		193,661,493
MSCI Global Silver Miners		9,352,535		4,751,652

7. INCOME TAX INFORMATION

Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

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. As of August 31, 2018, the following permanent differences 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 (Distributions in Excess of) Net Investment Income			Accumulated Net Realized Gain (Loss)
MSCI Global Agriculture Producers	$	280,214	$	4,920		$	(285,134	)
MSCI Global Energy Producers		292,682		2,488			(295,170	)
MSCI Global Gold Miners		3,620,846		(56,577	)		(3,564,269	)
MSCI Global Metals & Mining Producers		38,515,063		644,637			(39,159,700	)
MSCI Global Silver Miners		45,440		365,002			(410,442	)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
MSCI Global Agriculture Producers
Ordinary income	$	539,577	$	561,907
MSCI Global Energy Producers
Ordinary income	$	1,078,574	$	1,091,944
MSCI Global Gold Miners
Ordinary income	$	2,189,407	$	2,501,502
MSCI Global Metals & Mining Producers
Ordinary income	$	14,546,060	$	5,470,440
MSCI Global Silver Miners
Ordinary income	$	528,302	$	1,593,868

As of August 31, 2018, 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
MSCI Global Agriculture Producers	$	179,076	$	(1,212,896	)	$	(19,475	)	$	(1,053,295	)
MSCI Global Energy Producers		287,274		(1,630,024	)		2,218,800			876,050
MSCI Global Gold Miners		159,655		(30,033,150	)		(104,506,061	)		(134,379,556	)
MSCI Global Metals & Mining Producers		3,766,547		(27,282,543	)		(31,866,022	)		(55,382,018	)
MSCI Global Silver Miners		—		(11,160,122	)		(17,487,611	)		(28,647,733	)

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Notes to Financial Statements   (continued)

^(a)  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.

As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:

iShares ETF		Non-Expiring
MSCI Global Agriculture Producers	$	1,212,896
MSCI Global Energy Producers		1,630,024
MSCI Global Gold Miners		30,033,150
MSCI Global Metals & Mining Producers		27,282,543
MSCI Global Silver Miners		11,160,122

For the year ended August 31, 2018, the iShares MSCI Global Agriculture Producers ETF utilized $651,748 of its capital loss carryforwards.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF		Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
MSCI Global Agriculture Producers	$	33,763,153	$	3,803,219	$	(3,821,518	)	$	(18,299	)
MSCI Global Energy Producers		46,022,697		5,579,823		(3,360,356	)		2,219,467
MSCI Global Gold Miners		345,386,404		5,869,193		(110,371,422	)		(104,502,229	)
MSCI Global Metals & Mining Producers		446,167,369		21,528,240		(53,332,017	)		(31,803,777	)
MSCI Global Silver Miners		75,554,716		1,363,580		(18,851,455	)		(17,487,875	)

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

8. LINE OF CREDIT

The iShares MSCI Global Agriculture Producers, iShares MSCI Global Energy Producers and iShares MSCI Global Metals & Mining Producers ETFs, along with certain other iShares funds, are parties to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. 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 MSCI Global Energy Producers ETF and iShares MSCI Global Metals & Mining Producers ETF did not borrow under the credit agreement during the year ended August 31, 2018.

For the year ended August 31, 2018, the maximum amount borrowed, the average borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

iShares ETF	Maximum Amount Borrowed	Average Borrowing	Weighted Average Interest Rates
MSCI Global Agriculture Producers	$750,000	$  14,384	3.03	%

At a meeting held on September 12-13, 2018, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $300 million and (ii) extending the expiration date to October 23, 2019. These changes to the credit agreement are expected to be effective on or around October 25, 2018.

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Notes to Financial Statements  (continued)

9. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

10. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Global Agriculture Producers
Shares sold		150,000		$	4,376,651			200,000		$	4,945,056
Shares redeemed		(50,000	)		(1,430,828	)		(300,000	)		(7,619,400	)
Net increase (decrease)		100,000		$	2,945,823			(100,000	)	$	(2,674,344	)
MSCI Global Energy Producers
Shares sold		500,000		$	11,572,019			—		$	513
Shares redeemed		(100,000	)		(2,061,598	)		(300,000	)		(5,647,790	)
Net increase (decrease)		400,000		$	9,510,421			(300,000	)	$	(5,647,277	)
MSCI Global Gold Miners
Shares sold		4,250,000		$	76,199,350			16,300,000	(a)	$	302,448,527
Shares redeemed		(7,700,000	)		(135,394,223	)		(9,250,000	)(a)		(161,789,520	)
Net increase (decrease)		(3,450,000	)	$	(59,194,873	)		7,050,000		$	140,659,007

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Notes to Financial Statements  (continued)

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
MSCI Global Metals & Mining Producers
Shares sold		9,100,000		$	313,480,901			7,300,000	(a)	$	181,847,994
Shares redeemed		(6,950,000	)		(223,453,698	)		(6,700,000	)(a)		(148,024,373	)
Net increase		2,150,000		$	90,027,203			600,000		$	33,823,621
MSCI Global Silver Miners
Shares sold		900,000		$	9,366,685			300,000		$	3,458,260
Shares redeemed		(500,000	)		(4,765,290	)		(1,100,000	)		(12,452,605	)
Net increase (decrease)		400,000		$	4,601,395			(800,000	)	$	(8,994,345	)

^(a) Share transactions reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016.

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the statement of assets and liabilities.

11. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

12. 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 additional disclosure in the financial statements.

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Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders 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

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, 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 (five of the funds constituting iShares, Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the two years in the period ended August 31, 2018, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2018 and each of the financial highlights for each of the five years in the period ended August 31, 2018 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information (unaudited)

For corporate shareholders, the percentage of ordinary income distributions paid during the fiscal year ended August 31, 2018 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends-Received Deduction
MSCI Global Agriculture Producers		38.44	%
MSCI Global Energy Producers		40.91	%
MSCI Global Gold Miners		30.06	%
MSCI Global Metals & Mining Producers		6.10	%
MSCI Global Silver Miners		2.50	%

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend   Income
MSCI Global Agriculture Producers	$	621,945
MSCI Global Energy Producers		1,246,666
MSCI Global Gold Miners		2,383,833
MSCI Global Metals & Mining Producers		16,029,004
MSCI Global Silver Miners		643,259

For the fiscal year ended August 31, 2018, 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
MSCI Global Agriculture Producers	$	467,273	$	57,408
MSCI Global Energy Producers		814,082		64,295
MSCI Global Gold Miners		2,612,298		170,063
MSCI Global Metals & Mining Producers		16,998,069		774,725
MSCI Global Silver Miners		650,673		42,509

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Board Review and Approval of Investment Advisory Contract

I. 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

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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

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

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Board Review and Approval of Investment Advisory Contract (continued)

Costs of Services Provided to Fund and Profits Realized by BFA and its Affiliates - The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds did not provide for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that a breakpoint structure for the Funds may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates - The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion - Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

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Supplemental Information (unaudited)

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 Global Agriculture Producers	$	0.491000	$	—	$	—	$	0.491000		100	%		—	%		—	%		100	%
MSCI Global Energy Producers		0.640365		—		—		0.640365		100			—			—			100
MSCI Global Metals & Mining Producers		0.944697		—		—		0.944697		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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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 Global Agriculture Producers ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5% and Less than 2.0%		1		0.07	%
Greater than 1.0% and Less than 1.5%		15		1.08
Greater than 0.5% and Less than 1.0%		299		21.60
Greater than 0.0% and Less than 0.5%		474		34.25
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		497		35.92
Less than –0.5% and Greater than –1.0%		81		5.85
Less than –1.0% and Greater than –1.5%		5		0.36
		1,384		100.00	%

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Supplemental Information (unaudited) (continued)

iShares MSCI Global Energy Producers ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 6.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		9		0.65
Greater than 1.5% and Less than 2.0%		18		1.30
Greater than 1.0% and Less than 1.5%		65		4.70
Greater than 0.5% and Less than 1.0%		221		15.97
Greater than 0.0% and Less than 0.5%		421		30.42
At NAV		20		1.45
Less than 0.0% and Greater than –0.5%		564		40.74
Less than –0.5% and Greater than –1.0%		60		4.34
Less than –1.0% and Greater than –1.5%		2		0.14
		1,384		100.00	%

iShares MSCI Global Gold Miners ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.5% and Less than 6.0%		1		0.07	%
Greater than 3.5% and Less than 4.0%		2		0.14
Greater than 3.0% and Less than 3.5%		2		0.14
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		10		0.72
Greater than 1.0% and Less than 1.5%		35		2.53
Greater than 0.5% and Less than 1.0%		223		16.11
Greater than 0.0% and Less than 0.5%		594		42.93
At NAV		17		1.23
Less than 0.0% and Greater than –0.5%		385		27.83
Less than –0.5% and Greater than –1.0%		75		5.42
Less than –1.0% and Greater than –1.5%		23		1.66
Less than –1.5% and Greater than –2.0%		3		0.22
Less than –2.0% and Greater than –2.5%		5		0.36
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –6.0%		2		0.14
		1,384		100.00	%

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Supplemental Information (unaudited) (continued)

iShares MSCI Global Metals & Mining Producers ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		2		0.14	%
Greater than 2.0% and Less than 2.5%		7		0.51
Greater than 1.5% and Less than 2.0%		43		3.11
Greater than 1.0% and Less than 1.5%		168		12.14
Greater than 0.5% and Less than 1.0%		337		24.36
Greater than 0.0% and Less than 0.5%		440		31.77
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		262		18.93
Less than –0.5% and Greater than –1.0%		78		5.64
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 –3.0% and Greater than –3.5%		1		0.07
Less than –6.0%		3		0.22
		1,384		100.00	%

iShares MSCI Global Silver Miners ETF

Period Covered: January 01, 2013 through June 30, 2018

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%		2		0.14
Greater than 2.5% and Less than 3.0%		8		0.58
Greater than 2.0% and Less than 2.5%		24		1.73
Greater than 1.5% and Less than 2.0%		36		2.60
Greater than 1.0% and Less than 1.5%		104		7.51
Greater than 0.5% and Less than 1.0%		322		23.27
Greater than 0.0% and Less than 0.5%		513		37.08
At NAV		8		0.58
Less than 0.0% and Greater than –0.5%		291		21.03
Less than –0.5% and Greater than –1.0%		42		3.03
Less than –1.0% and Greater than –1.5%		25		1.81
Less than –1.5% and Greater than –2.0%		5		0.36
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.0% and Greater than –3.5%		1		0.07
		1,384		100.00	%

S U P P L E M E N T  A L  I N F O R M A T I  O N 59

Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^(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. and its affiliates.

^(b) Mark K. 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.

Independent Directors
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information  (continued)

Independent Directors (continued)
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001- 2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).
		Officers
Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

D I R E C T O R    A N D    O F F I C E R     I N F O R M A T I O N 61

General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

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Glossary of Terms Used in this Report

Portfolio Abbreviations - Equity

ADR	American Depositary Receipt
GDR	Global Depositary Receipt
NVDR	Non-Voting Depositary Receipt
NVS	Non-Voting Shares

G L O S S A R Y    O F    T E R M S    U  S E D    I N    T H I S    R E P O R T 63

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

	This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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. ©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

AUGUST 31, 2018

2018 ANNUAL REPORT

iShares, Inc.

u iShares Edge MSCI Min Vol Emerging Markets ETF  |  EEMV  |  Cboe BZX

u iShares Edge MSCI Min Vol Global ETF  |  ACWV  |  Cboe BZX

u iShares Edge MSCI Multifactor Emerging Markets ETF  |  EMGF  |  Cboe BZX

u iShares MSCI EM ESG Optimized ETF  |  ESGE  |  NASDAQ

u iShares MSCI Emerging Markets ex China ETF  |  EMXC  |  NASDAQ

Table of Contents

	Page
Market Overview		5
Fund Summary		6
About Fund Performance		16
Shareholder Expenses		16
Schedules of Investments		17
Financial Statements
Statements of Assets and Liabilities		43
Statements of Operations		45
Statements of Changes in Net Assets		47
Financial Highlights		50
Notes to Financial Statements		55
Report of Independent Registered Public Accounting Firm		66
Important Tax Information (Unaudited)		67
Board Review and Approval of Investment Advisory Contract		68
Supplemental Information		76
Director and Officer Information		80
General Information		82
Glossary of Terms Used in this Report		83

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced for the 12 months ended August 31, 2018 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 11.41% in U.S. dollar terms for the reporting period.

Global stocks rallied sharply from the beginning of the reporting period through January 2018. Improving global economic growth drove the advance — particularly in the U.S., Europe, Japan, and China — along with rising corporate profits across most regions of the world. By the end of 2017, global corporate earnings estimates for 2018 accelerated at their fastest pace in more than a decade.

However, global equity markets grew increasingly volatile during the latter half of the reporting period. While the U.S. economy continued to strengthen, economic growth in other regions of the globe slowed. In addition, rising interest rates and signs of higher inflation weighed on global stocks. Late in the reporting period, escalating trade tensions between the U.S. and several of its trading partners (particularly China), as well as geopolitical developments in Turkey and the Middle East, contributed to further economic concerns and heightened volatility in global equity markets.

U.S. stocks outpaced equity markets in other regions of the world for the reporting period. The U.S. market benefited from a stronger domestic economy; the unemployment rate reached an 18-year low in May 2018, while manufacturing activity increased meaningfully and consumer spending rose steadily throughout 2018. Tax reform legislation, passed in December 2017, lowered corporate tax rates and contributed to record profit growth for U.S. companies. As the economy strengthened, inflation in the U.S. increased to its fastest rate in more than six years. In response, the U.S. Federal Reserve Bank (“Fed”) raised short-term interest rates three times during the reporting period, pushing the Fed’s short-term rate target to its highest level in a decade.

Outside of the U.S., equity markets in the Asia-Pacific region posted the strongest returns. Japanese stocks led the advance in the region as the nation’s economy had its longest sustained expansion in more than 20 years. Australia’s stock market was also a solid performer, benefiting from increased economic activity as exports surged, especially to China, and prices for commodities such as oil and metals rose.

European stock markets trailed other developed markets for the reporting period. Equity market gains in Europe were tempered by slowing economic growth and trade tariff concerns during the last half of the reporting period. Nonetheless, the European Central Bank (“ECB”) announced plans to end its quantitative easing measures by the end of 2018, indicating that it believes the worst of the European economic downturn is over. On a country basis, the strongest performing markets in Europe were France, Finland, and Norway, while Spain and Belgium trailed.

In contrast to the broad advance in developed equity markets, emerging markets declined modestly for the reporting period. After a strong advance in late 2017 and early 2018, emerging markets declined sharply over the last six months of the reporting period. Rising global interest rates, a stronger U.S. dollar, and trade tensions led to reduced expectations for growth and corporate profits in emerging economies. Equity markets in Brazil, Turkey, and Greece declined the most, while the strongest performing emerging markets included Thailand, Qatar, and the Czech Republic.

M A R K E T  O V E R V I E W 5

Fund Summary as of August 31, 2018 iShares^® Edge MSCI Min Vol Emerging Markets ETF

Investment Objective

The iShares Edge MSCI Min Vol Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader emerging equity markets, as represented by the MSCI Emerging Markets Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		4.70	%		3.85	%		5.25	%		4.70	%		20.78	%		42.18	%
Fund Market		4.36			4.01			5.23			4.36			21.71			41.95
Index		5.00			4.07			5.50			5.00			22.06			44.41

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.

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.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
	$       1,000.00	$	964.10	$	1.24		$	1,000.00	$	1,023.90	$	1.28		0.25	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® Edge MSCI Min Vol Emerging Markets ETF

Portfolio Management Commentary

Low volatility stocks in China, where steady growth continued despite trade tensions with the U.S., contributed the most to the Index’s return for the reporting period. Rising consumer spending supported domestically oriented Chinese stocks, while pharmaceutical companies benefited from reforms that hastened the drug approval process.

Indian stocks were solid contributors to the Index’s return, as strong economic growth and an influx of foreign investment supported the equity market. Continued privatization of the banking industry, along with the growing spending power of middle-income consumers, also helped Indian stocks. Stocks in Malaysia and Taiwan also contributed to the Index’s return. Malaysian equities benefited from higher oil prices and strength among banks, while stocks in Taiwan advanced on higher demand for electronic components. On the downside, Brazilian stocks detracted from the Index’s performance due to political and economic uncertainty.

From a sector perspective, financials was the leading contributor to the Index’s return. Banks, which benefited from higher asset quality and loan growth, drove the sector’s advance. The healthcare sector, also a key source of strength, was led by the pharmaceuticals and the healthcare and life sciences industries amid increasing demand for medications and services from the growing elderly population. On the downside, the telecommunication services sector was pressured by increased competition and detracted from the Index’s return.

The Index seeks lower volatility than the broader market with returns in line with the market over the long term. Minimum volatility strategies also tend to outperform during periods of elevated volatility and underperform during periods of low volatility. Volatility in emerging markets increased sharply during the reporting period, with trade tensions, political risk, and a strengthening U.S. dollar contributing to uncertainty among investors. In that environment, the Index outperformed the broader market, as represented by the MSCI Emerging Markets Index.

Relative to the broader market, the Index’s positioning in China was the largest contributor to return. The Index’s slight underweight position in Turkey also contributed to the Index’s performance, while the mix of stocks held in Thailand were slight relative detractors. From an industry perspective, overweight positions in the Index to the pharmaceuticals and the life sciences tool and services industries, which benefited from strength in the healthcare sector, contributed to relative return. The Index’s banking stocks also contributed to relative return, while an underweight position to the oil, gas, and consumable fuels industry detracted from relative performance.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Financials	25.2	%
Information Technology	22.7
Consumer Staples	11.4
Telecommunication Services	9.1
Utilities	7.5
Health Care	6.2
Industrials	5.5
Consumer Discretionary	5.5
Energy	3.5
Materials	2.6
Real Estate	0.8

TEN LARGEST COUNTRIES
Country	Percent of Total Investments	(a)
China	26.3	%
Taiwan	16.3
South Korea	9.9
India	9.2
Malaysia	7.2
Thailand	7.0
Indonesia	4.6
Chile	3.1
Philippines	2.9
Qatar	2.6

^(a)  Excludes money market funds.

F U N D  S U M M A R Y 7

Fund Summary as of August 31, 2018 iShares^® Edge MSCI Min Vol Global ETF

Investment Objective

The iShares Edge MSCI Min Vol Global ETF (the “Fund”) seeks to track the investment results of an index composed of developed and emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader developed and emerging equity markets, as represented by the MSCI ACWI Minimum Volatility (USD) Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

	Average Annual Total Returns									Cumulative Total Returns
	1 Year			5 Years			Since Inception			1 Year			5 Years			Since Inception
Fund NAV		9.56	%		10.25	%		10.82	%		9.56	%		62.89	%		102.68	%
Fund Market		9.20			10.26			10.78			9.20			62.93			102.11
Index		9.39			10.02			10.56			9.39			61.18			99.30

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.

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 page16 for more information.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	1,051.60	$	1.03		$	1,000.00	$	1,024.20	$	1.02		0.20	%

(a) Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® Edge MSCI Min Vol Global ETF

Portfolio Management Commentary

Low volatility stocks in the U.S., which made up 57% of the Index’s weight on average for the reporting period, contributed the majority of the Index’s return. A strong economy, low unemployment, and robust consumer spending supported the advance of U.S. stocks. Additionally, a lower corporate tax rate bolstered earnings growth of U.S. companies.

Japanese stocks contributed modestly to the Index’s return. Steady economic growth, stimulative government policies, and low interest rates favored Japanese equities. Companies from China and Hong Kong, helped by Chinese economic expansion, also contributed to the Index’s performance despite concerns about a possible U.S. trade war.

From a sector perspective, information technology contributed the most to the Index’s return, with the software and services industry advancing amid increased adoption of cloud-based computing and the move to platform-based subscription models. Growing demand for pharmaceuticals and healthcare equipment and supplies by the increasing number of elderly patients benefited the healthcare sector, which was a solid contributor to the Index’s return. The financials, industrials, and consumer discretionary sectors, buoyed by an improving world economy, also contributed to the Index’s performance.

The Index seeks lower volatility than the broader market with returns in line with the market over the long term. Minimum volatility strategies tend to outperform during periods of elevated volatility and underperform during periods of low volatility. Volatility in developed markets remained relatively low for most of the reporting period, while volatility in emerging markets increased, largely due to trade tensions and political uncertainty. Overall, world market volatility was relatively modest. In that environment, the Index slightly underperformed the broader market, as represented by the MSCI ACWI Index.

From a country perspective, U.S. stocks held by the Index detracted from relative performance, while German stocks were modest contributors. From an industry perspective, underweight positions in the Index to the internet and direct marketing retail industry and the oil, gas, and consumable fuels industry weighed on relative performance as these industries posted strong returns during the reporting period. On the upside, the mix of stocks in the banks industry and an overweight position in the Index to the information technology services industry benefited relative performance.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Information Technology	15.1	%
Health Care	13.7
Financials	13.6
Consumer Staples	12.7
Industrials	11.0
Consumer Discretionary	9.0
Utilities	8.2
Telecommunication Services	7.7
Real Estate	4.8
Materials	2.4
Energy	1.8

TEN LARGEST COUNTRIES
Country	Percent of Total Investments	(a)
United States	57.0	%
Japan	12.3
Switzerland	4.7
Taiwan	3.9
Hong Kong	3.6
Canada	2.7
China	2.7
India	2.2
Denmark	1.2
Singapore	1.2

^(a)  Excludes money market funds.

F U N D  S U M M A R Y 9

Fund Summary as of August 31, 2018 iShares^® Edge MSCI Multifactor Emerging Markets ETF

Investment Objective

The iShares Edge MSCI Multifactor Emerging Markets ETF (the “Fund”) 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.

Performance

	Average Annual Total Returns						Cumulative Total Returns
	1 Year			Since Inception			1 Year			Since Inception
Fund NAV		(0.65	)%		12.78	%		(0.65	)%		38.93	%
Fund Market		(1.56	)		12.69			(1.56	)		38.63
Index		(2.14	)		12.82			(2.14	)		38.99

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 12/8/15. The first day of secondary market trading was 12/10/15.

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.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	880.60	$	2.04		$	1,000.00	$	1,023.00	$	2.19		0.43	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® Edge MSCI Multifactor Emerging Markets ETF

Portfolio Management Commentary

South Korean stocks were the largest detractors from the Index’s return for the reporting period. Trade tensions between the U.S. and China weighed on stocks in export-heavy South Korea, as investors feared South Korean companies would be impacted by regional trade disruptions.

Political turmoil rattled equity markets in Brazil, another significant detractor from the Index’s performance. Economic interventions taken in the wake of a disruptive transport strike and uncertainty surrounding the upcoming presidential election negatively impacted Brazilian companies. Despite a robust economy, Indian equities also detracted from the Index’s return due to the declining Indian rupee and weakness in the construction machinery and heavy trucks industry.

On the upside, stocks in China, where steady growth continued despite the threat of a trade war with the U.S., were the top contributors to the Index’s return. Domestically oriented Chinese stocks were supported by growing consumer spending, and pharmaceutical companies benefited from reforms that hastened the drug approval process. Russian stocks, which benefited from higher oil prices, were another source of strength.

From a sector perspective, financials was the leading detractor from the Index’s return, as the rapid depreciation of the Turkish lira and the Brazilian real negatively impacted banks in those countries. The materials sector also detracted from the Index’s performance on weakness in the commodity chemicals industry amid competition from major oil companies.

The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, momentum contributed to the Index’s return while size, quality, and value detracted from the Index’s performance. For the reporting period, the Index outperformed the broader market, as represented by the MSCI Emerging Markets Index.

Relative to the broader market, the Index’s mix of stocks in China and an overweight allocation to Taiwan benefited relative performance, while positioning in South Korea and an underweight allocation to India detracted from relative return. From an industry perspective, the Index’s positioning in the pharmaceuticals industry and an underweight allocation to internet and direct marketing retail stocks contributed to relative return. Conversely, the Index’s positioning in the semiconductors and semiconductor equipment industry and an overweight allocation to electronic equipment, instruments, and components detracted from relative performance.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Information Technology	29.2	%
Financials	17.9
Consumer Discretionary	11.9
Industrials	7.8
Health Care	7.5
Materials	6.1
Energy	4.6
Consumer Staples	4.3
Real Estate	4.1
Exchanged-Traded Funds	3.3
Telecommunication Services	1.8
Utilities	1.5

TEN LARGEST COUNTRIES
Country	Percent of Total Investments	(a)
China	36.0	%
South Korea	19.2
Taiwan	14.1
Brazil	6.0
South Africa	5.8
India	3.4
Russia	3.2
Indonesia	3.1
Malaysia	2.2
United Arab Emirates	1.9

^(a)  Excludes money market funds.

F U N D  S U M M A R Y 11

Fund Summary as of August 31, 2018 iShares^® MSCI EM ESG Optimized ETF

Investment Objective

The iShares MSCI EM ESG Optimized ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities that have positive environmental, social and governance characteristics, as represented by the MSCI Emerging Markets Extended ESG Focus 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.

Special note: Effective on or around October 23, 2018, the Fund will change its name from iShares MSCI EM ESG Optimized ETF to iShares ESG MSCI EM ETF.

Performance

	Average Annual Total Returns						Cumulative Total Returns
	1 Year			Since Inception			1 Year			Since Inception
Fund NAV		(0.72	)%		15.82	%		(0.72	)%		37.70	%
Fund Market		(0.89	)		16.02			(0.89	)		38.23
Index(a)		(1.14	)		16.65			(1.14	)		39.72
MSCI Emerging Markets ESG Focus Index		(1.12	)		16.66			(1.12	)		39.75
MSCI Emerging Markets Extended ESG Focus Index(b)		N/A			N/A			N/A			N/A

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.

^(a)  Index performance through May 31, 2018 reflects the performance of the MSCI Emerging Markets ESG Focus Index. Index performance beginning on June 1, 2018 reflects the performance of the MSCI Emerging Markets Extended ESG Focus Index, which, effective as of June 1, 2018, replaced the MSCI Emerging Markets ESG Focus Index as the underlying index of the Fund.

^(b)  The inception date of the MSCI Emerging Markets Extended ESG Focus Index was March 27, 2018. The cumulative total return of this index for the period March 27, 2018 through August 31, 2018 was -10.65%.

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.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	890.00	$	1.24		$	1,000.00	$	1,023.90	$	1.33		0.26	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI EM ESG Optimized ETF

Portfolio Management Commentary

Shareholders and investors are using environmental, social, and governance (“ESG”) reporting in emerging markets as a source of information on management practices distinct from financial reports. The heightened vulnerability of emerging markets countries to ESG-related issues has led shareholders to demand higher quality disclosures. Governmental policy is also influencing ESG practices. For example, the Chinese government is setting a timetable for mandatory ESG reporting by public companies, and Brazil is imposing new rules on ESG requirements for pension investments.

Brazilian equities detracted the most from the Index’s performance for the reporting period. Political uncertainty and the rapid depreciation of the Brazilian real adversely affected Brazilian companies. Chinese and Turkish stocks also detracted from the Index’s return, as trade tensions with the U.S. weighed on Chinese companies with positive ESG characteristics and a financial crisis dampened investor confidence in Turkey. On the upside, Taiwanese stocks contributed the most to the Index’s return, benefiting from demand for electronic components. India was another source of strength due to solid domestic spending and economic growth.

From a sector perspective, consumer discretionary was the largest detractor from the Index’s performance, as competition in the retail industry put pressure on profit margins. On the upside, the information technology sector strengthened amid an increase in worldwide information technology budgets.

In terms of relative performance, the Index slightly underperformed the broader market, as represented by the MSCI Emerging Markets Index, while tracking it relatively closely during the reporting period. Relative to the broader market, the ESG selection process leads to relatively minor overweight and underweight positions in stocks with higher or lower ESG characteristics, respectively. For the reporting period, the Index held underweight positions in the industrials and materials sectors and small overweight positions in the financials, information technology, and consumer staples sectors. The underweight position in the materials sector and the overweight position in the consumer staples sector were the primary detractors from the Index’s relative performance.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Information Technology	29.3	%
Financials	25.3
Consumer Discretionary	8.8
Energy	7.7
Consumer Staples	7.3
Materials	6.6
Telecommunication Services	4.1
Industrials	3.9
Health Care	2.8
Real Estate	2.5
Utilities	1.7

TEN LARGEST COUNTRIES
Country	Percent of Total Investments	(a)
China	28.0	%
South Korea	14.8
Taiwan	13.2
India	10.1
South Africa	6.9
Brazil	5.7
Thailand	3.5
Malaysia	3.4
Russia	3.1
Mexico	2.7

^(a)  Excludes money market funds.

F U N D  S U M M A R Y 13

Fund Summary as of August 31, 2018 iShares^® MSCI Emerging Markets ex China ETF

Investment Objective

The iShares MSCI Emerging Markets ex China ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, excluding China, as represented by the MSCI Emerging Markets ex China 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.

Performance

	Average Annual Total Returns					Cumulative Total Returns
		1 Year		Since Inception			1 Year		Since Inception
Fund NAV		(1.41	)%	0.36	%		(1.41	)%	0.40	%
Fund Market		(1.78	)	0.71			(1.78	)	0.80
Index		(0.86	)	0.94			(0.86	)	1.06

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

The inception date of the Fund was 7/18/17. The first day of secondary market trading was 7/20/17.

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.

Expense Example

Actual							Hypothetical 5% Return
	Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)		Beginning Account Value (03/01/18)		Ending Account Value (08/31/18)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
$	1,000.00	$	908.80	$	1.97		$	1,000.00	$	1,023.10	$	2.09		0.41	%

^(a)  Expenses are calculated using the Fund’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (184 days) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 16 for more information.

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Fund Summary as of August 31, 2018  (continued) iShares^® MSCI Emerging Markets ex China ETF  

Portfolio Management Commentary

The Brazilian equity market detracted the most from the Index’s return for the reporting period as the Brazilian real depreciated sharply against the U.S. dollar and public debt expanded significantly. In addition, Brazil’s economy slowed during the latter half of the reporting period as a nationwide truckers’ strike disrupted transportation.

Equity markets in Turkey and South Africa also weighed on the Index’s performance. In Turkey, sharply rising inflation, a significantly weaker Turkish lira, concerns about the government’s ability to control the currency crisis, and escalating political tensions with the U.S. led to an economic slowdown and steep market losses. Stocks in South Africa declined as the economy slipped into recession late in the reporting period and the South African rand weakened.

On the upside, stocks in Taiwan contributed the most to the Index’s return, driven largely by technology-related stocks. Solid global demand for semiconductors and electronic components boosted Taiwan’s export-driven economy.

Indian and South Korean equities also contributed to the Index’s return. In India, robust economic growth coupled with strong corporate earnings drove gains as the country recovered from the short-term setbacks of long-term reform measures. South Korean stocks advanced as strong demand for exports outweighed a domestic economic slowdown.

From a sector perspective, consumer discretionary was the largest detractor from the Index’s performance. Retailers and consumer durables companies faced a slowdown in consumer spending, while autos and components stocks were adversely affected by slowing sales and trade tensions.

Telecommunication services and financials stocks were also notable detractors from the Index’s return. Telecommunication services stocks declined amid intensifying price competition. Bank stocks led the decline in the financials sector, especially in Brazil and Turkey, where currency depreciation and potential economic crises weighed on the industry.

On the upside, information technology and energy stocks contributed to the Index’s performance. Within the information technology sector, investors’ expectations for growth rose amid an ongoing shift toward e-commerce, cloud computing, and mobile devices. Energy stocks advanced as crude oil prices rose during the reporting period, leading to higher revenues.

Portfolio Information

ALLOCATION BY SECTOR
Sector	Percent of Total Investments	(a)
Information Technology	20.9	%
Financials	20.4
Exchanged-Traded Funds	13.6
Materials	9.3
Consumer Discretionary	7.7
Consumer Staples	7.0
Energy	6.8
Industrials	4.6
Telecommunication Services	4.0
Health Care	2.2
Utilities	1.8
Real Estate	1.7

TEN LARGEST COUNTRIES
Country	Percent of Total Investments	(a)
South Korea	21.4	%
Taiwan	17.7
India	13.6
South Africa	9.0
Brazil	8.4
Russia	4.9
Mexico	4.5
Malaysia	3.5
Thailand	3.5
Indonesia	2.9

^(a)  Excludes money market funds.

F U N D  S U M M A R Y 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 ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of your 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 at the beginning of the period (or from the commencement of operations if less than 6 months) and held through the end of the period, is intended to help you understand your ongoing costs (in dollars and cents) of investing in your 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 under the heading entitled “Expenses Paid During the Period.”

Hypothetical Example for Comparison Purposes – The table also provides information about hypothetical account values and hypothetical expenses based on your 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.

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Consolidated Schedule of Investments     August 31, 2018 iShares^® Edge MSCI Min Vol Emerging Markets ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Brazil — 1.3%
Ambev SA		4,806,800	$	21,991,743
Cielo SA		1,953,316		7,158,824
Equatorial Energia SA		1,339,600		18,532,851
Raia Drogasil SA		709,200		13,254,144
				60,937,562
Chile — 3.1%
Aguas Andinas SA, Class A		45,083,056		24,270,302
Banco de Chile		437,927,849		63,355,790
Banco de Credito e Inversiones SA		105,065		6,726,731
Cia. Cervecerias Unidas SA		189,944		2,512,030
Colbun SA		19,432,350		4,109,524
Enel Americas SA		20,502,972		3,057,497
SACI Falabella		4,865,900		38,833,932
				142,865,806
China — 26.2%
3SBio Inc.(a)		1,970,000		3,759,839
51job Inc., ADR(b)		50,432		3,898,898
AAC Technologies Holdings Inc.		1,411,500		15,645,568
Agricultural Bank of China Ltd., Class H		74,860,000		36,243,040
Alibaba Group Holding Ltd., ADR(b)		327,020		57,231,770
ANTA Sports Products Ltd.		2,364,000		12,875,817
Autohome Inc., ADR		50,432		4,166,188
Baidu Inc., ADR(b)(c)		177,300		40,154,904
Bank of Beijing Co. Ltd., Class A		2,915,600		2,487,954
Bank of China Ltd., Class H		96,924,000		43,591,041
Bank of Communications Co. Ltd., Class A		5,122,540		4,213,737
Bank of Communications Co. Ltd., Class H		5,620,000		4,059,856
Beijing Capital International Airport Co. Ltd., Class H		6,520,000		6,944,566
BOC Aviation Ltd.(a)		612,600		4,487,826
BOE Technology Group Co. Ltd., Class A		4,412,800		2,202,492
CAR Inc.(b)(c)		12,608,000		10,119,940
China CITIC Bank Corp. Ltd., Class H		18,691,000		11,668,629
China Construction Bank Corp., Class H		4,728,000		4,186,523
China Everbright Bank Co. Ltd., Class H		18,124,000		7,573,892
China First Capital Group Ltd.(b)		6,304,000		3,373,313
China Gas Holdings Ltd.		2,048,800		6,512,704
China Huishan Dairy Holdings Co. Ltd.(b)(d)		22,241,266		425,052
China Life Insurance Co. Ltd., Class H		1,630,000		3,684,109
China Medical System Holdings Ltd.		8,150,000		13,498,707
China Mengniu Dairy Co. Ltd.		4,728,000		13,643,848
China Merchants Port Holdings Co. Ltd.		1,132,000		2,310,469
China Minsheng Banking Corp. Ltd., Class A		2,646,946		2,312,944
China Mobile Ltd.		6,927,500		65,136,452
China Pacific Insurance Group Co. Ltd., Class A		630,932		3,025,326
China Petroleum & Chemical Corp., Class H		47,316,000		47,563,766
China Railway Signal & Communication Corp. Ltd., Class H(a)		25,216,000		17,830,371
China Reinsurance Group Corp., Class H		95,348,000		18,829,314
China Resources Beer Holdings Co. Ltd.		8,150,000		34,681,293
China Resources Gas Group Ltd.		2,418,000		11,013,454
China Resources Pharmaceutical Group Ltd.(a)		9,062,000		14,501,232
China Resources Power Holdings Co. Ltd.		3,242,000		5,840,548
China Telecom Corp. Ltd., Class H		42,552,000		20,004,954
China Unicom Hong Kong Ltd.		3,260,000		3,792,098
China Yangtze Power Co. Ltd., Class A		1,891,739		4,380,397
Chong Sing Holdings FinTech Group Ltd.(b)(c)		116,624,000		8,172,253
CNOOC Ltd.		1,630,000		2,882,493

Security	Shares		Value
China (continued)
COSCO SHIPPING Energy Transportation Co. Ltd., Class H		7,880,000	$	3,443,591
COSCO SHIPPING Ports Ltd.		14,670,000		15,531,820
CSPC Pharmaceutical Group Ltd.		9,456,000		23,854,145
Dali Foods Group Co. Ltd.(a)		3,152,000		2,289,034
Daqin Railway Co. Ltd., Class A		2,128,169		2,688,207
Dongfeng Motor Group Co. Ltd., Class H		3,152,000		3,521,900
ENN Energy Holdings Ltd.		788,000		7,178,331
Fang Holdings Ltd., ADR(b)(c)		423,944		1,301,508
Focus Media Information Technology Co. Ltd., Class A		1,607,275		2,020,827
Fullshare Holdings Ltd.(c)		21,015,000		8,407,178
Fuyao Glass Industry Group Co. Ltd., Class H(a)		978,000		3,607,270
Guangdong Investment Ltd.		34,230,000		60,706,800
Hangzhou Hikvision Digital Technology Co. Ltd., Class A		1,182,578		5,443,726
Hengan International Group Co. Ltd.		2,445,000		22,008,084
Huadian Power International Corp. Ltd., Class H		6,304,000		2,345,256
Huaneng Power International Inc., Class H		33,096,000		21,251,875
Industrial & Commercial Bank of China Ltd., Class H		34,672,000		25,532,770
Industrial Bank Co. Ltd., Class A		2,679,729		5,914,772
Jiangsu Expressway Co. Ltd., Class H		21,190,000		26,781,434
Jiangsu Hengrui Medicine Co. Ltd., Class A		473,388		4,583,454
Kangmei Pharmaceutical Co. Ltd., Class A		630,934		1,923,619
Kingboard Holdings Ltd.		815,000		2,897,030
Kweichow Moutai Co. Ltd., Class A		20,190		1,948,017
Lenovo Group Ltd.		63,040,000		41,122,297
NetEase Inc., ADR(c)		101,652		20,097,617
New Oriental Education & Technology Group Inc., ADR		171,784		13,502,222
PetroChina Co. Ltd., Class H		53,890,000		40,097,033
Ping An Insurance Group Co. of China Ltd., Class H		788,000		7,589,955
Semiconductor Manufacturing International Corp.(b)(c)		3,940,000		4,648,346
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		16,300,000		15,430,060
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		15,208,540		20,516,321
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		3,388,400		8,893,098
Shanghai Pudong Development Bank Co. Ltd., Class A		3,861,742		5,838,878
Shenzhen International Holdings Ltd.		1,970,000		3,694,581
Shenzhou International Group Holdings Ltd.		2,364,000		31,022,436
Sihuan Pharmaceutical Holdings Group Ltd.		16,548,000		3,668,478
SINA Corp./China(b)		26,004		1,845,244
Sino Biopharmaceutical Ltd.		4,728,000		5,987,631
Sinopec Shanghai Petrochemical Co. Ltd., Class H		14,184,000		8,330,880
Sinopharm Group Co. Ltd., Class H		1,891,200		9,409,135
Sun Art Retail Group Ltd.		5,122,000		5,905,809
Sunny Optical Technology Group Co. Ltd.		394,000		5,007,262
TAL Education Group, Class A, ADR(b)		197,788		5,854,525
Tencent Holdings Ltd.		1,260,800		54,615,551
TravelSky Technology Ltd., Class H		5,516,000		14,125,750
Tsingtao Brewery Co. Ltd., Class H		2,072,000		9,846,679
Want Want China Holdings Ltd.(c)		4,075,000		3,327,950
Weibo Corp., ADR(b)(c)		22,852		1,753,663
Yum China Holdings Inc.		812,428		31,424,715
Zhaojin Mining Industry Co. Ltd., Class H		17,336,000		13,517,349
ZTE Corp., Class H(b)(c)		1,746,800		3,391,715
				1,224,573,405
Colombia — 0.5%
Grupo Argos SA/Colombia		341,992		2,138,321

S C H E D U L E  O F  I N V E S T M  E N T S 17

Consolidated Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Emerging Markets ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Colombia (continued)
Interconexion Electrica SA ESP		5,023,500	$	22,233,443
				24,371,764
Czech Republic — 0.5%
CEZ AS		117,412		2,989,028
Komercni Banka AS		276,043		11,539,654
Moneta Money Bank AS(a)		990,516		3,480,099
O2 Czech Republic AS		623,308		7,398,457
				25,407,238
Egypt — 0.4%
Commercial International Bank Egypt SAE		3,619,770		17,798,387
Greece — 0.5%
Hellenic Telecommunications Organization SA		337,260		4,312,497
JUMBO SA		192,500		2,884,781
OPAP SA		393,075		4,232,706
Titan Cement Co. SA		497,589		11,463,103
				22,893,087
Hungary — 0.8%
MOL Hungarian Oil & Gas PLC		1,397,912		14,315,635
OTP Bank Nyrt		55,948		2,068,203
Richter Gedeon Nyrt		1,090,592		21,519,705
				37,903,543
India — 9.2%
Asian Paints Ltd.		1,577,576		30,526,697
Britannia Industries Ltd.		57,524		5,463,771
Cadila Healthcare Ltd.		465,708		2,644,492
Cipla Ltd./India		329,384		3,075,048
Coal India Ltd.		649,312		2,617,800
Dabur India Ltd.		6,758,676		45,620,855
HCL Technologies Ltd.		2,576,760		38,017,666
Hindustan Unilever Ltd.		1,138,660		28,577,976
Housing Development Finance Corp. Ltd.		328,596		8,969,111
Infosys Ltd.		3,461,684		70,335,494
InterGlobe Aviation Ltd.(a)		147,356		1,929,774
ITC Ltd.		628,036		2,832,200
Lupin Ltd.		229,308		3,011,423
Marico Ltd.		3,304,872		17,214,853
Maruti Suzuki India Ltd.		18,912		2,425,493
Nestle India Ltd.		36,248		5,919,295
Pidilite Industries Ltd.		177,300		2,921,368
Power Grid Corp. of India Ltd.		2,303,324		6,543,696
Reliance Industries Ltd.		680,044		11,904,995
Sun Pharmaceutical Industries Ltd.		747,812		6,883,334
Tata Consultancy Services Ltd.		1,965,272		57,589,698
Tech Mahindra Ltd.		2,108,688		22,767,780
Titan Co. Ltd.		631,188		7,937,210
Wipro Ltd.		9,922,496		42,144,508
				427,874,537
Indonesia — 4.6%
Bank Central Asia Tbk PT		45,231,200		76,153,005
Bank Mandiri Persero Tbk PT		13,711,200		6,422,762
Bank Rakyat Indonesia Persero Tbk PT		39,872,800		8,607,977
Gudang Garam Tbk PT		1,956,000		9,693,686
Hanjaya Mandala Sampoerna Tbk PT		75,096,400		19,526,083
Indofood CBP Sukses Makmur Tbk PT		11,977,600		7,054,018
Indofood Sukses Makmur Tbk PT		17,257,200		7,468,747
Jasa Marga Persero Tbk PT		8,274,095		2,544,579
Kalbe Farma Tbk PT		166,740,800		15,225,144
Telekomunikasi Indonesia Persero Tbk PT		121,982,400		28,901,465

Security	Shares		Value
Indonesia (continued)
Unilever Indonesia Tbk PT		11,583,600	$	34,483,426
				216,080,892
Malaysia — 7.2%
DiGi.Com Bhd(c)		3,832,800		4,392,867
Fraser & Neave Holdings Bhd(c)		1,182,000		10,929,797
HAP Seng Consolidated Bhd		3,102,000		7,420,041
Hong Leong Bank Bhd		8,195,200		41,000,928
IHH Healthcare Bhd(c)		36,268,700		49,246,708
Kuala Lumpur Kepong Bhd(c)		866,800		5,201,433
Malayan Banking Bhd		23,482,400		56,913,178
Maxis Bhd(c)		8,589,200		12,080,685
My EG Services Bhd(c)		28,587,000		10,364,918
Petronas Chemicals Group Bhd		7,407,200		17,051,250
Petronas Dagangan Bhd		1,222,500		8,091,495
Petronas Gas Bhd		3,638,100		16,554,926
Public Bank Bhd(c)		11,426,080		69,843,808
Telekom Malaysia Bhd(c)		2,521,600		2,031,025
Tenaga Nasional Bhd		5,200,800		19,843,909
Westports Holdings Bhd		3,588,300		3,248,200
				334,215,168
Mexico — 1.3%
Arca Continental SAB de CV		2,364,000		14,534,758
Coca-Cola Femsa SAB de CV, Series L, NVS		649,300		3,902,830
Gruma SAB de CV, Series B		748,600		9,476,668
Infraestructura Energetica Nova SAB de CV		1,793,000		8,330,855
Wal-Mart de Mexico SAB de CV		9,298,400		25,720,686
				61,965,797
Pakistan — 0.2%
Habib Bank Ltd.		1,469,000		1,787,056
Lucky Cement Ltd.		529,750		2,307,517
MCB Bank Ltd.		3,097,700		5,020,944
				9,115,517
Peru — 1.2%
Credicorp Ltd.		257,676		56,178,521
Philippines — 2.9%
Aboitiz Equity Ventures Inc.		11,942,860		11,938,840
Aboitiz Power Corp.		26,004,000		17,994,838
Bank of the Philippine Islands		13,751,128		24,111,024
BDO Unibank Inc.		12,130,563		29,516,463
Jollibee Foods Corp.		4,680,720		25,212,227
Manila Electric Co.		835,280		5,833,275
Metropolitan Bank & Trust Co.		4,510,442		6,179,208
Security Bank Corp.		1,567,260		5,701,206
Universal Robina Corp.		2,631,920		6,866,777
				133,353,858
Poland — 0.5%
Bank Polska Kasa Opieki SA		458,616		14,560,523
CD Projekt SA(b)		74,072		4,145,915
Cyfrowy Polsat SA(b)		607,548		3,710,872
				22,417,310
Qatar — 2.6%
Commercial Bank PQSC (The)		947,176		10,203,764
Doha Bank QPSC		552,885		3,885,093
Masraf Al Rayan QSC		1,512,960		15,595,607
Qatar Electricity & Water Co. QSC		546,084		28,578,199
Qatar Islamic Bank SAQ		901,472		34,507,520

18 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Consolidated Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Emerging Markets ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Qatar (continued)
Qatar National Bank QPSC		579,743	$	28,215,581
				120,985,764
Russia — 0.2%
Rosneft Oil Co. PJSC		371,300		2,401,877
Rosneft Oil Co. PJSC, GDR, NVS(e)		1,024,400		6,527,477
				8,929,354
South Africa — 1.1%
AngloGold Ashanti Ltd.		314,412		2,530,103
Bidvest Group Ltd. (The)		385,611		5,684,974
Fortress REIT Ltd., Series A		12,652,128		14,239,986
Gold Fields Ltd.		743,872		1,827,789
Sappi Ltd.		341,204		2,337,921
SPAR Group Ltd. (The)		195,424		2,734,369
Tiger Brands Ltd.		90,620		1,770,619
Vodacom Group Ltd.		2,553,120		22,024,663
				53,150,424
South Korea — 9.9%
Celltrion Inc.(b)(c)		29,716		7,207,762
Cheil Worldwide Inc.		211,972		3,675,210
CJ CheilJedang Corp.		14,184		4,364,210
CJ Logistics Corp.(b)(c)		54,372		7,522,156
Coway Co. Ltd.		83,528		6,858,428
DB Insurance Co. Ltd.		405,032		23,287,111
E-MART Inc.		31,781		6,124,084
GS Retail Co. Ltd.(c)		73,284		2,449,054
Hanssem Co. Ltd.(c)		29,156		2,160,868
Hanwha Life Insurance Co. Ltd.		728,112		3,172,388
Hyundai Glovis Co. Ltd.		47,280		5,139,361
Hyundai Marine & Fire Insurance Co. Ltd.		307,320		10,270,228
Hyundai Mobis Co. Ltd.		11,820		2,378,547
Kakao Corp.		72,496		8,140,862
Kangwon Land Inc.		828,188		21,538,914
Kia Motors Corp.		268,708		7,736,685
Korea Electric Power Corp.		252,948		6,930,705
Korea Gas Corp.(b)		44,916		2,122,429
KT Corp.		262,836		6,823,843
KT&G Corp.		444,736		40,352,456
LG Display Co. Ltd.		156,812		2,993,536
Lotte Chemical Corp.		11,032		3,131,754
Lotte Corp.(b)		51,636		2,235,867
Medy-Tox Inc.		3,940		2,370,761
NAVER Corp.		55,423		37,441,581
NCSoft Corp.		55,119		19,187,542
S-1 Corp.		247,432		19,049,474
Samsung Biologics Co. Ltd.(a)(b)(c)		34,672		14,421,359
Samsung Electro-Mechanics Co. Ltd.		65,404		9,459,681
Samsung Electronics Co. Ltd.		959,056		41,743,038
Samsung Fire & Marine Insurance Co. Ltd.		107,956		25,700,346
Samsung Life Insurance Co. Ltd.		301,016		25,013,682
Samsung SDI Co. Ltd.		42,552		9,021,490
SK Hynix Inc.		471,224		35,135,958
SK Telecom Co. Ltd.		152,084		35,864,035
				461,025,405
Taiwan — 16.3%
Advantech Co. Ltd.		3,379,333		22,994,648
ASE Technology Holding Co. Ltd.		2,833,445		6,946,391
Asustek Computer Inc.		2,364,000		20,126,518
AU Optronics Corp.		20,488,000		8,871,574
Chicony Electronics Co. Ltd.		9,047,455		19,028,670

Security	Shares		Value
Taiwan (continued)
Chunghwa Telecom Co. Ltd.		18,553,000	$	65,538,027
Compal Electronics Inc.		6,304,000		3,950,903
Delta Electronics Inc.		2,684,000		10,748,234
E.Sun Financial Holding Co. Ltd.		29,218,833		21,499,125
Eva Airways Corp.		7,523,582		3,821,191
Far EasTone Telecommunications Co. Ltd.		21,190,000		50,500,016
First Financial Holding Co. Ltd.		67,628,710		45,247,273
Formosa Petrochemical Corp.		3,940,000		16,162,787
Formosa Plastics Corp.		3,233,840		11,844,604
Foxconn Technology Co. Ltd.		3,689,331		9,368,967
Globalwafers Co. Ltd.		77,000		982,712
Hon Hai Precision Industry Co. Ltd.		17,336,125		45,435,718
Hua Nan Financial Holdings Co. Ltd.		61,750,160		36,187,624
Innolux Corp.		9,753,000		3,635,743
Lite-On Technology Corp.		17,336,752		20,856,031
MediaTek Inc.		388,000		3,177,015
Nanya Technology Corp.		4,075,000		9,247,192
Novatek Microelectronics Corp.		1,576,000		7,722,220
Phison Electronics Corp.		152,000		1,256,975
Powertech Technology Inc.		3,551,000		10,532,186
President Chain Store Corp.		3,075,000		33,538,174
Quanta Computer Inc.		3,260,000		5,604,037
Standard Foods Corp.		1,957,476		3,313,975
Synnex Technology International Corp.		16,300,000		21,811,167
Taiwan Business Bank		33,884,476		12,245,407
Taiwan Cooperative Financial Holding Co. Ltd.		117,632,953		69,894,234
Taiwan Mobile Co. Ltd.		16,273,000		56,689,272
Taiwan Semiconductor Manufacturing Co. Ltd.		8,965,000		74,720,495
United Microelectronics Corp.		29,156,000		16,469,367
WPG Holdings Ltd.		6,520,000		8,257,464
				758,225,936
Thailand — 6.9%
Advanced Info Service PCL, NVDR		2,048,800		12,644,595
Airports of Thailand PCL, NVDR		17,178,400		35,033,859
Bangkok Dusit Medical Services PCL, NVDR		43,655,200		35,012,191
Bangkok Expressway & Metro PCL, NVDR		81,242,800		20,850,581
BTS Group Holdings PCL, NVDR		100,548,800		28,416,633
Bumrungrad Hospital PCL, NVDR		3,782,400		20,974,812
Central Pattana PCL, NVDR		1,497,200		3,773,877
CP ALL PCL, NVDR		17,651,200		36,402,566
Delta Electronics Thailand PCL, NVDR		6,067,600		12,930,495
Electricity Generating PCL, NVDR		2,206,400		15,235,148
Glow Energy PCL, NVDR		8,825,600		25,346,972
Home Product Center PCL, NVDR		28,998,400		12,935,430
IRPC PCL, NVDR		33,332,400		7,077,916
Kasikornbank PCL, NVDR		1,596,700		10,293,422
Krung Thai Bank PCL, NVDR		34,120,400		20,224,130
Minor International PCL, NVDR		3,782,400		4,564,766
PTT Global Chemical PCL, NVDR		1,970,000		4,920,486
Robinson PCL, NVDR		2,285,200		4,555,738
Siam Cement PCL (The), NVDR		551,600		7,617,574
Thai Union Group PCL, NVDR		9,456,000		5,055,912
				323,867,103
United Arab Emirates — 2.1%
DP World Ltd.		681,476		14,583,586
Dubai Islamic Bank PJSC		4,327,282		6,031,794
Emirates Telecommunications Group Co. PJSC		5,833,564		26,919,377

S C H E D U L E  O F  I N V E S T M  E N T S 19

Consolidated Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Emerging Markets ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
United Arab Emirates (continued)
First Abu Dhabi Bank PJSC		12,990,968	$	52,343,718
				99,878,475
Total Common Stocks — 99.5% (Cost: $4,117,913,756)				4,644,014,853
Preferred Stocks
Colombia — 0.1%
Grupo de Inversiones Suramericana SA, Preference Shares, NVS		492,108		5,693,124
Russia — 0.1%
Transneft PJSC, Preference Shares		695		1,470,408
Total Preferred Stocks — 0.2% (Cost: $7,322,998)				7,163,532
Warrants
Thailand — 0.0%
BTS Group Holdings PCL (Expires 08/01/19)(b)		10,792,211		3
Total Warrants — 0.0% (Cost: $0)				3
Short-Term Investments
Money Market Funds — 1.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		74,656,625		74,679,022

Security	Shares		Value
Money Market Funds (continued)
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(f)(g)		14,250,979	$	14,250,979
				88,930,001
Total Short-Term Investments — 1.9% (Cost: $88,915,231)				88,930,001
Total Investments in Securities — 101.6% (Cost: $4,214,151,985)				4,740,108,389
Other Assets, Less Liabilities — (1.6)%				(73,411,463	)
Net Assets — 100.0%			$	4,666,696,926

^(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(b)  Non-income producing security.

^(c)  All or a portion of this security is on loan.

^(d)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

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

^(f)  Affiliate of the Fund.

^(g)  Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer	08/31/17	Net Activity		08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares	84,571,230	(9,914,605	)	74,656,625	$	74,679,022	$	1,857,947	(b)	$	3,579		$	(153	)
BlackRock Cash Funds: Treasury, SL Agency Shares	4,920,350	9,330,629		14,250,979		14,250,979		110,134			—			—
					$	88,930,001	$	1,968,081		$	3,579		$	(153	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Emerging Markets E-Mini		234		09/21/18	$	12,342	$	17,389

20 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Consolidated Schedule of Investments  (continued)	iShares® Edge MSCI Min Vol Emerging Markets ETF
August 31, 2018

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Consolidated Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	17,389

^(a)  Represents cumulative appreciation (depreciation) 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.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Consolidated Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(2,024,054	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	17,389

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	9,123,190

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Consolidated Financial Statements.

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, refer to the Notes to Consolidated Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. The breakdown of the Fund’s investments into major categories is disclosed in the Consolidated Schedule of Investments above.

	Level 1		Level 2		Level 3		Total
Investments
Assets
Common Stocks	$	4,522,604,037	$	120,985,764	$	425,052	$	4,644,014,853
Preferred Stocks		7,163,532		—		—		7,163,532
Warrants		—		3		—		3
Money Market Funds		88,930,001		—		—		88,930,001
	$	4,618,697,570	$	120,985,767	$	425,052	$	4,740,108,389
Derivative financial instruments(a)
Assets
Futures Contracts	$	17,389	$	—	$	—	$	17,389

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

See notes to financial statements.

S C H E D U L E  O F  I N V E S T M  E N T S 21

Schedule of Investments   August 31, 2018 iShares^® Edge MSCI Min Vol Global ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Belgium — 0.4%
Colruyt SA		84,864	$	5,055,449
Proximus SADP		128,640		2,970,252
UCB SA		51,840		4,750,474
				12,776,175
Canada — 2.7%
Agnico Eagle Mines Ltd.		194,304		6,702,553
Barrick Gold Corp.		555,648		5,688,792
BCE Inc.		207,360		8,464,874
Fairfax Financial Holdings Ltd.		12,288		6,751,686
First Capital Realty Inc.		127,104		1,992,412
Franco-Nevada Corp.		258,048		16,508,581
Goldcorp Inc.		339,840		3,674,791
Intact Financial Corp.		192,384		15,270,328
RioCan REIT		88,320		1,710,927
Rogers Communications Inc., Class B, NVS		82,176		4,261,468
Shaw Communications Inc., Class B, NVS		164,736		3,325,167
TELUS Corp.		272,256		10,103,507
Thomson Reuters Corp.		112,896		5,025,104
				89,480,190
Chile — 0.3%
Banco de Chile		34,885,136		5,046,894
SACI Falabella		808,704		6,454,131
				11,501,025
China — 2.7%
Agricultural Bank of China Ltd., Class H		4,992,000		2,416,848
ANTA Sports Products Ltd.		384,000		2,091,503
China Conch Venture Holdings Ltd.		1,728,000		5,944,272
China First Capital Group Ltd.(a)		1,536,000		821,924
China Huishan Dairy Holdings Co. Ltd.(a)(b)		2,093,055		40,000
China Mobile Ltd.		2,112,000		19,858,273
China Railway Signal & Communication Corp. Ltd., Class H(c)		2,304,000		1,629,171
China Reinsurance Group Corp., Class H		8,832,000		1,744,143
China Resources Beer Holdings Co. Ltd.		768,000		3,268,127
China Resources Pharmaceutical Group Ltd.(c)		2,304,000		3,686,917
China Telecom Corp. Ltd., Class H		7,680,000		3,610,595
China Unicom Hong Kong Ltd.		2,304,000		2,680,060
Chong Sing Holdings FinTech Group Ltd.(a)(d)		24,576,000		1,722,127
COSCO SHIPPING Ports Ltd.(d)		1,536,000		1,626,236
CSPC Pharmaceutical Group Ltd.		768,000		1,937,393
Fullshare Holdings Ltd.(d)		4,780,000		1,912,268
Guangdong Investment Ltd.		4,608,000		8,172,274
Inner Mongolia Yitai Coal Co. Ltd., Class B		1,305,652		1,570,699
Jiangsu Expressway Co. Ltd., Class H		1,732,000		2,189,025
Lenovo Group Ltd.(d)		4,608,000		3,005,894
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		1,651,231		2,227,511
Shenzhen International Holdings Ltd.		1,344,000		2,520,567
Shenzhou International Group Holdings Ltd.		384,000		5,039,177
Sinopec Shanghai Petrochemical Co. Ltd., Class H		5,376,000		3,157,558
Tencent Holdings Ltd.		38,400		1,663,418
Yum China Holdings Inc.		119,808		4,634,173
				89,170,153
Czech Republic — 0.1%
Komercni Banka AS		49,152		2,054,742
Denmark — 1.2%
Chr Hansen Holding A/S		38,016		3,868,287

Security	Shares		Value
Denmark (continued)
Coloplast A/S, Class B		54,144	$	5,808,506
H Lundbeck A/S		97,920		5,758,202
Orsted A/S(c)		194,688		12,335,871
Pandora A/S		96,000		5,748,674
William Demant Holding A/S(a)		145,920		5,948,296
				39,467,836
Finland — 0.1%
Elisa OYJ		79,872		3,424,509
France — 0.8%
Dassault Systemes SE, NVS		57,216		9,293,283
Hermes International, NVS		25,344		16,519,029
				25,812,312
Germany — 0.3%
MAN SE		48,768		5,313,846
TUI AG		225,792		4,173,187
Uniper SE		58,368		1,787,421
				11,274,454
Hong Kong — 3.6%
CK Infrastructure Holdings Ltd.(d)		960,000		7,020,602
CLP Holdings Ltd.		2,112,000		24,822,841
Hang Seng Bank Ltd.(d)		1,075,200		29,150,908
HK Electric Investments & HK Electric
Investments Ltd.(d)		3,840,000		3,879,677
HKT Trust & HKT Ltd.		5,376,000		6,945,259
Hong Kong & China Gas Co. Ltd.		4,649,937		9,573,696
Jardine Matheson Holdings Ltd.		76,800		4,847,616
Jardine Strategic Holdings Ltd.		76,800		2,787,840
Link REIT		960,000		9,564,652
MTR Corp. Ltd.		2,112,000		10,884,379
PCCW Ltd.		6,144,000		3,264,213
Power Assets Holdings Ltd.		768,000		5,386,538
Yue Yuen Industrial Holdings Ltd.		576,000		1,596,147
				119,724,368
India — 2.2%
Asian Paints Ltd.		188,928		3,655,829
Bajaj Finserv Ltd.		40,320		3,835,975
Britannia Industries Ltd.		36,096		3,428,487
Coal India Ltd.		886,656		3,574,689
Dabur India Ltd.		514,960		3,475,964
Eicher Motors Ltd.		12,672		5,013,280
HCL Technologies Ltd.		310,656		4,583,437
Hero MotoCorp Ltd.		41,856		1,920,178
Hindustan Unilever Ltd.		104,448		2,621,425
Infosys Ltd.		394,752		8,020,685
InterGlobe Aviation Ltd.(c)		118,272		1,548,890
Maruti Suzuki India Ltd.		67,968		8,717,000
Petronet LNG Ltd.		754,944		2,640,262
Pidilite Industries Ltd.		146,688		2,416,974
Sun Pharmaceutical Industries Ltd.		228,864		2,106,609
Tata Consultancy Services Ltd.		172,416		5,052,423
Wipro Ltd., ADR, NVS(d)		2,155,515		11,100,902
				73,713,009
Indonesia — 0.6%
Bank Central Asia Tbk PT		7,987,200		13,447,560
Kalbe Farma Tbk PT		16,934,400		1,546,284
Telekomunikasi Indonesia Persero Tbk PT		17,433,600		4,130,568
Unilever Indonesia Tbk PT		806,400		2,400,587
				21,524,999

22 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Global ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Ireland — 0.5%
AIB Group PLC		297,216	$	1,675,107
Kerry Group PLC, Class A		92,544		10,579,060
Ryanair Holdings PLC, ADR, NVS(a)(d)		27,648		2,816,502
				15,070,669
Israel — 0.5%
Azrieli Group Ltd.		49,152		2,557,696
Bank Hapoalim BM		315,264		2,366,626
Bank Leumi Le-Israel BM		394,383		2,654,859
Check Point Software Technologies Ltd.(a)(d)		28,800		3,346,272
Mizrahi Tefahot Bank Ltd.		195,072		3,527,598
Nice Ltd.(a)		14,592		1,683,224
				16,136,275
Italy — 0.5%
Intesa Sanpaolo SpA		1,338,256		3,312,646
Luxottica Group SpA		61,824		4,108,767
Snam SpA		1,998,336		8,221,424
				15,642,837
Japan — 12.2%
ABC-Mart Inc.		43,300		2,366,398
Ajinomoto Co. Inc.		153,600		2,612,523
ANA Holdings Inc.		153,600		5,331,708
Asahi Group Holdings Ltd.		38,400		1,738,103
Astellas Pharma Inc.		1,008,800		17,121,897
Benesse Holdings Inc.		115,200		3,610,227
Canon Inc.		537,600		17,274,373
Daiichi Sankyo Co. Ltd.		210,600		8,239,012
Daito Trust Construction Co. Ltd.		38,400		5,765,974
Daiwa House REIT Investment Corp.		1,152		2,676,243
Eisai Co. Ltd.		48,900		4,436,434
FamilyMart UNY Holdings Co. Ltd.		38,400		3,355,693
FUJIFILM Holdings Corp.		86,600		3,669,869
Hamamatsu Photonics KK		115,200		4,643,946
Hankyu Hanshin Holdings Inc.		38,400		1,373,098
Japan Airlines Co. Ltd.		153,600		5,547,802
Japan Post Bank Co. Ltd.		192,000		2,247,518
Japan Prime Realty Investment Corp.		1,152		4,176,435
Japan Real Estate Investment Corp.		1,152		6,139,983
Japan Retail Fund Investment Corp.		2,688		4,872,508
KDDI Corp.		76,800		2,036,964
Keikyu Corp.(d)		115,200		1,996,793
Keyence Corp.		25,000		14,179,104
Kintetsu Group Holdings Co. Ltd.		43,300		1,702,557
Kirin Holdings Co. Ltd.		192,000		4,757,361
Konami Holdings Corp.		38,400		1,612,048
Kyushu Railway Co.		198,800		5,988,114
Lawson Inc.		76,800		4,515,814
LINE Corp.(a)		38,400		1,773,080
McDonald’s Holdings Co. Japan Ltd.		91,200		4,013,672
MEIJI Holdings Co. Ltd.		76,800		5,111,458
Mitsubishi Tanabe Pharma Corp.		345,600		5,775,324
Nagoya Railroad Co. Ltd.		268,800		6,145,177
Nippon Building Fund Inc.		1,152		6,721,775
Nippon Prologis REIT Inc.		2,688		5,248,248
Nippon Telegraph & Telephone Corp.		384,000		17,142,084
Nissan Motor Co. Ltd.		576,000		5,402,354
Nissin Foods Holdings Co. Ltd.		76,800		4,910,601
Nitori Holdings Co. Ltd.		44,600		6,785,426
Nomura Real Estate Master Fund Inc.		5,376		7,505,116
Nomura Research Institute Ltd.		118,030		5,886,332

Security	Shares		Value
Japan (continued)
NTT Data Corp.		691,200	$	8,901,417
NTT DOCOMO Inc.		1,267,200		32,969,942
Ono Pharmaceutical Co. Ltd.		153,600		4,044,839
Oracle Corp. Japan		43,300		3,643,315
Oriental Land Co. Ltd./Japan		129,900		13,946,517
Otsuka Corp.		153,600		5,575,506
Otsuka Holdings Co. Ltd.		192,000		9,022,970
Park24 Co. Ltd.		153,600		4,515,814
Recruit Holdings Co. Ltd.		76,800		2,345,868
Sankyo Co. Ltd.		76,800		2,947,053
Secom Co. Ltd.		230,400		19,001,740
Shimadzu Corp.		115,200		3,423,222
Shimamura Co. Ltd.		38,400		3,556,550
Shionogi & Co. Ltd.		38,400		2,235,743
Suntory Beverage & Food Ltd.		192,000		7,887,090
Taisho Pharmaceutical Holdings Co. Ltd.		43,300		4,701,556
Takeda Pharmaceutical Co. Ltd.		230,400		9,668,135
Terumo Corp.		76,800		4,245,696
Tobu Railway Co. Ltd.		268,800		7,514,813
Toho Co. Ltd./Tokyo		76,800		2,361,798
Toyo Suisan Kaisha Ltd.		115,200		4,254,354
Tsuruha Holdings Inc.		38,400		4,394,607
United Urban Investment Corp.		4,224		6,677,794
USS Co. Ltd.		76,800		1,451,017
Yahoo Japan Corp.(d)		1,267,200		4,365,517
Yamada Denki Co. Ltd.(d)		883,200		4,388,720
Yamazaki Baking Co. Ltd.		153,600		2,994,843
				407,445,582
Malaysia — 0.8%
Hong Leong Bank Bhd		921,600		4,610,803
IHH Healthcare Bhd		2,073,600		2,815,595
Malayan Banking Bhd		2,035,200		4,932,618
Maxis Bhd(d)		2,572,800		3,618,636
Petronas Dagangan Bhd		307,200		2,033,298
Public Bank Bhd(d)		1,459,260		8,919,969
				26,930,919
Netherlands — 0.3%
Koninklijke Ahold Delhaize NV		132,864		3,240,148
NXP Semiconductors NV(a)		69,888		6,509,368
				9,749,516
New Zealand — 0.2%
Fisher & Paykel Healthcare Corp. Ltd.		280,320		3,048,414
Spark New Zealand Ltd.		1,519,872		4,023,656
				7,072,070
Peru — 0.1%
Cia. de Minas Buenaventura SAA, ADR, NVS		120,192		1,513,217
Credicorp Ltd.		13,056		2,846,469
				4,359,686
Philippines — 0.3%
Bank of the Philippine Islands		1,213,449		2,127,644
BDO Unibank Inc.		2,791,689		6,792,824
Jollibee Foods Corp.		395,520		2,130,429
				11,050,897
Qatar — 0.3%
Qatar Islamic Bank SAQ		49,152		1,881,493
Qatar National Bank QPSC		172,800		8,410,024
				10,291,517

S C H E D U L E  O F  I N V E S T M  E N T S 23

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Global ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Singapore — 1.2%
CapitaLand Commercial Trust		3,456,000	$	4,464,888
CapitaLand Mall Trust		3,686,400		5,758,108
Oversea-Chinese Banking Corp. Ltd.(d)		410,000		3,381,629
SATS Ltd.		998,400		3,694,674
Singapore Airlines Ltd.		768,000		5,493,522
Singapore Press Holdings Ltd.(d)		1,545,900		3,159,388
Singapore Telecommunications Ltd.		5,721,600		13,489,119
				39,441,328
South Korea — 0.4%
DB Insurance Co. Ltd.		27,264		1,567,530
KT&G Corp.		18,624		1,689,821
NAVER Corp.		2,688		1,815,906
S-1 Corp.		26,112		2,010,330
Samsung Fire & Marine Insurance Co. Ltd.		13,056		3,108,153
SK Telecom Co. Ltd.		13,056		3,078,830
				13,270,570
Spain — 0.1%
Amadeus IT Group SA		30,720		2,856,557
Switzerland — 4.7%
Chocoladefabriken Lindt & Spruengli AG, Registered		146		12,892,565
EMS-Chemie Holding AG, Registered		10,368		6,561,075
Givaudan SA, Registered		768		1,872,551
Kuehne + Nagel International AG, Registered		75,264		12,179,522
Nestle SA, Registered		387,840		32,636,149
Novartis AG, Registered		196,224		16,309,053
Partners Group Holding AG		12,672		9,971,453
Roche Holding AG, NVS		74,496		18,548,896
Schindler Holding AG, Registered		28,416		6,581,723
Sika AG, Registered		29,568		4,393,467
Sonova Holding AG, Registered		67,200		12,778,492
Swiss Prime Site AG, Registered		66,432		6,137,627
Swisscom AG, Registered		33,408		14,954,320
				155,816,893
Taiwan — 3.9%
Asustek Computer Inc.		866,000		7,372,912
Chang Hwa Commercial Bank Ltd.		6,912,361		4,298,424
Chicony Electronics Co. Ltd.		773,020		1,625,821
Chunghwa Telecom Co. Ltd.		5,376,000		18,990,591
Compal Electronics Inc.		2,688,000		1,684,649
CTBC Financial Holding Co. Ltd.		2,688,000		1,890,308
E.Sun Financial Holding Co. Ltd.		8,156,260		6,001,350
Far EasTone Telecommunications Co. Ltd.		2,304,000		5,490,894
First Financial Holding Co. Ltd.		13,971,422		9,347,639
Formosa Petrochemical Corp.		1,920,000		7,876,282
Hon Hai Precision Industry Co. Ltd.		2,688,400		7,045,945
Hua Nan Financial Holdings Co. Ltd.		11,242,092		6,588,235
Innolux Corp.		4,992,000		1,860,928
Mega Financial Holding Co. Ltd.		13,440,000		11,289,337
Quanta Computer Inc.		768,000		1,320,215
Synnex Technology International Corp.		1,920,250		2,569,503
Taiwan Cooperative Financial Holding Co. Ltd.		12,282,977		7,298,204
Taiwan Mobile Co. Ltd.		2,304,000		8,026,306
Taiwan Semiconductor Manufacturing Co. Ltd.		1,920,000		16,002,604
United Microelectronics Corp.		3,456,000		1,952,193
WPG Holdings Ltd.		1,536,000		1,945,317
				130,477,657
Thailand — 0.8%
Airports of Thailand PCL, NVDR		2,572,800		5,247,003

Security	Shares		Value
Thailand (continued)
Bangkok Dusit Medical Services PCL, NVDR		5,491,200	$	4,404,033
Bangkok Expressway & Metro PCL, NVDR		10,214,400		2,621,477
BTS Group Holdings PCL, NVDR		8,025,600		2,268,158
Bumrungrad Hospital PCL, NVDR		499,200		2,768,249
CP ALL PCL, NVDR		960,000		1,979,835
Home Product Center PCL, NVDR		6,528,000		2,911,971
IRPC PCL, NVDR		8,793,600		1,867,263
Krung Thai Bank PCL, NVDR		4,684,800		2,776,814
				26,844,803
United Arab Emirates — 0.2%
Emirates Telecommunications Group Co. PJSC		1,090,560		5,032,463
First Abu Dhabi Bank PJSC		742,656		2,992,339
				8,024,802
United Kingdom — 0.8%
AstraZeneca PLC		25,728		1,937,846
Compass Group PLC		408,192		8,799,128
GlaxoSmithKline PLC		475,776		9,649,352
Kingfisher PLC		393,600		1,399,175
Randgold Resources Ltd.		49,920		3,258,449
Royal Mail PLC		534,144		3,110,255
				28,154,205
United States — 56.7%
Abbott Laboratories		143,616		9,599,293
Accenture PLC, Class A		27,264		4,609,524
Adobe Systems Inc.(a)		21,888		5,767,707
Aetna Inc.		64,512		12,919,818
AGNC Investment Corp.		544,512		10,356,618
Alleghany Corp.		18,816		11,887,573
Allstate Corp. (The)		160,128		16,104,073
Alphabet Inc., Class C,NVS(a)		1,536		1,871,140
Altria Group Inc.		377,088		22,067,190
Ameren Corp.		46,464		2,937,919
American Electric Power Co. Inc.		109,824		7,877,676
American Tower Corp.		14,592		2,175,959
American Water Works Co. Inc.		79,488		6,957,585
Amphenol Corp., Class A		73,728		6,973,194
Annaly Capital Management Inc.		1,523,328		16,177,743
ANSYS Inc.(a)		71,808		13,354,852
Aon PLC		60,672		8,831,416
Apple Inc.		18,432		4,195,676
Aramark		103,680		4,259,174
Arch Capital Group Ltd.(a)		565,632		17,291,370
AT&T Inc.		836,736		26,725,348
Athene Holding Ltd., Class A(a)		116,736		5,797,110
Automatic Data Processing Inc.		125,568		18,427,104
AutoZone Inc.(a)		13,056		10,012,385
AvalonBay Communities Inc.		101,376		18,581,207
Axis Capital Holdings Ltd.		116,352		6,692,567
Baxter International Inc.		187,392		13,936,343
Becton Dickinson and Co.		37,248		9,754,134
Berkshire Hathaway Inc., Class B(a)		94,848		19,796,675
Boston Scientific Corp.(a)		139,776		4,970,435
Bristol-Myers Squibb Co.		72,576		4,394,477
Broadridge Financial Solutions Inc.		114,816		15,516,234
Campbell Soup Co.		112,512		4,438,598
CH Robinson Worldwide Inc.		135,936		13,060,731
Chevron Corp.		16,896		2,001,500
Chubb Ltd.		108,672		14,696,801
Church & Dwight Co. Inc.		311,808		17,642,097

24 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Global ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
Cigna Corp.		10,752	$	2,025,032
Cincinnati Financial Corp.		91,008		6,977,583
Cintas Corp.		10,752		2,294,154
Cisco Systems Inc.		173,184		8,273,000
Clorox Co. (The)		143,232		20,765,775
CMS Energy Corp.		35,328		1,739,551
Coca-Cola Co. (The)		557,568		24,850,806
Cognizant Technology Solutions Corp., Class A		29,424		2,307,724
Colgate-Palmolive Co.		123,264		8,185,962
Comcast Corp., Class A		326,400		12,073,536
CommScope Holding Co. Inc.(a)		129,792		4,113,108
Conagra Brands Inc.		59,136		2,173,248
Consolidated Edison Inc.		431,616		34,067,451
Constellation Brands Inc., Class A		36,480		7,595,136
Cooper Companies Inc. (The)(d)		8,064		2,062,610
Costco Wholesale Corp.		36,480		8,504,582
Crown Castle International Corp.		104,832		11,953,993
CVS Health Corp.		43,392		3,264,814
Danaher Corp.		62,976		6,520,535
Darden Restaurants Inc.		36,480		4,233,139
Dell Technologies Inc., Class V(a)		40,704		3,914,504
Dollar General Corp.		38,784		4,178,200
Dominion Energy Inc.		241,536		17,093,503
DTE Energy Co.		50,688		5,633,464
Duke Energy Corp.		284,928		23,147,551
eBay Inc.(a)		86,016		2,977,014
Ecolab Inc.		22,272		3,351,491
Edison International		29,184		1,918,264
Eli Lilly & Co.		253,440		26,775,936
Entergy Corp.		29,568		2,471,589
Equity Residential		114,432		7,752,768
Essex Property Trust Inc.		11,904		2,931,717
Estee Lauder Companies Inc. (The), Class A		20,352		2,851,722
Everest Re Group Ltd.		40,320		8,992,166
Evergy Inc.		72,960		4,162,368
Eversource Energy		66,816		4,171,323
Expeditors International of Washington Inc.		211,968		15,533,015
Exxon Mobil Corp.		300,288		24,074,089
F5 Networks Inc.(a)		76,800		14,524,416
Facebook Inc., Class A(a)		71,040		12,483,859
Federal Realty Investment Trust		14,592		1,905,861
Fidelity National Financial Inc.		110,208		4,419,341
Fidelity National Information Services Inc.		121,344		13,125,781
Fiserv Inc.(a)		231,552		18,540,369
General Dynamics Corp.		8,064		1,559,578
General Mills Inc.		96,384		4,434,628
Genuine Parts Co.		33,792		3,374,131
Gilead Sciences Inc.		24,192		1,832,060
Harris Corp.		83,712		13,604,037
HCA Healthcare Inc.		16,896		2,265,923
Henry Schein Inc.(a)		77,568		6,025,482
Hershey Co. (The)		54,528		5,481,155
Home Depot Inc. (The)		46,848		9,405,673
Hormel Foods Corp.		124,032		4,855,853
Humana Inc.		20,352		6,782,508
Intel Corp.		74,112		3,589,244
International Business Machines Corp.		69,504		10,180,946
Intuit Inc.		14,976		3,286,783
Jack Henry & Associates Inc.		106,752		16,913,787
JM Smucker Co. (The)		61,056		6,311,969

Security	Shares		Value
United States (continued)
Johnson & Johnson		350,976	$	47,272,957
Kellogg Co.		213,120		15,299,885
Kimberly-Clark Corp.		89,856		10,381,962
Kraft Heinz Co. (The)		74,496		4,340,882
L3 Technologies Inc.		14,592		3,118,602
Laboratory Corp. of America Holdings(a)		73,344		12,678,977
Liberty Broadband Corp., Class C,NVS(a)		35,328		2,864,748
Lockheed Martin Corp.		94,080		30,144,173
Lowe’s Companies Inc.		19,968		2,171,520
Markel Corp.(a)		19,584		23,673,139
Marsh & McLennan Companies Inc.		262,656		22,228,577
Mastercard Inc., Class A		43,814		9,444,546
McCormick & Co. Inc./MD, NVS		169,344		21,147,679
McDonald’s Corp.		222,336		36,069,569
Medtronic PLC		145,152		13,994,104
Merck & Co. Inc.		359,040		24,626,554
Microsoft Corp.		26,496		2,976,296
Motorola Solutions Inc.		211,968		27,208,213
Newmont Mining Corp.		296,064		9,186,866
NextEra Energy Inc.		133,632		22,730,803
Northrop Grumman Corp.		123,264		36,793,071
O’Reilly Automotive Inc.(a)(d)		18,432		6,182,461
Occidental Petroleum Corp.		83,328		6,655,407
Oracle Corp.		59,136		2,872,827
Palo Alto Networks Inc.(a)		32,640		7,544,736
Paychex Inc.		268,800		19,689,600
PepsiCo Inc.		257,664		28,860,945
Pfizer Inc.		569,088		23,628,534
Philip Morris International Inc.		36,864		2,871,337
Procter & Gamble Co. (The)		402,048		33,349,882
Progressive Corp. (The)		150,912		10,191,087
Public Storage		60,288		12,816,023
Raytheon Co.		144,000		28,719,360
Realty Income Corp.		95,232		5,577,738
RenaissanceRe Holdings Ltd.		56,064		7,454,269
Republic Services Inc.		322,176		23,634,831
Rockwell Collins Inc.		100,224		13,625,453
Rollins Inc.		39,168		2,353,213
Ross Stores Inc.		54,912		5,259,471
Sherwin-Williams Co. (The)		5,760		2,624,141
Southern Co. (The)		545,280		23,872,358
Starbucks Corp.		181,632		9,708,230
Stryker Corp.		109,824		18,607,480
Synopsys Inc.(a)		194,688		19,885,432
Sysco Corp.		122,112		9,136,420
Tapestry Inc.		151,296		7,669,194
Texas Instruments Inc.		19,200		2,158,080
TJX Companies Inc. (The)		276,864		30,446,734
Travelers Companies Inc. (The)		100,224		13,189,478
Tyson Foods Inc., Class A		31,872		2,001,880
UDR Inc.		238,080		9,516,058
Ulta Salon Cosmetics & Fragrance Inc.(a)		7,680		1,996,800
UnitedHealth Group Inc.		81,408		21,854,792
Universal Health Services Inc., Class B		18,432		2,399,109
Varian Medical Systems Inc.(a)		24,192		2,709,988
VeriSign Inc.(a)		29,568		4,689,781
Verizon Communications Inc.		556,416		30,252,338
Visa Inc., Class A		256,512		37,679,048
Walmart Inc.		249,600		23,926,656
Walt Disney Co. (The)		33,792		3,785,380

S C H E D U L E  O F  I N V E S T M  E N T S 25

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Global ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
United States (continued)
Waste Management Inc.		390,528	$	35,498,995
WEC Energy Group Inc.		296,448		20,033,956
Welltower Inc.		47,232		3,150,847
Worldpay Inc., Class A(a)		61,056		5,946,244
WR Berkley Corp.		135,168		10,578,248
Xcel Energy Inc.		412,416		19,816,589
XL Group Ltd.		86,784		4,980,534
Yum! Brands Inc.		62,976		5,471,985
				1,896,702,125
Total Common Stocks — 99.5% (Cost: $2,873,267,259)				3,325,262,680
Warrants
Thailand — 0.0%
BTS Group Holdings PCL (Expires 08/01/19)(a)		945,144		0	(e)
Total Warrants — 0.0% (Cost: $0)				0	(e)
Short-Term Investments
Money Market Funds — 1.3%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(f)(g)(h)		40,988,658		41,000,954

Security	Shares		Value
Money Market Funds (continued)
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(f)(g)		3,646,867	$	3,646,867
				44,647,821
Total Short-Term Investments — 1.3% (Cost: $44,636,281)				44,647,821
Total Investments in Securities — 100.8% (Cost: $2,917,903,540)				3,369,910,501
Other Assets, Less Liabilities — (0.8)%				(27,510,799	)
Net Assets — 100.0%			$	3,342,399,702

^(a)  Non-income producing security.

^(b)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  All or a portion of this security is on loan.

^(e) Rounds to less than $1.

^(f)  Affiliate of the Fund.

^(g)  Annualized 7-day yield as of period-end.

^(h)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at			Shares Held at		Value at					Net Realized			Change in Unrealized Appreciation
Affiliated Issuer	08/31/17	Net Activity		08/31/18		08/31/18		Income			Gain (Loss)	(a)		(Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares	56,910,361	(15,921,703	)	40,988,658	$	41,000,954	$	509,143	(b)	$	(1,298	)	$	(2,264	)
BlackRock Cash Funds: Treasury, SL Agency Shares	2,465,143	1,181,724		3,646,867		3,646,867		78,052			—			—
					$	44,647,821	$	587,195		$	(1,298	)	$	(2,264	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI EAFE E-Mini		65		09/21/18	$	6,366	$	(98,032	)
MSCI Emerging Markets E-Mini		17		09/21/18		897		(22,562	)
S&P 500 E-Mini Index		41		09/21/18		5,949		197,102
							$	76,508

26 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Min Vol Global ETF       

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Assets — Derivative Financial Instruments
Futures Contracts
Net unrealized appreciation(a)	$	197,102
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	120,594

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss)from:
Futures contracts	$	1,017,000
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	76,508

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	10,860,953

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	3,314,931,163		$	10,291,517		$	40,000	$	3,325,262,680
Warrants		—			0	(a)		—		0	(a)
Money Market Funds		44,647,821			—			—		44,647,821
	$	3,359,578,984		$	10,291,517		$	40,000	$	3,369,910,501
Derivative financial instruments(b)
Assets
Futures Contracts	$	197,102		$	—		$	—	$	197,102
Liabilities
Futures Contracts		(120,594	)		—			—		(120,594	)
	$	76,508		$	—		$	—	$	76,508

^(a)  Rounds to less than $1.

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

See notes to financial statements.

S C H E D U L E  O F  I N V E S T M  E N T S 27

Schedule of Investments August 31, 2018 iShares^® Edge MSCI Multifactor Emerging Markets ETF (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Brazil — 4.0%
BB Seguridade Participacoes SA		416,000	$	2,471,707
Cia. de Saneamento Basico do Estado de Sao Paulo		201,500		1,193,321
EDP - Energias do Brasil SA		184,900		601,808
Hypera SA		195,000		1,296,813
IRB Brasil Resseguros S/A		56,900		820,887
Lojas Renner SA		383,500		2,632,310
M. Dias Branco SA		65,000		667,496
Odontoprev SA		152,900		486,151
Porto Seguro SA		50,500		672,663
Sul America SA, NVS		120,978		674,465
				11,517,621
Chile — 0.5%
Cia. Cervecerias Unidas SA		102,460		1,355,045
China — 35.9%
51job Inc., ADR(a)(b)		13,780		1,065,332
AAC Technologies Holdings Inc.		65,000		720,483
Agile Group Holdings Ltd.		910,000		1,486,348
Alibaba Group Holding Ltd., ADR(a)(b)		32,897		5,757,304
Angang Steel Co. Ltd., Class H		626,000		615,719
ANTA Sports Products Ltd.		585,000		3,186,274
Autohome Inc., ADR		31,041		2,564,297
BOC Aviation Ltd.(c)		95,300		698,155
China Agri-Industries Holdings Ltd.		1,273,000		506,028
China Communications Services Corp. Ltd., Class H		1,318,000		1,091,491
China Conch Venture Holdings Ltd.		1,031,500		3,548,332
China Everbright Ltd.		650,000		1,137,866
China Medical System Holdings Ltd.		780,000		1,291,901
China Reinsurance Group Corp., Class H		2,873,000		567,360
China Resources Cement Holdings Ltd.		1,010,000		1,178,713
China Travel International Investment Hong Kong Ltd.		1,170,000		380,117
China Zhongwang Holdings Ltd.(b)		1,118,000		524,180
Chongqing Rural Commercial Bank Co. Ltd., Class H		1,560,000		840,729
COSCO SHIPPING Ports Ltd.		1,010,000		1,069,335
CSPC Pharmaceutical Group Ltd.		2,546,000		6,422,658
Dongfeng Motor Group Co. Ltd., Class H		1,690,000		1,888,328
Geely Automobile Holdings Ltd.		889,000		1,889,248
Guangzhou Automobile Group Co. Ltd., Class H		1,820,000		1,975,614
Haitian International Holdings Ltd.		455,000		913,606
Huaneng Renewables Corp. Ltd., Class H		2,730,000		873,027
Jiangsu Expressway Co. Ltd., Class H		650,000		821,516
Kingboard Holdings Ltd.		422,500		1,501,835
Kingboard Laminates Holdings Ltd.		682,500		644,335
Kingdee International Software Group Co. Ltd.		1,010,000		1,150,403
Lee & Man Paper Manufacturing Ltd.		910,000		871,867
Logan Property Holdings Co. Ltd.		780,000		973,894
Longfor Group Holdings Ltd.		812,500		2,256,686
Luye Pharma Group Ltd.(b)(c)		260,000		244,799
New Oriental Education & Technology Group Inc., ADR		74,880		5,885,568
Nexteer Automotive Group Ltd.		505,000		850,578
Nine Dragons Paper Holdings Ltd.		975,000		1,105,569
People’s Insurance Co. Group of China Ltd. (The), Class H		4,290,000		1,858,350
PICC Property & Casualty Co. Ltd., Class H		3,901,000		4,393,589
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		1,040,000		984,495
Shanghai Industrial Holdings Ltd.		325,000		774,312
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		382,600		1,004,161

Security	Shares		Value
China (continued)
Shenzhen International Holdings Ltd.		520,000	$	975,219
Sino Biopharmaceutical Ltd.		3,826,000		4,845,321
Sino-Ocean Group Holding Ltd.		1,755,000		892,157
Sinopec Shanghai Petrochemical Co. Ltd., Class H		1,950,000		1,145,320
Sinotrans Ltd., Class H		1,235,000		517,671
Sinotruk Hong Kong Ltd.(b)		422,500		630,878
SSY Group Ltd.		910,000		846,361
Sun Art Retail Group Ltd.		1,332,500		1,536,410
Sunny Optical Technology Group Co. Ltd.		377,000		4,791,213
TAL Education Group, Class A, ADR(a)		17,117		506,663
Tencent Holdings Ltd.		210,500		9,118,475
Towngas China Co. Ltd.		377,000		347,273
Uni-President China Holdings Ltd.		715,000		704,169
Yum China Holdings Inc.		180,649		6,987,503
Yuzhou Properties Co. Ltd.		975,000		518,003
YY Inc., ADR(a)		25,740		1,967,308
Zhongsheng Group Holdings Ltd.(b)		325,000		713,030
				104,557,376
Czech Republic — 0.5%
Moneta Money Bank AS(c)		302,018		1,061,116
O2 Czech Republic AS		34,234		406,346
				1,467,462
Egypt — 0.3%
Commercial International Bank Egypt SAE		101,970		501,386
Eastern Tobacco		79,861		464,519
				965,905
Hungary —0.3%
MOL Hungarian Oil & Gas PLC		77,421		792,847
India — 0.1%
Eicher Motors Ltd.		633		250,427
Rural Electrification Corp. Ltd.		100		169
				250,596
Indonesia — 3.0%
Adaro Energy Tbk PT		9,064,100		1,147,627
Bank Danamon Indonesia Tbk PT		1,705,300		787,240
Bank Negara Indonesia Persero Tbk PT		4,343,600		2,300,073
Bank Tabungan Negara Persero Tbk PT		2,216,600		413,825
Indah Kiat Pulp & Paper Corp. Tbk PT		1,527,500		1,980,669
United Tractors Tbk PT		970,700		2,266,944
				8,896,378
Malaysia — 2.2%
AirAsia Group Bhd		941,100		787,781
Alliance Bank Malaysia Bhd		671,400		674,749
Hartalega Holdings Bhd(b)		724,200		1,251,203
Nestle Malaysia Bhd		33,500		1,198,321
PPB Group Bhd		347,220		1,419,466
Top Glove Corp. Bhd		368,700		999,469
				6,330,989
Peru — 1.3%
Credicorp Ltd.		16,797		3,662,082
Philippines — 0.3%
DMCI Holdings Inc.		3,200,100		766,090
Poland — 0.4%
Dino Polska SA(a)(c)		25,231		625,899
Jastrzebska Spolka Weglowa SA(a)		31,297		654,776
				1,280,675

28 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Multifactor Emerging Markets ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Russia — 3.2%
Inter RAO UES PJSC		13,988,000	$	839,026
Mobile TeleSystems PJSC, ADR, NVS		41,196		319,269
RusHydro PJSC		57,360,008		542,399
Tatneft PJSC		661,700		7,693,369
				9,394,063
South Africa — 5.8%
Bidvest Group Ltd. (The)		194,061		2,860,997
Capitec Bank Holdings Ltd.		22,671		1,551,632
Coronation Fund Managers Ltd.		144,680		568,302
Exxaro Resources Ltd.		144,680		1,469,883
Investec Ltd.		149,435		980,883
Kumba Iron Ore Ltd.		36,920		668,006
Liberty Holdings Ltd.		75,885		602,936
Mondi Ltd.		71,348		1,997,574
Mr. Price Group Ltd.		147,816		2,273,448
Netcare Ltd.		545,076		1,091,919
RMB Holdings Ltd.		121,561		699,435
SPAR Group Ltd. (The)		108,846		1,522,971
Telkom SA SOC Ltd.		174,704		599,666
				16,887,652
South Korea — 17.1%
BNK Financial Group Inc.		153,242		1,148,128
DB Insurance Co. Ltd.		28,168		1,619,505
DGB Financial Group Inc.		101,244		932,265
E-MART Inc.		11,684		2,251,465
Hana Financial Group Inc.		173,731		6,664,253
Hankook Tire Co. Ltd.		47,973		2,010,457
Hanwha Chemical Corp.		66,950		1,217,929
Hanwha Corp.		29,000		829,762
Hanwha Life Insurance Co. Ltd.		163,333		711,643
Hyundai Department Store Co. Ltd.		7,723		691,022
Hyundai Marine & Fire Insurance Co. Ltd.		35,962		1,201,802
Hyundai Steel Co.		48,101		2,303,179
ING Life Insurance Korea Ltd.(c)		17,373		543,126
KT&G Corp.		3,162		286,899
Kumho Petrochemical Co. Ltd.		10,091		924,657
LG Corp.		34,106		2,190,701
LG Display Co. Ltd.		138,450		2,643,006
Lotte Chemical Corp.		9,259		2,628,436
Samsung Electronics Co. Ltd.		163,995		7,137,904
SK Hynix Inc.		111,410		8,307,084
SK Telecom Co. Ltd.		11,172		2,634,551
Yuhan Corp.		4,402		945,136
				49,822,910
Taiwan — 14.1%
Airtac International Group		65,000		624,288
AU Optronics Corp.		4,850,000		2,100,114
Chicony Electronics Co. Ltd.		315,169		662,866
China Life Insurance Co. Ltd./Taiwan		1,960,599		1,950,067
Feng TAY Enterprise Co. Ltd.		195,880		1,186,185
General Interface Solution Holding Ltd.		130,000		806,284
Hiwin Technologies Corp.		138,226		1,246,577
Innolux Corp.		5,265,000		1,962,697
Inventec Corp.		1,465,000		1,314,040
Lite-On Technology Corp.		1,209,718		1,455,285
Macronix International		1,127,786		1,211,686
Micro-Star International Co. Ltd.		390,000		1,352,271
Nanya Technology Corp.		390,000		885,007
Novatek Microelectronics Corp.		325,000		1,592,463

Security	Shares		Value
Taiwan (continued)
Phison Electronics Corp.		65,000	$	537,522
Powertech Technology Inc.		195,000		578,366
Realtek Semiconductor Corp.		260,000		1,261,273
Ruentex Industries Ltd.		313,000		641,999
Shin Kong Financial Holding Co. Ltd.		4,274,000		1,690,676
Synnex Technology International Corp.		780,000		1,043,724
Taiwan Business Bank		1,337,504		483,356
Taiwan Semiconductor Manufacturing Co. Ltd.		650,000		5,417,548
Teco Electric and Machinery Co. Ltd.		1,105,000		809,458
United Microelectronics Corp.		5,850,000		3,304,493
Win Semiconductors Corp.		192,000		1,040,794
Wistron Corp.		1,180,063		835,630
WPG Holdings Ltd.		1,227,000		1,553,974
Yageo Corp.		155,358		3,530,519
				41,079,162
Thailand — 1.1%
Central Pattana PCL, NVDR		804,300		2,027,337
Robinson PCL, NVDR		312,900		623,793
TMB Bank PCL, NVDR		6,656,200		447,407
				3,098,537
Turkey —0.4%
Aselsan Elektronik Sanayi Ve Ticaret AS		133,713		521,344
Turkiye Sise ve Cam Fabrikalari AS		365,195		339,703
Turkiye Vakiflar Bankasi TAO, Class D		420,160		219,526
Yapi ve Kredi Bankasi AS(a)(b)		488,052		123,814
				1,204,387
United Arab Emirates — 1.9%
Aldar Properties PJSC		2,757,318		1,448,790
DAMAC Properties Dubai Co. PJSC		1,152,810		659,080
Dubai Investments PJSC		1,397,028		756,867
Dubai Islamic Bank PJSC		828,327		1,154,604
Emaar Properties PJSC		1,068,462		1,457,331
				5,476,672
Total Common Stocks — 92.4% (Cost: $284,757,754)				268,806,449
Investment Companies
India — 3.3%
iShares MSCI India ETF(d)		269,999		9,633,564
Total Investment Companies — 3.3% (Cost: $9,170,771)				9,633,564
Preferred Stocks
Brazil — 2.0%
Itausa-Investimentos Itau SA, Preference Shares, NVS		2,522,038		5,870,330
South Korea — 2.1%
Samsung Electronics Co. Ltd., Preference Shares, NVS		169,854		6,057,767
Total Preferred Stocks — 4.1% (Cost: $13,235,046)				11,928,097
Short-Term Investments
Money Market Funds — 2.7%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(d)(e)(f)		7,667,698		7,669,998

S C H E D U L E  O F  I N V E S T M  E N T S 29

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Multifactor Emerging Markets ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Money Market Funds (continued)
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)		315,226	$	315,226
				7,985,224
Total Short-Term Investments — 2.7% (Cost: $7,984,569)				7,985,224
Total Investments in Securities — 102.5% (Cost: $315,148,140)				298,353,334
Other Assets, Less Liabilities — (2.5)%				(7,282,432	)
Net Assets — 100.0%			$	291,070,902

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

^(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(d)  Affiliate of the Fund.

^(e)  Annualized 7-day yield as of period-end.

^(f)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17		Shares Purchased			Shares Sold			Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)(a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Cash Funds: Institutional, SL Agency Shares		2,360,187		5,307,511	(b)		—			7,667,698	$	7,669,998	$	19,663	(c)	$	(291	)	$	655
BlackRock Cash Funds: Treasury, SL Agency Shares		184,901		130,325	(b)		—			315,226		315,226		5,514			—			—
iShares MSCI India ETF		181,962		287,139			(199,102	)		269,999		9,633,564		48,219			545,288			(237,548	)
											$	17,618,788	$	73,396		$	544,997		$	(236,893	)

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Net of purchases and sales.

^(c)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts MSCI Emerging Markets E-Mini		17		09/21/18	$	897	$	(15,095	)

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	15,095

^(a)  Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.

30 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® Edge MSCI Multifactor Emerging Markets ETF
      

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Equity Contracts
Net Realized Gain (Loss)from:
Futures contracts	$	(68,554	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(15,095	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	482,192

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	268,806,449		$	—	$	—	$	268,806,449
Investment Companies		9,633,564			—		—		9,633,564
Preferred Stocks		11,928,097			—		—		11,928,097
Money Market Funds		7,985,224			—		—		7,985,224
	$	298,353,334		$	—	$	—	$	298,353,334
Derivative financial instruments(a)
Liabilities
Futures Contracts	$	(15,095	)	$	—	$	—	$	(15,095	)

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

See notes to financial statements.

S C H E D U L E  O F  I N V E S T M  E N T S 31

Schedule of Investments   August 31, 2018 iShares^® MSCI EM ESG Optimized ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Brazil — 3.4%
Ambev SA	372,400	$	1,703,779
Atacadao Distribuicao Comercio e Industria Ltda	88,200		311,262
B3 SA - Brasil, Bolsa, Balcao	333,200		1,759,771
Banco Bradesco SA	76,202		464,414
Banco do Brasil SA	80,000		584,452
Banco Santander Brasil SA, NVS	69,800		586,170
Cielo SA	98,000		359,166
Cosan SA	132,600		1,119,992
EDP - Energias do Brasil SA	254,800		829,317
Klabin SA, NVS	68,600		355,479
Localiza Rent a Car SA	68,630		358,633
Natura Cosmeticos SA	88,200		620,810
Ultrapar Participacoes SA	132,600		1,325,002
WEG SA	166,680		774,315
			11,152,562
Chile — 0.9%
Banco Santander Chile	17,932,236		1,377,521
Empresas COPEC SA	107,506		1,647,403
			3,024,924
China — 27.9%
3SBio Inc.(a)	196,000		374,075
58.com Inc., ADR(b)	4,508		342,969
AAC Technologies Holdings Inc.	49,000		543,133
Agricultural Bank of China Ltd., Class H	1,666,000		806,584
Air China Ltd., Class H	412,000		386,337
Alibaba Group Holding Ltd., ADR(b)(c)	67,032		11,731,270
Alibaba Pictures Group Ltd.(b)	5,880,000		711,692
Baidu Inc., ADR(b)	13,132		2,974,135
Bank of China Ltd., Class H	1,862,000		837,424
BBMG Corp., Class H	1,666,000		619,796
Beijing Enterprises Water Group Ltd.	590,000		321,727
BOC Aviation Ltd.(a)	39,200		287,174
Brilliance China Automotive Holdings Ltd.	184,000		291,628
BYD Co. Ltd., Class H(c)	147,000		873,696
BYD Electronic International Co. Ltd.	294,000		309,024
CAR Inc.(b)	882,000		707,946
China Agri-Industries Holdings Ltd.	816,000		324,367
China CITIC Bank Corp. Ltd., Class H	1,862,000		1,162,430
China Construction Bank Corp., Class H	6,370,000		5,640,472
China Everbright Bank Co. Ltd., Class H	2,058,000		860,024
China Everbright International Ltd.(c)	556,000		468,239
China Everbright Ltd.	240,000		420,135
China Evergrande Group(b)(c)	92,000		329,957
China First Capital Group Ltd.(b)	392,000		209,762
China International Capital Corp. Ltd., Class H(a)	274,400		502,030
China International Marine Containers Group Co. Ltd., Class H	303,800		323,196
China Life Insurance Co. Ltd., Class H	196,000		442,997
China Longyuan Power Group Corp. Ltd., Class H	942,000		793,311
China Mengniu Dairy Co. Ltd.	193,000		556,951
China Merchants Bank Co. Ltd., Class H	490,000		1,879,117
China Minsheng Banking Corp. Ltd., Class H	1,421,000		1,017,470
China Molybdenum Co. Ltd., Class H	1,530,000		627,680
China National Building Material Co. Ltd., Class H	382,000		357,232
China Oilfield Services Ltd., Class H	392,000		347,605
China Pacific Insurance Group Co. Ltd., Class H	156,800		584,337
China Shenhua Energy Co. Ltd., Class H	361,500		806,005
China Travel International Investment Hong Kong Ltd.	1,960,000		636,777

Security	Shares		Value
China (continued)
China Vanke Co. Ltd., Class H	107,800	$	373,576
Chongqing Rural Commercial Bank Co. Ltd., Class H	588,000		316,890
CNOOC Ltd.	392,000		693,213
Country Garden Holdings Co. Ltd.	294,000		437,503
CSPC Pharmaceutical Group Ltd.	392,000		988,877
Ctrip.com International Ltd., ADR(b)	10,584		414,364
Fosun International Ltd.	196,000		354,598
GCL-Poly Energy Holdings Ltd.(b)	4,802,000		324,257
GDS Holdings Ltd., ADR(b)	8,330		317,956
Geely Automobile Holdings Ltd.	918,000		1,950,877
Genscript Biotech Corp.(b)	196,000		422,021
Greentown China Holdings Ltd.	343,000		345,233
Guangzhou Automobile Group Co. Ltd., Class H	613,200		665,630
HengTen Networks Group Ltd.(b)(c)	10,976,000		461,476
Huaneng Renewables Corp. Ltd., Class H	1,868,000		597,368
Industrial & Commercial Bank of China Ltd., Class H	4,132,000		3,042,842
JD.com Inc., ADR(b)	21,168		662,558
Kingboard Holdings Ltd.	96,500		343,023
Kingboard Laminates Holdings Ltd.	343,000		323,820
Kingdee International Software Group Co. Ltd.	784,000		892,986
Lee & Man Paper Manufacturing Ltd.	294,000		281,680
Legend Holdings Corp., Class H(a)	225,400		697,833
Lenovo Group Ltd.	2,352,000		1,534,258
MMG Ltd.(b)	1,568,000		785,109
Momo Inc., ADR(b)	9,016		417,351
NetEase Inc., ADR	1,862		368,136
New Oriental Education & Technology Group Inc., ADR	6,566		516,088
Ping An Insurance Group Co. of China Ltd., Class H	392,000		3,775,714
Semiconductor Manufacturing International Corp.(b)	298,500		352,165
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H	167,500		676,496
Shanghai Pharmaceuticals Holding Co. Ltd., Class H	343,000		900,228
Shenzhou International Group Holdings Ltd.	98,000		1,286,040
Shui On Land Ltd.	2,958,000		704,743
Sino Biopharmaceutical Ltd.	490,000		620,546
Sinopharm Group Co. Ltd., Class H	88,000		437,819
Sinotrans Ltd., Class H	1,960,000		821,567
SOHO China Ltd.	1,666,000		668,616
Sunac China Holdings Ltd.	206,000		674,515
TAL Education Group, Class A, ADR(b)	11,368		336,493
Tencent Holdings Ltd.	401,800		17,405,242
Tong Ren Tang Technologies Co. Ltd., Class H	196,000		284,177
Towngas China Co. Ltd.	496,000		456,890
TravelSky Technology Ltd., Class H	208,000		532,661
Vipshop Holdings Ltd., ADR(b)(c)	44,198		308,502
Wuxi Biologics Cayman Inc.(a)(b)	98,000		967,652
Xinjiang Goldwind Science & Technology Co. Ltd., Class H	321,400		343,967
Xinyi Solar Holdings Ltd.	980,000		292,168
Yanzhou Coal Mining Co. Ltd., Class H	184,000		212,626
Yuzhou Properties Co. Ltd	588,000		312,395
YY Inc., ADR(b)	4,508		344,547
Zhongsheng Group Holdings Ltd.	147,000		322,509
			91,976,505
Colombia — 0.8%
Bancolombia SA	27,440		294,633
Cementos Argos SA	594,762		1,756,197
Grupo Argos SA/Colombia	92,120		575,985
			2,626,815

32 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI EM ESG Optimized ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Czech Republic — 0.4%
Komercni Banka AS	27,930	$	1,167,581
Egypt — 0.1%
Commercial International Bank Egypt SAE	67,640		332,585
Greece — 0.3%
Hellenic Telecommunications Organization SA	70,952		907,253
Hungary — 0.7%
MOL Hungarian Oil & Gas PLC	235,298		2,409,623
India — 10.0%
Asian Paints Ltd.	101,430		1,962,709
Axis Bank Ltd., GDR(d)	42,728		1,946,260
Bajaj Finance Ltd.	18,228		734,144
Bharat Petroleum Corp. Ltd.	61,642		314,701
Bharti Airtel Ltd.	88,298		477,865
Bharti Infratel Ltd.	78,988		319,510
Dabur India Ltd.	251,566		1,698,063
Eicher Motors Ltd.	882		348,936
HCL Technologies Ltd.	66,444		980,319
Hindalco Industries Ltd.	119,658		401,440
Hindustan Unilever Ltd.	93,100		2,336,615
Housing Development Finance Corp. Ltd.	107,604		2,937,079
ICICI Bank Ltd., ADR(c)	52,234		503,013
Indiabulls Housing Finance Ltd.	18,718		332,326
Indian Oil Corp. Ltd.	209,230		458,867
Infosys Ltd., ADR, NVS(c)	196,882		4,089,239
Mahindra & Mahindra Ltd., GDR	126,714		1,697,968
Marico Ltd.	126,812		660,555
Nestle India Ltd.	5,978		976,207
Piramal Enterprises Ltd.	11,858		534,959
Reliance Industries Ltd., GDR(a)	61,348		2,122,641
Rural Electrification Corp. Ltd.	201,292		339,998
Siemens Ltd.	24,206		348,024
Tata Consultancy Services Ltd.	109,760		3,216,372
Tech Mahindra Ltd.	32,046		346,005
Titan Co. Ltd.	57,722		725,856
Wipro Ltd., ADR, NVS(c)	164,248		845,877
Yes Bank Ltd.	299,782		1,451,862
			33,107,410
Indonesia — 1.8%
Astra International Tbk PT	2,930,200		1,442,223
Bank Central Asia Tbk PT	176,400		296,994
Bank Danamon Indonesia Tbk PT	686,000		316,687
Bank Mandiri Persero Tbk PT	1,793,400		840,086
Bank Rakyat Indonesia Persero Tbk PT	2,891,000		624,126
Indah Kiat Pulp & Paper Corp. Tbk PT	245,000		317,685
Kalbe Farma Tbk PT	7,526,400		687,237
Unilever Indonesia Tbk PT	107,800		320,912
United Tractors Tbk PT	401,800		938,352
			5,784,302
Malaysia — 3.4%
Astro Malaysia Holdings Bhd	1,151,700		487,640
Axiata Group Bhd(c)	294,000		343,400
CIMB Group Holdings Bhd	519,400		769,716
Malayan Banking Bhd	176,400		427,532
Maxis Bhd(c)	803,600		1,130,261
Nestle Malaysia Bhd	37,200		1,330,673
Petronas Dagangan Bhd	107,800		713,508
Public Bank Bhd	715,400		4,373,001

Security	Shares		Value
Malaysia (continued)
Sime Darby Plantation Bhd	744,800	$	971,439
Telekom Malaysia Bhd	382,200		307,843
Top Glove Corp. Bhd	142,800		387,101
			11,242,114
Mexico — 2.7%
Alsea SAB de CV	130,400		464,163
Arca Continental SAB de CV	160,950		989,581
Cemex SAB de CV, CPO(b)	1,342,600		950,047
Coca-Cola Femsa SAB de CV, Series L, NVS	470,400		2,827,493
Grupo Financiero Banorte SAB de CV, Series O	225,400		1,542,629
Industrias Penoles SAB de CV	20,090		341,206
Infraestructura Energetica Nova SAB de CV	150,600		699,736
Kimberly-Clark de Mexico SAB de CV, Series A	597,815		1,049,275
			8,864,130
Peru — 0.1%
Credicorp Ltd.	1,568		341,855
Philippines — 0.5%
Aboitiz Equity Ventures Inc.	290,080		289,982
SM Prime Holdings Inc.	1,969,800		1,436,789
			1,726,771
Poland — 1.0%
Bank Handlowy w Warszawie SA	16,546		305,704
Bank Zachodni WBK SA	5,586		570,674
KGHM Polska Miedz SA	35,280		870,389
mBank SA	4,410		490,792
Polski Koncern Naftowy ORLEN SA	45,178		1,205,909
			3,443,468
Qatar — 0.7%
Commercial Bank PQSC (The)	37,926		408,570
Ooredoo QPSC	41,365		827,900
Qatar National Bank QPSC	24,304		1,182,854
			2,419,324
Russia — 3.1%
Alrosa PJSC	264,600		398,312
Gazprom PJSC	109,760		244,359
Gazprom PJSC, ADR, NVS	64,072		282,558
Inter RAO UES PJSC	12,348,000		740,655
LUKOIL PJSC	33,124		2,311,666
LUKOIL PJSC, ADR, NVS	3,732		257,508
Novatek PJSC, GDR, NVS(d)	12,936		2,160,312
Novolipetsk Steel PJSC	247,940		609,821
Rosneft Oil Co. PJSC	2,040		13,196
Rosneft Oil Co. PJSC, GDR, NVS	33,319		212,309
RusHydro PJSC	46,746,000		442,032
Sberbank of Russia PJSC	73,710		199,176
Sberbank of Russia PJSC, ADR	167,384		1,816,953
Tatneft PJSC	55,860		649,466
			10,338,323
South Africa — 6.8%
Absa Group Ltd.	38,220		424,036
Clicks Group Ltd.	23,912		331,312
Exxaro Resources Ltd.	51,646		524,700
FirstRand Ltd.	218,834		1,055,989
Foschini Group Ltd. (The)	27,538		328,154
Growthpoint Properties Ltd.	629,944		1,093,816
Imperial Holdings Ltd.	59,486		837,118
Investec Ltd.	270,676		1,776,702
Kumba Iron Ore Ltd.	43,022		778,411

S C H E D U L E  O F  I N V E S T M  E N T S 33

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI EM ESG Optimized ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
South Africa (continued)
Mondi Ltd.	31,476	$	881,253
Mr. Price Group Ltd.	20,972		322,555
Naspers Ltd., Class N	28,028		6,247,453
Nedbank Group Ltd.	16,268		308,655
NEPI Rockcastle PLC	70,560		674,236
Netcare Ltd.	372,204		745,615
Old Mutual Ltd.(b)	896,504		1,860,164
Sanlam Ltd.	63,210		342,297
Sasol Ltd.	9,078		356,893
Standard Bank Group Ltd.	105,350		1,339,880
Vodacom Group Ltd.	218,540		1,885,250
Woolworths Holdings Ltd./South Africa	122,402		452,974
			22,567,463
South Korea — 14.1%
Amorepacific Corp.	2,156		509,390
AMOREPACIFIC Group	6,370		551,649
BNK Financial Group Inc.	186,629		1,398,271
Celltrion Inc.(b)	3,528		855,734
CJ CheilJedang Corp.	2,058		633,217
DGB Financial Group Inc.	103,096		949,319
GS Engineering & Construction Corp.	8,364		359,912
GS Holdings Corp.	19,600		934,968
Hana Financial Group Inc.	8,526		327,054
Hankook Tire Co. Ltd.	19,110		800,864
Hanwha Chemical Corp.	22,148		402,908
Hyundai Marine & Fire Insurance Co. Ltd.	11,956		399,554
Hyundai Motor Co.	3,136		352,154
Kangwon Land Inc.	13,622		354,271
KB Financial Group Inc.	44,688		2,075,524
LG Chem Ltd.	5,684		1,868,880
LG Corp.	10,290		660,949
LG Display Co. Ltd.	58,996		1,126,232
LG Electronics Inc.	19,012		1,311,702
LG Household & Health Care Ltd.	1,078		1,225,055
LG Innotek Co. Ltd.	2,744		353,738
NAVER Corp.	1,568		1,059,279
NCSoft Corp.	1,078		375,264
POSCO	10,976		3,219,390
Samsung Electro-Mechanics Co. Ltd.	4,802		694,535
Samsung Electronics Co. Ltd.	306,348		13,333,837
Samsung Fire & Marine Insurance Co. Ltd.	2,352		559,924
Samsung SDI Co. Ltd.	3,920		831,083
Shinhan Financial Group Co. Ltd.	76,636		3,001,688
SK Holdings Co. Ltd.	4,435		1,047,842
SK Hynix Inc.	26,068		1,943,713
SK Innovation Co. Ltd.	4,998		866,562
SK Telecom Co. Ltd.	4,606		1,086,174
S-Oil Corp.	4,704		504,989
ViroMed Co. Ltd.(b)	1,666		354,857
			46,330,482
Taiwan — 13.2%
Acer Inc.	1,078,000		901,989
ASE Technology Holding Co. Ltd.	420,186		1,030,116
Cathay Financial Holding Co. Ltd.	980,000		1,678,268
China Steel Corp.	588,000		481,465
Chunghwa Telecom Co. Ltd.	1,372,000		4,846,557
Delta Electronics Inc.	120,000		480,547
E.Sun Financial Holding Co. Ltd.	4,080,514		3,002,429
Eva Airways Corp.	2,548,441		1,294,341

Security	Shares		Value
Taiwan (continued)
Far Eastern New Century Corp.	1,568,000	$	1,825,037
Far EasTone Telecommunications Co. Ltd.	196,000		467,107
Fubon Financial Holding Co. Ltd.	1,428,000		2,366,440
Hiwin Technologies Corp.	18,496		166,804
Hotai Motor Co. Ltd.	103,000		892,007
Inventec Corp.	1,274,000		1,142,722
Lite-On Technology Corp.	488,039		587,108
Macronix International	299,721		322,018
MediaTek Inc.	104,000		851,571
President Chain Store Corp.	196,000		2,137,718
Taiwan Semiconductor Manufacturing Co. Ltd.	2,058,000		17,152,792
Win Semiconductors Corp.	98,000		531,239
Wistron Corp.	1,886,768		1,336,064
			43,494,339
Thailand — 3.5%
BTS Group Holdings PCL, NVDR	7,506,800		2,121,537
Central Pattana PCL, NVDR	509,600		1,284,510
Kasikornbank PCL, NVDR	264,600		1,705,793
Minor International PCL, NVDR	1,450,400		1,750,406
PTT Exploration & Production PCL, NVDR	176,400		768,011
PTT PCL, NVDR	709,500		1,138,062
Siam Cement PCL (The),NVDR	147,000		2,030,064
Siam Commercial Bank PCL (The), NVDR	156,800		709,025
			11,507,408
Turkey — 0.4%
Anadolu Efes Biracilik Ve Malt Sanayii AS	88,788		280,218
Arcelik AS	300,762		602,682
Coca-Cola Icecek AS	95,452		411,659
			1,294,559
United Arab Emirates — 0.6%
Abu Dhabi Commercial Bank PJSC	595,350		1,150,779
First Abu Dhabi Bank PJSC	179,340		722,604
			1,873,383
Total Common Stocks — 96.4% (Cost: $326,791,645)			317,933,179
Preferred Stocks
Brazil — 2.3%
Banco Bradesco SA, Preference Shares, NVS	323,455		2,228,017
Cia. Brasileira de Distribuicao, Preference Shares, NVS	41,200		816,680
Cia. Energetica de Minas Gerais, Preference Shares, NVS	392,082		709,918
Itau Unibanco Holding SA, Preference Shares, NVS	225,440		2,312,892
Itausa-Investimentos Itau SA, Preference Shares, NVS	411,631		958,118
Telefonica Brasil SA, Preference Shares, NVS	71,400		693,534
			7,719,159
Chile — 0.3%
Embotelladora Andina SA, Class B, Preference Shares	100,488		388,588
Sociedad Quimica y Minera de Chile SA, Series B, Preference Shares	10,584		459,814
			848,402
South Korea — 0.7%
Samsung Electronics Co. Ltd., Preference Shares, NVS	64,386		2,296,298
Total Preferred Stocks — 3.3% (Cost: $12,553,820)			10,863,859

34 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI EM ESG Optimized ETF
  (Percentages shown are based on Net Assets)

Security	Shares		Value
Rights
China — 0.0%
China Everbright International Ltd., NVS (Expires 09/13/18)(b)(c)		326,666	$	25,388
Total Rights — 0.0% (Cost: $0)				25,388
Warrants
Thailand — 0.0%
BTS Group Holdings PCL (Expires 08/01/19)(b)		1,034,799		—
Total Warrants — 0.0% (Cost: $0)				—
Short-Term Investments
Money Market Funds — 5.7%
BlackRock Cash Funds: Institutional, SL Agency Shares, 2.15%(e)(f)(g)		18,597,393		18,602,972
Total Short-Term Investments — 5.7% (Cost: $18,600,479)				18,602,972
Total Investments in Securities — 105.4% (Cost: $357,945,944)				347,425,398
Other Assets, Less Liabilities — (5.4)%				(17,672,699	)
Net Assets — 100.0%			$	329,752,699

^(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(b)  Non-income producing security.

^(c)  All or a portion of this security is on loan.

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

^(e)  Affiliate of the Fund.

^(f)  Annualized 7-day yield as of period-end.

^(g)  All or a portion of this security was purchased with cash collateral received from loaned securities.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

Affiliated Issuer	Shares Held at 08/31/17	Net Activity		Shares Held at 08/31/18		Value at 08/31/18		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation	)
BlackRock Cash Funds: Institutional, SL Agency Shares	3,986,796	14,610,597		18,597,393	$	18,602,972	$	75,484	(b)	$	(70	)	$	2,435
BlackRock Cash Funds: Treasury, SL Agency Shares	113,313	(113,313	)	—		—		5,768			—			—
					$	18,602,972	$	81,252		$	(70	)	$	2,435

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b)  Includes securities lending income earned from the reinvestment of cash collateral from loaned securities (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities, and less fees paid to BTC as securities lending agent.

Futures Contracts

Futures contracts outstanding as of August 31, 2018 were as follows:

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
MSCI Emerging Markets E-Mini		20		09/21/18	$	1,055	$	(11,283	)

S C H E D U L E  O F  I N V E S T M  E N T S 35

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI EM ESG Optimized ETF
      

Derivative Financial Instruments Categorized by Risk Exposure

As of August 31, 2018, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:

	Equity Contracts
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	11,283

^(a) Represents cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported separately within the Statement of Assets and Liabilities.    

For the year ended August 31, 2018, the effect of derivative financial instruments in the Statement of Operations was as follows:    

	Equity Contracts
Net Realized Gain (Loss) from:
Futures contracts	$	(99,381	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	(11,283	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	457,754

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

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, refer to the Notes to Financial Statements.

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	315,513,855		$	2,419,324		$	—	$	317,933,179
Preferred Stocks		10,863,859			—			—		10,863,859
Rights		—			25,388			—		25,388
Warrants		—			0	(a)		—		0	(a)
Money Market Funds		18,602,972			—			—		18,602,972
	$	344,980,686		$	2,444,712		$	—	$	347,425,398
Derivative financial instruments(b)
Liabilities
Futures Contracts	$	(11,283	)	$	—		$	—	$	(11,283	)

^(a)  Rounds to less than $1.

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

See notes to financial statements.

36 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments   August 31, 2018 iShares^® MSCI Emerging Markets ex China ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Brazil — 5.3%
Ambev SA	13,000	$	59,477
B3 SA - Brasil, Bolsa, Balcao	6,200		32,745
Banco Bradesco SA	2,420		14,749
Banco do Brasil SA	2,600		18,995
Banco Santander Brasil SA, NVS	1,200		10,077
BB Seguridade Participacoes SA	2,400		14,260
BR Malls Participacoes SA(a)	3,400		7,551
BRF SA(a)	1,400		6,840
CCR SA	4,000		9,087
Centrais Eletricas Brasileiras SA(a)	1,200		4,608
Cia. de Saneamento Basico do Estado de Sao Paulo	1,000		5,922
Cia. Siderurgica Nacional SA(a)	1,800		3,836
Cielo SA	3,600		13,194
Embraer SA	2,000		9,514
Equatorial Energia SA	600		8,301
Fibria Celulose SA	800		15,374
Hypera SA	1,000		6,650
JBS SA	1,800		4,107
Klabin SA, NVS	2,200		11,400
Kroton Educacional SA	3,400		8,434
Localiza Rent a Car SA	1,600		8,361
Lojas Renner SA	2,400		16,473
Magazine Luiza SA	200		6,323
Multiplan Empreendimentos Imobiliarios SA	1,200		5,426
Petroleo Brasileiro SA	8,200		43,945
Raia Drogasil SA	600		11,213
Rumo SA(a)	3,400		11,743
Suzano Papel e Celulose SA	1,400		16,076
TIM Participacoes SA	2,600		7,756
Ultrapar Participacoes SA	1,000		9,992
Vale SA	8,871		115,449
WEGSA	2,340		10,870
			528,748
Chile — 1.3%
Banco de Chile	53,498		7,740
Banco de Credito e Inversiones SA	138		8,835
Banco Santander Chile	153,417		11,785
Cencosud SA	3,790		9,018
Cia. Cervecerias Unidas SA	468		6,189
Empresas CMPC SA	2,794		11,052
Empresas COPEC SA	1,394		21,361
Enel Americas SA	103,930		15,499
Enel Chile SA	123,005		12,068
Latam Airlines Group SA	1,112		10,457
SACI Falabella	2,030		16,201
			130,205
Colombia — 0.5%
Bancolombia SA	980		10,523
Ecopetrol SA	14,616		16,364
Grupo Argos SA/Colombia	1,282		8,016
Grupo de Inversiones Suramericana SA	988		11,643
Interconexion Electrica SA ESP	1,712		7,577
			54,123
Czech Republic — 0.3%
CEZ AS	444		11,303
Komercni Banka AS	260		10,869

Security	Shares		Value
Czech Republic (continued)
Moneta Money Bank AS(b)	1,338	$	4,701
			26,873
Egypt — 0.2%
Commercial International Bank Egypt SAE	3,660		17,996
Greece — 0.4%
Alpha Bank AE(a)	4,454		8,198
Eurobank Ergasias SA(a)	5,726		4,897
Hellenic Telecommunications Organization SA	1,016		12,991
JUMBO SA	434		6,504
OPAP SA	971		10,456
			43,046
Hungary — 0.4%
MOL Hungarian Oil & Gas PLC	1,104		11,306
OTP Bank Nyrt	680		25,137
Richter Gedeon Nyrt	416		8,209
			44,652
Indonesia — 2.9%
Adaro Energy Tbk PT	44,800		5,672
Astra International Tbk PT	61,400		30,221
Bank Central Asia Tbk PT	28,600		48,152
Bank Mandiri Persero Tbk PT	57,000		26,701
Bank Negara Indonesia Persero Tbk PT	22,200		11,756
Bank Rakyat Indonesia Persero Tbk PT	161,400		34,844
Charoen Pokphand Indonesia Tbk PT	26,000		8,790
Gudang Garam Tbk PT	1,600		7,929
Hanjaya Mandala Sampoerna Tbk PT	32,600		8,476
Indah Kiat Pulp & Paper Corp. Tbk PT	7,200		9,336
Indocement Tunggal Prakarsa Tbk PT	5,800		6,979
Indofood Sukses Makmur Tbk PT	16,000		6,925
Kalbe Farma Tbk PT	56,200		5,132
Matahari Department Store Tbk PT	9,000		4,582
Perusahaan Gas Negara Persero Tbk PT	31,000		4,504
Semen Indonesia Persero Tbk PT	11,400		7,314
Telekomunikasi Indonesia Persero Tbk PT	141,400		33,502
Unilever Indonesia Tbk PT	5,000		14,884
United Tractors Tbk PT	4,600		10,743
			286,442
Malaysia — 3.5%
Axiata Group Bhd	8,600		10,045
British American Tobacco Malaysia Bhd	400		3,296
CIMB Group Holdings Bhd	13,600		20,154
Dialog Group Bhd	8,800		7,452
DiGi.Com Bhd	10,200		11,690
Gamuda Bhd	10,800		9,724
Genting Bhd	6,800		14,264
Genting Malaysia Bhd	9,200		11,686
Hartalega Holdings Bhd	4,400		7,602
Hong Leong Bank Bhd	2,600		13,008
IHH Healthcare Bhd	6,000		8,147
IOI Corp. Bhd	8,200		9,019
Kuala Lumpur Kepong Bhd	1,200		7,201
Malayan Banking Bhd	12,400		30,053
Malaysia Airports Holdings Bhd	4,800		10,921
Maxis Bhd	6,800		9,564
MISC Bhd	6,000		8,658
Nestle Malaysia Bhd	200		7,154
Petronas Chemicals Group Bhd	6,800		15,654
Petronas Gas Bhd	2,400		10,921

S C H E D U L E  O F  I N V E S T M  E N T S 37

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI Emerging Markets ex China ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Malaysia (continued)
PPB Group Bhd	2,640	$	10,793
Press Metal Aluminium Holdings Bhd	3,000		3,635
Public Bank Bhd	8,400		51,346
Sime Darby Bhd	7,800		4,840
Sime Darby Plantation Bhd	6,800		8,869
Sime Darby Property Bhd	24,600		7,543
Tenaga Nasional Bhd	8,600		32,814
YTL Corp. Bhd	12,240		3,961
			350,014
Mexico — 4.5%
Alfa SAB de CV, Class A	9,800		12,880
America Movil SAB de CV, Series L, NVS	94,200		79,073
Arca Continental SAB de CV	1,200		7,378
Banco Santander Mexico SA Institucion de Banca Multiple
Grupo Financiero Santand, Class B	4,200		6,642
Cemex SAB de CV, CPO(a)	40,400		28,588
Coca-Cola Femsa SAB de CV, Series L, NVS	1,400		8,415
Fibra Uno Administracion SA de CV	8,600		11,271
Fomento Economico Mexicano SAB de CV	5,400		51,601
Gruma SAB de CV, Series B	730		9,241
Grupo Aeroportuario del Pacifico SAB de CV, Series B	1,200		12,379
Grupo Aeroportuario del Sureste SAB de CV, Series B	770		14,414
Grupo Bimbo SAB de CV, Series A	6,000		12,473
Grupo Financiero Banorte SAB de CV, Series O	7,000		47,908
Grupo Financiero Inbursa SAB de CV, Series O	5,000		7,939
Grupo Mexico SAB de CV, Series B	9,800		28,712
Grupo Televisa SAB, CPO	7,200		25,960
Industrias Penoles SAB de CV	400		6,794
Infraestructura Energetica Nova SAB de CV	1,200		5,576
Kimberly-Clark de Mexico SAB de CV, Series A	5,000		8,776
Mexichem SAB de CV	3,600		12,180
Promotora y Operadora de Infraestructura SAB de CV	670		7,094
Wal-Mart de Mexico SAB de CV	14,200		39,279
			444,573
Pakistan — 0.1%
Lucky Cement Ltd.	1,350		5,881
Peru — 0.6%
Cia. de Minas Buenaventura SAA, ADR, NVS	538		6,773
Credicorp Ltd.	190		41,424
Southern Copper Corp.	258		11,259
			59,456
Philippines — 1.5%
Aboitiz Equity Ventures Inc.	7,300		7,297
Ayala Corp.	790		14,775
Ayala Land Inc.	26,000		21,639
BDO Unibank Inc.	7,400		18,006
GT Capital Holdings Inc.	372		6,095
JG Summit Holdings Inc.	9,680		10,863
Jollibee Foods Corp.	1,620		8,726
Metro Pacific Investments Corp.	66,600		6,788
PLDT Inc.	300		7,816
SM Investments Corp.	720		13,008
SM Prime Holdings Inc.	31,000		22,612
Universal Robina Corp.	3,740		9,758
			147,383
Poland — 1.8%
Alior Bank SA(a)	384		7,100
Bank Polska Kasa Opieki SA	562		17,843

Security	Shares		Value
Poland (continued)
Bank Zachodni WBK SA	122	$	12,464
CCC SA	96		5,624
CD Projekt SA(a)	194		10,858
KGHM Polska Miedz SA	454		11,201
LPP SA	4		10,004
mBank SA	36		4,006
PGE Polska Grupa Energetyczna SA(a)	3,406		8,329
Polski Koncern Naftowy ORLEN SA	916		24,450
Polskie Gornictwo Naftowe i Gazownictwo SA(a)	6,568		10,386
Powszechna Kasa Oszczednosci Bank Polski SA	2,750		31,531
Powszechny Zaklad Ubezpieczen SA	1,962		23,808
			177,604
Qatar — 1.4%
Commercial Bank PQSC (The)	470		5,063
Ezdan HoldingGroup QSC(a)	2,628		7,437
Industries Qatar QSC	507		17,190
Masraf Al Rayan QSC	1,254		12,926
Ooredoo QPSC	320		6,405
Qatar Electricity & Water Co. QSC	208		10,885
Qatar Insurance Co. SAQ	660		6,644
Qatar Islamic Bank SAQ	281		10,756
Qatar National Bank QPSC	1,165		56,700
			134,006
Russia — 4.7%
Alrosa PJSC	7,800		11,742
Gazprom PJSC	29,640		65,988
Inter RAO UES PJSC	118,000		7,078
LUKOIL PJSC	1,214		84,723
Magnit PJSC, GDR, NVS(c)	1,006		14,858
MMC Norilsk Nickel PJSC	176		29,319
Mobile TeleSystems PJSC, ADR, NVS	1,392		10,788
Moscow Exchange MICEX-RTS PJSC	5,100		7,423
Novatek PJSC, GDR, NVS(c)	254		42,418
Novolipetsk Steel PJSC	4,620		11,363
Polyus PJSC	62		4,025
Rosneft Oil Co. PJSC, GDR, NVS(c)	3,122		19,893
RusHydro PJSC	406,000		3,839
Sberbank of Russia PJSC,ADR	7,118		77,266
Severstal PJSC	500		8,063
Surgutneftegas PJSC	20,000		8,534
Tatneft PJSC	4,360		50,692
VTB Bank PJSC, GDR, NVS(c)	3,834		4,831
X5 Retail Group NV, GDR(c)	288		6,799
			469,642
South Africa — 9.0%
Absa Group Ltd.	1,960		21,745
AngloGold Ashanti Ltd.	1,138		9,158
Aspen Pharmacare Holdings Ltd.	1,154		22,954
Bid Corp. Ltd.	982		21,018
Bidvest Group Ltd. (The)	852		12,561
Capitec Bank Holdings Ltd.	116		7,939
Clicks Group Ltd.	650		9,006
Discovery Ltd.	1,012		12,102
Exxaro Resources Ltd.	638		6,482
FirstRand Ltd.	9,082		43,825
Foschini Group Ltd. (The)	688		8,199
Gold Fields Ltd.	2,526		6,207
Growthpoint Properties Ltd.	8,894		15,443
Hyprop Investments Ltd.	1,042		7,254

38 2 0 1 8  I S H A R E S   A N N U A L  R E P O R T  T O  S H A R E H O L D E R  S

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI Emerging Markets ex China ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
South Africa (continued)
Imperial Holdings Ltd.	504	$	7,093
Investec Ltd.	946		6,210
Life Healthcare Group Holdings Ltd.	4,170		7,588
Mondi Ltd.	360		10,079
Mr. Price Group Ltd.	766		11,781
MTN Group Ltd.	5,190		31,524
Naspers Ltd., Class N	1,222		272,384
Nedbank Group Ltd.	510		9,676
NEPI Rockcastle PLC	1,104		10,549
Netcare Ltd.	4,040		8,093
Old Mutual Ltd.(a)	13,496		28,003
Pick n Pay Stores Ltd.	884		4,374
PSG Group Ltd.	428		6,574
Rand Merchant Investment Holdings Ltd.	2,390		6,662
Redefine Properties Ltd.	17,594		12,429
Reinet Investments SCA	408		7,934
Remgro Ltd.	1,462		21,395
RMB Holdings Ltd.	1,942		11,174
Sanlam Ltd.	4,776		25,863
Sappi Ltd.	1,684		11,539
Sasol Ltd.	1,598		62,824
Shoprite Holdings Ltd.	1,232		17,154
SPAR Group Ltd. (The)	596		8,339
Standard Bank Group Ltd.	3,732		47,465
Tiger Brands Ltd.	488		9,535
Truworths International Ltd.	1,290		7,576
Vodacom Group Ltd.	1,542		13,302
Woolworths Holdings Ltd./South Africa	3,244		12,005
			893,017
South Korea — 20.4%
Amorepacific Corp.	98		23,154
AMOREPACIFIC Group	96		8,314
BGF retail Co. Ltd.	29		4,468
BNK Financial Group Inc.	788		5,904
Celltrion Healthcare Co. Ltd.(a)	97		7,877
Celltrion Inc.(a)	226		54,817
Celltrion Pharm Inc.(a)	44		3,166
CJ CheilJedang Corp.	28		8,615
CJ Corp.	52		6,166
CJ ENM Co. Ltd.	28		6,339
Coway Co. Ltd.	160		13,138
Daelim Industrial Co. Ltd.	116		8,535
DB Insurance Co. Ltd.	152		8,739
DGB Financial Group Inc.	506		4,659
E-MART Inc.	66		12,718
GS Holdings Corp.	154		7,346
Hana Financial Group Inc.	880		33,756
Hankook Tire Co. Ltd.	246		10,309
Hanmi Pharm Co. Ltd.	16		7,151
Hanon Systems	638		6,878
Hanwha Chemical Corp.	362		6,585
Hanwha Corp.	104		2,976
HDC Hyundai Development Co-Engineering & Construction, Class E(a)	114		5,725
HLB Inc.(a)	86		8,035
Hotel Shilla Co. Ltd.	92		8,926
Hyundai Engineering & Construction Co. Ltd.	232		12,505
Hyundai Glovis Co. Ltd.	62		6,739
Hyundai Heavy Industries Co. Ltd.(a)	140		14,841
Hyundai Heavy Industries Holdings Co. Ltd.(a)	42		14,243

Security	Shares		Value
South Korea (continued)
Hyundai Marine & Fire Insurance Co. Ltd.	202	$	6,751
Hyundai Mobis Co. Ltd.	198		39,844
Hyundai Motor Co.	436		48,960
Hyundai Steel Co.	242		11,587
Industrial Bank of Korea	744		9,959
Kakao Corp.	126		14,149
Kangwon Land Inc.	378		9,831
KB Financial Group Inc.	1,040		48,303
KCC Corp.	26		7,579
KEPCO Plant Service & Engineering Co. Ltd.	62		2,027
Kia Motors Corp.	802		23,091
Korea Aerospace Industries Ltd.(a)	232		8,701
Korea Electric Power Corp.	766		20,988
Korea Investment Holdings Co. Ltd.	126		8,071
Korea Zinc Co. Ltd.	26		9,471
KT&G Corp.	330		29,942
LG Chem Ltd.	136		44,716
LG Corp.	306		19,655
LG Display Co. Ltd.	528		10,080
LG Electronics Inc.	314		21,664
LG Household & Health Care Ltd.	28		31,820
LG Innotek Co. Ltd.	34		4,383
LG Uplus Corp.	588		8,293
Lotte Chemical Corp.	48		13,626
Lotte Corp.(a)	78		3,377
Lotte Shopping Co. Ltd.	35		5,660
Medy-Tox Inc.	14		8,424
Mirae Asset Daewoo Co. Ltd.	1,168		8,625
NAVER Corp.	80		54,045
NCSoft Corp.	52		18,102
Netmarble Corp.(b)	68		7,117
NH Investment & Securities Co. Ltd.	514		6,211
OCI Co. Ltd.	46		4,773
Orion Corp./Republic of Korea	58		5,575
POSCO	222		65,115
Samsung Biologics Co. Ltd.(a)(b)	46		19,133
Samsung C&T Corp.	218		24,088
Samsung Electro-Mechanics Co. Ltd.	142		20,538
Samsung Electronics Co. Ltd.	13,192		574,184
Samsung Engineering Co. Ltd.(a)	390		5,904
Samsung Fire & Marine Insurance Co. Ltd.	92		21,902
Samsung Heavy Industries Co. Ltd.(a)	1,614		10,266
Samsung Life Insurance Co. Ltd.	220		18,281
Samsung SDI Co. Ltd.	146		30,954
Samsung SDS Co. Ltd.	100		21,785
Samsung Securities Co. Ltd.	254		7,382
Shinhan Financial Group Co. Ltd.	1,262		49,430
Shinsegae Inc.	20		5,830
SillaJen Inc.(a)	146		10,021
SK Holdings Co. Ltd.	100		23,627
SK Hynix Inc.	1,660		123,775
SK Innovation Co. Ltd.	182		31,556
SK Telecom Co. Ltd.	58		13,677
S-Oil Corp.	126		13,527
ViroMed Co. Ltd.(a)	38		8,094
Woori Bank	1,188		17,396
Yuhan Corp.	33		7,085
			2,021,574
Taiwan — 17.7%
Acer Inc.	8,000		6,694

S C H E D U L E  O F  I N V E S T M  E N T S 39

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI Emerging Markets ex China ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Taiwan (continued)
ASE Technology Holding Co. Ltd.	10,000	$	24,516
Asia Cement Corp.	10,000		13,625
Asustek Computer Inc.	2,000		17,027
AU Optronics Corp.	18,000		7,794
Catcher Technology Co. Ltd.	2,000		24,516
Cathay Financial Holding Co. Ltd.	24,000		41,100
Chailease Holding Co. Ltd.	4,080		13,881
Chang Hwa Commercial Bank Ltd.	16,800		10,447
Cheng Shin Rubber Industry Co. Ltd.	4,000		6,108
China Airlines Ltd.	11,000		3,370
China Development Financial Holding Corp.	48,000		17,347
China Life Insurance Co. Ltd./Taiwan	9,243		9,193
China Steel Corp.	36,000		29,477
Chunghwa Telecom Co. Ltd.	10,000		35,325
Compal Electronics Inc.	16,000		10,028
CTBC Financial Holding Co. Ltd.	44,000		30,942
Delta Electronics Inc.	6,000		24,027
E.Sun Financial Holding Co. Ltd.	27,671		20,360
Far Eastern New Century Corp.	10,000		11,639
Far EasTone Telecommunications Co. Ltd.	6,000		14,299
Feng TAY Enterprise Co. Ltd.	2,000		12,111
First Financial Holding Co. Ltd.	26,785		17,921
Formosa Chemicals & Fibre Corp.	10,000		40,046
Formosa Petrochemical Corp.	4,000		16,409
Formosa Plastics Corp.	12,000		43,952
Foxconn Technology Co. Ltd.	4,000		10,158
Fubon Financial Holding Co. Ltd.	16,000		26,515
Hon Hai Precision Industry Co. Ltd.	44,000		115,318
Hotai Motor Co. Ltd.	600		5,196
Hua Nan Financial Holdings Co. Ltd.	24,139		14,146
Innolux Corp.	28,000		10,438
Inventec Corp.	10,000		8,970
Largan Precision Co. Ltd.	288		44,117
Lite-On Technology Corp.	8,000		9,624
Macronix International	6,120		6,575
MediaTek Inc.	4,000		32,753
Mega Financial Holding Co. Ltd.	32,000		26,879
Micro-Star International Co. Ltd.	2,000		6,935
Nan Ya Plastics Corp.	14,000		38,926
Nanya Technology Corp.	4,000		9,077
Novatek Microelectronics Corp.	2,000		9,800
Pegatron Corp.	6,000		12,932
Pou Chen Corp.	8,000		8,816
Powertech Technology Inc.	2,000		5,932
President Chain Store Corp.	2,000		21,813
Quanta Computer Inc.	8,000		13,752
Shin Kong Financial Holding Co. Ltd.	26,000		10,285
SinoPac Financial Holdings Co. Ltd.	40,259		14,746
Synnex Technology International Corp.	2,000		2,676
Taishin Financial Holding Co. Ltd.	37,032		17,422
Taiwan Cement Corp.	11,000		15,167
Taiwan Cooperative Financial Holding Co. Ltd.	25,461		15,128
Taiwan High Speed Rail Corp.	8,000		6,746
Taiwan Mobile Co. Ltd.	4,000		13,935
Taiwan Semiconductor Manufacturing Co. Ltd.	68,000		566,759
Teco Electric and Machinery Co. Ltd.	10,000		7,325
Uni-President Enterprises Corp.	14,000		35,370
United Microelectronics Corp.	40,000		22,595
Vanguard International Semiconductor Corp.	2,000		4,851
Walsin Technology Corp.	1,000		10,239

Security	Shares		Value
Taiwan (continued)
Win Semiconductors Corp.	1,000	$	5,421
Winbond Electronics Corp.	14,000		7,863
Wistron Corp.	10,598		7,505
WPG Holdings Ltd.	6,000		7,599
Yageo Corp.	1,198		27,225
Yuanta Financial Holding Co. Ltd.	26,000		13,163
			1,752,846
Thailand — 3.5%
Advanced Info Service PCL, NVDR	3,400		20,984
Airports of Thailand PCL, NVDR	12,400		25,289
Bangkok Dusit Medical Services PCL, NVDR	14,400		11,549
Banpu PCL, NVDR	11,000		6,822
Berli Jucker PCL, NVDR	5,400		9,569
Bumrungrad Hospital PCL, NVDR	1,400		7,764
Central Pattana PCL, NVDR	3,700		9,326
Charoen Pokphand Foods PCL, NVDR	11,800		9,284
CP ALL PCL, NVDR	14,800		30,522
Energy Absolute PCL, NVDR	4,600		5,446
Indorama Ventures PCL, NVDR	6,400		11,732
Kasikornbank PCL, NVDR	2,400		15,472
Kasikornbank PCL Foreign	3,400		22,023
Krung Thai Bank PCL, NVDR	14,200		8,417
Minor International PCL, NVDR	6,600		7,965
PTT Exploration & Production PCL, NVDR	4,800		20,898
PTT Global Chemical PCL, NVDR	7,400		18,483
PTT PCL, NVDR	30,000		48,121
Siam Cement PCL (The),NVDR	900		12,429
Siam Commercial Bank PCL (The),NVDR	5,400		24,418
Thai Oil PCL, NVDR	3,400		8,752
True Corp. PCL, NVDR	35,600		7,288
			342,553
Turkey — 0.7%
Akbank Turk AS	9,564		8,319
BIM Birlesik Magazalar AS	714		7,871
Eregli Demir ve Celik Fabrikalari TAS	4,846		8,664
Haci Omer Sabanci Holding AS	5,430		5,838
KOC Holding AS	3,578		8,093
Petkim Petrokimya Holding AS	3,799		3,161
Tupras Turkiye Petrol Rafinerileri AS	408		7,270
Turk Hava Yollari AO(a)	1,854		4,558
Turkcell Iletisim Hizmetleri AS	3,628		5,807
Turkiye Garanti Bankasi AS	9,784		8,791
			68,372
United Arab Emirates — 1.0%
Abu Dhabi Commercial Bank PJSC	6,136		11,861
Aldar Properties PJSC	17,462		9,175
DAMAC Properties Dubai Co. PJSC	7,026		4,017
DP World Ltd	546		11,685
Dubai Islamic Bank PJSC	4,266		5,946
Emaar Properties PJSC	10,876		14,834
Emirates Telecommunications Group Co. PJSC	5,602		25,851
First Abu Dhabi Bank PJSC	4,000		16,117
			99,486
Total Common Stocks — 81.7% (Cost: $8,213,045)			8,098,492

40 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI Emerging Markets ex China ETF   (Percentages shown are based on Net Assets)

Security	Shares		Value
Investment Companies
India — 13.5%
iShares MSCI India ETF(d)	37,615	$	1,342,103
Total Investment Companies — 13.5% (Cost: $1,266,216)			1,342,103
Preferred Stocks
Brazil — 3.0%
Banco Bradesco SA, Preference Shares, NVS	9,680		66,678
Braskem SA, Class A, Preference Shares, NVS	400		5,748
Cia. Brasileira de Distribuicao, Preference Shares, NVS	600		11,894
Cia. Energetica de Minas Gerais, Preference Shares, NVS	2,908		5,265
Gerdau SA, Preference Shares, NVS	3,000		11,679
Itau Unibanco Holding SA, Preference Shares, NVS	9,200		94,387
Itausa-Investimentos Itau SA, Preference Shares, NVS	13,284		30,920
Lojas Americanas SA, Preference Shares, NVS	2,400		9,087
Petroleo Brasileiro SA, Preference Shares, NVS	10,800		50,486
Telefonica Brasil SA, Preference Shares, NVS	1,200		11,656
			297,800
Chile — 0.2%
Embotelladora Andina SA, Class B, Preference Shares	1,708		6,605
Sociedad Quimica y Minera de Chile SA, Series B,
Preference Shares	308		13,381
			19,986
Colombia — 0.1%
Bancolombia SA, Preference Shares, NVS	922		10,021
Russia — 0.1%
Surgutneftegas PJSC, Preference Shares, NVS	20,000		11,111

Security	Shares		Value
South Korea — 1.0%
Hyundai Motor Co.
Preference Shares, NVS	56	$	3,939
Series 2, Preference Shares, NVS	86		6,614
Samsung Electronics Co. Ltd., Preference Shares, NVS	2,426		86,522
			97,075
Total Preferred Stocks — 4.4% (Cost: $474,507)			435,993
Short-Term Investments
Money Market Funds — 0.2%
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.89%(d)(e)	17,460		17,460
Total Short-Term Investments — 0.2% (Cost: $17,460)			17,460
Total Investments in Securities — 99.8% (Cost: $9,971,228)			9,894,048
Other Assets, Less Liabilities — 0.2%			24,557
Net Assets — 100.0%		$	9,918,605
(a)   Non-income producing security. (b)   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. (c)   This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. (d)   Affiliate of the Fund. (e)   Annualized 7-day yield as of period-end.

Affiliates

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2018, for purposes of Section 2(a)(3) of the 1940 Act, were as follows:

	Shares Held at	Shares		Shares		Shares Held at		Value at				Net Realized			Change in Unrealized Appreciation
Affiliated Issuer	08/31/17	Purchased		Sold		08/31/18		08/31/18		Income		Gain (Loss	)(a)		(Depreciation)
BlackRock Cash Funds: Treasury, SL Agency Shares	15,969	1,491	(b)	—		17,460	$	17,460	$	167	$	—		$	—
iShares MSCI India ETF	36,404	2,214		(1,003	)	37,615		1,342,103		11,633		105			58,414
iShares MSCI Qatar Capped ETF	5,430	—		(5,430	)	—		—		—		(19,411	)		5,702
							$	1,359,563	$	11,800	$	(19,306	)	$	64,116

^(a)  Includes realized capital gain distributions from an affiliated fund, if any.

^(b) Net of purchases and sales.

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, refer to the Notes to Financial Statements.

S C H E D U L E  O F  I N V E S T M  E N T S 41

Schedule of Investments  (continued)   August 31, 2018 iShares^® MSCI Emerging Markets ex China ETF  

Fair Value Measurements (continued)

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2018. 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	$	7,964,486	$	134,006	$	—	$	8,098,492
Investment Companies		1,342,103		—		—		1,342,103
Preferred Stocks		435,993		—		—		435,993
Money Market Funds		17,460		—		—		17,460
	$	9,760,042	$	134,006	$	—	$	9,894,048

See notes to financial statements.

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Statements of Assets and Liabilities

August 31, 2018

	iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)			iShares Edge MSCI Min Vol Global ETF			iShares Edge MSCI Multifactor Emerging Markets ETF			iShares MSCI EM ESG Optimized ETF
ASSETS
Investments in securities, at value (including securities on loan)(a):
Unaffiliated(b)	$	4,651,178,388		$	3,325,262,680		$	280,734,546		$	328,822,426
Affiliated(c)		88,930,001			44,647,821			17,618,788			18,602,972
Cash		238,677			—			—			505,573
Cash pledged:
Futures contracts		946,001			581,000			50,000			84,000
Foreign currency, at value(d)		3,159,556			4,454,372			889,922			24,995,334
Receivables:
Investments sold		967,226			666,388			3,626,288			39,325,465
Securities lending income — Affiliated		173,312			82,795			4,304			15,738
Variation margin on futures contracts		61,194			—			5,224			6,774
Capital shares sold		1,146,652			—			—			2,301,827
Securities related to in-kind transactions		196,083			—			—			2,506,463
Dividends		12,021,877			7,815,329			453,305			353,814
Tax reclaims		—			1,971,690			2,763			—
Total assets		4,759,018,967			3,385,482,075			303,385,140			417,520,386
LIABILITIES
Collateral on securities loaned, at value		74,648,466			40,974,624			7,669,427			18,600,822
Deferred foreign capital gain tax		6,827,837			741,082			—			—
Payables:
Investments purchased		9,485,286			—			537,989			46,041,723
Variation margin on futures contracts		—			40,347			—			—
Bank borrowings		—			—			—			23,007,951
Capital shares redeemed		—			870			3,996,889			47,436
Securities related to in-kind transactions		—			666,388			—			—
Investment advisory fees		936,487			591,597			106,781			69,156
Foreign taxes		423,965			67,465			3,152			599
Total liabilities		92,322,041			43,082,373			12,314,238			87,767,687
NET ASSETS	$	4,666,696,926		$	3,342,399,702		$	291,070,902		$	329,752,699
NET ASSETS CONSIST OF:
Paid-in capital	$	4,738,654,305		$	3,005,314,238		$	315,452,733		$	349,301,784
Undistributed net investment income		42,180,696			15,717,663			3,094,212			2,835,577
Accumulated net realized loss		(633,186,094	)		(129,995,307	)		(10,658,443	)		(11,810,456	)
Net unrealized appreciation (depreciation)		519,048,019			451,363,108			(16,817,600	)		(10,574,206	)
NET ASSETS	$	4,666,696,926		$	3,342,399,702		$	291,070,902		$	329,752,699
Shares outstanding		78,800,000			38,400,000			6,500,000			9,800,000	(e)
Net asset value	$	59.22		$	87.04		$	44.78		$	33.65	(e)
Shares authorized		500 million			500 million			25 million			25 million
Par value	$	0.001		$	0.001		$	0.001		$	0.001
(a)  Securities loaned, at value	$	70,408,272		$	36,398,895		$	6,849,494		$	18,175,333
(b)  Investments, at cost — Unaffiliated	$	4,125,236,754		$	2,873,267,259		$	297,992,800		$	339,345,465
(c)  Investments, at cost — Affiliated	$	88,915,231		$	44,636,281		$	17,155,340		$	18,600,479
(d)  Foreign currency, at cost	$	3,181,493		$	4,464,678		$	889,960		$	24,999,727
(e)  Shares outstanding and net asset value per share reflect a two-for-one stock split effective after the close of trading on May 24, 2018.

See notes to financial statements.

F I N A N C I A L  S T A T E M E N  T S 43

Statements of Assets and Liabilities  (continued)

August 31, 2018

	iShares MSCI Emerging Markets ex China ETF
ASSETS
Investments in securities, at value:
Unaffiliated(a)	$	8,534,485
Affiliated(b)		1,359,563
Cash		154
Foreign currency, at value(c)		14,317
Receivables:
Investments sold		10,348
Dividends		16,424
Total assets		9,935,291
LIABILITIES
Payables:
Investments purchased		12,999
Investment advisory fees		3,388
Foreign taxes		299
Total liabilities		16,686
NET ASSETS	$	9,918,605
NET ASSETS CONSIST OF:
Paid-in capital	$	10,046,459
Undistributed net investment income		92,335
Accumulated net realized loss		(142,095	)
Net unrealized depreciation		(78,094	)
NET ASSETS	$	9,918,605
Shares outstanding		200,000
Net asset value	$	49.59
Shares authorized		25 million
Par value	$	0.001
(a)   Investments, at cost — Unaffiliated	$	8,687,552
(b)   Investments, at cost — Affiliated	$	1,283,676
(c)    Foreign currency, at cost	$	14,668

See notes to financial statements.

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Statements of Operations

Year Ended August 31, 2018

	iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)			iShares Edge MSCI Min Vol Global ETF			iShares Edge MSCI Multifactor Emerging Markets ETF			iShares MSCI EM ESG Optimized ETF
INVESTMENT INCOME
Dividends — Unaffiliated(a)	$	137,787,126		$	88,393,174		$	6,764,346		$	7,531,817
Dividends — Affiliated		110,134			78,052			53,733			5,768
Interest — Unaffiliated		5,297			5,948			327			302
Securities lending income — Affiliated — net(b)		1,857,947			509,143			19,663			75,484
Foreign taxes withheld		(15,128,867	)		(4,755,591	)		(717,922	)		(856,292	)
Other foreign taxes		(534,163	)		(101,774	)		(18,418	)		(18,140	)
Total investment income		124,097,474			84,128,952			6,101,729			6,738,939
EXPENSES
Investment advisory fees		30,193,542			10,944,613			832,950			584,558
Commitment fees		19,600			1,240			1			7
Proxy fees		416			342			4			6
Mauritius income taxes		114,393			—			—			—
Interest expense		11,042			25,181			—			7,951
Total expenses		30,338,993			10,971,376			832,955			592,522
Less:
Investment advisory fees waived		(18,950,786	)		(3,882,460	)		(47,284	)		—
Total expenses after fees waived		11,388,207			7,088,916			785,671			592,522
Net investment income		112,709,267			77,040,036			5,316,058			6,146,417
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated(a)		41,894,960			(33,942,157	)		(9,342,312	)		(11,351,198	)
Investments — Affiliated		3,579			(1,298	)		(179,830	)		(70	)
In-kind redemptions — Unaffiliated		98,074,871			312,415,855			9,000,317			6,620,026
In-kind redemptions — Affiliated		—			—			724,827			—
Futures contracts		(2,024,054	)		1,017,000			(68,554	)		(99,381	)
Foreign currency transactions		(1,301,395	)		(370,981	)		(67,507	)		(117,620	)
Net realized gain (loss)		136,647,961			279,118,419			66,941			(4,948,243	)
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated(c)		(55,876,595	)		(29,553,025	)		(28,552,888	)		(22,778,298	)
Investments — Affiliated		(153	)		(2,264	)		(236,893	)		2,435
Futures contracts		17,389			76,508			(15,095	)		(11,283	)
Foreign currency translations		1,979,765			(40,367	)		(9,628	)		(43,641	)
Net change in unrealized appreciation (depreciation)		(53,879,594	)		(29,519,148	)		(28,814,504	)		(22,830,787	)
Net realized and unrealized gain (loss)		82,768,367			249,599,271			(28,747,563	)		(27,779,030	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	195,477,634		$	326,639,307		$	(23,431,505	)	$	(21,632,613	)
(a)   Net of foreign capital gain tax of	$	—		$	1,327		$	—		$	—
(b)   Net of securities lending income tax paid of	$	17		$	—		$	—		$	—
(c)   Net of deferred foreign capital gain tax of	$	6,827,837		$	741,082		$	—		$	—

See notes to financial statements.

F I N A N C I A L  S T A T E M E N  T S 45

Statements of Operations  (continued)

Year Ended August 31, 2018

	iShares MSCI Emerging Markets ex China ETF
INVESTMENT INCOME
Dividends — Unaffiliated	$	291,723
Dividends — Affiliated		11,800
Interest — Unaffiliated		37
Foreign taxes withheld		(40,815	)
Other foreign taxes		(691	)
Total investment income		262,054
EXPENSES
Investment advisory fees		51,350
Commitment fees		84
Total expenses		51,434
Less:
Investment advisory fees waived		(8,385	)
Total expenses after fees waived		43,049
Net investment income		219,005
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — Unaffiliated		(103,691	)
Investments — Affiliated		(19,306	)
Foreign currency transactions		50
Net realized loss		(122,947	)
Net change in unrealized appreciation (depreciation) on:
Investments — Unaffiliated		(298,452	)
Investments — Affiliated		64,116
Foreign currency translations		(1,090	)
Net change in unrealized appreciation (depreciation)		(235,426	)
Net realized and unrealized loss		(358,373	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(139,368	)

See notes to financial statements.

46 2 0 1 8  I S H A R E S  A N N U A L   R E P O R T  T O  S H A R E H O L D E R S

Statements of Changes in Net Assets

	iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)						iShares Edge MSCI Min Vol Global ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	112,709,267		$	94,250,679		$	77,040,036		$	77,633,946
Net realized gain (loss)		136,647,961			(128,677,692	)		279,118,419			74,390,587
Net change in unrealized appreciation (depreciation)		(53,879,594	)		391,424,155			(29,519,148	)		141,521,669
Net increase in net assets resulting from operations		195,477,634			356,997,142			326,639,307			293,546,202
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(114,335,550	)		(84,793,898	)		(74,053,110	)		(82,291,396	)
Decrease in net assets resulting from distributions to shareholders		(114,335,550	)		(84,793,898	)		(74,053,110	)		(82,291,396	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		548,126,747			(613,816,016	)		(585,560,427	)		196,430,781
NET ASSETS
Total increase (decrease) in net assets		629,268,831			(341,612,772	)		(332,974,230	)		407,685,587
Beginning of year		4,037,428,095			4,379,040,867			3,675,373,932			3,267,688,345
End of year	$	4,666,696,926		$	4,037,428,095		$	3,342,399,702		$	3,675,373,932
Undistributed net investment income included in net assets at end of year	$	42,180,696		$	43,163,304		$	15,717,663		$	12,801,276

See notes to financial statements.

F I N A N C I A L  S T A T E M E N  T S 47

Statements of Changes in Net Assets (continued)

	iShares Edge MSCI Multifactor Emerging Markets ETF						iShares MSCI EM ESG Optimized ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/18			Year Ended 08/31/17
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	5,316,058		$	895,032		$	6,146,417		$	1,088,767
Net realized gain (loss)		66,941			59,274			(4,948,243	)		282,004
Net change in unrealized appreciation (depreciation)		(28,814,504	)		9,748,303			(22,830,787	)		11,678,921
Net increase (decrease) in net assets resulting from operations		(23,431,505	)		10,702,609			(21,632,613	)		13,049,692
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(3,373,796	)		(797,610	)		(4,257,999	)		(499,570	)
Decrease in net assets resulting from distributions to shareholders		(3,373,796	)		(797,610	)		(4,257,999	)		(499,570	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions.		235,003,288			42,998,932			258,830,853			78,616,958
NET ASSETS
Total increase in net assets		208,197,987			52,903,931			232,940,241			91,167,080
Beginning of year		82,872,915			29,968,984			96,812,458			5,645,378
End of year	$	291,070,902		$	82,872,915		$	329,752,699		$	96,812,458
Undistributed net investment income included in net assets at end of year	$	3,094,212		$	431,727		$	2,835,577		$	629,407

See notes to financial statements.

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Statements of Changes in Net Assets (continued)

	iShares MSCI Emerging Markets ex China ETF
		Year Ended 08/31/18			Period From 07/18/17 to 08/31/17	(a)
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	219,005		$	25,138
Net realized loss		(122,947	)		(1,330	)
Net change in unrealized appreciation (depreciation)		(235,426	)		157,332
Net increase (decrease) in net assets resulting from operations		(139,368	)		181,140
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income		(169,215	)		—
Decrease in net assets resulting from distributions to shareholders		(169,215	)		—
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		—			10,046,048
NET ASSETS
Total increase (decrease) in net assets		(308,583	)		10,227,188
Beginning of year		10,227,188			—
End of year	$	9,918,605		$	10,227,188
Undistributed net investment income included in net assets at end of year	$	92,335		$	23,397
(a)   Commencement of operations.

See notes to financial statements.

F I N A N C I A L  S T A T E M E N  T S 49

Financial Highlights

(For a share outstanding throughout each period)

	iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	58.01		$	53.40		$	50.98		$	62.47		$	55.56
Net investment income(a)		1.49			1.28			1.57			1.58			1.51
Net realized and unrealized gain (loss)(b)		1.23			4.48			2.13			(11.65	)		6.94
Net increase (decrease) from investment operations		2.72			5.76			3.70			(10.07	)		8.45
Distributions(c)
From net investment income		(1.51	)		(1.15	)		(1.28	)		(1.42	)		(1.54	)
Total distributions		(1.51	)		(1.15	)		(1.28	)		(1.42	)		(1.54	)
Net asset value, end of year	$	59.22		$	58.01		$	53.40		$	50.98		$	62.47
Total Return
Based on net asset value		4.70	%		11.11	%		7.48	%		(16.32	)%		15.44	%
Ratios to Average Net Assets
Total expenses		0.67	%		0.69	%		0.71	%		0.69	%		0.67	%
Total expenses after fees waived		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Net investment income		2.47	%		2.40	%		3.12	%		2.71	%		2.58	%
Supplemental Data
Net assets, end of year (000)	$	4,666,697		$	4,037,428		$	4,379,041		$	2,462,357		$	2,080,363
Portfolio turnover rate(d)		22	%		23	%		23	%		28	%		34	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares Edge MSCI Min Vol Global ETF
	Year Ended 08/31/18			Year Ended 08/31/17			Year Ended 08/31/16			Year Ended 08/31/15			Year Ended 08/31/14
Net asset value, beginning of year	$	81.13		$	75.82		$	67.59		$	68.25		$	59.99
Net investment income(a)		1.82			1.84			1.79			1.70			1.72
Net realized and unrealized gain (loss)(b)		5.85			5.40			8.07			(0.89	)		8.18
Net increase from investment operations		7.67			7.24			9.86			0.81			9.90
Distributions(c)
From net investment income		(1.76	)		(1.93	)		(1.63	)		(1.47	)		(1.64	)
Total distributions		(1.76	)		(1.93	)		(1.63	)		(1.47	)		(1.64	)
Net asset value, end of year	$	87.04		$	81.13		$	75.82		$	67.59		$	68.25
Total Return
Based on net asset value		9.56	%		9.75	%		14.76	%		1.15	%		16.70	%
Ratios to Average Net Assets
Total expenses		0.31	%		0.32	%		0.32	%		0.33	%		0.33	%
Total expenses after fees waived		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Net investment income		2.17	%		2.40	%		2.49	%		2.41	%		2.67	%
Supplemental Data
Net assets, end of year (000)	$	3,342,400		$	3,675,374		$	3,267,688		$	2,115,632		$	1,283,012
Portfolio turnover rate(d)		23	%		24	%		24	%		22	%		24	%

^(a)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(d)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L  H I G H L I G H  T S 51

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares Edge MSCI Multifactor Emerging Markets ETF
		Year Ended 08/31/18			Year Ended 08/31/17			Period From 12/08/15 to 08/31/16	(a)
Net asset value, beginning of period	$	46.04		$	37.46		$	33.82
Net investment income(b)		1.39			0.91			1.27
Net realized and unrealized gain (loss)(c)		(1.63	)		8.53			2.50
Net increase (decrease) from investment operations		(0.24	)		9.44			3.77
Distributions(d)
From net investment income		(1.02	)		(0.86	)		(0.13	)
Total distributions		(1.02	)		(0.86	)		(0.13	)
Net asset value, end of period	$	44.78		$	46.04		$	37.46
Total Return
Based on net asset value		(0.65	)%		25.80	%		11.16	%(e)
Ratios to Average Net Assets
Total expenses		0.45	%		0.50	%		0.65	%(f)
Total expenses after fees waived		0.42	%		0.42	%		0.49	%(f)
Net investment income		2.87	%		2.24	%		4.91	%(f)
Supplemental Data
Net assets, end of period (000)	$	291,071		$	82,873		$	29,969
Portfolio turnover rate(g)		39	%		36	%		11	%(e)

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Not annualized.

^(f)  Annualized.

^(g)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

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Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI EM ESG Optimized ETF
		Year Ended 08/31/18	(a)		Year Ended 08/31/17	(a)		Period From 06/28/16 to 08/31/16	(a)(b)
Net asset value, beginning of period	$	34.58		$	28.23		$	25.19
Net investment income(c)		0.94			0.85			0.16
Net realized and unrealized gain (loss)(d)		(1.17	)		5.81			2.88
Net increase (decrease) from investment operations		(0.23	)		6.66			3.04
Distributions(e)
From net investment income		(0.70	)		(0.31	)		—
Total distributions		(0.70	)		(0.31	)		—
Net asset value, end of period	$	33.65		$	34.58		$	28.23
Total Return
Based on net asset value		(0.72	)%		23.75	%		12.09	%(f)
Ratios to Average Net Assets
Total expenses		0.25	%		0.42	%		0.45	%(g)
Net investment income		2.63	%		2.73	%		3.26	%(g)
Supplemental Data
Net assets, end of period (000)	$	329,753		$	96,812		$	5,645
Portfolio turnover rate(h)		45	%		29	%		9	%(f)

^(a)  Per share amounts reflect a two-for-one stock split effective after the close of trading on May 24, 2018.

^(b)  Commencement of operations.

^(c)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(f)  Not annualized.

^(g)  Annualized.

^(h)  Portfolio turnover rate excludes in-kind transactions.

See notes to financial statements.

F I N A N C I A L  H I G H L I G H  T S 53

Financial Highlights (continued)

(For a share outstanding throughout each period)

	iShares MSCI Emerging Markets ex China ETF
		Year Ended 08/31/18			Period From 07/18/17 to 08/31/17	(a)
Net asset value, beginning of period	$	51.14		$	50.22
Net investment income(b)		1.10			0.13
Net realized and unrealized gain (loss)(c)		(1.80	)		0.79
Net increase (decrease) from investment operations		(0.70	)		0.92
Distributions(d)
From net investment income		(0.85	)		—
Total distributions		(0.85	)		—
Net asset value, end of period	$	49.59		$	51.14
Total Return
Based on net asset value		(1.41	)%		1.83	%(e)
Ratios to Average Net Assets
Total expenses		0.49	%		0.49	%(f)
Total expenses after fees waived		0.41	%		0.41	%(f)
Net investment income		2.09	%		2.07	%(f)
Supplemental Data
Net assets, end of period (000)	$	9,919		$	10,227
Portfolio turnover rate(g)		9	%		0	%(e)(h)

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

^(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)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(e)  Not annualized.

^(f)  Annualized.

^(g)  Portfolio turnover rate excludes in-kind transactions.

^(h)  Rounds to less than 1%.

See notes to financial statements.

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Notes to Financial Statements

1. ORGANIZATION

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 is organized as a Maryland corporation and is authorized to have multiple series or portfolios.

These financial statements relate only to the following funds (each, a “Fund,” and collectively, the “Funds”):

iShares ETF	Diversification     Classification
Edge MSCI Min Vol Emerging Markets		Diversified
Edge MSCI Min Vol Global		Diversified
Edge MSCI Multifactor Emerging Markets		Non-diversified
MSCI EM ESG Optimized		Non-diversified
MSCI Emerging Markets ex China		Non-diversified

Basis of Consolidation: The accompanying consolidated financial statements for the iShares Edge MSCI Min Vol Emerging Markets ETF includes the accounts of its subsidiary in the Republic of Mauritius, which is a wholly-owned subsidiary (the “Subsidiary”) of the Fund that invests in Indian securities included in the underlying index. Through this investment structure, the Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. Intercompany accounts and transactions, if any, have been eliminated.

2. 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 increases and decreases in net assets from operations 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.

Investment Transactions and Income Recognition: Investment transactions are accounted for on trade date. Realized gains and losses on investment transactions are determined using the specific identification method. 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 are reflected in tax reclaims receivable. 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. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a return of capital or capital gain. Non-cash dividends, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Interest income is accrued daily.

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 non-U.S. currencies are translated to U.S. dollars using prevailing market rates as quoted by one or more data service providers. Purchases and sales of investments, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments. Such fluctuations are reflected by the Funds as a component of net realized and unrealized gain (loss) from investments for financial reporting purposes. Each Fund reports realized currency gain (loss) 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 U.S. federal income tax purposes.

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its consolidated statement of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2018, if any, are disclosed in the consolidated statement of assets and liabilities.

The iShares Edge MSCI Min Vol 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, the 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. The 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, the Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. Taxes on income, if any, are paid by the Subsidiary and are disclosed in the consolidated statement of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. The Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

N O T E S  TO  F I N A N C I A L   S T A T E M E N T S 55

Notes to Financial Statements  (continued)

The DTAA 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.

In-kind Redemptions: For financial reporting purposes, in-kind redemptions are treated as sales of securities resulting in realized capital gains or losses to the Funds. Because such gains or losses are not taxable to the Funds and are not distributed to existing Fund shareholders, the gains or losses are reclassified from accumulated net realized gain (loss) to paid-in capital at the end of the Funds’ tax year. These reclassifications have no effect on net assets or net asset value per share.

Distributions: 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.

Recent Accounting Standards: In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.

Indemnifications: In the normal course of business, each Fund enters into contracts that contain a variety of representations that provide general indemnification. The Funds’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Funds, which cannot be predicted with any certainty.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) 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. A fund determines the fair value of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at that day’s last traded price or 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.

• Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last traded price or 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 may be valued at the last traded price.

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

• Futures contract notional values are determined based on that day’s last reported settlement price on the exchange where the contract is traded.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of an investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and the cost approach. Valuation techniques used under these approaches take into consideration inputs that 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 inputs, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and/or default rates.

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, regular reviews 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 and large movements in market values, and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board on a quarterly basis.

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.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

• Level 1 – Unadjusted price quotations 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, but not limited to, quoted prices for similar assets or liabilities in markets that are active, 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 interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

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Notes to Financial Statements  (continued)

• Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, (including the Global Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgement exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The fair value hierarchy for each Fund’s investments is included in its schedule of investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Company’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Each Fund may lend its 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 an approved 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 market value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund or excess collateral is returned by the Fund, 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.

As of August 31, 2018, 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 BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates and is disclosed in the schedules of investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan for each Fund, if any, are also disclosed in its schedule of investments. The market value of any securities on loan as of August 31, 2018 and the value of the related cash collateral are disclosed in the statements of assets and liabilities.

Securities lending transactions are entered into by a fund under Master Securities Lending Agreements (each, an “MSLA”) which provide the right, in the event of default (including bankruptcy or insolvency) for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. The value of the collateral is typically greater than 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, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the fund can reinvest cash collateral received in connection with loaned securities.

The following table is a summary of the securities lending agreements by counterparty which are subject to offset under an MSLA as of August 31, 2018:

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received(a)		Non-Cash Collateral Received		Net Amount
Edge MSCI Min Vol Emerging Markets
Barclays Bank PLC	$	35,305	$	34,514	$	—	$	(791	)(b)
Citigroup Global Markets Inc.		16,887,553		16,887,553		—		—
Credit Suisse Securities (USA) LLC		4,076,495		4,076,495		—		—
Deutsche Bank AG		1,145,143		1,145,143		—		—
Deutsche Bank Securities Inc.		469,877		469,877		—		—
Goldman Sachs & Co.		19,985,875		19,985,875		—		—
HSBC Bank PLC		3,333,483		3,333,483		—		—
Jefferies LLC		2,102,220		2,102,220		—		—
JPMorgan Securities LLC		242,810		242,810		—		—
JPMorgan Securities PLC		344,662		344,662		—		—
Macquarie Bank Limited.		3,711,158		3,711,158		—		—
Morgan Stanley & Co. International PLC		9,286,235		9,286,235		—		—
Morgan Stanley & Co. LLC		7,832,147		7,832,147		—		—
UBS AG		389,109		389,109		—		—
UBS Securities LLC		566,200		566,200		—		—
	$	70,408,272	$	70,407,481	$	—	$	(791	)

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Notes to Financial Statements  (continued)

iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received(a)		Non-Cash Collateral Received		Net Amount
Edge MSCI Min Vol Global
Barclays Capital Inc.	$	888,974	$	888,974	$	—	$	—
Citigroup Global Markets Inc.		6,671,348		6,671,348		—		—
Credit Suisse Securities (USA) LLC		4,130,949		4,130,949		—		—
Deutsche Bank Securities Inc.		349,790		349,790		—		—
Goldman Sachs & Co.		3,105,715		3,105,715		—		—
HSBC Bank PLC		3,801		3,801		—		—
JPMorgan Securities LLC		3,573,138		3,573,138		—		—
JPMorgan Securities PLC		493,893		493,893		—		—
Macquarie Bank Limited.		729,156		729,156		—		—
Morgan Stanley & Co. International PLC		1,315,425		1,315,425		—		—
Morgan Stanley & Co. LLC		2,667,528		2,667,528		—		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		9,191,107		9,191,107		—		—
State Street Bank & Trust Company		829,774		829,774		—		—
UBS Securities LLC		2,448,297		2,448,297		—		—
	$	36,398,895	$	36,398,895	$	—	$	—
Edge MSCI Multifactor Emerging Markets
Citigroup Global Markets Inc.	$	175,267	$	175,267	$	—	$	—
Credit Suisse Securities (USA) LLC		670,273		670,273		—		—
JPMorgan Securities LLC		4,957,158		4,957,158		—		—
Macquarie Bank Limited.		29,371		29,371		—		—
Morgan Stanley & Co. LLC		1,017,425		1,017,425		—		—
	$	6,849,494	$	6,849,494	$	—	$	—
MSCI EM ESG Optimized
Barclays Bank PLC	$	9,823	$	9,823	$	—	$	—
Citigroup Global Markets Inc.		1,450,522		1,450,522		—		—
Credit Suisse Securities (USA) LLC		858,734		858,734		—		—
HSBC Bank PLC		313,459		313,459		—		—
JPMorgan Securities LLC		14,890,856		14,890,856		—		—
Macquarie Bank Limited.		615,651		615,651		—		—
Morgan Stanley & Co. International PLC		36,288		36,288		—		—
	$	18,175,333	$	18,175,333	$	—	$	—

^(a) 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.

^(b) 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.

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, each Fund benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value of the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. DERIVATIVE FINANCIAL INSTRUMENTS

Futures Contracts: Each Fund’s use of futures contracts is generally limited to cash equitization. This involves the use of available cash to invest in index futures contracts in order to gain exposure to the equity markets represented in or by the Fund’s underlying index and is intended to allow the Fund to better track its underlying index. Futures contracts are standardized, exchange-traded agreements to buy or sell a specific quantity of an underlying instrument at a set price on a future date. Depending on the terms of a contract, a futures contract is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date.

Upon entering into a futures contract, a 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. Securities deposited as initial margin, if any, are designated in the schedule of investments and cash deposited, if any, is shown as cash pledged for futures contracts in the statement of assets and liabilities.

Pursuant to the contract, a fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation or depreciation and, if any, shown as variation margin receivable or payable on futures contracts in the

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Notes to Financial Statements  (continued)

statement of assets and liabilities. When the contract is closed, a realized gain or loss is recorded in the statement of operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. Losses may arise if the notional 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 involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory Fees: 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 (i) interest and taxes; (ii) brokerage commissions and other expenses connected with the execution of portfolio transactions; (iii) distribution fees; (iv) the advisory fee payable to BFA; and (v) litigation expenses and any extraordinary expenses (in each case as determined by a majority of the independent directors).

For its investment advisory services to the iShares Edge MSCI Min Vol Emerging Markets ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $14 billion		0.75	%
Over $14 billion, up to and including $28 billion		0.68
Over $28 billion, up to and including $42 billion		0.61
Over $42 billion, up to and including $56 billion		0.54
Over $56 billion, up to and including $70 billion		0.47
Over $70 billion, up to and including $84 billion		0.41
Over $84 billion		0.35

For its investment advisory services to the iShares Edge MSCI Min Vol Global ETF, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Fund, 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:

Aggregate Average Daily Net Assets	Investment Advisory Fee
First $30 billion		0.350	%
Over $30 billion, up to and including $60 billion		0.320
Over $60 billion, up to and including $90 billion		0.280
Over $90 billion, up to and including $120 billion		0.252
Over $120 billion, up to and including $150 billion (a)		0.227
Over $150 billion (a)		0.204

^(a) Break level added or amended effective June 29, 2018.

For its investment advisory services to each Fund, BFA is entitled to an annual investment advisory fee, accrued daily and paid monthly by the Funds, based on the average daily net assets of each Fund as follows:

iShares ETF	Investment Advisory Fee
Edge MSCI Multifactor Emerging Markets		0.45	%
MSCI EM ESG Optimized		0.25
MSCI Emerging Markets ex China		0.49

The Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. The Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

Expense Waivers: A fund may incur 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 any other fund expenses are a fund’s total annual operating expenses.

For each of the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares Edge MSCI Min Vol Global ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2023 in order to limit each Fund’s total annual operating expenses after fee waiver to 0.25% and 0.20%, respectively, of average daily net assets.

For each of the iShares Edge MSCI Multifactor Emerging Markets and iShares MSCI Emerging Markets ex China ETFs, BFA has contractually agreed to waive a portion of its investment advisory fee for each Fund through December 31, 2021 and December 31, 2022, respectively, in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.

Distributor: 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.

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Notes to Financial Statements  (continued)

Securities Lending: The U.S. Securities and Exchange Commission (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, or its affiliates, 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 (excluding collateral investment fees), net of fees and other payments to and from borrowers of securities. Each Fund retains a portion of securities lending income and remits 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 (which excludes collateral investment fees) 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 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.

The share of securities lending income earned by each Fund is shown as securities lending income – affiliated – net in its statement of operations. For the year ended August 31, 2018, the Funds paid BTC the following amounts for securities lending agent services:

iShares ETF	Fees Paid     to BTC
Edge MSCI Min Vol Emerging Markets	$	433,593
Edge MSCI Min Vol Global		137,219
Edge MSCI Multifactor Emerging Markets		5,132
MSCI EM ESG Optimized		21,082

Officers and Trustees: Certain officers and/or trustees of the Company are officers and/or trustees of BlackRock or its affiliates.

Other Transactions: The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock for 1940 Act purposes.

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, 2018, 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	$	136,495,458	$	86,293,195
Edge MSCI Min Vol Global		68,900,974		71,798,257
Edge MSCI Multifactor Emerging Markets		5,868,404		4,164,897

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 shown as dividends – affiliated in the statement of operations.

It is possible that, from time to time, BlackRock and/or funds managed by BFA or an affiliate (collectively, “Affiliates”) may purchase and hold shares of a Fund. Affiliates reserve the right, subject to compliance with applicable law, to sell into the market or redeem in Creation Units through an authorized participant at any time some or all of the shares of a Fund acquired for their own accounts. A large sale or redemption of shares of a Fund by Affiliates could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2018, the number of affiliated accounts that individually represent more than 10% ownership of a Fund’s total shares outstanding and the aggregate percentage of net assets represented by such holdings were as follows:

iShares ETF	Number of Affiliated Accounts		Aggregate Affiliated Ownership Percentage
MSCI Emerging Markets ex China		1		40	%

A fund, in order to improve its portfolio liquidity and its ability to track its underlying index, may invest in shares of other iShares funds that invest in securities in the fund’s underlying index.

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Notes to Financial Statements  (continued)

7. PURCHASES AND SALES

For the year ended August 31, 2018, purchases and sales of investments, excluding in-kind transactions and short-term investments, were as follows:

iShares ETF	Purchases		Sales
Edge MSCI Min Vol Emerging Markets	$	1,571,782,542	$	1,002,316,127
Edge MSCI Min Vol Global		1,243,229,247		823,818,083
Edge MSCI Multifactor Emerging Markets		258,483,328		72,774,209
MSCI EM ESG Optimized		231,578,557		105,093,105
MSCI Emerging Markets ex China		1,006,521		943,305

For the year ended August 31, 2018, in-kind transactions were as follows:

iShares ETF	In-kind Purchases		In-kind     Sales
Edge MSCI Min Vol Emerging Markets	$	223,914,323	$	200,627,964
Edge MSCI Min Vol Global		116,792,375		1,096,236,187
Edge MSCI Multifactor Emerging Markets		85,231,399		33,985,976
MSCI EM ESG Optimized		163,997,545		30,245,130

8. 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.

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ consolidated financial statements.

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. As of August 31, 2018, the following permanent differences attributable to foreign currency transactions, passive foreign investment companies, the timing and recognition of partnership income, the characterization of corporate actions, realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:

iShares ETF	Paid-in Capital		Undistributed (Distributions in Excess of) Net Investment Income			Accumulated      Net Realized      Gain (Loss)
Edge MSCI Min Vol Emerging Markets	$	96,972,448	$	643,675		$	(97,616,123)
Edge MSCI Min Vol Global		302,226,541		(70,539	)		(302,156,002)
Edge MSCI Multifactor Emerging Markets		9,575,224		720,223			(10,295,447)
MSCI EM ESG Optimized		6,250,530		317,752			(6,568,282)
MSCI Emerging Markets ex China		411		19,148			(19,559)

The tax character of distributions paid was as follows:

iShares ETF	Year Ended 08/31/18		Year Ended 08/31/17
Edge MSCI Min Vol Emerging Markets
Ordinary income	$	114,335,550	$	84,793,898
Edge MSCI Min Vol Global
Ordinary income	$	74,053,110	$	82,291,396
Edge MSCI Multifactor Emerging Markets
Ordinary income	$	3,373,796	$	797,610
MSCI EM ESG Optimized
Ordinary income	$	4,257,999	$	499,570
MSCI Emerging Markets ex China
Ordinary income	$	169,215	$	—

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Notes to Financial Statements  (continued)

As of August 31, 2018, 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 Min Vol Emerging Markets	$	46,524,683	$	(572,886,160	)	$	454,404,098		$	(71,957,379)
Edge MSCI Min Vol Global		18,177,705		(101,835,656	)		420,743,415			337,085,464
Edge MSCI Multifactor Emerging Markets		3,274,740		(5,828,056	)		(21,828,515	)		(24,381,831)
MSCI EM ESG Optimized		3,067,812		(4,318,520	)		(18,298,377	)		(19,549,085)
MSCI Emerging Markets ex China		102,859		(138,264	)		(92,449	)		(127,854)

^(a)  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 realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the timing and recognition of partnership income.

As of August 31, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:

iShares ETF	Non-Expiring
Edge MSCI Min Vol Emerging Markets	$	572,886,160
Edge MSCI Min Vol Global		101,835,656
Edge MSCI Multifactor Emerging Markets		5,828,056
MSCI EM ESG Optimized		4,318,520
MSCI Emerging Markets ex China		138,264

For the year ended August 31, 2018, the iShares Edge MSCI Min Vol Emerging Markets ETF utilized $53,804,090 of its capital loss carryforwards.

A fund may own shares in certain foreign investment entities, referred to, under U.S. tax law, as “passive foreign investment companies.” Such fund may elect to mark-to-market annually the shares of each passive foreign investment company and would be required to distribute to shareholders any such marked-to-market gains.

As of August 31, 2018, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

iShares ETF	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized      Appreciation      (Depreciation)
Edge MSCI Min Vol Emerging Markets	$	4,278,778,517	$	739,026,030	$	(277,696,158	)	$	461,329,872
Edge MSCI Min Vol Global		2,948,446,725		528,291,938		(106,828,162	)		421,463,776
Edge MSCI Multifactor Emerging Markets		320,174,150		10,747,672		(32,568,488	)		(21,820,816)
MSCI EM ESG Optimized		365,681,398		13,382,352		(31,638,352	)		(18,256,000)
MSCI Emerging Markets ex China		9,985,583		767,317		(858,852	)		(91,535)

The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. Certain provisions of the Act were effective upon enactment with the remainder becoming effective for tax years beginning after December 31, 2017. Although the Act does not amend any provisions directly related to the qualification or taxation of regulated investment companies (“RICs”), the Act does change the taxation of entities in which some RICs invest, the tax treatment of income derived from those entities and the taxation of RIC shareholders. While management does not anticipate significant impact to the funds or to their shareholders, there is uncertainty in the application of certain provisions in the Act. Specifically, provisions in the Act may increase the amount of or accelerate the recognition of taxable income and may limit the deductibility of certain expenses by RICs. Until full clarity around these provisions is obtained, the impact on the Funds’ financial statements, if any, cannot be fully determined.

9. LINE OF CREDIT

The Funds, along with certain other iShares funds, are parties to a $275 million credit agreement with State Street Bank and Trust Company, which expires on October 24, 2018. 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 Edge MSCI Multifactor Emerging Markets and iShares Emerging Markets ex China ETFs did not borrow under the credit agreement during the year ended August 31, 2018.

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Notes to Financial Statements  (continued)

For the year ended August 31, 2018, the maximum amount borrowed, the average borrowing and the weighted average interest rate, if any, under the credit agreement were as follows:

iShares ETF	Maximum Amount Borrowed		Average Borrowing		Weighted Average Interest Rates
Edge MSCI Min Vol Emerging Markets	$	18,400,000	$	363,904		2.99	%
Edge MSCI Min Vol Global		43,000,000		824,658		3.01
MSCI EM ESG Optimized		23,000,000		126,027		3.11

At a meeting held on September 12-13, 2018, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $300 million and (ii) extending the expiration date to October 23, 2019. These changes to the credit agreement are expected to be effective on or around October 25, 2018.

10. PRINCIPAL RISKS

In the normal course of business, each Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including, among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate or price fluctuations. Each Fund’s prospectus provides details of the risks to which the Fund is subject.

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 a fund may suffer through holding market positions in the face of market movements. A fund is exposed to market risk by its investment in equity, fixed income and/or financial derivative instruments or by its investment in underlying funds. The fair value of securities held by a fund may decline due to general market conditions, economic trends or events that are not specifically related to the issuers of the securities including local, regional or global political, social or economic instability or to factors that affect a particular industry or group of industries. The extent of a 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 involves certain considerations and risks not typically associated with securities of U.S. issuers. Such risks include, but are not limited to: differences in accounting, auditing and financial reporting standards; more substantial governmental involvement in the economy; higher inflation rates, greater social, economic and political uncertainties; possible nationalization or expropriation of assets; less availability of public information about issuers; imposition of withholding or other taxes; higher transaction and custody costs and delays in settlement procedures; and lower level of regulation of the securities markets and issuers. Non-U.S. securities may be less liquid, more difficult to value, and have greater price volatility due to exchange rate fluctuations. These and other risks are heightened for investments in issuers from countries with less developed capital markets.

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 a fund to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of a 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.

Concentration Risk: 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.

When a fund concentrates its investments in issuers located in a single country or a limited number of countries, it assumes the risk that economic, regulatory, political and social conditions in that country or those countries may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

Investments in Chinese securities, including certain Hong Kong-listed securities, involves risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and a fund’s investments. Reduction in spending on Chinese products and services, institution of tariffs or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy.

N O T E S  TO  F I N A N C I A L   S T A T E M E N T S 63

Notes to Financial Statements  (continued)

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio.

11. 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 were as follows:

	Year Ended 08/31/18						Year Ended 08/31/17
iShares ETF	Shares			Amount			Shares			Amount
Edge MSCI Min Vol Emerging Markets
Shares sold		13,500,000		$	802,737,319			1,700,000		$	93,359,655
Shares redeemed		(4,300,000	)		(254,610,572	)		(14,100,000	)		(707,175,671	)
Net increase (decrease)		9,200,000		$	548,126,747			(12,400,000	)	$	(613,816,016	)
Edge MSCI Min Vol Global
Shares sold		6,900,000		$	577,447,826			8,700,000		$	684,634,417
Shares redeemed		(13,800,000	)		(1,163,008,253	)		(6,500,000	)		(488,203,636	)
Net increase (decrease)		(6,900,000	)	$	(585,560,427	)		2,200,000		$	196,430,781
Edge MSCI Multifactor Emerging Markets
Shares sold		5,500,000		$	273,243,599			1,100,000		$	47,184,280
Shares redeemed		(800,000	)		(38,240,311	)		(100,000	)		(4,185,348	)
Net increase		4,700,000		$	235,003,288			1,000,000		$	42,998,932
MSCI EM ESG Optimized
Shares sold		8,000,000	(a)	$	293,587,360			2,700,000	(a)	$	81,808,084
Shares redeemed		(1,000,000	)(a)		(34,756,507	)		(100,000	)(a)		(3,191,126	)
Net increase		7,000,000		$	258,830,853			2,600,000		$	78,616,958
MSCI Emerging Markets ex China
Shares sold		—		$	—			200,000		$	10,046,048

^(a)  Per share amounts reflect a two-for-one stock split effective after the close of trading on May 24, 2018.

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 shares sold in the table above.

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 transactions are reflected as a receivable or a payable in the consolidated statement of assets and liabilities.

The Board authorized a two-for-one stock split for the iShares MSCI EM ESG Optimized ETF, effective after the close of trading on May 24, 2018. The impact of the stock split was to increase the number of shares outstanding by a factor of two, while decreasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the stock split.

12. LEGAL PROCEEDINGS

On June 16, 2016, investors in certain iShares funds (iShares Core S&P Small-Cap ETF, iShares Russell 1000 Growth ETF, iShares Core S&P 500 ETF, iShares Russell Mid-Cap Growth ETF, iShares Russell Mid-Cap ETF, iShares Russell Mid-Cap Value ETF, iShares Select Dividend ETF, iShares Morningstar Mid-Cap ETF, iShares Morningstar Large-Cap ETF, iShares U.S. Aerospace & Defense ETF and iShares U.S. Preferred Stock ETF) filed a class action lawsuit against iShares Trust, BlackRock, Inc. and certain of its advisory affiliates, and certain directors/trustees and officers of the Funds (collectively, “Defendants”) in California State Court. The lawsuit alleges the Defendants violated federal securities laws by failing to adequately disclose in the prospectuses issued by the funds noted above the risks of using stop-loss orders in the event of a ‘flash crash’, such as the one that occurred on May 6, 2010. On September 18, 2017, the court issued a Statement of Decision holding that the Plaintiffs lack standing to assert their claims. On October 11, 2017, the court entered final judgment dismissing all of the Plaintiffs’ claims with prejudice. Plaintiffs have appealed the court’s decision.

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Notes to Financial Statements  (continued)

13. SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were available to be issued and the following items were noted:

Effective on or around October 23, 2018, iShares MSCI EM ESG Optimized ETF will change its name to iShares ESG MSCI EM ETF.

N O T E S  TO  F I N A N C I A L   S T A T E M E N T S 65

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares Inc. and

Shareholders of iShares Edge MSCI Min Vol Emerging Markets ETF,

iShares Edge MSCI Min Vol Global ETF, iShares Edge MSCI Multifactor Emerging Markets ETF,

iShares MSCI EM ESG Optimized ETF and iShares MSCI Emerging Markets ex China ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of iShares Edge MSCI Min Vol Emerging Markets ETF, iShares Edge MSCI Min Vol Global ETF, iShares Edge MSCI Multifactor Emerging Markets ETF, iShares MSCI EM ESG Optimized ETF and iShares MSCI Emerging Markets ex China ETF (five of the funds constituting iShares Inc., hereafter collectively referred to as the “Funds”) as of August 31, 2018, the related statements of operations for the year ended August 31, 2018, the statements of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the periods indicated in the table below and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

iShares Edge MSCI Multifactor Emerging Markets ETF, iShares MSCI EM ESG Optimized ETF, iShares Edge MSCI Min Vol Global ETF and iShares Edge MSCI Min Vol Emerging Markets ETF: statements of changes in net assets for each of the two years in the period ended August 31, 2018.

iShares MSCI Emerging Markets ex China ETF: statement of changes in net assets for the year ended August 31, 2018 and the period July 18, 2017 (commencement of operations) through August 31, 2017.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2018 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

October 22, 2018

We have served as the auditor of one or more BlackRock investment companies since 2000.

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Important Tax Information (unaudited)

For corporate shareholders, the percentage of ordinary income distributions paid during the fiscal year ended August 31, 2018 that qualified for the dividends-received deduction were as follows:

iShares ETF	Dividends-Received Deduction
Edge MSCI Min Vol Global		49.14	%

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2018:

iShares ETF	Qualified Dividend Income
Edge MSCI Min Vol Emerging Markets	$	68,210,146
Edge MSCI Min Vol Global		65,236,238
Edge MSCI Multifactor Emerging Markets		3,782,186
MSCI EM ESG Optimized		3,970,643
MSCI Emerging Markets ex China		174,837

For the fiscal year ended August 31, 2018, 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 Min Vol Emerging Markets	$	137,333,460	$	15,776,924
Edge MSCI Multifactor Emerging Markets		7,455,229		735,905
MSCI EM ESG Optimized		7,957,002		873,856
MSCI Emerging Markets ex China		308,894		41,506

I M P O R T A N T  T A X  I N  F O R M A T I O N 67

Board Review and Approval of Investment Advisory Contract

I. 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and other sources of revenue and expense to BFA and its affiliates

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Board Review and Approval of Investment Advisory Contract  (continued)

from the Fund’s operations for the last calendar year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, noting that the15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 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.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

II. iShares Edge MSCI Min Vol Global 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. At a meeting on May 11,

B O A R D  R E V I E W  A N D  A  P P R O V A L  O F  I N V E S T M E N T  A D V I S O R Y   C O N T R A C T 69

Board Review and Approval of Investment Advisory Contract  (continued)

2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 the15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management,

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Board Review and Approval of Investment Advisory Contract  (continued)

including the revenues to BTC, a BlackRock affiliate, 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 and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 already provided for breakpoints in the Fund’s investment advisory fee rate, and that BFA and the Board had agreed during the June 12-14, 2018 meeting to revise the Advisory Contract for the Fund to provide for an additional breakpoint, as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

III. 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c) Committee and/or their independent counsel, and requested certain additional information, which

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Board Review and Approval of Investment Advisory Contract  (continued)

management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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. 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 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 various factors, including: (i) the expenses and performance of the Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to the Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which the Fund invests (if applicable), and waivers/reimbursements (if applicable) of the Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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 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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that the Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Fund, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 the15(c) Committee and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, 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 and other information considered.

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Board Review and Approval of Investment Advisory Contract  (continued)

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 by the 15(c) Committee and the Board during their meetings and addressed by management. The15(c) Committee and the Board 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 showed 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 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that a breakpoint structure for the Fund may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 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 ETF, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund’s 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 (or its 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 noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, 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 to approve the continuance of the Advisory Contract for the coming year.

IV. iShares MSCI EM ESG Optimized ETF and iShares MSCI Emerging Markets ex China 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. At a meeting on May 11, 2018, a committee composed of all of the Independent Directors (the “15(c)Committee”), with independent counsel, met with management and reviewed and discussed information provided in response to initial requests of the 15(c)Committee and/or their independent counsel, and requested certain additional information, which management agreed to provide. 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 24, 2018, management presented additional information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its initial meeting. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 12-14, 2018, 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

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Board Review and Approval of Investment Advisory Contract  (continued)

Contract for the Funds, based on a review of qualitative and quantitative information provided by BFA. 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 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 various factors, including: (i) the expenses and performance of each Fund; (ii) the nature, extent and quality of the services provided by BFA; (iii) the costs of services provided to each Fund and profits realized by BFA and its affiliates; (iv) economies of scale; (v) the fees and services provided for other comparable funds/accounts managed by BFA and its affiliates; and (vi) other benefits to BFA and/or its affiliates. The material factors, no one of which was controlling, and conclusions that formed the basis for the Board, including the Independent Directors, to approve the Advisory Contract are discussed below.

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, fees and expenses of another fund in which each Fund invests (if applicable), and waivers/reimbursements (if applicable) of each Fund in comparison with the same information for other ETFs (including, where applicable, funds sponsored by an “at cost” service provider), 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 the 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.

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.

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 quarter ended December 31, 2017, to that of relevant comparison fund(s) for the same periods.

The Board noted that each Fund seeks to track its specified 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 as 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, technology, portfolio management, product design and quality, compliance and risk management, global public policy 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 support 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 relevant officers and other employees of BFA (and its affiliates) available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 12-14, 2018 meeting and throughout the year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on review of this information, and the performance information discussed above, the Board concluded that the nature, extent and quality of services provided 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 Fund and Profits Realized by BFA and its Affiliates – The Board reviewed information about the profitability to BlackRock in managing the Funds, based on the fees payable to BFA and its affiliates (including fees under the Advisory Contract), and 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 and the Board had focused on the methodology and profitability presentation during their meetings. The Board further noted that it considered the supplemental information the 15(c) Committee requested, which BlackRock provided, regarding the methodology. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BlackRock affiliate, from securities lending by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ 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 Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors and other information 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 by the 15(c) Committee and the Board during their meetings and addressed by management. The 15(c) Committee and the Board 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 showed how the level of fixed and variable costs, as well as the nature of such costs,

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Board Review and Approval of Investment Advisory Contract  (continued)

may impact the existence or size of scale benefits. The 15(c) Committee and the Board reviewed information provided by BFA regarding the sharing of scale benefits with the iShares funds through various means, including, as applicable, 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 Funds did not provide for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that a breakpoint structure for the Funds may be appropriate should material economies of scale exist in the future that are not otherwise shared, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Based on this review of the sharing of scale benefits, as well as the other factors considered at the meeting, the Board concluded that the information concerning the sharing of scale benefits supported the Board’s approval of the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates – The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (collectively, 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 indexes as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts 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 ETFs, as compared to the Other Accounts, particularly those that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged management’s assertion that, for certain iShares funds, and for client segmentation purposes, BlackRock has launched an iShares fund that may provide a similar investment exposure at a lower investment advisory fee rate. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Funds’ expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds 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 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 (or its 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 also noted the revenue received by BFA and/or its affiliates pursuant to an agreement that permits a service provider to use certain portions of BlackRock’s technology platform to service accounts managed by BFA and/or its affiliates, including the iShares funds. 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 (including associated commissions) 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 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.

Conclusion – Based on a review of the factors described above, as well as such other factors as deemed appropriate by the Board, the Board, including all of the Independent Directors, determined that the Funds’ investment advisory fee rates under the Advisory Contract do not constitute fees that are so disproportionately large as to bear no reasonable relationship to the services rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the continuance of the Advisory Contract for the coming year.

B O A R D  R E V I E W  A N D  A  P P R O V A L  O F  I N V E S T M E N T  A D V I S O R Y   C O N T R A C T 75

Supplemental Information (unaudited)

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
Edge MSCI Min Vol Emerging Markets	$	1.479157	$	—	$	0.027705	$	1.506862		98	%		—	%		2	%		100	%
Edge MSCI Min Vol Global		1.735019		—		0.028833		1.763852		98			—			2			100
Edge MSCI Multifactor Emerging Markets		1.019691		—		—		1.019691		100			—			—			100
MSCI EM ESG Optimized		0.697444		—		—		0.697444		100			—			—			100
MSCI Emerging Markets ex China		0.844171		—		0.001903		0.846074		100			—			0	(a)		100

^(a) Rounds to less than 1%.

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 ask on the primary securities exchange on which 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 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.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or since the Fund began trading, if shorter) is publicly accessible, free of charge, at www.iShares.com.

The following information shows the frequency of distributions of premiums and discounts for the Funds for the immediately preceding five calendar years (or from the date a Fund began trading on the secondary market, if less than five years) through the date of the most recent calendar quarter-end. Each line in each table shows the number of trading days in which the Fund traded within the premium/discount range indicated. Premium/discount ranges with no trading days are omitted. 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.

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Supplemental Information (unaudited) (continued)

iShares Edge MSCI Min Vol Emerging Markets ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 3.5% and Less than 4.0%	1	0.07	%
Greater than 2.5% and Less than 3.0%	1	0.07
Greater than 2.0% and Less than 2.5%	1	0.07
Greater than 1.5% and Less than 2.0%	15	1.08
Greater than 1.0% and Less than 1.5%	40	2.89
Greater than 0.5% and Less than 1.0%	225	16.26
Greater than 0.0% and Less than 0.5%	525	37.94
At NAV	16	1.16
Less than 0.0% and Greater than –0.5%	359	25.95
Less than –0.5% and Greater than –1.0%	143	10.33
Less than –1.0% and Greater than –1.5%	42	3.03
Less than –1.5% and Greater than –2.0%	12	0.87
Less than –2.0% and Greater than –2.5%	2	0.14
Less than –2.5% and Greater than –3.0%	2	0.14
	1,384	100.00	%

iShares Edge MSCI Min Vol Global ETF

Period Covered: January 01, 2013 through June 30, 2018

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 1.5% and Less than 2.0%	1	0.07	%
Greater than 0.5% and Less than 1.0%	41	2.96
Greater than 0.0% and Less than 0.5%	829	59.90
At NAV	28	2.02
Less than 0.0% and Greater than –0.5%	468	33.82
Less than –0.5% and Greater than –1.0%	16	1.16
Less than –3.5% and Greater than –4.0%	1	0.07
	1,384	100.00	%

iShares Edge MSCI Multifactor Emerging Markets ETF

Period Covered: December 10, 2015 through June 30, 2018

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 6.0%	1	0.16	%
Greater than 2.0% and Less than 2.5%	1	0.16
Greater than 1.5% and Less than 2.0%	7	1.09
Greater than 1.0% and Less than 1.5%	14	2.18
Greater than 0.5% and Less than 1.0%	101	15.71
Greater than 0.0% and Less than 0.5%	289	44.94
At NAV	17	2.64
Less than 0.0% and Greater than –0.5%	166	25.81
Less than –0.5% and Greater than –1.0%	38	5.91
Less than –1.0% and Greater than –1.5%	8	1.24
Less than –2.5% and Greater than –3.0%	1	0.16
	643	100.00	%

S U P P L E M E N T A L  I N F O R  M A T I O N 77

Supplemental Information (unaudited) (continued)

iShares MSCI EM ESG Optimized ETF

Period Covered: June 30, 2016 through June 30, 2018

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 3.0% and Less than 3.5%	1	0.20	%
Greater than 2.0% and Less than 2.5%	2	0.40
Greater than 1.5% and Less than 2.0%	8	1.59
Greater than 1.0% and Less than 1.5%	38	7.54
Greater than 0.5% and Less than 1.0%	188	37.30
Greater than 0.0% and Less than 0.5%	188	37.30
At NAV	5	0.99
Less than 0.0% and Greater than –0.5%	52	10.31
Less than –0.5% and Greater than –1.0%	14	2.78
Less than –1.0% and Greater than –1.5%	6	1.19
Less than –2.0% and Greater than –2.5%	2	0.40
	504	100.00	%

iShares MSCI Emerging Markets ex China ETF

Period Covered: July 20, 2017 through June 30, 2018

Premium/Discount Range	Number of Days	Percentage of Total Days
Greater than 2.0% and Less than 2.5%	1	0.42	%
Greater than 1.5% and Less than 2.0%	2	0.84
Greater than 1.0% and Less than 1.5%	23	9.62
Greater than 0.5% and Less than 1.0%	93	38.90
Greater than 0.0% and Less than 0.5%	83	34.73
At NAV	2	0.84
Less than 0.0% and Greater than –0.5%	23	9.62
Less than –0.5% and Greater than –1.0%	8	3.35
Less than –1.0% and Greater than –1.5%	2	0.84
Less than –2.0% and Greater than –2.5%	2	0.84
	239	100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes detailed and prescriptive obligations on fund managers established in the European Union (the “EU”). These do not currently apply to managers established outside the EU, such as BFA. Rather, non-EU managers are only required to comply with certain disclosure, reporting and transparency obligations of the AIFMD if such managers market a fund to EU investors.

BFA has registered the iShares Edge MSCI Min Vol Emerging Markets 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 AIFMD 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.

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Supplemental Information (unaudited) (continued)

BlackRock operates a total compensation model for remuneration which includes a base salary, which is contractual, and a discretionary bonus scheme. Although all employees are eligible to receive a discretionary bonus, there is no contractual obligation to make a discretionary bonus award to any employees. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Remuneration decisions for employees are made once annually in January following the end of the performance year, based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual total 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.

Annual incentive awards are paid from a bonus pool which is reviewed throughout the year by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Enterprise Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions. Individuals are not involved in setting their own remuneration.

Each of the control functions (Enterprise Risk, Legal & Compliance, and Internal Audit) each have their own organizational structures which are independent of the business units. Functional bonus pools for those control functions 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.

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 iShares Edge MSCI Min Vol Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2017 was USD 437.14 thousand. This figure is comprised of fixed remuneration of USD 174.24 thousand and variable remuneration of USD 262.9 thousand. There were a total of 417 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, 2017, to its senior management was USD 61.15 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 11.39 thousand.

S U P P L E M E N T A L  I N F O R  M A T I O N 79

Director and Officer Information

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, 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 all of the funds within the Exchange-Traded Fund Complex, which consists of 343 funds as of August 31, 2018. With the exception of Robert S. Kapito, Mark K. Wiedman, Charles Park, Martin Small 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, Mr. Park, Mr. Small and Mr. Archibald is c/o BlackRock, Inc., Park Avenue Plaza, 55 East 52nd 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

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Robert S. Kapito(a) (61)	Director (since 2009).	President, BlackRock, Inc. (since 2006); Vice Chairman of BlackRock, Inc. and Head of BlackRock’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).	Director of BlackRock, Inc. (since 2006); Trustee of iShares Trust (since 2009); Trustee of iShares U.S. ETF Trust (since 2011).
Mark K. Wiedman(b) (47)	Director (since 2013).	Senior Managing Director, BlackRock, Inc. (since 2014); Managing Director, BlackRock, Inc. (2007-2014); Global Head of BlackRock’s ETF and Index Investments Business (since 2016); Global Head of iShares (2011-2016); Head of Corporate Strategy, BlackRock, Inc. (2009-2011).	Trustee of iShares Trust (since 2013); Trustee of iShares U.S. ETF Trust (since 2013); Director of PennyMac Financial Services, Inc. (since 2008).

^(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. and its affiliates.

^(b) Mark K. 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.

Independent Directors

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (69)	Director (since 2005); Independent Board Chair (since 2016).	Trustee and Member of the Finance, Technology and Quality Committee of Stanford Health Care (since 2016); Trustee and Member of the Investment Committee, WNET, a New York public media company (since 2011); Chair (1994-2005) and Member (since 1992) of the Investment Committee, Archdiocese of San Francisco; 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.	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); Trustee of Forward Funds (14 portfolios) (since 2009); Trustee of Salient MF Trust (4 portfolios) (since 2015).
Jane D. Carlin (62)	Director (since 2015); Risk Committee Chair (since 2016).	Consultant (since 2012); 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); Director of The Hanover Insurance Group, Inc. (since 2016).
Richard L. Fagnani (63)	Director (since 2017); Equity Plus Committee Chair (since 2017).	Partner, KPMG LLP (2002-2016).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).

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Director and Officer Information  (continued)

Independent Directors (continued)

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Charles A. Hurty (74)	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 SkyBridge Alternative Investments Multi-Adviser Hedge Fund Portfolios LLC (2 portfolios) (since 2002).
John E. Kerrigan (63)	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).
Drew E. Lawton (59)	Director (since 2017); 15(c) Committee Chair (since 2017)	Senior Managing Director of New York Life Insurance Company (2010-2015).	Trustee of iShares Trust (since 2017); Trustee of iShares U.S. ETF Trust (since 2017).
John E. Martinez (57)	Director (since 2003); Fixed Income Plus Committee Chair (since 2016).	Director of Real Estate Equity Exchange, Inc. (since 2005).	Trustee of iShares Trust (since 2003); Trustee of iShares U.S. ETF Trust (since 2011).
Madhav V. Rajan (54)	Director (since 2011); Nominating and Governance Committee Chair (since 2017).	Dean, and George Pratt Shultz Professor of Accounting, University of Chicago Booth School of Business (since 2017); Robert K. Jaedicke Professor of Accounting, Stanford University Graduate School of Business (2001-2017); Professor of Law (by courtesy), Stanford Law School (2005-2017); Senior Associate Dean for Academic Affairs and Head of MBA Program, Stanford University Graduate School of Business (2010-2016).	Trustee of iShares Trust (since 2011); Trustee of iShares U.S. ETF Trust (since 2011).

Officers

Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (43)	President (since 2016).	Managing Director, BlackRock, Inc. (since 2010); Head of U.S. iShares (since 2015); Co-Head of the U.S. Financial Markets Advisory Group, BlackRock, Inc. (2008-2014).
Jack Gee (58)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).
Charles Park (51)	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 of BFA (since 2006).
Benjamin Archibald (43)	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 (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).
Scott Radell (49)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).
Alan Mason (57)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

D I R E C T O R  A N D  O F F I C  E R  I N F O R M A T I O N 81

General Information

Electronic Delivery

Shareholders can sign up for email notifications announcing that the shareholder report or prospectus has been posted on the iShares website at www.iShares.com. Once you have enrolled, you will no longer receive prospectuses and shareholder reports in the mail.

To enroll in electronic delivery

• Go to www.icsdelivery.com.

• If your brokerage firm is not listed, electronic delivery may not be available. Please contact your broker-dealer or financial advisor.

Householding

Householding is an option available to certain fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

Availability of Quarterly Schedule of Investments

The iShares Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The iShares Funds’ Forms N-Q are available on the SEC’s website at www.sec.gov and 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 iShares Funds also disclose their complete schedule of portfolio holdings on a daily basis on the iShares website at www.iShares.com.

Availability of Proxy Voting Policies and Proxy Voting Records

A description of the policies and procedures that iShares Funds use to determine how to vote proxies relating to portfolio securities and information about how the iShares Funds voted proxies relating to portfolio securities during the most recent twelve-month period ending June 30 is available without charge, upon request (1) by calling toll-free 1-800-474-2737; (2) on the iShares website at www.iShares.com; and (3) on the SEC website at www.sec.gov.

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Glossary of Terms Used in this Report
Portfolio Abbreviations - Equity
ADR	American Depositary Receipt
CPO	Certificates of Participation (Ordinary)
GDR	Global Depositary Receipt
NVDR	Non-Voting Depositary Receipt
NVS	Non-Voting Shares

G L O S S A R Y  O F  T E R M S   U S E D  I N  T H I S  R E P O R T 83

	For more information visit www.iShares.com or call 1-800-iShares (1-800-474-2737) This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by the current prospectus. 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. ©2018 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are registered trademarks of BlackRock, Inc. or its subsidiaries. All other marks are the property of their respective owners.

Item 2. Code of Ethics.

The registrant has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to clarify an inconsistency in to whom persons covered by the code should report suspected violations of the code. The amendment clarifies that such reporting should be made to BlackRock’s General Counsel, and retains the alternative option of anonymous reporting following “whistleblower” policies. Other non-material changes were also made in connection with this amendment. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, by calling 1-800-474-2737.

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, Richard L. Fagnani (began serving on the audit committee effective as of June 20, 2017 and was designated as an audit committee

financial expert serving on the audit committee effective as of September 15, 2017), John E. Kerrigan, and Madhav V. Rajan, all of whom are independent, as that term is defined under Item 3(a)(2).

Item 4. Principal Accountant Fees and Services.

The principal accountant fees disclosed in items 4(a), 4(b), 4(c), 4(d) and 4(g) are for the forty-eight series of the registrant for which the fiscal year-end is August 31, 2018 (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 $762,300 for the fiscal year ended August 31, 2017 and $755,600 for the fiscal year ended August 31, 2018.

(b) Audit-Related Fees – There were no fees billed for the fiscal years ended August 31, 2017 and August 31, 2018 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 tax compliance, tax advice and tax planning for the Funds were $185,269 for the fiscal year ended August 31, 2017 and $181,488 for the fiscal year ended August 31, 2018. These services related to the review of the Funds’ tax returns and excise tax calculations.

(d) All Other Fees – There were no other fees billed in each of the fiscal years ended August 31, 2017 and August 31, 2018 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 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, 2018 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 $185,269 for the fiscal year ended August 31, 2017 and $181,488 for the fiscal year ended August 31, 2018.

(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 provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if any, is compatible with maintaining the principal accountant’s independence, and has determined that the provision of these services, if any, does not compromise the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants

(a) The registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act of 1934 and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act of 1934. The registrant’s audit committee members are Charles A. Hurty, Richard L. Fagnani (began serving on the audit committee effective as of June 20, 2017), John E. Kerrigan, and Madhav V. Rajan.

(b) Not applicable.

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 Treasurer and Chief Financial Officer (the registrant’s Principal Financial Officer) have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Exchange Act of 1934.

(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 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. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable to the registrant.

Item 13. Exhibits.

(a) (1) Code of Ethics is not filed as an exhibit; please refer to Item 2.

(a) (2) Section 302 Certifications are attached.

(a) (3) Not applicable.

(a) (4) Not applicable.

(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:	October 30, 2018

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:	October 30, 2018
By:	/s/ Jack Gee
	Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)
Date:	October 30, 2018