ISHARES TRUST
                       SUPPLEMENT DATED FEBRUARY 22, 2001
                                     to the
                                 PROSPECTUS AND
                      STATEMENT OF ADDITIONAL INFORMATION
                               DATED MAY 12, 2000
                          (AS REVISED JANUARY 30, 2001)


THE  INFORMATION IN THIS  SUPPLEMENT  UPDATES THE INFORMATION IN, AND SHOULD BE
READ IN  CONJUNCTION  WITH,  THE  PROSPECTUS  AND THE  STATEMENT OF  ADDITIONAL
INFORMATION OF ISHARES TRUST,  EACH DATED MAY 12, 2000 (AS REVISED  JANUARY 30,
2001).

THE ISHARES S&P SmallCap 600 Index Fund (IJR) Utilizes  Representative Sampling
as its Investment Strategy

Effective  February 22, 2001 the iShares S&P SmallCap 600 Index Fund (IJR) will
utilize a  Representative  Sampling  strategy to try and track the S&P SmallCap
600 Index.

THE  ISHARES  S&P   SmallCap   600/BARRA   Value  Index  Fund  (IJS)   Utilizes
Representative  Sampling as its Investment Strategy

Effective February 22, 2001 the iShares S&P SmallCap 600/BARRA Value Index Fund
(IJS) will utilize a Representative  Sampling strategy to try and track the S&P
SmallCap 600/BARRA Value Index.

THE  ISHARES  RUSSELL  2000  VALUE  INDEX FUND  (IWN)  UTILIZES  REPRESENTATIVE
SAMPLING AS ITS  INVESTMENT  STRATEGY

Effective  February  22, 2001 the iShares  Russell  2000 Value Index Fund (IWN)
will utilize a  Representative  Sampling  strategy to try and track the Russell
2000 Value Index.

THE  ISHARES  RUSSELL  3000  VALUE  INDEX FUND  (IWW)  UTILIZES  REPRESENTATIVE
SAMPLING AS ITS  INVESTMENT  STRATEGY

Effective  February  22, 2001 the iShares  Russell  3000 Value Index Fund (IWW)
will utilize a  Representative  Sampling  strategy to try and track the Russell
3000 Value Index.


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                         PLEASE RETAIN THIS SUPPLEMENT
                              FOR FUTURE REFERENCE