Form N-CSR

Name (Age)

Position(s)

Principal Occupation(s)

During the Past 5 Years

Other Directorships Held by Director

Robert S. Kapito^a (60)

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 (46)

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).

N-CSR 1 d451692dncsr.htm FORM N-CSR Form N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-09102

iShares, Inc.

(Exact name of registrant as specified in charter)

c/o: State Street Bank and Trust Company

1 Iron Street, Boston, MA 02210

(Address of principal executive offices) (Zip code)

The Corporation Trust Incorporated

351 West Camden Street, Baltimore, MD 21201

(Name and address of agent for service)

Registrant’s telephone number, including area code: (415) 670-2000

Date of fiscal year end: August 31, 2017

Date of reporting period: August 31, 2017

Item 1.

Reports to Stockholders.

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Austria Capped ETF | EWO | NYSE Arca

^Ø

iShares MSCI Belgium Capped ETF | EWK | NYSE Arca

^Ø

iShares MSCI France ETF | EWQ | NYSE Arca

^Ø

iShares MSCI Netherlands ETF | EWN | NYSE Arca

^Ø

iShares MSCI Sweden Capped ETF | EWD | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			16
Shareholder Expenses			16
Schedules of Investments			17
iShares MSCI Austria Capped ETF			17
iShares MSCI Belgium Capped ETF			19
iShares MSCI France ETF			22
iShares MSCI Netherlands ETF			25
iShares MSCI Sweden Capped ETF			28
Financial Statements			31
Financial Highlights			38
Notes to Financial Statements			43
Report of Independent Registered Public Accounting Firm			55
Tax Information			56
Board Review and Approval of Investment Advisory Contract			57
Supplemental Information			64
Director and Officer Information			68

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW

Global equity markets posted strong returns for the 12 months ended August 31, 2017 (the “reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 17.11% in U.S. dollar terms for the reporting period.

The primary factor behind the robust performance of global equity markets was improving global economic growth, driven largely by the continuation of accommodative monetary policies from many of the world’s central banks. Signs of stronger economic activity in Europe emerged as the European Central Bank (“ECB”) maintained policies such as quantitative easing and negative interest rates. Economic growth rates in China and Japan, the largest economies in Asia, also increased during the reporting period, reflecting efforts by the People’s Bank of China (“PBOC”) and the Bank of Japan (“BOJ”) to stimulate economic activity. Stronger economic growth led several central banks to consider reducing their economic stimulus measures. For example, late in the reporting period, the ECB discussed the possibility of tapering its quantitative easing program, while the PBOC increased short-term interest rates during the first half of 2017.

On a regional basis, European equity markets posted the best returns among developed markets, advancing by approximately 20% in U.S. dollar terms for the reporting period. European stocks benefited from improving economic conditions and stronger corporate earnings. In addition, election outcomes in France and the Netherlands eased investor concerns about nationalist presidential candidates and their opposition to the European Union (“E.U.”). Currency fluctuations also contributed meaningfully to European equity performance in U.S. dollar terms as the euro appreciated by approximately 6% against the U.S. dollar during the reporting period. The best-performing European stock markets included Austria, Italy, and Spain, while Ireland and Belgium posted the weakest returns.

Equity markets in the Asia-Pacific region gained about 16% in U.S. dollar terms for the reporting period, led by Singapore and Hong Kong. Japanese stocks also posted strong returns, benefiting from improving consumer spending and employment trends that contributed to the ongoing recovery in the Japanese economy. However, equity market returns in Japan were hindered by a decline in the Japanese yen, which depreciated by approximately 6% against the U.S. dollar.

The U.S. stock market returned approximately 15% for the reporting period. Despite mixed U.S. economic data, U.S. stocks advanced initially in anticipation of pro-business fiscal policies from the new presidential administration. Although the administration struggled to implement its fiscal agenda, stocks continued to move higher as better global economic conditions led to a notable improvement in corporate earnings growth, particularly for multinational companies with significant operations outside of the U.S. U.S. stocks advanced despite three short-term interest rate increases by the U.S. Federal Reserve Bank (the “Fed”) during the reporting period, which increased the short-term interest rate target to its highest level since October 2008. The Fed also unveiled a plan to start reducing the amount of U.S. Treasury bonds and mortgage-backed securities on its balance sheet before the end of 2017.

Emerging markets stocks outperformed those in developed markets, returning more than 23% in U.S. dollar terms for the reporting period. Emerging markets in Eastern Europe were the best performers, led by Poland, Greece, and Hungary. Equity markets in the Middle East trailed for the reporting period amid continued geopolitical conflict in the region.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI AUSTRIA CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		49.52%		49.60%		49.95%		49.52%		49.60%		49.95%
5 Years		11.92%		12.09%		12.12%		75.58%		76.96%		77.15%
10 Years		(1.99)%		(1.94)%		(2.40)%		(18.24)%		(17.81)%		(21.58)%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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

Certain sectors and markets performed exceptionally well based on market conditions during the one-year period. Achieving such exceptional returns involves the risk of volatility and investors should not expect that such exceptional returns will be repeated.

Past performance is no guarantee of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” on page 16 for more information.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,327.40	$	2.82	$	1,000.00	$	1,022.80	$	2.45		0.48%

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


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI AUSTRIA CAPPED ETF

The iShares MSCI Austria Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Austrian equities, as represented by the MSCI Austria 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 49.52%, net of fees, while the total return for the Index was 49.95%.

Broad-based growth in Austria’s economy was driven by robust domestic demand and a favorable trading environment for exports, such as automobiles, machinery, and paper products. Austrian exports reached a record high during the reporting period. Rising confidence from consumers and businesses encouraged solid levels of industrial production and retail sales growth.Austria’s unemployment rate declined, due in part to rising immigration and the availability of more jobs for women and seniors.

From a sector perspective, financials, which represented about 31% of the Index on average, was the largest contributor to the Index’s return for the reporting period. Austrian bank profits improved on decreased loan loss provisions and increased income from fees and commissions. The energy sector, led by the oil, gas, and consumable fuels industry, also contributed meaningfully to the Index’s performance, reflecting cost-saving efforts amid falling oil prices.

The materials sector also contributed significantly to the Index’s return during the reporting period. Within the sector, metals and mining companies contributed the most, followed by the construction materials industry also contributed. The real estate sector, led by real estate management and development companies, further increased the Index’s return. The industrials sector also helped support the Index’s performance, led by the air freight and logistics, aerospace and defense, and industrial machinery industries.

In contrast, the consumer discretionary sector detracted fractionally from the Index’s return for the reporting period.

The euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, was a contributor to the Index’s performance, as returns on Austrian investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	30.89	%
Materials	19.88
Energy	15.81
Real Estate	14.78
Industrials	11.50
Telecommunication Services	2.78
Information Technology	2.03
Utilities	1.45
Consumer Discretionary	0.88

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Erste Group Bank AG	21.24	%
OMV AG	14.05
Voestalpine AG	9.80
BUWOG AG	4.64
Raiffeisen Bank International AG	4.57
Andritz AG	4.49
Wienerberger AG	4.37
IMMOFINANZ AG	4.15
CA Immobilien Anlagen AG	4.13
Lenzing AG	3.62

TOTAL	75.06	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI BELGIUM CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.44%		16.61%		16.43%		16.44%		16.61%		16.43%
5 Years		14.30%		14.33%		13.79%		95.08%		95.35%		90.80%
10 Years		1.17%		1.19%		1.48%		12.35%		12.55%		15.82%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,168.60	$	2.68	$	1,000.00	$	1,022.70	$	2.50		0.49%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI BELGIUM CAPPED ETF

The iShares MSCI Belgium Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Belgian equities, as represented by the MSCI Belgium 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 16.44%, net of fees, while the total return for the Index was 16.43%.

Belgium posted a solid rate of economic growth during the reporting period. Healthy demand on the domestic front contributed to economic growth, as lower inflation encouraged consumers to spend more. The business environment also was strong; credit was easily accessible, and past structural reforms contributed to an increase in companies’ profitability. In an effort to increase the strength of its economy and establish the nation as a more compelling place to do business, the Belgian government introduced multiple reforms, including a plan to lower its corporate tax rate and decrease its sizable public debt burden.

From a sector perspective, the financials sector, which constituted approximately 23% of the Index on average, was the largest contributor to the Index’s return for the reporting period. Multiple industries in the sector performed well, including banks, insurers, and diversified financial services, in an environment of robust economic growth, low interest rates and inflation, and a strengthening euro.

The materials sector was also a solid contributor to the Index’s return for the reporting period. Standouts in the sector were chemical companies with applications in automotive end markets focused on electric vehicles and other green technologies. The healthcare and consumer discretionary sectors also contributed to the Index’s return. The energy sector was the only sector that detracted from the Index’s performance during the reporting period.

The euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, was a contributor to the Index’s performance, as returns on Belgian investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Consumer Staples	27.25	%
Financials	24.51
Materials	12.83
Health Care	10.19
Real Estate	6.62
Consumer Discretionary	4.99
Information Technology	4.13
Telecommunication Services	3.93
Industrials	2.91
Utilities	1.44
Energy	1.20

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Anheuser-Busch InBev SA/NV	22.87	%
KBC Group NV	9.70
Solvay SA	5.59
Ageas	4.28
Groupe Bruxelles Lambert SA	4.25
UCB SA	4.10
Umicore SA	3.95
Proximus SADP	3.00
Galapagos NV	2.48
Ackermans & van Haaren NV	2.42

TOTAL	62.64	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI FRANCE ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		26.93%		27.06%		26.78%		26.93%		27.06%		26.78%
5 Years		10.26%		10.40%		10.22%		62.98%		64.03%		62.69%
10 Years		1.03%		1.05%		1.05%		10.82%		10.99%		11.02%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,207.60	$	2.67	$	1,000.00	$	1,022.80	$	2.45		0.48%


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI FRANCE ETF

The iShares MSCI France ETF (the “Fund”) seeks to track the investment results of an index composed of French equities, as represented by the MSCI France Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 26.93%, net of fees, while the total return for the Index was 26.78%.

France’s economy grew steadily during the reporting period, its annual growth rate accelerating to its highest level in nearly six years. The economic momentum was driven by the external sector, which benefited from a sharp increase in exports for transportation equipment and refined petroleum products. Domestic economic growth was more modest, reflecting a slowdown in the tourism industry since the 2016 terrorist attacks. Domestic reaction to the election of President Emmanuel Macron was mixed as business sentiment increased close to a 10-year high, but consumer confidence decreased slightly, as consumers wait to gauge the success of the new president’s labor reforms.

From a sector perspective, the financials sector contributed the most to the Index’s return during the reporting period. Bank stocks, which are generally perceived to be risky during times of political uncertainty, rose sharply after the election of new President Emmanuel Macron, thereby alleviating doubt France would back away from the euro. The consumer discretionary sector was also a strong contributor to the Index’s return as luxury-brand companies benefited from increased demand from China.

The industrials sector, which represented roughly 19% of the Index on average, was also a solid contributor to the Index’s performance for the reporting period. The aerospace and defense industry contributed as solid global economic growth and relatively lower fuel prices encouraged strong passenger travel demand. The healthcare sector, in particular pharmaceuticals companies with strong product pipelines, also contributed to the Index’s return.

The euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance, as returns on French investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17

Sector

Percentage of

Total Investments*


Industrials	19.94	%
Consumer Discretionary	17.80
Financials	15.55
Health Care	9.94
Consumer Staples	9.81
Energy	8.21
Materials	5.10
Information Technology	4.16
Utilities	3.53
Real Estate	3.22
Telecommunication Services	2.74

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security

Percentage of

Total Investments*


Total SA	8.20	%
Sanofi	7.42
BNP Paribas SA	5.74
LVMH Moet Hennessy Louis Vuitton SE	4.92
AXA SA	3.79
L’Oreal SA	3.58
Airbus SE	3.29
Air Liquide SA	3.20
Danone SA	3.13
Vinci SA	3.12

TOTAL	46.39	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI NETHERLANDS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		26.44%		26.51%		27.10%		26.44%		26.51%		27.10%
5 Years		13.09%		13.21%		13.29%		84.99%		85.94%		86.64%
10 Years		3.12%		3.16%		3.58%		35.94%		36.46%		42.12%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,212.60	$	2.73	$	1,000.00	$	1,022.70	$	2.50		0.49%


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI NETHERLANDS ETF

The iShares MSCI Netherlands ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Dutch equities, as represented by the MSCI Netherlands Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 26.44%, net of fees, while the total return for the Index was 27.10%.

The economy of the Netherlands strengthened considerably on an annualized basis during the reporting period. Growth was driven largely by increased private consumption, as household spending for goods and services increased. Fixed investment increased as well, benefiting from increased investment in residential property and automobiles. The domestic sector was further helped by a decline in the unemployment rate, a strong housing market, and high consumer confidence. Strong external demand for such exports as chemicals, machinery, and equipment also benefited the Netherlands’ economy.

The financials sector, which represented 19% of the Index on average during the reporting period, was the largest contributor to the Index’s return. The strength of the sector was primarily driven by Dutch banks, which successfully reduced costs to counteract low interest rates, expanded their domestic customer base amid the improving Dutch economy, and bolstered their digital banking products and services. The information technology sector also enhanced the Index’s performance, due in part to favorable developments in the semiconductor and semiconductor equipment industry.

The largest sector in the Index, consumer staples, which represented about 30% of the Index on average for the reporting period, was a notable contributor to the Index’s return. The personal products industry within the sector was particularly strong. The strength of capital goods stocks within the industrials sector also contributed to the Index’s return.

The euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance as returns on Dutch investments were higher when translated into U.S. dollars.

Special note: Effective September 1, 2017, the Fund will begin to track a new underlying index, the MSCI Netherlands IMI 25/50 Index, and will cease to track the Index. The change to a capped benchmark is being implemented to seek to reduce tracking error and improve the investor experience.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Consumer Staples	27.50	%
Information Technology	19.27
Financials	18.79
Industrials	13.83
Materials	7.71
Health Care	4.41
Consumer Discretionary	2.86
Telecommunication Services	2.30
Energy	1.77
Real Estate	1.56

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Unilever NV CVA	16.82	%
ING Groep NV	11.78
ASML Holding NV	9.85
NXP Semiconductors NV	6.40
Koninklijke Philips NV	4.41
Akzo Nobel NV	4.22
RELX NV	3.74
Koninklijke Ahold Delhaize NV	3.56
Heineken NV	3.54
Koninklijke DSM NV	2.59

TOTAL	66.91	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI SWEDEN CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	1 Year		5 Years		10 Years		1 Year		5 Years		10 Years
Fund NAV		24.30%		8.57%		3.86%		24.30%		50.87%		46.08%
Fund Market		24.31%		8.67%		3.86%		24.31%		51.51%		46.09%
Index^a		23.60%		7.96%		3.53%		23.60%		46.67%		41.48%
MSCI Sweden Index		23.07%		7.87%		3.49%		23.07%		46.04%		40.87%
MSCI Sweden 25/50 Index^b		24.94%		n/a		n/a		24.94%		n/a		n/a

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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, which, effective as of December 1, 2016, replaced the MSCI Sweden Index as the underlying index of the Fund.

^b	The inception date for the MSCI Sweden 25/50 Index was July 20, 2016.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,166.00	$	2.62	$	1,000.00	$	1,022.80	$	2.45		0.48%


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SWEDEN CAPPED ETF

The iShares MSCI Sweden Capped ETF (the “Fund”) (formerly the iShares MSCI Sweden 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 24.30%, net of fees, while the total return for the Index was 23.60%.

The Swedish economy grew appreciably on an annualized basis during the reporting period. In the second quarter of 2017, Sweden posted its highest quarterly economic growth rate since 2010. An improved domestic economy was the primary source of growth, strengthened by increased household consumption due to low inflation, low unemployment, and higher levels of disposable income. An increase in real estate investment amid an environment of historically low interest rates further led to growth in the domestic economy.

The two largest sectors in the Index were the largest contributors to the Index’s performance during the reporting period. The financials sector, representing about 34% of the Index on average, was the largest contributor. Despite a decline in profits due to particularly low interest rates, many Swedish banks benefited from a strong increase in commission fees, as well as higher net interest income driven by rising mortgage loan volumes. The stocks of diversified financial companies also contributed to the Index’s performance. The industrials sector, which comprised approximately 32% of the Index on average, also made a solid contribution to the Index’s return, due to increased sales of industrial machinery, Sweden’s largest export.

The telecommunication services and materials sectors contributed modestly to the Index’s return during the reporting period, while the information technology and consumer discretionary sectors slightly detracted from the Index’s performance.

The Swedish krona, which appreciated about 7% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance as returns on Swedish investments were higher when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	34.07	%
Industrials	32.42
Consumer Discretionary	9.36
Information Technology	7.24
Consumer Staples	6.42
Telecommunication Services	5.67
Materials	2.54
Energy	1.17
Health Care	1.11

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Nordea Bank AB	9.87	%
Volvo AB Class B	6.39
Atlas Copco AB Class A	6.34
Swedbank AB Class A	5.89
Hennes & Mauritz AB Class B	5.79
Svenska Handelsbanken AB Class A	5.49
Assa Abloy AB Class B	4.57
Skandinaviska Enskilda Banken AB Class A	4.53
Investor AB Class B	4.48
Sandvik AB	4.43

TOTAL	57.78	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

About Fund Performance

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (“Market Price”) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Certain funds may have a NAV which is determined prior to the opening of regular trading on its listed exchange and their market returns are calculated using the midpoint of the bid/ask spread as of the opening of regular trading on the exchange. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on March 1, 2017 and held through August 31, 2017, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI AUSTRIA CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.66%

AEROSPACE & DEFENSE — 1.05%
FACC AG^a		202,145	$	2,448,964

				2,448,964
AIR FREIGHT & LOGISTICS — 3.05%
Oesterreichische Post AG		158,710		7,102,300

				7,102,300
BANKS — 25.72%
Erste Group Bank AG		1,170,167		49,381,033
Raiffeisen Bank International AG^a		324,506		10,632,786

				60,013,819
CHEMICALS — 3.61%
Lenzing AG		53,397		8,411,586

				8,411,586
CONSTRUCTION & ENGINEERING — 0.69%
Porr AG		56,664		1,613,459

				1,613,459
CONSTRUCTION MATERIALS — 6.44%
RHI AG		133,206		4,865,082
Wienerberger AG		471,227		10,157,179

				15,022,261
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.77%
Telekom Austria AG		673,134		6,469,534

				6,469,534
ELECTRIC UTILITIES — 1.45%
EVN AG		218,918		3,383,529

				3,383,529
ELECTRICAL EQUIPMENT — 1.28%
Zumtobel Group AG		165,552		2,986,815

				2,986,815
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.03%
Austria Technologie & Systemtechnik AG^b		183,439		2,533,121
Kapsch TrafficCom AG		41,781		2,199,539

				4,732,660
ENERGY EQUIPMENT & SERVICES — 1.75%
Schoeller-Bleckmann Oilfield Equipment AG^a,b		58,765		4,087,142

				4,087,142


Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 0.87%
DO & CO AG		38,631	$	2,038,990

				2,038,990
INSURANCE — 5.06%
UNIQA Insurance Group AG		610,228		6,184,885
Vienna Insurance Group AG Wiener Versicherung Gruppe		190,908		5,628,867

				11,813,752
MACHINERY — 5.39%
Andritz AG		192,265		10,448,564
Semperit AG Holding^b		71,570		2,131,067

				12,579,631
METALS & MINING — 9.77%
Voestalpine AG		439,757		22,790,023

				22,790,023
OIL, GAS & CONSUMABLE FUELS — 14.00%
OMV AG		569,061		32,670,905

				32,670,905
REAL ESTATE MANAGEMENT & DEVELOPMENT — 14.73%
BUWOG AG		351,040		10,788,530
CA Immobilien Anlagen AG		337,549		9,613,425
IMMOFINANZ AG^b		3,649,871		9,655,009
S IMMO AG		263,902		4,304,690

				34,361,654

TOTAL COMMON STOCKS
(Cost: $201,487,117)				232,527,024

SHORT-TERM INVESTMENTS — 2.89%

MONEY MARKET FUNDS — 2.89%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		6,611,731		6,613,715
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		135,114		135,114

				6,748,829

TOTAL SHORT-TERM INVESTMENTS
(Cost: $6,748,307)				6,748,829


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRIA CAPPED ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 102.55%
(Cost: $208,235,424)^f	$	239,275,853
Other Assets, Less Liabilities — (2.55)%		(5,953,855	)

NET ASSETS — 100.00%	$	233,321,998

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $220,363,807. Net unrealized appreciation was $18,912,046, of which $33,971,871 represented gross unrealized appreciation on investments and $15,059,825 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		1,619,284		4,992,447	^b		—		6,611,731	$	6,613,715	$	(221	)	$	522	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		35,791		99,323	^b		—		135,114		135,114		2			—		648

										$	6,748,829	$	(219	)	$	522	$	648

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Does not include income earned on investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

Schedule 2 — Fair Value Measurements

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

The following table summarizes the value of the Fund’s investments according to the fair value hierarchy as of August 31, 2017. 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	$	232,527,024	$	—	$	—	$	232,527,024
Money market funds		6,748,829		—		—		6,748,829

Total	$	239,275,853	$	—	$	—	$	239,275,853

See notes to financial statements.


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI BELGIUM CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.69%

AIR FREIGHT & LOGISTICS — 1.87%
bpost SA		49,625	$	1,383,530

				1,383,530
BANKS — 9.66%
KBC Group NV		87,299		7,164,606

				7,164,606
BEVERAGES — 22.80%
Anheuser-Busch InBev SA/NV		142,829		16,899,424

				16,899,424
BIOTECHNOLOGY — 3.40%
Ablynx NV^a,b		48,228		688,059
Galapagos NV^a,b		19,924		1,830,343

				2,518,402
CAPITAL MARKETS — 1.10%
Gimv NV		13,685		816,759

				816,759
CHEMICALS — 10.66%
Solvay SA		28,501		4,128,866
Tessenderlo Group SA^a		19,543		855,500
Umicore SA		39,139		2,919,904

				7,904,270
COMMUNICATIONS EQUIPMENT — 0.74%
EVS Broadcast Equipment SA		15,592		545,183

				545,183
CONSTRUCTION & ENGINEERING — 1.03%
Cie. d’Entreprises CFE		5,454		765,142

				765,142
DISTRIBUTORS — 1.10%
D’ieteren SA/NV		17,721		813,665

				813,665
DIVERSIFIED FINANCIAL SERVICES — 9.39%
Ackermans & van Haaren NV		10,644		1,786,836
Groupe Bruxelles Lambert SA		30,879		3,139,245
KBC Ancora		20,249		1,100,063
Sofina SA		6,458		937,857

				6,964,001
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.99%
Proximus SADP		63,018		2,218,817

				2,218,817


Security	Shares		Value
ELECTRIC UTILITIES — 1.44%
Elia System Operator SA/NV		17,909	$	1,063,961

				1,063,961
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.01%
Barco NV		7,692		748,428

				748,428
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 6.59%
Aedifica SA		10,510		1,020,244
Befimmo SA		13,972		876,745
Cofinimmo SA		10,440		1,345,473
Intervest Offices & Warehouses NV		19,896		525,599
Warehouses De Pauw CVA		9,921		1,120,532

				4,888,593
FOOD & STAPLES RETAILING — 2.14%
Colruyt SA		28,643		1,589,454

				1,589,454
FOOD PRODUCTS — 0.48%
Greenyard NV		14,562		355,950

				355,950
HEALTH CARE EQUIPMENT & SUPPLIES — 0.95%
Biocartis NV^a,b,c		22,863		277,255
Ion Beam Applications^b		15,206		424,119

				701,374
HEALTH CARE PROVIDERS & SERVICES — 0.86%
Fagron^a		41,911		634,808

				634,808
HEALTH CARE TECHNOLOGY — 0.86%
AGFA-Gevaert NV^a		144,538		638,562

				638,562
INSURANCE — 4.27%
Ageas		68,236		3,164,715

				3,164,715
IT SERVICES — 0.93%
Econocom Group SA/NV		93,608		686,885

				686,885
MEDIA — 3.26%
Kinepolis Group NV		12,625		730,905
Telenet Group Holding NV^a		24,878		1,682,069

				2,412,974
METALS & MINING — 2.13%
Bekaert SA		21,238		1,011,004


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI BELGIUM CAPPED ETF

August 31, 2017


Security	Shares		Value
Nyrstar NV^a,b		79,217	$	569,230

				1,580,234
OIL, GAS & CONSUMABLE FUELS — 1.20%
Euronav NV		76,797		587,358
Exmar NV^b		49,950		298,709

				886,067
PERSONAL PRODUCTS — 1.75%
Ontex Group NV		37,967		1,293,682

				1,293,682
PHARMACEUTICALS — 4.09%
UCB SA		44,071		3,033,204

				3,033,204
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.44%
Melexis NV		11,690		1,070,859

				1,070,859
TEXTILES, APPAREL & LUXURY GOODS — 0.63%
Sioen Industries NV		8,145		268,090
Van de Velde NV		3,872		196,290

				464,380
WIRELESS TELECOMMUNICATION SERVICES — 0.92%
Orange Belgium SA		28,557		685,649

				685,649
TOTAL COMMON STOCKS
(Cost: $74,144,399)				73,893,578

SHORT-TERM INVESTMENTS — 4.76%

MONEY MARKET FUNDS — 4.76%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		3,505,275		3,506,326
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		25,070		25,070

				3,531,396

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,531,069)				3,531,396


	Value
TOTAL INVESTMENTS IN SECURITIES — 104.45%
(Cost: $77,675,468)^g	$	77,424,974
Other Assets, Less Liabilities — (4.45)%		(3,297,428	)

NET ASSETS — 100.00%	$	74,127,546

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $78,280,507. Net unrealized depreciation was $855,533, of which $6,042,724 represented gross unrealized appreciation on investments and $6,898,257 represented gross unrealized depreciation on investments.


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI BELGIUM CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		4,526,272		—		(1,020,997	)^b		3,505,275	$	3,506,326	$	1,193	$	327	$	—^c
BlackRock Cash Funds: Treasury, SL Agency Shares		5,116		19,954^b		—			25,070		25,070		1		—		292

										$	3,531,396	$	1,194	$	327	$	292

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	73,893,578	$	—	$	—	$	73,893,578
Money market funds		3,531,396		—		—		3,531,396

Total	$	77,424,974	$	—	$	—	$	77,424,974

See notes to financial statements.


SCHEDULES OF INVESTMENTS			21

Schedule of Investments

iSHARES^® MSCI FRANCE ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.91%

AEROSPACE & DEFENSE — 6.76%
Airbus SE		250,367	$	21,017,856
Dassault Aviation SA		1,055		1,609,629
Safran SA		134,765		13,072,516
Thales SA		45,598		5,041,664
Zodiac Aerospace		88,079		2,545,149

				43,286,814
AIR FREIGHT & LOGISTICS — 0.27%
Bollore SA		375,424		1,741,624

				1,741,624
AUTO COMPONENTS — 2.64%
Cie. Generale des Etablissements Michelin Class B		73,706		10,033,523
Valeo SA		103,057		6,883,422

				16,916,945
AUTOMOBILES — 1.79%
Peugeot SA		222,010		4,681,110
Renault SA		76,465		6,759,099

				11,440,209
BANKS — 9.98%
BNP Paribas SA		483,643		36,748,436
Credit Agricole SA		490,571		8,637,779
Societe Generale SA		330,658		18,488,392

				63,874,607
BEVERAGES — 2.12%
Pernod Ricard SA		91,496		12,487,892
Remy Cointreau SA		9,620		1,097,172

				13,585,064
BUILDING PRODUCTS — 1.84%
Cie. de Saint-Gobain		215,363		11,797,272

				11,797,272
CAPITAL MARKETS — 0.48%
Natixis SA		405,587		3,041,731

				3,041,731
CHEMICALS — 3.69%
Air Liquide SA		167,722		20,448,941
Arkema SA		29,245		3,173,748

				23,622,689
COMMERCIAL SERVICES & SUPPLIES — 0.63%
Edenred		95,617		2,582,787
Societe BIC SA		12,228		1,467,597

				4,050,384


Security	Shares		Value
CONSTRUCTION & ENGINEERING — 4.27%
Bouygues SA		91,749	$	4,155,415
Eiffage SA		31,651		3,266,272
Vinci SA		216,866		19,943,296

				27,364,983
CONSTRUCTION MATERIALS — 0.21%
Imerys SA		15,372		1,350,579

				1,350,579
DIVERSIFIED FINANCIAL SERVICES — 0.54%
Eurazeo SA		18,847		1,557,075
Wendel SA		12,146		1,922,736

				3,479,811
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.74%
Iliad SA		11,383		2,936,037
Orange SA		859,747		14,591,231

				17,527,268
ELECTRIC UTILITIES — 0.39%
Electricite de France SA		236,344		2,500,804

				2,500,804
ELECTRICAL EQUIPMENT — 4.31%
Legrand SA		115,172		8,062,317
Schneider Electric SE		242,544		19,530,652

				27,592,969
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 0.39%
Ingenico Group SA		25,168		2,495,513

				2,495,513
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.21%
Fonciere des Regions		14,368		1,419,011
Gecina SA		20,249		3,151,290
ICADE		14,409		1,278,989
Klepierre SA		94,830		3,816,362
Unibail-Rodamco SE		42,937		10,901,253

				20,566,905
FOOD & STAPLES RETAILING — 0.98%
Carrefour SA		244,387		4,921,944
Casino Guichard Perrachon SA		23,981		1,361,828

				6,283,772
FOOD PRODUCTS — 3.13%
Danone SA		254,378		20,005,736

				20,005,736


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI FRANCE ETF

August 31, 2017


Security	Shares		Value
HEALTH CARE EQUIPMENT & SUPPLIES — 1.76%
Essilor International SA		89,399	$	11,271,675

				11,271,675
HOTELS, RESTAURANTS & LEISURE — 1.30%
Accor SA		79,778		3,689,588
Sodexo SA		39,728		4,630,212

				8,319,800
HOUSEHOLD DURABLES — 0.28%
SEB SA		9,721		1,763,643

				1,763,643
INSURANCE — 4.54%
AXA SA		836,074		24,228,943
CNP Assurances		74,222		1,720,729
SCOR SE		74,375		3,112,539

				29,062,211
IT SERVICES — 2.18%
Atos SE		40,668		6,266,182
Capgemini SE		69,253		7,667,845

				13,934,027
LIFE SCIENCES TOOLS & SERVICES — 0.42%
Eurofins Scientific SE		4,726		2,697,557

				2,697,557
MACHINERY — 0.37%
Alstom SA		66,216		2,351,885

				2,351,885
MEDIA — 3.83%
Eutelsat Communications SA		75,179		2,182,219
JCDecaux SA		31,925		1,043,969
Lagardere SCA		50,663		1,625,695
Publicis Groupe SA		87,609		5,905,775
SES SA		157,211		3,589,570
Vivendi SA		443,731		10,168,556

				24,515,784
METALS & MINING — 1.19%
ArcelorMittal^a		286,433		7,641,719

				7,641,719
MULTI-UTILITIES — 3.14%
Engie SA		734,596		12,244,519
Suez		158,594		3,004,581
Veolia Environnement SA		206,356		4,835,583

				20,084,683
OIL, GAS & CONSUMABLE FUELS — 8.20%
Total SA		1,016,135		52,485,139

				52,485,139


Security	Shares		Value
PERSONAL PRODUCTS — 3.58%
L’Oreal SA		108,553	$	22,888,544

				22,888,544
PHARMACEUTICALS — 7.75%
Ipsen SA		16,177		2,170,424
Sanofi		488,831		47,458,418

				49,628,842
PROFESSIONAL SERVICES — 0.42%
Bureau Veritas SA		114,187		2,711,743

				2,711,743
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.74%
STMicroelectronics NV		275,018		4,759,030

				4,759,030
SOFTWARE — 0.85%
Dassault Systemes SE		55,423		5,452,594

				5,452,594
TEXTILES, APPAREL & LUXURY GOODS — 7.96%
Hermes International		13,622		7,195,522
Kering		32,648		12,238,430
LVMH Moet Hennessy Louis Vuitton SE		120,276		31,494,885

				50,928,837
TRADING COMPANIES & DISTRIBUTORS — 0.30%
Rexel SA		130,419		1,945,941

				1,945,941
TRANSPORTATION INFRASTRUCTURE — 0.73%
Aeroports de Paris		12,788		2,278,267
Groupe Eurotunnel SE Registered		201,366		2,397,630

				4,675,897

TOTAL COMMON STOCKS
(Cost: $635,137,666)				639,645,230

SHORT-TERM INVESTMENTS — 0.04%

MONEY MARKET FUNDS — 0.04%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^b,c		218,501		218,501

				218,501

TOTAL SHORT-TERM INVESTMENTS
(Cost: $218,501)				218,501


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI FRANCE ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.95%
(Cost: $635,356,167)^d	$	639,863,731
Other Assets, Less Liabilities — 0.05%		336,916

NET ASSETS — 100.00%	$	640,200,647

^a	Non-income earning security.

^b	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $646,041,334. Net unrealized depreciation was $6,177,603, of which $35,643,921 represented gross unrealized appreciation on investments and $41,821,524 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		144,475		—			(144,475	)^b		—	$	—	$	(123	)	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		19,022		199,479	^b		—			218,501		218,501		1			—		1,705

											$	218,501	$	(122	)	$	—	$	1,705

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	639,645,230	$	—	$	—	$	639,645,230
Money market funds		218,501		—		—		218,501

Total	$	639,863,731	$	—	$	—	$	639,863,731

See notes to financial statements.


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI NETHERLANDS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.66%

AIR FREIGHT & LOGISTICS — 0.42%
PostNL NV		201,767	$	802,161

				802,161
BANKS — 13.76%
ABN AMRO Group NV^a		139,209		3,895,999
ING Groep NV		1,276,031		22,604,382

				26,500,381
BEVERAGES — 6.67%
Coca-Cola European Partners PLC		80,976		3,462,916
Heineken Holding NV		20,214		1,993,249
Heineken NV		64,788		6,788,338
Refresco Group NV^a		30,637		594,991

				12,839,494
CAPITAL MARKETS — 0.40%
BinckBank NV		61,029		308,079
Flow Traders^a		17,159		465,025

				773,104
CHEMICALS — 7.62%
Akzo Nobel NV		88,614		8,091,121
Corbion NV		29,710		894,358
Koninklijke DSM NV		65,635		4,973,070
OCI NV^b,c		37,464		709,760

				14,668,309
CONSTRUCTION & ENGINEERING — 1.41%
Arcadis NV		40,527		879,331
Boskalis Westminster		38,809		1,266,543
Koninklijke BAM Groep NV		93,580		560,514

				2,706,388
DIVERSIFIED FINANCIAL SERVICES — 0.00%
SNS REAAL NV^b,c,d		68,952		1

				1
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.29%
Koninklijke KPN NV		1,249,575		4,413,774

				4,413,774
ELECTRICAL EQUIPMENT — 0.93%
Kendrion NV		12,570		533,742
Philips Lighting NV^a		1,703		62,765
SIF Holding NV^c		3,208		60,261
TKH Group NV		19,127		1,126,089

				1,782,857
ENERGY EQUIPMENT & SERVICES — 0.89%
Fugro NV CVA^b,c		38,083		482,878


Security	Shares		Value
SBM Offshore NV		77,091	$	1,232,280

				1,715,158
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.55%
Eurocommercial Properties NV		22,276		953,421
NSI NV		13,286		511,781
VastNed Retail NV		12,349		570,605
Wereldhave NV		19,566		956,534

				2,992,341
FOOD & STAPLES RETAILING — 3.55%
Koninklijke Ahold Delhaize NV		380,658		6,833,718

				6,833,718
FOOD PRODUCTS — 0.43%
ForFarmers NV		6,267		77,898
Wessanen		42,931		748,001

				825,899
HEALTH CARE EQUIPMENT & SUPPLIES — 4.39%
Koninklijke Philips NV		223,780		8,455,130

				8,455,130
HOTELS, RESTAURANTS & LEISURE — 0.05%
Basic-Fit NV^a,b		4,614		86,755

				86,755
HOUSEHOLD DURABLES — 0.33%
TomTom NV^b,c		60,718		632,652

				632,652
INSURANCE — 4.55%
Aegon NV		654,355		3,731,107
ASR Nederland NV		16,929		655,231
NN Group NV		110,607		4,383,573

				8,769,911
INTERNET SOFTWARE & SERVICES — 0.04%
Takeaway.com Holding BV^a,b		1,605		74,419

				74,419
IT SERVICES — 0.82%
InterXion Holding NV^b		30,495		1,581,166

				1,581,166
LEISURE PRODUCTS — 0.28%
Accell Group		17,351		532,012

				532,012
MACHINERY — 0.96%
Aalberts Industries NV		41,407		1,839,925

				1,839,925


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI NETHERLANDS ETF

August 31, 2017


Security	Shares		Value
MEDIA — 2.20%
Altice NV Class A^b		139,536	$	3,213,372
Altice NV Class B^b		44,028		1,016,799

				4,230,171
METALS & MINING — 0.07%
AMG Advanced Metallurgical Group NV		3,723		133,740

				133,740
OIL, GAS & CONSUMABLE FUELS — 0.87%
Koninklijke Vopak NV		30,418		1,285,809
VTTI Energy Partners LP		20,406		395,876

				1,681,685
PERSONAL PRODUCTS — 16.76%
Unilever NV CVA		542,802		32,273,304

				32,273,304
PROFESSIONAL SERVICES — 7.93%
Brunel International NV^c		20,333		270,748
Intertrust NV^a		24,652		395,668
Randstad Holding NV		45,485		2,655,456
RELX NV		342,034		7,171,168
Wolters Kluwer NV		109,322		4,769,354

				15,262,394
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 17.44%
ASM International NV		21,250		1,247,542
ASML Holding NV		121,823		18,901,007
BE Semiconductor Industries NV		17,773		1,150,545
NXP Semiconductors NV^b		108,771		12,286,772

				33,585,866
SOFTWARE — 0.90%
Gemalto NV		32,270		1,741,615

				1,741,615
TRADING COMPANIES & DISTRIBUTORS — 2.15%
AerCap Holdings NV^b		55,961		2,814,838
IMCD Group NV		22,640		1,329,819

				4,144,657

TOTAL COMMON STOCKS
(Cost: $167,448,235)				191,878,987

SHORT-TERM INVESTMENTS — 0.65%

MONEY MARKET FUNDS — 0.65%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		1,224,613		1,224,980


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		32,493	$	32,493

				1,257,473

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,257,248)				1,257,473

TOTAL INVESTMENTS IN SECURITIES — 100.31%
(Cost: $168,705,483)^h				193,136,460
Other Assets, Less Liabilities — (0.31)%				(596,784	)

NET ASSETS — 100.00%			$	192,539,676

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

^b	Non-income earning security.

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $171,742,276. Net unrealized appreciation was $21,394,184, of which $32,093,559 represented gross unrealized appreciation on investments and $10,699,375 represented gross unrealized depreciation on investments.


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI NETHERLANDS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		863,112		361,501	^b		—		1,224,613	$	1,224,980	$	1,251	$	225	$	—^c
BlackRock Cash Funds: Treasury, SL Agency Shares		13,498		18,995	^b		—		32,493		32,493		3		—		824

										$	1,257,473	$	1,254	$	225	$	824

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	191,878,986	$	—	$	1	$	191,878,987
Money market funds		1,257,473		—		—		1,257,473

Total	$	193,136,459	$	—	$	1	$	193,136,460

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI SWEDEN CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.11%

BANKS — 25.56%
Nordea Bank AB		3,352,977	$	45,044,298
Skandinaviska Enskilda Banken AB Class A		1,592,065		20,687,732
Svenska Handelsbanken AB Class A		1,678,225		25,055,217
Swedbank AB Class A		995,523		26,873,059

				117,660,306
BUILDING PRODUCTS — 4.53%
Assa Abloy AB Class B		966,577		20,868,496

				20,868,496
COMMERCIAL SERVICES & SUPPLIES — 1.44%
Securitas AB Class B		404,073		6,631,848

				6,631,848
COMMUNICATIONS EQUIPMENT — 3.91%
Telefonaktiebolaget LM Ericsson Class B		3,073,272		17,986,173

				17,986,173
CONSTRUCTION & ENGINEERING — 2.03%
Skanska AB Class B		413,470		9,326,957

				9,326,957
DIVERSIFIED FINANCIAL SERVICES — 8.21%
Industrivarden AB Class C		224,511		5,309,930
Investor AB Class B		437,700		20,440,137
Kinnevik AB Class B		291,737		8,766,023
L E Lundbergforetagen AB Class B		42,447		3,283,270

				37,799,360
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.20%
Telia Co. AB		3,098,195		14,756,369

				14,756,369
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.27%
Hexagon AB Class B		307,327		15,058,631

				15,058,631
FOOD & STAPLES RETAILING — 0.98%
ICA Gruppen AB^a		112,877		4,493,887

				4,493,887
HEALTH CARE EQUIPMENT & SUPPLIES — 1.08%
Getinge AB Class B		267,645		4,964,517

				4,964,517


Security	Shares		Value
HOUSEHOLD DURABLES — 3.55%
Electrolux AB Class B		294,435	$	10,689,774
Husqvarna AB Class B		559,150		5,632,009

				16,321,783
HOUSEHOLD PRODUCTS — 3.62%
Essity AB Class B^b		601,100		16,664,173

				16,664,173
MACHINERY — 24.14%
Alfa Laval AB		367,459		8,312,142
Atlas Copco AB Class A		738,819		28,912,670
Atlas Copco AB Class B		425,950		15,180,860
Sandvik AB		1,226,417		20,236,455
SKF AB Class B		466,593		9,311,513
Volvo AB Class B		1,710,454		29,169,084

				111,122,724
METALS & MINING — 2.52%
Boliden AB		331,714		11,588,845

				11,588,845
OIL, GAS & CONSUMABLE FUELS — 1.16%
Lundin Petroleum AB^b		249,346		5,342,670

				5,342,670
SPECIALTY RETAIL — 5.73%
Hennes & Mauritz AB Class B		1,045,037		26,397,285

				26,397,285
TOBACCO — 1.77%
Swedish Match AB		228,614		8,139,185

				8,139,185
WIRELESS TELECOMMUNICATION SERVICES — 2.41%
Millicom International Cellular SA SDR		88,476		5,511,578
Tele2 AB Class B		481,449		5,596,591

				11,108,169

TOTAL COMMON STOCKS
(Cost: $465,732,396)				456,231,378

RIGHTS — 0.02%

HEALTH CARE EQUIPMENT & SUPPLIES — 0.02%
Getinge AB (Expires 09/14/17)^b		274,747		101,511

				101,511

TOTAL RIGHTS
(Cost: $0)				101,511


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SWEDEN CAPPED ETF

August 31, 2017


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.81%

MONEY MARKET FUNDS — 0.81%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		3,689,579	$	3,690,686
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		5,596		5,596

				3,696,282

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,696,548)				3,696,282


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.94%
(Cost: $469,428,944)^f	$	460,029,171
Other Assets, Less Liabilities — 0.06%		286,168

NET ASSETS — 100.00%	$	460,315,339

SDR — Swedish Depositary Receipts

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

^b	Non-income earning security.

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $478,903,931. Net unrealized depreciation was $18,874,760, of which $32,157,507 represented gross unrealized appreciation on investments and $51,032,267 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)			Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		3,689,579	^b		—		3,689,579	$	3,690,686	$	85	$	(266	)	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		3,595		2,001	^b		—		5,596		5,596		4		—			1,395

										$	3,696,282	$	89	$	(266	)	$	1,395

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI SWEDEN CAPPED ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	456,231,378	$	—	$	—	$	456,231,378
Rights		101,511		—		—		101,511
Money market funds		3,696,282		—		—		3,696,282

Total	$	460,029,171	$	—	$	—	$	460,029,171

See notes to financial statements.


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


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

ASSETS
Investments in securities, at cost:
Unaffiliated	$	201,487,117		$	74,144,399		$	635,137,666
Affiliated (Note 2)		6,748,307			3,531,069			218,501

Total cost of investments in securities	$	208,235,424		$	77,675,468		$	635,356,167

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	232,527,024		$	73,893,578		$	639,645,230
Affiliated (Note 2)		6,748,829			3,531,396			218,501
Foreign currency, at value^b		49,448			102,161			478,521
Receivables:
Investment securities sold		4,176,123			748,809			1,186,790
Dividends and interest		8,167			27,914			14,775
Tax reclaims		645,392			132,723			—

Total Assets		244,154,983			78,436,581			641,543,817


LIABILITIES
Payables:
Investment securities purchased		4,127,068			773,761			1,094,264
Collateral for securities on loan (Note 1)		6,613,414			3,504,806			—
Investment advisory fees (Note 2)		92,503			30,468			248,906

Total Liabilities		10,832,985			4,309,035			1,343,170


NET ASSETS	$	233,321,998		$	74,127,546		$	640,200,647


Net assets consist of:
Paid-in capital	$	277,854,695		$	118,877,221		$	686,176,655
Undistributed net investment income		304,157			20,272			560,868
Accumulated net realized loss		(75,914,540	)		(44,530,472	)		(51,058,704	)
Net unrealized appreciation (depreciation)		31,077,686			(239,475	)		4,521,828

NET ASSETS	$	233,321,998		$	74,127,546		$	640,200,647


Shares outstanding^c		10,200,000			3,600,000			21,600,000


Net asset value per share	$	22.87		$	20.59		$	29.64

^a	Securities on loan with values of $6,354,994, $3,352,243 and $ —, respectively. See Note 1.

^b	Cost of foreign currency: $49,638, $100,618 and $464,198, respectively.

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

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Netherlands ETF			iShares MSCI Sweden Capped ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	167,448,235		$	465,732,396
Affiliated (Note 2)		1,257,248			3,696,548

Total cost of investments in securities	$	168,705,483		$	469,428,944

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	191,878,987		$	456,332,889
Affiliated (Note 2)		1,257,473			3,696,282
Foreign currency, at value^b		228,838			989,134
Receivables:
Investment securities sold		9,471,216			3,942,408
Dividends and interest		481,531			1,728
Tax reclaims		—			1,685,045
Foreign withholding tax claims (Note 7)		—			11,396,643

Total Assets		203,318,045			478,044,129


LIABILITIES
Payables:
Investment securities purchased		9,327,678			3,899,861
Collateral for securities on loan (Note 1)		1,223,503			3,691,027
Securities related to in-kind transactions (Note 4)		145,987			—
IRS compliance fee for foreign withholding tax claims (Note 7)		—			8,773,929
Professional fees (Note 7)		—			1,179,664
Investment advisory fees (Note 2)		81,201			184,309

Total Liabilities		10,778,369			17,728,790


NET ASSETS	$	192,539,676		$	460,315,339


Net assets consist of:
Paid-in capital	$	209,046,329		$	511,485,787
Undistributed (distributions in excess of) net investment income		890,011			(31,879	)
Accumulated net realized loss		(41,831,343	)		(42,562,115	)
Net unrealized appreciation (depreciation)		24,434,679			(8,576,454	)

NET ASSETS	$	192,539,676		$	460,315,339


Shares outstanding^c		6,300,000			13,275,000


Net asset value per share	$	30.56		$	34.68

^a	Securities on loan with values of $1,186,570 and $3,527,046, respectively. See Note 1.

^b	Cost of foreign currency: $227,139 and $977,049, respectively.

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

See notes to financial statements.


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


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

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	3,872,802		$	2,464,136		$	11,741,618
Dividends — affiliated (Note 2)		648			292			1,705
Securities lending income — affiliated — net (Note 2)		80,110			78,025			158,583

Total investment income		3,953,560			2,542,453			11,901,906


EXPENSES
Investment advisory fees (Note 2)		591,323			442,656			1,888,632
Proxy fees		2,971			1,937			8,278

Total expenses		594,294			444,593			1,896,910

Net investment income		3,359,266			2,097,860			10,004,996


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(7,201,674	)		(1,443,698	)		(4,652,843	)
Investments — affiliated (Note 2)		(221	)		1,193			(123	)
In-kind redemptions — unaffiliated		2,695,958			(489,021	)		7,571,026
Foreign currency transactions		(10,461	)		6,641			161,297
Realized gain distributions from affiliated funds		2			1			1

Net realized gain (loss)		(4,516,396	)		(1,924,884	)		3,079,358

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		52,901,602			12,537,384			76,286,554
Investments — affiliated (Note 2)		522			327			—
Translation of assets and liabilities in foreign currencies		76,169			13,771			12,695

Net change in unrealized appreciation/depreciation		52,978,293			12,551,482			76,299,249

Net realized and unrealized gain		48,461,897			10,626,598			79,378,607

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	51,821,163		$	12,724,458		$	89,383,603

^a	Net of foreign withholding tax of $402,976, $432,010 and $1,599,319, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			33

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Netherlands ETF			iShares MSCI Sweden Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	3,972,089		$	11,073,214
Dividends — affiliated (Note 2)		824			1,395
Securities lending income — affiliated — net (Note 2)		18,323			11,464

Total investment income		3,991,236			11,086,073


EXPENSES
Investment advisory fees (Note 2)		869,772			1,664,642
Proxy fees		3,804			7,863

Total expenses		873,576			1,672,505

Net investment income		3,117,660			9,413,568


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(1,912,461	)		(9,659,953	)
Investments — affiliated (Note 2)		1,251			85
In-kind redemptions — unaffiliated		5,669,639			8,997,642
Foreign currency transactions		46,806			(8,102	)
Realized gain distributions from affiliated funds		3			4

Net realized gain (loss)		3,805,238			(670,324	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		35,465,221			63,408,851
Investments — affiliated (Note 2)		225			(266	)
Translation of assets and liabilities in foreign currencies		11,252			925,414

Net change in unrealized appreciation/depreciation		35,476,698			64,333,999

Net realized and unrealized gain		39,281,936			63,663,675

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	42,399,596		$	73,077,243

^a	Net of foreign withholding tax of $683,611 and $191,908, respectively.

See notes to financial statements.


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Austria Capped ETF						iShares MSCI Belgium Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	3,359,266		$	1,511,969		$	2,097,860		$	3,586,837
Net realized gain (loss)		(4,516,396	)		(3,384,444	)		(1,924,884	)		1,193,969
Net change in unrealized appreciation/depreciation		52,978,293			1,994,024			12,551,482			(1,399,047	)

Net increase in net assets resulting from operations		51,821,163			121,549			12,724,458			3,381,759


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,029,256	)		(1,345,976	)		(2,204,067	)		(3,766,140	)

Total distributions to shareholders		(3,029,256	)		(1,345,976	)		(2,204,067	)		(3,766,140	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		135,197,556			48,261,666			14,586,717			307,240,550
Cost of shares redeemed		(11,447,909	)		(42,386,794	)		(83,182,138	)		(328,312,366	)

Net increase (decrease) in net assets from capital share transactions		123,749,647			5,874,872			(68,595,421	)		(21,071,816	)

INCREASE (DECREASE) IN NET ASSETS		172,541,554			4,650,445			(58,075,030	)		(21,456,197	)

NET ASSETS
Beginning of year		60,780,444			56,129,999			132,202,576			153,658,773

End of year	$	233,321,998		$	60,780,444		$	74,127,546		$	132,202,576

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	304,157		$	(15,415	)	$	20,272		$	50,163


SHARES ISSUED AND REDEEMED
Shares sold		6,900,000			3,100,000			800,000			17,280,000
Shares redeemed		(600,000	)		(2,800,000	)		(4,480,000	)		(19,040,000	)

Net increase (decrease) in shares outstanding		6,300,000			300,000			(3,680,000	)		(1,760,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			35

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI France ETF						iShares MSCI Netherlands ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	10,004,996		$	10,101,361		$	3,117,660		$	5,525,960
Net realized gain (loss)		3,079,358			(5,468,375	)		3,805,238			(9,005,653	)
Net change in unrealized appreciation/depreciation		76,299,249			(10,982,251	)		35,476,698			10,379,782

Net increase (decrease) in net assets resulting from operations		89,383,603			(6,349,265	)		42,399,596			6,900,089


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,786,674	)		(10,111,706	)		(4,373,491	)		(4,368,474	)

Total distributions to shareholders		(9,786,674	)		(10,111,706	)		(4,373,491	)		(4,368,474	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		409,375,231			117,552,844			13,981,115			108,170,576
Cost of shares redeemed		(177,825,168	)		(122,177,212	)		(44,054,461	)		(102,397,515	)

Net increase (decrease) in net assets from capital share transactions		231,550,063			(4,624,368	)		(30,073,346	)		5,773,061

INCREASE (DECREASE) IN NET ASSETS		311,146,992			(21,085,339	)		7,952,759			8,304,676

NET ASSETS
Beginning of year		329,053,655			350,138,994			184,586,917			176,282,241

End of year	$	640,200,647		$	329,053,655		$	192,539,676		$	184,586,917

Undistributed net investment income included in net assets at end of year	$	560,868		$	181,248		$	890,011		$	2,099,033


SHARES ISSUED AND REDEEMED
Shares sold		14,800,000			4,800,000			500,000			4,550,000
Shares redeemed		(7,000,000	)		(5,000,000	)		(1,650,000	)		(4,300,000	)

Net increase (decrease) in shares outstanding		7,800,000			(200,000	)		(1,150,000	)		250,000

See notes to financial statements.


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Sweden Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	9,413,568		$	11,883,219
Net realized loss		(670,324	)		(9,199,802	)
Net change in unrealized appreciation/depreciation		64,333,999			(13,928,238	)

Net increase (decrease) in net assets resulting from operations		73,077,243			(11,244,821	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(9,859,546	)		(12,154,414	)

Total distributions to shareholders		(9,859,546	)		(12,154,414	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		206,461,394			49,435,762
Cost of shares redeemed		(94,072,500	)		(72,714,714	)

Net increase (decrease) in net assets from capital share transactions		112,388,894			(23,278,952	)

INCREASE (DECREASE) IN NET ASSETS		175,606,591			(46,678,187	)

NET ASSETS
Beginning of year		284,708,748			331,386,935

End of year	$	460,315,339		$	284,708,748

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(31,879	)	$	190,625


SHARES ISSUED AND REDEEMED
Shares sold		6,300,000			1,650,000
Shares redeemed		(3,000,000	)		(2,625,000	)

Net increase (decrease) in shares outstanding		3,300,000			(975,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			37

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Austria Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	15.58		$	15.59		$	17.55		$	17.87		$	14.53

Income from investment operations:
Net investment income^a		0.53			0.38			0.25			0.52			0.32
Net realized and unrealized gain (loss)^b		7.13			(0.06	)		(1.96	)		(0.18	)		3.36

Total from investment operations		7.66			0.32			(1.71	)		0.34			3.68

Less distributions from:
Net investment income		(0.37	)		(0.33	)		(0.25	)		(0.66	)		(0.34	)

Total distributions		(0.37	)		(0.33	)		(0.25	)		(0.66	)		(0.34	)

Net asset value, end of year	$	22.87		$	15.58		$	15.59		$	17.55		$	17.87


Total return		49.52	%		2.11	%		(9.76	)%		1.56	%		25.49	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	233,322		$	60,780		$	56,130		$	63,170		$	82,223
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		2.75	%		2.47	%		1.54	%		2.64	%		1.82	%
Portfolio turnover rate^c		18	%		15	%		18	%		30	%		26	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Belgium Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	18.16		$	17.00		$	17.02		$	14.36		$	11.97

Income from investment operations:
Net investment income^a		0.43			0.34			0.34			0.32			0.42
Net realized and unrealized gain (loss)^b		2.51			1.05			(0.00	)^c		2.95			2.36

Total from investment operations		2.94			1.39			0.34			3.27			2.78

Less distributions from:
Net investment income		(0.51	)		(0.23	)		(0.36	)		(0.61	)		(0.39	)

Total distributions		(0.51	)		(0.23	)		(0.36	)		(0.61	)		(0.39	)

Net asset value, end of year	$	20.59		$	18.16		$	17.00		$	17.02		$	14.36


Total return		16.44	%		8.20	%		1.95	%		23.05	%		23.43	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	74,128		$	132,203		$	153,659		$	164,765		$	71,216
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		2.31	%		1.92	%		2.01	%		1.90	%		3.01	%
Portfolio turnover rate^d		8	%		19	%		7	%		13	%		24	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c	Rounds to less than $0.01.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			39

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI France ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	23.84		$	25.01		$	27.64		$	24.85		$	20.70

Income from investment operations:
Net investment income^a		0.69			0.67			0.74			0.66			0.69
Net realized and unrealized gain (loss)^b		5.69			(1.14	)		(2.69	)		2.86			4.14

Total from investment operations		6.38			(0.47	)		(1.95	)		3.52			4.83

Less distributions from:
Net investment income		(0.58	)		(0.70	)		(0.68	)		(0.73	)		(0.68	)

Total distributions		(0.58	)		(0.70	)		(0.68	)		(0.73	)		(0.68	)

Net asset value, end of year	$	29.64		$	23.84		$	25.01		$	27.64		$	24.85


Total return		26.93	%		(1.87	)%		(7.17	)%		14.07	%		23.56	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	640,201		$	329,054		$	350,139		$	281,923		$	526,839
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		2.57	%		2.77	%		2.85	%		2.36	%		2.94	%
Portfolio turnover rate^c		6	%		6	%		6	%		6	%		5	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Netherlands ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	24.78		$	24.48		$	24.64		$	22.52		$	18.23

Income from investment operations:
Net investment income^a		0.46			0.71			0.50			0.45			0.44
Net realized and unrealized gain (loss)^b		5.98			0.08			(0.27	)		2.22			4.19

Total from investment operations		6.44			0.79			0.23			2.67			4.63

Less distributions from:
Net investment income		(0.66	)		(0.49	)		(0.39	)		(0.55	)		(0.34	)

Total distributions		(0.66	)		(0.49	)		(0.39	)		(0.55	)		(0.34	)

Net asset value, end of year	$	30.56		$	24.78		$	24.48		$	24.64		$	22.52


Total return		26.44	%		3.32	%		0.87	%		11.80	%		25.57	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	192,540		$	184,587		$	176,282		$	165,092		$	253,390
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		1.74	%		2.97	%		2.01	%		1.78	%		2.09	%
Portfolio turnover rate^c		14	%		24	%		6	%		7	%		11	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			41

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Sweden Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	28.54		$	30.26		$	34.11		$	31.97		$	27.32

Income from investment operations:
Net investment income^a		0.86			1.05			1.30	^b		1.04			0.97
Net realized and unrealized gain (loss)^c		6.04			(1.63	)		(3.75	)		2.33			4.70

Total from investment operations		6.90			(0.58	)		(2.45	)		3.37			5.67

Less distributions from:
Net investment income		(0.76	)		(1.14	)		(1.40	)		(1.23	)		(1.02	)

Total distributions		(0.76	)		(1.14	)		(1.40	)		(1.23	)		(1.02	)

Net asset value, end of year	$	34.68		$	28.54		$	30.26		$	34.11		$	31.97


Total return		24.30	%		(1.91	)%		(7.46	)%^b		10.49	%		21.02	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	460,315		$	284,709		$	331,387		$	404,256		$	434,006
Ratio of expenses to average net assets		0.49	%		0.48	%		0.92	%		0.48	%		0.51	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 7)		n/a			n/a			0.48	%		n/a			n/a
Ratio of net investment income to average net assets		2.74	%		3.65	%		3.97	%^b		2.97	%		3.13	%
Portfolio turnover rate^d		9	%		7	%		4	%		7	%		7	%

^a	Based on average shares outstanding throughout each period.

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

•

Net investment income per share by $0.42

•

Total return by 1.14%

•

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

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^®, INC.

iShares, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company was incorporated under the laws of the State of Maryland on September 1, 1994 pursuant to Articles of Incorporation as subsequently amended and restated.

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


iShares ETF		Diversification Classification
MSCI Austria Capped		Non-diversified
MSCI Belgium Capped		Non-diversified
MSCI France		Non-diversified
MSCI Netherlands		Non-diversified
MSCI Sweden Capped^a		Non-diversified

Formerly the iShares MSCI Sweden ETF.

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

1.	*SIGNIFICANT ACCOUNTING POLICIES*

The following significant accounting policies are consistently followed by each Fund in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies.

SECURITY VALUATION

Each Fund’s investments are valued at fair value each day that the Fund’s listing exchange is open and, for financial reporting purposes, as of the report date should the reporting period end on a day that the Fund’s listing exchange is not open. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) provides oversight of the valuation of investments for the Funds. The investments of each Fund are valued pursuant to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

•

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


NOTES TO FINANCIAL STATEMENTS			43

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the fair value of such investment or if a price is not available, the investment will be valued by the Global Valuation Committee, in accordance with policies approved by the Board. The fair valuation approaches that may be utilized by the Global Valuation Committee to determine fair value include market approach, income approach and the cost approach. The 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. Valuations based on such inputs are reported to the Board on a quarterly basis.

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

Fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Fund’s underlying index, which in turn could result in a difference between the Fund’s performance and the performance of the Fund’s underlying index.

Various inputs are used in determining the fair value of financial instruments. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

•

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

•

Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability (such as exchange rates, financing terms, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs; and

•

Level 3 — Unobservable inputs for the asset or liability 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 investments.

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.


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

as of the beginning of the reporting period. The categorization of values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

Security 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 as of August 31, 2017 are reflected in tax reclaims receivable. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be re-designated as a reduction of cost of the related investment and/or realized gain. Non-cash dividends received, if any, are recognized on the ex-dividend date and recorded as non-cash dividend income at fair value. Distributions received by the Funds may include a return of capital that is estimated by management. Such amounts are recorded as a reduction of the cost of investments or reclassified to capital gains. Interest income is accrued daily.

FOREIGN CURRENCY TRANSLATION

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in foreign currencies, are translated into U.S. dollars using exchange rates deemed appropriate by the investment adviser. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars on the respective dates of such transactions.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. Such fluctuations are reflected by the Funds as a component of realized and unrealized gains and losses from investments for financial reporting purposes. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for 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 the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2017, if any, are disclosed in the Funds’ statements of assets and liabilities.

DISTRIBUTIONS TO SHAREHOLDERS

Dividends and distributions paid by each Fund are recorded on the ex-dividend dates. Distributions are determined on a tax basis and may differ from net investment income and net realized capital gains for financial reporting purposes. Dividends and distributions are paid in U.S. dollars and cannot be automatically reinvested in additional shares of the Funds.


NOTES TO FINANCIAL STATEMENTS			45

Notes to Financial Statements (Continued)

iSHARES^®, INC.

LOANS OF PORTFOLIO SECURITIES

Each Fund may lend its investment securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by 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 value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of August 31, 2017, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the schedules of investments. 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 are also disclosed in its schedule of investments. The total value of any securities on loan as of August 31, 2017 and the total value of the related cash collateral are disclosed in the statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the statements of operations.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of securities 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 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.

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


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Austria Capped
Credit Suisse Securities (USA) LLC	$	419,420	$	419,420	$	—
Deutsche Bank Securities Inc.		40,793		40,793		—
Goldman Sachs & Co.		4,731,820		4,731,820		—
Morgan Stanley & Co. LLC		160,171		160,171		—
State Street Bank & Trust Company		696,450		696,450		—
UBS Securities LLC		306,340		306,340		—

	$	6,354,994	$	6,354,994	$	—

MSCI Belgium Capped
Citigroup Global Markets Inc.	$	354,102	$	354,102	$	—
Deutsche Bank Securities Inc.		157,039		157,039		—
Goldman Sachs & Co.		200,230		200,230		—
JPMorgan Securities LLC		116,171		116,171		—
Morgan Stanley & Co. LLC		2,457,744		2,457,744		—
Nomura Securities International Inc.		23,376		23,376		—
State Street Bank & Trust Company		17,770		17,770		—
UBS AG		25,811		25,811		—

	$	3,352,243	$	3,352,243	$	—

MSCI Netherlands
Credit Suisse Securities (USA) LLC	$	55,584	$	55,584	$	—
HSBC Bank PLC		128,550		128,550		—
Merrill Lynch, Pierce, Fenner & Smith		822,022		822,022		—
State Street Bank & Trust Company		180,414		180,414		—

	$	1,186,570	$	1,186,570	$	—

MSCI Sweden Capped
HSBC Bank PLC	$	283,025	$	283,025	$	—
Morgan Stanley & Co. LLC		3,244,021		3,244,021		—

	$	3,527,046	$	3,527,046	$	—

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

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

Pursuant to an Investment Advisory Agreement with the Company, BFA manages the investment of each Fund’s assets. BFA is a California corporation indirectly owned by BlackRock. Under the Investment Advisory Agreement, BFA is responsible for substantially all expenses of the Funds, except (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).


NOTES TO FINANCIAL STATEMENTS			47

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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:


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

Break level added or amended effective July 1, 2017.

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

Pursuant to a securities lending agreement, each Fund retains 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Austria Capped	$	20,983
MSCI Belgium Capped		18,915
MSCI France		35,371
MSCI Netherlands		4,913
MSCI Sweden Capped		3,517

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.


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Austria Capped	$	325,356	$	835,092
MSCI Belgium Capped		3,062,593		170,454
MSCI France		2,036,537		2,446,980
MSCI Netherlands		2,525,705		5,647,845
MSCI Sweden Capped		8,312,879		6,368,226

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

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
MSCI Austria Capped	$	25,048,089	$	22,134,129
MSCI Belgium Capped		7,192,537		7,431,981
MSCI France		30,638,707		22,504,526
MSCI Netherlands		25,098,232		24,536,663
MSCI Sweden Capped		36,463,829		30,744,473

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Austria Capped	$	132,326,954	$	11,385,729
MSCI Belgium Capped		14,431,357		82,815,891
MSCI France		400,403,605		176,952,212
MSCI Netherlands		11,950,433		43,879,914
MSCI Sweden Capped		197,504,454		93,671,140


NOTES TO FINANCIAL STATEMENTS			49

Notes to Financial Statements (Continued)

iSHARES^®, INC.

4.	*CAPITAL SHARE TRANSACTIONS*

Capital shares are issued and redeemed by each Fund only in aggregations of a specified number of shares or multiples thereof (“Creation Units”) at NAV. Except when aggregated in Creation Units, shares of each Fund are not redeemable. Transactions in capital shares for each Fund are disclosed in detail in the statements of changes in net assets.

The consideration for the purchase of Creation Units of a fund in the Company generally consists of the in-kind deposit of a designated portfolio of securities and a specified amount of cash. Certain funds in the Company may be offered in Creation Units solely or partially for cash in U.S. dollars. Investors purchasing and redeeming Creation Units may pay a purchase transaction fee and a redemption transaction fee directly to State Street Bank and Trust Company, the Company’s administrator, to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

From time to time, settlement of securities related to in-kind contributions or in-kind redemptions may be delayed. In such cases, securities related to in-kind contributions are reflected as “Due from custodian” and securities related to in-kind redemptions are reflected as “Securities related to in-kind transactions” in the statements of assets and liabilities.

5.	*PRINCIPAL RISKS*

In the normal course of business, each Fund 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.

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.


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.

The economies and markets of European countries are often closely connected and interdependent, and events in one country in Europe can have an adverse impact on other European countries. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.

When a fund concentrates its investments in issuers located in a single country, it assumes the risk that economic, political and social conditions in that country may have a significant impact on its investment performance.

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.

6.	*INCOME TAX INFORMATION*

Each Fund is treated as an entity separate from the Company’s other funds for federal income tax purposes. It is the policy of each Fund to qualify as a regulated investment company by complying with the provisions applicable to regulated investment companies, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, and to annually distribute substantially all of its ordinary income and any net capital gains (taking into account any capital loss carryforwards) sufficient to relieve it from all, or substantially all, federal income and excise taxes. Accordingly, no provision for federal income taxes is required.


NOTES TO FINANCIAL STATEMENTS			51

Notes to Financial Statements (Continued)

iSHARES^®, INC.

August 31, 2017, attributable to passive foreign investment companies, the expiration of capital loss carryforwards, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Austria Capped	$	(4,914,676	)	$	(10,438	)	$	4,925,114
MSCI Belgium Capped		(9,021,870	)		76,316			8,945,554
MSCI France		(3,831,720	)		161,298			3,670,422
MSCI Netherlands		(2,215,416	)		46,809			2,168,607
MSCI Sweden Capped		(9,514,386	)		223,474			9,290,912

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
MSCI Austria Capped
Ordinary income	$	3,029,256	$	1,345,976


MSCI Belgium Capped
Ordinary income	$	2,204,067	$	3,766,140


MSCI France
Ordinary income	$	9,786,674	$	10,111,706


MSCI Netherlands
Ordinary income	$	4,373,491	$	4,368,474


MSCI Sweden Capped
Ordinary income	$	9,859,546	$	12,154,414

As of August 31, 2017, 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 Austria Capped	$	1,765,330	$	(65,247,330	)	$	18,949,303		$	(44,532,697	)
MSCI Belgium Capped		372,616		(44,277,777	)		(844,514	)		(44,749,675	)
MSCI France		560,868		(40,373,537	)		(6,163,339	)		(45,976,008	)
MSCI Netherlands		890,011		(38,794,550	)		21,397,886			(16,506,653	)
MSCI Sweden Capped		2,672,020		(36,595,951	)		(17,246,517	)		(51,170,448	)

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


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2017, 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 2018		Expiring 2019		Total
MSCI Austria Capped	$	34,763,382		16,657,011	$	13,826,937	$	65,247,330
MSCI Belgium Capped		14,428,086		10,826,174		19,023,517		44,277,777
MSCI France		30,506,193		7,008,530		2,858,814		40,373,537
MSCI Netherlands		14,209,375		22,256,170		2,329,005		38,794,550
MSCI Sweden Capped		22,867,464		8,483,510		5,244,977		36,595,951

^{Must be utilized prior to losses subject to expiration.}

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

Management has analyzed tax laws and regulations and their application to the Funds as of August 31, 2017, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

7.	*FOREIGN WITHHOLDING TAX CLAIMS*

The iShares MSCI Sweden ETF 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 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.

8.	*LEGAL PROCEEDINGS*


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 Plaintiffs’ claims with prejudice.

9.	*SUBSEQUENT EVENTS*

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements, except as noted below.

Effective September 1, 2017, the iShares MSCI Netherlands ETF will track a new underlying index, the MSCI Netherlands IMI 25/50 Index, and will cease to track the MSCI Netherlands Investable Market Index. The change to a capped benchmark is being implemented to seek to reduce tracking error and improve the investor experience.


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

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

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

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Austria Capped ETF, iShares MSCI Belgium Capped ETF, iShares MSCI France ETF, iShares MSCI Netherlands ETF and iShares MSCI Sweden Capped ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			55

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
MSCI Austria Capped	$	3,953,705
MSCI Belgium Capped		2,629,632
MSCI France		13,282,122
MSCI Netherlands		4,619,683
MSCI Sweden Capped		10,615,738

For the fiscal year ended August 31, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Austria Capped	$	4,275,778	$	402,717
MSCI Belgium Capped		2,896,146		431,458
MSCI France		13,340,937		1,598,141
MSCI Netherlands		4,655,700		683,611
MSCI Sweden Capped		11,265,122		30,853


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Austria Capped ETF, iShares MSCI Belgium Capped ETF and iShares MSCI Netherlands ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Funds. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Funds — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of each Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising such Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of 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, 2016, to that of relevant comparison funds for the same periods.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			57

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

The Board noted that each Fund seeks to track its own underlying index and that, during the year, the Board received periodic reports on each Fund’s short- and longer-term performance in comparison with its underlying index. Such periodic comparative performance information, including any additional detailed information requested by the Boards, 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 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Funds, as well as the resources available to them in managing the Funds. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

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

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


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Funds to provide for an additional breakpoint as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider the Advisory Contract at least annually, determined to approve the continuance of the Advisory Contract for the coming year.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Funds by BFA, such as payment of revenue to BTC, the Funds’ securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Funds in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			59

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

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

II. iShares MSCI France ETF and iShares MSCI Sweden Capped ETF


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			61

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Funds to provide for an additional breakpoint as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

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


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			63

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results

A special meeting of the shareholders of each series of iShares, Inc. (the “Company”) was held on June 19, 2017, to elect five Directors to the Board of Directors of the Company. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Directors at the special meeting. The other Directors whose terms of office as Directors continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are provided pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Fund’s investment experience during the year and may be subject to changes based on the tax regulations. Shareholders will receive a Form 1099-DIV each calendar year that will inform them how to report these distributions for federal income tax purposes.


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
MSCI Austria Capped	$	0.368112	$	—	$	—	$	0.368112		100	%		—	%		—	%		100	%
MSCI Belgium Capped		0.506019		—		—		0.506019		100			—			—			100
MSCI France		0.584890		—		—		0.584890		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.


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Premium/discount information for the Funds covering the most recently completed calendar year and the most recently completed calendar quarters since that year (or the life of the Fund, 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 inception date of the Fund, 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. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.

iShares MSCI Austria Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		3		0.22
Greater than 1.5% and Less than 2.0%		8		0.58
Greater than 1.0% and Less than 1.5%		21		1.52
Greater than 0.5% and Less than 1.0%		137		9.91
Greater than 0.0% and Less than 0.5%		538		38.91
At NAV		15		1.08
Less than 0.0% and Greater than –0.5%		509		36.80
Less than –0.5% and Greater than –1.0%		116		8.39
Less than –1.0% and Greater than –1.5%		26		1.88
Less than –1.5% and Greater than –2.0%		4		0.29
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5%		2		0.14

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			65

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Belgium Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		3		0.22
Greater than 1.0% and Less than 1.5%		18		1.30
Greater than 0.5% and Less than 1.0%		139		10.05
Greater than 0.0% and Less than 0.5%		613		44.33
At NAV		15		1.08
Less than 0.0% and Greater than –0.5%		486		35.15
Less than –0.5% and Greater than –1.0%		82		5.93
Less than –1.0% and Greater than –1.5%		18		1.30
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%		2		0.14

		1,383		100.00	%

iShares MSCI France ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		7		0.51
Greater than 1.0% and Less than 1.5%		44		3.18
Greater than 0.5% and Less than 1.0%		171		12.36
Greater than 0.0% and Less than 0.5%		614		44.40
At NAV		16		1.16
Less than 0.0% and Greater than –0.5%		425		30.74
Less than –0.5% and Greater than –1.0%		75		5.42
Less than –1.0% and Greater than –1.5%		20		1.45
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 –2.5%		2		0.14

		1,383		100.00	%


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Netherlands ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		6		0.43
Greater than 1.0% and Less than 1.5%		18		1.30
Greater than 0.5% and Less than 1.0%		123		8.89
Greater than 0.0% and Less than 0.5%		635		45.92
At NAV		17		1.23
Less than 0.0% and Greater than –0.5%		480		34.72
Less than –0.5% and Greater than –1.0%		81		5.86
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%		1		0.07
Less than –2.5% and Greater than –3.0%		1		0.07

		1,383		100.00	%

iShares MSCI Sweden Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		1		0.07
Greater than 1.5% and Less than 2.0%		9		0.65
Greater than 1.0% and Less than 1.5%		36		2.60
Greater than 0.5% and Less than 1.0%		152		10.99
Greater than 0.0% and Less than 0.5%		564		40.79
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		457		33.04
Less than –0.5% and Greater than –1.0%		111		8.03
Less than –1.0% and Greater than –1.5%		26		1.88
Less than –1.5% and Greater than –2.0%		7		0.51
Less than –2.0% and Greater than –2.5%		2		0.14
Less than –2.5%		3		0.22

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			67

Director and Officer Information

iSHARES^®, INC.

The Board of Directors has responsibility for the overall management and operations of the Funds, including general supervision of the duties performed by BFA and other service providers. Each Director serves until he or she resigns, is removed, dies, retires or becomes incapacitated. Each officer shall hold office until his or her successor is elected and qualifies or until his or her death, resignation or removal. Directors who are not “interested persons” (as defined in the 1940 Act) of the Company are referred to as independent directors (“Independent Directors”).

The registered investment companies advised by BFA or its affiliates (the “BlackRock-advised Funds”) are organized into one complex of closed-end funds, two complexes of open-end funds and one complex of exchange-traded funds (“Exchange-Traded Fund Complex”) (each, a “BlackRock Fund Complex”). Each Fund is included in the BlackRock Fund Complex referred to as the Exchange-Traded Fund Complex. Each Director also serves as a Trustee of iShares Trust and a Trustee of iShares U.S. ETF Trust and, as a result, oversees a total of 344 funds (as of August 31, 2017) within the Exchange-Traded Fund Complex. Drew E. Lawton, from October 2016 to June 2017, and Richard L. Fagnani, from April 2017 to June 2017, served as Advisory Board Members for iShares Trust, iShares Inc. and iShares U.S. ETF Trust with respect to all funds within the Exchange-Traded Fund Complex. 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

^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.


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


DIRECTOR AND OFFICER INFORMATION			69

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


DIRECTOR AND OFFICER INFORMATION			71

Notes:


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			73

Notes:


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by MSCI Inc., nor does this company make any representation regarding the advisability of investing in the iShares Funds. BlackRock is not affiliated with the company listed above.

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

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website or may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds also disclose their complete schedules of portfolio holdings on a daily basis on the Funds’ website.

iS-AR-802-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Eurozone ETF | EZU | BATS

^Ø

iShares MSCI Germany ETF | EWG | NYSE Arca

^Ø

iShares MSCI Italy Capped ETF | EWI | NYSE Arca

^Ø

iShares MSCI Spain Capped ETF | EWP | NYSE Arca

^Ø

iShares MSCI Switzerland Capped ETF | EWL | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			16
Shareholder Expenses			16
Schedules of Investments			17
iShares MSCI Eurozone ETF			17
iShares MSCI Germany ETF			22
iShares MSCI Italy Capped ETF			26
iShares MSCI Spain Capped ETF			28
iShares MSCI Switzerland Capped ETF			30
Financial Statements			32
Financial Highlights			39
Notes to Financial Statements			44
Report of Independent Registered Public Accounting Firm			57
Tax Information			58
Board Review and Approval of Investment Advisory Contract			59
Supplemental Information			69
Director and Officer Information			74

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI EUROZONE ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		24.72%		24.07%		24.91%		24.72%		24.07%		24.91%
5 Years		10.16%		10.20%		10.29%		62.26%		62.53%		63.22%
10 Years		0.12%		0.12%		0.23%		1.25%		1.16%		2.32%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,193.10	$	2.65	$	1,000.00	$	1,022.80	$	2.45		0.48%


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EUROZONE ETF

The iShares MSCI Eurozone ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization equities from developed market countries that use the euro as their official currency, as represented by the MSCI EMU Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 24.72%, net of fees, while the total return for the Index was 24.91%.

The Eurozone economy posted strong growth during the reporting period, though inflation remained low enough for the ECB to keep interest rates at zero percent, stating that a considerable amount of monetary accommodation remained necessary. Household consumption, which historically accounts for more than half of the Eurozone’s average economic growth, was the largest driver of the economy, as consumer spending reached a record high in the second quarter of 2017. A declining unemployment rate helped increase consumer spending.

The equity markets in France and Germany, which together represented approximately 62% of the Index on average during the reporting period, were the leading contributors to the Index’s return. French stocks rose significantly after the election of the country’s new president, Emmanuel Macron, while the German market was helped by a combination of low interest rates, low unemployment, and stable public finances.

Spain, the Netherlands, and Italy also contributed to the Index’s performance. In Spain, household consumption increased thanks to a combination of robust job creation and credit growth. The Netherlands’ economy benefited from strong employment growth and increased consumer optimism. Italy’s economic acceleration was strengthened by business and consumer confidence levels that approached multi-year highs.

From a sector standpoint, the financials sector, representing about 20% of the Index on average, contributed the most to the Index’s return for the reporting period. Banks and insurance stocks contributed the most to the sector, as many companies in these industries restructured and streamlined in order to increase income in the low interest rate environment. The industrials and consumer discretionary sectors were also strong contributors to the Index’s return.

From a currency perspective, the euro appreciated about 6% relative to the U.S. dollar during the reporting period, making it a relatively large contributor to the Index’s performance, as returns on Eurozone investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	20.84	%
Industrials	14.53
Consumer Discretionary	13.36
Consumer Staples	10.38
Health Care	8.51
Materials	8.14
Information Technology	7.89
Utilities	5.29
Energy	5.08
Telecommunication Services	4.18
Real Estate	1.80

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


France	31.90	%
Germany	28.91
Netherlands	11.43
Spain	10.75
Italy	7.48
Belgium	3.63
Finland	3.10
Ireland	1.34
Austria	0.78
Portugal	0.48

TOTAL	99.80	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI GERMANY ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.63%		19.72%		19.89%		19.63%		19.72%		19.89%
5 Years		9.69%		9.84%		9.88%		58.76%		59.88%		60.18%
10 Years		2.10%		2.09%		2.20%		23.10%		23.01%		24.28%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,133.90	$	2.64	$	1,000.00	$	1,022.70	$	2.50		0.49%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GERMANY ETF

The iShares MSCI Germany ETF (the “Fund”) seeks to track the investment results of an index composed of German equities, as represented by the MSCI Germany Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 19.63%, net of fees, while the total return for the Index was 19.89%.

The German economy expanded solidly on an annual basis through the second quarter of 2017, due to healthy domestic demand and government spending. Net trade negatively affected the economy, however, as sales to countries outside the E.U. declined. The unemployment rate declined to 3.7%, the nation’s lowest jobless rate in 37 years, which helped consumer spending increase. Inflation was volatile but remained low, while the ECB’s benchmark interest rate remained at zero percent throughout the reporting period.

The financials sector, representing about 15% of the Index on average, was the largest contributor to the Index’s return during the reporting period. The insurance industry was the main contributor to the sector, as companies restructured, streamlined, and introduced digital applications to consumers to boost their bottom lines amid low interest rates. The materials and industrials sectors, each representing approximately 14% of the Index on average, also contributed to the Index’s performance. Better-than-expected earnings for chemical companies boosted the materials sector. Within the industrials sector, transportation-related companies benefited from increased shipping demand amid the improved global economy.

The information technology and healthcare sectors were notable contributors to the Index’s performance as well during the reporting period, as was the consumer discretionary sector, the largest sector in the Index, comprising approximately 19% of the Index on average.

In currency terms, the euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, was a contributor to the Index’s return, as returns on German investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Consumer Discretionary	18.08	%
Financials	15.32
Materials	14.13
Industrials	14.06
Health Care	13.68
Information Technology	10.25
Telecommunication Services	4.74
Consumer Staples	3.81
Utilities	3.30
Real Estate	2.63

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Bayer AG Registered	7.95	%
SAP SE	7.74
Siemens AG Registered	7.51
Allianz SE Registered	7.34
BASF SE	6.68
Daimler AG Registered	5.27
Deutsche Telekom AG Registered	4.44
adidas AG	3.17
Deutsche Post AG Registered	3.02
Linde AG	2.67

TOTAL	55.79	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI ITALY CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		37.37%		37.89%		37.57%		37.37%		37.89%		37.57%
5 Years		7.81%		7.94%		7.77%		45.65%		46.55%		45.40%
10 Years		(4.50)%		(4.49)%		(4.52)%		(36.90)%		(36.83)%		(37.03)%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,297.90	$	2.78	$	1,000.00	$	1,022.80	$	2.45		0.48%


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ITALY CAPPED ETF

The iShares MSCI Italy Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Italian equities, as represented by the MSCI Italy 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 37.37%, net of fees, while the total return for the Index was 37.57%.

Italy posted a moderate level of economic growth during the reporting period, though its rate of growth trailed most other countries in the Eurozone. Nevertheless, Italy’s recent increase in consumer confidence led to more willingness to spend generally and higher retail sales specifically. Business confidence also increased, due to expectations for growth amid the improving economies of its major trading partners. However, demand for Italy’s exports generally did not affect the nation’s economic growth in the second quarter of 2017. Italy also continued to have one of the highest jobless rates of any developed nation in the world.

The financials sector, representing about 33% of the Index on average, was the most significant contributor to the Index’s performance during the reporting period. The stock prices of Italian banks, which had been low due to bad loans and insufficient capital, increased sharply after a taxpayer bailout package helped instill new optimism about the country’s financial system. The consumer discretionary sector also contributed to the Index’s performance, due largely to the strong sales of luxury Italian sports cars amid low global interest rates and the strong global economy.

The utilities sector, particularly electric utilities, also was a notable contributor to the Index’s return for the reporting period, as was the industrials sector, driven by the strong performance of machinery and transportation infrastructure stocks.

The euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance, as returns on Italian investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	34.59	%
Energy	17.42
Utilities	16.04
Industrials	13.17
Consumer Discretionary	12.69
Telecommunication Services	4.51
Health Care	1.58

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Enel SpA	12.76	%
Intesa Sanpaolo SpA	10.87
UniCredit SpA	10.36
Eni SpA	10.09
Fiat Chrysler Automobiles NV	4.64
Ferrari NV	4.55
Atlantia SpA	4.53
Assicurazioni Generali SpA	4.49
Snam SpA	4.11
CNH Industrial NV	4.11

TOTAL	70.51	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI SPAIN CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		31.48%		31.59%		32.07%		31.48%		31.59%		32.07%
5 Years		9.16%		9.29%		9.63%		54.99%		55.91%		58.38%
10 Years		(0.53)%		(0.53)%		(0.65)%		(5.16)%		(5.20)%		(6.34)%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,237.70	$	2.71	$	1,000.00	$	1,022.80	$	2.45		0.48%


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SPAIN CAPPED ETF

The iShares MSCI Spain Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Spanish equities, as represented by the MSCI Spain 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 31.48%, net of fees, while the total return for the Index was 32.07%.

Spain’s economy increased at a 3.1% annualized rate in the second quarter of 2017 due to the strong performance of both its domestic and external sectors. Household consumption solidly increased, as households benefited from an employment growth rate that topped 60% in the first half of 2017. Amid this environment, robust household spending outweighed the negative consequences of higher inflation and a decrease in wage growth. Export levels increased amid strong global demand for energy and chemical products, as well as food, beverages, and consumer goods. Tourism revenues increased during the second half of the reporting period, which also benefited the Spanish economy.

The financials sector, which comprised about 41% of the Index on average during the reporting period, was the most significant contributor to the Index’s return. The sector primarily benefited from the Spanish banks industry. Despite ultra-low interest rates and capital constraints caused by bad loans, bank stocks increased after the ECB arranged a rescue of one bank by another, which investors felt could reduce competitive pressures in the industry and increase its overall profitability. The industrials sector also contributed to the Index’s return. Transportation companies were strong contributors to the sector, reflective of the growing confidence in Spain’s economic recovery. The utilities and energy sectors also contributed meaningfully to the Index’s return.

From a currency perspective, the euro, which appreciated about 6% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance, as returns on Spanish investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	42.54	%
Industrials	18.16
Utilities	10.58
Telecommunication Services	8.57
Consumer Discretionary	5.55
Energy	5.53
Information Technology	4.96
Health Care	2.41
Consumer Staples	1.70

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Banco Santander SA	19.07	%
Banco Bilbao Vizcaya Argentaria SA	10.15
Telefonica SA	8.57
Industria de Diseno Textil SA	5.56
Amadeus IT Group SA	4.96
Iberdrola SA	4.68
Repsol SA	4.58
CaixaBank SA	4.46
Abertis Infraestructuras SA	4.35
Aena SA	4.12

TOTAL	70.50	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI SWITZERLAND CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		15.90%		16.33%		16.13%		15.90%		16.33%		16.13%
5 Years		10.02%		10.16%		10.26%		61.21%		62.26%		62.99%
10 Years		5.25%		5.29%		4.99%		66.80%		67.41%		62.75%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,122.90	$	2.62	$	1,000.00	$	1,022.70	$	2.50		0.49%


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SWITZERLAND CAPPED ETF

The iShares MSCI Switzerland Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Swiss equities, as represented by the MSCI Switzerland 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 15.90%, net of fees, while the total return for the Index was 16.13%.

The Swiss economy grew modestly during the reporting period. Expansion was mainly due to domestic demand, which increased amid the nation’s lowest unemployment rate in nearly three years and increased consumer spending on healthcare and housing. The country’s export activity in the second quarter of 2017 was positive, attributable to higher sales of chemical and pharmaceutical products, metals, and watches, particularly to non-Eurozone countries such as Singapore, Hong Kong, and the U.S. The strength of the Swiss franc remained a concern, however, as it tends to reduce export growth and corporate profit margins. The healthcare sector, the Index’s largest sector, comprising about 31% of the Index on average, was the largest contributor to the Index’s return for the reporting period. Within the sector, the pharmaceuticals industry was the most significant contributor, as foreign demand helped increase Swiss pharmaceutical exports to record highs in the first half of 2017.

The financials sector was also a notable contributor to the Index’s return, as companies in the capital markets and insurance industries performed better than expected amid the negative interest rate policy of the Swiss central bank.

Other contributions to the Index’s return during the reporting period came from the consumer discretionary and consumer staples sectors. The former benefited from luxury jewelers and watchmakers, while, for the latter, food products companies helped the most.

From a currency perspective, the Swiss franc, which appreciated about 2% relative to the U.S. dollar during the reporting period, contributed to the Index’s performance, as returns on Swiss investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Health Care	30.22	%
Consumer Staples	21.94
Financials	20.18
Industrials	11.46
Consumer Discretionary	7.07
Materials	6.86
Telecommunication Services	1.42
Real Estate	0.85

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security

Percentage of

Total Investments*


Nestle SA Registered	19.68	%
Novartis AG Registered	13.18
Roche Holding AG	12.46
UBS Group AG	4.42
Cie. Financiere Richemont SA Class A Registered	4.31
ABB Ltd. Registered	4.25
Zurich Insurance Group AG	4.16
Credit Suisse Group AG Registered	3.34
Swiss Re AG	2.80
LafargeHolcim Ltd. Registered	2.58

TOTAL	71.18	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

About Fund Performance

Shareholder Expenses

Actual Expenses — The table provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. To estimate the expenses that you paid on your account over the period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number corresponding to your Fund under the heading entitled “Expenses Paid During Period.”

Hypothetical Example for Comparison Purposes — The table also provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EUROZONE ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.05%

AUSTRIA — 0.78%
Andritz AG		210,915	$	11,462,090
Erste Group Bank AG		862,804		36,410,318
OMV AG		435,150		24,982,813
Raiffeisen Bank International AG^a		416,682		13,653,031
Voestalpine AG		327,185		16,956,078

				103,464,330
BELGIUM — 3.62%
Ageas		552,470		25,622,989
Anheuser-Busch InBev SA/NV		2,196,292		259,863,681
Colruyt SA		176,885		9,815,682
Groupe Bruxelles Lambert SA		228,962		23,276,917
KBC Group NV		721,300		59,196,897
Proximus SADP		443,512		15,615,728
Solvay SA		214,897		31,131,570
Telenet Group Holding NV^a		154,333		10,434,873
UCB SA		365,053		25,124,915
Umicore SA		276,172		20,603,382

				480,686,634
FINLAND — 3.09%
Elisa OYJ		412,147		17,983,050
Fortum OYJ		1,297,316		23,259,065
Kone OYJ Class B		974,116		52,787,383
Metso OYJ		322,236		10,665,677
Neste OYJ		380,931		16,774,996
Nokia OYJ		16,800,343		103,964,249
Nokian Renkaat OYJ		332,657		14,044,054
Orion OYJ Class B		295,425		13,971,954
Sampo OYJ Class A		1,283,805		67,676,812
Stora Enso OYJ Class R		1,583,660		20,786,251
UPM-Kymmene OYJ		1,535,332		39,902,269
Wartsila OYJ Abp		426,671		29,396,235

				411,211,995
FRANCE — 31.82%
Accor SA		529,011		24,465,801
Aeroports de Paris		86,008		15,322,892
Air Liquide SA		1,119,645		136,508,957
Airbus SE		1,672,678		140,418,295
Alstom SA		443,128		15,739,185
Arkema SA		195,955		21,265,574
Atos SE		271,461		41,827,084
AXA SA		5,581,411		161,746,081


Security	Shares		Value
BNP Paribas SA		3,228,399	$	245,302,040
Bollore SA		2,477,108		11,491,516
Bouygues SA		611,363		27,689,319
Bureau Veritas SA		767,732		18,232,305
Capgemini SE		463,416		51,310,443
Carrefour SA		1,632,354		32,875,540
Casino Guichard Perrachon SA		158,605		9,006,826
Cie. de Saint-Gobain		1,440,370		78,901,371
Cie. Generale des Etablissements Michelin Class B		493,690		67,205,521
CNP Assurances		485,313		11,251,273
Credit Agricole SA		3,256,779		57,344,066
Danone SA		1,702,987		133,932,606
Dassault Aviation SA		7,016		10,704,414
Dassault Systemes SE		370,478		36,448,156
Edenred		636,294		17,187,444
Eiffage SA		210,881		21,762,176
Electricite de France SA		1,602,040		16,951,514
Engie SA		4,945,651		82,435,944
Essilor International SA		598,492		75,459,541
Eurazeo SA		121,730		10,056,922
Eurofins Scientific SE		31,622		18,049,542
Eutelsat Communications SA		502,591		14,588,699
Fonciere des Regions		96,594		9,539,805
Gecina SA		136,363		21,221,757
Groupe Eurotunnel SE Registered		1,335,603		15,902,796
Hermes International		90,766		47,945,146
ICADE		102,200		9,071,603
Iliad SA		76,021		19,608,229
Imerys SA		102,162		8,975,920
Ingenico Group SA		168,023		16,660,189
Ipsen SA		108,017		14,492,350
JCDecaux SA		216,935		7,093,922
Kering		218,132		81,768,963
Klepierre SA		638,232		25,685,167
L’Oreal SA		725,083		152,884,710
Lagardere SCA		342,970		11,005,358
Legrand SA		771,219		53,987,182
LVMH Moet Hennessy Louis Vuitton SE		802,722		210,196,859
Natixis SA		2,681,813		20,112,466
Orange SA		5,748,154		97,555,026
Pernod Ricard SA		613,151		83,686,319


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017


Security	Shares		Value
Peugeot SA		1,477,770	$	31,158,976
Publicis Groupe SA		584,632		39,410,394
Remy Cointreau SA		64,045		7,304,404
Renault SA		511,770		45,237,744
Rexel SA		875,440		13,062,168
Safran SA		902,763		87,570,095
Sanofi		3,275,001		317,955,214
Schneider Electric SE		1,620,545		130,493,028
SCOR SE		488,497		20,443,239
SEB SA		64,629		11,725,385
SES SA		1,053,231		24,048,228
Societe BIC SA		83,595		10,033,022
Societe Generale SA		2,206,789		123,390,274
Sodexo SA		264,724		30,853,004
STMicroelectronics NV		1,839,738		31,835,621
Suez		1,111,783		21,062,855
Thales SA		305,472		33,775,322
Total SA		6,816,131		352,065,013
Unibail-Rodamco SE		287,235		72,925,946
Valeo SA		686,481		45,851,695
Veolia Environnement SA		1,407,361		32,978,984
Vinci SA		1,450,562		133,395,676
Vivendi SA		2,962,967		67,899,463
Wendel SA		81,813		12,951,159
Zodiac Aerospace		587,507		16,976,721

				4,227,278,444
GERMANY — 27.30%
adidas AG		542,765		121,670,000
Allianz SE Registered		1,315,877		281,209,076
Axel Springer SE		137,323		8,489,689
BASF SE		2,646,530		256,027,300
Bayer AG Registered		2,381,950		304,429,156
Bayerische Motoren Werke AG		952,727		88,350,338
Beiersdorf AG		292,016		31,134,894
Brenntag AG		444,897		23,545,667
Commerzbank AG^a		3,059,862		37,979,346
Continental AG		316,701		71,370,438
Covestro AG^b		322,404		25,302,026
Daimler AG Registered		2,773,571		201,905,749
Deutsche Bank AG Registered^c		5,958,362		95,420,045
Deutsche Boerse AG		555,657		59,317,099
Deutsche Lufthansa AG Registered		678,434		16,994,848
Deutsche Post AG Registered		2,805,854		116,238,682


Security	Shares		Value
Deutsche Telekom AG Registered		9,427,325	$	169,915,430
Deutsche Wohnen SE Bearer		1,025,572		43,504,696
E.ON SE		6,362,251		71,820,910
Evonik Industries AG		469,814		15,209,633
Fraport AG Frankfurt Airport Services Worldwide		119,848		11,810,766
Fresenius Medical Care AG & Co. KGaA		619,706		57,836,299
Fresenius SE & Co. KGaA		1,195,812		101,068,672
GEA Group AG^c		528,802		23,261,620
Hannover Rueck SE		172,718		20,904,054
HeidelbergCement AG		428,089		41,047,204
Henkel AG & Co. KGaA		296,810		35,887,617
HOCHTIEF AG		55,728		9,809,051
HUGO BOSS AG		182,287		15,411,025
Infineon Technologies AG		3,266,237		75,218,116
Innogy SE^b		409,994		18,047,527
K+S AG Registered^c		550,262		13,097,208
KION Group AG		199,930		18,212,319
Lanxess AG		264,078		19,669,732
Linde AG		535,289		102,492,995
MAN SE		104,477		11,714,495
Merck KGaA		371,480		40,746,849
METRO AG^a,c		507,414		9,905,599
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		449,209		92,606,758
Osram Licht AG		242,411		19,880,195
ProSiebenSat.1 Media SE Registered		672,010		22,514,477
QIAGEN NV		624,296		20,006,680
RTL Group SA^a		112,474		8,524,668
RWE AG^a		1,500,217		37,375,489
SAP SE		2,831,600		296,587,573
Siemens AG Registered		2,204,357		287,759,327
Symrise AG		356,255		26,006,055
Telefonica Deutschland Holding AG		2,133,944		11,533,406
thyssenkrupp AG		1,055,989		31,625,158
United Internet AG Registered^c,d		353,512		20,951,468
Volkswagen AG		92,216		14,214,250
Vonovia SE		1,348,969		56,942,512


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017


Security	Shares		Value
Zalando SE^a,b,c		318,818	$	15,080,208

				3,627,584,394
IRELAND — 1.33%
Bank of Ireland Group PLC^a		2,628,787		21,877,545
CRH PLC		2,389,027		83,320,581
Irish Bank Resolution Corp. Ltd.^a,e		446,666		5
Kerry Group PLC Class A		461,636		42,935,659
Paddy Power Betfair PLC		231,152		20,278,709
Ryanair Holdings PLC^a		42,432		900,738
Ryanair Holdings PLC ADR^a		68,498		7,788,223

				177,101,460
ITALY — 7.29%
Assicurazioni Generali SpA		3,595,729		64,295,404
Atlantia SpA		1,307,392		41,967,657
CNH Industrial NV		2,949,966		33,423,740
Enel SpA		23,672,850		143,115,490
Eni SpA		7,344,565		114,999,775
EXOR NV		313,988		20,120,879
Ferrari NV		354,963		40,555,673
Fiat Chrysler Automobiles NV^a		3,081,663		46,346,913
Intesa Sanpaolo SpA		36,475,456		122,984,986
Leonardo SpA		873,382		14,755,144
Luxottica Group SpA		489,282		28,125,539
Mediobanca SpA		1,631,107		16,716,096
Poste Italiane SpA^b		1,527,593		11,087,623
Prysmian SpA		592,442		18,609,032
Recordati SpA		300,169		12,840,210
Saipem SpA^a,c		1,779,092		6,595,074
Snam SpA		6,801,880		33,074,814
Telecom Italia SpA/Milano^a		33,092,350		31,651,828
Tenaris SA		1,377,701		18,394,156
Terna Rete Elettrica Nazionale SpA		4,293,406		25,317,964
UniCredit SpA^a		5,764,346		117,121,666
UnipolSai Assicurazioni SpA		3,013,219		6,831,665

				968,931,328
NETHERLANDS — 11.41%
ABN AMRO Group NV^b		1,077,351		30,151,493
Aegon NV		5,075,558		28,940,638
AerCap Holdings NV^a		426,685		21,462,255
Akzo Nobel NV		728,219		66,491,842
Altice NV Class A^a,c		1,313,874		30,257,182
Altice NV Class B^a		312,606		7,219,439
ArcelorMittal^a		1,913,329		51,045,521


Security	Shares		Value
ASML Holding NV		1,075,282	$	166,831,489
Boskalis Westminster		261,609		8,537,686
Gemalto NV^c		234,154		12,637,313
Heineken Holding NV		290,208		28,616,634
Heineken NV		665,803		69,761,315
ING Groep NV		11,182,489		198,093,345
Koninklijke Ahold Delhaize NV		3,691,413		66,269,657
Koninklijke DSM NV		523,713		39,680,982
Koninklijke KPN NV		9,862,453		34,836,357
Koninklijke Philips NV		2,679,857		101,253,642
Koninklijke Vopak NV		216,589		9,155,503
NN Group NV		898,600		35,613,283
NXP Semiconductors NV^a		997,931		112,726,286
Randstad Holding NV		344,241		20,097,103
RELX NV		2,794,327		58,586,537
Unilever NV CVA		4,695,252		279,164,956
Wolters Kluwer NV		871,313		38,012,482

				1,515,442,940
PORTUGAL — 0.48%
EDP – Energias de Portugal SA		6,861,632		26,308,875
Galp Energia SGPS SA		1,338,162		22,129,977
Jeronimo Martins SGPS SA		770,015		15,343,285

				63,782,137
SPAIN — 10.73%
Abertis Infraestructuras SA		2,052,412		41,481,897
ACS Actividades de Construccion y Servicios SA		720,688		27,212,781
Aena SA^b		199,167		38,845,325
Amadeus IT Group SA		1,279,517		79,209,774
Banco Bilbao Vizcaya Argentaria SA		19,272,325		170,059,226
Banco de Sabadell SA		15,555,404		34,158,070
Banco Santander SA		46,332,958		300,710,270
Bankia SA		2,979,705		14,485,568
Bankinter SA		2,062,681		19,643,086
CaixaBank SA		10,405,303		53,664,788
Distribuidora Internacional de Alimentacion SA		1,873,442		11,840,509
Enagas SA		428,279		12,604,768
Endesa SA		914,714		22,038,248
Ferrovial SA		1,443,648		32,859,566
Gas Natural SDG SA		1,009,747		24,513,958
Grifols SA		868,699		24,528,900
Iberdrola SA		16,833,566		137,312,060
Industria de Diseno Textil SA		3,170,036		120,282,980


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017


Security	Shares		Value
International Consolidated Airlines Group SA		1,874,240	$	14,811,397
Mapfre SA		3,298,097		11,657,448
Red Electrica Corp. SA		825,969		18,525,319
Repsol SA		3,626,681		62,218,685
Siemens Gamesa Renewable Energy SA		720,385		10,744,358
Telefonica SA		13,150,790		141,637,170

				1,425,046,151
UNITED KINGDOM — 0.20%
Coca-Cola European Partners PLC		626,836		26,806,463

				26,806,463
TOTAL COMMON STOCKS
(Cost: $12,625,912,854)				13,027,336,276

PREFERRED STOCKS — 1.70%

GERMANY — 1.54%
Bayerische Motoren Werke AG, Preference Shares		158,457		13,128,860
Fuchs Petrolub SE, Preference Shares		199,411		11,071,619
Henkel AG & Co. KGaA, Preference Shares		515,650		68,999,455
Porsche Automobil Holding SE, Preference Shares		439,750		24,891,391
Schaeffler AG, Preference Shares		477,485		6,721,351
Volkswagen AG, Preference Shares		535,497		79,804,342

				204,617,018
ITALY — 0.16%
Intesa Sanpaolo SpA, Preference Shares		2,747,985		8,670,825
Telecom Italia SpA/Milano, Preference Shares		17,072,075		13,243,780

				21,914,605

TOTAL PREFERRED STOCKS
(Cost: $274,012,140)				226,531,623

SHORT-TERM INVESTMENTS — 0.44%

MONEY MARKET FUNDS — 0.44%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^f,g,h		57,577,483		57,594,756


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^f,g		489,933	$	489,933

				58,084,689

TOTAL SHORT-TERM INVESTMENTS
(Cost: $58,075,651)				58,084,689

TOTAL INVESTMENTS IN SECURITIES — 100.19%
(Cost: $12,958,000,645)ⁱ				13,311,952,588
Other Assets, Less Liabilities — (0.19)%				(25,736,664	)

NET ASSETS — 100.00%			$	13,286,215,924

ADR — American Depositary Receipts

^a	Non-income earning security.

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

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

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

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

^f	Affiliated issuer. See Schedule 1.

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

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

ⁱ

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $13,117,873,982. Net unrealized appreciation was $194,078,606, of which $1,110,203,700 represented gross unrealized appreciation on investments and $916,125,094 represented gross unrealized depreciation on investments.


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EUROZONE ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		19,587,492		37,989,991	^b		—		57,577,483	$	57,594,756	$	(2,246	)	$	9,038	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		326,934		162,999	^b		—		489,933		489,933		117			—		44,595

										$	58,084,689	$	(2,129	)	$	9,038	$	44,595

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Does not include income earned on the investment of securities lending cash collateral which is not direct income of the Fund and is reflected as a component of securities lending income in the statement of operations.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	13,027,336,271	$	—	$	5	$	13,027,336,276
Preferred stocks		226,531,623		—		—		226,531,623
Money market funds		58,084,689		—		—		58,084,689

Total	$	13,311,952,583	$	—	$	5	$	13,311,952,588

See notes to financial statements.


SCHEDULES OF INVESTMENTS			21

Schedule of Investments

iSHARES^® MSCI GERMANY ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 94.06%

AIR FREIGHT & LOGISTICS — 3.01%
Deutsche Post AG Registered		3,488,236	$	144,507,859

				144,507,859
AIRLINES — 0.44%
Deutsche Lufthansa AG Registered		842,240		21,098,206

				21,098,206
AUTO COMPONENTS — 1.85%
Continental AG		395,248		89,071,468

				89,071,468
AUTOMOBILES — 7.91%
Bayerische Motoren Werke AG		1,189,649		110,321,100
Daimler AG Registered		3,459,579		251,844,604
Volkswagen AG		117,035		18,039,871

				380,205,575
BANKS — 0.99%
Commerzbank AG^a		3,824,809		47,473,952

				47,473,952
CAPITAL MARKETS — 4.01%
Deutsche Bank AG Registered^b		7,425,992		118,923,371
Deutsche Boerse AG		693,457		74,027,426

				192,950,797
CHEMICALS — 11.87%
BASF SE		3,300,137		319,257,732
Covestro AG^c		400,176		31,405,514
Evonik Industries AG		588,042		19,037,115
K+S AG Registered^b		690,152		16,426,837
Lanxess AG		328,846		24,493,947
Linde AG		667,349		127,778,822
Symrise AG		443,103		32,345,823

				570,745,790
CONSTRUCTION & ENGINEERING — 0.25%
HOCHTIEF AG		69,458		12,225,759

				12,225,759
CONSTRUCTION MATERIALS — 1.07%
HeidelbergCement AG		534,691		51,268,709

				51,268,709
DIVERSIFIED TELECOMMUNICATION SERVICES — 4.71%
Deutsche Telekom AG Registered		11,763,033		212,013,568
Telefonica Deutschland Holding AG		2,677,229		14,469,719

				226,483,287


Security	Shares		Value
ELECTRICAL EQUIPMENT — 0.51%
Osram Licht AG		301,366	$	24,715,112

				24,715,112
FOOD & STAPLES RETAILING — 0.26%
METRO AG^a		642,570		12,544,078

				12,544,078
HEALTH CARE PROVIDERS & SERVICES — 4.12%
Fresenius Medical Care AG & Co. KGaA		772,748		72,119,496
Fresenius SE & Co. KGaA		1,491,984		126,100,793

				198,220,289
HOUSEHOLD PRODUCTS — 0.94%
Henkel AG & Co. KGaA		373,385		45,146,383

				45,146,383
INDUSTRIAL CONGLOMERATES — 7.46%
Siemens AG Registered		2,748,681		358,816,015

				358,816,015
INSURANCE — 10.23%
Allianz SE Registered		1,642,023		350,908,003
Hannover Rueck SE		216,656		26,221,869
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		556,939		114,815,854

				491,945,726
INTERNET & DIRECT MARKETING RETAIL — 0.39%
Zalando SE^a,b,c		400,557		18,946,493

				18,946,493
INTERNET SOFTWARE & SERVICES — 0.55%
United Internet AG Registered^b,d		441,943		26,192,476

				26,192,476
LIFE SCIENCES TOOLS & SERVICES — 0.51%
QIAGEN NV		770,958		24,706,726

				24,706,726
MACHINERY — 1.38%
GEA Group AG		657,062		28,903,685
KION Group AG		256,161		23,334,597
MAN SE		126,852		14,223,294

				66,461,576
MEDIA — 1.03%
Axel Springer SE		175,087		10,824,364
ProSiebenSat.1 Media SE Registered		837,180		28,048,198
RTL Group SA^a		139,660		10,585,159

				49,457,721


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2017


Security	Shares		Value
METALS & MINING — 0.82%
thyssenkrupp AG		1,321,737	$	39,583,879

				39,583,879
MULTI-UTILITIES — 3.28%
E.ON SE		7,908,644		89,277,524
Innogy SE^c		499,034		21,966,979
RWE AG^a		1,861,812		46,384,046

				157,628,549
PERSONAL PRODUCTS — 0.80%
Beiersdorf AG		362,179		38,615,708

				38,615,708
PHARMACEUTICALS — 8.95%
Bayer AG Registered		2,971,262		379,747,175
Merck KGaA		464,374		50,936,193

				430,683,368
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.61%
Deutsche Wohnen SE Bearer		1,274,316		54,056,400
Vonovia SE		1,693,315		71,478,003

				125,534,403
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.95%
Infineon Technologies AG		4,079,495		93,946,621

				93,946,621
SOFTWARE — 7.69%
SAP SE		3,531,259		369,871,287

				369,871,287
TEXTILES, APPAREL & LUXURY GOODS — 3.55%
adidas AG		676,553		151,660,855
HUGO BOSS AG		228,114		19,285,360

				170,946,215
TRADING COMPANIES & DISTRIBUTORS — 0.61%
Brenntag AG		555,125		29,379,358

				29,379,358
TRANSPORTATION INFRASTRUCTURE — 0.31%
Fraport AG Frankfurt Airport Services Worldwide		149,822		14,764,640

				14,764,640

TOTAL COMMON STOCKS
(Cost: $4,602,259,050)				4,524,138,025


Security	Shares		Value
PREFERRED STOCKS — 5.30%

AUTO COMPONENTS — 0.18%
Schaeffler AG, Preference Shares		595,179	$	8,378,079

				8,378,079
AUTOMOBILES — 3.05%
Bayerische Motoren Werke AG, Preference Shares		197,714		16,381,476
Porsche Automobil Holding SE, Preference Shares		550,186		31,142,455
Volkswagen AG, Preference Shares		666,816		99,374,622

				146,898,553
CHEMICALS — 0.29%
Fuchs Petrolub SE, Preference Shares		250,125		13,887,342

				13,887,342
HOUSEHOLD PRODUCTS — 1.78%
Henkel AG & Co. KGaA, Preference Shares		640,148		85,658,611

				85,658,611

TOTAL PREFERRED STOCKS
(Cost: $322,283,034)				254,822,585

SHORT-TERM INVESTMENTS — 1.46%

MONEY MARKET FUNDS — 1.46%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		69,810,722		69,831,666
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		589,306		589,306

				70,420,972

TOTAL SHORT-TERM INVESTMENTS
(Cost: $70,420,972)				70,420,972


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 100.82%
(Cost: $4,994,963,056)^h	$	4,849,381,582
Other Assets, Less Liabilities — (0.82)%		(39,482,086	)

NET ASSETS — 100.00%	$	4,809,899,496

^a	Non-income earning security.

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

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $5,074,662,756. Net unrealized depreciation was $225,281,174, of which $436,471,892 represented gross unrealized appreciation on investments and $661,753,066 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		69,810,722	^b		—		69,810,722	$	69,831,666	$	(9,056	)	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		33,859		555,447	^b		—		589,306		589,306		97			—		18,373

										$	70,420,972	$	(8,959	)	$	—	$	18,373

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:


Description	Number of contracts		Expiration date		Notional amount (000)		Value / unrealized appreciation (depreciation)
Long Contracts:
DAX Index		2,125		Sep 2017	$	30,484	$	(1,550,396	)


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GERMANY ETF

August 31, 2017

Schedule 3 — Fair Value Measurements


	Level 1			Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	4,524,138,025		$	—	$	—	$	4,524,138,025
Preferred stocks		254,822,585			—		—		254,822,585
Money market funds		70,420,972			—		—		70,420,972

Total	$	4,849,381,582		$	—	$	—	$	4,849,381,582

Derivative financial instruments^a:
Liabilities:
Futures contracts	$	(1,550,396	)	$	—	$	—	$	(1,550,396	)

Total	$	(1,550,396	)	$	—	$	—	$	(1,550,396	)

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 97.86%

AEROSPACE & DEFENSE — 2.05%
Leonardo SpA		1,020,041	$	17,232,840

				17,232,840
AUTOMOBILES — 9.18%
Ferrari NV		334,176		38,180,691
Fiat Chrysler Automobiles NV^a		2,591,796		38,979,519

				77,160,210
BANKS — 23.58%
Intesa Sanpaolo SpA		27,069,073		91,269,306
Mediobanca SpA		1,953,964		20,024,836
UniCredit SpA^a		4,279,599		86,954,143

				198,248,285
DIVERSIFIED FINANCIAL SERVICES — 2.78%
EXOR NV		365,043		23,392,570

				23,392,570
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.18%
Telecom Italia SpA/Milano^a		27,952,870		26,736,071

				26,736,071
ELECTRIC UTILITIES — 16.02%
Enel SpA		17,713,055		107,085,228
Terna Rete Elettrica Nazionale SpA		4,675,802		27,572,931

				134,658,159
ELECTRICAL EQUIPMENT — 2.47%
Prysmian SpA		661,609		20,781,618

				20,781,618
ENERGY EQUIPMENT & SERVICES — 3.22%
Saipem SpA^a		2,090,205		7,748,366
Tenaris SA		1,444,369		19,284,263

				27,032,629
INSURANCE — 7.50%
Assicurazioni Generali SpA		2,105,921		37,656,075
Poste Italiane SpA^b		1,973,164		14,321,681
UnipolSai Assicurazioni SpA		4,889,293		11,085,158

				63,062,914
MACHINERY — 4.11%
CNH Industrial NV		3,045,323		34,504,155

				34,504,155
OIL, GAS & CONSUMABLE FUELS — 14.18%
Eni SpA		5,410,221		84,712,192
Snam SpA		7,099,481		34,521,928

				119,234,120


Security	Shares		Value
PHARMACEUTICALS — 1.58%
Recordati SpA		309,405	$	13,235,295

				13,235,295
TEXTILES, APPAREL & LUXURY GOODS — 3.49%
Luxottica Group SpA		510,794		29,362,120

				29,362,120
TRANSPORTATION INFRASTRUCTURE — 4.52%
Atlantia SpA		1,184,445		38,021,023

				38,021,023
TOTAL COMMON STOCKS
(Cost: $816,852,478)				822,662,009

PREFERRED STOCKS — 2.00%

BANKS — 0.67%
Intesa Sanpaolo SpA, Preference Shares		1,791,276		5,652,084

				5,652,084
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.33%
Telecom Italia SpA/Milano, Preference Shares		14,335,370		11,120,762

				11,120,762

TOTAL PREFERRED STOCKS
(Cost: $17,698,041)				16,772,846

SHORT-TERM INVESTMENTS — 0.12%

MONEY MARKET FUNDS — 0.12%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		998,621		998,621

				998,621

TOTAL SHORT-TERM INVESTMENTS
(Cost: $998,621)				998,621


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ITALY CAPPED ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.98%
(Cost: $835,549,140)^e	$	840,433,476
Other Assets, Less Liabilities — 0.02%		196,951

NET ASSETS — 100.00%	$	840,630,427

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $862,509,205. Net unrealized depreciation was $22,075,729, of which $73,325,109 represented gross unrealized appreciation on investments and $95,400,838 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		14,628,660		—			(14,628,660	)^b		—	$	—	$	2,698	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		160,632		837,989	^b		—			998,621		998,621		26		—		2,965

											$	998,621	$	2,724	$	—	$	2,965

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	822,662,009	$	—	$	—	$	822,662,009
Preferred stocks		16,772,846		—		—		16,772,846
Money market funds		998,621		—		—		998,621

Total	$	840,433,476	$	—	$	—	$	840,433,476

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI SPAIN CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 100.53%

AIRLINES — 1.97%
International Consolidated Airlines Group SA		3,813,639	$	30,137,720

				30,137,720
BANKS — 41.18%
Banco Bilbao Vizcaya Argentaria SA		17,676,186		155,974,877
Banco de Sabadell SA		21,932,076		48,160,587
Banco Santander SA		45,156,706		293,076,156
Bankia SA		5,615,320		27,298,373
Bankinter SA		3,822,157		36,398,725
CaixaBank SA		13,283,984		68,511,430

				629,420,148
BIOTECHNOLOGY — 2.43%
Grifols SA		1,313,306		37,082,985

				37,082,985
CONSTRUCTION & ENGINEERING — 6.30%
ACS Actividades de Construccion y Servicios SA		1,129,208		42,638,270
Ferrovial SA		2,356,596		53,639,614

				96,277,884
DIVERSIFIED TELECOMMUNICATION SERVICES — 8.62%
Telefonica SA		12,229,692		131,716,723

				131,716,723
ELECTRIC UTILITIES — 8.17%
Endesa SA		1,386,270		33,399,470
Iberdrola SA		8,813,106		71,888,852
Red Electrica Corp. SA		873,821		19,598,572

				124,886,894
ELECTRICAL EQUIPMENT — 1.47%
Siemens Gamesa Renewable Energy SA		1,503,589		22,425,645

				22,425,645
FOOD & STAPLES RETAILING — 1.71%
Distribuidora Internacional de Alimentacion SA^a		4,139,080		26,159,771

				26,159,771
GAS UTILITIES — 2.46%
Gas Natural SDG SA		1,550,505		37,642,118

				37,642,118
INSURANCE — 1.58%
Mapfre SA		6,842,370		24,185,028

				24,185,028


Security	Shares		Value
IT SERVICES — 4.99%
Amadeus IT Group SA		1,231,641	$	76,245,963

				76,245,963
OIL, GAS & CONSUMABLE FUELS — 5.56%
Enagas SA		495,005		14,568,594
Repsol SA		4,103,988		70,407,278

				84,975,872
SPECIALTY RETAIL — 5.58%
Industria de Diseno Textil SA		2,249,043		85,337,074

				85,337,074
TRANSPORTATION INFRASTRUCTURE — 8.51%
Abertis Infraestructuras SA		3,305,546		66,809,353
Aena SA^b		324,748		63,338,512

				130,147,865

TOTAL COMMON STOCKS
(Cost: $1,548,878,599)				1,536,641,690

SHORT-TERM INVESTMENTS — 0.76%

MONEY MARKET FUNDS — 0.76%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		10,256,664		10,259,741
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		1,301,695		1,301,695

				11,561,436

TOTAL SHORT-TERM INVESTMENTS
(Cost: $11,561,436)				11,561,436

TOTAL INVESTMENTS IN SECURITIES — 101.29%
(Cost: $1,560,440,035)^f				1,548,203,126
Other Assets, Less Liabilities — (1.29)%				(19,669,635	)

NET ASSETS — 100.00%			$	1,528,533,491

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

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,588,881,971. Net unrealized depreciation was $40,678,845, of which $91,694,062 represented gross unrealized appreciation on investments and $132,372,907 represented gross unrealized depreciation on investments.


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SPAIN CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		61,979		10,194,685	^b		—		10,256,664	$	10,259,741	$	144	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		7,135		1,294,560	^b		—		1,301,695		1,301,695		1		—		5,263

										$	11,561,436	$	145	$	—	$	5,263

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,536,641,690	$	—	$	—	$	1,536,641,690
Money market funds		11,561,436		—		—		11,561,436

Total	$	1,548,203,126	$	—	$	—	$	1,548,203,126

See notes to financial statements.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.66%

BUILDING PRODUCTS — 1.71%
Geberit AG Registered		47,311	$	21,568,105

				21,568,105
CAPITAL MARKETS — 10.26%
Credit Suisse Group AG Registered		2,831,569		41,545,393
Julius Baer Group Ltd.		305,216		17,023,494
Partners Group Holding AG		24,259		15,701,455
UBS Group AG		3,338,440		54,887,983

				129,158,325
CHEMICALS — 4.23%
EMS-Chemie Holding AG Registered		13,847		9,445,066
Givaudan SA Registered		11,610		23,679,084
Sika AG Bearer		2,842		20,109,886

				53,234,036
CONSTRUCTION MATERIALS — 2.54%
LafargeHolcim Ltd. Registered		546,272		32,031,662

				32,031,662
DIVERSIFIED FINANCIAL SERVICES — 0.55%
Pargesa Holding SA Bearer		85,233		6,891,367

				6,891,367
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.40%
Swisscom AG Registered		35,050		17,638,064

				17,638,064
ELECTRICAL EQUIPMENT — 4.19%
ABB Ltd. Registered		2,283,322		52,746,877

				52,746,877
FOOD PRODUCTS — 21.64%
Barry Callebaut AG Registered		4,850		6,964,620
Chocoladefabriken Lindt & Spruengli AG Participation Certificates		1,731		9,906,868
Chocoladefabriken Lindt & Spruengli AG Registered		161		11,176,181
Nestle SA Registered		2,888,768		244,538,269

				272,585,938
HEALTH CARE EQUIPMENT & SUPPLIES — 1.87%
Sonova Holding AG Registered		76,973		12,983,687
Straumann Holding AG Registered		16,510		10,557,123

				23,540,810
INSURANCE — 9.11%
Baloise Holding AG Registered		76,326		12,127,971
Swiss Life Holding AG Registered		44,789		15,995,406


Security	Shares		Value
Swiss Re AG		385,213	$	34,813,474
Zurich Insurance Group AG		173,333		51,747,386

				114,684,237
LIFE SCIENCES TOOLS & SERVICES — 1.95%
Lonza Group AG Registered		97,094		24,531,138

				24,531,138
MACHINERY — 1.67%
Schindler Holding AG Participation Certificates		60,182		12,863,041
Schindler Holding AG Registered		38,829		8,141,565

				21,004,606
MARINE — 1.14%
Kuehne + Nagel International AG Registered		79,270		14,327,991

				14,327,991
PHARMACEUTICALS — 26.00%
Novartis AG Registered		1,945,630		163,789,248
Roche Holding AG		610,815		154,769,461
Vifor Pharma AG		87,570		8,829,899

				327,388,608
PROFESSIONAL SERVICES — 2.60%
Adecco Group AG Registered		223,105		16,135,065
SGS SA Registered		7,448		16,608,808

				32,743,873
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.83%
Swiss Prime Site AG Registered		116,080		10,484,645

				10,484,645
SPECIALTY RETAIL — 0.74%
Dufry AG Registered^a		60,372		9,285,100

				9,285,100
TEXTILES, APPAREL & LUXURY GOODS — 6.23%
Cie. Financiere Richemont SA Class A Registered		599,474		53,491,046
Swatch Group AG (The) Bearer		42,068		16,757,160
Swatch Group AG (The) Registered		106,695		8,254,707

				78,502,913

TOTAL COMMON STOCKS
(Cost: $1,238,439,696)				1,242,348,295


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SWITZERLAND CAPPED ETF

August 31, 2017


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.05%

MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^b,c		609,567	$	609,567

				609,567

TOTAL SHORT-TERM INVESTMENTS
(Cost: $609,567)				609,567


	Value
TOTAL INVESTMENTS IN SECURITIES — 98.71%	$	1,242,957,862
(Cost: $1,239,049,263)^d
Other Assets, Less Liabilities — 1.29%		16,299,801

NET ASSETS — 100.00%	$	1,259,257,663

^a	Non-income earning security.

^b	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,249,460,071. Net unrealized depreciation was $6,502,209, of which $83,840,333 represented gross unrealized appreciation on investments and $90,342,542 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		4,549,701		—			(4,549,701	)^b		—	$	—	$	2,101	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		51,921		557,646	^b		—			609,567		609,567		—		—		21,271

											$	609,567	$	2,101	$	—	$	21,271

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,242,348,295	$	—	$	—	$	1,242,348,295
Money market funds		609,567		—		—		609,567

Total	$	1,242,957,862	$	—	$	—	$	1,242,957,862

See notes to financial statements.


SCHEDULES OF INVESTMENTS			31

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


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

ASSETS
Investments in securities, at cost:
Unaffiliated	$	12,899,924,994		$	4,924,542,084		$	834,550,519
Affiliated (Note 2)		58,075,651			70,420,972			998,621

Total cost of investments in securities	$	12,958,000,645		$	4,994,963,056		$	835,549,140

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	13,253,867,899		$	4,778,960,610		$	839,434,855
Affiliated (Note 2)		58,084,689			70,420,972			998,621
Foreign currency, at value^b		13,350,004			7,355,329			614,079
Foreign currency pledged to broker for futures contracts, at value^b		—			3,881,772			—
Cash		40,000			—			—
Receivables:
Investment securities sold		30,144,142			22,567,773			11,360,727
Dividends and interest		4,341,528			27,143			680
Capital shares sold		—			—			202,127
Tax reclaims		17,201,312			23,295,580			—
Foreign withholding tax claims (Note 8)		4,043,205			—			—

Total Assets		13,381,072,779			4,906,509,179			852,611,089


LIABILITIES
Payables:
Investment securities purchased		31,804,018			23,106,865			11,660,502
Collateral for securities on loan (Note 1)		57,587,964			69,840,663			—
Capital shares redeemed		—			127,225			—
Futures variation margin		—			1,550,396			—
Professional fees (Note 8)		40,432			—			—
Investment advisory fees (Note 2)		5,424,441			1,984,534			320,160

Total Liabilities		94,856,855			96,609,683			11,980,662


NET ASSETS	$	13,286,215,924		$	4,809,899,496		$	840,630,427


Net assets consist of:
Paid-in capital	$	13,410,843,727		$	5,155,615,683		$	1,069,525,658
Undistributed net investment income		39,606,657			11,828,547			1,810,109
Accumulated net realized loss		(519,745,406	)		(212,047,338	)		(235,594,712	)
Net unrealized appreciation (depreciation)		355,510,946			(145,497,396	)		4,889,372

NET ASSETS	$	13,286,215,924		$	4,809,899,496		$	840,630,427


Shares outstanding^c		318,500,000			156,600,000			27,825,000	^d


Net asset value per share	$	41.71		$	30.71		$	30.21	^d

^a	Securities on loan with values of $55,007,154, $66,582,730 and $ —, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker for futures contracts: $13,179,255, $11,108,942 and $609,043, respectively.

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

^d	Shares outstanding and net asset value per share reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Spain Capped ETF			iShares MSCI Switzerland Capped ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	1,548,878,599		$	1,238,439,696
Affiliated (Note 2)		11,561,436			609,567

Total cost of investments in securities	$	1,560,440,035		$	1,239,049,263

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	1,536,641,690		$	1,242,348,295
Affiliated (Note 2)		11,561,436			609,567
Foreign currency, at value^b		972,456			498,655
Receivables:
Investment securities sold		35,253,025			5,328,072
Due from custodian (Note 4)		3,143,236			—
Dividends and interest		3,716			706
Tax reclaims		163,483			16,460,233

Total Assets		1,587,739,042			1,265,245,528


LIABILITIES
Payables:
Investment securities purchased		48,334,156			5,475,947
Collateral for securities on loan (Note 1)		10,259,596			—
Investment advisory fees (Note 2)		611,799			511,918

Total Liabilities		59,205,551			5,987,865


NET ASSETS	$	1,528,533,491		$	1,259,257,663


Net assets consist of:
Paid-in capital	$	1,725,159,411		$	1,327,263,770
Undistributed (distributions in excess of) net investment income		9,343,831			(369,308	)
Accumulated net realized loss		(193,739,741	)		(71,485,412	)
Net unrealized appreciation (depreciation)		(12,230,010	)		3,848,613

NET ASSETS	$	1,528,533,491		$	1,259,257,663


Shares outstanding^c		45,450,000			36,750,000


Net asset value per share	$	33.63		$	34.27

^a	Securities on loan with values of $9,678,000 and $ —, respectively. See Note 1.

^b	Cost of foreign currency: $967,256 and $492,153, respectively.

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

See notes to financial statements.


FINANCIAL STATEMENTS			33

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


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

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	268,906,708		$	110,229,901		$	17,275,840
Dividends — affiliated (Note 2)		44,595			18,373			2,965
Miscellaneous income		48,171			—			—
Securities lending income — affiliated — net (Note 2)		1,778,062			194,790			92,308
Non-cash dividends — unaffiliated		25,509,129			—			—

Total investment income		296,286,665			110,443,064			17,371,113


EXPENSES
Investment advisory fees (Note 2)		46,002,461			20,888,860			2,740,989
Proxy fees		227,864			102,578			12,588
Professional fees (Note 8)		16,921			—			—

Total expenses		46,247,246			20,991,438			2,753,577

Net investment income		250,039,419			89,451,626			14,617,536


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(89,475,613	)		(44,627,794	)		(59,844,908	)
Investments — affiliated (Note 2)		(2,246	)		(9,056	)		2,698
In-kind redemptions — unaffiliated		(21,163,911	)		119,852,645			15,443,907
Futures contracts		—			5,815,831			—
Foreign currency transactions		3,109,868			963,220			(263,288	)
Realized gain distributions from affiliated funds		117			97			26

Net realized gain (loss)		(107,531,785	)		81,994,943			(44,661,565	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		1,979,399,835			641,599,657			222,000,159
Investments — affiliated (Note 2)		9,038			—			—
Futures contracts		—			(3,577,429	)		—
Translation of assets and liabilities in foreign currencies		1,842,017			1,949,104			5,218

Net change in unrealized appreciation/depreciation		1,981,250,890			639,971,332			222,005,377

Net realized and unrealized gain		1,873,719,105			721,966,275			177,343,812

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,123,758,524		$	811,417,901		$	191,961,348

^a	Net of foreign withholding tax of $38,237,983, $15,988,544 and $2,869,734, respectively.

See notes to financial statements.


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Spain Capped ETF			iShares MSCI Switzerland Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	21,640,607		$	29,207,979
Dividends — affiliated (Note 2)		5,263			21,271
Securities lending income — affiliated — net (Note 2)		170,247			44,579
Non-cash dividends — unaffiliated		12,507,166			—

Total investment income		34,323,283			29,273,829


EXPENSES
Investment advisory fees (Note 2)		4,632,509			5,322,718
Proxy fees		27,036			24,153

Total expenses		4,659,545			5,346,871

Net investment income		29,663,738			23,926,958


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(78,244,658	)		13,177,537
Investments — affiliated (Note 2)		144			2,101
In-kind redemptions — unaffiliated		656,425			17,133,923
Foreign currency transactions		648,061			(10,194	)
Realized gain distributions from affiliated funds		1			—

Net realized gain (loss)		(76,940,027	)		30,303,367

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		304,897,126			106,435,804
Translation of assets and liabilities in foreign currencies		11,817			448,170

Net change in unrealized appreciation/depreciation		304,908,943			106,883,974

Net realized and unrealized gain		227,968,916			137,187,341

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	257,632,654		$	161,114,299

^a	Net of foreign withholding tax of $3,792,832 and $5,392,231, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			35

Statements of Changes in Net Assets

iSHARES^®, INC.



	iShares MSCI Eurozone ETF						iShares MSCI Germany ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	250,039,419		$	313,780,162		$	89,451,626		$	96,825,243
Net realized gain (loss)		(107,531,785	)		(353,696,400	)		81,994,943			(202,576,200	)
Net change in unrealized appreciation/depreciation		1,981,250,890			(558,972,719	)		639,971,332			36,790,914

Net increase (decrease) in net assets resulting from operations		2,123,758,524			(598,888,957	)		811,417,901			(68,960,043	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(251,508,888	)		(293,025,178	)		(101,663,169	)		(97,625,093	)

Total distributions to shareholders		(251,508,888	)		(293,025,178	)		(101,663,169	)		(97,625,093	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		5,075,719,442			5,702,626,726			1,344,475,553			800,372,366
Cost of shares redeemed		(1,955,344,002	)		(6,651,737,571	)		(841,232,745	)		(3,643,941,594	)

Net increase (decrease) in net assets from capital share transactions		3,120,375,440			(949,110,845	)		503,242,808			(2,843,569,228	)

INCREASE (DECREASE) IN NET ASSETS		4,992,625,076			(1,841,024,980	)		1,212,997,540			(3,010,154,364	)

NET ASSETS
Beginning of year		8,293,590,848			10,134,615,828			3,596,901,956			6,607,056,320

End of year	$	13,286,215,924		$	8,293,590,848		$	4,809,899,496		$	3,596,901,956

Undistributed net investment income included in net assets at end of year	$	39,606,657		$	25,909,364		$	11,828,547		$	—


SHARES ISSUED AND REDEEMED
Shares sold		130,800,000			161,500,000			47,700,000			32,400,000
Shares redeemed		(54,800,000	)		(200,200,000	)		(28,500,000	)		(145,800,000	)

Net increase (decrease) in shares outstanding		76,000,000			(38,700,000	)		19,200,000			(113,400,000	)

See notes to financial statements.


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC



	iShares MSCI Italy Capped ETF						iShares MSCI Spain Capped ETF
	Year ended August 31, 2017^a			Year ended August 31, 2016^a			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	14,617,536		$	22,596,515		$	29,663,738		$	38,911,804
Net realized loss		(44,661,565	)		(168,394,983	)		(76,940,027	)		(282,574,356	)
Net change in unrealized appreciation/depreciation		222,005,377			(101,942,406	)		304,908,943			22,989,683

Net increase (decrease) in net assets resulting from operations		191,961,348			(247,740,874	)		257,632,654			(220,672,869	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(15,689,552	)		(22,347,848	)		(28,748,503	)		(41,241,786	)
Return of capital		—			(780,522	)		—			—

Total distributions to shareholders		(15,689,552	)		(23,128,370	)		(28,748,503	)		(41,241,786	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		478,934,035			265,361,545			827,558,231			42,497,240
Cost of shares redeemed		(275,606,026	)		(610,898,923	)		(127,852,787	)		(846,729,289	)

Net increase (decrease) in net assets from capital share transactions		203,328,009			(345,537,378	)		699,705,444			(804,232,049	)

INCREASE (DECREASE) IN NET ASSETS		379,599,805			(616,406,622	)		928,589,595			(1,066,146,704	)

NET ASSETS
Beginning of year		461,030,622			1,077,437,244			599,943,896			1,666,090,600

End of year	$	840,630,427		$	461,030,622		$	1,528,533,491		$	599,943,896

Undistributed net investment income included in net assets at end of year	$	1,810,109		$	—		$	9,343,831		$	7,780,534


SHARES ISSUED AND REDEEMED
Shares sold		20,625,000			8,925,000			27,300,000			1,500,000
Shares redeemed		(13,200,000	)		(25,050,000	)		(4,500,000	)		(30,975,000	)

Net increase (decrease) in shares outstanding		7,425,000			(16,125,000	)		22,800,000			(29,475,000	)

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

See notes to financial statements.


FINANCIAL STATEMENTS			37

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares MSCI Switzerland Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	23,926,958		$	30,735,996
Net realized gain (loss)		30,303,367			(11,354,929	)
Net change in unrealized appreciation/depreciation		106,883,974			(51,909,400	)

Net increase (decrease) in net assets resulting from operations		161,114,299			(32,528,333	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(25,105,668	)		(29,917,479	)

Total distributions to shareholders		(25,105,668	)		(29,917,479	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		196,663,250			179,880,379
Cost of shares redeemed		(165,149,192	)		(225,863,531	)

Net increase (decrease) in net assets from capital share transactions		31,514,058			(45,983,152	)

INCREASE (DECREASE) IN NET ASSETS		167,522,689			(108,428,964	)

NET ASSETS
Beginning of year		1,091,734,974			1,200,163,938

End of year	$	1,259,257,663		$	1,091,734,974

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(369,308	)	$	510,619


SHARES ISSUED AND REDEEMED
Shares sold		5,875,000			5,875,000
Shares redeemed		(5,250,000	)		(7,375,000	)

Net increase (decrease) in shares outstanding		625,000			(1,500,000	)

See notes to financial statements.


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Eurozone ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	34.20		$	36.04		$	39.98		$	34.64		$	29.09

Income from investment operations:
Net investment income^a		0.99			0.92	^b		0.96			1.18			0.92
Net realized and unrealized gain (loss)^c		7.38			(1.84	)		(3.95	)		5.10			5.55

Total from investment operations		8.37			(0.92	)		(2.99	)		6.28			6.47

Less distributions from:
Net investment income		(0.86	)		(0.92	)		(0.95	)		(0.94	)		(0.92	)

Total distributions		(0.86	)		(0.92	)		(0.95	)		(0.94	)		(0.92	)

Net asset value, end of year	$	41.71		$	34.20		$	36.04		$	39.98		$	34.64


Total return		24.72	%		(2.53	)%^b		(7.62	)%		18.02	%		22.43	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	13,286,216		$	8,293,591		$	10,134,616		$	8,702,637		$	3,539,980
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 8)		0.49	%		0.48	%		n/a			n/a			n/a
Ratio of net investment income to average net assets		2.63	%		2.69	%^b		2.50	%		2.89	%		2.74	%
Portfolio turnover rate^d		4	%		4	%		5	%		7	%		5	%

^a	Based on average shares outstanding throughout each period.

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

•

Net investment income per share by $0.02.

•

Total return by 0.08%.

•

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

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL STATEMENTS			39

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Germany ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	26.18		$	26.34		$	28.97		$	25.61		$	21.34

Income from investment operations:
Net investment income^a		0.59			0.49			0.58			0.59			0.46
Net realized and unrealized gain (loss)^b		4.54			(0.04	)		(2.70	)		3.40			4.24

Total from investment operations		5.13			0.45			(2.12	)		3.99			4.70

Less distributions from:
Net investment income		(0.60	)		(0.61	)		(0.51	)		(0.63	)		(0.43	)

Total distributions		(0.60	)		(0.61	)		(0.51	)		(0.63	)		(0.43	)

Net asset value, end of year	$	30.71		$	26.18		$	26.34		$	28.97		$	25.61


Total return		19.63	%		1.81	%		(7.50	)%		15.41	%		22.11	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	4,809,899		$	3,596,902		$	6,607,056		$	4,797,434		$	4,655,875
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		2.08	%		1.90	%		2.03	%		1.95	%		1.88	%
Portfolio turnover rate^c		3	%		3	%		3	%		6	%		4	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Italy Capped ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	22.60		$	29.50		$	32.03		$	26.12		$	23.57

Income from investment operations:
Net investment income^b		0.57			0.66			0.70			0.82			0.72
Net realized and unrealized gain (loss)^c		7.76			(6.82	)		(2.49	)		5.77			2.45

Total from investment operations		8.33			(6.16	)		(1.79	)		6.59			3.17

Less distributions from:
Net investment income		(0.72	)		(0.72	)		(0.74	)		(0.68	)		(0.60	)
Return of capital		—			(0.02	)		—			—			(0.02	)

Total distributions		(0.72	)		(0.74	)		(0.74	)		(0.68	)		(0.62	)

Net asset value, end of year	$	30.21		$	22.60		$	29.50		$	32.03		$	26.12


Total return		37.37	%		(20.97	)%		(5.66	)%		25.20	%		13.58	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	840,630		$	461,031		$	1,077,437		$	1,556,860		$	717,122
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		2.59	%		2.54	%		2.34	%		2.49	%		2.78	%
Portfolio turnover rate^d		18	%		16	%		22	%		24	%		45	%

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

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL STATEMENTS			41

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Spain Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	26.49		$	31.96		$	40.61		$	30.44		$	26.28

Income from investment operations:
Net investment income^a		0.94			1.00			1.32			1.80			1.33
Net realized and unrealized gain (loss)^b		7.19			(5.40	)		(8.35	)		9.53			4.07

Total from investment operations		8.13			(4.40	)		(7.03	)		11.33			5.40

Less distributions from:
Net investment income		(0.99	)		(1.07	)		(1.62	)		(1.16	)		(1.24	)

Total distributions		(0.99	)		(1.07	)		(1.62	)		(1.16	)		(1.24	)

Net asset value, end of year	$	33.63		$	26.49		$	31.96		$	40.61		$	30.44


Total return		31.48	%		(13.82	)%		(17.63	)%		37.39	%		20.88	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,528,533		$	599,944		$	1,666,091		$	2,473,038		$	417,778
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		3.10	%		3.53	%		3.70	%		4.48	%		4.45	%
Portfolio turnover rate^c		16	%		9	%		15	%		15	%		24	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Switzerland Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	30.22		$	31.90		$	33.64		$	29.36		$	23.85

Income from investment operations:
Net investment income^a		0.69			0.81			0.83			0.80			0.67
Net realized and unrealized gain (loss)^b		4.11			(1.70	)		(1.77	)		4.27			5.44

Total from investment operations		4.80			(0.89	)		(0.94	)		5.07			6.11

Less distributions from:
Net investment income		(0.75	)		(0.79	)		(0.80	)		(0.79	)		(0.60	)

Total distributions		(0.75	)		(0.79	)		(0.80	)		(0.79	)		(0.60	)

Net asset value, end of year	$	34.27		$	30.22		$	31.90		$	33.64		$	29.36


Total return		15.90	%		(2.76	)%		(2.92	)%		17.21	%		25.71	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,259,258		$	1,091,735		$	1,200,164		$	1,072,157		$	902,860
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		2.18	%		2.68	%		2.49	%		2.41	%		2.38	%
Portfolio turnover rate^c		13	%		6	%		7	%		5	%		13	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL STATEMENTS			43

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF		Diversification Classification
MSCI Eurozone		Diversified
MSCI Germany		Non-diversified
MSCI Italy Capped		Non-diversified
MSCI Spain Capped		Non-diversified
MSCI Switzerland Capped		Non-diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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

•

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

•


NOTES TO FINANCIAL STATEMENTS			45

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value 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 values determined for financial instruments are based on the pricing transparency of the financial instruments and are not necessarily an indication of the risks associated with investing in those securities.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			47

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Eurozone
Goldman Sachs & Co.	$	1,526,182	$	1,526,182	$	—
Morgan Stanley & Co. LLC		42,095,238		42,095,238		—
State Street Bank & Trust Company		7,850,371		7,850,371		—
UBS AG		3,535,363		3,529,114		(6,249	)

	$	55,007,154	$	55,000,905	$	(6,249	)

MSCI Germany
Credit Suisse Securities (USA) LLC	$	5,227,163	$	5,227,163	$	—
Goldman Sachs & Co.		3,460,164		3,460,164		—
Morgan Stanley & Co. LLC		43,226,851		43,226,851		—
State Street Bank & Trust Company		14,668,552		14,668,552		—

	$	66,582,730	$	66,582,730	$	—

MSCI Spain Capped
Morgan Stanley & Co. LLC	$	9,678,000	$	9,678,000	$	—

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

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


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

Break level added or amended effective July 1, 2017.


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Eurozone	$	420,546
MSCI Germany		55,921
MSCI Italy Capped		22,778
MSCI Spain Capped		44,670
MSCI Switzerland Capped		12,899

For the year ended August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Eurozone	$	32,483,149	$	32,053,832
MSCI Germany		10,960,175		8,747,614
MSCI Italy Capped		17,070,650		15,636,016
MSCI Spain Capped		22,565,872		17,961,307
MSCI Switzerland Capped		42,184,408		16,731,878


NOTES TO FINANCIAL STATEMENTS			49

Notes to Financial Statements (Continued)

iSHARES^®, INC.

It is possible that, from time to time, BlackRock and/or funds or other accounts 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, 2017, 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		13	%
MSCI Germany		1		16	%

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
MSCI Eurozone	$	625,139,044	$	333,900,736
MSCI Germany		236,258,732		138,590,140
MSCI Italy Capped		103,596,757		107,459,025
MSCI Spain Capped		185,519,032		156,744,297
MSCI Switzerland Capped		135,464,757		138,611,441

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Eurozone	$	4,753,914,667	$	1,916,011,413
MSCI Germany		1,233,707,047		822,064,401
MSCI Italy Capped		451,672,925		266,593,760
MSCI Spain Capped		788,493,196		119,916,770
MSCI Switzerland Capped		187,993,815		158,245,156


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

4.	*CAPITAL SHARE TRANSACTIONS*

The Board authorized a one-for-two reverse stock split for the iShares MSCI Italy Capped ETF, effective after the close of trading on November 4, 2016. The impact of the stock split was to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the reverse stock split.

5.	*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 financial instrument at a set price on a future 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.

Pursuant to the contract, the fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in notional value of the contract. Such receipts or payments are known as margin variation and are recorded by the fund as unrealized appreciation or depreciation. When the contract is closed, the fund records a realized gain or loss equal to the difference between the notional value of the contract at the time it was opened and the notional value 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 also involves the risk of an imperfect correlation in the movements in the price of futures contracts and the assets underlying such contracts.


NOTES TO FINANCIAL STATEMENTS			51

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the value of futures contracts held by the iShares MSCI Germany ETF as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Liabilities
Equity contracts:
Variation margin/Net assets consist of — net unrealized appreciation (depreciation)^a	$	1,550,396

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

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI Germany ETF during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	5,815,831	$	(3,577,429	)

The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI Germany ETF for the year ended August 31, 2017:


Average value of contracts purchased	$	25,230,168

6.	*PRINCIPAL RISKS*

MARKET RISK


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

CREDIT RISK

7.	*INCOME TAX INFORMATION*


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (Continued)

iSHARES^®, INC.

August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, the expiration of capital loss carryforwards, distributions paid in excess of taxable income, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Eurozone	$	(82,145,714	)	$	15,166,762	$	66,978,952
MSCI Germany		73,561,932			24,040,090		(97,602,022	)
MSCI Italy Capped		(7,670,214	)		2,882,125		4,788,089
MSCI Spain Capped		(15,818,812	)		648,062		15,170,750
MSCI Switzerland Capped		11,015,648			298,783		(11,314,431	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
MSCI Eurozone
Ordinary income	$	251,508,888	$	293,025,178


MSCI Germany
Ordinary income	$	101,663,169	$	97,625,093


MSCI Italy Capped
Ordinary income	$	15,689,552	$	22,347,848
Return of capital		—		780,522

	$	15,689,552	$	23,128,370


MSCI Spain Capped
Ordinary income	$	28,748,503	$	41,241,786


MSCI Switzerland Capped
Ordinary income	$	25,105,668	$	29,917,479

As of August 31, 2017, 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 Eurozone	$	38,174,397	$	(362,189,568	)	$	199,387,368		$	(124,627,803	)
MSCI Germany		11,828,547		(133,898,034	)		(223,646,700	)		(345,716,187	)
MSCI Italy Capped		1,810,109		(208,634,647	)		(22,070,693	)		(228,895,231	)
MSCI Spain Capped		9,343,831		(165,297,805	)		(40,671,946	)		(196,625,920	)
MSCI Switzerland Capped		—		(61,443,912	)		(6,562,195	)		(68,006,107	)

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


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2017, the following Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2018		Expiring 2019		Total
MSCI Eurozone	$	263,923,287	$	68,035,542	$	30,230,739	$	362,189,568
MSCI Germany		73,191,131		28,490,949		32,215,954		133,898,034
MSCI Italy Capped		181,005,358		18,169,627		9,459,662		208,634,647
MSCI Spain Capped		141,557,230		15,120,672		8,619,903		165,297,805
MSCI Switzerland Capped		31,918,774		22,569,380		6,955,758		61,443,912

Must be utilized prior to losses subject to expiration.

8.	*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 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.

9.	*LEGAL PROCEEDINGS*


NOTES TO FINANCIAL STATEMENTS			55

Notes to Financial Statements (Continued)

iSHARES^®, INC.

10.

SUBSEQUENT EVENTS


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

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

iShares MSCI Italy Capped ETF, iShares MSCI Spain Capped ETF and

iShares MSCI Switzerland Capped ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Eurozone ETF, iShares MSCI Germany ETF, iShares MSCI Italy Capped ETF, iShares MSCI Spain Capped ETF and iShares MSCI Switzerland Capped ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			57

Tax Information (Unaudited)

iSHARES^® , INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
MSCI Eurozone	$	335,447,139
MSCI Germany		148,261,495
MSCI Italy Capped		23,173,900
MSCI Spain Capped		37,867,968
MSCI Switzerland Capped		34,329,631

For the fiscal year ended August 31, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Eurozone	$	344,620,471	$	38,224,687
MSCI Germany		149,306,420		15,988,544
MSCI Italy Capped		23,292,583		2,871,355
MSCI Spain Capped		37,940,605		3,792,112
MSCI Switzerland Capped		34,600,207		5,390,443


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^® INC.

I. iShares MSCI Eurozone ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Expenses and Performance of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of 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.

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, 2016, to that of relevant comparison funds for the same periods.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			59

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

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 any additional detailed information requested by the Boards, 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 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Costs of Services Provided to Fund and Profits Realized by BFA and Affiliates — The Board reviewed information about the profitability of the Fund to BlackRock, 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, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA 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 considered.


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for 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.

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

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			61

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

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

II. iShares MSCI Germany ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

The Board also noted that the investment advisory fee rate and overall expenses (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.

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 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			63

Board Review and Approval of Investment Advisory

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iSHARES^® INC.

BFA’s profit margin as reflected in the Fund’s profitability analysis and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Fund and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Fund to provide for 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.

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


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Italy Capped ETF, iShares MSCI Spain Capped ETF and iShares MSCI Switzerland Capped ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			65

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Funds, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

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 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			67

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^® INC.

provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different 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 that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
MSCI Eurozone	$	0.860852	$	—	$	—	$	0.860852		100	%		—	%		—	%		100	%
MSCI Spain Capped		0.992706		—		—		0.992706		100			—			—			100
MSCI Switzerland Capped		0.746434		—		—		0.746434		100			—			—			100

Premium/Discount Information


SUPPLEMENTAL INFORMATION			69

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Eurozone ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		7		0.51
Greater than 1.0% and Less than 1.5%		29		2.10
Greater than 0.5% and Less than 1.0%		176		12.73
Greater than 0.0% and Less than 0.5%		598		43.24
At NAV		29		2.10
Less than 0.0% and Greater than –0.5%		419		30.30
Less than –0.5% and Greater than –1.0%		99		7.16
Less than –1.0% and Greater than –1.5%		15		1.08
Less than –1.5% and Greater than –2.0%		6		0.43
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –2.5%		1		0.07

		1,383		100.00	%


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Germany ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		6		0.43
Greater than 1.0% and Less than 1.5%		29		2.10
Greater than 0.5% and Less than 1.0%		138		9.98
Greater than 0.0% and Less than 0.5%		620		44.84
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		461		33.33
Less than –0.5% and Greater than –1.0%		89		6.44
Less than –1.0% and Greater than –1.5%		18		1.30
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

		1,383		100.00	%

iShares MSCI Italy Capped ETF

Period Covered:January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0% and Less than 3.5%		3		0.22	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		1		0.07
Greater than 1.5% and Less than 2.0%		10		0.72
Greater than 1.0% and Less than 1.5%		58		4.19
Greater than 0.5% and Less than 1.0%		210		15.18
Greater than 0.0% and Less than 0.5%		545		39.42
At NAV		7		0.51
Less than 0.0% and Greater than –0.5%		398		28.78
Less than –0.5% and Greater than –1.0%		108		7.81
Less than –1.0% and Greater than –1.5%		27		1.95
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 –3.0%		4		0.29

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			71

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Spain Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5%		1		0.07	%
Greater than 3.0% and Less than 3.5%		2		0.14
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		7		0.51
Greater than 1.0% and Less than 1.5%		45		3.25
Greater than 0.5% and Less than 1.0%		176		12.73
Greater than 0.0% and Less than 0.5%		551		39.84
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		419		30.30
Less than –0.5% and Greater than –1.0%		121		8.75
Less than –1.0% and Greater than –1.5%		30		2.17
Less than –1.5% and Greater than –2.0%		9		0.65
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5%		1		0.07

		1,383		100.00	%

iShares MSCI Switzerland Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		5		0.36
Greater than 1.0% and Less than 1.5%		17		1.23
Greater than 0.5% and Less than 1.0%		112		8.10
Greater than 0.0% and Less than 0.5%		656		47.43
At NAV		21		1.52
Less than 0.0% and Greater than –0.5%		477		34.49
Less than –0.5% and Greater than –1.0%		78		5.64
Less than –1.0% and Greater than –1.5%		11		0.80
Less than –1.5% and Greater than –2.0%		3		0.22
Less than –2.0%		1		0.07

		1,383		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

The Alternative Investment Fund Managers Directive (“AIFMD”) imposes 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 AIFMD if such managers market a fund to EU investors.


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

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 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.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to the Fund is included in the aggregate figures disclosed.

BlackRock has a clear and well defined pay-for-performance philosophy, and compensation programs which support that philosophy. For senior management, a significant percentage of variable remuneration is deferred over time. All employees are subject to a claw-back policy.

Compensation decisions for employees are made based on BlackRock’s full-year financial results and other non-financial goals and objectives. Alongside financial performance, individual compensation is also based on strategic and operating results and other considerations such as management and leadership capabilities. No set formulas are established and no fixed benchmarks are used in determining annual incentive awards.

Bonus pools are reviewed by BlackRock’s independent compensation committee, taking into account both actual and projected financial information together with information provided by the Operational Risk and Regulatory Compliance departments in relation to any activities, incidents or events that warrant consideration in making compensation decisions.

Functions such as Finance, Operational Risk, Legal & Compliance, and Human Resources each have their own organizational structures which are independent of the business units. Functional bonus pools are determined with reference to the performance of each individual function and the remuneration of the senior members of control functions is directly overseen by BlackRock’s independent compensation committee. No individual is involved in setting his or her own remuneration.

Members of staff and senior management of BFA typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of BFA and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to the Fund according to an objective apportionment methodology which acknowledges the multiple-service nature of BFA. Accordingly the figures are not representative of any individual’s actual remuneration or their remuneration structure.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the Fund in respect of BFA’s financial year ending December 31, 2016 was USD 420.44 thousand. This figure is comprised of fixed remuneration of USD 165.40 thousand and variable remuneration of USD 255.05 thousand. There were a total of 325 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, 2016, to its senior management was USD 58.15 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 14.01 thousand.


SUPPLEMENTAL INFORMATION			73

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. 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.


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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 (56)	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).


DIRECTOR AND OFFICER INFORMATION			75

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


76		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


DIRECTOR AND OFFICER INFORMATION			77

Notes:


78		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-807-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Hong Kong ETF | EWH | NYSE Arca

^Ø

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

^Ø

iShares MSCI Malaysia ETF | EWM | NYSE Arca

^Ø

iShares MSCI Pacific ex Japan ETF | EPP | NYSE Arca

^Ø

iShares MSCI Singapore Capped ETF | EWS | NYSE Arca

^Ø

iShares MSCI Taiwan Capped ETF | EWT | NYSE Arca

^Ø

iShares MSCI Thailand Capped ETF | THD | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			20
Shareholder Expenses			20
Schedules of Investments			21
iShares MSCI Hong Kong ETF			21
iShares MSCI Japan Small-Cap ETF			24
iShares MSCI Malaysia ETF			37
iShares MSCI Pacific ex Japan ETF			40
iShares MSCI Singapore Capped ETF			44
iShares MSCI Taiwan Capped ETF			47
iShares MSCI Thailand Capped ETF			51
Financial Statements			55
Financial Highlights			65
Notes to Financial Statements			72
Report of Independent Registered Public Accounting Firm			87
Tax Information			88
Board Review and Approval of Investment Advisory Contract			89
Supplemental Information			108
Director and Officer Information			116

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI HONG KONG ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.38%		20.67%		20.98%		20.38%		20.67%		20.98%
5 Years		11.01%		10.96%		11.66%		68.56%		68.18%		73.57%
10 Years		6.32%		6.25%		6.91%		84.54%		83.32%		95.08%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,164.10	$	2.67	$	1,000.00	$	1,022.70	$	2.50		0.49%


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI HONG KONG ETF

The iShares MSCI Hong Kong ETF (the “Fund”) seeks to track the investment results of an index composed of Hong Kong equities, as represented by the MSCI Hong Kong Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 20.38%, net of fees, while the total return for the Index was 20.98%.

Hong Kong’s economy expanded throughout the reporting period, driven by solid export levels, a robust real estate market, and declining unemployment. Reflecting the economic momentum, Hong Kong’s stock market posted its eighth consecutive month of gains in August 2017, its longest such advance in a decade.

The financials sector represented about 33% of the Index on average during the reporting period, and contributed the most to the Index’s return. The insurance industry led sector gains as mainland Chinese companies eager to participate in Hong Kong’s financial sector bought insurance companies as a means to acquire the licenses needed to operate a broad range of financial services. Demand for Hong Kong insurance products was strong among mainland Chinese individuals, largely due to more competitive rates and greater choices. Banks also contributed to the sector’s advance.

Another significant contributor to the Index’s performance was the real estate sector. Real estate prices rose during the reporting period, with average residential prices rising 20% in April 2017 compared with a year earlier and surpassing the peaks reached in the 1997 and 2015 property bubbles. Within the sector, real estate management and development companies led the advance.

The consumer discretionary sector was also a meaningful contributor to the Index’s return. The sector’s strength reflected increased consumer confidence and consumer spending levels for the reporting period as unemployment levels declined. The hotels, restaurants, and leisure industry drove gains for the sector.

The industrials and utilities sectors advanced. The industrial conglomerates industry supported strength in the industrials sector, while electric utilities stocks benefited the utilities sector.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	33.59	%
Real Estate	27.07
Industrials	14.17
Utilities	10.76
Consumer Discretionary	10.62
Consumer Staples	1.68
Telecommunication Services	1.45
Information Technology	0.66

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


AIA Group Ltd.	18.50	%
CK Hutchison Holdings Ltd.	7.06
Hong Kong Exchanges & Clearing Ltd.	6.34
Sun Hung Kai Properties Ltd.	4.83
Cheung Kong Property Holdings Ltd.	4.58
BOC Hong Kong Holdings Ltd.	3.76
Link REIT	3.65
Hang Seng Bank Ltd.	3.51
CLP Holdings Ltd.	3.47
Hong Kong & China Gas Co. Ltd.	3.17

TOTAL	58.87	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI JAPAN SMALL-CAP ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		22.81%		23.31%		23.15%		22.81%		23.31%		23.15%
5 Years		13.68%		13.70%		14.12%		89.89%		90.01%		93.52%
Since Inception		6.40%		6.44%		6.75%		82.55%		83.26%		88.43%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 12/20/07. The first day of secondary market trading was 12/21/07.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,109.70	$	2.55	$	1,000.00	$	1,022.80	$	2.45		0.48%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

The iShares MSCI Japan Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization Japanese equities, as represented by the MSCI Japan Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 22.81%, net of fees, while the total return for the Index was 23.15%.

The Japanese economy posted its longest span of sustained growth in a decade, boosted by consumer spending and exports. Private consumption, representing more than half of economic growth, increased during the reporting period. Although wages did not increase for much of the reporting period, rising stock prices added to the wealth effect, driving up spending. A weaker yen and a global recovery in the manufacturing sector supported export demand, particularly to other Asian countries.

The industrials sector, which represented about 24% of the Index on average during the reporting period, was the largest contributor to the Index’s return. Accelerating manufacturing activity supported the sector, driven by increased export demand. From an industry perspective, machinery led the sector’s advance, followed by construction and engineering.

Another significant contributor to the Index’s return for the reporting period was the consumer discretionary sector. Consumer spending, which has been a soft spot in the Japanese economy for several years, improved during the reporting period. Small-capitalization auto components companies contributed to the sector’s return amid strong global car sales. Increased exports of auto parts included Japanese automakers in the U.S.

Small-capitalization companies in the information technology sector generally benefited from increased demand as global economic growth strengthened during the reporting period. Increased shipments included flat panels, semiconductor manufacturing equipment, and electronics to Asian neighbors. The materials and consumer staples sectors also contributed meaningfully to the Index’s returns.

The Japanese yen, which depreciated approximately 6% relative to the U.S. dollar for the reporting period, detracted from the Index’s performance as returns on Japanese investments were lower when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Industrials	25.16	%
Consumer Discretionary	17.05
Information Technology	12.15
Consumer Staples	10.77
Materials	10.74
Real Estate	9.14
Financials	7.45
Health Care	5.82
Utilities	0.96
Energy	0.74
Telecommunication Services	0.02

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Daifuku Co. Ltd.	0.60	%
Pigeon Corp.	0.59
Furukawa Electric Co. Ltd.	0.52
Orix JREIT Inc.	0.50
Nippon Shinyaku Co. Ltd.	0.48
Showa Denko KK	0.47
Haseko Corp.	0.46
Advance Residence Investment Corp.	0.46
Sojitz Corp.	0.45
CyberAgent Inc.	0.45

TOTAL	4.98	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI MALAYSIA ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		2.14%		3.02%		2.50%		2.14%		3.02%		2.50%
5 Years		(2.43)%		(2.57)%		(2.15)%		(11.57)%		(12.19)%		(10.29)%
10 Years		3.41%		3.16%		3.81%		39.88%		36.52%		45.34%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,096.20	$	2.54	$	1,000.00	$	1,022.80	$	2.45		0.48%


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI MALAYSIA ETF

The iShares MSCI Malaysia ETF (the “Fund”) seeks to track the investment results of an index composed of Malaysian equities, as represented by the MSCI Malaysia Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 2.14%, net of fees, while the total return for the Index was 2.50%.

Malaysia’s economy strengthened to its fastest pace in two years, boosted by an increase in exports and consumer spending. A recovery in global trade and a weak currency supported rising export levels. Improvement in export levels largely reflected robust Chinese demand, but also included increased shipments to Singapore and the European Union. Shipments of electronics and electrical goods, representing more than a third of Malaysian exports, rose 28% in July 2017 compared with a year earlier, while exports of palm oil and palm-based products increased 13%. Consumer spending reached an all-time high in the second quarter of 2017, further supporting economic growth.

The financials sector represented about 29% of the Index on average during the reporting period, and was the largest contributor to the Index’s return. Improving economic conditions, both domestically and globally, supported sector strength. From an industry perspective, banks led the advance in the sector. Higher banking income and net interest income, as well as loan growth, generally boosted earnings within the industry.

The consumer discretionary and industrials sectors also contributed meaningfully to the Index’s performance. The consumer discretionary sector’s strength reflected growth in consumer spending during the reporting period. In terms of industries, the key driver was the hotels, restaurants, and leisure industry. Gains among industrial conglomerates led the advance in the industrials sector.

On the downside, the utilities, telecommunication services, consumer staples, and healthcare sectors detracted from the Index’s performance for the reporting period. These sectors are considered defensive sectors and tend to lag economically sensitive sectors in periods of strong economic growth.

The Malaysian ringgit depreciated by about 5% relative to the U.S. dollar. Consequently, returns on Malaysian investments were lower when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	31.41	%
Industrials	14.92
Utilities	14.56
Consumer Discretionary	9.62
Telecommunication Services	9.61
Consumer Staples	8.51
Energy	3.66
Materials	3.56
Health Care	3.47
Real Estate	0.68

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Public Bank Bhd	12.41	%
Tenaga Nasional Bhd	10.03
Malayan Banking Bhd	7.04
CIMB Group Holdings Bhd	5.97
Genting Bhd	4.56
Sime Darby Bhd	4.43
Genting Malaysia Bhd	3.61
Petronas Chemicals Group Bhd	3.56
DiGi.Com Bhd	3.12
Axiata Group Bhd	2.75

TOTAL	57.48	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI PACIFIC ex JAPAN ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.06%		19.16%		18.51%		18.06%		19.16%		18.51%
5 Years		5.80%		5.82%		6.26%		32.59%		32.71%		35.46%
10 Years		3.88%		3.83%		4.18%		46.40%		45.63%		50.53%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,087.60	$	2.58	$	1,000.00	$	1,022.70	$	2.50		0.49%


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI PACIFIC ex JAPAN ETF

The iShares MSCI Pacific ex Japan ETF (the “Fund”) seeks to track the investment results of an index composed of Pacific region developed market equities, excluding Japan, as represented by the MSCI Pacific ex Japan Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 18.06%, net of fees, while the total return for the Index was 18.51%.

Australia, the largest country weight at about 60% of the Index on average, was the principal contributor to the Index’s performance for the reporting period. As a resource-rich country, Australia is a major commodities exporter. Rising commodities prices amid strengthening global demand supported Australia’s mineral exports, pushing the country’s trade surplus to a record high for the reporting period. Improving economic growth in China helped Australia’s economy, as China purchased approximately 32% of Australia’s exports.

Hong Kong contributed significantly to the Index’s return as its stock market finished the reporting period with the longest span of consecutive monthly advances in a decade. Improving global economic growth, declining unemployment, and a robust property market helped Hong Kong’s economy to expand throughout the reporting period and grow at its fastest rate in six years.

In Singapore, rising manufacturing and exports supported market strength. Global economic growth benefited Singapore’s exports during the reporting period, with Chinese demand for electronics and other manufactured goods particularly strong.

From a sector perspective, the financials sector was the largest contributor to the Index’s performance for the reporting period. Improving global economic conditions supported the sector. Strength in the materials sector reflected gains in the metals and mining industry, which benefited from rising commodities prices amid a rebound in global demand.

Strong property markets in the Pacific region supported the real estate sector’s gains during the reporting period. Other contributing sectors included consumer discretionary and industrials, both economically sensitive sectors that benefited from improving global economic conditions.

During the reporting period, the overall effect of currencies on the Index’s performance was significantly positive. Relative to the U.S. dollar, the Australian dollar appreciated about 5%, the New Zealand dollar depreciated approximately 1%, the Singapore dollar was flat, and the Hong Kong dollar depreciated about 1%, near the lower end of its tightly pegged trading range against the U.S. dollar.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	39.17	%
Real Estate	14.91
Materials	10.36
Industrials	9.35
Consumer Discretionary	5.42
Consumer Staples	5.37
Utilities	4.94
Health Care	4.28
Telecommunication Services	2.90
Energy	2.80
Information Technology	0.50

TOTAL	100.00	%

ALLOCATION BY COUNTRY

As of 8/31/17


Country		Percentage of Total Investments*


Australia	58.50	%
Hong Kong	29.32
Singapore	10.79
New Zealand	1.39

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI SINGAPORE CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	1 Year		5 Years		10 Years		1 Year		5 Years		10 Years
Fund NAV		21.51%		2.54%		3.27%		21.51%		13.38%		37.92%
Fund Market		22.09%		2.56%		3.29%		22.09%		13.49%		38.26%
Index^a		22.07%		2.98%		3.53%		22.07%		15.79%		41.47%
MSCI Singapore Index		22.26%		3.01%		3.55%		22.26%		15.97%		41.70%
MSCI Singapore 25/50 Index^b		n/a		n/a		n/a		15.59%		n/a		n/a

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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, which, effective as of December 1, 2016, replaced the MSCI Singapore Index as the underlying index of the Fund.

^b The inception date for the MSCI Singapore 25/50 Index was July 20, 2016.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,119.80	$	2.62	$	1,000.00	$	1,022.70	$	2.50		0.49%


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SINGAPORE CAPPED ETF

The iShares MSCI Singapore Capped ETF (the “Fund”) (formerly the iShares MSCI Singapore 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 21.51%, net of fees, while the total return for the Index was 22.07%.

Singapore’s economy expanded during the reporting period, driven largely by growth in manufacturing. The improving global economic environment supported manufacturing levels as global demand increased for semiconductors and other electronics equipment, key exports for Singapore. Chinese demand for electronics and other manufactured goods was particularly strong.

From a sector perspective, the financials sector represented about 38% of the Index on average during the reporting period, and was the largest contributor to the Index’s performance. In terms of industries, banks drove the advance amid strong loan growth and increasing income from wealth management.

The real estate sector was also a significant contributor to the Index’s return for the reporting period. Gains among real estate developers and real estate investment trusts reflected an apparent rebound in the country’s property market.

Another meaningful contributor to the Index’s performance for the reporting period was the industrials sector, reflecting increased manufacturing activity. Within the sector, the industrial conglomerates and machinery industries benefited from rising manufacturing levels. Increased defense spending in the region amid escalating geopolitical tensions and terrorism supported companies in the aerospace and defense industry.

The consumer discretionary sector contributed to the Index’s performance for the reporting period, although a weak labor market weighed down some areas of the sector. The hotels, restaurants, and leisure industry led gains within the sector. The consumer staples sector also advanced, reflecting strength in the food products industry. In contrast, the telecommunication services sector detracted from the Index’s return, in part due to increased competition within the sector.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	37.79	%
Real Estate	21.18
Industrials	18.29
Telecommunication Services	11.01
Consumer Discretionary	7.36
Consumer Staples	4.37

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


DBS Group Holdings Ltd.	12.64	%
Oversea-Chinese Banking Corp. Ltd.	11.84
United Overseas Bank Ltd.	10.53
Singapore Telecommunications Ltd.	10.03
Global Logistic Properties Ltd.	4.41
Keppel Corp. Ltd.	4.02
CapitaLand Ltd.	3.50
Genting Singapore PLC	3.33
Ascendas REIT	3.01
Wilmar International Ltd.	2.88

TOTAL	66.19	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI TAIWAN CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	1 Year		5 Years		10 Years		1 Year		5 Years		10 Years
Fund NAV		26.17%		10.69%		4.63%		26.17%		66.13%		57.27%
Fund Market		27.52%		10.62%		4.61%		27.52%		65.63%		56.95%
Index^a		27.12%		11.41%		5.24%		27.12%		71.64%		66.60%
MSCI Taiwan Index		27.64%		11.50%		5.28%		27.64%		72.33%		67.27%
MSCI Taiwan 25/50 Index^b		n/a		n/a		n/a		27.46%		n/a		n/a

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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, which, effective as of December 1, 2016, replaced the MSCI Taiwan Index as the underlying index of the Fund.

^b	The inception date for the MSCI Taiwan 25/50 Index was July 20, 2016.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,145.40	$	3.30	$	1,000.00	$	1,022.10	$	3.11		0.61%


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI TAIWAN CAPPED ETF

The iShares MSCI Taiwan Capped ETF (the “Fund”) (formerly the iShares MSCI Taiwan 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 26.17%, net of fees, while the total return for the Index was 27.12%.

Taiwan’s technology-heavy stock market rose to its highest level in 27 years as its economy expanded. Exports represent approximately 70% of Taiwan’s economy, and about one third of its exports are electronics. Growing global demand for smartphones and other electronic devices during the reporting period was a key driver of rising exports, which increased 12.7% in August 2017 compared with a year before. Taiwan’s main trading partners include China, Hong Kong, and the U.S., and improving economic conditions in those countries benefited Taiwan’s export trade.

The largest contribution to the Index’s performance for the reporting period came from the information technology sector, which represented about 58% of the Index on average. From an industry standpoint, the technology hardware and equipment industry and the semiconductors and semiconductor equipment industry were both drivers of the sector’s advance.

Another significant contributor to the Index’s performance for the reporting period was the financials sector. Banks led the gains in the sector amid expectations of improved asset quality and loan growth as economic conditions strengthened.

The materials sector also contributed to the Index’s gain for the reporting period. Within the sector, strength in the chemicals and the metals and mining industries reflected solid growth in chemicals and metals exports. The industrials and consumer staples sectors were also contributors to the Index’s performance.

The Taiwan new dollar appreciated by approximately 5% relative to the U.S. dollar during the reporting period. This had a positive impact on the Index’s performance, as returns on Taiwanese investments were higher when translated back into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	58.01	%
Financials	16.94
Materials	9.38
Telecommunication Services	4.22
Consumer Discretionary	4.10
Consumer Staples	3.04
Industrials	2.54
Energy	0.86
Real Estate	0.52
Health Care	0.39

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Taiwan Semiconductor Manufacturing Co. Ltd.	22.29	%
Hon Hai Precision Industry Co. Ltd.	10.41
Largan Precision Co. Ltd.	3.32
Chunghwa Telecom Co. Ltd.	2.35
Cathay Financial Holding Co. Ltd.	2.33
MediaTek Inc.	2.30
Formosa Plastics Corp.	2.27
Nan Ya Plastics Corp.	2.11
CTBC Financial Holding Co. Ltd.	1.98
Fubon Financial Holding Co. Ltd.	1.87

TOTAL	51.23	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI THAILAND CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		12.01%		12.62%		12.22%		12.01%		12.62%		12.22%
5 Years		5.94%		5.89%		6.10%		33.43%		33.12%		34.48%
Since Inception		8.38%		8.38%		8.71%		113.65%		113.73%		119.76%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08.

Index performance through February 11, 2013 reflects the performance of the MSCI Thailand Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Thailand IMI 25/50 Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period ^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period ^a		Annualized Expense Ratio
$	1,000.00	$	1,117.90	$	3.26	$	1,000.00	$	1,022.10	$	3.11		0.61%


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

The iShares MSCI Thailand Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Thai equities, as represented by the MSCI Thailand 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 12.01%, net of fees, while the total return for the Index was 12.22%.

Thailand’s economy expanded during the reporting period, growing in the second quarter of 2017 at its fastest pace in four years. Thailand is heavily reliant on exports, which represent approximately 65% of the economy. Key exports include manufactured goods, particularly electronics, machinery, and equipment. A recovery in exports led the economy’s expansion, as improving economic conditions in the key export markets of the U.S., the European Union, and China drove demand, particularly for electronics.

Tempering the growth in exports, private investment and consumption remained tepid during the reporting period. Thailand’s economy has trailed those of many Asian neighbors since 2014, when the country’s military junta seized power in a coup. The junta has increased spending and investment in an effort to stimulate domestic economic activity, but has failed to implement proposed infrastructure projects.

From a sector perspective, the energy sector was the largest contributor to the Index’s return for the reporting period. The country’s energy sector has diversified amid increasing demand for energy sources. During the reporting period, energy companies performed well due to growing industrial capacity, urbanization, and population growth, which have contributed to higher domestic energy demand. Within the sector, the oil, gas, and consumable fuels industry drove performance.

The financials and industrials sectors contributed meaningfully to the Index’s performance for the reporting period. Banks led the advance in the financials sector, while transportation companies were the largest contributors in the industrials sector. The materials sector also gained, reflecting strength among chemicals companies.

The Thai baht appreciated about 4% relative to the U.S. dollar during the reporting period, which contributed to the Index’s performance as investments in Thailand were worth more when translated back into U.S. dollar terms.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	20.90	%
Energy	17.68
Industrials	11.64
Consumer Staples	10.61
Materials	9.86
Consumer Discretionary	6.75
Telecommunication Services	6.12
Real Estate	5.64
Health Care	4.78
Utilities	3.43
Information Technology	2.59

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


PTT PCL NVDR	9.40	%
CP ALL PCL NVDR	6.82
Siam Commercial Bank PCL (The) NVDR	5.92
Kasikornbank PCL Foreign	5.51
Airports of Thailand PCL NVDR	5.20
Advanced Info Service PCL NVDR	4.34
PTT Global Chemical PCL NVDR	3.69
Siam Cement PCL (The) Foreign	3.32
PTT Exploration & Production PCL NVDR	2.71
Kasikornbank PCL NVDR	2.58

TOTAL	49.49	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

About Fund Performance

Shareholder Expenses


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI HONG KONG ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.51%

BANKS — 8.36%
Bank of East Asia Ltd. (The)^a		4,519,610	$	20,702,624
BOC Hong Kong Holdings Ltd.		13,647,000		69,486,542
Hang Seng Bank Ltd.		2,820,300		64,863,891

				155,053,057
CAPITAL MARKETS — 6.31%
Hong Kong Exchanges & Clearing Ltd.		4,289,400		117,066,594

				117,066,594
DIVERSIFIED FINANCIAL SERVICES — 0.35%
First Pacific Co. Ltd./Hong Kong		7,954,999		6,393,313

				6,393,313
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.44%
HKT Trust & HKT Ltd.		13,971,500		18,030,160
PCCW Ltd.		15,628,169		8,706,223

				26,736,383
ELECTRIC UTILITIES — 7.55%
CK Infrastructure Holdings Ltd.		2,444,000		22,140,255
CLP Holdings Ltd.		6,056,200		63,955,552
HK Electric Investments & HK Electric Investments Ltd.^b		9,755,000		8,949,256
Power Assets Holdings Ltd.		5,116,000		45,103,974

				140,149,037
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 3.63%
Link REIT		8,161,500		67,365,523

				67,365,523
FOOD PRODUCTS — 1.67%
WH Group Ltd.^b		29,717,500		31,059,951

				31,059,951
GAS UTILITIES — 3.15%
Hong Kong & China Gas Co. Ltd.^a		30,950,802		58,528,691

				58,528,691
HOTELS, RESTAURANTS & LEISURE — 7.98%
Galaxy Entertainment Group Ltd.		8,677,000		54,436,009
Melco Resorts & Entertainment Ltd. ADR		907,174		19,912,469
MGM China Holdings Ltd.		3,503,488		7,019,107
Sands China Ltd.^a		8,931,200		39,997,516
Shangri-La Asia Ltd.		4,618,000		7,729,660
SJM Holdings Ltd.		7,304,000		6,374,068
Wynn Macau Ltd.		5,748,000		12,617,552

				148,086,381


Security	Shares		Value
HOUSEHOLD DURABLES — 1.41%
Techtronic Industries Co. Ltd.		5,070,147	$	26,236,794

				26,236,794
INDUSTRIAL CONGLOMERATES — 12.39%
CK Hutchison Holdings Ltd.		9,958,767		130,298,889
Jardine Matheson Holdings Ltd.		802,200		52,712,562
Jardine Strategic Holdings Ltd.		817,000		35,825,450
NWS Holdings Ltd.		5,729,000		11,009,354

				229,846,255
INSURANCE — 18.41%
AIA Group Ltd.		44,527,400		341,645,365

				341,645,365
MEDIA — 0.01%
I-CABLE Communications Ltd.^c		3,523,935		130,575

				130,575
REAL ESTATE MANAGEMENT & DEVELOPMENT — 23.31%
Cheung Kong Property Holdings Ltd.		9,638,767		84,608,385
Hang Lung Group Ltd.		3,255,000		12,268,972
Hang Lung Properties Ltd.		7,468,000		18,167,971
Henderson Land Development Co. Ltd.		4,426,862		27,432,975
Hongkong Land Holdings Ltd.		4,338,400		32,147,544
Hysan Development Co. Ltd.		2,307,000		10,670,662
Kerry Properties Ltd.		2,391,000		9,470,577
New World Development Co. Ltd.		21,755,066		29,742,630
Sino Land Co. Ltd.		11,646,000		20,147,939
Sun Hung Kai Properties Ltd.		5,340,000		89,108,600
Swire Pacific Ltd. Class A		1,832,500		18,649,404
Swire Properties Ltd.^a		4,314,800		14,940,500
Wharf Holdings Ltd. (The)		4,475,150		42,627,556
Wheelock & Co. Ltd.		3,008,357		22,505,645

				432,489,360
ROAD & RAIL — 1.72%
MTR Corp. Ltd.		5,449,083		31,852,953

				31,852,953
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 0.65%
ASM Pacific Technology Ltd.^a		978,800		12,106,107

				12,106,107
TEXTILES, APPAREL & LUXURY GOODS — 1.17%
Li & Fung Ltd.		21,696,000		9,785,647
Yue Yuen Industrial Holdings Ltd.		2,729,000		11,820,570

				21,606,217

TOTAL COMMON STOCKS
(Cost: $1,735,128,032)				1,846,352,556


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI HONG KONG ETF

August 31, 2017


Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.81%

MONEY MARKET FUNDS — 1.81%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		33,422,824	$	33,432,851
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		109,004		109,004

				33,541,855

TOTAL SHORT-TERM INVESTMENTS (Cost: $33,536,111)				33,541,855

TOTAL INVESTMENTS IN SECURITIES — 101.32% (Cost: $1,768,664,143)^g				1,879,894,411
Other Assets, Less Liabilities — (1.32)%				(24,447,181	)

NET ASSETS — 100.00%			$	1,855,447,230

ADR — American Depositary Receipts

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

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

^c	Non-income earning security.

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,789,678,603. Net unrealized appreciation was $90,322,310, of which $215,773,465 represented gross unrealized appreciation on investments and $125,451,155 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash
Funds: Institutional,
SL Agency Shares		34,450,945		—			(1,028,121	)^b		33,422,824	$	33,432,851	$	25,964	$	5,744	$	—	^c
BlackRock Cash
Funds: Treasury,
SL Agency Shares		69,762		39,242	^b		—			109,004		109,004		8		—		9,080

											$	33,541,855	$	25,972	$	5,744	$	9,080

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI HONG KONG ETF

August 31, 2017

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description

Number of
Contracts

Expiration
Date

Notional
Amount
(000)

Value/
Unrealized
Appreciation
(Depreciation)

Long Contracts:

Hang Seng Index

2,500

Sep 2017

8,924

106,502

Schedule 3 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,846,352,556	$	—	$	—	$	1,846,352,556
Money market funds		33,541,855		—		—		33,541,855

Total	$	1,879,894,411	$	—	$	—	$	1,879,894,411

Derivative financial instruments^a:
Assets:
Futures contracts	$	106,502	$	—	$	—	$	106,502

Total	$	106,502	$	—	$	—	$	106,502

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			23

Schedule of Investments

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.77%

AEROSPACE & DEFENSE — 0.03%
Jamco Corp.^a		2,600	$	57,027

				57,027
AIR FREIGHT & LOGISTICS — 0.21%
Kintetsu World Express Inc.		10,400		168,388
Konoike Transport Co. Ltd.		7,800		110,558
Mitsui-Soko Holdings Co. Ltd.		26,000		74,887
Yusen Logistics Co. Ltd.		5,200		49,184

				403,017
AUTO COMPONENTS — 3.61%
Aisan Industry Co. Ltd.		10,400		92,982
Akebono Brake Industry Co. Ltd.^b		26,000		82,682
Daido Metal Co. Ltd.		7,800		67,823
Daikyonishikawa Corp.		10,400		162,057
Eagle Industry Co. Ltd.		5,200		92,415
Exedy Corp.		7,800		233,518
FCC Co. Ltd.		7,800		168,672
Futaba Industrial Co. Ltd.		15,600		154,923
G-Tekt Corp.		5,200		100,116
Kasai Kogyo Co. Ltd.		7,800		111,550
Keihin Corp.		10,400		171,128
KYB Corp.		52,000		288,206
Mitsuba Corp.		7,800		113,109
Musashi Seimitsu Industry Co. Ltd.		5,200		150,718
NHK Spring Co. Ltd.		52,000		519,244
Nifco Inc./Japan		10,400		596,256
Nippon Seiki Co. Ltd.		8,000		162,457
Nissin Kogyo Co. Ltd.		10,400		179,822
Pacific Industrial Co. Ltd.		10,400		131,252
Piolax Inc.		7,800		207,934
Press Kogyo Co. Ltd.		23,400		122,677
Riken Corp.		2,600		123,078
Sanden Holdings Corp.^b		26,000		81,501
Showa Corp.^b		13,000		147,765
Sumitomo Riko Co. Ltd.		10,400		99,691
Tachi-S Co. Ltd.		7,800		133,307
Taiho Kogyo Co. Ltd.		5,200		74,272
Tokai Rika Co. Ltd.		13,000		245,094
Topre Corp.		7,800		225,368
Toyo Tire & Rubber Co. Ltd.		26,000		500,818
Toyota Boshoku Corp.		18,200		359,667
TPR Co. Ltd.		5,200		157,569
TS Tech Co. Ltd.		13,000		406,324
Unipres Corp.		10,400		266,095
Yorozu Corp.		5,200		102,668

				6,832,758


Security	Shares		Value
AUTOMOBILES — 0.12%
Nissan Shatai Co. Ltd.		20,800	$	234,912

				234,912
BANKS — 4.88%
77 Bank Ltd. (The)		78,000		363,565
Aichi Bank Ltd. (The)		2,600		146,465
Akita Bank Ltd. (The)		52,000		157,805
Aomori Bank Ltd. (The)		52,000		191,823
Awa Bank Ltd. (The)		52,000		320,334
Bank of Iwate Ltd. (The)		5,200		203,398
Bank of Nagoya Ltd. (The)^a		2,600		99,809
Bank of Okinawa Ltd. (The)		5,200		210,249
Bank of Saga Ltd. (The)		26,000		62,602
Bank of the Ryukyus Ltd.		10,400		154,686
Chiba Kogyo Bank Ltd. (The)		13,000		64,965
Chukyo Bank Ltd. (The)		2,600		55,114
Daishi Bank Ltd. (The)		78,000		352,935
Ehime Bank Ltd. (The)		7,800		99,219
Eighteenth Bank Ltd. (The)		52,000		124,259
Gunma Bank Ltd. (The)		91,000		532,473
Hokkoku Bank Ltd. (The)		52,000		225,368
Hokuetsu Bank Ltd. (The)		5,200		121,094
Hokuhoku Financial Group Inc.		31,200		478,801
Hyakugo Bank Ltd. (The)		52,000		216,391
Hyakujushi Bank Ltd. (The)		52,000		180,956
Iyo Bank Ltd. (The)		62,400		472,281
Jimoto Holdings Inc.		41,600		74,083
Juroku Bank Ltd. (The)		78,000		239,542
Kansai Urban Banking Corp.		7,800		94,045
Keiyo Bank Ltd. (The)		52,000		228,203
Kiyo Bank Ltd. (The)		15,600		252,866
Mie Bank Ltd. (The)		2,600		59,744
Minato Bank Ltd. (The)		5,200		96,762
Miyazaki Bank Ltd. (The)		26,000		88,116
Musashino Bank Ltd. (The)		7,800		221,824
Nanto Bank Ltd. (The)		7,800		217,218
Nishi-Nippon Financial Holdings Inc.		36,400		390,591
North Pacific Bank Ltd.		78,000		234,581
Ogaki Kyoritsu Bank Ltd. (The)		78,000		210,485
Oita Bank Ltd. (The)		26,000		98,982
San-in Godo Bank Ltd. (The)		36,400		302,286
Senshu Ikeda Holdings Inc.		62,400		232,455
Shiga Bank Ltd. (The)		52,000		273,560
Shikoku Bank Ltd. (The)		52,000		152,608
Tochigi Bank Ltd. (The)		26,000		102,053


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Toho Bank Ltd. (The)		52,000	$	182,373
Tokyo TY Financial Group Inc.		5,230		121,840
TOMONY Holdings Inc.		36,400		163,380
Towa Bank Ltd. (The)		78,000		77,249
Tsukuba Bank Ltd.		20,800		68,792
Yamagata Bank Ltd. (The)		26,000		123,078
Yamanashi Chuo Bank Ltd. (The)		26,000		101,817

				9,243,125
BEVERAGES — 0.71%
Ito EN Ltd.		13,000		478,376
Sapporo Holdings Ltd.		15,600		452,862
Takara Holdings Inc.		41,600		402,922

				1,334,160
BIOTECHNOLOGY — 0.70%
GNI Group Ltd.^a,b		26,000		113,629
HEALIOS KK^b		2,600		35,081
Japan Tissue Engineering Co. Ltd.^b		5,200		56,554
NanoCarrier Co. Ltd.^a,b		10,400		65,012
OncoTherapy Science Inc.^a,b		36,400		84,336
PeptiDream Inc.^a,b		20,800		724,768
SanBio Co. Ltd.^b		5,200		69,595
Takara Bio Inc.		13,000		176,231

				1,325,206
BUILDING PRODUCTS — 1.80%
Aica Kogyo Co. Ltd.		13,000		428,176
Bunka Shutter Co. Ltd.		13,000		98,628
Central Glass Co. Ltd.		52,000		218,281
Maeda Kosen Co. Ltd.		5,200		78,525
Nichias Corp.		26,000		304,270
Nichiha Corp.		7,800		283,836
Nippon Sheet Glass Co. Ltd.^b		23,400		177,105
Nitto Boseki Co. Ltd.		52,000		275,450
Noritz Corp.		7,800		136,426
Okabe Co. Ltd.		10,400		94,966
Sankyo Tateyama Inc.		7,800		111,904
Sanwa Holdings Corp.		52,000		579,248
Sekisui Jushi Corp.		7,800		142,804
Sinko Industries Ltd.		5,200		81,737
Takara Standard Co. Ltd.		10,400		180,105
Takasago Thermal Engineering Co. Ltd.		13,000		214,383

				3,405,844
CAPITAL MARKETS — 0.86%
Ichiyoshi Securities Co. Ltd.		10,400		97,707


Security	Shares		Value
Jafco Co. Ltd.		7,800	$	357,187
kabu.com Securities Co. Ltd.		36,400		112,448
Kyokuto Securities Co. Ltd.		5,200		74,697
Marusan Securities Co. Ltd.		13,000		109,849
Matsui Securities Co. Ltd.		28,600		218,800
Monex Group Inc.		52,000		137,016
Okasan Securities Group Inc.		26,000		149,773
SPARX Group Co. Ltd.		28,600		51,972
Tokai Tokyo Financial Holdings Inc.		54,600		314,027

				1,623,476
CHEMICALS — 6.64%
Achilles Corp.		5,200		103,424
ADEKA Corp.		23,400		397,796
Chugoku Marine Paints Ltd.		18,200		151,143
Dainichiseika Color & Chemicals Manufacturing Co. Ltd.		26,000		254,897
Denka Co. Ltd.		104,000		660,512
DIC Corp.		20,800		734,218
Fujimi Inc.		5,200		112,306
Fujimori Kogyo Co. Ltd.		5,200		184,027
Fuso Chemical Co. Ltd.		5,200		161,821
Ishihara Sangyo Kaisha Ltd.^b		10,400		140,229
JSP Corp.		2,600		78,194
Kanto Denka Kogyo Co. Ltd.^a		10,400		100,919
KH Neochem Co. Ltd.		5,200		133,898
Koatsu Gas Kogyo Co. Ltd.		7,800		58,610
Konishi Co. Ltd.		7,800		135,717
Kumiai Chemical Industry Co. Ltd.^a		22,049		131,621
Kureha Corp.		2,600		133,473
Lintec Corp.		13,000		347,501
Nihon Nohyaku Co. Ltd.		13,000		74,296
Nihon Parkerizing Co. Ltd.		23,400		341,241
Nippon Kayaku Co. Ltd.		32,000		512,884
Nippon Shokubai Co. Ltd.		5,800		413,156
Nippon Soda Co. Ltd.		26,000		149,064
NOF Corp.		33,000		467,145
Okamoto Industries Inc.		26,000		269,780
Osaka Soda Co. Ltd.		26,000		125,204
Sakai Chemical Industry Co. Ltd.		26,000		125,204
Sakata INX Corp.		10,400		184,358
Sanyo Chemical Industries Ltd.		2,600		136,307
Sekisui Plastics Co. Ltd.		5,200		54,051
Shikoku Chemicals Corp.		6,000		80,792
Shin-Etsu Polymer Co. Ltd.		10,400		97,329
Showa Denko KK		33,800		897,054


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Stella Chemifa Corp.		2,600	$	112,684
Sumitomo Bakelite Co. Ltd.		52,000		382,228
Sumitomo Seika Chemicals Co. Ltd.		2,600		123,315
Taiyo Holdings Co. Ltd.		5,200		259,858
Takasago International Corp.		2,600		92,368
Tenma Corp.		5,200		100,825
Toagosei Co. Ltd.		28,600		359,384
Tokai Carbon Co. Ltd.		52,000		375,141
Tokuyama Corp.^b		78,000		344,430
Tokyo Ohka Kogyo Co. Ltd.		10,400		363,802
Toyo Ink SC Holdings Co. Ltd.		52,000		295,766
Toyobo Co. Ltd.		208,000		376,086
Ube Industries Ltd.		286,000		815,955
W-Scope Corp.^a		7,800		165,553
Zeon Corp.		35,000		440,760

				12,556,326
COMMERCIAL SERVICES & SUPPLIES — 1.60%
Aeon Delight Co. Ltd.		5,200		184,736
Bell System24 Holdings Inc.		7,800		81,855
Daiseki Co. Ltd.		10,460		249,478
Duskin Co. Ltd.		10,400		300,018
Itoki Corp.		10,400		80,887
Kokuyo Co. Ltd.		20,800		330,351
Kyodo Printing Co. Ltd.		26,000		87,407
Matsuda Sangyo Co. Ltd.		5,260		78,092
Mitsubishi Pencil Co. Ltd.		10,400		272,804
Nippon Kanzai Co. Ltd.		5,200		92,320
Nippon Parking Development Co. Ltd.		49,400		74,508
Okamura Corp.		18,200		184,712
Oyo Corp.		5,200		75,784
Pilot Corp.^a		10,400		455,461
Prestige International Inc.		10,400		111,503
Relia Inc.		10,400		115,944
Sato Holdings Corp.		5,200		124,070
Toppan Forms Co. Ltd.		13,000		136,898

				3,036,828
COMMUNICATIONS EQUIPMENT — 0.28%
Denki Kogyo Co. Ltd.		26,000		134,890
Hitachi Kokusai Electric Inc.		13,000		330,138
Icom Inc.		2,600		59,862

				524,890
CONSTRUCTION & ENGINEERING — 5.00%
Chiyoda Corp.^a		37,000		192,295
Chudenko Corp.		7,800		212,611


Security	Shares		Value
COMSYS Holdings Corp.		26,000	$	558,459
Daiho Corp.		26,000		118,354
Fudo Tetra Corp.		46,800		78,241
Fukuda Corp.		2,600		142,450
Hazama Ando Corp.		44,200		311,239
Hibiya Engineering Ltd.		5,200		106,589
Kandenko Co. Ltd.		26,000		278,285
Kinden Corp.		33,800		551,561
Kumagai Gumi Co. Ltd.		104,000		325,059
Kyowa Exeo Corp.		23,400		440,105
Kyudenko Corp.		10,400		421,915
Maeda Corp.		26,000		317,263
Maeda Road Construction Co. Ltd.		26,000		522,079
Mirait Holdings Corp.		15,600		185,539
Nippo Corp.		10,000		198,074
Nippon Densetsu Kogyo Co. Ltd.		7,800		159,175
Nippon Koei Co. Ltd.		2,600		81,147
Nippon Road Co. Ltd. (The)		26,000		144,576
Nishimatsu Construction Co. Ltd.		78,000		429,475
Okumura Corp.		52,000		388,842
OSJB Holdings Corp.^a		33,800		91,825
Penta-Ocean Construction Co. Ltd.		70,200		420,970
Raito Kogyo Co. Ltd.		10,400		103,565
Sanki Engineering Co. Ltd.		10,400		115,188
Shinnihon Corp.		7,800		57,051
SHO-BOND Holdings Co. Ltd.		5,200		287,734
Sumitomo Densetsu Co. Ltd.		5,200		89,013
Sumitomo Mitsui Construction Co. Ltd.		208,000		230,565
Taihei Dengyo Kaisha Ltd.		5,000		66,827
Taikisha Ltd.		7,800		197,729
Takamatsu Construction Group Co. Ltd.		2,600		67,776
Tekken Corp.		26,000		85,045
Toa Corp./Tokyo^b		2,600		48,168
Toda Corp.		52,000		373,251
Tokyu Construction Co. Ltd.		20,840		168,901
Toshiba Plant Systems & Services Corp.		13,000		223,478
Totetsu Kogyo Co. Ltd.		7,800		254,779
Toyo Construction Co. Ltd.		18,200		81,525
Toyo Engineering Corp.		52,000		131,347
Yahagi Construction Co. Ltd.		7,800		67,185
Yokogawa Bridge Holdings Corp.		7,800		139,260

				9,464,515


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
CONSTRUCTION MATERIALS — 0.25%
Sumitomo Osaka Cement Co. Ltd.		104,000	$	465,855

				465,855
CONSUMER FINANCE — 0.56%
Aiful Corp.^a,b		83,200		288,773
Hitachi Capital Corp.		13,000		301,672
J Trust Co. Ltd.		18,200		160,073
Jaccs Co. Ltd.		26,000		128,748
Orient Corp.^a		114,400		185,019

				1,064,285
CONTAINERS & PACKAGING — 0.50%
FP Corp.		5,200		268,835
Fuji Seal International Inc.		10,400		314,665
Pack Corp. (The)		2,600		88,706
Rengo Co. Ltd.		46,800		270,016

				942,222
DISTRIBUTORS — 0.38%
Canon Marketing Japan Inc.		13,000		298,010
Doshisha Co. Ltd.		5,200		107,014
PALTAC Corp.		7,800		308,641

				713,665
DIVERSIFIED CONSUMER SERVICES — 0.04%
Meiko Network Japan Co. Ltd.		5,200		70,823

				70,823
DIVERSIFIED FINANCIAL SERVICES — 1.06%
Financial Products Group Co. Ltd.		18,200		200,587
Fuyo General Lease Co. Ltd.		5,200		314,665
IBJ Leasing Co. Ltd.		7,800		198,863
Japan Securities Finance Co. Ltd.		23,400		121,826
Ricoh Leasing Co. Ltd.		5,200		181,428
Tokyo Century Corp.		10,480		453,727
Zenkoku Hosho Co. Ltd.		13,000		527,394

				1,998,490
ELECTRIC UTILITIES — 0.81%
Hokkaido Electric Power Co. Inc.		46,800		356,337
Hokuriku Electric Power Co.		44,200		420,474
Okinawa Electric Power Co. Inc. (The)		8,430		187,963
Shikoku Electric Power Co. Inc.		44,200		575,090

				1,539,864
ELECTRICAL EQUIPMENT — 1.86%
Chiyoda Integre Co. Ltd.		2,600		54,523
Cosel Co. Ltd.		5,200		69,311
Daihen Corp.		26,000		225,604


Security	Shares		Value
Denyo Co. Ltd.		5,200	$	89,344
Fujikura Ltd.		65,000		527,985
Furukawa Electric Co. Ltd.		18,200		985,572
Futaba Corp.		7,800		144,150
GS Yuasa Corp.		78,000		386,953
Idec Corp./Japan		7,800		137,063
Nissin Electric Co. Ltd.		13,000		144,103
Nitto Kogyo Corp.		7,800		140,253
Sanyo Denki Co. Ltd.		8,000		92,386
Tatsuta Electric Wire and Cable Co. Ltd.		10,400		68,414
Toyo Tanso Co. Ltd.		2,600		58,799
Ushio Inc.		28,600		387,968

				3,512,428
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 4.47%
Ai Holdings Corp.		10,400		263,449
Amano Corp.		15,600		364,699
Anritsu Corp.		36,400		289,388
Azbil Corp.		15,600		649,173
Canon Electronics Inc.		5,200		104,132
Citizen Watch Co. Ltd.		72,800		515,275
CONEXIO Corp.		2,600		44,294
Daiwabo Holdings Co. Ltd.		52,000		208,832
Dexerials Corp.		13,000		178,830
Elematec Corp.		2,600		47,790
Enplas Corp.		2,600		112,212
HORIBA Ltd.		10,400		636,889
Hosiden Corp.		15,600		261,228
Ibiden Co. Ltd.		28,600		473,202
Iriso Electronics Co. Ltd.		5,200		255,606
Japan Aviation Electronics Industry Ltd.		8,000		132,219
Japan Cash Machine Co. Ltd.		5,200		55,043
Japan Display Inc.^a,b		96,200		173,066
Kaga Electronics Co. Ltd.		5,200		138,670
Koa Corp.		7,800		145,213
Macnica Fuji Electronics Holdings Inc.		7,800		136,993
Maruwa Co. Ltd./Aichi		2,600		141,032
Nichicon Corp.		13,000		151,545
Nippon Ceramic Co. Ltd.		5,200		137,819
Nippon Chemi-Con Corp.		26,000		97,565
Nippon Signal Co. Ltd.		13,000		137,725
Nissha Printing Co. Ltd.^a		7,800		211,761
Nohmi Bosai Ltd.		5,200		79,091


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Oki Electric Industry Co. Ltd.		20,800	$	285,372
Optex Group Co. Ltd.		2,600		99,927
Ryosan Co. Ltd.		7,800		326,358
Ryoyo Electro Corp.		5,200		87,549
SIIX Corp.		5,200		215,210
SMK Corp.		26,000		107,723
Taiyo Yuden Co. Ltd.		28,600		432,144
Topcon Corp.		26,000		458,532
Toyo Corp./Chuo-ku		7,800		73,138
UKC Holdings Corp.		5,200		91,092
V Technology Co. Ltd.^a		800		137,670

				8,457,456
ENERGY EQUIPMENT & SERVICES — 0.16%
Modec Inc.		5,200		115,235
Shinko Plantech Co. Ltd.		13,000		110,322
Toyo Kanetsu KK		26,000		78,902

				304,459
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 7.36%
Activia Properties Inc.		156		684,608
Advance Residence Investment Corp.		338		864,501
AEON REIT Investment Corp.		338		365,455
Comforia Residential REIT Inc.		130		281,710
Daiwa Office Investment Corp.		78		389,079
Frontier Real Estate Investment Corp.		130		558,105
Fukuoka REIT Corp.		182		271,694
Global One Real Estate Investment Corp.		52		180,483
GLP J-REIT		650		693,349
Hankyu REIT Inc.		130		163,002
Heiwa Real Estate REIT Inc.		234		196,878
Hoshino Resorts REIT Inc.		52		270,253
Hulic Reit Inc.		234		353,998
Ichigo Office REIT Investment		338		233,093
Industrial & Infrastructure Fund Investment Corp.		78		349,746
Invesco Office J-Reit Inc.		208		201,650
Invincible Investment Corp.		884		377,102
Japan Excellent Inc.		312		374,479
Japan Hotel REIT Investment Corp.		988		679,553
Japan Logistics Fund Inc.		208		423,522
Japan Rental Housing Investments Inc.		416		311,074
Kenedix Office Investment Corp.		104		594,367
Kenedix Residential Investment Corp.		78		199,500


Security	Shares		Value
Kenedix Retail REIT Corp.		130	$	286,080
LaSalle Logiport REIT		286		278,048
MCUBS MidCity Investment Corp.		78		231,746
Mitsui Fudosan Logistics Park Inc.		52		148,828
Mori Hills REIT Investment Corp.		390		498,219
Mori Trust Hotel Reit Inc.		78		104,605
MORI TRUST Sogo REIT Inc.		260		423,805
Nippon Accommodations Fund Inc.		130		527,394
NIPPON REIT Investment Corp.		104		302,853
Orix JREIT Inc.		650		936,671
Premier Investment Corp.		338		328,910
Sekisui House Reit Inc.^a		234		287,450
Sekisui House SI Residential Investment Corp.		260		270,725
TOKYU REIT Inc.		234		290,640

				13,933,175
FOOD & STAPLES RETAILING — 3.26%
Ain Holdings Inc.		5,200		382,228
Arcs Co. Ltd.		10,400		232,833
Axial Retailing Inc.		2,600		106,188
Belc Co. Ltd.		2,600		125,677
Cawachi Ltd.		2,600		63,075
Cocokara fine Inc.		5,200		287,262
Cosmos Pharmaceutical Corp.		2,600		588,933
Create SD Holdings Co. Ltd.		7,800		202,406
Daikokutenbussan Co. Ltd.		2,600		125,913
Heiwado Co. Ltd.		7,800		181,924
Kansai Super Market Ltd.		2,600		33,640
Kato Sangyo Co. Ltd.		5,200		153,080
Kobe Bussan Co. Ltd.		2,600		133,709
Kusuri no Aoki Holdings Co. Ltd.		2,900		163,629
Life Corp.		2,600		65,555
Matsumotokiyoshi Holdings Co. Ltd.		10,400		706,814
Ministop Co. Ltd.		5,200		106,211
Mitsubishi Shokuhin Co. Ltd.		2,600		77,958
Qol Co. Ltd.		5,200		92,462
San-A Co. Ltd.		5,200		228,439
Shoei Foods Corp.		2,600		126,149
Sogo Medical Co. Ltd.		2,600		119,299
Sugi Holdings Co. Ltd.		10,400		549,010
United Super Markets Holdings Inc.		13,000		131,228
Valor Holdings Co. Ltd.		10,400		224,707
Welcia Holdings Co. Ltd.		13,000		509,677
Yakuodo Co. Ltd.^a		2,600		71,815
Yaoko Co. Ltd.		5,200		247,574
Yokohama Reito Co. Ltd.		13,000		125,204

				6,162,599


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
FOOD PRODUCTS — 4.91%
Ariake Japan Co. Ltd.		5,200	$	381,755
DyDo Group Holdings Inc.		2,600		131,346
Ezaki Glico Co. Ltd.		10,400		551,844
Fuji Oil Holdings Inc.		15,600		437,979
Fujicco Co. Ltd.		5,200		128,323
Fujiya Co. Ltd.		2,600		57,405
Hokuto Corp.		5,200		93,029
House Foods Group Inc.		15,600		474,123
Itoham Yonekyu Holdings Inc.		36,400		326,760
J-Oil Mills Inc.		2,600		94,258
Kagome Co. Ltd.		20,800		655,788
Kameda Seika Co. Ltd.		2,600		118,354
Kenko Mayonnaise Co. Ltd.		2,600		67,350
Kewpie Corp.		28,600		684,726
KEY Coffee Inc.		5,200		104,888
Kotobuki Spirits Co. Ltd.		5,200		172,924
Marudai Food Co. Ltd.		26,000		123,551
Maruha Nichiro Corp.		10,400		301,436
MEGMILK SNOW BRAND Co. Ltd.		13,000		381,519
Mitsui Sugar Co. Ltd.		5,200		176,467
Morinaga & Co. Ltd./Japan		10,400		595,312
Morinaga Milk Industry Co. Ltd.		52,000		410,104
Nichirei Corp.		31,200		824,081
Nippon Beet Sugar Manufacturing Co. Ltd.		5,200		113,393
Nippon Flour Mills Co. Ltd.		13,000		206,233
Nippon Suisan Kaisha Ltd.		72,800		409,442
Nisshin OilliO Group Ltd. (The)		26,000		186,153
Prima Meat Packers Ltd.		26,000		160,876
Riken Vitamin Co. Ltd.		2,600		100,164
Rock Field Co. Ltd.		7,800		142,804
Rokko Butter Co. Ltd.		2,600		55,681
S Foods Inc.		2,600		99,573
Sakata Seed Corp.^a		7,800		241,668
Showa Sangyo Co. Ltd.		26,000		144,103
Warabeya Nichiyo Holdings Co. Ltd.		5,200		130,213

				9,283,625
GAS UTILITIES — 0.10%
K&O Energy Group Inc.		5,200		83,958
Shizuoka Gas Co. Ltd.		13,000		103,116

				187,074
HEALTH CARE EQUIPMENT & SUPPLIES — 1.72%
Asahi Intecc Co. Ltd.		13,000		680,356
Eiken Chemical Co. Ltd.		5,200		173,869


Security	Shares		Value
Fukuda Denshi Co. Ltd.		2,600	$	197,256
Hogy Medical Co. Ltd.		2,600		183,318
JEOL Ltd.		26,000		122,606
Mani Inc.		5,200		120,385
Menicon Co. Ltd.		2,600		98,510
Nagaileben Co. Ltd.		5,200		129,835
Nakanishi Inc.		5,200		224,423
Nihon Kohden Corp.		20,800		481,919
Nikkiso Co. Ltd.		15,600		142,308
Nipro Corp.		36,400		480,879
Paramount Bed Holdings Co. Ltd.		5,200		227,730

				3,263,394
HEALTH CARE PROVIDERS & SERVICES — 0.80%
AS ONE Corp.		2,600		142,450
BML Inc.		5,200		111,219
Japan Lifeline Co. Ltd.		5,200		265,055
NichiiGakkan Co. Ltd.		10,400		111,975
Ship Healthcare Holdings Inc.		10,400		317,500
Toho Holdings Co. Ltd.		13,000		254,425
Tokai Corp./Gifu		2,600		114,692
Tsukui Corp.		15,600		106,306
Vital KSK Holdings Inc.		10,400		84,950

				1,508,572
HOTELS, RESTAURANTS & LEISURE — 3.27%
Atom Corp.^a		23,400		174,766
BRONCO BILLY Co. Ltd.^a		2,600		64,894
Colowide Co. Ltd.		15,600		286,033
Create Restaurants Holdings Inc.		13,000		132,291
Doutor Nichires Holdings Co. Ltd.		7,800		169,239
Fuji Kyuko Co. Ltd.^a		8,000		87,370
Fujita Kanko Inc.		2,600		86,108
Hiday Hidaka Corp.		5,216		150,234
Hiramatsu Inc.		7,800		43,798
HIS Co. Ltd.^a		10,400		347,738
Ichibanya Co. Ltd.		2,600		106,306
Kappa Create Co. Ltd.^a,b		7,800		90,147
Kisoji Co. Ltd.		5,200		131,252
KNT-CT Holdings Co. Ltd.^b		26,000		52,444
Komeda Holdings Co. Ltd.		7,800		130,614
Koshidaka Holdings Co. Ltd.^a		2,600		76,894
Kura Corp.		2,600		142,686
Kyoritsu Maintenance Co. Ltd.		7,880		219,088
Matsuya Foods Co. Ltd.		2,600		96,148
MOS Food Services Inc.		7,800		248,755
Ohsho Food Service Corp.		2,600		103,116


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Plenus Co. Ltd.		5,200	$	116,227
Resorttrust Inc.		20,800		388,748
Ringer Hut Co. Ltd.^a		5,200		118,070
Round One Corp.		18,200		207,863
Royal Holdings Co. Ltd.		7,800		197,516
Saizeriya Co. Ltd.		7,800		220,761
Skylark Co. Ltd.		26,000		381,047
St. Marc Holdings Co. Ltd.		5,200		155,442
Tokyo Dome Corp.		23,400		221,541
Tokyotokeiba Co. Ltd.		5,200		158,041
Toridoll Holdings Corp.		5,200		162,766
Tosho Co. Ltd.		2,600		128,275
WATAMI Co. Ltd.		5,200		73,186
Yoshinoya Holdings Co. Ltd.^a		15,600		265,481
Zensho Holdings Co. Ltd.		23,400		443,720

				6,178,605
HOUSEHOLD DURABLES — 2.03%
Alpine Electronics Inc.		10,400		191,823
Chofu Seisakusho Co. Ltd.		5,200		127,047
Clarion Co. Ltd.		26,000		101,108
Cleanup Corp.		5,200		41,719
Foster Electric Co. Ltd.		5,200		109,235
France Bed Holdings Co. Ltd.		7,800		72,288
Fujitsu General Ltd.		15,600		326,004
Funai Electric Co. Ltd.^a		5,200		39,735
Haseko Corp.		70,200		868,730
JVC Kenwood Corp.		33,800		89,675
Misawa Homes Co. Ltd.		7,800		67,398
Pioneer Corp.^b		83,200		154,970
Pressance Corp.		10,400		133,520
Sangetsu Corp.		13,000		232,101
Starts Corp. Inc.		7,800		194,397
Sumitomo Forestry Co. Ltd.		33,800		526,378
Tamron Co. Ltd.		5,200		93,029
Token Corp.		2,620		361,363
Zojirushi Corp.		10,400		103,565

				3,834,085
HOUSEHOLD PRODUCTS — 0.65%
Earth Chemical Co. Ltd.		2,600		124,496
Pigeon Corp.		28,600		1,105,697

				1,230,193
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.04%
eRex Co. Ltd.^a		7,800		74,343

				74,343


Security	Shares		Value
INDUSTRIAL CONGLOMERATES — 0.31%
Katakura Industries Co. Ltd.		5,200	$	59,484
Nisshinbo Holdings Inc.		33,800		358,085
TOKAI Holdings Corp.		20,800		161,395

				578,964
INSURANCE — 0.07%
Anicom Holdings Inc.		5,200		136,024

				136,024
INTERNET & DIRECT MARKETING RETAIL — 0.18%
ASKUL Corp.^a		5,200		156,624
Belluna Co. Ltd.		13,000		133,236
Senshukai Co. Ltd.		7,800		48,334

				338,194
INTERNET SOFTWARE & SERVICES — 0.97%
Ateam Inc.		2,600		68,012
COOKPAD Inc.^a		15,600		108,999
CROOZ Inc.^a		2,600		55,279
Dip Corp.		7,800		163,569
F@N Communications Inc.		10,400		108,951
GMO Internet Inc.		18,200		235,810
Gree Inc.		28,600		208,406
Gurunavi Inc.		7,800		116,157
Infomart Corp.^a		23,400		170,727
Internet Initiative Japan Inc.		7,800		145,710
Istyle Inc.^a		10,400		60,854
SMS Co. Ltd.		7,800		251,944
UNITED Inc./Japan		2,600		63,405
ZIGExN Co. Ltd.^b		5,200		81,832

				1,839,655
IT SERVICES — 2.06%
Digital Garage Inc.^a		10,400		207,320
DTS Corp.		5,200		146,229
GMO Payment Gateway Inc.^a		5,274		336,394
Hearts United Group Co. Ltd.^a		2,600		36,404
Ines Corp.		7,800		70,800
Infocom Corp.		2,600		65,224
Information Services International-Dentsu Ltd.		2,600		57,736
Itochu Techno-Solutions Corp.		13,000		483,100
Kanematsu Electronics Ltd.		5,200		146,229
NEC Networks & System Integration Corp.		5,200		121,188
NET One Systems Co. Ltd.		20,800		212,044
Nihon Unisys Ltd.		18,200		285,584


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
NS Solutions Corp.		10,400	$	223,100
SCSK Corp.		13,056		564,661
TIS Inc.		20,848		614,681
TKC Corp.		5,200		152,135
Transcosmos Inc.		7,800		167,609

				3,890,438
LEISURE PRODUCTS — 0.56%
Fields Corp.		5,200		53,436
Heiwa Corp.		13,016		259,232
Mars Engineering Corp.		2,600		54,334
Mizuno Corp.		26,000		159,695
Tomy Co. Ltd.		20,800		277,623
Universal Entertainment Corp.		5,200		133,709
Yonex Co. Ltd.^a		15,600		122,748

				1,060,777
LIFE SCIENCES TOOLS & SERVICES — 0.10%
EPS Holdings Inc.		7,800		152,726
Linical Co. Ltd.		2,600		38,506

				191,232
MACHINERY — 7.04%
Aichi Corp.		7,800		53,153
Aida Engineering Ltd.		13,000		138,788
Anest Iwata Corp.		10,400		98,274
Asahi Diamond Industrial Co. Ltd.		13,000		113,983
Bando Chemical Industries Ltd.		10,400		102,620
CKD Corp.		13,000		219,935
Daifuku Co. Ltd.		26,000		1,130,383
Daiwa Industries Ltd.		7,800		84,265
DMG Mori Co. Ltd.		28,600		466,446
Ebara Corp.		26,000		804,379
Fuji Machine Manufacturing Co. Ltd.		18,200		320,476
Fujitec Co. Ltd.		13,000		187,570
Fukushima Industries Corp.		2,600		96,856
Furukawa Co. Ltd.		78,000		133,945
Giken Ltd.		2,600		70,705
Glory Ltd.		15,600		530,111
Harmonic Drive Systems Inc.^a		7,800		342,304
Hirata Corp.		2,600		266,945
Hitachi Zosen Corp.		41,600		205,997
Iseki & Co. Ltd.		5,200		107,298
Japan Steel Works Ltd. (The)		15,600		316,507
Kato Works Co. Ltd.		2,600		82,564
Kitz Corp.		20,800		167,065
Komori Corp.		13,000		160,285
Kyokuto Kaihatsu Kogyo Co. Ltd.		7,800		118,850


Security	Shares		Value
Makino Milling Machine Co. Ltd.		26,000	$	204,343
Max Co. Ltd.		4,000		52,408
Meidensha Corp.		52,000		188,988
METAWATER Co. Ltd.		2,600		71,579
Mitsubishi Nichiyu Forklift Co. Ltd.		7,800		52,232
Mitsuboshi Belting Ltd.		7,000		80,774
Mitsui Engineering & Shipbuilding Co. Ltd.		182,000		228,203
Miura Co. Ltd.		23,400		527,276
Morita Holdings Corp.		7,800		120,338
Nachi-Fujikoshi Corp.		52,000		275,450
Namura Shipbuilding Co. Ltd.		13,000		77,603
Nippon Sharyo Ltd.^a,b		26,000		69,453
Nippon Thompson Co. Ltd.		15,600		88,872
Nitta Corp.		5,200		184,972
Nitto Kohki Co. Ltd.		2,600		63,311
Noritake Co. Ltd./Nagoya Japan		2,600		115,637
NTN Corp.		104,000		419,553
Obara Group Inc.		2,600		143,867
Oiles Corp.		5,296		96,287
OKUMA Corp.		26,000		239,070
OSG Corp.		20,800		437,696
Ryobi Ltd.		26,000		130,638
Shibuya Corp.		5,200		171,506
Shima Seiki Manufacturing Ltd.		5,200		263,638
Shinmaywa Industries Ltd.		26,000		224,896
Sintokogio Ltd.		10,400		110,558
Sodick Co. Ltd.		10,400		126,811
Star Micronics Co. Ltd.		10,400		172,924
Tadano Ltd.		26,000		303,325
Takeuchi Manufacturing Co. Ltd.		7,800		147,127
Takuma Co. Ltd.		20,800		235,857
Teikoku Sen-I Co. Ltd.		5,200		101,770
Tocalo Co. Ltd.		5,200		190,405
Toshiba Machine Co. Ltd.		26,000		125,204
Tsubaki Nakashima Co. Ltd.^a		5,200		116,983
Tsubakimoto Chain Co.		26,000		204,107
Tsugami Corp.		26,000		210,013
Tsukishima Kikai Co. Ltd.		7,800		95,179
Tsurumi Manufacturing Co. Ltd.		5,200		93,218
Union Tool Co.		2,600		84,100
YAMABIKO Corp.		7,800		89,438
Yushin Precision Equipment Co. Ltd.^a		2,600		70,870

				13,326,183


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
MARINE — 0.42%
Iino Kaiun Kaisha Ltd.		23,400	$	103,754
Kawasaki Kisen Kaisha Ltd.^a,b		234,000		633,582
NS United Kaiun Kaisha Ltd.		26,000		55,515

				792,851
MEDIA — 1.89%
Amuse Inc.		2,600		67,398
Asatsu-DK Inc.		7,800		210,343
Avex Group Holdings Inc.		7,800		106,802
CyberAgent Inc.		26,000		849,264
D.A. Consortium Holdings Inc.		5,200		79,328
Daiichikosho Co. Ltd.		10,400		503,652
Kadokawa Dwango^a,b		13,008		151,756
Lifull Co. Ltd.		13,000		107,251
Septeni Holdings Co. Ltd.^a		26,000		68,272
Shochiku Co. Ltd.		2,600		368,290
SKY Perfect JSAT Holdings Inc.		41,600		188,988
Toei Co. Ltd.		26,000		309,704
Tokyo Broadcasting System Holdings Inc.		10,400		199,382
TV Asahi Holdings Corp.		5,200		104,841
Vector Inc.		7,800		108,361
Zenrin Co. Ltd.		5,200		159,222

				3,582,854
METALS & MINING — 2.68%
Aichi Steel Corp.		2,600		101,699
Asahi Holdings Inc.		7,800		163,144
Daido Steel Co. Ltd.		78,000		463,493
Dowa Holdings Co. Ltd.		78,000		588,225
Godo Steel Ltd.		2,600		49,468
Kyoei Steel Ltd.		5,200		79,517
Mitsubishi Steel Manufacturing Co. Ltd.		26,000		69,689
Mitsui Mining & Smelting Co. Ltd.		156,000		827,767
Nakayama Steel Works Ltd.		5,200		33,593
Neturen Co. Ltd.		7,800		76,044
Nippon Denko Co. Ltd.		28,600		118,235
Nippon Light Metal Holdings Co. Ltd.		150,800		443,932
Nisshin Steel Co. Ltd.		13,000		168,908
Nittetsu Mining Co. Ltd.		2,600		181,901
Osaka Steel Co. Ltd.		2,600		58,444
OSAKA Titanium Technologies Co. Ltd.^a		5,200		75,501
Pacific Metals Co. Ltd.^b		26,000		73,705
Sanyo Special Steel Co. Ltd.		26,000		140,323


Security	Shares		Value
Toho Titanium Co. Ltd.^a		7,800	$	57,901
Toho Zinc Co. Ltd.		26,000		119,298
Tokyo Rope Manufacturing Co. Ltd.^a		5,200		74,745
Tokyo Steel Manufacturing Co. Ltd.		26,000		219,935
Topy Industries Ltd.		5,200		175,995
Toyo Kohan Co. Ltd.		13,000		63,547
UACJ Corp.		78,140		210,863
Yamato Kogyo Co. Ltd.		10,400		293,876
Yodogawa Steel Works Ltd.		5,200		145,284

				5,075,032
MULTILINE RETAIL — 0.97%
Fuji Co. Ltd./Ehime		5,200		129,126
H2O Retailing Corp.		20,835		375,583
Izumi Co. Ltd.		10,400		544,285
Kintetsu Department Store Co. Ltd.^b		2,600		87,288
Matsuya Co. Ltd.		7,800		67,894
Parco Co. Ltd.		5,200		63,878
Seria Co. Ltd.^a		10,400		568,853

				1,836,907
OIL, GAS & CONSUMABLE FUELS — 0.58%
Cosmo Energy Holdings Co. Ltd.		15,600		322,460
ITOCHU Enex Co. Ltd.		13,000		129,929
Japan Petroleum Exploration Co. Ltd.		7,800		149,537
Nippon Gas Co. Ltd.		10,400		348,683
San-Ai Oil Co. Ltd.		13,000		144,339

				1,094,948
PAPER & FOREST PRODUCTS — 0.65%
Daiken Corp.		5,200		119,346
Daio Paper Corp.		18,200		222,911
Hokuetsu Kishu Paper Co. Ltd.		33,800		224,494
Mitsubishi Paper Mills Ltd.^b		10,400		69,170
Nippon Paper Industries Co. Ltd.		26,000		497,510
Tokushu Tokai Paper Co. Ltd.		2,600		100,518

				1,233,949
PERSONAL PRODUCTS — 1.23%
Ci:z Holdings Co. Ltd.		7,800		306,160
Euglena Co. Ltd.^a,b		18,200		190,334
Fancl Corp.		10,400		244,456
Kobayashi Pharmaceutical Co. Ltd.		13,000		806,742
Mandom Corp.		5,200		311,357
Milbon Co. Ltd.		2,600		157,096
Noevir Holdings Co. Ltd.		5,200		310,413

				2,326,558


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
PHARMACEUTICALS — 2.48%
ASKA Pharmaceutical Co. Ltd.		5,200	$	80,839
JCR Pharmaceuticals Co. Ltd.		2,600		77,249
Kaken Pharmaceutical Co. Ltd.		7,800		411,757
Kissei Pharmaceutical Co. Ltd.		7,800		197,516
KYORIN Holdings Inc.		10,400		218,281
Mochida Pharmaceutical Co. Ltd.		2,600		198,673
Nichi-Iko Pharmaceutical Co. Ltd.^a		10,450		161,887
Nippon Shinyaku Co. Ltd.		13,000		903,598
Rohto Pharmaceutical Co. Ltd.		26,000		602,871
Sawai Pharmaceutical Co. Ltd.		7,800		425,931
Seikagaku Corp.		10,400		183,885
Sosei Group Corp.^a,b		3,800		313,502
Torii Pharmaceutical Co. Ltd.		2,600		69,855
Towa Pharmaceutical Co. Ltd.		2,600		123,787
Tsumura & Co.		15,600		587,516
ZERIA Pharmaceutical Co. Ltd.		7,800		142,946

				4,700,093
PROFESSIONAL SERVICES — 1.86%
Benefit One Inc.^a		5,200		219,698
en-japan Inc.		5,200		181,901
Funai Soken Holdings Inc.		5,200		165,837
JAC Recruitment Co. Ltd.		2,600		38,790
Link And Motivation Inc.^a		7,800		54,995
Meitec Corp.		7,800		360,022
Nihon M&A Center Inc.		15,600		721,461
Nomura Co. Ltd.		10,400		224,801
Outsourcing Inc.		2,600		170,798
Persol Holdings Co. Ltd.		41,600		844,398
Tanseisha Co. Ltd.		10,400		107,723
TechnoPro Holdings Inc.		7,800		355,061
Yumeshin Holdings Co. Ltd.^a		10,400		73,894

				3,519,379
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.76%
Ardepro Co. Ltd.^a		39,000		48,192
Daibiru Corp.		13,000		136,307
Daikyo Inc.		78,000		152,371
Goldcrest Co. Ltd.		5,200		118,495
Heiwa Real Estate Co. Ltd.		10,400		178,783
Ichigo Inc.		59,800		192,886
Japan Asset Marketing Co. Ltd.^b		33,800		39,002
Kenedix Inc.		65,000		311,830
Leopalace21 Corp.		65,000		476,013
NTT Urban Development Corp.		31,200		301,625
Open House Co. Ltd.		7,800		240,960


Security	Shares		Value
Relo Group Inc.		28,600	$	649,386
Sun Frontier Fudousan Co. Ltd.		5,200		51,735
Takara Leben Co. Ltd.		20,800		100,731
TOC Co. Ltd.		15,600		138,906
Tosei Corp.		7,800		64,350
Unizo Holdings Co. Ltd.		5,200		122,133

				3,323,705
ROAD & RAIL — 2.10%
Fukuyama Transporting Co. Ltd.		26,000		159,222
Hitachi Transport System Ltd.		13,000		313,838
Nankai Electric Railway Co. Ltd.		130,000		666,182
Nikkon Holdings Co. Ltd.		15,600		366,542
Nishi-Nippon Railroad Co. Ltd.		78,000		377,739
Sakai Moving Service Co. Ltd.		2,600		136,544
Sankyu Inc.		78,000		610,194
Seino Holdings Co. Ltd.		39,000		529,757
Senko Group Holdings Co. Ltd.		26,000		187,807
Sotetsu Holdings Inc.		104,000		504,597
Trancom Co. Ltd.		2,600		130,638

				3,983,060
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.25%
Advantest Corp.		41,600		692,829
Japan Material Co. Ltd.^a		5,200		127,425
Lasertec Corp.		10,400		188,043
Megachips Corp.^a		5,200		171,979
Micronics Japan Co. Ltd.^a		7,800		73,138
Mimasu Semiconductor Industry Co. Ltd.		2,600		41,790
Mitsui High-Tec Inc.		5,200		91,234
Sanken Electric Co. Ltd.		26,000		132,528
SCREEN Holdings Co. Ltd.		10,400		671,852
Shindengen Electric Manufacturing Co. Ltd.		26,000		170,325
Shinko Electric Industries Co. Ltd.		18,200		127,000
Sumco Corp.		57,200		839,862
Tokyo Seimitsu Co. Ltd.		10,400		356,714
ULVAC Inc.		10,400		571,688

				4,256,407
SOFTWARE — 1.47%
Broadleaf Co. Ltd.		10,400		77,296
Capcom Co. Ltd.		10,400		258,063
COLOPL Inc.^a		13,000		160,167
Fuji Soft Inc.		5,200		155,442
GungHo Online Entertainment Inc.		98,800		295,341


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Justsystems Corp.		7,800	$	174,129
Koei Tecmo Holdings Co. Ltd.		10,440		221,966
Marvelous Inc.^a		7,800		70,729
Miroku Jyoho Service Co. Ltd.		5,200		117,456
MTI Ltd.		7,800		52,090
NSD Co. Ltd.		10,400		191,917
OBIC Business Consultants Co. Ltd.		2,600		133,000
Square Enix Holdings Co. Ltd.		23,400		821,743
Systena Corp.		2,600		60,641

				2,789,980
SPECIALTY RETAIL — 2.83%
Adastria Co. Ltd.		5,200		114,668
Alpen Co. Ltd.		5,200		103,707
AOKI Holdings Inc.		10,400		138,339
Aoyama Trading Co. Ltd.		13,000		476,013
Arcland Sakamoto Co. Ltd.		5,200		73,753
Asahi Co. Ltd.		5,200		58,161
Autobacs Seven Co. Ltd.		18,200		299,971
BIC Camera Inc.		23,400		278,733
Chiyoda Co. Ltd.		5,200		131,772
DCM Holdings Co. Ltd.		26,000		233,873
EDION Corp.^a		18,200		174,790
Geo Holdings Corp.		7,800		110,345
IDOM Inc.^a		15,600		101,628
JINS Inc.		2,600		152,372
Joshin Denki Co. Ltd.		6,000		93,222
Joyful Honda Co. Ltd.		7,800		217,572
K’s Holdings Corp.		20,800		464,532
Keiyo Co. Ltd.		7,800		53,224
Kohnan Shoji Co. Ltd.		7,800		145,993
Komeri Co. Ltd.		7,800		226,431
Laox Co. Ltd.^a,b		7,800		34,939
Nishimatsuya Chain Co. Ltd.		13,000		136,189
Nojima Corp.		7,800		149,041
PAL GROUP Holdings Co. Ltd.		2,600		82,800
PC Depot Corp.^a		10,440		76,076
Right On Co. Ltd.^a		2,600		21,497
Sac’s Bar Holdings Inc.		5,200		61,610
Sanrio Co. Ltd.		13,000		237,062
Shimachu Co. Ltd.		10,400		267,890
T-Gaia Corp.		5,200		102,006
United Arrows Ltd.		5,200		173,396
VT Holdings Co. Ltd.		20,800		114,149
Xebio Holdings Co. Ltd.		5,200		102,479
Yellow Hat Ltd.		5,200		144,103

				5,352,336


Security	Shares		Value
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.62%
Eizo Corp.		5,200	$	216,864
Elecom Co. Ltd.		2,600		54,381
Hitachi Maxell Ltd.		10,400		248,235
MCJ Co. Ltd.		7,800		91,068
Melco Holdings Inc.		2,600		83,273
Riso Kagaku Corp.		5,200		98,510
Roland DG Corp.		2,600		64,350
Toshiba TEC Corp.		26,000		146,466
Wacom Co. Ltd.		36,400		168,341

				1,171,488
TEXTILES, APPAREL & LUXURY GOODS — 1.14%
Descente Ltd.		10,400		133,142
Fujibo Holdings Inc.		2,600		79,375
Goldwin Inc.		1,000		71,506
Gunze Ltd.		52,000		231,983
Japan Wool Textile Co. Ltd. (The)		18,200		156,269
Kurabo Industries Ltd.		52,000		133,709
Onward Holdings Co. Ltd.		26,000		190,642
Seiko Holdings Corp.		26,000		117,881
Seiren Co. Ltd.		13,000		230,565
TSI Holdings Co. Ltd.		18,200		131,961
Tsutsumi Jewelry Co. Ltd.		2,600		44,932
Unitika Ltd.^b		156,000		114,810
Wacoal Holdings Corp.		26,000		370,416
Yondoshi Holdings Inc.		5,200		145,048

				2,152,239
TRADING COMPANIES & DISTRIBUTORS — 2.54%
Hanwa Co. Ltd.		52,000		349,155
Inaba Denki Sangyo Co. Ltd.		7,800		318,208
Inabata & Co. Ltd.		10,400		149,112
Iwatani Corp.		52,000		315,137
Japan Pulp & Paper Co. Ltd.		26,000		109,141
Kamei Corp.		5,200		77,013
Kanamoto Co. Ltd.		7,800		277,812
Kanematsu Corp.		104,000		244,739
Kuroda Electric Co. Ltd.		7,800		137,134
MonotaRO Co. Ltd.^a		15,600		476,958
Nagase & Co. Ltd.		28,600		477,879
Nippon Steel & Sumikin Bussan Corp.		2,744		147,846
Nishio Rent All Co. Ltd.		5,200		175,759
Sojitz Corp.		319,800		857,178
Trusco Nakayama Corp.		10,400		243,794
Wakita & Co. Ltd.		10,400		120,763


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Yamazen Corp.		15,600	$	158,183
Yuasa Trading Co. Ltd.		5,200		175,286

				4,811,097
TRANSPORTATION INFRASTRUCTURE — 0.32%
Mitsubishi Logistics Corp.^a		26,000		314,192
Nissin Corp.		26,000		127,331
Sumitomo Warehouse Co. Ltd. (The)		26,000		171,270

				612,793
WIRELESS TELECOMMUNICATION SERVICES — 0.02%
Japan Communications Inc.^a,b		31,200		40,538

				40,538

TOTAL COMMON STOCKS (Cost: $174,812,962)				188,784,977

SHORT-TERM INVESTMENTS — 5.01%

MONEY MARKET FUNDS — 5.01%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		9,394,924		9,397,742


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		78,081	$	78,081

				9,475,823

TOTAL SHORT-TERM INVESTMENTS (Cost: $9,474,595)				9,475,823

TOTAL INVESTMENTS IN SECURITIES — 104.78% (Cost: $184,287,557)^f				198,260,800
Other Assets, Less Liabilities — (4.78)%				(9,044,838	)

NET ASSETS — 100.00%			$	189,215,962

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

^b	Non-income earning security.

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $186,365,090. Net unrealized appreciation was $11,895,710, of which $22,546,731 represented gross unrealized appreciation on investments and $10,651,021 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash
Funds: Institutional,
SL Agency Shares		6,934,592		2,460,332^b		—		9,394,924	$	9,397,742	$	279	$	1,228	$	—^c
BlackRock Cash
Funds: Treasury,
SL Agency Shares		14,128		63,953^b		—		78,081		78,081		1		—		436

									$	9,475,823	$	280	$	1,228	$	436

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN SMALL-CAP ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	188,784,977	$	—	$	—	$	188,784,977
Money market funds		9,475,823		—		—		9,475,823

Total	$	198,260,800	$	—	$	—	$	198,260,800

See notes to financial statements.


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI MALAYSIA ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.73%

AIRLINES — 1.03%
AirAsia Bhd		5,793,700	$	4,504,176

				4,504,176
AUTOMOBILES — 0.58%
UMW Holdings Bhd^a		1,795,400		2,556,148

				2,556,148
BANKS — 31.33%
Alliance Financial Group Bhd		3,873,300		3,482,841
AMMB Holdings Bhd		6,385,437		6,399,642
CIMB Group Holdings Bhd		15,700,212		26,029,154
Hong Leong Bank Bhd		2,504,840		9,056,253
Hong Leong Financial Group Bhd		887,400		3,511,781
Malayan Banking Bhd		13,858,881		30,700,155
Public Bank Bhd		11,222,080		54,132,970
RHB Bank Bhd		3,091,802		3,656,152
RHB Bank Bhd New^a,b		1,621,200		4

				136,968,952
CHEMICALS — 3.55%
Petronas Chemicals Group Bhd		9,250,300		15,509,226

				15,509,226
CONSTRUCTION & ENGINEERING — 3.88%
Gamuda Bhd		6,573,300		8,219,511
IJM Corp. Bhd		11,156,180		8,725,358

				16,944,869
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.49%
Telekom Malaysia Bhd		4,342,400		6,538,258

				6,538,258
ELECTRIC UTILITIES — 10.01%
Tenaga Nasional Bhd		13,086,812		43,760,608

				43,760,608
ENERGY EQUIPMENT & SERVICES — 2.40%
Dialog Group Bhd		11,722,754		5,627,361
Sapura Energy Bhd		15,001,700		4,847,757

				10,475,118
FOOD PRODUCTS — 7.18%
Felda Global Ventures Holdings Bhd^c		5,606,600		2,034,944
Genting Plantations Bhd		929,000		2,314,614
IOI Corp. Bhd		8,716,930		9,267,033
Kuala Lumpur Kepong Bhd		1,852,100		10,642,907
PPB Group Bhd		1,826,466		7,133,931

				31,393,429


Security	Shares		Value
GAS UTILITIES — 2.63%
Petronas Gas Bhd		2,669,900	$	11,503,608

				11,503,608
HEALTH CARE EQUIPMENT & SUPPLIES — 0.92%
Hartalega Holdings Bhd		2,532,900		4,027,255

				4,027,255
HEALTH CARE PROVIDERS & SERVICES — 2.54%
IHH Healthcare Bhd		7,931,000		11,124,386

				11,124,386
HOTELS, RESTAURANTS & LEISURE — 8.14%
Genting Bhd		8,739,100		19,870,428
Genting Malaysia Bhd		11,443,400		15,729,483

				35,599,911
INDUSTRIAL CONGLOMERATES — 5.59%
HAP Seng Consolidated Bhd		2,399,000		5,100,789
Sime Darby Bhd		9,174,355		19,334,784

				24,435,573
MARINE — 2.05%
MISC Bhd		5,158,020		8,986,224

				8,986,224
MEDIA — 0.86%
Astro Malaysia Holdings Bhd		6,024,000		3,780,429

				3,780,429
MULTI-UTILITIES — 1.88%
YTL Corp. Bhd		16,830,912		5,635,922
YTL Power International Bhd		7,826,800		2,584,191

				8,220,113
OIL, GAS & CONSUMABLE FUELS — 1.26%
Petronas Dagangan Bhd		962,200		5,497,642

				5,497,642
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.68%
IOI Properties Group Bhd		6,378,825		2,972,453

				2,972,453
TOBACCO — 1.31%
British American Tobacco Malaysia Bhd		553,100		5,722,037

				5,722,037
TRANSPORTATION INFRASTRUCTURE — 2.33%
Malaysia Airports Holdings Bhd		3,195,500		6,734,457
Westports Holdings Bhd		3,938,000		3,458,026

				10,192,483
WIRELESS TELECOMMUNICATION SERVICES — 8.09%
Axiata Group Bhd		10,378,500		11,981,268


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (Continued)

iSHARES^® MSCI MALAYSIA ETF

August 31, 2017


Security	Shares		Value
DiGi.Com Bhd^c		11,986,800	$	13,585,321
Maxis Bhd^c		7,232,200		9,788,576

				35,355,165

TOTAL COMMON STOCKS
(Cost: $298,898,242)				436,068,063

SHORT-TERM INVESTMENTS — 2.98%

MONEY MARKET FUNDS — 2.98%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		12,721,787		12,725,604
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		290,485		290,485

				13,016,089

TOTAL SHORT-TERM INVESTMENTS
(Cost: $13,013,454)				13,016,089


	Value
TOTAL INVESTMENTS IN SECURITIES — 102.71%
(Cost: $311,911,696)^g	$	449,084,152
Other Assets, Less Liabilities — (2.71)%		(11,860,277	)

NET ASSETS — 100.00%	$	437,223,875

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $338,581,758. Net unrealized appreciation was $110,502,394, of which $140,542,968 represented gross unrealized appreciation on investments and $30,040,574 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash
Funds: Institutional,
SL Agency Shares		25,872,953		—			(13,151,166	)^b		12,721,787	$	12,725,604	$	768	$	2,635	$	—^c
BlackRock Cash
Funds: Treasury,
SL Agency Shares		228,825		61,660	^b		—			290,485		290,485		5		—		1,824

											$	13,016,089	$	773	$	2,635	$	1,824

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI MALAYSIA ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	436,068,059	$	—	$	4	$	436,068,063
Money market funds		13,016,089		—		—		13,016,089

Total	$	449,084,148	$	—	$	4	$	449,084,152

See notes to financial statements.


SCHEDULES OF INVESTMENTS			39

Schedule of Investments

iSHARES^® MSCI PACIFIC ex JAPAN ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.21%

AUSTRALIA — 58.03%
AGL Energy Ltd.		1,217,740	$	23,170,745
Alumina Ltd.		4,459,150		7,497,960
Amcor Ltd./Australia		2,099,562		26,827,452
AMP Ltd.		5,355,473		21,663,229
APA Group		2,019,281		14,190,107
Aristocrat Leisure Ltd.		981,997		16,488,692
ASX Ltd.		350,720		15,210,525
Aurizon Holdings Ltd.		3,732,353		14,683,161
AusNet Services		3,254,667		4,491,702
Australia & New Zealand Banking Group Ltd.		5,321,857		124,098,265
Bank of Queensland Ltd.		704,533		7,035,294
Bendigo & Adelaide Bank Ltd.		864,292		8,191,880
BGP Holdings PLC^a,b		27,004,595		321
BHP Billiton Ltd.		5,821,043		126,412,328
BlueScope Steel Ltd.		1,038,006		8,949,208
Boral Ltd.		2,117,601		11,202,763
Brambles Ltd.		2,886,027		21,311,070
Caltex Australia Ltd.		473,866		12,549,521
Challenger Ltd./Australia		1,051,235		10,455,686
CIMIC Group Ltd.		175,824		5,864,072
Coca-Cola Amatil Ltd.		1,039,209		6,635,199
Cochlear Ltd.		103,666		12,844,002
Commonwealth Bank of Australia		3,136,515		188,569,631
Computershare Ltd.		841,023		9,372,153
Crown Resorts Ltd.		723,297		6,654,721
CSL Ltd.		825,597		84,157,728
Dexus		1,838,863		13,986,954
Domino’s Pizza Enterprises Ltd.^c		113,072		3,869,823
Flight Centre Travel Group Ltd.^c		100,911		3,869,815
Fortescue Metals Group Ltd.		2,816,636		13,426,424
Goodman Group		3,234,814		21,269,585
GPT Group (The)		3,265,072		12,948,455
Harvey Norman Holdings Ltd.		1,015,495		3,286,193
Healthscope Ltd.		3,173,067		4,379,088
Incitec Pivot Ltd.		3,056,016		8,071,515
Insurance Australia Group Ltd.		4,293,791		21,830,019
James Hardie Industries PLC		797,712		11,192,552
LendLease Group		998,072		13,125,068
Macquarie Group Ltd.		586,694		40,391,181


Security	Shares		Value
Medibank Pvt Ltd.		4,992,646	$	12,038,144
Mirvac Group		6,691,342		12,312,788
National Australia Bank Ltd.		4,850,002		116,172,688
Newcrest Mining Ltd.		1,389,645		25,185,191
Oil Search Ltd.		2,492,535		13,265,358
Orica Ltd.		678,815		10,945,711
Origin Energy Ltd.^b		3,181,011		19,301,088
Qantas Airways Ltd.		831,944		3,774,377
QBE Insurance Group Ltd.		2,486,545		20,589,794
Ramsay Health Care Ltd.		257,091		13,929,205
REA Group Ltd.^c		95,834		5,039,510
Rio Tinto Ltd.		769,176		41,387,266
Santos Ltd.^b		3,403,458		10,149,939
Scentre Group		9,657,673		29,567,525
Seek Ltd.		597,316		7,935,497
Sonic Healthcare Ltd.		715,532		12,428,776
South32 Ltd.		9,649,118		22,347,330
Stockland		4,372,660		15,364,011
Suncorp Group Ltd.		2,340,971		24,193,329
Sydney Airport		1,996,006		11,715,174
Tabcorp Holdings Ltd.		1,537,620		5,012,403
Tatts Group Ltd.		2,399,970		7,823,531
Telstra Corp. Ltd.		7,559,139		22,003,591
TPG Telecom Ltd.^c		677,165		2,948,642
Transurban Group		3,722,298		35,900,450
Treasury Wine Estates Ltd.		1,335,161		15,334,068
Vicinity Centres		6,100,974		12,678,143
Wesfarmers Ltd.		2,055,826		69,495,227
Westfield Corp.		3,587,564		21,141,882
Westpac Banking Corp.		6,084,658		150,910,421
Woodside Petroleum Ltd.		1,374,861		31,438,268
Woolworths Ltd.		2,346,975		48,399,067

				1,810,902,481
HONG KONG — 29.09%
AIA Group Ltd.		21,892,014		167,970,848
ASM Pacific Technology Ltd.		485,800		6,008,527
Bank of East Asia Ltd. (The)^c		2,185,320		10,010,122
BOC Hong Kong Holdings Ltd.		6,709,500		34,162,816
Cheung Kong Property Holdings Ltd.		4,738,732		41,596,239
CK Hutchison Holdings Ltd.		4,892,232		64,009,169
CK Infrastructure Holdings Ltd.		1,206,708		10,931,597
CLP Holdings Ltd.		2,981,500		31,485,664
First Pacific Co. Ltd./Hong Kong		3,970,500		3,191,031


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI PACIFIC ex JAPAN ETF

August 31, 2017


Security	Shares		Value
Galaxy Entertainment Group Ltd.		4,259,000	$	26,719,253
Hang Lung Group Ltd.		1,590,000		5,993,139
Hang Lung Properties Ltd.		3,631,736		8,835,200
Hang Seng Bank Ltd.		1,396,800		32,124,910
Henderson Land Development Co. Ltd.		2,180,002		13,509,330
HK Electric Investments & HK Electric Investments Ltd.^d		4,861,500		4,459,949
HKT Trust & HKT Ltd.		6,802,338		8,778,388
Hong Kong & China Gas Co. Ltd.		15,217,237		28,776,151
Hong Kong Exchanges & Clearing Ltd.		2,108,800		57,553,511
Hongkong Land Holdings Ltd.		2,140,900		15,864,069
Hysan Development Co. Ltd.		1,139,830		5,272,102
I-CABLE Communications Ltd.^b		1,750,368		64,858
Jardine Matheson Holdings Ltd.		393,200		25,837,172
Jardine Strategic Holdings Ltd.		401,700		17,614,545
Kerry Properties Ltd.		1,168,500		4,628,344
Li & Fung Ltd.		10,739,200		4,843,751
Link REIT		4,009,086		33,091,243
Melco Resorts & Entertainment Ltd. ADR		448,354		9,841,370
MGM China Holdings Ltd.^c		1,707,200		3,420,311
MTR Corp. Ltd.		2,675,286		15,638,551
New World Development Co. Ltd.		10,607,921		14,502,713
NWS Holdings Ltd.		2,771,000		5,324,999
PCCW Ltd.		7,854,867		4,375,831
Power Assets Holdings Ltd.		2,523,000		22,243,418
Sands China Ltd.^c		4,384,400		19,635,112
Shangri-La Asia Ltd.		2,287,000		3,828,006
Sino Land Co. Ltd.		5,724,800		9,904,081
SJM Holdings Ltd.		3,532,000		3,082,312
Sun Hung Kai Properties Ltd.		2,622,000		43,753,324
Swire Pacific Ltd. Class A		902,500		9,184,768
Swire Properties Ltd.		2,102,200		7,279,114
Techtronic Industries Co. Ltd.		2,472,207		12,793,078
WH Group Ltd.^d		14,674,000		15,336,879
Wharf Holdings Ltd. (The)		2,227,600		21,218,762
Wheelock & Co. Ltd.		1,474,000		11,027,056
Wynn Macau Ltd.		2,827,200		6,206,044
Yue Yuen Industrial Holdings Ltd.		1,324,000		5,734,861

				907,662,518


Security	Shares		Value
NEW ZEALAND — 1.38%
Auckland International Airport Ltd.		1,725,961	$	8,393,345
Contact Energy Ltd.		1,287,323		5,144,653
Fletcher Building Ltd.		1,251,604		7,314,614
Mercury NZ Ltd.		1,268,113		3,124,285
Meridian Energy Ltd.		2,304,581		4,869,096
Ryman Healthcare Ltd.		728,771		4,739,268
Spark New Zealand Ltd.		3,318,987		9,306,184

				42,891,445
SINGAPORE — 10.71%
Ascendas REIT		4,526,225		8,865,802
CapitaLand Commercial Trust		3,817,700		4,891,604
CapitaLand Ltd.		4,679,600		13,025,691
CapitaLand Mall Trust		4,568,900		7,300,820
City Developments Ltd.		751,000		6,475,854
ComfortDelGro Corp. Ltd.		3,950,900		6,662,416
DBS Group Holdings Ltd.		3,225,900		48,982,370
Genting Singapore PLC		10,976,600		9,578,256
Global Logistic Properties Ltd.		4,834,200		11,533,732
Golden Agri-Resources Ltd.		12,876,587		3,745,399
Hutchison Port Holdings Trust^c		9,516,700		4,330,098
Jardine Cycle & Carriage Ltd.		176,400		5,186,783
Keppel Corp. Ltd.		2,651,600		12,320,763
Oversea-Chinese Banking Corp. Ltd.^c		5,700,024		46,884,586
SATS Ltd.		1,237,500		4,401,418
SembCorp Industries Ltd.		1,811,840		3,975,908
Singapore Airlines Ltd.		972,000		7,379,470
Singapore Exchange Ltd.		1,471,400		8,126,289
Singapore Press Holdings Ltd.^c		2,364,117		4,804,833
Singapore Technologies Engineering Ltd.		2,846,100		7,649,680
Singapore Telecommunications Ltd.		14,856,028		40,476,659
StarHub Ltd.^c		1,075,300		2,066,666
Suntec REIT		4,459,200		6,222,521
United Overseas Bank Ltd.		2,382,000		42,149,823
UOL Group Ltd.		879,700		5,298,929
Wilmar International Ltd.		2,934,600		7,174,427
Yangzijiang Shipbuilding Holdings Ltd.		4,216,400		4,641,766

				334,152,563

TOTAL COMMON STOCKS
(Cost: $2,981,636,898)				3,095,609,007


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (Continued)

iSHARES^® MSCI PACIFIC ex JAPAN ETF

August 31, 2017


Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.46%

MONEY MARKET FUNDS — 1.46%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		44,795,138	$	44,808,577
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		800,222		800,222

				45,608,799

TOTAL SHORT-TERM INVESTMENTS
(Cost: $45,604,344)				45,608,799

TOTAL INVESTMENTS IN SECURITIES — 100.67%
(Cost: $3,027,241,242)^h				3,141,217,806
Other Assets, Less Liabilities — (0.67)%				(20,791,550	)

NET ASSETS — 100.00%			$	3,120,426,256

ADR — American Depositary Receipts

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

^b	Non-income earning security.

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $3,104,951,882. Net unrealized appreciation was $36,265,924, of which $370,963,150 represented gross unrealized appreciation on investments and $334,697,226 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash
Funds: Institutional,
SL Agency Shares		38,660,645		6,134,493	^b		—			44,795,138	$	44,808,577	$	12,531	$	4,455	$	—^c
BlackRock Cash
Funds: Treasury,
SL Agency Shares		1,504,324		—			(704,102	)^b		800,222		800,222		30		—		12,555

											$	45,608,799	$	12,561	$	4,455	$	12,555

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI PACIFIC ex JAPAN ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,095,608,686	$	—	$	321	$	3,095,609,007
Money market funds		45,608,799		—		—		45,608,799

Total	$	3,141,217,485	$	—	$	321	$	3,141,217,806

See notes to financial statements.


SCHEDULES OF INVESTMENTS			43

Schedule of Investments

iSHARES^® MSCI SINGAPORE CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.33%

AEROSPACE & DEFENSE — 2.63%
Singapore Technologies Engineering Ltd.		5,871,200	$	15,780,471

				15,780,471
AIRLINES — 2.59%
Singapore Airlines Ltd.		2,044,567		15,522,449

				15,522,449
BANKS — 34.78%
DBS Group Holdings Ltd.		4,964,600		75,382,954
Oversea-Chinese Banking Corp. Ltd.^a		8,579,950		70,572,932
United Overseas Bank Ltd.		3,549,600		62,810,669

				208,766,555
CAPITAL MARKETS — 2.76%
Singapore Exchange Ltd.		2,996,100		16,546,944

				16,546,944
DISTRIBUTORS — 2.06%
Jardine Cycle & Carriage Ltd.		421,444		12,391,943

				12,391,943
DIVERSIFIED TELECOMMUNICATION SERVICES — 9.97%
Singapore Telecommunications Ltd.		21,953,668		59,814,854

				59,814,854
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 8.85%
Ascendas REIT		9,161,181		17,944,581
CapitaLand Commercial Trust		5,000,500		6,407,121
CapitaLand Mall Trust		9,521,300		15,214,449
Suntec REIT		9,700,300		13,536,133

				53,102,284
FOOD PRODUCTS — 4.34%
Golden Agri-Resources Ltd.		30,530,328		8,880,324
Wilmar International Ltd.		7,016,600		17,153,985

				26,034,309
HOTELS, RESTAURANTS & LEISURE — 3.31%
Genting Singapore PLC		22,758,400		19,859,134

				19,859,134
INDUSTRIAL CONGLOMERATES — 5.51%
Keppel Corp. Ltd.		5,161,600		23,983,576
SembCorp Industries Ltd.		4,149,300		9,105,238

				33,088,814


Security	Shares		Value
MACHINERY — 1.79%
Yangzijiang Shipbuilding Holdings Ltd.		9,762,500	$	10,747,377

				10,747,377
MEDIA — 1.94%
Singapore Press Holdings Ltd.^a		5,734,200		11,654,192

				11,654,192
REAL ESTATE MANAGEMENT & DEVELOPMENT — 12.18%
CapitaLand Ltd.		7,488,900		20,845,392
City Developments Ltd.		1,627,000		14,029,580
Global Logistic Properties Ltd.		11,016,100		26,282,889
UOL Group Ltd.		1,989,200		11,982,074

				73,139,935
ROAD & RAIL — 2.32%
ComfortDelGro Corp. Ltd.		8,272,900		13,950,619

				13,950,619
TRANSPORTATION INFRASTRUCTURE — 3.33%
Hutchison Port Holdings Trust^a		22,052,800		10,034,024
SATS Ltd.		2,789,900		9,922,840

				19,956,864
WIRELESS TELECOMMUNICATION SERVICES — 0.97%
StarHub Ltd.^a		3,042,000		5,846,554

				5,846,554

TOTAL COMMON STOCKS
(Cost: $610,608,617)				596,203,298

SHORT-TERM INVESTMENTS — 2.92%

MONEY MARKET FUNDS — 2.92%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^b,c,d		17,309,109		17,314,302
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^b,c		226,142		226,142

				17,540,444

TOTAL SHORT-TERM INVESTMENTS (Cost: $17,536,267)				17,540,444


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SINGAPORE CAPPED ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 102.25% (Cost: $628,144,884)^e	$	613,743,742
Other Assets, Less Liabilities — (2.25)%		(13,476,082	)

NET ASSETS — 100.00%	$	600,267,660

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

^b	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $643,194,593. Net unrealized depreciation was $29,421,895, of which $43,071,866 represented gross unrealized appreciation on investments and $72,493,761 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash
Funds: Institutional,
SL Agency Shares		51,547,511		—		(34,238,402	)^b		17,309,109	$	17,314,302	$	1,512	$	4,176	$	—^c
BlackRock Cash
Funds: Treasury,
SL Agency Shares		748,216		—		(522,074	)^b		226,142		226,142		4		—		2,510

										$	17,540,444	$	1,516	$	4,176	$	2,510

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description

Number of
Contracts

Expiration
Date

Notional
Amount
(000)

Value/
Unrealized
Appreciation
(Depreciation)

Long Contracts:

MSCI Singapore Index

146

Sep 2017

3,927

28,956


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI SINGAPORE CAPPED ETF

August 31, 2017

Schedule 3 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	596,203,298	$	—	$	—	$	596,203,298
Money market funds		17,540,444		—		—		17,540,444

Total	$	613,743,742	$	—	$	—	$	613,743,742

Derivative financial instruments^a:
Assets:
Futures contracts	$	28,956	$	—	$	—	$	28,956

Total	$	28,956	$	—	$	—	$	28,956

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

See notes to financial statements.


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI TAIWAN CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.18%

AIRLINES — 0.52%
China Airlines Ltd.		24,192,761	$	10,261,020
EVA Airways Corp.		17,650,278		9,182,192

				19,443,212
AUTO COMPONENTS — 0.70%
Cheng Shin Rubber Industry Co. Ltd.^a		13,104,670		26,357,847

				26,357,847
AUTOMOBILES — 0.18%
Yulon Motor Co. Ltd.^a		8,064,362		6,947,659

				6,947,659
BANKS — 10.17%
Chang Hwa Commercial Bank Ltd.		37,046,848		20,254,912
China Development Financial Holding Corp.		95,760,508		29,890,453
CTBC Financial Holding Co. Ltd.		113,904,325		73,787,387
E.Sun Financial Holding Co. Ltd.		61,659,058		38,001,872
First Financial Holding Co. Ltd.^a		66,528,171		43,207,268
Hua Nan Financial Holdings Co. Ltd.		52,920,746		29,547,519
Mega Financial Holding Co. Ltd.		71,568,271		57,507,889
SinoPac Financial Holdings Co. Ltd.		71,568,118		23,003,106
Taishin Financial Holding Co. Ltd.		65,181,469		28,941,704
Taiwan Business Bank		35,273,697		9,747,925
Taiwan Cooperative Financial Holding Co. Ltd.		55,027,014		28,991,336

				382,881,371
BIOTECHNOLOGY — 0.39%
TaiMed Biologics Inc.^a,b		2,016,000		14,495,908

				14,495,908
CAPITAL MARKETS — 0.78%
Yuanta Financial Holding Co. Ltd.		67,536,248		29,315,910

				29,315,910
CHEMICALS — 6.36%
Formosa Chemicals & Fibre Corp.		21,168,610		66,566,191
Formosa Plastics Corp.		27,216,518		84,682,430


Security	Shares		Value
Nan Ya Plastics Corp.		31,248,938	$	78,901,523
Taiwan Fertilizer Co. Ltd.		7,056,000		9,410,650

				239,560,794
CONSTRUCTION MATERIALS — 1.12%
Asia Cement Corp.		17,136,136		15,529,783
Taiwan Cement Corp.		23,184,504		26,772,920

				42,302,703
DIVERSIFIED FINANCIAL SERVICES — 2.36%
Chailease Holding Co. Ltd.^a		7,056,937		19,221,320
Fubon Financial Holding Co. Ltd.		43,344,515		69,658,007

				88,879,327
DIVERSIFIED TELECOMMUNICATION SERVICES — 2.51%
Asia Pacific Telecom Co. Ltd.^b		20,160,000		6,913,947
Chunghwa Telecom Co. Ltd.		25,200,648		87,679,116

				94,593,063
ELECTRICAL EQUIPMENT — 0.35%
Teco Electric and Machinery Co. Ltd.		14,112,092		13,186,686
Ya Hsin Industrial Co. Ltd.^b,c		6,845,461		2

				13,186,688
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 18.26%
AU Optronics Corp.^a		60,480,830		24,850,469
Delta Electronics Inc.		12,542,180		68,780,635
General Interface Solution Holding Ltd.		1,008,000		12,074,356
Hon Hai Precision Industry Co. Ltd.		99,792,003		388,533,760
Innolux Corp.^a		62,496,873		30,441,832
Largan Precision Co. Ltd.		641,794		123,982,207
Pacific Electric Wire & Cable Co. Ltd.^b,c		197		—
Synnex Technology International Corp.		11,088,364		12,382,049
WPG Holdings Ltd.^a		13,104,744		17,065,391
Zhen Ding Technology Holding Ltd.^a		4,032,072		9,339,005

				687,449,704
FOOD & STAPLES RETAILING — 0.90%
President Chain Store Corp.		4,032,215		33,736,515

				33,736,515
FOOD PRODUCTS — 2.12%
Standard Foods Corp.^a		5,242,056		13,392,177
Uni-President Enterprises Corp.		31,248,189		66,474,494

				79,866,671


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (Continued)

iSHARES^® MSCI TAIWAN CAPPED ETF

August 31, 2017


Security	Shares		Value
HOUSEHOLD DURABLES — 0.29%
Nien Made Enterprise Co. Ltd.		1,008,000	$	10,838,530

				10,838,530
INDUSTRIAL CONGLOMERATES — 0.49%
Far Eastern New Century Corp.		23,184,843		18,553,099

				18,553,099
INSURANCE — 3.48%
Cathay Financial Holding Co. Ltd.		53,424,483		87,184,989
China Life Insurance Co. Ltd./Taiwan^a		24,192,193		26,694,060
Shin Kong Financial Holding Co. Ltd.^a		59,472,205		17,282,588

				131,161,637
LEISURE PRODUCTS — 0.51%
Giant Manufacturing Co. Ltd.^a		2,016,590		10,190,198
Merida Industry Co. Ltd.^a		2,016,100		8,851,627

				19,041,825
MACHINERY — 0.48%
Hiwin Technologies Corp.^a		2,056,862		18,231,571

				18,231,571
MARINE — 0.35%
Evergreen Marine Corp. Taiwan Ltd.^b		17,136,673		13,060,190

				13,060,190
METALS & MINING — 1.82%
China Steel Corp.^a		81,648,977		68,448,892

				68,448,892
OIL, GAS & CONSUMABLE FUELS — 0.85%
Formosa Petrochemical Corp.		9,072,950		32,017,932

				32,017,932
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.52%
Highwealth Construction Corp.^a		7,056,790		11,223,895
Ruentex Development Co. Ltd.^a,b		8,468,127		8,291,632

				19,515,527
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 30.14%
Advanced Semiconductor Engineering Inc.^a		43,344,864		52,279,832
Globalwafers Co. Ltd.^a		1,308,000		10,380,265
MediaTek Inc.		9,603,175		86,075,047
Nanya Technology Corp.^a		6,048,000		12,966,155
Novatek Microelectronics Corp.		4,892,544		19,048,806
Phison Electronics Corp.		1,008,698		13,603,502


Security	Shares		Value
Powertech Technology Inc.		5,040,036	$	15,297,634
Realtek Semiconductor Corp.		3,932,063		15,244,089
Siliconware Precision Industries Co. Ltd.		15,120,834		23,949,629
Taiwan Semiconductor Manufacturing Co. Ltd.		116,010,882		832,246,130
United Microelectronics Corp.^a		81,648,501		40,717,384
Vanguard International Semiconductor Corp.^a		7,056,000		12,742,371

				1,134,550,844
SPECIALTY RETAIL — 0.63%
Hotai Motor Co. Ltd.^a		2,016,000		23,747,904

				23,747,904
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 9.14%
Acer Inc.^a		23,184,737		11,677,259
Advantech Co. Ltd.		2,218,614		16,357,123
Asustek Computer Inc.		4,658,857		38,593,534
Catcher Technology Co. Ltd.^a		4,409,743		56,109,921
Chicony Electronics Co. Ltd.		4,053,050		10,179,966
Compal Electronics Inc.^a		30,240,554		21,744,260
Foxconn Technology Co. Ltd.^a		7,109,499		22,568,342
HTC Corp.^a,b		5,040,884		11,475,156
Inventec Corp.		19,152,868		15,199,681
Lite-On Technology Corp.		15,173,071		22,448,644
Micro-Star International Co. Ltd.^a		5,040,000		11,473,144
Pegatron Corp.^a		13,104,037		41,249,992
Quanta Computer Inc.		18,144,240		41,303,863
Transcend Information Inc.^a		2,016,905		6,014,827
Wistron Corp.		18,683,130		17,643,699

				344,039,411
TEXTILES, APPAREL & LUXURY GOODS — 1.76%
Eclat Textile Co. Ltd.^a		1,400,601		17,171,622
Feng TAY Enterprise Co. Ltd.^a		3,024,476		14,331,160
Formosa Taffeta Co. Ltd.		7,056,515		7,014,661
Pou Chen Corp.		15,120,103		19,614,700
Ruentex Industries Ltd.^a		5,040,262		8,108,443

				66,240,586
TRANSPORTATION INFRASTRUCTURE — 0.33%
Taiwan High Speed Rail Corp.		13,992,000		12,332,655

				12,332,655


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI TAIWAN CAPPED ETF

August 31, 2017


Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 1.67%
Far EasTone Telecommunications Co. Ltd.		11,088,259	$	26,894,879
Taiwan Mobile Co. Ltd.		10,080,609		36,074,946

				62,969,825

TOTAL COMMON STOCKS
(Cost: $1,856,365,909)				3,733,767,800

SHORT-TERM INVESTMENTS — 5.30%

MONEY MARKET FUNDS — 5.30%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		176,501,828		176,554,778
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		22,826,941		22,826,941

				199,381,719

TOTAL SHORT-TERM INVESTMENTS
(Cost: $199,349,974)				199,381,719


	Value
TOTAL INVESTMENTS IN SECURITIES — 104.48%
(Cost: $2,055,715,883)^g	$	3,933,149,519
Other Assets, Less Liabilities — (4.48)%		(168,659,122	)

NET ASSETS — 100.00%	$	3,764,490,397

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

^b	Non-income earning security.

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,267,494,080. Net unrealized appreciation was $1,665,778,027, of which $1,893,173,110 represented gross unrealized appreciation on investments and $227,395,083 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash
Funds: Institutional,
SL Agency Shares		116,215,500		60,286,328^b		—		176,501,828	$	176,554,778	$	(13,787	)	$	31,745	$	—^c
BlackRock Cash
Funds: Treasury,
SL Agency Shares		19,070,044		3,756,897^b		—		22,826,941		22,826,941		1,930			—		46,830

									$	199,381,719	$	(11,857	)	$	31,745	$	46,830

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


SCHEDULES OF INVESTMENTS			49

Schedule of Investments (Continued)

iSHARES^® MSCI TAIWAN CAPPED ETF

August 31, 2017

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description

Number of
Contracts

Expiration
Date

Notional
Amount
(000)

Value/
Unrealized
Appreciation
(Depreciation)

Long Contracts:

MSCI Taiwan Index

712

Sep 2017

28,209

122,588

Schedule 3 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,733,767,798	$	—	$	2	$	3,733,767,800
Money market funds		199,381,719		—		—		199,381,719

Total	$	3,933,149,517	$	—	$	2	$	3,933,149,519

Derivative financial instruments^a:
Assets:
Futures contracts	$	122,588	$	—	$	—	$	122,588

Total	$	122,588	$	—	$	—	$	122,588

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

See notes to financial statements.


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.27%

AIRLINES — 0.56%
Bangkok Airways PCL^a		1,908,500	$	1,069,059
Thai Airways International PCL NVDR^b		1,715,066		934,880

				2,003,939
AUTO COMPONENTS — 0.17%
Sri Trang Agro-Industry PCL NVDR^a		1,642,871		588,772

				588,772
BANKS — 18.95%
Bangkok Bank PCL Foreign		647,000		3,653,441
Kasikornbank PCL Foreign		3,063,000		19,463,725
Kasikornbank PCL NVDR		1,505,000		9,110,224
Kiatnakin Bank PCL NVDR		971,873		2,056,139
Krung Thai Bank PCL NVDR		9,116,000		5,133,841
LH Financial Group PCL NVDR		10,926,319		589,011
Siam Commercial Bank PCL (The) NVDR		4,611,700		20,902,299
Thanachart Capital PCL NVDR		1,541,300		2,170,028
Tisco Financial Group PCL NVDR		834,810		1,879,297
TMB Bank PCL NVDR		34,276,600		2,436,163

				67,394,168
BUILDING PRODUCTS — 0.30%
Dynasty Ceramic PCL NVDR		5,982,240		709,833
Vanachai Group PCL NVDR		1,021,400		344,517

				1,054,350
CAPITAL MARKETS — 0.06%
AIRA Capital Co. Ltd.^a		2,989,040		217,843

				217,843
CHEMICALS — 5.16%
Eastern Polymer Group PCL^a		2,566,300		888,795
Indorama Ventures PCL NVDR		3,766,710		4,424,083
PTT Global Chemical PCL NVDR		5,649,407		13,015,499

				18,328,377
CONSTRUCTION & ENGINEERING — 1.07%
CH Karnchang PCL NVDR^a		1,109,600		960,729
Italian-Thai Development PCL NVDR^a		4,423,348		556,832
Sino-Thai Engineering & Construction PCL NVDR		1,944,428		1,522,515
Unique Engineering & Construction PCL^a		1,387,200		760,338

				3,800,414


Security	Shares		Value
CONSTRUCTION MATERIALS — 4.47%
Siam Cement PCL (The) Foreign		778,800	$	11,727,149
Siam Cement PCL (The) NVDR		277,500		4,178,588

				15,905,737
CONSUMER FINANCE — 1.63%
Group Lease PCL^a		998,600		589,446
Krungthai Card PCL NVDR^a		270,700		970,134
Muangthai Leasing PCL^a		1,657,100		1,696,775
Ratchthani Leasing PCL NVDR		2,201,600		407,765
Srisawad Corp PCL NVDR^a		1,389,286		2,144,283

				5,808,403
CONTAINERS & PACKAGING — 0.08%
Polyplex Thailand PCL NVDR^a		823,700		297,678

				297,678
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.77%
Jasmine International PCL NVDR		5,813,768		1,365,680
Thaicom PCL NVDR^a		1,148,400		511,860
True Corp. PCL NVDR^b		26,103,518		4,402,340

				6,279,880
ELECTRICAL EQUIPMENT — 0.20%
Gunkul Engineering PCL NVDR^a		5,827,168		723,022

				723,022
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 2.47%
Cal-Comp Electronics Thailand PCL NVDR		4,758,812		461,478
Delta Electronics Thailand PCL NVDR		1,300,244		3,485,069
Hana Microelectronics PCL NVDR		1,469,200		1,935,778
KCE Electronics PCL NVDR		687,700		1,812,189
Samart Corp. PCL NVDR		1,291,337		528,902
SVI PCL NVDR		3,560,215		557,540

				8,780,956
FOOD & STAPLES RETAILING — 6.77%
CP ALL PCL NVDR		12,896,100		24,079,452

				24,079,452
FOOD PRODUCTS — 3.77%
Charoen Pokphand Foods PCL NVDR		7,867,100		6,456,211
GFPT PCL NVDR		1,314,100		759,847
Ichitan Group PCL NVDR^a		1,202,000		280,545
Khon Kaen Sugar Industry PCL NVDR		4,042,078		542,920
Malee Group PCL^a		292,700		357,005


SCHEDULES OF INVESTMENTS			51

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2017


Security	Shares		Value
Taokaenoi Food & Marketing PCL^a		903,200	$	530,414
Thai Union Group PCL NVDR		4,982,100		2,970,805
Thai Vegetable Oil PCL NVDR^a		1,027,853		882,211
Thaifoods Group PCL NVDR^a,b		3,344,700		619,482

				13,399,440
GAS UTILITIES — 0.04%
Scan Inter PCL^a		925,300		139,331

				139,331
HEALTH CARE PROVIDERS & SERVICES — 4.50%
Bangkok Chain Hospital PCL NVDR		3,176,525		1,415,828
Bangkok Dusit Medical Services PCL NVDR		10,108,500		6,362,525
Bumrungrad Hospital PCL NVDR		932,076		6,119,337
Chularat Hospital PCL NVDR		12,960,300		960,167
Vibhavadi Medical Center PCL NVDR		13,785,800		1,154,179

				16,012,036
HOTELS, RESTAURANTS & LEISURE — 2.07%
Erawan Group PCL (The) NVDR		3,204,300		588,653
Minor International PCL NVDR^a		5,641,110		6,753,023

				7,341,676
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 2.89%
BCPG PCL NVDR		1,564,100		734,828
CK Power PCL NVDR^a		4,816,460		498,979
Electricity Generating PCL NVDR		343,800		2,422,804
Global Power Synergy PCL NVDR		972,600		1,142,340
Glow Energy PCL NVDR		1,338,000		3,455,308
Inter Far East Energy Corp.^a,b,c		3,184,500		1
SPCG PCL NVDR		968,400		597,868
Superblock PCL^b		28,381,350		1,145,340
Thai Solar Energy PCL		1,900,800		286,222

				10,283,690
INDUSTRIAL CONGLOMERATES — 1.30%
Berli Jucker PCL NVDR		3,122,300		4,631,028

				4,631,028
INSURANCE — 0.10%
Thai Reinsurance PCL NVDR^a		6,577,140		352,577

				352,577
IT SERVICES — 0.10%
Forth Smart Service PCL NVDR		623,500		351,135

				351,135


Security	Shares		Value
MARINE — 0.31%
Precious Shipping PCL NVDR^a,b		1,420,200	$	436,261
Thoresen Thai Agencies PCL NVDR^a		2,339,089		648,083

				1,084,344
MEDIA — 1.40%
BEC World PCL NVDR		2,548,300		1,327,679
Major Cineplex Group PCL NVDR^a		1,137,800		1,027,978
Plan B Media PCL		2,756,400		485,618
RS PCL NVDR^a,b		1,180,300		547,406
VGI Global Media PCL NVDR^a		4,493,240		744,250
Workpoint Entertainment PCL		384,400		850,878

				4,983,809
METALS & MINING — 0.08%
STP & I PCL NVDR^a		1,289,710		266,060

				266,060
MULTILINE RETAIL — 0.64%
Robinson PCL NVDR^a		1,303,400		2,257,055

				2,257,055
OIL, GAS & CONSUMABLE FUELS — 17.55%
Bangchak Corp. PCL NVDR		902,500		1,032,826
Banpu PCL NVDR		5,279,200		2,798,191
Energy Absolute PCL NVDR^a		2,921,000		3,320,818
Energy Earth PCL NVDR		4,419,400		194,318
Esso Thailand PCL NVDR^b		3,172,600		1,156,105
IRPC PCL NVDR		26,106,300		4,677,985
PTT Exploration & Production PCL NVDR		3,627,084		9,557,893
PTT PCL NVDR		2,760,400		33,169,691
Siamgas & Petrochemicals PCL NVDR		957,300		461,280
Thai Oil PCL NVDR		2,130,200		6,046,419

				62,415,526
PHARMACEUTICALS — 0.24%
Mega Lifesciences PCL NVDR		906,700		853,316

				853,316
REAL ESTATE MANAGEMENT & DEVELOPMENT — 5.60%
Amata Corp. PCL NVDR		1,369,000		758,609
Ananda Development PCL NVDR		3,927,300		609,113
AP Thailand PCL NVDR^a		2,471,086		584,190
Bangkok Land PCL NVDR		26,333,400		1,435,430
Central Pattana PCL NVDR		3,514,600		7,620,876
Golden Land Property Development PCL NVDR		1,217,000		278,548


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2017


Security	Shares		Value
LPN Development PCL NVDR^a		1,506,847	$	490,105
Platinum Group PCL (The) NVDR		2,195,600		512,450
Quality Houses PCL NVDR^a		11,221,331		811,058
Sansiri PCL NVDR		14,586,637		913,724
SC Asset Corp. PCL NVDR		3,792,904		367,811
Siam Future Development PCL NVDR		2,263,428		408,992
Singha Estate PCL^a,b		6,273,200		770,807
Supalai PCL NVDR		1,560,800		1,186,876
TICON Industrial Connection PCL NVDR^a		1,201,291		535,435
U City PCL NVDR^b		720,084,900		433,721
Univentures PCL NVDR^a		1,747,100		460,386
WHA Corp. PCL NVDR		18,270,940		1,749,784

				19,927,915
ROAD & RAIL — 1.12%
BTS Group Holdings PCL NVDR		15,278,900		3,980,198

				3,980,198
SPECIALTY RETAIL — 2.31%
Beauty Community PCL^a		4,689,700		1,949,040
Big Camera Corp. PCL NVDR		2,289,500		249,601
Com7 PCL NVDR		934,200		371,373
Home Product Center PCL NVDR		10,298,071		3,101,361
PTG Energy PCL^a		1,530,800		968,131
Siam Global House PCL NVDR^a		3,497,403		1,579,914

				8,219,420
TEXTILES, APPAREL & LUXURY GOODS — 0.11%
MC Group PCL NVDR		943,300		400,558

				400,558
TRANSPORTATION INFRASTRUCTURE — 6.70%
Airports of Thailand PCL NVDR		11,194,100		18,373,090
Bangkok Aviation Fuel Services PCL NVDR^a		501,100		671,554
Bangkok Expressway & Metro PCL		19,529,453		4,587,554
Namyong Terminal PCL NVDR		1,136,200		174,510

				23,806,708
WATER UTILITIES — 0.47%
Eastern Water Resources Development and Management PCL NVDR		1,307,300		496,069
TTW PCL NVDR^a		3,627,166		1,190,668

				1,686,737


Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 4.31%
Advanced Info Service PCL NVDR		2,716,419	$	15,338,912

				15,338,912

TOTAL COMMON STOCKS
(Cost: $368,490,414)				352,994,462

WARRANTS — 0.02%

INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.00%
Superblock PCL NVDR (Expires 08/31/20)^b		6,394,650		2

				2
MEDIA — 0.02%
RS PCL NVDR (Expires 05/23/20)^a,b		317,620		55,001

				55,001

TOTAL WARRANTS
(Cost: $0)				55,003

SHORT-TERM INVESTMENTS — 4.57%

MONEY MARKET FUNDS — 4.57%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		15,082,493		15,087,018
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		1,168,228		1,168,228

				16,255,246

TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,250,721)				16,255,246

TOTAL INVESTMENTS IN SECURITIES — 103.86%
(Cost: $384,741,135)^g				369,304,711
Other Assets, Less Liabilities — (3.86)%				(13,714,684	)

NET ASSETS — 100.00%			$	355,590,027

NVDR — Non-Voting Depositary Receipts

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

^b	Non-income earning security.

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $394,743,847. Net unrealized depreciation was $25,439,136, of which $26,524,834 represented gross unrealized appreciation on investments and $51,963,970 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			53

Schedule of Investments (Continued)

iSHARES^® MSCI THAILAND CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash
Funds: Institutional,
SL Agency Shares		31,029,897		—		(15,947,404	)^b		15,082,493	$	15,087,018	$	5,852	$	4,525	$	—^c
BlackRock Cash
Funds: Treasury,
SL Agency Shares		1,099,513		68,715^b		—			1,168,228		1,168,228		68		—		4,660

										$	16,255,246	$	5,920	$	4,525	$	4,660

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	352,800,143	$	194,318	$	1	$	352,994,462
Warrants		55,001		2		—		55,003
Money market funds		16,255,246		—		—		16,255,246

Total	$	369,110,390	$	194,320	$	1	$	369,304,711

See notes to financial statements.


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF			iShares MSCI Malaysia ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	1,735,128,032		$	174,812,962		$	298,898,242
Affiliated (Note 2)		33,536,111			9,474,595			13,013,454

Total cost of investments in securities	$	1,768,664,143		$	184,287,557		$	311,911,696

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	1,846,352,556		$	188,784,977		$	436,068,063
Affiliated (Note 2)		33,541,855			9,475,823			13,016,089
Foreign currency, at value^b		11,433,330			111,494			698,875
Foreign currency pledged to broker for futures contracts, at value^b		552,256			—			—
Receivables:
Investment securities sold		1,499,526			—			—
Dividends and interest		3,814,052			312,006			878,330
Futures variation margin		106,502			—			—
Tax reclaims		—			4,051			—

Total Assets		1,897,300,077			198,688,351			450,661,357


LIABILITIES
Payables:
Investment securities purchased		7,710,106			—			538,887
Collateral for securities on loan (Note 1)		33,401,143			9,396,236			12,722,201
Investment advisory fees (Note 2)		741,598			76,153			176,394

Total Liabilities		41,852,847			9,472,389			13,437,482


NET ASSETS	$	1,855,447,230		$	189,215,962		$	437,223,875


Net assets consist of:
Paid-in capital	$	2,227,105,443		$	180,119,214		$	337,230,689
Undistributed (distributions in excess of) net investment income		12,327,044			(591,075	)		(8,211,868	)
Accumulated net realized loss		(495,312,848	)		(4,288,088	)		(28,971,709	)
Net unrealized appreciation		111,327,591			13,975,911			137,176,763

NET ASSETS	$	1,855,447,230		$	189,215,962		$	437,223,875


Shares outstanding^c		75,150,000			2,600,000			13,650,000	^d


Net asset value per share	$	24.69		$	72.78		$	32.03	^d

^a	Securities on loan with values of $31,742,786, $8,973,435 and $12,017,350, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker for futures contracts: $11,994,416, $110,647 and $695,311, respectively.

^c	$0.001 par value, number of shares authorized: 375 million, 500 million and 300 million, respectively.

^d	Shares outstanding and net asset value per share reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


FINANCIAL STATEMENTS			55

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Pacific ex Japan ETF			iShares MSCI Singapore Capped ETF			iShares MSCI Taiwan Capped ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	2,981,636,898		$	610,608,617		$	1,856,365,909
Affiliated (Note 2)		45,604,344			17,536,267			199,349,974

Total cost of investments in securities	$	3,027,241,242		$	628,144,884		$	2,055,715,883

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	3,095,609,007		$	596,203,298		$	3,733,767,800
Affiliated (Note 2)		45,608,799			17,540,444			199,381,719
Foreign currency, at value^b		9,589,069			3,086,269			2,369,361
Foreign currency pledged to broker for futures contracts, at value^b		—			179,374			—
Cash pledged to broker for futures contracts		—			—			1,596,000
Receivables:
Investment securities sold		1,065,470			808,685			18,876,474
Dividends and interest		18,466,638			2,783,988			21,617,442
Futures variation margin		—			28,956			75,932

Total Assets		3,170,338,983			620,631,014			3,977,684,728


LIABILITIES
Payables:
Investment securities purchased		3,852,622			2,811,001			33,584,291
Collateral for securities on loan (Note 1)		44,791,591			17,308,614			176,536,820
Foreign taxes (Note 1)		—			—			1,178,029
Investment advisory fees (Note 2)		1,268,514			243,739			1,895,191

Total Liabilities		49,912,727			20,363,354			213,194,331


NET ASSETS	$	3,120,426,256		$	600,267,660		$	3,764,490,397


Net assets consist of:
Paid-in capital	$	3,518,515,326		$	872,884,594		$	2,713,173,601
Undistributed (distributions in excess of) net investment income		11,406,465			(2,880,416	)		84,691,293
Accumulated net realized loss		(523,566,582	)		(255,377,916	)		(910,990,758	)
Net unrealized appreciation (depreciation)		114,071,047			(14,358,602	)		1,877,616,261

NET ASSETS	$	3,120,426,256		$	600,267,660		$	3,764,490,397


Shares outstanding^c		67,200,000			24,300,000	^d		100,800,000	^d


Net asset value per share	$	46.43		$	24.70	^d	$	37.35	^d

^a	Securities on loan with values of $42,597,622, $16,438,697 and $164,671,871, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker for futures contracts: $9,585,093, $3,259,861 and $2,369,530, respectively.

^c	$0.001 par value, number of shares authorized: 1 billion, 300 million and 900 million, respectively.

^d	Shares outstanding and net asset value per share reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Thailand Capped ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	368,490,414
Affiliated (Note 2)		16,250,721

Total cost of investments in securities	$	384,741,135

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	353,049,465
Affiliated (Note 2)		16,255,246
Foreign currency, at value^b		82
Receivables:
Investment securities sold		153,893
Dividends and interest		1,541,761

Total Assets		371,000,447


LIABILITIES
Payables:
Investment securities purchased		149,097
Collateral for securities on loan (Note 1)		15,076,641
Investment advisory fees (Note 2)		184,682

Total Liabilities		15,410,420


NET ASSETS	$	355,590,027


Net assets consist of:
Paid-in capital	$	419,847,008
Undistributed net investment income		2,034,256
Accumulated net realized loss		(50,856,199	)
Net unrealized depreciation		(15,435,038	)

NET ASSETS	$	355,590,027


Shares outstanding^c		4,300,000


Net asset value per share	$	82.70

^a	Securities on loan with a value of $13,717,548. See Note 1.

^b	Cost of foreign currency: $82.

^c	$0.001 par value, number of shares authorized: 200 million.

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Hong Kong ETF			iShares MSCI Japan Small-Cap ETF			iShares MSCI Malaysia ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	62,797,401		$	2,761,660		$	9,146,214
Dividends — affiliated (Note 2)		9,080			436			1,824
Securities lending income — affiliated — net (Note 2)		438,276			197,523			335,894
Non-cash dividends — unaffiliated		—			—			1,377,918

Total investment income		63,244,757			2,959,619			10,861,850


EXPENSES
Investment advisory fees (Note 2)		8,623,265			711,455			1,638,179
Proxy fees		36,665			2,774			8,170

Total expenses		8,659,930			714,229			1,646,349

Net investment income		54,584,827			2,245,390			9,215,501


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(31,512,511	)		353,153			(4,862,885	)
Investments — affiliated (Note 2)		25,964			279			768
In-kind redemptions — unaffiliated		24,487,621			11,692,637			—
Futures contracts		2,141,274			—			—
Foreign currency transactions		(76,566	)		(114,451	)		(318,322	)
Realized gain distributions from affiliated funds		8			1			5

Net realized gain (loss)		(4,934,210	)		11,931,619			(5,180,434	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		243,718,961			19,299,117			3,224,921
Investments — affiliated (Note 2)		5,744			1,228			2,635
Futures contracts		62,593			—			—
Translation of assets and liabilities in foreign currencies		(7,869	)		3,534			19,598

Net change in unrealized appreciation/depreciation		243,779,429			19,303,879			3,247,154

Net realized and unrealized gain (loss)		238,845,219			31,235,498			(1,933,280	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	293,430,046		$	33,480,888		$	7,282,221

^a	Net of foreign withholding tax of $ —, $295,013 and $ —, respectively.

See notes to financial statements.


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Pacific ex Japan ETF			iShares MSCI Singapore Capped ETF			iShares MSCI Taiwan Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	108,992,394		$	19,273,628		$	116,693,068
Dividends — affiliated (Note 2)		12,555			2,510			46,830
Interest — unaffiliated		—			—			2,047
Securities lending income — affiliated — net (Note 2)^b		318,039			309,564			2,230,197

		109,322,988			19,585,702			118,972,142
Less: Other foreign taxes (Note 1)		—			—			(2,263,362	)

Total investment income		109,322,988			19,585,702			116,708,780


EXPENSES
Investment advisory fees (Note 2)		12,707,117			2,726,470			19,279,639
Proxy fees		63,145			11,396			73,420

Total expenses		12,770,262			2,737,866			19,353,059

Net investment income		96,552,726			16,847,836			97,355,721


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(37,353,593	)		(37,735,348	)		5,642,647
Investments — affiliated (Note 2)		12,531			1,512			(13,787	)
In-kind redemptions — unaffiliated		39,188,412			10,885,821			—
Futures contracts		—			85,847			1,278,858
Foreign currency transactions		(109,994	)		(92,065	)		194,024
Realized gain distributions from affiliated funds		30			4			1,930

Net realized gain (loss)		1,737,386			(26,854,229	)		7,103,672

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		333,394,389			116,614,308			636,430,973
Investments — affiliated (Note 2)		4,455			4,176			31,745
Futures contracts		—			161,329			493,191
Translation of assets and liabilities in foreign currencies		268,424			104,031			137,107

Net change in unrealized appreciation/depreciation		333,667,268			116,883,844			637,093,016

Net realized and unrealized gain		335,404,654			90,029,615			644,196,688

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	431,957,380		$	106,877,451		$	741,552,409

^a	Net of foreign withholding tax of $1,396,064, $221,429 and $28,253,001, respectively.

^b	Net of securities lending income tax paid of $ —, $ — and $532,992, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			59

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Thailand Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	11,344,791
Dividends — affiliated (Note 2)		4,660
Securities lending income — affiliated — net (Note 2)		1,398,939

Total investment income		12,748,390


EXPENSES
Investment advisory fees (Note 2)		2,413,235
Proxy fees		9,309

Total expenses		2,422,544

Net investment income		10,325,846


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(7,514,983	)
Investments — affiliated (Note 2)		5,852
In-kind redemptions — unaffiliated		26,009,569
Foreign currency transactions		756
Realized gain distributions from affiliated funds		68

Net realized gain		18,501,262

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		8,456,477
Investments — affiliated (Note 2)		4,525
Translation of assets and liabilities in foreign currencies		1,390

Net change in unrealized appreciation/depreciation		8,462,392

Net realized and unrealized gain		26,963,654

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	37,289,500

^a	Net of foreign withholding tax of $1,212,071.

See notes to financial statements.


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Hong Kong ETF						iShares MSCI Japan Small-Cap ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	54,584,827		$	55,962,839		$	2,245,390		$	2,594,375
Net realized gain (loss)		(4,934,210	)		(112,618,836	)		11,931,619			1,760,658
Net change in unrealized appreciation/depreciation		243,779,429			206,987,041			19,303,879			10,466,590

Net increase in net assets resulting from operations		293,430,046			150,331,044			33,480,888			14,821,623


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(47,903,550	)		(57,946,909	)		(4,653,375	)		(3,054,464	)

Total distributions to shareholders		(47,903,550	)		(57,946,909	)		(4,653,375	)		(3,054,464	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		465,624,058			22,375,546			116,995,181			45,471,321
Cost of shares redeemed		(452,279,138	)		(1,240,407,729	)		(121,160,138	)		(51,689,221	)

Net increase (decrease) in net assets from capital share transactions		13,344,920			(1,218,032,183	)		(4,164,957	)		(6,217,900	)

INCREASE (DECREASE) IN NET ASSETS		258,871,416			(1,125,648,048	)		24,662,556			5,549,259

NET ASSETS
Beginning of year		1,596,575,814			2,722,223,862			164,553,406			159,004,147

End of year	$	1,855,447,230		$	1,596,575,814		$	189,215,962		$	164,553,406

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	12,327,044		$	5,722,325		$	(591,075	)	$	378,670


SHARES ISSUED AND REDEEMED
Shares sold		21,225,000			1,125,000			1,800,000			800,000
Shares redeemed		(21,825,000	)		(65,550,000	)		(1,900,000	)		(900,000	)

Net decrease in shares outstanding		(600,000	)		(64,425,000	)		(100,000	)		(100,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			61

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Malaysia ETF						iShares MSCI Pacific ex Japan ETF
	Year ended August 31, 2017^a			Year ended August 31, 2016^a			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	9,215,501		$	8,018,748		$	96,552,726		$	79,688,773
Net realized gain (loss)		(5,180,434	)		2,274,635			1,737,386			(45,760,650	)
Net change in unrealized appreciation/depreciation		3,247,154			8,119,136			333,667,268			190,272,573

Net increase in net assets resulting from operations		7,282,221			18,412,519			431,957,380			224,200,696


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(15,799,041	)		(12,913,175	)		(98,968,999	)		(80,779,861	)
From net realized gain		—			(61,020,000	)		—			—

Total distributions to shareholders		(15,799,041	)		(73,933,175	)		(98,968,999	)		(80,779,861	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		158,537,129			235,390,658			627,289,205			430,991,170
Cost of shares redeemed		(48,251,620	)		(107,993,581	)		(197,813,415	)		(200,654,534	)

Net increase in net assets from capital share transactions		110,285,509			127,397,077			429,475,790			230,336,636

INCREASE IN NET ASSETS		101,768,689			71,876,421			762,464,171			373,757,471

NET ASSETS
Beginning of year		335,455,186			263,578,765			2,357,962,085			1,984,204,614

End of year	$	437,223,875		$	335,455,186		$	3,120,426,256		$	2,357,962,085

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(8,211,868	)	$	(1,310,602	)	$	11,406,465		$	11,915,309


SHARES ISSUED AND REDEEMED
Shares sold		6,900,000			6,506,250			14,400,000			10,800,000
Shares redeemed		(3,375,000	)		(2,850,000	)		(4,800,000	)		(5,400,000	)

Net increase in shares outstanding		3,525,000			3,656,250			9,600,000			5,400,000

^a Share transactions reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Singapore Capped ETF						iShares MSCI Taiwan Capped ETF
	Year ended August 31, 2017^a			Year ended August 31, 2016^a			Year ended August 31, 2017^a			Year ended August 31, 2016^a

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	16,847,836		$	21,958,456		$	97,355,721		$	65,261,790
Net realized gain (loss)		(26,854,229	)		(29,896,748	)		7,103,672			(131,209,842	)
Net change in unrealized appreciation/depreciation		116,883,844			14,050,396			637,093,016			327,822,256

Net increase in net assets resulting from operations		106,877,451			6,112,104			741,552,409			261,874,204


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(23,963,560	)		(16,842,459	)		(64,888,894	)		(85,498,003	)

Total distributions to shareholders		(23,963,560	)		(16,842,459	)		(64,888,894	)		(85,498,003	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		74,734,333			117,265,015			500,883,331			512,970,562
Cost of shares redeemed		(119,799,002	)		(154,043,146	)		(69,945,562	)		(1,308,867,457	)

Net increase (decrease) in net assets from capital share transactions		(45,064,669	)		(36,778,131	)		430,937,769			(795,896,895	)

INCREASE (DECREASE) IN NET ASSETS		37,849,222			(47,508,486	)		1,107,601,284			(619,520,694	)

NET ASSETS
Beginning of year		562,418,438			609,926,924			2,656,889,113			3,276,409,807

End of year	$	600,267,660		$	562,418,438		$	3,764,490,397		$	2,656,889,113

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(2,880,416	)	$	3,947,970		$	84,691,293		$	52,002,232


SHARES ISSUED AND REDEEMED
Shares sold		3,400,000			5,350,000			15,300,000			17,900,000
Shares redeemed		(5,600,000	)		(7,550,000	)		(2,200,000	)		(50,800,000	)

Net increase (decrease) in shares outstanding		(2,200,000	)		(2,200,000	)		13,100,000			(32,900,000	)

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

See notes to financial statements.


FINANCIAL STATEMENTS			63

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Thailand Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	10,325,846		$	8,989,630
Net realized gain (loss)		18,501,262			(27,016,412	)
Net change in unrealized appreciation/depreciation		8,462,392			81,712,344

Net increase in net assets resulting from operations		37,289,500			63,685,562


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(10,761,008	)		(7,604,719	)

Total distributions to shareholders		(10,761,008	)		(7,604,719	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		125,837,713			240,640,360
Cost of shares redeemed		(244,851,266	)		(85,949,624	)

Net increase (decrease) in net assets from capital share transactions		(119,013,553	)		154,690,736

INCREASE (DECREASE) IN NET ASSETS		(92,485,061	)		210,771,579

NET ASSETS
Beginning of year		448,075,088			237,303,509

End of year	$	355,590,027		$	448,075,088

Undistributed net investment income included in net assets at end of year	$	2,034,256		$	2,416,276


SHARES ISSUED AND REDEEMED
Shares sold		1,700,000			3,550,000
Shares redeemed		(3,300,000	)		(1,300,000	)

Net increase (decrease) in shares outstanding		(1,600,000	)		2,250,000

See notes to financial statements.


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Hong Kong ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	21.08		$	19.42		$	21.89		$	18.91		$	16.94

Income from investment operations:
Net investment income^a		0.68			0.54			0.52			0.66			0.48
Net realized and unrealized gain (loss)^b		3.54			1.72			(2.50	)		3.04			2.05

Total from investment operations		4.22			2.26			(1.98	)		3.70			2.53

Less distributions from:
Net investment income		(0.61	)		(0.60	)		(0.49	)		(0.72	)		(0.56	)

Total distributions		(0.61	)		(0.60	)		(0.49	)		(0.72	)		(0.56	)

Net asset value, end of year	$	24.69		$	21.08		$	19.42		$	21.89		$	18.91


Total return		20.38	%		11.94	%		(9.29	)%		19.87	%		15.04	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,855,447		$	1,596,576		$	2,722,224		$	3,221,312		$	2,124,856
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		3.08	%		2.73	%		2.36	%		3.24	%		2.47	%
Portfolio turnover rate^c		8	%		9	%		7	%		6	%		12	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			65

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Japan Small-Cap ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	60.95		$	56.79		$	56.61		$	49.44		$	42.82

Income from investment operations:
Net investment income^a		1.02			0.84			0.70			0.70			0.65
Net realized and unrealized gain^b		12.62			4.29			0.71			7.61			6.97

Total from investment operations		13.64			5.13			1.41			8.31			7.62

Less distributions from:
Net investment income		(1.81	)		(0.97	)		(1.23	)		(1.14	)		(1.00	)

Total distributions		(1.81	)		(0.97	)		(1.23	)		(1.14	)		(1.00	)

Net asset value, end of year	$	72.78		$	60.95		$	56.79		$	56.61		$	49.44


Total return		22.81	%		9.10	%		2.63	%		16.94	%		18.07	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	189,216		$	164,553		$	159,004		$	169,837		$	88,988
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		1.53	%		1.44	%		1.26	%		1.31	%		1.36	%
Portfolio turnover rate^c		8	%		12	%		10	%		14	%		17	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Malaysia ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	33.13		$	40.75		$	64.53		$	58.40		$	58.09

Income from investment operations:
Net investment income^b		0.56			1.00			1.44			2.16			1.64
Net realized and unrealized gain (loss)^c		(0.05	)		2.79			(23.47	)		6.06			0.15

Total from investment operations		0.51			3.79			(22.03	)		8.22			1.79

Less distributions from:
Net investment income		(1.61	)		(1.81	)		(1.57	)		(2.09	)		(1.48	)
Net realized gain		—			(9.60	)		(0.18	)		—			—

Total distributions		(1.61	)		(11.41	)		(1.75	)		(2.09	)		(1.48	)

Net asset value, end of year	$	32.03		$	33.13		$	40.75		$	64.53		$	58.40


Total return		2.14	%		12.58	%		(34.62	)%		14.17	%		3.02	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	437,224		$	335,455		$	263,579		$	786,461		$	809,138
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		2.73	%		2.86	%		2.61	%		3.48	%		2.71	%
Portfolio turnover rate^d		24	%		72	%		24	%		16	%		17	%

^a	Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 10%, 17%, 5%, 10%, and 8%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			67

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Pacific ex Japan ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	40.94		$	38.01		$	51.21		$	44.56		$	43.21

Income from investment operations:
Net investment income^a		1.60			1.54			1.97			1.88			1.69
Net realized and unrealized gain (loss)^b		5.55			2.98			(13.09	)		6.51			1.71

Total from investment operations		7.15			4.52			(11.12	)		8.39			3.40

Less distributions from:
Net investment income		(1.66	)		(1.59	)		(2.08	)		(1.74	)		(2.05	)

Total distributions		(1.66	)		(1.59	)		(2.08	)		(1.74	)		(2.05	)

Net asset value, end of year	$	46.43		$	40.94		$	38.01		$	51.21		$	44.56


Total return		18.06	%		12.20	%		(22.19	)%		19.25	%		7.87	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,120,426		$	2,357,962		$	1,984,205		$	3,472,048		$	3,008,067
Ratio of expenses to average net assets		0.49	%		0.49	%		0.49	%		0.49	%		0.50	%
Ratio of net investment income to average net assets		3.69	%		4.00	%		4.31	%		3.90	%		3.59	%
Portfolio turnover rate^c		3	%		6	%		7	%		8	%		8	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Singapore Capped ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	21.22		$	21.25		$	27.93		$	24.98		$	26.19

Income from investment operations:
Net investment income^b		0.56			0.84			0.82			0.80			0.88
Net realized and unrealized gain (loss)^c		3.84			(0.24	)		(6.64	)		3.05			(0.92	)

Total from investment operations		4.40			0.60			(5.82	)		3.85			(0.04	)

Less distributions from:
Net investment income		(0.92	)		(0.63	)		(0.86	)		(0.90	)		(1.17	)

Total distributions		(0.92	)		(0.63	)		(0.86	)		(0.90	)		(1.17	)

Net asset value, end of year	$	24.70		$	21.22		$	21.25		$	27.93		$	24.98


Total return		21.51	%		2.87	%		(21.27	)%		15.65	%		(0.38	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	600,268		$	562,418		$	609,927		$	984,455		$	1,135,477
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		3.00	%		3.96	%		3.15	%		2.99	%		3.23	%
Portfolio turnover rate^d		12	%		7	%		10	%		4	%		10	%

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

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			69

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Taiwan Capped ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	30.30		$	27.17		$	32.89		$	27.21		$	25.16

Income from investment operations:
Net investment income^b		0.87			0.68			0.74			0.58			0.48
Net realized and unrealized gain (loss)^c		6.88			3.25			(5.88	)		5.62			2.11

Total from investment operations		7.75			3.93			(5.14	)		6.20			2.59

Less distributions from:
Net investment income		(0.70	)		(0.80	)		(0.58	)		(0.52	)		(0.54	)

Total distributions		(0.70	)		(0.80	)		(0.58	)		(0.52	)		(0.54	)

Net asset value, end of year	$	37.35		$	30.30		$	27.17		$	32.89		$	27.21


Total return		26.17	%		15.02	%		(15.79	)%		23.24	%		10.30	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,764,490		$	2,656,889		$	3,276,410		$	3,298,664		$	2,641,997
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		3.10	%		2.51	%		2.36	%		1.98	%		1.80	%
Portfolio turnover rate^d		11	%		27	%		14	%		11	%		21	%

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

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

See notes to financial statements.


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Thailand Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	75.94		$	65.01		$	83.41		$	67.73		$	70.53

Income from investment operations:
Net investment income^a		1.99			2.05			1.66			1.67			1.84
Net realized and unrealized gain (loss)^b		6.90			10.54			(17.98	)		15.84			(2.75	)

Total from investment operations		8.89			12.59			(16.32	)		17.51			(0.91	)

Less distributions from:
Net investment income		(2.13	)		(1.66	)		(2.08	)		(1.83	)		(1.89	)

Total distributions		(2.13	)		(1.66	)		(2.08	)		(1.83	)		(1.89	)

Net asset value, end of year	$	82.70		$	75.94		$	65.01		$	83.41		$	67.73


Total return		12.01	%		19.87	%		(19.92	)%		26.18	%		(1.65	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	355,590		$	448,075		$	237,304		$	571,370		$	541,873
Ratio of expenses to average net assets		0.62	%		0.63	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		2.63	%		3.08	%		2.09	%		2.24	%		2.22	%
Portfolio turnover rate^c		7	%		16	%		13	%		9	%		24	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			71

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF		Diversification Classification
MSCI Hong Kong		Non-diversified
MSCI Japan Small-Cap		Diversified
MSCI Malaysia		Non-diversified
MSCI Pacific ex-Japan		Diversified
MSCI Singapore Capped^a		Non-diversified
MSCI Taiwan Capped^b		Non-diversified
MSCI Thailand Capped		Non-diversified

Formerly the iShares MSCI Singapore ETF.

Formerly the iShares MSCI Taiwan ETF.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

to policies and procedures developed by the Global Valuation Committee and approved by the Board of Directors of the Company (the “Board”).

•

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

•

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

•

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

•


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			75

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Hong Kong
Goldman Sachs & Co.	$	14,100	$	14,100	$	—
Morgan Stanley & Co. LLC		31,728,686		31,728,686		—

	$	31,742,786	$	31,742,786	$	—

MSCI Japan Small-Cap
Barclays Capital Inc.	$	611,844	$	611,844	$	—
BMO Capital Markets		72,937		72,937		—
Citigroup Global Markets Inc.		617,079		617,079		—
Credit Suisse Securities (USA) LLC		329,291		329,291		—
Deutsche Bank Securities Inc.		278,221		278,221		—
Goldman Sachs & Co.		204,447		204,447		—
JPMorgan Securities LLC		1,933,035		1,933,035		—
Macquarie Bank Limited		142,093		142,093		—
Merrill Lynch, Pierce, Fenner & Smith		764,765		764,765		—
Morgan Stanley & Co. LLC		1,428,733		1,428,733		—
State Street Bank & Trust Company		1,652,098		1,652,098		—
UBS AG		214,124		214,124		—
UBS Securities LLC		724,768		724,768		—

	$	8,973,435	$	8,973,435	$	—

MSCI Malaysia
Morgan Stanley & Co. International PLC	$	11,471,979	$	11,471,979	$	—
UBS AG		545,371		545,371		—

	$	12,017,350	$	12,017,350	$	—

MSCI Pacific ex Japan
Barclays Capital Inc.	$	102,673	$	102,673	$	—
Deutsche Bank Securities Inc.		1,128,797		1,128,797		—
Goldman Sachs & Co.		12,173,506		12,173,506		—
JPMorgan Securities LLC		1,894,864		1,894,864		—
Merrill Lynch, Pierce, Fenner & Smith		1,206,827		1,206,827		—
Morgan Stanley & Co. LLC		21,488,662		21,488,662		—
State Street Bank & Trust Company		102,673		102,673		—
UBS AG		1,810,373		1,810,373		—
UBS Securities LLC		2,689,247		2,689,247		—

	$	42,597,622	$	42,597,622	$	—


76		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Singapore Capped
Goldman Sachs & Co.	$	4,470,355	$	4,470,355	$	—
JPMorgan Securities LLC		14,065		14,065		—
Merrill Lynch, Pierce, Fenner & Smith		3,695,831		3,695,831		—
Morgan Stanley & Co. LLC		8,003,788		8,003,788		—
State Street Bank & Trust Company		254,658		254,658		—

	$	16,438,697	$	16,438,697	$	—

MSCI Taiwan Capped
Citigroup Global Markets Ltd.	$	5,560,158	$	5,560,158	$	—
Credit Suisse Securities (Europe) Ltd.		60,695,872		60,695,872		—
Deutsche Bank AG		6,344,146		6,344,146		—
JPMorgan Securities PLC		22,386,156		22,386,156		—
Morgan Stanley & Co. International PLC		59,142,796		59,142,796		—
UBS Ltd.		10,542,743		10,542,743		—

	$	164,671,871	$	164,671,871	$	—

MSCI Thailand Capped
Credit Suisse Securities (USA) LLC	$	2,313,434	$	2,313,434	$	—
Deutsche Bank Securities Inc.		131,564		131,564		—
Goldman Sachs & Co.		1,663,283		1,663,283		—
Merrill Lynch, Pierce, Fenner & Smith		371,986		371,986		—
Morgan Stanley & Co. LLC		2,893,395		2,893,395		—
UBS AG		5,388,075		5,388,075		—
UBS Securities LLC		955,811		955,811		—

	$	13,717,548	$	13,717,548	$	—

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

For its investment advisory services to each of the iShares MSCI Hong Kong, iShares MSCI Japan Small-Cap, iShares MSCI Malaysia and iShares MSCI Singapore Capped ETFs, BFA is entitled to an annual investment advisory fee, accrued daily and


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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:


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

Break level added or amended effective July 1, 2017.

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:


Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.5000	%	First $46 billion
	0.4750	^a	Over $46 billion, up to and including $81 billion
	0.4513	^a	Over $81 billion, up to and including $111 billion
	0.4287	^a	Over $111 billion, up to and including $141 billion
	0.4073	^a	Over $141 billion

Investment advisory fee level reflects a 5% reduction (rounded to the fourth decimal place) from the investment advisory fee at the prior aggregate average daily net asset level.

For its investment advisory services to each of the iShares MSCI Taiwan Capped and iShares MSCI Thailand Capped 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:


Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.74	%	First $2 billion
	0.69		Over $2 billion, up to and including $4 billion
	0.64		Over $4 billion, up to and including $8 billion
	0.57		Over $8 billion, up to and including $16 billion
	0.51		Over $16 billion, up to and including $24 billion
	0.48		Over $24 billion, up to and including $32 billion
	0.45		Over $32 billion


78		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Hong Kong	$	122,127
MSCI Japan Small-Cap		47,145
MSCI Malaysia		79,940
MSCI Pacific ex Japan		84,057
MSCI Singapore Capped		81,218
MSCI Taiwan Capped		662,346
MSCI Thailand Capped		322,522

For the year ended August 31, 2017, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Taiwan Capped ETF in the amount of $98,235, related to the foreign tax on the securities lending income. Such reimbursement is included in “Securities lending income – affiliated – net” in the Fund’s statement of operations.

For the year ended August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Hong Kong	$	14,527,782	$	13,728,701
MSCI Japan Small-Cap		1,799,755		5,318,610
MSCI Pacific ex Japan		5,279,625		8,329,594
MSCI Singapore Capped		10,475,447		22,195,480
MSCI Taiwan Capped		32,300,443		5,985,482


NOTES TO FINANCIAL STATEMENTS			79

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
MSCI Hong Kong	$	165,104,948	$	138,697,860
MSCI Japan Small-Cap		11,177,859		13,582,193
MSCI Malaysia		184,296,428		80,947,192
MSCI Pacific ex Japan		137,912,517		91,033,188
MSCI Singapore Capped		65,965,673		65,572,364
MSCI Taiwan Capped		817,535,879		330,373,254
MSCI Thailand Capped		28,559,956		26,105,331

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Hong Kong	$	432,047,304	$	436,591,050
MSCI Japan Small-Cap		115,246,006		119,551,480
MSCI Pacific ex Japan		579,630,424		195,236,398
MSCI Singapore Capped		65,603,517		115,592,916
MSCI Thailand Capped		121,513,849		243,497,906

4.	*CAPITAL SHARE TRANSACTIONS*

The Board authorized a one-for-four reverse stock split for the iShares MSCI Malaysia ETF (“EWM”) and a one-for-two reverse stock split for each of the iShares MSCI Singapore Capped ETF (“EWS”) and iShares MSCI Taiwan Capped ETF (“EWT”),


80		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

effective after the close of trading on November 4, 2016. The impact of the stock splits was to decrease the number of shares outstanding by a factor of four for EWM and a factor of two for EWS and EWT, while increasing the NAV per share by factors of four, two and two, respectively, resulting in no effect on the net assets of the Funds. The financial statements for the Funds have been adjusted to reflect the reverse stock splits.

5.	*FUTURES CONTRACTS*

The following table shows the value of futures contracts held as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
	iShares MSCI Hong Kong ETF		iShares MSCI Singapore Capped ETF		iShares MSCI Taiwan Capped ETF
Equity contracts:
Variation margin /Net assets consist of – net unrealized appreciation (depreciation)^a	$	106,502	$	28,956	$	122,588

Represents cumulative appreciation of futures contracts as reported in the schedules of investments. Only current day’s variation margin is reported separately within the statements of assets and liabilities for the iShares MSCI Taiwan Capped ETF.


NOTES TO FINANCIAL STATEMENTS			81

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the realized and unrealized gains (losses) on futures contracts held during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)
	iShares MSCI Hong Kong ETF		iShares MSCI Singapore Capped ETF		iShares MSCI Taiwan Capped ETF
Equity contracts:
Futures contracts	$	2,141,274	$	85,847	$	1,278,858


	Net Change in Unrealized Appreciation/Depreciation
	iShares MSCI Hong Kong ETF		iShares MSCI Singapore Capped ETF		iShares MSCI Taiwan Capped ETF
Equity contracts:
Futures contracts	$	62,593	$	161,329	$	493,191

The following table shows the average quarter-end balances of open futures contracts for the year ended August 31, 2017:


	iShares MSCI Hong Kong ETF		iShares MSCI Singapore Capped ETF		iShares MSCI Taiwan Capped ETF
Average value of contracts purchased	$	9,155,431	$	4,354,962	$	18,818,238

6.	*PRINCIPAL RISKS*

MARKET RISK


82		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.

CREDIT RISK

7.	*INCOME TAX INFORMATION*


NOTES TO FINANCIAL STATEMENTS			83

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Hong Kong	$	(10,161,288	)	$	(76,558	)	$	10,237,846
MSCI Japan Small-Cap		9,440,555			1,438,240			(10,878,795	)
MSCI Malaysia		—			(317,726	)		317,726
MSCI Pacific ex Japan		(41,571,769	)		1,907,429			39,664,340
MSCI Singapore Capped		(11,160,099	)		287,338			10,872,761
MSCI Taiwan Capped		(343,375,145	)		222,234			343,152,911
MSCI Thailand Capped		17,144,055			53,142			(17,197,197	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
MSCI Hong Kong
Ordinary income	$	47,903,550	$	57,946,909


MSCI Japan Small-Cap
Ordinary income	$	4,653,375	$	3,054,464


MSCI Malaysia
Ordinary income	$	15,799,041	$	12,913,175
Long-term capital gain		—		61,020,000

	$	15,799,041	$	73,933,175


MSCI Pacific ex Japan
Ordinary income	$	98,968,999	$	80,779,861


MSCI Singapore Capped
Ordinary income	$	23,963,560	$	16,842,459


MSCI Taiwan Capped
Ordinary income	$	64,888,894	$	85,498,003


MSCI Thailand Capped
Ordinary income	$	10,761,008	$	7,604,719


84		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2017, 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 Hong Kong	$	12,327,044	$	(474,298,388	)	$	90,313,131		$	(371,658,213	)
MSCI Japan Small-Cap		800,065		(3,601,695	)		11,898,378			9,096,748
MSCI Malaysia		3,893,000		(14,406,515	)		110,506,701			99,993,186
MSCI Pacific ex Japan		29,281,825		(463,731,302	)		36,360,407			(398,089,070	)
MSCI Singapore Capped		2,184,139		(245,392,762	)		(29,408,311	)		(272,616,934	)
MSCI Taiwan Capped		103,758,395		(718,279,663	)		1,665,838,064			1,051,316,796
MSCI Thailand Capped		2,034,256		(40,853,487	)		(25,437,750	)		(64,256,981	)

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, 2017, the following Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2018		Expiring 2019		Total
MSCI Hong Kong	$	324,895,525	$	114,836,904	$	34,565,959	$	474,298,388
MSCI Japan Small-Cap		2,856,676		541,322		203,697		3,601,695
MSCI Malaysia		14,406,515		—		—		14,406,515
MSCI Pacific ex Japan		322,330,812		104,799,503		36,600,987		463,731,302
MSCI Singapore Capped		101,383,410		132,420,824		11,588,528		245,392,762
MSCI Taiwan Capped		335,557,692		363,052,013		19,669,958		718,279,663
MSCI Thailand Capped		37,227,149		2,321,428		1,304,910		40,853,487

Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2017, the iShares MSCI Japan Small-Cap ETF utilized $284,141 of its capital loss carryfowards.

8.	*LEGAL PROCEEDINGS*


NOTES TO FINANCIAL STATEMENTS			85

Notes to Financial Statements (Continued)

iSHARES^®, INC.

(collectively, “Defendants”). 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 Plaintiffs’ claims with prejudice.

9.	*SUBSEQUENT EVENTS*


86		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF,

iShares MSCI Malaysia ETF, iShares MSCI Pacific ex Japan ETF, iShares MSCI Singapore Capped ETF,

iShares MSCI Taiwan Capped ETF and iShares MSCI Thailand Capped ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Pacific ex Japan ETF, iShares MSCI Singapore Capped ETF, iShares MSCI Taiwan Capped ETF and iShares MSCI Thailand Capped ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			87

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
MSCI Hong Kong	$	1,186,761
MSCI Japan Small-Cap		2,428,743
MSCI Pacific ex Japan		65,919,101
MSCI Thailand Capped		12,166,919

For the fiscal year ended August 31, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Hong Kong	$	62,797,502	$	—
MSCI Japan Small-Cap		3,056,673		295,003
MSCI Malaysia		10,524,132		—
MSCI Pacific ex Japan		110,388,458		1,396,064
MSCI Singapore Capped		19,495,099		221,429
MSCI Taiwan Capped		144,946,070		31,047,858
MSCI Thailand Capped		12,556,862		1,211,988


88		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Hong Kong ETF and iShares MSCI Singapore Capped ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			89

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


90		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates and that, following negotiations, BFA and the Board had agreed to revise the Advisory Contract for the Funds to provide for an additional breakpoint as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

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


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II. iShares MSCI Japan Small-Cap ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


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Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Malaysia ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


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sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of 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.

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 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


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iSHARES^®, INC.

exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

IV. iShares MSCI Pacific ex Japan ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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

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.

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 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed


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Contract (Continued)

iSHARES^®, INC.

presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


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Contract (Continued)

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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 that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

V. iShares MSCI Taiwan Capped ETF


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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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and the historical performance of the Fund 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)

iSHARES^®, INC.

over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


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

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

VI. iShares MSCI Thailand Capped ETF


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			105

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Nature, Extent and Quality of Services Provided by BFA — Based on management’s representations, including information about recent and proposed enhancements to the iShares business, including with respect to capital markets support and analysis, technology, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


106		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			107

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
MSCI Japan Small-Cap	$	1.814104	$	—	$	—	$	1.814104		100	%		—	%		—	%		100	%
MSCI Malaysia		1.606802		—		—		1.606802		100			—			—			100
MSCI Pacific ex Japan		1.662226		—		—		1.662226		100			—			—			100
MSCI Singapore Capped		0.552296		—		0.367101		0.919397		60			—			40			100
MSCI Thailand Capped		2.132485		—		—		2.132485		100			—			—			100

Premium/Discount Information


108		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Hong Kong ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		7		0.51
Greater than 1.0% and Less than 1.5%		41		2.96
Greater than 0.5% and Less than 1.0%		204		14.75
Greater than 0.0% and Less than 0.5%		489		35.37
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		375		27.11
Less than –0.5% and Greater than –1.0%		169		12.22
Less than –1.0% and Greater than –1.5%		54		3.90
Less than –1.5% and Greater than –2.0%		20		1.45
Less than –2.0% and Greater than –2.5%		1		0.07
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0% and Greater than –3.5%		3		0.22
Less than –3.5% and Greater than –4.0%		1		0.07

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			109

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Japan Small-Cap ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		1		0.07	%
Greater than 4.5% and Less than 5.0%		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%		4		0.29
Greater than 2.0% and Less than 2.5%		12		0.87
Greater than 1.5% and Less than 2.0%		38		2.75
Greater than 1.0% and Less than 1.5%		90		6.51
Greater than 0.5% and Less than 1.0%		218		15.76
Greater than 0.0% and Less than 0.5%		371		26.84
At NAV		5		0.36
Less than 0.0% and Greater than –0.5%		335		24.22
Less than –0.5% and Greater than –1.0%		164		11.86
Less than –1.0% and Greater than –1.5%		75		5.42
Less than –1.5% and Greater than –2.0%		38		2.75
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%		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

		1,383		100.00	%


110		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Malaysia ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		2		0.14	%
Greater than 3.5% and Less than 4.0%		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%		78		5.64
Greater than 0.5% and Less than 1.0%		226		16.34
Greater than 0.0% and Less than 0.5%		397		28.71
At NAV		7		0.51
Less than 0.0% and Greater than –0.5%		334		24.15
Less than –0.5% and Greater than –1.0%		183		13.23
Less than –1.0% and Greater than –1.5%		56		4.05
Less than –1.5% and Greater than –2.0%		38		2.75
Less than –2.0% and Greater than –2.5%		9		0.65
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0% and Greater than –3.5%		2		0.14
Less than –3.5%		3		0.22

		1,383		100.00	%

iShares MSCI Pacific ex Japan ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		9		0.65
Greater than 1.0% and Less than 1.5%		57		4.12
Greater than 0.5% and Less than 1.0%		188		13.59
Greater than 0.0% and Less than 0.5%		526		38.04
At NAV		16		1.16
Less than 0.0% and Greater than –0.5%		358		25.89
Less than –0.5% and Greater than –1.0%		149		10.77
Less than –1.0% and Greater than –1.5%		49		3.54
Less than –1.5% and Greater than –2.0%		17		1.23
Less than –2.0% and Greater than –2.5%		6		0.43
Less than –2.5% and Greater than –3.0%		3		0.22
Less than –3.0%		1		0.07

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			111

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Singapore Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0%		1		0.07	%
Greater than 1.5% and Less than 2.0%		7		0.51
Greater than 1.0% and Less than 1.5%		31		2.24
Greater than 0.5% and Less than 1.0%		183		13.23
Greater than 0.0% and Less than 0.5%		559		40.43
At NAV		14		1.01
Less than 0.0% and Greater than –0.5%		409		29.57
Less than –0.5% and Greater than –1.0%		131		9.47
Less than –1.0% and Greater than –1.5%		29		2.10
Less than –1.5% and Greater than –2.0%		13		0.94
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%		4		0.29

		1,383		100.00	%

iShares MSCI Taiwan Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		3		0.22	%
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		7		0.51
Greater than 1.5% and Less than 2.0%		22		1.59
Greater than 1.0% and Less than 1.5%		84		6.07
Greater than 0.5% and Less than 1.0%		230		16.63
Greater than 0.0% and Less than 0.5%		351		25.38
At NAV		8		0.58
Less than 0.0% and Greater than –0.5%		359		25.95
Less than –0.5% and Greater than –1.0%		180		13.02
Less than –1.0% and Greater than –1.5%		74		5.35
Less than –1.5% and Greater than –2.0%		27		1.95
Less than –2.0% and Greater than –2.5%		16		1.16
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0% and Greater than –3.5%		3		0.22
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0%		3		0.22

		1,383		100.00	%


112		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Thailand Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		2		0.14	%
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		10		0.72
Greater than 1.5% and Less than 2.0%		28		2.02
Greater than 1.0% and Less than 1.5%		79		5.71
Greater than 0.5% and Less than 1.0%		236		17.07
Greater than 0.0% and Less than 0.5%		417		30.16
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		278		20.11
Less than –0.5% and Greater than –1.0%		191		13.81
Less than –1.0% and Greater than –1.5%		79		5.71
Less than –1.5% and Greater than –2.0%		30		2.17
Less than –2.0% and Greater than –2.5%		14		1.01
Less than –2.5% and Greater than –3.0%		1		0.07
Less than –3.0% and Greater than –3.5%		4		0.29
Less than –3.5%		1		0.07

		1,383		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Hong Kong ETF, iShares MSCI Japan Small-Cap ETF, iShares MSCI Malaysia ETF, iShares MSCI Taiwan Capped ETF and iShares MSCI Thailand Capped ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to 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 each Fund is included in the aggregate figures disclosed.


SUPPLEMENTAL INFORMATION			113

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Members of staff and senior management of BFA typically provide both AIFMD and non-AIFMD related services in respect of multiple funds, clients and functions of BFA and across the broader BlackRock group. Therefore, the figures disclosed are a sum of each individual’s portion of remuneration attributable to 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, 2016 was USD 177.22 thousand. This figure is comprised of fixed remuneration of USD 69.72 thousand and variable remuneration of USD 107.50 thousand. There were a total of 325 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, 2016, to its senior management was USD 24.51 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 5.90 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, 2016 was USD 16.52 thousand. This figure is comprised of fixed remuneration of USD 6.50 thousand and variable remuneration of USD 10.02 thousand. There were a total of 325 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 the BFA’s financial year ending December 31, 2016, to its senior management was USD 2.28 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.55 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, 2016 was USD 26.09 thousand. This figure is comprised of fixed remuneration of USD 10.26 thousand and variable remuneration of USD 15.83 thousand. There were a total of 325 beneficiaries of the remuneration described above.


114		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Malaysia ETF in respect of the BFA’s financial year ending December 31, 2016, to its senior management was USD 3.61 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.87 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Taiwan Capped ETF in respect of BFA’s financial year ending December 31, 2016 was USD 292.86 thousand. This figure is comprised of fixed remuneration of USD 115.21 thousand and variable remuneration of USD 177.65 thousand. There were a total of 325 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Taiwan Capped ETF in respect of the BFA’s financial year ending December 31, 2016, to its senior management was USD 40.50 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 9.76 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Thailand Capped ETF in respect of BFA’s financial year ending December 31, 2016 was USD 39.41 thousand. This figure is comprised of fixed remuneration of USD 15.50 thousand and variable remuneration of USD 23.91 thousand. There were a total of 325 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Thailand Capped ETF in respect of the BFA’s financial year ending December 31, 2016, to its senior management was USD 5.45 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 1.31 thousand.


SUPPLEMENTAL INFORMATION			115

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. 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.


116		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


DIRECTOR AND OFFICER INFORMATION			117

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


118		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


DIRECTOR AND OFFICER INFORMATION			119

Notes:


120		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			121

Notes:


122		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

Certain financial information required by regulations or listing exchange rules in jurisdictions outside the U.S. in which iShares Funds are cross-listed may be publicly filed in those jurisdictions. This information is available upon request by calling 1-800-474-2737.

iS-AR-803-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Brazil Capped ETF | EWZ | NYSE Arca

^Ø

iShares MSCI Chile Capped ETF | ECH | BATS

^Ø

iShares MSCI Colombia Capped ETF | ICOL | NYSE Arca

^Ø

iShares MSCI Israel Capped ETF | EIS | NYSE Arca

^Ø

iShares MSCI Russia Capped ETF | ERUS | NYSE Arca

^Ø

iShares MSCI South Africa ETF | EZA | NYSE Arca

^Ø

iShares MSCI Turkey ETF | TUR | NASDAQ

^Ø

iShares MSCI USA Equal Weighted ETF | EUSA | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			22
Shareholder Expenses			22
Schedules of Investments			23
iShares MSCI Brazil Capped ETF			23
iShares MSCI Chile Capped ETF			26
iShares MSCI Colombia Capped ETF			28
iShares MSCI Israel Capped ETF			30
iShares MSCI Russia Capped ETF			33
iShares MSCI South Africa ETF			35
iShares MSCI Turkey ETF			38
iShares MSCI USA Equal Weighted ETF			41
Financial Statements			52
Financial Highlights			62
Notes to Financial Statements			70
Report of Independent Registered Public Accounting Firm			83
Tax Information			84
Board Review and Approval of Investment Advisory Contract			85
Supplemental Information			98
Director and Officer Information			106

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI BRAZIL CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		22.03%		21.89%		22.96%		22.03%		21.89%		22.96%
5 Years		(2.78)%		(2.84)%		(2.12)%		(13.16)%		(13.41)%		(10.16)%
10 Years		(1.08)%		(1.06)%		(0.46)%		(10.33)%		(10.12)%		(4.49)%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period ^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period ^a		Annualized Expense Ratio
$	1,000.00	$	1,048.70	$	3.15	$	1,000.00	$	1,022.10	$	3.11		0.61%


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

The iShares MSCI Brazil Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Brazilian equities, as represented by the MSCI Brazil 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 22.03%, net of fees, while the total return for the Index was 22.96%.

Brazil’s stock market benefited from a rebound in economic activity as the Brazilian economy grew for the first time in more than three years in the second quarter of 2017. Consumer spending drove economic growth, supported by falling inflation, which hit an all-time low in June 2017. Exports, an important component of Brazil’s economy, increased significantly, particularly for some of the country’s main export products, including oil, iron ore, and soybeans. The growth in exports was led by demand from Brazil’s largest trading partners, including China, the U.S., and Argentina. To stimulate economic growth, the country’s central bank made its seventh consecutive interest rate cut in July 2017, which brought borrowing costs to their lowest level since September 2013.

From a sector perspective, financials, which represented about 36% of the Index on average, contributed the most to the Index’s performance for the reporting period. Brazilian banks led the advance in the financials sector amid improving asset quality due to fewer non-performing loans. The materials sector also contributed significantly to the Index’s return as steel producers benefited from a rebound in steel prices, driven by improved demand in China. Other sectors that contributed to the Index’s performance included industrials, consumer discretionary, and healthcare.

In contrast, the information technology sector detracted from the Index’s return for the reporting period due to weakness in the software and services industry.

The Brazilian real appreciated by about 3% relative to the U.S. dollar for the reporting period, making returns on Brazilian investments higher when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	36.83	%
Materials	14.34
Consumer Staples	14.28
Energy	7.32
Utilities	6.17
Consumer Discretionary	5.93
Industrials	5.91
Telecommunication Services	2.85
Information Technology	2.45
Health Care	2.18
Real Estate	1.74

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Itau Unibanco Holding SA (Preferred)	11.52	%
Banco Bradesco SA (Preferred)	8.94
Ambev SA	8.17
Vale SA	8.16
B3 SA–Brasil Bolsa Balcao	4.23
Itausa–Investimentos Itau SA (Preferred)	3.54
Petroleo Brasileiro SA (Preferred)	2.71
Banco Bradesco SA	2.60
Cielo SA	2.45
Ultrapar Participacoes SA	2.39

TOTAL	54.71	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI CHILE CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		32.65%		32.60%		32.78%		32.65%		32.60%		32.78%
5 Years		(2.88)%		(2.96)%		(2.66)%		(13.60)%		(13.95)%		(12.61)%
Since Inception		1.35%		1.27%		1.86%		14.04%		13.23%		19.81%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.

Index performance through February 11, 2013 reflects the performance of the MSCI Chile Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Chile IMI 25/50 Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,203.00	$	3.39	$	1,000.00	$	1,022.10	$	3.11		0.61%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI CHILE CAPPED ETF

The iShares MSCI Chile Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Chilean equities, as represented by the MSCI Chile 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 32.65%, net of fees, while the total return for the Index was 32.78%.

Chile’s stock market hit record highs during the reporting period, supported by improving economic activity. Chile’s economy is largely dependent on exports, particularly copper. During the reporting period, copper exports rose substantially, due in large part to increased demand from China, Chile’s largest trading partner. In addition to export levels, copper prices also increased significantly, benefiting Chile’s mining industry. Other exports also increased, including pulp and paper products, chemicals, and agricultural products. Domestically, inflation remained benign, which helped support consumer spending.

The financials sector, which represented about 18% of the Index on average for the reporting period, was the largest contributor to the Index’s performance. Chilean banks led the advance in the financials sector as recurring operating income and better risk management supported the industry.

The materials sector also contributed significantly to the Index’s return for the reporting period, led by chemicals and steel producers, which benefited from the increase in exports. Utilities, the largest sector weight in the Index at about 26% on average, contributed to the Index’s return due to strength among electric utilities.

In the consumer discretionary sector, department store retailers contributed to the Index’s performance for the reporting period amid higher consumer spending. Other sectors that contributed meaningfully to the Index’s return included industrials, energy, and consumer staples.

The Chilean peso increased by about 8% relative to the U.S. dollar during the reporting period, which contributed to the Index’s performance as Chilean investments were worth more when translated into U.S. dollars.

ALLOCATION BY SECTOR

As of 8/31/17


Sector	Percentage of Total Investments*
Utilities		25.76	%
Financials		18.34
Consumer Discretionary		12.31
Materials		11.65
Consumer Staples		11.07
Energy		7.89
Industrials		6.21
Real Estate		2.66
Telecommunication Services		2.54
Information Technology		1.57

TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security	Percentage of Total Investments*
SACI Falabella		10.05	%
Enel Americas SA		8.57
Empresas COPEC SA		7.89
Banco Santander Chile		6.51
Sociedad Quimica y Minera de Chile SA Series B (Preferred)		5.41
LATAM Airlines Group SA		4.58
Empresas CMPC SA		4.54
Cencosud SA		4.48
Banco de Chile		3.92
Banco de Credito e Inversiones		3.70

TOTAL		59.65	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI COLOMBIA CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		12.05%		12.92%		11.97%		12.05%		12.92%		11.97%
Since Inception		(10.59)%		(10.48)%		(10.33)%		(37.53)%		(37.21)%		(36.74)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 6/18/13. The first day of secondary market trading was 6/20/13.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,117.10	$	3.26	$	1,000.00	$	1,022.10	$	3.11		0.61%


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI COLOMBIA CAPPED ETF

The iShares MSCI Colombia Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Colombian equities, as represented by the MSCI All Colombia Capped Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 12.05%, net of fees, while the total return for the Index was 11.97%.

Colombia’s stock market advanced for the reporting period despite relatively weak economic growth. Although Colombia’s economic growth improved somewhat late in the reporting period, it remained well below its growth rate before crude oil prices collapsed in 2014. Nonetheless, several key drivers of Colombian economic growth, including energy and mining, showed signs of improvement during the reporting period, particularly as export growth increased.

The November 2016 peace accord between the Colombian government and the Revolutionary Armed Forces of Colombia, which earned Colombian President Juan Manuel Santos the Nobel Peace Prize, contributed to increased investor confidence. The agreement was expected to provide greater political stability and economic benefits, including increased development, improved transportation and infrastructure, and a shift from military spending to employment programs.

Within the Index, the financials sector, which represented about 41% of the Index on average during the reporting period, contributed the most to the Index’s performance, led by strength among Colombian banks. Diversified financial services companies also supported performance in the sector.

The utilities sector was another significant contributor to the Index’s return for the reporting period as electric utilities performed well. The energy sector also had a positive effect on the Index’s performance as strengthening fuel exports provides support for the sector. Other sectors that contributed to the Index’s return included consumer staples and materials.

On the downside, the telecommunication services sector, a small weight in the Index at approximately 2% on average during the reporting period, detracted from the Index’s return amid challenges in privatizing government-owned telecommunications companies.

ALLOCATION BY SECTOR

As of 8/31/17


Sector	Percentage of Total Investments*
Financials		43.52	%
Materials		18.45
Utilities		12.29
Energy		10.43
Consumer Staples		8.92
Industrials		4.52
Telecommunication Services		1.87

TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security	Percentage of Total Investments*
Bancolombia SA (Preferred)		13.89	%
Grupo de Inversiones Suramericana SA		8.86
Bancolombia SA		5.73
Grupo Argos SA/Colombia		5.10
Ecopetrol SA		4.62
Grupo Nutresa SA		4.60
Interconexion Electrica SA ESP		4.48
Banco Davivienda SA (Preferred)		4.43
Cementos Argos SA		4.42
Almacenes Exito SA		4.33

TOTAL		60.46	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI ISRAEL CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(0.77)%		(0.27)%		(0.79)%		(0.77)%		(0.27)%		(0.79)%
5 Years		7.46%		7.63%		7.73%		43.29%		44.42%		45.08%
Since Inception		1.89%		1.94%		2.33%		19.35%		19.86%		24.23%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	962.20	$	3.02	$	1,000.00	$	1,022.10	$	3.11		0.61%


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI ISRAEL CAPPED ETF

The iShares MSCI Israel Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Israeli equities, as represented by the MSCI Israel Capped Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was -0.77%, net of fees, while the total return for the Index was -0.79%.

The reporting period for Israel was characterized by slow but steady economic growth, declining unemployment, and improving business confidence. While most Israeli stocks performed well, the Index’s performance was bogged down by a single pharmaceutical company that lost more than half of its value during the reporting period. However, stock market conditions in Israel generally remained positive due to high levels of government spending, regulatory reforms, and strong capital inflows.

The healthcare sector was the largest detractor from the Index’s returns, due entirely to the aforementioned pharmaceutical stock. The company reported poor sales and announced a large dividend cut during the reporting period, in addition to writing off more than $6 billion of goodwill from its balance sheet. Following these announcements, the company lost more than half its value, which had an outsized effect on the relatively small Israeli equity market.

The information technology sector was the largest contributor to the Index’s return for the reporting period. The software industry was the strongest performer within the sector as demand for cybersecurity software from corporations and governments eager to prevent data breaches is expected to continue to grow. In addition, the sector benefited from merger and acquisition activity.

The financials sector also contributed to the Index’s return for the reporting period. The banks and insurance industries were both sources of strength for the sector. The real estate, industrials, and materials sectors also contributed moderately to the Index’s return.

The Israeli shekel appreciated by approximately 5% against the U.S. dollar during the reporting period, which contributed notably to the Index’s return.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	27.98	%
Financials	22.46
Health Care	15.83
Real Estate	9.80
Industrials	6.16
Materials	6.01
Telecommunication Services	4.60
Energy	3.71
Consumer Staples	1.77
Consumer Discretionary	1.35
Utilities	0.33

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Check Point Software Technologies Ltd.	13.74	%
Teva Pharmaceutical Industries Ltd. ADR	13.62
Bank Leumi Le-Israel BM	6.85
Bank Hapoalim BM	6.48
Nice Ltd.	4.52
Elbit Systems Ltd.	3.27
Bezeq The Israeli Telecommunication Corp. Ltd.	3.08
Frutarom Industries Ltd.	3.00
Israel Discount Bank Ltd. Class A	2.83
Tower Semiconductor Ltd.	2.62

TOTAL	60.01	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI RUSSIA CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		18.73%		19.06%		19.03%		18.73%		19.06%		19.03%
5 Years		(2.24)%		(2.26)%		(1.62)%		(10.69)%		(10.81)%		(7.83)%
Since Inception		(3.51)%		(3.54)%		(2.95)%		(21.61)%		(21.77)%		(18.42)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 11/9/10. The first day of secondary market trading was 11/10/10.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,029.00	$	3.12	$	1,000.00	$	1,022.10	$	3.11		0.61%


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI RUSSIA CAPPED ETF

The iShares MSCI Russia Capped ETF (the “Fund”) seeks to track the investment results of an index composed of Russian equities, as represented by the MSCI Russia 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 18.73%, net of fees, while the total return for the Index was 19.03%.

Economic conditions improved in Russia during the reporting period as growth and industrial production picked up following a period of economic contraction. Much of the movement in Russian stocks, however, was due to political factors in the U.S., as investors assessed the odds of an improvement in relations with Russia and a possible easing of U.S. sanctions. The result of the U.S. presidential election in November 2016 preceded a large increase in Russian stock prices, although some of those gains receded in 2017 as the outlook for better relations dimmed.

The financials sector was the principal contributor to the Index’s performance for the reporting period, led by the banks industry, which gained following the U.S. presidential election. Russian banks are particularly sensitive to the effects of U.S. sanctions and stand to gain significantly if those sanctions are eliminated or reduced.

The energy sector was also a solid contributor to the Index’s performance. With oil prices mostly stable for the reporting period, the main driver of stock prices in the energy sector was speculation about the possible lifting of U.S. sanctions. Russian energy stocks rose following the U.S. presidential election but later declined for the reporting period as relations between Russia and the U.S. deteriorated and the U.S. Congress considered additional sanctions. The materials sector was an additional source of strength as the metals and mining industry made gains.

Currency fluctuations had a meaningful impact on the Index’s return as the Russian ruble appreciated approximately 11% against the U.S. dollar for the reporting period, causing ruble-denominated assets to appreciate in U.S. dollar terms.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Energy	44.70	%
Financials	24.93
Materials	15.32
Telecommunication Services	6.32
Consumer Staples	4.89
Utilities	3.84

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Sberbank of Russia PJSC ADR	11.04	%
Lukoil PJSC	10.12
Gazprom PJSC	9.45
Sberbank of Russia PJSC	6.95
Magnit PJSC GDR	4.90
MMC Norilsk Nickel PJSC	4.88
Novatek PJSC GDR	4.58
Tatneft PJSC Class S	4.54
Mobile TeleSystems PJSC ADR	3.76
Gazprom PJSC ADR	3.47

TOTAL	63.69	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI SOUTH AFRICA ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		20.91%		21.21%		21.68%		20.91%		21.21%		21.68%
5 Years		2.19%		2.08%		2.85%		11.42%		10.86%		15.06%
10 Years		3.37%		3.30%		4.16%		39.32%		38.31%		50.35%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,140.70	$	3.29	$	1,000.00	$	1,022.10	$	3.11		0.61%


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SOUTH AFRICA ETF

The iShares MSCI South Africa ETF (the “Fund”) seeks to track the investment results of an index composed of South African equities, as represented by the MSCI South Africa Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 20.91%, net of fees, while the total return for the Index was 21.68%.

South African markets posted solid returns during the reporting period despite economic and political troubles. The economy went into recession in early 2017 amid political wrangling between potential successors to current president Jacob Zuma and regulatory conflict between the government and the mining industry. Allegations of political corruption also contributed to the uncertain economic environment. Despite these challenges, rising commodities prices helped limit the damage to the economy, which is heavily reliant on mineral extraction.

The consumer discretionary sector was the principal contributor to the Index’s returns for the reporting period. This was almost entirely due to the performance of one company, a technology and media conglomerate. The company was a major investor in a Chinese internet company and benefited when that stock rose sharply during the reporting period. The rest of the consumer discretionary sector posted flat returns as consumer spending slowed due to rising unemployment.

The financials sector also contributed to the Index’s performance for the reporting period, despite a surprise interest rate cut from the South African central bank. The banks industry, which benefited from an influx of foreign capital, and the diversified financials industry led the advance in the financials sector. The telecommunication services, consumer staples, and real estate sectors also contributed to the Index’s return, while the healthcare and materials sectors detracted modestly from the Index’s performance.

A strengthening South African rand, which appreciated by approximately 12% against the U.S. dollar during the reporting period, contributed substantially to the Index’s return as rand-denominated assets appreciated in U.S. dollar terms.

Special note: Effective September 1, 2017, the Fund will begin to track a new underlying index, the MSCI South Africa 25/50 Index, and will cease to track the Index. The change to a capped benchmark is being implemented to seek to reduce tracking error and improve the investor experience.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Consumer Discretionary	31.79	%
Financials	25.79
Materials	12.03
Consumer Staples	8.78
Telecommunication Services	7.81
Real Estate	7.40
Health Care	4.24
Industrials	1.42
Energy	0.74

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Naspers Ltd. Class N	22.10	%
MTN Group Ltd.	5.06
Standard Bank Group Ltd.	5.00
Sasol Ltd.	5.00
Steinhoff International Holdings NV Class H	4.39
FirstRand Ltd.	4.33
Remgro Ltd.	2.71
Aspen Pharmacare Holdings Ltd.	2.65
Barclays Africa Group Ltd.	2.45
Shoprite Holdings Ltd.	2.41

TOTAL	56.10	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

Management’s Discussion of Fund Performance

iSHARES^® MSCI TURKEY ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		24.23%		25.07%		24.47%		24.23%		25.07%		24.47%
5 Years		(1.76)%		(1.61)%		(1.39)%		(8.47)%		(7.79)%		(6.76)%
Since Inception		1.28%		1.29%		1.63%		12.73%		12.90%		16.49%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 3/26/08. The first day of secondary market trading was 3/28/08.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,336.30	$	3.59	$	1,000.00	$	1,022.10	$	3.11		0.61%


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI TURKEY ETF

The iShares MSCI Turkey ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Turkish equities, as represented by the MSCI Turkey Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 24.23%, net of fees, while the total return for the Index was 24.47%.

The Turkish economy slowed during the reporting period as political turmoil, the threat of terrorism, and a steep drop in the important tourist trade were challenges to the country’s economic environment. However, the Turkish economy showed signs of improvement toward the end of the reporting period as the government increased spending and loosened credit. Despite the unevenness of growth, Turkey’s stock market hit record highs during the reporting period. Investors generally attributed the disconnect between economic and market performance to a combination of the government’s credit policies and heavy levels of algorithmic trading in the market.

The financials sector was the leading contributor to the Index’s return for the reporting period, with the banks industry delivering virtually all of the returns. Despite an increase in borrowing costs, Turkish banks benefited from government credit guarantees intended to stimulate the economy. Banks were also helped by tax incentives and reduced regulation as the Turkish government used policy in an attempt to increase interest rates.

The industrials sector posted a solid contribution to the Index’s performance for the reporting period, led by strong returns in the capital goods and transportation industries. The materials, energy, and consumer staples sectors also contributed to the Index’s return, while the real estate sector detracted modestly from the Index’s performance.

The Turkish lira, which depreciated by approximately 17% against the U.S. dollar during the reporting period, detracted substantially from the Index’s return as lira-denominated assets depreciated in U.S. dollar terms.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	37.66	%
Industrials	16.58
Consumer Staples	11.74
Materials	9.79
Consumer Discretionary	6.98
Telecommunication Services	6.89
Energy	6.01
Real Estate	2.52
Utilities	1.28
Information Technology	0.35
Health Care	0.20

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Turkiye Garanti Bankasi AS	10.15	%
Akbank TAS	9.30
BIM Birlesik Magazalar AS	6.65
Tupras Turkiye Petrol Rafinerileri AS	6.01
KOC Holding AS	5.61
Turkcell Iletisim Hizmetleri AS	5.35
Turkiye Is Bankasi Class C	4.83
Eregli Demir ve Celik Fabrikalari TAS	4.71
Haci Omer Sabanci Holding AS	3.98
Turkiye Halk Bankasi AS	3.79

TOTAL	60.38	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			19

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.22%		13.24%		13.41%		13.22%		13.24%		13.41%
5 Years		13.31%		13.30%		13.48%		86.82%		86.73%		88.16%
Since Inception		12.46%		12.47%		12.65%		136.42%		136.46%		139.09%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 5/5/10. The first day of secondary market trading was 5/7/10.

Index performance through August 31, 2015 reflects the performance of the MSCI USA Index. Index performance beginning on September 1, 2015 reflects the performance of the MSCI USA Equal Weighted Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,033.40	$	0.77	$	1,000.00	$	1,024.40	$	0.77		0.15%


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

The iShares MSCI USA Equal Weighted ETF (the “Fund”) seeks to track the investment results of an index composed of equal weighted U.S. equities, as represented by the MSCI USA Equal Weighted Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 13.22%, net of fees, while the total return for the Index was 13.41%.

The information technology sector made the largest contribution to the Index’s return for the reporting period. Sector gains reflected strength among several dominant technology companies with strong profits, significant market share, and high barriers to entry. From an industry standpoint, the software and services industry contributed the most to the Index’s performance, followed by the semiconductors and semiconductor equipment and technology hardware and equipment industries.

The financials sector was also a meaningful contributor to the Index’s return for the reporting period, led by the capital markets and insurance industries. Within the capital markets industry, financial market gains and increased assets under management supported strength. Insurers benefited from the prospect of a higher interest-rate environment, which would translate into increased profits on their underlying investment portfolio.

Other noteworthy contributors to the Index’s return during the reporting period included the industrials and healthcare sectors. The aerospace and defense industry led gains in the industrials sector as an increase in the defense budget under President Trump and higher global defense spending supported companies in the industry. The healthcare sector advanced despite ongoing uncertainty regarding healthcare reform and the medical device excise tax, as merger and acquisition activity remained solid. From an industry standpoint, healthcare equipment and supplies companies led the sector’s advance.

The energy sector detracted from the Index’s performance. Despite an agreement from OPEC to reduce output, an ongoing glut of supply kept oil prices low as OPEC output rose and shale output in the U.S. increased. The telecommunication services and consumer staples sectors also detracted fractionally from the Index’s return during the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17


Sector	Percentage of Total Investments*
Consumer Discretionary		15.91	%
Information Technology		15.70
Financials		14.16
Industrials		12.86
Health Care		11.89
Energy		6.68
Real Estate		6.18
Consumer Staples		5.84
Utilities		4.88
Materials		4.80
Telecommunication Services		1.10

TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security	Percentage of Total Investments*
Gilead Sciences Inc.		0.18	%
Incyte Corp.		0.18
Biogen Inc.		0.18
Seattle Genetics Inc.		0.18
United Rentals Inc.		0.17
BioMarin Pharmaceutical Inc.		0.17
Martin Marietta Materials Inc.		0.17
Vulcan Materials Co.		0.17
Celgene Corp.		0.17
Plains GP Holdings LP Class A		0.17

TOTAL		1.74	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			21

About Fund Performance

Shareholder Expenses


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 63.94%

AEROSPACE & DEFENSE — 1.09%
Embraer SA		12,103,087	$	68,969,267

				68,969,267
BANKS — 5.98%
Banco Bradesco SA		16,031,286		164,315,013
Banco do Brasil SA		14,985,287		146,211,861
Banco Santander Brasil SA Units		7,602,975		67,754,905

				378,281,779
BEVERAGES — 8.14%
Ambev SA		81,631,955		515,250,720

				515,250,720
CAPITAL MARKETS — 4.22%
B3 SA – Brasil Bolsa Balcao		38,014,977		267,250,804

				267,250,804
CONTAINERS & PACKAGING — 0.88%
Klabin SA Units		10,189,100		55,439,429

				55,439,429
DIVERSIFIED CONSUMER SERVICES — 2.21%
Kroton Educacional SA		24,518,719		140,031,267

				140,031,267
ELECTRIC UTILITIES — 2.98%
Centrais Eletricas Brasileiras SA^a		4,206,000		23,553,440
CPFL Energia SA		5,080,993		43,745,841
EDP – Energias do Brasil SA		7,627,045		36,942,003
Equatorial Energia SA		3,585,700		69,652,460
Transmissora Alianca de Energia Eletrica SA Units		2,012,600		14,391,934

				188,285,678
FOOD & STAPLES RETAILING — 1.51%
Raia Drogasil SA		4,349,600		95,868,283

				95,868,283
FOOD PRODUCTS — 3.02%
BRF SA^a		8,610,750		116,362,596
JBS SA		14,128,507		38,930,908
M. Dias Branco SA		2,301,600		35,916,210

				191,209,714
HEALTH CARE PROVIDERS & SERVICES — 1.15%
Odontoprev SA		5,225,965		24,614,661
Qualicorp SA		4,329,805		47,956,810

				72,571,471


Security	Shares		Value
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.60%
Engie Brasil Energia SA		3,332,475	$	38,234,311

				38,234,311
INSURANCE — 2.59%
BB Seguridade Participacoes SA		12,263,895		108,044,040
Porto Seguro SA		2,536,120		28,009,398
Sul America SA		4,853,249		27,733,292

				163,786,730
IT SERVICES — 2.45%
Cielo SA		21,708,696		154,754,104

				154,754,104
MACHINERY — 1.11%
WEG SA		10,815,170		70,326,361

				70,326,361
METALS & MINING — 8.78%
Cia. Siderurgica Nacional SA^a		14,733,969		40,692,905
Vale SA		46,170,619		514,759,592

				555,452,497
MULTILINE RETAIL — 2.40%
Lojas Americanas SA		4,933,310		22,640,435
Lojas Renner SA		13,271,990		129,073,367

				151,713,802
OIL, GAS & CONSUMABLE FUELS — 4.60%
Cosan SA Industria e Comercio		2,683,050		32,906,577
Petroleo Brasileiro SA^a		24,199,969		107,446,032
Ultrapar Participacoes SA		6,447,755		150,514,899

				290,867,508
PAPER & FOREST PRODUCTS — 1.27%
Duratex SA		6,238,061		17,050,112
Fibria Celulose SA		4,765,251		63,290,324

				80,340,436
PERSONAL PRODUCTS — 0.52%
Natura Cosmeticos SA		3,480,765		32,634,419

				32,634,419
PHARMACEUTICALS — 1.03%
Hypermarcas SA		6,958,000		65,257,856

				65,257,856
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.73%
BR Malls Participacoes SA		15,570,938		67,302,756
Multiplan Empreendimentos Imobiliarios SA		1,815,646		42,176,283

				109,479,039


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2017


Security	Shares		Value
ROAD & RAIL — 1.74%
Localiza Rent A Car SA		3,227,577	$	61,085,417
Rumo SA^a		14,959,290		49,112,322

				110,197,739
TRANSPORTATION INFRASTRUCTURE — 1.95%
CCR SA		22,248,165		123,457,535

				123,457,535
WATER UTILITIES — 1.09%
Cia. de Saneamento Basico do Estado de Sao Paulo		6,763,800		69,111,592

				69,111,592
WIRELESS TELECOMMUNICATION SERVICES — 0.90%
TIM Participacoes SA		15,918,325		57,067,078

				57,067,078

TOTAL COMMON STOCKS
(Cost: $2,680,565,968)				4,045,839,419

PREFERRED STOCKS — 35.78%

BANKS — 23.93%
Banco Bradesco SA, Preference Shares		52,854,818		564,084,854
Itau Unibanco Holding SA, Preference Shares		56,698,798		727,104,038
Itausa-Investimentos Itau SA, Preference Shares		68,889,892		223,323,713

				1,514,512,605
CHEMICALS — 0.69%
Braskem SA Class A, Preference Shares		3,597,456		43,572,613

				43,572,613

DIVERSIFIED TELECOMMUNICATION SERVICES — 1.94%
Telefonica Brasil SA, Preference Shares		7,920,364		122,941,912

				122,941,912
ELECTRIC UTILITIES — 1.48%
Centrais Eletricas Brasileiras SA Class B, Preference Shares		5,394,346		35,197,102
Cia. Energetica de Minas Gerais, Preference Shares		14,051,220		37,422,881
Cia. Paranaense de Energia Class B, Preference Shares		2,301,160		21,019,034

				93,639,017


Security	Shares		Value
FOOD & STAPLES RETAILING — 1.04%
Cia. Brasileira de Distribuicao, Preference Shares		2,884,764	$	66,002,689

				66,002,689
METALS & MINING — 2.02%
Gerdau SA, Preference Shares		16,536,126		62,277,517
Vale SA, Preference Shares		6,299,530		65,208,629

				127,486,146
MULTILINE RETAIL — 1.31%
Lojas Americanas SA, Preference Shares		14,621,617		82,577,551

				82,577,551
OIL, GAS & CONSUMABLE FUELS — 2.70%
Petroleo Brasileiro SA, Preference Shares		39,387,583		170,872,096

				170,872,096
PAPER & FOREST PRODUCTS — 0.67%
Suzano Papel e Celulose SA Class A, Preference Shares		7,667,330		42,644,337

				42,644,337

TOTAL PREFERRED STOCKS
(Cost: $1,407,506,824)				2,264,248,966

SHORT-TERM INVESTMENTS — 0.00%

MONEY MARKET FUNDS — 0.00%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^b,c		16,859		16,859

				16,859

TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,859)				16,859

TOTAL INVESTMENTS IN SECURITIES — 99.72%
(Cost: $4,088,089,651)^d				6,310,105,244
Other Assets, Less Liabilities — 0.28%				17,813,792

NET ASSETS — 100.00%			$	6,327,919,036

^a	Non-income earning security.

^b	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $4,592,623,315. Net unrealized appreciation was $1,717,481,929, of which $2,227,618,744 represented gross unrealized appreciation on investments and $510,136,815 represented gross unrealized depreciation on investments.


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI BRAZIL CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain(loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		1,839,027		—		(1,822,168	)^b		16,859	$	16,859	$	124	$	—	$	12,902

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	4,045,839,419	$	—	$	—	$	4,045,839,419
Preferred stocks		2,264,248,966		—		—		2,264,248,966
Money market funds		16,859		—		—		16,859

Total	$	6,310,105,244	$	—	$	—	$	6,310,105,244

See notes to financial statements.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments

iSHARES^® MSCI CHILE CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 92.46%

AIRLINES — 4.58%
LATAM Airlines Group SA		1,708,298	$	21,419,508

				21,419,508
BANKS — 16.50%
Banco de Chile		125,642,686		18,301,399
Banco de Credito e Inversiones		266,459		17,279,725
Banco Santander Chile		416,136,924		30,426,917
Itau CorpBanca		1,166,531,941		11,146,687

				77,154,728
BEVERAGES — 4.54%
Cia. Cervecerias Unidas SA		1,078,883		14,707,343
Vina Concha y Toro SA		3,845,310		6,520,825

				21,228,168
CAPITAL MARKETS — 0.78%
Sociedad de Inversiones Oro Blanco SA		366,739,579		3,656,075

				3,656,075
CONSTRUCTION & ENGINEERING — 1.17%
SalfaCorp SA		3,612,373		5,466,557

				5,466,557
DIVERSIFIED FINANCIAL SERVICES — 1.05%
Inversiones La Construccion SA		340,000		4,894,736

				4,894,736
ELECTRIC UTILITIES — 13.40%
Enel Americas SA		185,528,025		40,022,969
Enel Chile SA		117,648,210		13,851,427
Engie Energia Chile SA		4,180,708		8,791,967

				62,666,363
FOOD & STAPLES RETAILING — 4.48%
Cencosud SA		6,971,345		20,957,076

				20,957,076
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 8.37%
AES Gener SA		23,519,276		8,229,726
Colbun SA		58,169,749		14,012,982
Enel Generacion Chile SA		19,911,875		16,879,024

				39,121,732
IT SERVICES — 1.56%
SONDA SA		3,952,966		7,309,125

				7,309,125


Security	Shares		Value
MARINE — 0.46%
Cia. Sud Americana de Vapores SA^a		41,129,979	$	2,143,414

				2,143,414
METALS & MINING — 1.70%
CAP SA		677,989		7,959,175

				7,959,175
MULTILINE RETAIL — 11.45%
Ripley Corp. SA		6,866,604		6,585,795
SACI Falabella		4,668,742		46,939,266

				53,525,061
OIL, GAS & CONSUMABLE FUELS — 7.89%
Empresas COPEC SA		2,888,773		36,876,398

				36,876,398
PAPER & FOREST PRODUCTS — 4.53%
Empresas CMPC SA		8,122,840		21,201,538

				21,201,538
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.65%
Parque Arauco SA		4,557,152		12,413,170

				12,413,170
TEXTILES, APPAREL & LUXURY GOODS — 0.85%
Forus SA		961,794		3,978,090

				3,978,090
WATER UTILITIES — 3.97%
Aguas Andinas SA Series A		19,485,307		12,445,122
Inversiones Aguas Metropolitanas SA		3,461,208		6,137,691

				18,582,813
WIRELESS TELECOMMUNICATION SERVICES — 2.53%
Empresa Nacional de Telecomunicaciones SA		1,133,842		11,846,848

				11,846,848

TOTAL COMMON STOCKS
(Cost: $291,745,101)				432,400,575

PREFERRED STOCKS — 7.45%

BEVERAGES — 2.04%
Embotelladora Andina SA Class B, Preference Shares		2,026,764		9,550,405

				9,550,405


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CHILE CAPPED ETF

August 31, 2017


Security	Shares		Value
CHEMICALS — 5.41%
Sociedad Quimica y Minera de Chile SA Series B, Preference Shares		540,685	$	25,267,069

				25,267,069

TOTAL PREFERRED STOCKS
(Cost: $16,928,654)				34,817,474

SHORT-TERM INVESTMENTS — 0.05%

MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares 0.96%^b,c		227,709		227,709

				227,709

TOTAL SHORT-TERM INVESTMENTS
(Cost: $227,709)				227,709


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.96%
(Cost: $308,901,464)^d	$	467,445,758
Other Assets, Less Liabilities — 0.04%		199,290

NET ASSETS — 100.00%	$	467,645,048

^a	Non-income earning security.

^b	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $357,550,061. Net unrealized appreciation was $109,895,697, of which $159,405,608 represented gross unrealized appreciation on investments and $49,509,911 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		345,371		—		(117,662	)^b		227,709	$	227,709	$	61	$	—	$	4,952

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	432,400,575	$	—	$	—	$	432,400,575
Preferred stocks		34,817,474		—		—		34,817,474
Money market funds		227,709		—		—		227,709

Total	$	467,445,758	$	—	$	—	$	467,445,758

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI COLOMBIA CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 69.46%

BANKS — 6.85%
Banco de Bogota SA		7,407	$	173,504
Bancolombia SA		115,436		1,293,600
Grupo Aval Acciones y Valores SA		179,112		79,679

				1,546,783
CAPITAL MARKETS — 2.41%
Bolsa de Valores de Colombia		61,903,125		544,449

				544,449
CONSTRUCTION & ENGINEERING — 2.01%
Construcciones El Condor SA		533,882		203,053
Constructora Conconcreto SA		715,380		250,218

				453,271
CONSTRUCTION MATERIALS — 12.96%
Cementos Argos SA		245,802		998,301
Cemex Latam Holdings SA^a		204,568		778,038
Grupo Argos SA/Colombia		161,581		1,151,173

				2,927,512
DIVERSIFIED FINANCIAL SERVICES — 9.81%
Corp. Financiera Colombiana SA		22,233		217,287
Grupo de Inversiones Suramericana SA		141,871		1,999,340

				2,216,627
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.87%
Empresa de Telecomunicaciones de Bogota^a		2,256,002		422,120

				422,120
ELECTRIC UTILITIES — 8.08%
Celsia SA ESP		120,402		192,166
Enel Americas SA		2,876,676		620,570
Interconexion Electrica SA ESP		223,049		1,011,933

				1,824,669
FOOD & STAPLES RETAILING — 4.32%
Almacenes Exito SA		187,271		976,802

				976,802
FOOD PRODUCTS — 4.59%
Grupo Nutresa SA		112,577		1,037,539

				1,037,539
GAS UTILITIES — 4.20%
Empresa de Energia de Bogota SA ESP		1,434,618		949,983

				949,983


Security	Shares		Value
METALS & MINING — 1.94%
Mineros SA		488,591	$	438,020

				438,020
OIL, GAS & CONSUMABLE FUELS — 10.42%
Canacol Energy Ltd.^a,b		204,061		683,594
Ecopetrol SA		2,243,987		1,043,965
Empresas COPEC SA		49,148		627,395

				2,354,954

TOTAL COMMON STOCKS
(Cost: $13,422,343)				15,692,729

PREFERRED STOCKS — 30.46%

AIRLINES — 2.51%
Avianca Holdings SA, Preference Shares		593,065		565,918

				565,918
BANKS — 21.16%
Banco Davivienda SA, Preference Shares		89,201		999,605
Bancolombia SA, Preference Shares		274,815		3,135,629
Grupo Aval Acciones y Valores SA, Preference Shares		1,441,209		646,020

				4,781,254
CONSTRUCTION MATERIALS — 3.54%
Cementos Argos SA, Preference Shares		77,646		279,492
Grupo Argos SA/Colombia, Preference Shares		82,370		520,268

				799,760
DIVERSIFIED FINANCIAL SERVICES — 3.25%
Grupo de Inversiones Suramericana SA, Preference Shares		53,732		734,237

				734,237

TOTAL PREFERRED STOCKS
(Cost: $5,689,240)				6,881,169

SHORT-TERM INVESTMENTS — 0.51%

MONEY MARKET FUNDS — 0.51%
BlackRock Cash Funds: Institutional, SL Agency Shares 1.32%^c,d,e		59,106		59,124


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI COLOMBIA CAPPED ETF

August 31, 2017


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares 0.96%^c,d		57,311	$	57,311

				116,435

TOTAL SHORT-TERM INVESTMENTS
(Cost: $116,439)				116,435

TOTAL INVESTMENTS IN SECURITIES —100.43%
(Cost: $19,228,022)^f				22,690,333
Other Assets, Less Liabilities — (0.43)%				(96,450	)

NET ASSETS — 100.00%			$	22,593,883

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $23,407,794. Net unrealized depreciation was $717,461, of which $3,532,300 represented gross unrealized appreciation on investments and $4,249,761 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)			Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		59,106	^b		—		59,106	$	59,124	$	186	$	(4	)	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		10,146		47,165	^b		—		57,311		57,311		3		—			190

										$	116,435	$	189	$	(4	)	$	190

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	15,692,729	$	—	$	—	$	15,692,729
Preferred stocks		6,881,169		—		—		6,881,169
Money market funds		116,435		—		—		116,435

Total	$	22,690,333	$	—	$	—	$	22,690,333

See notes to financial statements.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.80%

AEROSPACE & DEFENSE — 3.27%
Elbit Systems Ltd.		21,163	$	2,911,893

				2,911,893
AIRLINES — 0.17%
El Al Israel Airlines		229,008		150,686

				150,686
BANKS — 19.52%
Bank Hapoalim BM		856,208		5,760,333
Bank Leumi Le-Israel BM		1,164,574		6,097,807
First International Bank of Israel Ltd.		42,268		771,905
Israel Discount Bank Ltd. Class A^a		1,011,715		2,521,213
Mizrahi Tefahot Bank Ltd.		126,486		2,252,778

				17,404,036
BUILDING PRODUCTS — 0.73%
Caesarstone Ltd.^a		22,372		648,229

				648,229
CHEMICALS — 6.00%
Frutarom Industries Ltd.		34,820		2,671,703
Israel Chemicals Ltd.		466,448		2,010,591
Israel Corp. Ltd. (The)^a		3,507		669,201

				5,351,495
COMMUNICATIONS EQUIPMENT — 1.50%
Ituran Location and Control Ltd.		17,401		581,193
Radware Ltd.^a		43,008		757,371

				1,338,564
CONSTRUCTION & ENGINEERING — 1.43%
Electra Ltd./Israel		1,996		436,303
Shapir Engineering and Industry Ltd.		106,367		344,310
Shikun & Binui Ltd.		216,584		498,971

				1,279,584
DIVERSIFIED TELECOMMUNICATION SERVICES — 3.35%
B Communications Ltd.^a		16,613		246,695
Bezeq The Israeli Telecommunication Corp. Ltd.		1,862,099		2,741,244

				2,987,939
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.88%
Orbotech Ltd.^a		42,123		1,673,968

				1,673,968


Security	Shares		Value
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.73%
REIT 1 Ltd.		166,882	$	650,005

				650,005
FOOD & STAPLES RETAILING — 0.85%
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.		7,227		350,605
Shufersal Ltd.		75,995		412,112

				762,717
FOOD PRODUCTS — 0.91%
Strauss Group Ltd.		43,891		810,478

				810,478
HEALTH CARE EQUIPMENT & SUPPLIES — 0.31%
Mazor Robotics Ltd.^a		11,432		276,919

				276,919
HOUSEHOLD DURABLES — 0.59%
SodaStream International Ltd.^a		8,682		522,917

				522,917
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.33%
Kenon Holdings Ltd./Singapore^a		20,772		291,311

				291,311
INSURANCE — 2.90%
Clal Insurance Enterprises Holdings Ltd.^a		22,800		352,872
Harel Insurance Investments & Financial Services Ltd.		108,505		667,370
IDI Insurance Co. Ltd.		7,311		462,511
Menora Mivtachim Holdings Ltd.		29,680		360,051
Migdal Insurance & Financial Holding Ltd.		410,261		403,552
Phoenix Holdings Ltd. (The)^a		75,615		335,208

				2,581,564
INTERNET SOFTWARE & SERVICES — 1.86%
Wix.com Ltd.^a,b		25,528		1,661,873

				1,661,873
IT SERVICES — 0.62%
Formula Systems 1985 Ltd.		4,318		168,186
Matrix IT Ltd.		38,281		387,971

				556,157
MACHINERY — 0.55%
Kornit Digital Ltd.^a		28,905		491,385

				491,385


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2017


Security	Shares		Value
OIL, GAS & CONSUMABLE FUELS — 3.71%
Delek Group Ltd.		4,183	$	801,927
Jerusalem Oil Exploration^a		9,218		475,744
Naphtha Israel Petroleum Corp. Ltd.^a		43,381		292,699
Oil Refineries Ltd.		1,417,788		658,563
Paz Oil Co. Ltd.		6,769		1,076,125

				3,305,058
PHARMACEUTICALS — 15.48%
Neuroderm Ltd.^a,b		16,199		627,711
Taro Pharmaceutical Industries Ltd.^a,b		10,088		1,057,626
Teva Pharmaceutical Industries Ltd. ADR		764,140		12,119,260

				13,804,597
REAL ESTATE MANAGEMENT & DEVELOPMENT — 9.05%
Africa Israel Properties Ltd.^a		15,474		333,705
Airport City Ltd.^a		67,164		862,332
Alony Hetz Properties & Investments Ltd.		100,249		1,039,762
Amot Investments Ltd.		125,972		677,864
Azrieli Group Ltd.		38,587		2,223,783
Bayside Land Corp.		823		360,485
Big Shopping Centers Ltd.		2,377		167,407
Blue Square Real Estate Ltd.		3,699		155,214
Gazit-Globe Ltd.		94,644		921,464
Jerusalem Economy Ltd.^a		69,233		165,986
Melisron Ltd.		17,317		876,297
Norstar Holdings Inc.		15,223		283,608

				8,067,907
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.62%
Tower Semiconductor Ltd.^a		78,975		2,334,020

				2,334,020
SOFTWARE — 19.44%
Check Point Software Technologies Ltd.^a,b		109,264		12,223,364
CyberArk Software Ltd.^a		18,994		759,950
Nice Ltd.		51,903		4,017,195
Sapiens International Corp. NV^a		29,913		333,103

				17,333,612
SPECIALTY RETAIL — 0.38%
Delek Automotive Systems Ltd.		44,517		335,865

				335,865


Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 0.38%
Delta-Galil Industries Ltd.^b		10,763	$	338,796

				338,796
WIRELESS TELECOMMUNICATION SERVICES — 1.24%
Cellcom Israel Ltd.^a		59,152		524,949
Partner Communications Co. Ltd.^a		115,933		580,853

				1,105,802

TOTAL COMMON STOCKS
(Cost: $101,895,252)				88,977,377

SHORT-TERM INVESTMENTS — 17.47%

MONEY MARKET FUNDS — 17.47%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		15,525,641		15,530,299
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		40,997		40,997

				15,571,296

TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,570,750)				15,571,296

TOTAL INVESTMENTS IN SECURITIES — 117.27%
(Cost: $117,466,002)^f				104,548,673
Other Assets, Less Liabilities — (17.27)%				(15,396,683	)

NET ASSETS — 100.00%			$	89,151,990


		ADR — American Depositary Receipts

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $120,153,167. Net unrealized depreciation was $15,604,494, of which $15,531,405 represented gross unrealized appreciation on investments and $31,135,899 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI ISRAEL CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		13,438,272		2,087,369	^b		—		15,525,641	$	15,530,299	$	2,928	$	546	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		31,046		9,951	^b		—		40,997		40,997		1		—		454

										$	15,571,296	$	2,929	$	546	$	454

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	88,977,377	$	—	$	—	$	88,977,377
Money market funds		15,571,296		—		—		15,571,296

Total	$	104,548,673	$	—	$	—	$	104,548,673

See notes to financial statements.


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI RUSSIA CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 96.15%

BANKS — 22.37%
Sberbank of Russia PJSC		11,591,520	$	36,703,652
Sberbank of Russia PJSC ADR		4,270,972		58,298,768
VTB Bank PJSC		7,757,295,000		8,655,579
VTB Bank PJSC GDR^a		6,681,851		14,927,255

				118,585,254
CAPITAL MARKETS — 2.47%
Moscow Exchange MICEX-RTS PJSC		7,228,180		13,093,492

				13,093,492
CHEMICALS — 1.80%
PhosAgro PJSC GDR^a		686,602		9,543,768

				9,543,768
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.51%
Rostelecom PJSC		6,986,700		7,994,252

				7,994,252
ELECTRIC UTILITIES — 3.82%
Inter RAO UES PJSC		153,452,000		10,223,087
RusHydro PJSC		706,031,000		10,049,165

				20,272,252
FOOD & STAPLES RETAILING — 4.88%
Magnit PJSC GDR^a		618,739		25,857,103

				25,857,103
METALS & MINING — 13.47%
Alrosa PJSC		12,220,500		16,991,913
MMC Norilsk Nickel PJSC		153,164		25,793,266
Novolipetsk Steel PJSC		5,426,221		12,847,273
Severstal PJSC		1,006,195		15,783,791

				71,416,243
OIL, GAS & CONSUMABLE FUELS — 41.04%
Gazprom PJSC		24,639,727		49,945,564
Gazprom PJSC ADR		4,596,412		18,339,684
Lukoil PJSC		1,059,726		53,465,298
Lukoil PJSC ADR		286,204		14,381,751
Novatek PJSC GDR^a		228,796		24,183,737
Rosneft Oil Co. PJSC		1,363,360		7,174,220
Rosneft Oil Co. PJSC GDR^a		2,688,808		13,981,802
Surgutneftegas OJSC		18,900,900		8,743,395
Surgutneftegas OJSC ADR		727,240		3,326,396
Tatneft PJSC Class S		3,629,815		24,000,843

				217,542,690


Security	Shares		Value
WIRELESS TELECOMMUNICATION SERVICES — 4.79%
Mobile TeleSystems PJSC ADR		1,989,701	$	19,877,113
Sistema PJSC FC GDR^a		1,324,883		5,498,264

				25,375,377

TOTAL COMMON STOCKS
(Cost: $511,995,234)				509,680,431


PREFERRED STOCKS — 3.51%

OIL, GAS & CONSUMABLE FUELS — 3.51%
Surgutneftegas OJSC, Preference Shares		24,906,100		12,295,444
Transneft PJSC, Preference Shares		2,064		6,324,387

				18,619,831
TOTAL PREFERRED STOCKS
(Cost: $19,003,290)				18,619,831

SHORT-TERM INVESTMENTS — 0.20%

MONEY MARKET FUNDS — 0.20%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^b,c		1,026,049		1,026,049

				1,026,049

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,026,049)				1,026,049

TOTAL INVESTMENTS IN SECURITIES — 99.86%
(Cost: $532,024,573)^d				529,326,311
Other Assets, Less Liabilities — 0.14%				750,138

NET ASSETS — 100.00%			$	530,076,449

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

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

^b	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $570,200,939. Net unrealized depreciation was $40,874,628, of which $44,317,515 represented gross unrealized appreciation on investments and $85,192,143 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI RUSSIA CAPPED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		749,898		276,151^b		—		1,026,049	$	1,026,049	$	103	$	—	$	7,954

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	509,680,431	$	—	$	—	$	509,680,431
Preferred stocks		18,619,831		—		—		18,619,831
Money market funds		1,026,049		—		—		1,026,049

Total	$	529,326,311	$	—	$	—	$	529,326,311

See notes to financial statements.


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SOUTH AFRICA ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.85%

BANKS — 9.62%
Barclays Africa Group Ltd.		898,350	$	10,255,601
Capitec Bank Holdings Ltd.		57,494		3,983,331
Nedbank Group Ltd.		305,773		5,172,557
Standard Bank Group Ltd.		1,627,457		20,964,426

				40,375,915
CAPITAL MARKETS — 1.81%
Brait SE^a		567,430		2,512,015
Coronation Fund Managers Ltd.		375,692		2,033,463
Investec Ltd.		400,271		3,050,960

				7,596,438
CHEMICALS — 4.99%
Sasol Ltd.		694,454		20,938,075

				20,938,075
DISTRIBUTORS — 0.85%
Imperial Holdings Ltd.		221,363		3,553,048

				3,553,048
DIVERSIFIED FINANCIAL SERVICES — 8.85%
FirstRand Ltd.		4,245,252		18,137,245
PSG Group Ltd.		139,671		2,714,437
Remgro Ltd.		677,760		11,333,805
RMB Holdings Ltd.		965,226		4,934,739

				37,120,226
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.50%
Telkom SA SOC Ltd.		430,340		2,077,949

				2,077,949
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.81%
Fortress Income Fund Ltd.		1,166,313		3,536,403
Fortress Income Fund Ltd. Class A		1,695,329		2,287,830
Growthpoint Properties Ltd.		2,932,713		5,674,763
Hyprop Investments Ltd.		365,666		3,210,884
Redefine Properties Ltd.		6,877,387		5,640,542
Resilient REIT Ltd.		420,307		4,044,131

				24,394,553
FOOD & STAPLES RETAILING — 6.68%
Bid Corp. Ltd.		433,393		9,851,251
Massmart Holdings Ltd.		189,609		1,774,790
Pick n Pay Stores Ltd.		554,159		2,727,839
Shoprite Holdings Ltd.		581,914		10,090,986
SPAR Group Ltd. (The)		275,852		3,587,827

				28,032,693


Security	Shares		Value
FOOD PRODUCTS — 2.09%
Pioneer Foods Group Ltd.		209,711	$	2,043,462
Tiger Brands Ltd.		216,518		6,713,349

				8,756,811
HEALTH CARE PROVIDERS & SERVICES — 1.58%
Life Healthcare Group Holdings Ltd.		1,868,148		3,790,195
Netcare Ltd.		1,531,735		2,841,326

				6,631,521
HOUSEHOLD DURABLES — 4.38%
Steinhoff International Holdings NV Class H		3,799,281		18,374,518

				18,374,518
INDUSTRIAL CONGLOMERATES — 1.41%
Bidvest Group Ltd. (The)		449,550		5,930,013

				5,930,013
INSURANCE — 5.47%
Discovery Ltd.		484,726		5,616,444
Liberty Holdings Ltd.		222,334		1,772,172
MMI Holdings Ltd./South Africa		1,470,832		2,354,916
Rand Merchant Investment Holdings Ltd.		990,970		3,174,001
Sanlam Ltd.		1,816,786		10,036,179

				22,953,712
MEDIA — 22.07%
Naspers Ltd. Class N		409,180		92,585,967

				92,585,967
METALS & MINING — 4.74%
Anglo American Platinum Ltd.^a		87,365		2,369,391
AngloGold Ashanti Ltd.		559,122		5,663,705
Gold Fields Ltd.		1,139,428		5,084,580
Impala Platinum Holdings Ltd.^a		939,301		2,905,166
Sibanye Gold Ltd.		2,430,508		3,883,951

				19,906,793
MULTILINE RETAIL — 1.45%
Woolworths Holdings Ltd./South Africa		1,328,321		6,064,441

				6,064,441
OIL, GAS & CONSUMABLE FUELS — 0.74%
Exxaro Resources Ltd.		309,237		3,113,664

				3,113,664


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH AFRICA ETF

August 31, 2017


Security	Shares		Value
PAPER & FOREST PRODUCTS — 2.28%
Mondi Ltd.		164,259	$	4,482,858
Sappi Ltd.		756,763		5,088,755

				9,571,613
PHARMACEUTICALS — 2.65%
Aspen Pharmacare Holdings Ltd.		498,553		11,120,254

				11,120,254
REAL ESTATE MANAGEMENT & DEVELOPMENT — 1.57%
NEPI Rockcastle PLC^a		455,257		6,602,496

				6,602,496
SPECIALTY RETAIL — 3.00%
Foschini Group Ltd. (The)		326,800		3,853,713
Mr. Price Group Ltd.		340,033		4,741,757
Truworths International Ltd.		624,362		3,988,519

				12,583,989
WIRELESS TELECOMMUNICATION SERVICES — 7.31%
MTN Group Ltd.		2,132,452		21,202,291
Vodacom Group Ltd.		676,696		9,454,220

				30,656,511
TOTAL COMMON STOCKS
(Cost: $478,404,363)				418,941,200


Security	Shares		Value
SHORT-TERM INVESTMENTS — 0.05%

MONEY MARKET FUNDS — 0.05%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^b,c		225,602	$	225,602

				225,602

TOTAL SHORT-TERM INVESTMENTS
(Cost: $225,602)				225,602

TOTAL INVESTMENTS IN SECURITIES — 99.90%
(Cost: $478,629,965)^d				419,166,802
Other Assets, Less Liabilities — 0.10%				419,908

NET ASSETS — 100.00%			$	419,586,710

^a	Non-income earning security.

^b	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $496,795,224. Net unrealized depreciation was $77,628,422, of which $50,255,926 represented gross unrealized appreciation on investments and $127,884,348 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		3,684,420		—			(3,684,420	)^b		—	$	—	$	932	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		122,367		103,235	^b		—			225,602		225,602		14		—		1,058

											$	225,602	$	946	$	—	$	1,058

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH AFRICA ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	418,941,200	$	—	$	—	$	418,941,200
Money market funds		225,602		—		—		225,602

Total	$	419,166,802	$	—	$	—	$	419,166,802

See notes to financial statements.


SCHEDULES OF INVESTMENTS			37

Schedule of Investments

iSHARES^® MSCI TURKEY ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.93%

AEROSPACE & DEFENSE — 2.21%
Aselsan Elektronik Sanayi ve TAS		1,198,520	$	9,372,794

				9,372,794
AIRLINES — 2.61%
Pegasus Hava Tasimaciligi AS^a		214,335		1,740,729
Turk Hava Yollari AO^a		3,308,398		9,352,497

				11,093,226
AUTO COMPONENTS — 0.35%
Goodyear Lastikleri TAS^b		488,737		692,220
Kordsa Teknik Tekstil AS^b		352,031		780,014

				1,472,234
AUTOMOBILES — 2.98%
Ford Otomotiv Sanayi AS		420,566		5,790,997
Tofas Turk Otomobil Fabrikasi AS		749,000		6,855,339

				12,646,336
BANKS — 32.84%
Akbank Turk AS		13,187,954		39,496,443
Albaraka Turk Katilim Bankasi AS		1,900,140		820,034
Turkiye Garanti Bankasi AS		13,846,536		43,073,032
Turkiye Halk Bankasi AS		3,746,352		16,081,139
Turkiye Is Bankasi Class C		9,442,270		20,484,164
Turkiye Sinai Kalkinma Bankasi AS		6,438,769		2,834,696
Turkiye Vakiflar Bankasi Tao Class D		4,495,747		9,375,499
Yapi ve Kredi Bankasi AS^a		5,209,481		7,333,153

				139,498,160
BEVERAGES — 3.05%
Anadolu Efes Biracilik ve Malt Sanayii AS		1,242,166		7,627,382
Coca-Cola Icecek AS		457,248		5,316,052

				12,943,434
BUILDING PRODUCTS — 0.59%
Trakya Cam Sanayii AS		2,366,186		2,522,068

				2,522,068
CAPITAL MARKETS — 0.15%
Verusa Holding AS^b		147,818		645,637

				645,637
CHEMICALS — 2.66%
Gubre Fabrikalari TAS^a,b		503,767		733,936
Petkim Petrokimya Holding AS		4,043,373		7,307,830
Soda Sanayii AS		2,156,408		3,254,083

				11,295,849


Security	Shares		Value
CONSTRUCTION & ENGINEERING — 0.77%
Tekfen Holding AS		886,718	$	3,289,991

				3,289,991
CONSTRUCTION MATERIALS — 0.68%
Adana Cimento Sanayii TAS Class A^b		319,215		586,182
Akcansa Cimento AS		288,711		932,391
Cimsa Cimento Sanayi VE Ticaret AS		325,943		1,352,845

				2,871,418
CONTAINERS & PACKAGING — 0.17%
Anadolu Cam Sanayii AS		1,131,040		730,538

				730,538
DIVERSIFIED FINANCIAL SERVICES — 3.98%
Haci Omer Sabanci Holding AS		5,503,320		16,896,263

				16,896,263
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.54%
Turk Telekomunikasyon AS^a		3,146,496		6,543,523

				6,543,523
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 2.52%
Emlak Konut Gayrimenkul Yatirim Ortakligi AS^a		11,384,128		9,694,092
Is Gayrimenkul Yatirim Ortakligi AS		2,448,303		1,006,963

				10,701,055
FOOD & STAPLES RETAILING — 7.07%
BIM Birlesik Magazalar AS		1,274,038		28,229,542
Migros Ticaret AS^a		212,989		1,782,851

				30,012,393
FOOD PRODUCTS — 1.30%
Ulker Biskuvi Sanayi AS		922,169		5,512,902

				5,512,902
GAS UTILITIES — 0.48%
Aygaz AS		448,874		2,035,993

				2,035,993
HEALTH CARE PROVIDERS & SERVICES — 0.20%
Selcuk Ecza Deposu Ticaret ve Sanayi AS		749,244		852,856

				852,856
HOTELS, RESTAURANTS & LEISURE — 0.28%
NET Holding AS^a,b		1,544,391		1,176,449

				1,176,449


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI TURKEY ETF

August 31, 2017


Security	Shares		Value
HOUSEHOLD DURABLES — 2.61%
Arcelik AS		1,417,629	$	9,854,483
Vestel Elektronik Sanayi ve Ticaret AS^a,b		505,885		1,224,951

				11,079,434
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.80%
Aksa Enerji Uretim AS^a,b		924,689		993,641
Zorlu Enerji Elektrik Uretim AS^a,b		4,786,435		2,412,245

				3,405,886
INDUSTRIAL CONGLOMERATES — 8.12%
Alarko Holding AS^b		471,851		922,505
Dogan Sirketler Grubu Holding AS^a,b		7,837,924		2,088,569
Enka Insaat ve Sanayi AS		1		2
KOC Holding AS		4,559,930		23,826,199
Turkiye Sise ve Cam Fabrikalari AS		4,718,911		6,068,548
Yazicilar Holding AS^b		239,788		1,566,847

				34,472,670
INSURANCE — 0.65%
Anadolu Anonim Turk Sigorta Sirketi		1,055,703		892,862
Anadolu Hayat Emeklilik AS		518,769		1,021,746
AvivaSA Emeklilik ve Hayat AS^b		142,364		857,677

				2,772,285
MACHINERY — 0.85%
Otokar Otomotiv Ve Savunma Sanayi AS^b		50,290		1,682,378
Turk Traktor ve Ziraat Makineleri AS		79,699		1,915,980

				3,598,358
MEDIA — 0.38%
Besiktas Futbol Yatirimlari Sanayi ve Ticaret AS^a,b		723,861		991,691
Fenerbahce Futbol AS^a,b		59,723		624,120

				1,615,811
METALS & MINING — 6.27%
Borusan Mannesmann Boru Sanayi ve Ticaret AS^b		256,573		889,539
Eregli Demir ve Celik Fabrikalari TAS		8,392,914		19,982,262
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D^a		4,673,739		3,221,821


Security	Shares		Value
Koza Altin Isletmeleri AS^a		274,196	$	2,552,507

				26,646,129
OIL, GAS & CONSUMABLE FUELS — 6.00%
Tupras Turkiye Petrol Rafinerileri AS		750,541		25,499,547

				25,499,547
PERSONAL PRODUCTS — 0.32%
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS^b		1,033,404		1,361,889

				1,361,889
SOFTWARE — 0.35%
Logo Yazilim Sanayi Ve Ticaret AS^a,b		89,878		1,504,670

				1,504,670
TEXTILES, APPAREL & LUXURY GOODS — 0.38%
Aksa Akrilik Kimya Sanayii AS		443,637		1,611,333

				1,611,333
TRANSPORTATION INFRASTRUCTURE — 1.42%
TAV Havalimanlari Holding AS		979,948		6,022,939

				6,022,939
WIRELESS TELECOMMUNICATION SERVICES — 5.35%
Turkcell Iletisim Hizmetleri AS		5,934,340		22,705,719

				22,705,719

TOTAL COMMON STOCKS
(Cost: $534,548,881)				424,409,789

SHORT-TERM INVESTMENTS — 3.78%

MONEY MARKET FUNDS — 3.78%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		15,951,030		15,955,815
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		100,988		100,988

				16,056,803

TOTAL SHORT-TERM INVESTMENTS
(Cost: $16,052,873)				16,056,803


SCHEDULES OF INVESTMENTS			39

Schedule of Investments (Continued)

iSHARES^® MSCI TURKEY ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 103.71%
(Cost: $550,601,754)^f	$	440,466,592
Other Assets, Less Liabilities — (3.71)%		(15,740,009	)

NET ASSETS — 100.00%	$	424,726,583

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $561,032,448. Net unrealized depreciation was $120,565,856, of which $22,047,299 represented gross unrealized appreciation on investments and $142,613,155 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		36,614,575		—		(20,663,545	)^b		15,951,030	$	15,955,815	$	7,747	$	3,930	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		284,911		—		(183,923	)^b		100,988		100,988		21		—		1,782

										$	16,056,803	$	7,768	$	3,930	$	1,782

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	424,409,789	$	—	$	—	$	424,409,789
Money market funds		16,056,803		—		—		16,056,803

Total	$	440,466,592	$	—	$	—	$	440,466,592

See notes to financial statements.


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.83%

AEROSPACE & DEFENSE — 1.92%
Arconic Inc.		8,510	$	216,750
Boeing Co. (The)		909		217,851
General Dynamics Corp.		1,079		217,257
Huntington Ingalls Industries Inc.		1,028		219,951
L3 Technologies Inc.		1,198		217,413
Lockheed Martin Corp.		709		216,521
Northrop Grumman Corp.		798		217,223
Raytheon Co.		1,206		219,504
Rockwell Collins Inc.		1,664		218,067
Textron Inc.		4,452		218,549
TransDigm Group Inc.		794		206,964
United Technologies Corp.		1,867		223,517

				2,609,567
AIR FREIGHT & LOGISTICS — 0.64%
CH Robinson Worldwide Inc.		3,110		219,659
Expeditors International of Washington Inc.		3,903		218,958
FedEx Corp.		1,034		221,669
United Parcel Service Inc. Class B		1,891		216,255

				876,541
AIRLINES — 0.63%
American Airlines Group Inc.		4,739		212,023
Delta Air Lines Inc.		4,594		216,791
Southwest Airlines Co.		4,079		212,679
United Continental Holdings Inc.^a		3,391		210,106

				851,599
AUTO COMPONENTS — 0.81%
Autoliv Inc.^b		2,026		220,064
BorgWarner Inc.		4,856		225,367
Delphi Automotive PLC		2,275		219,310
Goodyear Tire & Rubber Co. (The)		7,131		216,069
Lear Corp.		1,484		221,918

				1,102,728
AUTOMOBILES — 0.64%
Ford Motor Co.		19,858		219,034
General Motors Co.		6,036		220,555
Harley-Davidson Inc.		4,502		211,639
Tesla Inc.^a,b		617		219,590

				870,818
BANKS — 3.42%
Bank of America Corp.		9,021		215,512
BB&T Corp.		4,656		214,595
CIT Group Inc.		4,757		213,351


Security	Shares		Value
Citigroup Inc.		3,167	$	215,451
Citizens Financial Group Inc.		6,335		209,879
Comerica Inc.		3,056		208,572
East West Bancorp. Inc.		3,869		214,227
Fifth Third Bancorp.		8,040		210,085
First Republic Bank/CA		2,185		212,054
Huntington Bancshares Inc./OH		16,840		212,016
JPMorgan Chase & Co.		2,338		212,501
KeyCorp		12,216		210,237
M&T Bank Corp.		1,397		206,560
People’s United Financial Inc.		12,752		212,958
PNC Financial Services Group Inc. (The)^c		1,677		210,313
Regions Financial Corp.		14,839		209,378
Signature Bank/New York NY^a		1,637		210,093
SunTrust Banks Inc.		3,809		209,876
SVB Financial Group^a		1,264		214,046
U.S. Bancorp.		4,125		211,406
Wells Fargo & Co.		4,142		211,532
Zions BanCorp.		4,797		209,437

				4,654,079
BEVERAGES — 1.12%
Brown-Forman Corp. Class B		4,254		225,632
Coca-Cola Co. (The)		4,727		215,315
Constellation Brands Inc. Class A		1,083		216,708
Dr Pepper Snapple Group Inc.		2,374		216,153
Molson Coors Brewing Co. Class B		2,361		211,900
Monster Beverage Corp.^a		3,891		217,196
PepsiCo Inc.		1,851		214,216

				1,517,120
BIOTECHNOLOGY — 2.35%
AbbVie Inc.		2,964		223,189
Alexion Pharmaceuticals Inc.^a		1,559		222,017
Alkermes PLC^a		4,253		215,967
Amgen Inc.		1,266		225,057
Biogen Inc.^a		754		238,686
BioMarin Pharmaceutical Inc.^a		2,619		236,208
Celgene Corp.^a		1,656		230,068
Gilead Sciences Inc.		2,906		243,261
Incyte Corp.^a		1,765		242,529
Regeneron Pharmaceuticals Inc.^a		449		223,108
Seattle Genetics Inc.^a		4,543		238,644
TESARO Inc.^a,b		1,697		219,151
United Therapeutics Corp.^a,b		1,672		218,698
Vertex Pharmaceuticals Inc.^a		1,399		224,595

				3,201,178


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
BUILDING PRODUCTS — 0.96%
Allegion PLC		2,763	$	217,476
AO Smith Corp.		3,986		221,980
Fortune Brands Home & Security Inc.		3,446		215,479
Johnson Controls International PLC		5,534		219,091
Lennox International Inc.		1,325		219,592
Masco Corp.		5,917		217,568

				1,311,186
CAPITAL MARKETS — 3.80%
Affiliated Managers Group Inc.		1,229		217,152
Ameriprise Financial Inc.		1,547		214,275
Bank of New York Mellon Corp. (The)		4,073		212,936
BlackRock Inc.^c		515		215,790
CBOE Holdings Inc.		2,153		217,216
Charles Schwab Corp. (The)		5,418		216,178
CME Group Inc.		1,691		212,728
E*TRADE Financial Corp.^a		5,221		214,113
Eaton Vance Corp. NVS		4,572		217,536
Franklin Resources Inc.		5,036		217,706
Goldman Sachs Group Inc. (The)		966		216,133
Intercontinental Exchange Inc.		3,285		212,441
Invesco Ltd.		6,557		214,939
Moody’s Corp.		1,620		217,129
Morgan Stanley		4,668		212,394
MSCI Inc.		1,877		215,123
Nasdaq Inc.		2,831		213,401
Northern Trust Corp.		2,390		211,515
Raymond James Financial Inc.		2,723		213,265
S&P Global Inc.		1,418		218,840
SEI Investments Co.		3,750		219,225
State Street Corp.		2,299		212,635
T Rowe Price Group Inc.		2,556		215,624
TD Ameritrade Holding Corp.		4,979		215,690

				5,163,984
CHEMICALS — 2.70%
Air Products & Chemicals Inc.		1,469		213,548
Albemarle Corp.		1,869		217,290
Axalta Coating Systems Ltd.^a		7,373		217,651
Celanese Corp. Series A		2,188		212,280
CF Industries Holdings Inc.		7,415		214,961
Dow Chemical Co. (The)		3,329		221,878
Eastman Chemical Co.		2,527		217,827
Ecolab Inc.		1,636		218,079


Security	Shares		Value
FMC Corp.		2,544	$	219,344
International Flavors & Fragrances Inc.		1,578		215,949
LyondellBasell Industries NV Class A		2,376		215,242
Monsanto Co.		1,843		216,000
Mosaic Co. (The)		10,527		210,329
PPG Industries Inc.		2,071		216,047
Praxair Inc.		1,630		214,410
Sherwin-Williams Co. (The)		633		214,758
WR Grace & Co.		3,012		215,298

				3,670,891
COMMERCIAL SERVICES & SUPPLIES — 0.96%
Cintas Corp.		1,605		216,691
Republic Services Inc.		3,338		217,771
Rollins Inc.		4,791		212,768
Stericycle Inc.^a		2,990		214,951
Waste Connections Inc.		3,311		220,811
Waste Management Inc.		2,831		218,299

				1,301,291
COMMUNICATIONS EQUIPMENT — 1.29%
Arista Networks Inc.^a,b		1,237		217,897
Cisco Systems Inc.		6,836		220,188
CommScope Holding Co. Inc.^a		6,531		215,915
F5 Networks Inc.^a		1,827		218,107
Harris Corp.		1,792		220,237
Juniper Networks Inc.		7,786		215,906
Motorola Solutions Inc.		2,473		217,921
Palo Alto Networks Inc.^a,b		1,667		221,194

				1,747,365
CONSTRUCTION & ENGINEERING — 0.33%
Fluor Corp.		5,689		219,425
Jacobs Engineering Group Inc.		4,136		225,370

				444,795
CONSTRUCTION MATERIALS — 0.34%
Martin Marietta Materials Inc.		1,097		232,553
Vulcan Materials Co.		1,899		230,273

				462,826
CONSUMER FINANCE — 0.94%
Ally Financial Inc.		9,445		213,457
American Express Co.		2,509		216,025
Capital One Financial Corp.		2,637		209,932
Discover Financial Services		3,592		211,748
Navient Corp.		15,732		207,662


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
Synchrony Financial		7,036	$	216,639

				1,275,463
CONTAINERS & PACKAGING — 1.12%
Avery Dennison Corp.		2,294		216,233
Ball Corp.		5,467		218,625
Crown Holdings Inc.^a		3,756		221,717
International Paper Co.		3,928		211,601
Packaging Corp. of America		1,943		218,413
Sealed Air Corp.		4,794		212,758
WestRock Co.		3,885		221,095

				1,520,442
DISTRIBUTORS — 0.32%
Genuine Parts Co.		2,579		213,618
LKQ Corp.^a		6,264		217,048

				430,666
DIVERSIFIED CONSUMER SERVICES — 0.14%
H&R Block Inc.		7,232		193,384

				193,384
DIVERSIFIED FINANCIAL SERVICES — 0.47%
Berkshire Hathaway Inc. Class B^a		1,194		216,305
Leucadia National Corp.		8,850		209,568
Voya Financial Inc.		5,643		215,732

				641,605
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.78%
AT&T Inc.		5,656		211,874
CenturyLink Inc.		10,621		209,446
Level 3 Communications Inc.^a		3,950		214,998
Verizon Communications Inc.		4,405		211,308
Zayo Group Holdings Inc.^a,b		6,250		213,563

				1,061,189
ELECTRIC UTILITIES — 2.52%
Alliant Energy Corp.		5,002		213,786
American Electric Power Co. Inc.		2,915		214,631
Duke Energy Corp.		2,463		215,020
Edison International		2,672		214,241
Entergy Corp.		2,691		213,046
Eversource Energy		3,406		214,578
Exelon Corp.		5,599		212,034
FirstEnergy Corp.		6,573		214,148
NextEra Energy Inc.		1,429		215,079
OGE Energy Corp.		5,932		211,891
PG&E Corp.		3,060		215,363
Pinnacle West Capital Corp.		2,382		214,309
PPL Corp.		5,427		212,956


Security	Shares		Value
Southern Co. (The)		4,439	$	214,226
Westar Energy Inc.		4,156		213,244
Xcel Energy Inc.		4,352		215,424

				3,423,976
ELECTRICAL EQUIPMENT — 0.96%
Acuity Brands Inc.		1,216		214,977
AMETEK Inc.		3,430		216,948
Eaton Corp. PLC		3,033		217,648
Emerson Electric Co.		3,662		216,204
Rockwell Automation Inc.		1,350		221,481
Sensata Technologies Holding NV^a,b		4,852		216,690

				1,303,948
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 1.45%
Amphenol Corp. Class A		2,693		217,972
Arrow Electronics Inc.^a		2,793		221,848
Avnet Inc.		5,735		221,199
CDW Corp./DE		3,457		219,243
Corning Inc.		7,482		215,182
Flex Ltd.^a,b		13,645		222,004
FLIR Systems Inc.		5,665		215,270
TE Connectivity Ltd.		2,749		218,820
Trimble Inc.^a		5,624		217,536

				1,969,074
ENERGY EQUIPMENT & SERVICES — 1.25%
Baker Hughes a GE Co.		6,447		218,553
Core Laboratories NV^b		2,393		211,015
Halliburton Co.		5,497		214,218
Helmerich & Payne Inc.		4,798		203,147
National Oilwell Varco Inc.		7,026		215,488
Schlumberger Ltd.		3,357		213,203
TechnipFMC PLC^a		8,324		215,009
Weatherford International PLC^a,b		54,124		207,295

				1,697,928
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.85%
Alexandria Real Estate Equities Inc.^b		1,780		215,932
American Tower Corp.		1,487		220,150
AvalonBay Communities Inc.		1,135		213,074
Boston Properties Inc.		1,769		213,341
Brixmor Property Group Inc.		11,151		208,747
Camden Property Trust		2,377		212,694
Colony NorthStar Inc. Class A^b		16,567		217,193
Crown Castle International Corp.		2,008		217,748
Digital Realty Trust Inc.^b		1,820		215,379


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
Duke Realty Corp.		7,313	$	217,342
Equinix Inc.		460		215,469
Equity Residential		3,163		212,395
Essex Property Trust Inc.		809		215,170
Extra Space Storage Inc.^b		2,794		216,898
Federal Realty Investment Trust		1,676		212,735
GGP Inc.		10,218		212,023
HCP Inc.		7,259		216,391
Host Hotels & Resorts Inc.		12,139		219,959
Iron Mountain Inc.		5,574		219,727
Kimco Realty Corp.^b		10,825		212,386
Liberty Property Trust		5,086		216,664
Macerich Co. (The)^b		3,952		208,547
Mid-America Apartment Communities Inc.		2,006		213,559
National Retail Properties Inc.		5,169		216,219
Prologis Inc.		3,433		217,515
Public Storage		1,052		216,018
Realty Income Corp.		3,702		213,087
Regency Centers Corp.		3,268		210,198
SBA Communications Corp.^a		1,410		216,505
Simon Property Group Inc.^b		1,351		211,904
SL Green Realty Corp.		2,196		211,650
UDR Inc.		5,504		213,665
Ventas Inc.		3,177		217,434
VEREIT Inc.		25,161		212,359
Vornado Realty Trust		2,876		214,233
Welltower Inc.		2,987		218,708
Weyerhaeuser Co.		6,778		221,031

				7,954,049
FOOD & STAPLES RETAILING — 0.96%
Costco Wholesale Corp.		1,407		220,533
CVS Health Corp.		2,846		220,110
Kroger Co. (The)		9,883		216,141
Sysco Corp.		4,107		216,316
Wal-Mart Stores Inc.		2,745		214,302
Walgreens Boots Alliance Inc.		2,658		216,627

				1,304,029
FOOD PRODUCTS — 2.17%
Archer-Daniels-Midland Co.		5,136		212,219
Bunge Ltd.		2,839		211,875
Campbell Soup Co.		4,172		192,746
Conagra Brands Inc.		6,484		210,471
General Mills Inc.		3,905		207,980
Hershey Co. (The)		2,043		214,352


Security	Shares		Value
Hormel Foods Corp.		6,842	$	210,323
Ingredion Inc.		1,756		217,428
JM Smucker Co. (The)		2,043		214,025
Kellogg Co.		3,167		207,312
Kraft Heinz Co. (The)		2,596		209,627
McCormick & Co. Inc./MD NVS		2,264		215,374
Mondelez International Inc. Class A		5,180		210,619
Tyson Foods Inc. Class A		3,397		215,030

				2,949,381
GAS UTILITIES — 0.31%
Atmos Energy Corp.		2,424		213,409
UGI Corp.		4,350		214,933

				428,342
HEALTH CARE EQUIPMENT & SUPPLIES — 3.22%
Abbott Laboratories		4,345		221,334
Align Technology Inc.^a		1,243		219,688
Baxter International Inc.		3,486		216,271
Becton Dickinson and Co.		1,080		215,395
Boston Scientific Corp.^a		8,025		221,089
Cooper Companies Inc. (The)		872		218,724
CR Bard Inc.		673		215,905
Danaher Corp.		2,610		217,726
DENTSPLY SIRONA Inc.		3,913		221,358
DexCom Inc.^a		2,845		212,265
Edwards Lifesciences Corp.^a		1,919		218,114
Hologic Inc.^a		5,668		218,785
IDEXX Laboratories Inc.^a		1,422		221,022
Intuitive Surgical Inc.^a,b		219		220,023
Medtronic PLC		2,718		219,125
ResMed Inc.		2,890		224,206
Stryker Corp.		1,533		216,720
Teleflex Inc.		1,036		219,373
Varian Medical Systems Inc.^a,b		2,106		223,763
Zimmer Biomet Holdings Inc.		1,898		216,885

				4,377,771
HEALTH CARE PROVIDERS & SERVICES — 3.21%
Aetna Inc.		1,374		216,680
AmerisourceBergen Corp.		2,746		220,366
Anthem Inc.		1,113		218,193
Cardinal Health Inc.		3,245		218,908
Centene Corp.^a		2,501		222,214
Cigna Corp.		1,196		217,744
DaVita Inc.^a		3,747		219,424
Envision Healthcare Corp.^a		4,120		215,929
Express Scripts Holding Co.^a		3,534		222,006


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
HCA Healthcare Inc.^a		2,697	$	212,146
Henry Schein Inc.^a		1,250		217,100
Humana Inc.		848		218,462
Laboratory Corp. of America Holdings^a		1,388		217,736
McKesson Corp.		1,453		216,947
MEDNAX Inc.^a		4,859		217,926
Patterson Companies Inc.		5,692		219,142
Quest Diagnostics Inc.		2,004		217,133
UnitedHealth Group Inc.		1,105		219,785
Universal Health Services Inc. Class B		1,972		213,232
VCA Inc.^a		2,326		216,225

				4,357,298
HEALTH CARE TECHNOLOGY — 0.33%
Cerner Corp.^a		3,297		223,471
Veeva Systems Inc. Class A^a		3,850		229,075

				452,546
HOTELS, RESTAURANTS & LEISURE — 2.74%
Aramark		5,369		218,465
Carnival Corp.		3,152		219,001
Chipotle Mexican Grill Inc.^a,b		695		220,113
Darden Restaurants Inc.		2,567		210,725
Domino’s Pizza Inc.		1,200		218,712
Hilton Worldwide Holdings Inc.		3,378		217,307
Las Vegas Sands Corp.		3,567		221,903
Marriott International Inc./MD Class A		2,134		221,040
McDonald’s Corp.		1,353		216,439
MGM Resorts International		6,756		222,678
Norwegian Cruise Line Holdings Ltd.^a		3,715		220,894
Royal Caribbean Cruises Ltd.		1,784		222,037
Starbucks Corp.		3,945		216,423
Vail Resorts Inc.		969		220,883
Wyndham Worldwide Corp.		2,211		220,392
Wynn Resorts Ltd.		1,595		221,689
Yum! Brands Inc.		2,828		217,247

				3,725,948
HOUSEHOLD DURABLES — 1.60%
DR Horton Inc.		5,993		216,647
Garmin Ltd.		4,082		210,223
Leggett & Platt Inc.		4,741		217,944
Lennar Corp. Class A		4,155		215,063
Mohawk Industries Inc.^a		868		219,708


Security	Shares		Value
Newell Brands Inc.		4,465	$	215,570
NVR Inc.^a		80		217,668
PulteGroup Inc.		8,472		218,747
Toll Brothers Inc.		5,696		221,916
Whirlpool Corp.		1,273		218,472

				2,171,958
HOUSEHOLD PRODUCTS — 0.95%
Church & Dwight Co. Inc.		4,311		216,283
Clorox Co. (The)		1,560		216,106
Colgate-Palmolive Co.		3,014		215,923
Kimberly-Clark Corp.		1,765		217,607
Procter & Gamble Co. (The)		2,318		213,882
Spectrum Brands Holdings Inc.		1,973		216,951

				1,296,752
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.15%
AES Corp./VA		18,760		207,110

				207,110
INDUSTRIAL CONGLOMERATES — 0.64%
3M Co.		1,061		216,784
General Electric Co.		8,756		214,960
Honeywell International Inc.		1,570		217,084
Roper Technologies Inc.		931		214,744

				863,572
INSURANCE — 5.03%
Aflac Inc.		2,655		219,170
Alleghany Corp.^a		275		154,762
Allstate Corp. (The)		2,335		211,317
American Financial Group Inc./OH		2,098		213,597
American International Group Inc.		3,528		213,373
Aon PLC		1,556		216,533
Arch Capital Group Ltd.^a		2,206		214,732
Arthur J Gallagher & Co.		3,673		212,667
Assurant Inc.		2,182		206,614
Athene Holding Ltd. Class A^a		4,029		215,592
Axis Capital Holdings Ltd.		3,418		205,900
Brighthouse Financial Inc.^a		3,861		220,347
Chubb Ltd.		1,496		211,564
Cincinnati Financial Corp.		2,774		213,154
Everest Re Group Ltd.		824		208,044
FNF Group		4,463		215,295
Hartford Financial Services Group Inc. (The)		3,897		210,711
Lincoln National Corp.		3,145		213,420
Loews Corp.		4,526		210,821


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
Markel Corp.^a		203	$	213,554
Marsh & McLennan Companies Inc.		2,790		217,843
MetLife Inc.		4,478		209,705
Principal Financial Group Inc.		3,386		211,693
Progressive Corp. (The)		4,439		206,325
Prudential Financial Inc.		2,089		213,245
Reinsurance Group of America Inc.		1,568		210,818
RenaissanceRe Holdings Ltd.		759		105,622
Torchmark Corp.		2,760		212,437
Travelers Companies Inc. (The)		1,699		205,885
Unum Group		4,417		212,811
Willis Towers Watson PLC		1,443		214,242
WR Berkley Corp.		3,184		212,182
XL Group Ltd.		4,996		204,636

				6,838,611
INTERNET & DIRECT MARKETING RETAIL — 0.97%
Amazon.com Inc.^a		227		222,596
Expedia Inc.		1,437		213,193
Liberty Interactive Corp. QVC Group Series A^a		9,809		216,975
Netflix Inc.^a		1,295		226,250
Priceline Group Inc. (The)^a		120		222,250
TripAdvisor Inc.^a		5,140		219,632

				1,320,896
INTERNET SOFTWARE & SERVICES — 1.47%
Akamai Technologies Inc.^a		4,777		225,236
Alphabet Inc. Class A^a		114		108,897
Alphabet Inc. Class C^a		119		111,780
CoStar Group Inc.^a,b		758		217,258
eBay Inc.^a		6,183		223,392
Facebook Inc. Class A^a		1,292		222,185
MercadoLibre Inc.		872		225,386
Twitter Inc.^a,b		12,904		218,207
VeriSign Inc.^a,b		2,114		219,327
Zillow Group Inc. Class C^a,b		5,655		224,051

				1,995,719
IT SERVICES — 3.68%
Accenture PLC Class A		1,660		217,062
Alliance Data Systems Corp.		966		217,833
Automatic Data Processing Inc.		2,054		218,689
Broadridge Financial Solutions Inc.		2,795		218,373
Cognizant Technology Solutions Corp. Class A		3,073		217,476
DXC Technology Co.		2,531		215,135


Security	Shares		Value
Fidelity National Information Services Inc.		2,348	$	218,176
First Data Corp. Class A^a		11,808		217,385
Fiserv Inc.^a,b		1,753		216,864
FleetCor Technologies Inc.^a		1,514		217,668
Gartner Inc.^a		1,811		218,388
Global Payments Inc.		2,297		219,341
International Business Machines Corp.		1,492		213,401
Jack Henry & Associates Inc.		2,143		220,879
Leidos Holdings Inc.		3,839		223,890
MasterCard Inc. Class A		1,618		215,679
Paychex Inc.		3,822		217,969
PayPal Holdings Inc.^a		3,576		220,568
Sabre Corp.		11,709		215,914
Total System Services Inc.		3,236		223,672
Vantiv Inc. Class A^a		3,011		212,848
Visa Inc. Class A		2,075		214,804
Western Union Co. (The)		11,286		213,531

				5,005,545
LEISURE PRODUCTS — 0.47%
Hasbro Inc.		2,257		221,750
Mattel Inc.		13,047		211,623
Polaris Industries Inc.^b		2,270		211,632

				645,005
LIFE SCIENCES TOOLS & SERVICES — 0.97%
Agilent Technologies Inc.		3,409		220,631
Illumina Inc.^a		1,116		228,177
Mettler-Toledo International Inc.^a		364		220,253
Quintiles IMS Holdings Inc.^a		2,170		208,385
Thermo Fisher Scientific Inc.		1,210		226,439
Waters Corp.^a		1,203		220,727

				1,324,612
MACHINERY — 3.06%
AGCO Corp.		3,212		219,861
Caterpillar Inc.		1,859		218,414
Cummins Inc.		1,410		224,726
Deere & Co.		1,855		215,050
Dover Corp.		2,515		213,473
Flowserve Corp.		5,583		219,300
Fortive Corp.		3,315		215,376
IDEX Corp.		1,873		220,227
Illinois Tool Works Inc.		1,570		215,891
Ingersoll-Rand PLC		2,534		216,378


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
Middleby Corp. (The)^a		1,832	$	222,954
PACCAR Inc.		3,350		222,206
Parker-Hannifin Corp.		1,366		219,776
Pentair PLC		3,486		216,306
Snap-on Inc.		1,480		218,404
Stanley Black & Decker Inc.		1,545		222,480
WABCO Holdings Inc.^a		1,539		221,031
Wabtec Corp./DE^b		3,060		215,944
Xylem Inc./NY		3,552		220,473

				4,158,270
MEDIA — 2.70%
CBS Corp. Class B NVS		3,363		215,434
Charter Communications Inc. Class A^a		552		219,994
Comcast Corp. Class A		5,334		216,614
Discovery Communications Inc. Class A^a,b		4,100		91,061
Discovery Communications Inc. Class C NVS^a		5,702		119,799
DISH Network Corp. Class A^a		3,786		216,900
Interpublic Group of Companies Inc. (The)		10,638		214,249
Liberty Broadband Corp. Class C^a		2,165		219,812
Liberty Global PLC Series A^a		1,763		59,942
Liberty Global PLC Series C NVS^a		4,745		156,727
Liberty Media Corp.-Liberty SiriusXM Class A^a		1,696		75,811
Liberty Media Corp.-Liberty SiriusXM Class C^a		3,272		145,964
News Corp. Class A		15,978		213,626
Omnicom Group Inc.		2,938		212,652
Scripps Networks Interactive Inc. Class A		2,487		213,012
Sirius XM Holdings Inc.^b		38,506		221,409
Time Warner Inc.		2,118		214,130
Twenty-First Century Fox Inc. Class A		5,593		154,311
Twenty-First Century Fox Inc. Class B		2,351		63,712
Viacom Inc. Class B NVS		7,346		210,096
Walt Disney Co. (The)		2,094		211,913

				3,667,168
METALS & MINING — 0.63%
Freeport-McMoRan Inc.^a		14,024		207,275
Newmont Mining Corp.		5,797		222,257


Security	Shares		Value
Nucor Corp.		3,927	$	216,417
Steel Dynamics Inc.		6,188		213,176

				859,125
MORTGAGE REAL ESTATE INVESTMENT — 0.32%
AGNC Investment Corp.		9,909		213,440
Annaly Capital Management Inc.		17,356		216,950

				430,390
MULTI-UTILITIES — 1.73%
Ameren Corp.		3,552		213,084
CenterPoint Energy Inc.		7,227		214,064
CMS Energy Corp.		4,430		215,032
Consolidated Edison Inc.		2,543		214,298
Dominion Energy Inc.		2,678		210,946
DTE Energy Co.		1,927		216,441
NiSource Inc.		7,926		212,972
Public Service Enterprise Group Inc.		4,543		212,794
SCANA Corp.		3,569		215,496
Sempra Energy		1,805		212,864
WEC Energy Group Inc.		3,294		214,835

				2,352,826
MULTILINE RETAIL — 0.93%
Dollar General Corp.		2,761		200,338
Dollar Tree Inc.^a		2,673		212,878
Kohl’s Corp.		5,494		218,551
Macy’s Inc.		10,158		210,982
Nordstrom Inc.		4,739		211,454
Target Corp.		3,898		212,558

				1,266,761
OIL, GAS & CONSUMABLE FUELS — 5.42%
Anadarko Petroleum Corp.		5,062		207,188
Andeavor		2,246		224,937
Antero Resources Corp.^a,b		10,896		214,542
Apache Corp.		5,353		207,910
Cabot Oil & Gas Corp.		8,629		220,471
Cheniere Energy Inc.^a		5,209		222,893
Chevron Corp.		1,985		213,626
Cimarex Energy Co.		2,154		214,732
Concho Resources Inc.^a		1,963		217,834
ConocoPhillips		4,930		215,244
Continental Resources Inc./OK^a		6,376		216,274
Devon Energy Corp.		6,895		216,503
Diamondback Energy Inc.^a		2,421		219,803
EOG Resources Inc.		2,542		216,044
EQT Corp.^b		3,512		218,938


SCHEDULES OF INVESTMENTS			47

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
Exxon Mobil Corp.		2,795	$	213,342
Hess Corp.		5,581		217,101
HollyFrontier Corp.		7,254		227,123
Kinder Morgan Inc./DE		11,209		216,670
Marathon Oil Corp.		19,405		215,784
Marathon Petroleum Corp.		4,146		217,458
Murphy Oil Corp.		9,282		210,330
Newfield Exploration Co.^a,b		8,472		221,373
Noble Energy Inc.		9,067		215,523
Occidental Petroleum Corp.		3,621		216,174
ONEOK Inc.		3,996		216,423
Parsley Energy Inc. Class A^a		8,550		214,177
Phillips 66		2,575		215,811
Pioneer Natural Resources Co.		1,660		215,219
Plains GP Holdings LP Class A		10,211		229,543
Range Resources Corp.		11,801		204,865
Targa Resources Corp.		4,873		217,190
Valero Energy Corp.		3,169		215,809
Williams Companies Inc. (The)		7,296		216,910

				7,363,764
PERSONAL PRODUCTS — 0.32%
Coty Inc. Class A		13,075		216,783
Estee Lauder Companies Inc. (The) Class A		2,017		215,799

				432,582
PHARMACEUTICALS — 1.78%
Allergan PLC		967		221,907
Bristol-Myers Squibb Co.		3,674		222,204
Eli Lilly & Co.		2,726		221,597
Jazz Pharmaceuticals PLC^a,b		1,469		219,410
Johnson & Johnson		1,631		215,895
Mallinckrodt PLC^a		5,497		225,817
Merck & Co. Inc.		3,407		217,571
Mylan NV^a,b		7,038		221,556
Perrigo Co. PLC		2,770		218,719
Pfizer Inc.		6,422		217,834
Zoetis Inc.		3,503		219,638

				2,422,148
PROFESSIONAL SERVICES — 0.96%
Equifax Inc.		1,524		217,124
IHS Markit Ltd.^a		4,619		216,354
ManpowerGroup Inc.		1,966		219,229
Nielsen Holdings PLC		5,430		210,955
Robert Half International Inc.		4,869		220,566
Verisk Analytics Inc. Class A^a		2,697		218,592

				1,302,820


Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.32%
CBRE Group Inc. Class A^a		6,077	$	219,258
Jones Lang LaSalle Inc.		1,796		218,951

				438,209
ROAD & RAIL — 0.96%
AMERCO		603		225,046
CSX Corp.		4,398		220,780
JB Hunt Transport Services Inc.		2,196		217,162
Kansas City Southern		2,058		212,859
Norfolk Southern Corp.		1,814		218,623
Union Pacific Corp.		2,041		214,917

				1,309,387
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.78%
Advanced Micro Devices Inc.^a,b		17,251		224,263
Analog Devices Inc.		2,721		227,666
Applied Materials Inc.		4,951		223,389
Broadcom Ltd.		875		220,561
Intel Corp.		6,185		216,908
KLA-Tencor Corp.		2,370		222,045
Lam Research Corp.		1,361		225,899
Marvell Technology Group Ltd.		12,610		225,845
Maxim Integrated Products Inc.		4,761		222,148
Microchip Technology Inc.		2,595		225,246
Micron Technology Inc.^a,b		7,093		226,763
NVIDIA Corp.		1,309		221,797
Qorvo Inc.^a		3,029		221,784
QUALCOMM Inc.		4,130		215,875
Skyworks Solutions Inc.		2,103		221,572
Texas Instruments Inc.		2,661		220,384
Xilinx Inc.		3,312		218,791

				3,780,936
SOFTWARE — 3.90%
Activision Blizzard Inc.		3,433		225,068
Adobe Systems Inc.^a		1,416		219,707
ANSYS Inc.^a		1,682		216,675
Autodesk Inc.^a		1,876		214,727
CA Inc.		6,598		218,922
Cadence Design Systems Inc.^a		5,745		225,721
CDK Global Inc.		3,420		220,590
Citrix Systems Inc.^a		2,845		222,507
Dell Technologies Inc. Class V^a		2,989		223,966
Electronic Arts Inc.^a		1,834		222,831
Fortinet Inc.^a		5,779		220,758
Intuit Inc.		1,564		221,228


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
Microsoft Corp.		2,945	$	220,198
Nuance Communications Inc.^a		13,546		217,684
Oracle Corp.		4,355		219,187
Red Hat Inc.^a		2,036		218,870
salesforce.com Inc.^a		2,279		217,622
ServiceNow Inc.^a		1,939		225,292
Splunk Inc.^a		3,286		220,458
SS&C Technologies Holdings Inc.		5,699		220,608
Symantec Corp.		7,276		218,134
Synopsys Inc.^a		2,732		219,707
VMware Inc. Class A^a,b		2,091		226,037
Workday Inc. Class A^a,b		2,074		227,497

				5,303,994
SPECIALTY RETAIL — 3.16%
Advance Auto Parts Inc.		2,243		219,590
AutoNation Inc.^a,b		5,008		227,213
AutoZone Inc.^a		406		214,547
Bed Bath & Beyond Inc.		7,690		212,167
Best Buy Co. Inc.		3,488		189,259
CarMax Inc.^a,b		3,340		224,281
Dick’s Sporting Goods Inc.		7,976		210,247
Foot Locker Inc.		5,989		210,992
Gap Inc. (The)		9,021		213,076
Home Depot Inc. (The)		1,433		214,764
L Brands Inc.		5,865		212,430
Lowe’s Companies Inc.		2,929		216,424
O’Reilly Automotive Inc.^a		1,062		208,290
Ross Stores Inc.		3,619		211,531
Signet Jewelers Ltd.^b		3,421		215,762
Staples Inc.		20,981		214,321
Tiffany & Co.		2,437		222,742
TJX Companies Inc. (The)		2,992		216,322
Tractor Supply Co.		3,599		214,176
Ulta Salon Cosmetics & Fragrance Inc.^a		1,010		223,220

				4,291,354
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 1.11%
Apple Inc.		1,344		220,416
Hewlett Packard Enterprise Co.		11,946		215,745
HP Inc.		11,127		212,303
NetApp Inc.		5,564		215,104
Seagate Technology PLC		6,862		216,359
Western Digital Corp.		2,376		209,729
Xerox Corp.		6,647		214,499

				1,504,155


Security	Shares		Value
TEXTILES, APPAREL & LUXURY GOODS — 1.40%
Coach Inc.		5,120	$	213,504
Hanesbrands Inc.		8,835		214,337
lululemon athletica Inc.^a,b		3,569		205,396
Michael Kors Holdings Ltd.^a		5,081		214,520
NIKE Inc. Class B		3,986		210,501
PVH Corp.		1,707		214,894
Ralph Lauren Corp.		2,459		216,121
Under Armour Inc. Class A^a,b		6,445		104,087
Under Armour Inc. Class C^a		6,535		98,678
VF Corp.		3,388		213,004

				1,905,042
THRIFTS & MORTGAGE FINANCE — 0.16%
New York Community Bancorp. Inc.		17,692		213,189

				213,189
TOBACCO — 0.32%
Altria Group Inc.		3,353		212,580
Philip Morris International Inc.		1,868		218,425

				431,005
TRADING COMPANIES & DISTRIBUTORS — 0.66%
Fastenal Co.		5,172		220,689
HD Supply Holdings Inc.^a		6,803		226,540
United Rentals Inc.^a		2,003		236,474
WW Grainger Inc.		1,342		218,169

				901,872
TRANSPORTATION INFRASTRUCTURE — 0.16%
Macquarie Infrastructure Corp.		2,942		219,120

				219,120
WATER UTILITIES — 0.16%
American Water Works Co. Inc.		2,621		212,039

				212,039
WIRELESS TELECOMMUNICATION SERVICES — 0.31%
Sprint Corp.^a,b		25,436		209,847
T-Mobile U.S. Inc.^a		3,371		218,137

				427,984

TOTAL COMMON STOCKS
(Cost: $122,705,020)				135,716,927

SHORT-TERM INVESTMENTS — 5.55%

MONEY MARKET FUNDS — 5.55%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		7,464,215		7,466,455


SCHEDULES OF INVESTMENTS			49

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017


Security	Shares		Value
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		69,879	$	69,879

				7,536,334

TOTAL SHORT-TERM INVESTMENTS
(Cost: $7,535,636)				7,536,334

TOTAL INVESTMENTS IN SECURITIES — 105.38%
(Cost: $130,240,656)^f				143,253,261
Other Assets, Less Liabilities — (5.38)%				(7,308,066	)

NET ASSETS — 100.00%			$	135,945,195

NVS — Non-Voting Shares

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $131,476,371. Net unrealized appreciation was $11,776,890, of which $18,351,879 represented gross unrealized appreciation on investments and $6,574,989 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		2,263,088		5,201,127	^b		—			7,464,215	$	7,466,455	$	(369	)	$	698	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		59,159		10,720	^b		—			69,879		69,879		6			—		783
BlackRock Inc.		326		264			(75	)		515		215,790		3,415			20,314		4,749
PNC Financial Services Group Inc. (The)		1,397		1,009			(729	)		1,677		210,313		10,020			43,093		3,773

											$	7,962,437	$	13,072		$	64,105	$	9,305

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI USA EQUAL WEIGHTED ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	135,716,927	$	—	$	—	$	135,716,927
Money market funds		7,536,334		—		—		7,536,334

Total	$	143,253,261	$	—	$	—	$	143,253,261

See notes to financial statements.


SCHEDULES OF INVESTMENTS			51

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Brazil Capped ETF			iShares MSCI Chile Capped ETF			iShares MSCI Colombia Capped ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	4,088,072,792		$	308,673,755		$	19,111,583
Affiliated (Note 2)		16,859			227,709			116,439

Total cost of investments in securities	$	4,088,089,651		$	308,901,464		$	19,228,022

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	6,310,088,385		$	467,218,049		$	22,573,898
Affiliated (Note 2)		16,859			227,709			116,435
Foreign currency, at value^b		21,265,398			1,318			852
Receivables:
Investment securities sold		246,633,831			27,165,810			274,377
Dividends		15,731,446			72,425			4,029

Total Assets		6,593,735,919			494,685,311			22,969,591


LIABILITIES
Payables:
Investment securities purchased		262,656,795			10,028,968			305,675
Collateral for securities on loan (Note 1)		—			—			59,136
Capital shares redeemed		—			16,772,841			—
Investment advisory fees (Note 2)		3,160,088			238,454			10,897

Total Liabilities		265,816,883			27,040,263			375,708


NET ASSETS	$	6,327,919,036		$	467,645,048		$	22,593,883


Net assets consist of:
Paid-in capital	$	6,919,787,415		$	520,916,867		$	31,551,317
Undistributed (distributions in excess of) net investment income		27,321,455			(78,356	)		47,324
Accumulated net realized loss		(2,841,582,148	)		(211,737,942	)		(12,467,111	)
Net unrealized appreciation		2,222,392,314			158,544,479			3,462,353

NET ASSETS	$	6,327,919,036		$	467,645,048		$	22,593,883


Shares outstanding^c		157,950,000			9,750,000			1,550,000


Net asset value per share	$	40.06		$	47.96		$	14.58

^a	Securities on loan with values of $ —, $ — and $56,601, respectively. See Note 1.

^b	Cost of foreign currency: $21,217,521, $1,261 and $792, respectively.

^c	$0.001 par value, number of shares authorized: 500 million, 200 million and 25 million, respectively.

See notes to financial statements.


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Israel Capped ETF			iShares MSCI Russia Capped ETF			iShares MSCI South Africa ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	101,895,252		$	530,998,524		$	478,404,363
Affiliated (Note 2)		15,570,750			1,026,049			225,602

Total cost of investments in securities	$	117,466,002		$	532,024,573		$	478,629,965

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	88,977,377		$	528,300,262		$	418,941,200
Affiliated (Note 2)		15,571,296			1,026,049			225,602
Foreign currency, at value^b		86,556			—			532,321
Cash		—			1,063,604			—
Receivables:
Investment securities sold		1,353,055			10,545,290			14,219,868
Dividends and interest		115,379			18,705			132,446
Tax reclaims		—			—			26,944

Total Assets		106,103,663			540,953,910			434,078,381


LIABILITIES
Payables:
Investment securities purchased		1,339,562			10,625,096			14,277,567
Collateral for securities on loan (Note 1)		15,526,825			—			—
Deferred foreign capital gains taxes (Note 1)		39,524			—			—
Investment advisory fees (Note 2)		45,762			252,365			214,104

Total Liabilities		16,951,673			10,877,461			14,491,671


NET ASSETS	$	89,151,990		$	530,076,449		$	419,586,710


Net assets consist of:
Paid-in capital	$	155,010,821		$	629,077,214		$	581,412,583
Undistributed (distributions in excess of) net investment income		(39,108	)		12,788,323			448,826
Accumulated net realized loss		(52,862,993	)		(109,091,108	)		(102,817,103	)
Net unrealized depreciation		(12,956,730	)		(2,697,980	)		(59,457,596	)

NET ASSETS	$	89,151,990		$	530,076,449		$	419,586,710


Shares outstanding^c		1,850,000			16,500,000	^d		6,700,000


Net asset value per share	$	48.19		$	32.13	^d	$	62.62

^a	Securities on loan with values of $15,449,691, $ — and $ —, respectively. See Note 1.

^b	Cost of foreign currency: $86,589, $ — and $527,558, respectively.

^c	$0.001 par value, number of shares authorized: 500 million, 1 billion and 400 million, respectively.

^d	Shares outstanding and net asset value per share reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


FINANCIAL STATEMENTS			53

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Turkey ETF			iShares MSCI USA Equal Weighted ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	534,548,881		$	122,362,478
Affiliated (Note 2)		16,052,873			7,878,178

Total cost of investments in securities	$	550,601,754		$	130,240,656

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	424,409,789		$	135,290,824
Affiliated (Note 2)		16,056,803			7,962,437
Foreign currency, at value^b		366,692			—
Receivables:
Investment securities sold		2,359,804			5,348,020
Dividends and interest		96,163			233,660

Total Assets		443,289,251			148,834,941


LIABILITIES
Payables:
Investment securities purchased		2,407,856			5,406,426
Collateral for securities on loan (Note 1)		15,944,138			7,466,125
Investment advisory fees (Note 2)		210,674			17,195

Total Liabilities		18,562,668			12,889,746


NET ASSETS	$	424,726,583		$	135,945,195


Net assets consist of:
Paid-in capital	$	625,503,993		$	124,655,818
Undistributed (distributions in excess of) net investment income		(167,293	)		397,508
Accumulated net realized loss		(90,482,074	)		(2,120,736	)
Net unrealized appreciation (depreciation)		(110,128,043	)		13,012,605

NET ASSETS	$	424,726,583		$	135,945,195


Shares outstanding^c		9,200,000			2,650,000


Net asset value per share	$	46.17		$	51.30

^a	Securities on loan with values of $14,900,015 and $7,363,927, respectively. See Note 1.

^b	Cost of foreign currency: $359,598 and $ —, respectively.

^c	$0.001 par value, number of shares authorized: 200 million and 500 million, respectively.

See notes to financial statements.


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Brazil Capped ETF			iShares MSCI Chile Capped ETF			iShares MSCI Colombia Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	135,466,966		$	9,554,292		$	409,818
Dividends — affiliated (Note 2)		12,902			4,952			190
Securities lending income — affiliated — net (Note 2)		—			—			9,028

Total investment income		135,479,868			9,559,244			419,036


EXPENSES
Investment advisory fees (Note 2)		30,600,776			2,558,275			109,356
Proxy fees		121,945			10,731			396
Commitment fees (Note 7)		—			—			84

Total expenses		30,722,721			2,569,006			109,836

Net investment income		104,757,147			6,990,238			309,200


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(59,655,921	)		(1,122,426	)		(130,679	)
Investments — affiliated (Note 2)		—			—			186
Foreign currency transactions		1,698,672			(76,746	)		(21,015	)
Realized gain distributions from affiliated funds		124			61			3

Net realized loss		(57,957,125	)		(1,199,111	)		(151,505	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		984,337,455			110,031,523			1,966,318
Investments — affiliated (Note 2)		—			—			(4	)
Translation of assets and liabilities in foreign currencies		101,252			185			130

Net change in unrealized appreciation/depreciation		984,438,707			110,031,708			1,966,444

Net realized and unrealized gain		926,481,582			108,832,597			1,814,939

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,031,238,729		$	115,822,835		$	2,124,139

^a	Net of foreign withholding tax of $14,682,062, $2,085,538 and $1,848, respectively.

^b	Net of foreign capital gains taxes of $ —, $2,698 and $ —, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			55

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Israel Capped ETF			iShares MSCI Russia Capped ETF			iShares MSCI South Africa ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	1,643,754		$	21,518,784		$	10,352,006
Dividends — affiliated (Note 2)		454			7,954			1,058
Securities lending income — affiliated — net (Note 2)		193,878			—			20,545

Total investment income		1,838,086			21,526,738			10,373,609


EXPENSES
Investment advisory fees (Note 2)		605,776			2,709,785			2,525,075
Proxy fees		2,186			11,187			9,424

Total expenses		607,962			2,720,972			2,534,499

Net investment income		1,230,124			18,805,766			7,839,110


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(968,119	)		(26,476,747	)		(12,801,051	)
Investments — affiliated (Note 2)		2,928			—			932
In-kind redemptions — unaffiliated		2,927,927			4,583,575			15,649,810
Foreign currency transactions		48,241			(185,378	)		(69,566	)
Realized gain distributions from affiliated funds		1			103			14

Net realized gain (loss)		2,010,978			(22,078,447	)		2,780,139

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated^c		(2,511,856	)		66,059,558			67,073,555
Investments — affiliated (Note 2)		546			—			—
Translation of assets and liabilities in foreign currencies		(1,636	)		3,749			38,776

Net change in unrealized appreciation/depreciation		(2,512,946	)		66,063,307			67,112,331

Net realized and unrealized gain (loss)		(501,968	)		43,984,860			69,892,470

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	728,156		$	62,790,626		$	77,731,580

^a	Net of foreign withholding tax of $410,359, $2,668,372 and $1,790,681, respectively.

^b	Net of foreign capital gains taxes of $28,464, $ — and $ —, respectively.

^c	Net of deferred foreign capital gains taxes of $39,524, $ — and $ —, respectively.

See notes to financial statements.


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Turkey ETF			iShares MSCI USA Equal Weighted ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	10,333,393		$	2,046,114
Dividends — affiliated (Note 2)		1,782			9,305
Securities lending income — affiliated — net (Note 2)		1,653,107			26,730

Total investment income		11,988,282			2,082,149


EXPENSES
Investment advisory fees (Note 2)		2,304,918			166,612
Proxy fees		8,737			2,768

Total expenses		2,313,655			169,380

Net investment income		9,674,627			1,912,769


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(18,406,027	)		585,392
Investments — affiliated (Note 2)		7,747			5,007
In-kind redemptions — unaffiliated		18,089,171			2,416,329
In-kind redemptions — affiliated (Note 2)		—			8,059
Foreign currency transactions		(64,036	)		—
Realized gain distributions from affiliated funds		21			6

Net realized gain (loss)		(373,124	)		3,014,793

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		90,138,152			8,613,661
Investments — affiliated (Note 2)		3,930			64,105
Translation of assets and liabilities in foreign currencies		9,207			—

Net change in unrealized appreciation/depreciation		90,151,289			8,677,766

Net realized and unrealized gain		89,778,165			11,692,559

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	99,452,792		$	13,605,328

^a	Net of foreign withholding tax of $1,709,898 and $761, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			57

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Brazil Capped ETF						iShares MSCI Chile Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	104,757,147		$	61,636,375		$	6,990,238		$	6,005,783
Net realized loss		(57,957,125	)		(257,295,439	)		(1,199,111	)		(31,725,027	)
Net change in unrealized appreciation/depreciation		984,438,707			1,230,865,300			110,031,708			42,114,948

Net increase in net assets resulting from operations		1,031,238,729			1,035,206,236			115,822,835			16,395,704


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(93,579,029	)		(44,455,957	)		(6,944,133	)		(6,349,056	)
Return of capital		—			—			(462,190	)		(332,847	)

Total distributions to shareholders		(93,579,029	)		(44,455,957	)		(7,406,323	)		(6,681,903	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,830,568,929			1,270,213,076			222,913,747			244,807,233
Cost of shares redeemed		(339,939,142	)		(350,468,855	)		(190,929,443	)		(161,813,177	)

Net increase in net assets from capital share transactions		1,490,629,787			919,744,221			31,984,304			82,994,056

INCREASE IN NET ASSETS		2,428,289,487			1,910,494,500			140,400,816			92,707,857

NET ASSETS
Beginning of year		3,899,629,549			1,989,135,049			327,244,232			234,536,375

End of year	$	6,327,919,036		$	3,899,629,549		$	467,645,048		$	327,244,232

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	27,321,455		$	13,940,149		$	(78,356	)	$	(45,076	)


SHARES ISSUED AND REDEEMED
Shares sold		50,950,000			50,800,000			5,400,000			7,000,000
Shares redeemed		(9,350,000	)		(14,950,000	)		(4,550,000	)		(4,850,000	)

Net increase in shares outstanding		41,600,000			35,850,000			850,000			2,150,000

See notes to financial statements.


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Colombia Capped ETF						iShares MSCI Israel Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	309,200		$	344,029		$	1,230,124		$	1,606,791
Net realized gain (loss)		(151,505	)		(5,180,842	)		2,010,978			(18,092,057	)
Net change in unrealized appreciation/depreciation		1,966,444			7,790,295			(2,512,946	)		16,513,428

Net increase in net assets resulting from operations		2,124,139			2,953,482			728,156			28,162


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(229,358	)		(224,626	)		(1,597,362	)		(2,029,827	)

Total distributions to shareholders		(229,358	)		(224,626	)		(1,597,362	)		(2,029,827	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,562,888			6,132,574			14,260,227			117,163,288
Cost of shares redeemed		—			(5,975,872	)		(18,031,594	)		(147,653,928	)

Net increase (decrease) in net assets from capital share transactions		3,562,888			156,702			(3,771,367	)		(30,490,640	)

INCREASE (DECREASE) IN NET ASSETS		5,457,669			2,885,558			(4,640,573	)		(32,492,305	)

NET ASSETS
Beginning of year		17,136,214			14,250,656			93,792,563			126,284,868

End of year	$	22,593,883		$	17,136,214		$	89,151,990		$	93,792,563

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	47,324		$	(11,506	)	$	(39,108	)	$	5,368


SHARES ISSUED AND REDEEMED
Shares sold		250,000			550,000			300,000			2,400,000
Shares redeemed		—			(450,000	)		(350,000	)		(3,000,000	)

Net increase (decrease) in shares outstanding		250,000			100,000			(50,000	)		(600,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			59

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Russia Capped ETF						iShares MSCI South Africa ETF
	Year ended August 31, 2017^a			Year ended August 31, 2016^a			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	18,805,766		$	10,560,615		$	7,839,110		$	7,053,263
Net realized gain (loss)		(22,078,447	)		(29,630,473	)		2,780,139			(46,182,845	)
Net change in unrealized appreciation/depreciation		66,063,307			57,964,293			67,112,331			2,637,086

Net increase (decrease) in net assets resulting from operations		62,790,626			38,894,435			77,731,580			(36,492,496	)


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(13,531,335	)		(7,677,207	)		(7,473,325	)		(15,854,819	)

Total distributions to shareholders		(13,531,335	)		(7,677,207	)		(7,473,325	)		(15,854,819	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		189,716,789			139,225,914			87,244,010			340,977,105
Cost of shares redeemed		(28,528,183	)		(61,726,895	)		(144,358,566	)		(255,533,050	)

Net increase (decrease) in net assets from capital share transactions		161,188,606			77,499,019			(57,114,556	)		85,444,055

INCREASE IN NET ASSETS		210,447,897			108,716,247			13,143,699			33,096,740

NET ASSETS
Beginning of year		319,628,552			210,912,305			406,443,011			373,346,271

End of year	$	530,076,449		$	319,628,552		$	419,586,710		$	406,443,011

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	12,788,323		$	7,695,156		$	448,826		$	(6,378,230	)


SHARES ISSUED AND REDEEMED
Shares sold		6,000,000			5,375,000			1,600,000			6,500,000
Shares redeemed		(950,000	)		(2,350,000	)		(2,600,000	)		(5,300,000	)

Net increase (decrease) in shares outstanding		5,050,000			3,025,000			(1,000,000	)		1,200,000

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

See notes to financial statements.


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Turkey ETF						iShares MSCI USA Equal Weighted ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	9,674,627		$	8,419,377		$	1,912,769		$	884,610
Net realized gain (loss)		(373,124	)		(56,753,736	)		3,014,793			101,408
Net change in unrealized appreciation/depreciation		90,151,289			45,103,244			8,677,766			4,112,797

Net increase (decrease) in net assets resulting from operations		99,452,792			(3,231,115	)		13,605,328			5,098,815


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(10,121,626	)		(8,065,957	)		(1,736,320	)		(944,600	)

Total distributions to shareholders		(10,121,626	)		(8,065,957	)		(1,736,320	)		(944,600	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		103,777,923			189,059,577			60,481,105			39,301,537
Cost of shares redeemed		(136,607,007	)		(180,762,552	)		(10,078,303	)		(14,414,232	)

Net increase (decrease) in net assets from capital share transactions		(32,829,084	)		8,297,025			50,402,802			24,887,305

INCREASE (DECREASE) IN NET ASSETS		56,502,082			(3,000,047	)		62,271,810			29,041,520

NET ASSETS
Beginning of year		368,224,501			371,224,548			73,673,385			44,631,865

End of year	$	424,726,583		$	368,224,501		$	135,945,195		$	73,673,385

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(167,293	)	$	173,958		$	397,508		$	163,769


SHARES ISSUED AND REDEEMED
Shares sold		3,150,000			4,600,000			1,250,000			900,000
Shares redeemed		(3,600,000	)		(4,650,000	)		(200,000	)		(350,000	)

Net increase (decrease) in shares outstanding		(450,000	)		(50,000	)		1,050,000			550,000

See notes to financial statements.


FINANCIAL STATEMENTS			61

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Brazil Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	33.52		$	24.71		$	53.61		$	42.52		$	52.61

Income from investment operations:
Net investment income^a		0.76			0.63			1.00			1.56			1.59
Net realized and unrealized gain (loss)^b		6.45			8.62			(28.87	)		11.08			(10.32	)

Total from investment operations		7.21			9.25			(27.87	)		12.64			(8.73	)

Less distributions from:
Net investment income		(0.67	)		(0.44	)		(1.03	)		(1.55	)		(1.36	)

Total distributions		(0.67	)		(0.44	)		(1.03	)		(1.55	)		(1.36	)

Net asset value, end of year	$	40.06		$	33.52		$	24.71		$	53.61		$	42.52


Total return		22.03	%		38.22	%		(52.49	)%		30.33	%		(16.85	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	6,327,919		$	3,899,630		$	1,989,135		$	5,449,685		$	4,983,630
Ratio of expenses to average net assets		0.62	%		0.63	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		2.10	%		2.41	%		2.73	%		3.37	%		3.02	%
Portfolio turnover rate^c		20	%		18	%		63	%		54	%		56	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 13%, 4%, 48%, 11% and 20%, respectively. See Note 4.

See notes to financial statements.


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Chile Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	36.77		$	34.75		$	43.52		$	47.70		$	60.31

Income from investment operations:
Net investment income^a		0.69			0.78			0.66			0.69			0.68
Net realized and unrealized gain (loss)^b		11.21			2.03			(8.81	)		(4.18	)		(12.58	)

Total from investment operations		11.90			2.81			(8.15	)		(3.49	)		(11.90	)

Less distributions from:
Net investment income		(0.67	)		(0.75	)		(0.62	)		(0.69	)		(0.68	)
Return of capital		(0.04	)		(0.04	)		—			—			(0.03	)

Total distributions		(0.71	)		(0.79	)		(0.62	)		(0.69	)		(0.71	)

Net asset value, end of year	$	47.96		$	36.77		$	34.75		$	43.52		$	47.70


Total return		32.65	%		8.17	%		(18.85	)%		(7.40	)%		(19.87	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	467,645		$	327,244		$	234,536		$	352,499		$	364,890
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.68	%		2.20	%		1.64	%		1.49	%		1.12	%
Portfolio turnover rate^c		54	%		73	%		71	%		91	%		34	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 8%, 11%, 10%, 11% and 16% respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			63

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Colombia Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Period from Jun. 18, 2013^a to Aug. 31, 2013
Net asset value, beginning of period	$	13.18		$	11.88		$	28.22		$	25.98		$	25.28

Income from investment operations:
Net investment income^b		0.23			0.25			0.46	^c		0.67			0.03
Net realized and unrealized gain (loss)^d		1.34			1.23			(16.34	)		2.24			0.67

Total from investment operations		1.57			1.48			(15.88	)		2.91			0.70

Less distributions from:
Net investment income		(0.17	)		(0.18	)		(0.45	)		(0.63	)		—
Net realized gain		—			—			—			(0.03	)		—
Return of capital		—			—			(0.01	)		(0.01	)		—

Total distributions		(0.17	)		(0.18	)		(0.46	)		(0.67	)		—

Net asset value, end of period	$	14.58		$	13.18		$	11.88		$	28.22		$	25.98


Total return		12.05	%		12.49	%		(56.73	)%		11.44	%		2.77	%^e


Ratios/Supplemental data:
Net assets, end of period (000s)	$	22,594		$	17,136		$	14,251		$	25,396		$	18,188
Ratio of expenses to average net assets^f		0.61	%		0.61	%		0.61	%		0.61	%		0.61	%
Ratio of net investment income to average net assets^f		1.72	%		2.16	%		2.60	%^c		2.54	%		0.61	%
Portfolio turnover rate^g		14	%		68	%		86	%		34	%		2	%^e

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	Includes a distribution from Ecopetrol SA. Excluding such distribution, the net investment income would have been $0.33 per share and 1.87% of average net assets.

^d	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^e	Not annualized.

^f	Annualized for periods of less than one year.

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and for the period ended August 31, 2013 were 14%, 32%, 49%, 33% and 2%, respectively. See Note 4.

See notes to financial statements.


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Israel Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	49.36		$	50.51		$	50.69		$	42.85		$	37.25

Income from investment operations:
Net investment income^a		0.62			0.71			1.23			0.87			0.95
Net realized and unrealized gain (loss)^b		(0.98	)		(0.87	)		(0.34	)		7.95			5.68

Total from investment operations		(0.36	)		(0.16	)		0.89			8.82			6.63

Less distributions from:
Net investment income		(0.81	)		(0.99	)		(1.07	)		(0.98	)		(1.03	)

Total distributions		(0.81	)		(0.99	)		(1.07	)		(0.98	)		(1.03	)

Net asset value, end of year	$	48.19		$	49.36		$	50.51		$	50.69		$	42.85


Total return		(0.77	)%		(0.23	)%		1.80	%		20.67	%		17.82	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	89,152		$	93,793		$	126,285		$	121,645		$	70,710
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.25	%		1.46	%		2.45	%		1.74	%		2.20	%
Portfolio turnover rate^c		28	%		46	%		14	%		15	%		14	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			65

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Russia Capped ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	27.92		$	25.03		$	36.68		$	39.68		$	42.31

Income from investment operations:
Net investment income^b		1.14			1.06			0.94			1.26			1.24
Net realized and unrealized gain (loss)^c		4.07			2.65			(11.27	)		(4.01	)		(2.71	)

Total from investment operations		5.21			3.71			(10.33	)		(2.75	)		(1.47	)

Less distributions from:
Net investment income		(1.00	)		(0.82	)		(1.32	)		(0.25	)		(1.16	)

Total distributions		(1.00	)		(0.82	)		(1.32	)		(0.25	)		(1.16	)

Net asset value, end of year	$	32.13		$	27.92		$	25.03		$	36.68		$	39.68


Total return		18.73	%		15.62	%		(27.57	)%		(7.00	)%		(3.40	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	530,076		$	319,629		$	210,912		$	289,775		$	310,511
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		4.27	%		4.17	%		3.33	%		3.14	%		2.87	%
Portfolio turnover rate^d		18	%		23	%		19	%		15	%		14	%

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

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI South Africa ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	52.78		$	57.44		$	70.77		$	58.88		$	64.65

Income from investment operations:
Net investment income^a		1.07			1.02			1.28			1.57			1.32
Net realized and unrealized gain (loss)^b		9.79			(3.24	)		(13.24	)		11.86			(5.31	)

Total from investment operations		10.86			(2.22	)		(11.96	)		13.43			(3.99	)

Less distributions from:
Net investment income		(1.02	)		(2.44	)		(1.37	)		(1.54	)		(1.78	)

Total distributions		(1.02	)		(2.44	)		(1.37	)		(1.54	)		(1.78	)

Net asset value, end of year	$	62.62		$	52.78		$	57.44		$	70.77		$	58.88


Total return		20.91	%		(3.64	)%		(17.07	)%		23.13	%		(6.35	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	419,587		$	406,443		$	373,346		$	587,396		$	547,569
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.91	%		1.96	%		1.94	%		2.40	%		2.08	%
Portfolio turnover rate^c		13	%		12	%		9	%		6	%		5	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			67

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Turkey ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	38.16		$	38.27		$	55.72		$	49.00		$	56.13

Income from investment operations:
Net investment income^a		0.97			0.96			1.13	^b		0.85			1.07
Net realized and unrealized gain (loss)^c		8.12			(0.17	)		(17.49	)		6.75			(7.08	)

Total from investment operations		9.09			0.79			(16.36	)		7.60			(6.01	)

Less distributions from:
Net investment income		(1.08	)		(0.90	)		(1.09	)		(0.88	)		(1.12	)

Total distributions		(1.08	)		(0.90	)		(1.09	)		(0.88	)		(1.12	)

Net asset value, end of year	$	46.17		$	38.16		$	38.27		$	55.72		$	49.00


Total return		24.23	%		1.98	%		(29.69	)%		15.52	%		(11.05	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	424,727		$	368,225		$	371,225		$	515,367		$	436,076
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		2.58	%		2.45	%		2.31	%^b		1.64	%		1.67	%
Portfolio turnover rate^d		6	%		6	%		6	%		8	%		9	%

^a	Based on average shares outstanding throughout each period.

^b	Includes a special distribution from Turkcell Iletisim Hizmetleri AS. Excluding such special distribution, the net investment income would have been $0.76 per share and 1.55% of average net assets.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI USA Equal Weighted ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	46.05		$	42.51		$	43.08		$	35.26		$	30.31

Income from investment operations:
Net investment income^a		0.85			0.77			0.80			0.71			0.69
Net realized and unrealized gain (loss)^b		5.18			3.63			(0.57	)		8.01			4.96

Total from investment operations		6.03			4.40			0.23			8.72			5.65

Less distributions from:
Net investment income		(0.78	)		(0.86	)		(0.80	)		(0.90	)		(0.70	)

Total distributions		(0.78	)		(0.86	)		(0.80	)		(0.90	)		(0.70	)

Net asset value, end of year	$	51.30		$	46.05		$	42.51		$	43.08		$	35.26


Total return		13.22	%		10.54	%		0.48	%		24.98	%		18.85	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	135,945		$	73,673		$	44,632		$	47,391		$	179,830
Ratio of expenses to average net assets		0.15	%		0.15	%		0.15	%		0.15	%		0.15	%
Ratio of net investment income to average net assets		1.72	%		1.79	%		1.82	%		1.82	%		2.10	%
Portfolio turnover rate^c		27	%		28	%		39	%		6	%		5	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			69

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF	Diversification Classification
MSCI Brazil Capped		Non-diversified
MSCI Chile Capped		Non-diversified
MSCI Colombia Capped		Non-diversified
MSCI Israel Capped		Non-diversified


iShares ETF	Diversification Classification
MSCI Russia Capped		Non-diversified
MSCI South Africa		Non-diversified
MSCI Turkey		Non-diversified
MSCI USA Equal Weighted		Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•

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


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•


NOTES TO FINANCIAL STATEMENTS			71

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Funds. Any additional required collateral is delivered to the Funds and any excess collateral is returned by the Funds on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Colombia Capped
Citigroup Global Markets Inc.	$	56,601	$	56,601	$	—

MSCI Israel Capped
Barclays Capital Inc.	$	627,711	$	627,711	$	—
Citigroup Global Markets Inc.		12,156,577		12,156,577		—
Deutsche Bank Securities Inc.		1,230,390		1,230,390		—
Goldman Sachs & Co.		12,790		12,740		(50	)
JPMorgan Securities LLC		418,590		418,590		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		1,003,633		1,000,602		(3,031	)

	$	15,449,691	$	15,446,610	$	(3,081	)

MSCI Turkey
Citigroup Global Markets Inc.	$	208,077	$	208,077	$	—
Credit Suisse Securities (USA) LLC		2,232,660		2,232,660		—
Deutsche Bank Securities Inc.		6,025,677		6,025,677		—
JPMorgan Securities LLC		1,748,698		1,748,698		—
Merrill Lynch, Pierce, Fenner & Smith		459,513		459,513		—
Morgan Stanley & Co. LLC		1,681,177		1,681,177		—
UBS AG		993,070		993,070		—
UBS Securities LLC		1,551,143		1,551,143		—

	$	14,900,015	$	14,900,015	$	—

MSCI USA Equal Weighted
Barclays Capital Inc.	$	264,975	$	264,975	$	—
BNP Paribas New York Branch		5,641		5,641		—
BNP Paribas Prime Brokerage International Ltd.		171,871		171,871		—
Citigroup Global Markets Inc.		538,583		538,583		—
Credit Suisse Securities (USA) LLC		229,478		229,478		—
Deutsche Bank Securities Inc.		295,615		295,615		—
Goldman Sachs & Co.		1,322,038		1,322,038		—
HSBC Bank PLC		603,205		603,205		—
Merrill Lynch, Pierce, Fenner & Smith		1,462,691		1,462,691		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		655,812		655,812		—
National Financial Services LLC		370,637		370,637		—
Nomura Securities International Inc.		68,334		68,334		—
State Street Bank & Trust Company		941,690		941,690		—
UBS Securities LLC		433,357		433,357		—

	$	7,363,927	$	7,363,927	$	—


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

For its investment advisory services to each of the iShares MSCI Brazil Capped, iShares MSCI Chile Capped, iShares MSCI Israel Capped, iShares MSCI Russia Capped, iShares MSCI South Africa and iShares MSCI Turkey ETFs, BFA is entitled to an annual investment advisory fee, 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:


Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.74	%	First $2 billion
	0.69		Over $2 billion, up to and including $4 billion
	0.64		Over $4 billion, up to and including $8 billion
	0.57		Over $8 billion, up to and including $16 billion
	0.51		Over $16 billion, up to and including $24 billion
	0.48		Over $24 billion, up to and including $32 billion
	0.45		Over $32 billion

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 Capped		0.61	%
MSCI USA Equal Weighted		0.15

Pursuant to a securities lending agreement, the iShares MSCI USA Equal Weighted ETF (the “Group 1 Fund”), retains 71.5% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees.

Pursuant to a securities lending agreement, the iShares MSCI Brazil Capped, iShares MSCI Chile Capped, iShares MSCI Colombia Capped, iShares MSCI Israel Capped, iShares MSCI Russia Capped, iShares MSCI South Africa and iShares MSCI


NOTES TO FINANCIAL STATEMENTS			75

Notes to Financial Statements (Continued)

iSHARES^®, INC.

Turkey ETFs (the “Group 2 Funds”), retain 80% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income plus the collateral investment fees generated across all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, the Group 1 Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 75% of securities lending income and the amount retained can never be less than 65% of the total of securities lending income plus the collateral investment fees. Each Group 2 Fund will receive for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Colombia Capped	$	2,104
MSCI Israel Capped		47,134
MSCI South Africa		5,542
MSCI Turkey		376,745
MSCI USA Equal Weighted		11,893

For the year ended August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Israel Capped	$	4,680,959	$	1,246,452
MSCI Russia Capped		7,340,128		1,340,006
MSCI USA Equal Weighted		5,482,902		7,618,733

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.


76		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
MSCI Brazil Capped	$	2,473,612,349	$	975,509,050
MSCI Chile Capped		254,796,638		223,332,134
MSCI Colombia Capped		5,939,973		2,438,972
MSCI Israel Capped		27,283,249		27,507,882
MSCI Russia Capped		114,442,853		78,717,786
MSCI South Africa		53,026,719		52,983,356
MSCI Turkey		28,460,743		21,079,454
MSCI USA Equal Weighted		30,642,205		29,467,059

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Colombia Capped	$	108,767	$	—
MSCI Israel Capped		14,218,380		17,991,184
MSCI Russia Capped		154,512,184		24,632,609
MSCI South Africa		86,940,108		143,699,048
MSCI Turkey		95,431,831		136,072,211
MSCI USA Equal Weighted		59,987,720		10,045,281

4.	*CAPITAL SHARE TRANSACTIONS*

The Board authorized a one-for-two reverse stock split for the iShares MSCI Russia Capped ETF, effective after the close of trading on November 4, 2016. The impact of the stock split was to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the reverse stock split.


NOTES TO FINANCIAL STATEMENTS			77

Notes to Financial Statements (Continued)

iSHARES^®, INC.

5.	*PRINCIPAL RISKS*

MARKET RISK

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 consist of asset freezes and sectorial sanctions, 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. 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.


78		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

CREDIT RISK

6.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, the expiration of capital loss carryforwards, distributions paid in excess of taxable income, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Brazil Capped	$	—		$	2,203,188		$	(2,203,188	)
MSCI Chile Capped		(1,886,881	)		(79,385	)		1,966,266
MSCI Colombia Capped		—			(21,012	)		21,012
MSCI Israel Capped		1,311,387			322,762			(1,634,149	)
MSCI Russia Capped		1,916,352			(181,264	)		(1,735,088	)
MSCI South Africa		(14,307,212	)		6,461,271			7,845,941
MSCI Turkey		13,304,350			105,748			(13,410,098	)
MSCI USA Equal Weighted		2,297,194			57,290			(2,354,484	)


NOTES TO FINANCIAL STATEMENTS			79

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
MSCI Brazil Capped
Ordinary income	$	93,579,029	$	44,455,957


MSCI Chile Capped
Ordinary income	$	6,944,133	$	6,349,056
Return of Capital		462,190		332,847

	$	7,406,323	$	6,681,903


MSCI Colombia Capped
Ordinary income	$	229,358	$	224,626


MSCI Israel Capped
Ordinary income	$	1,597,362	$	2,029,827


MSCI Russia Capped
Ordinary income	$	13,531,335	$	7,677,207


MSCI South Africa
Ordinary income	$	7,473,325	$	15,854,819


MSCI Turkey
Ordinary income	$	10,121,626	$	8,065,957


MSCI USA Equal Weighted
Ordinary income	$	1,736,320	$	944,600

As of August 31, 2017, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a			Qualified Late-Year Losses^b			Total
MSCI Brazil Capped	$	30,231,710	$	(2,339,958,739	)	$	1,717,858,650		$	—		$	(591,868,379	)
MSCI Chile Capped		—		(163,089,345	)		109,895,882			(78,356	)		(53,271,819	)
MSCI Colombia Capped		47,324		(8,287,339	)		(717,419	)		—			(8,957,434	)
MSCI Israel Capped		844,692		(51,059,628	)		(15,643,895	)		—			(65,858,831	)
MSCI Russia Capped		12,860,778		(70,987,197	)		(40,874,346	)		—			(99,000,765	)
MSCI South Africa		779,091		(84,982,109	)		(77,622,855	)		—			(161,825,873	)
MSCI Turkey		—		(80,218,673	)		(120,558,737	)		—			(200,777,410	)
MSCI USA Equal Weighted		397,508		(885,021	)		11,776,890			—			11,289,377

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

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


80		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2017, the following Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:


iShares ETF	Non- Expiring^a		Expiring 2018		Expiring 2019		Total
MSCI Brazil Capped	$	2,141,732,429	$	198,226,310	$	—	$	2,339,958,739
MSCI Chile Capped		150,400,264		11,712,090		976,991		163,089,345
MSCI Colombia Capped		8,287,339		—		—		8,287,339
MSCI Israel Capped		33,128,188		10,801,191		7,130,249		51,059,628
MSCI Russia Capped		70,987,197		—		—		70,987,197
MSCI South Africa		63,988,602		14,856,365		6,137,142		84,982,109
MSCI Turkey		70,376,752		5,982,737		3,859,184		80,218,673
MSCI USA Equal Weighted		885,021		—		—		885,021

Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2017, the iShares MSCI USA Equal Weighted ETF utilized $769,402 of its capital loss carryforwards.

7.	*LINE OF CREDIT*

The iShares MSCI Colombia Capped ETF, along with certain other iShares funds, is a party to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

The Fund did not borrow under the credit agreement during the year ended August 31, 2017.

At a meeting held on September 14-15, 2017, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $275 million and (ii) extending the expiration date to October 24, 2018. These changes to the credit agreement are expected to be effective on or around October 25, 2017.

8.	*LEGAL PROCEEDINGS*


NOTES TO FINANCIAL STATEMENTS			81

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 putative 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”). 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 Plaintiffs’ claims with prejudice.

9.	*SUBSEQUENT EVENTS*

Effective September 1, 2017, the iShares MSCI South Africa ETF will track a new underlying index, the MSCI South Africa 25/50 Index, and will cease to track the MSCI South Africa Index. The change to a capped benchmark is being implemented to seek to reduce tracking error and improve the investor experience.


82		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares MSCI Brazil Capped ETF, iShares MSCI Chile Capped ETF,

iShares MSCI Colombia Capped ETF, iShares MSCI Israel Capped ETF,

iShares MSCI Russia Capped ETF, iShares MSCI South Africa ETF, iShares MSCI Turkey ETF and

iShares USA Equal Weighted ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Brazil Capped ETF, iShares MSCI Chile Capped ETF, iShares MSCI Colombia Capped ETF, iShares MSCI Israel Capped ETF, iShares MSCI Russia Capped ETF, iShares MSCI South Africa ETF, iShares MSCI Turkey ETF and iShares USA Equal Weighted ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			83

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
MSCI Israel Capped	$	1,900,955
MSCI Russia Capped		23,760,751
MSCI South Africa		11,654,971
MSCI Turkey		11,851,615
MSCI USA Equal Weighted		1,869,398

For corporate shareholders, the percentage of income dividends paid by the iShares MSCI USA Equal Weighted ETF during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction was 89.10%.

For the fiscal year ended August 31, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Brazil Capped	$	150,149,028	$	14,681,602
MSCI Chile Capped		11,639,830		2,082,885
MSCI Colombia Capped		411,666		1,848
MSCI Israel Capped		2,054,113		378,111
MSCI Russia Capped		24,187,156		2,667,744
MSCI South Africa		12,142,687		1,789,611
MSCI Turkey		12,043,291		1,709,898


84		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares MSCI Brazil Capped ETF, iShares MSCI Chile Capped ETF and iShares MSCI Russia Capped ETF

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. The Board further noted that the Peer Group for each of iShares MSCI Brazil Capped ETF and iShares MSCI Chile Capped ETF contained only four comparison funds identified by Broadridge, excluding iShares funds. In addition, the Board noted that the Peer Group for iShares MSCI Russia Capped ETF contained only three comparison funds identified by Broadridge, excluding iShares funds.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			85

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

the one-, three-, five-, ten-year, and since inception periods, as applicable, and for the quarter ended December 31, 2016, to that of relevant comparison funds for the same periods.


86		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			87

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

or consider the value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Funds. The Board further noted that any portfolio transactions on behalf of the Funds placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Funds’ shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

II. iShares MSCI Colombia Capped ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


88		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

determine the Fund’s Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			89

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

year. The Board reviewed BlackRock’s profitability methodology for the iShares funds, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA 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 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 during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne


90		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Israel Capped ETF, iShares MSCI South Africa ETF and iShares MSCI Turkey ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			91

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


92		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that each Fund had met its investment objective consistently since its respective inception date.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Funds’ assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds already provided for breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			93

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

investment objectives and strategies as the Funds and that track the same index as the Funds. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Funds, including in terms of the different and generally more extensive services provided to the Funds, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Funds, as publicly traded ETFs, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Funds’ advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rates under the Advisory Contract for the Funds were generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

IV. iShares MSCI USA Equal Weighted ETF


94		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			95

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.


96		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			97

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
MSCI Brazil Capped	$	0.672146	$	—	$	—	$	0.672146		100	%		—	%		—	%		100	%
MSCI Colombia Capped		0.172443		—		—		0.172443		100			—			—			100
MSCI Israel Capped		0.796507		—		0.015775		0.812282		98			—			2			100
MSCI Russia Capped		0.998857		—		—		0.998857		100			—			—			100
MSCI South Africa		0.991919		—		0.023139		1.015058		98			—			2			100
MSCI Turkey		1.079239		—		—		1.079239		100			—			—			100
MSCI USA Equal Weighted		0.765491		—		0.018603		0.784094		98			—			2			100

Premium/Discount Information


98		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Brazil Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		1		0.07	%
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		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%		17		1.23
Greater than 1.0% and Less than 1.5%		52		3.76
Greater than 0.5% and Less than 1.0%		154		11.14
Greater than 0.0% and Less than 0.5%		401		28.99
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		475		34.35
Less than –0.5% and Greater than –1.0%		182		13.16
Less than –1.0% and Greater than –1.5%		50		3.62
Less than –1.5% and Greater than –2.0%		11		0.80
Less than –2.0% and Greater than –2.5%		11		0.80
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0% and Greater than –3.5%		1		0.07

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			99

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Chile Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0%		3		0.22	%
Greater than 1.5% and Less than 2.0%		6		0.43
Greater than 1.0% and Less than 1.5%		23		1.66
Greater than 0.5% and Less than 1.0%		127		9.18
Greater than 0.0% and Less than 0.5%		453		32.75
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		507		36.67
Less than –0.5% and Greater than –1.0%		216		15.62
Less than –1.0% and Greater than –1.5%		27		1.95
Less than –1.5% and Greater than –2.0%		11		0.80
Less than –2.0%		1		0.07

		1,383		100.00	%

iShares MSCI Columbia Capped ETF

Period Covered: June 18, 2013 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.5% and Less than 4.0%		1		0.10	%
Greater than 3.0% and Less than 3.5%		1		0.10
Greater than 2.5% and Less than 3.0%		5		0.49
Greater than 2.0% and Less than 2.5%		15		1.47
Greater than 1.5% and Less than 2.0%		36		3.54
Greater than 1.0% and Less than 1.5%		107		10.51
Greater than 0.5% and Less than 1.0%		239		23.48
Greater than 0.0% and Less than 0.5%		311		30.54
At NAV		12		1.18
Less than 0.0% and Greater than –0.5%		198		19.45
Less than –0.5% and Greater than –1.0%		67		6.58
Less than –1.0% and Greater than –1.5%		18		1.77
Less than –1.5% and Greater than –2.0%		6		0.59
Less than –2.0% and Greater than –2.5%		2		0.20

		1,018		100.00	%


100		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Israel Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		2		0.14
Greater than 1.5% and Less than 2.0%		7		0.51
Greater than 1.0% and Less than 1.5%		34		2.46
Greater than 0.5% and Less than 1.0%		136		9.83
Greater than 0.0% and Less than 0.5%		456		32.98
At NAV		8		0.58
Less than 0.0% and Greater than –0.5%		498		36.01
Less than –0.5% and Greater than –1.0%		174		12.58
Less than –1.0% and Greater than –1.5%		44		3.18
Less than –1.5% and Greater than –2.0%		14		1.01
Less than –2.0% and Greater than –2.5%		4		0.29
Less than –2.5% and Greater than –3.0%		4		0.29

		1,383		100.00	%

iShares MSCI Russia Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		2		0.14	%
Greater than 4.5% and Less than 5.0%		2		0.14
Greater than 4.0% and Less than 4.5%		4		0.29
Greater than 3.5% and Less than 4.0%		5		0.36
Greater than 3.0% and Less than 3.5%		4		0.29
Greater than 2.5% and Less than 3.0%		9		0.65
Greater than 2.0% and Less than 2.5%		15		1.08
Greater than 1.5% and Less than 2.0%		41		2.96
Greater than 1.0% and Less than 1.5%		93		6.72
Greater than 0.5% and Less than 1.0%		222		16.06
Greater than 0.0% and Less than 0.5%		389		28.14
At NAV		14		1.01
Less than 0.0% and Greater than –0.5%		288		20.83
Less than –0.5% and Greater than –1.0%		148		10.71
Less than –1.0% and Greater than –1.5%		78		5.64
Less than –1.5% and Greater than –2.0%		36		2.60
Less than –2.0% and Greater than –2.5%		19		1.37
Less than –2.5% and Greater than –3.0%		4		0.29
Less than –3.0% and Greater than –3.5%		6		0.43
Less than –3.5%		4		0.29

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			101

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI South Africa ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.0%		1		0.07	%
Greater than 4.5% and Less than 5.0%		2		0.14
Greater than 4.0% and Less than 4.5%		1		0.07
Greater than 3.5% and Less than 4.0%		2		0.14
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		12		0.87
Greater than 1.5% and Less than 2.0%		30		2.17
Greater than 1.0% and Less than 1.5%		95		6.87
Greater than 0.5% and Less than 1.0%		256		18.52
Greater than 0.0% and Less than 0.5%		377		27.27
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		293		21.20
Less than –0.5% and Greater than –1.0%		179		12.94
Less than –1.0% and Greater than –1.5%		70		5.06
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%		4		0.29
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5% and Greater than –4.0%		2		0.14
Less than –4.0% and Greater than –4.5%		1		0.07
Less than –4.5% and Greater than –5.0%		1		0.07

		1,383		100.00	%


102		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Turkey ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		1		0.07	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		7		0.51
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%		56		4.05
Greater than 0.5% and Less than 1.0%		227		16.41
Greater than 0.0% and Less than 0.5%		446		32.26
At NAV		4		0.29
Less than 0.0% and Greater than –0.5%		337		24.37
Less than –0.5% and Greater than –1.0%		141		10.20
Less than –1.0% and Greater than –1.5%		78		5.64
Less than –1.5% and Greater than –2.0%		26		1.88
Less than –2.0% and Greater than –2.5%		15		1.08
Less than –2.5% and Greater than –3.0%		3		0.22
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

		1,383		100.00	%

iShares MSCI USA Equal Weighted ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.0% and Less than 0.5%		768		55.54	%
At NAV		123		8.89
Less than 0.0% and Greater than –0.5%		492		35.57

		1,383		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Brazil Capped 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.


SUPPLEMENTAL INFORMATION			103

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Report on Remuneration

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 each Fund is included in the aggregate figures disclosed.

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 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 Capped ETF in respect of BFA’s financial year ending December 31, 2016 was USD 450.48 thousand. This figure is comprised of fixed remuneration of USD 177.21 thousand and variable remuneration of USD 273.27 thousand. There were a total of 325 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Brazil Capped ETF in respect of BFA’s financial year ending December 31, 2016, to its senior management was USD 62.30 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 15.01 thousand.


104		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI USA Equal Weighted ETF in respect of BFA’s financial year ending December 31, 2016 was USD 10.11 thousand. This figure is comprised of fixed remuneration of USD 3.98 thousand and variable remuneration of USD 6.13 thousand. There were a total of 325 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 the BFA’s financial year ending December 31, 2016, to its senior management was USD 1.40 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.34 thousand.


SUPPLEMENTAL INFORMATION			105

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. 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.


106		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


DIRECTOR AND OFFICER INFORMATION			107

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


108		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


DIRECTOR AND OFFICER INFORMATION			109

Notes:


110		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-804-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Edge MSCI Min Vol Global ETF | ACWV | BATS

^Ø

iShares MSCI Australia ETF | EWA | NYSE Arca

^Ø

iShares MSCI Canada ETF | EWC | NYSE Arca

^Ø

iShares MSCI Japan ETF | EWJ | NYSE Arca

^Ø

iShares MSCI Mexico Capped ETF | EWW | NYSE Arca

^Ø

iShares MSCI South Korea Capped ETF | EWY | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			18
Shareholder Expenses			18
Schedules of Investments			19
iShares Edge MSCI Min Vol Global ETF			19
iShares MSCI Australia ETF			26
IShares MSCI Canada ETF			29
iShares MSCI Japan ETF			33
iShares MSCI Mexico Capped ETF			40
iShares MSCI South Korea Capped ETF			43
Financial Statements			47
Financial Highlights			54
Notes to Financial Statements			60
Report of Independent Registered Public Accounting Firm			75
Tax Information			76
Board Review and Approval of Investment Advisory Contract			77
Supplemental Information			93
Director and Officer Information			100

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		9.75%		9.60%		9.47%		9.75%		9.60%		9.47%
5 Years		10.48%		10.32%		10.18%		64.58%		63.42%		62.39%
Since Inception		11.04%		11.01%		10.76%		84.99%		84.69%		82.19%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,071.50	$	1.04	$	1,000.00	$	1,024.20	$	1.02		0.20%

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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 9.75%, net of fees, while the total return for the Index was 9.47%.

Low-volatility stocks in the U.S., the largest country weight in the Index during the reporting period, contributed the most to the Index’s return. U.S. stocks rose initially due to optimism about potentially stimulative fiscal policies from the new presidential


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

administration, and they sustained their advance as corporate earnings growth improved, particularly among multinational companies with significant operations outside of the U.S.

Low-volatility stocks in Japan and Taiwan also contributed meaningfully to the Index’s return for the reporting period. A weaker Japanese yen, which bolstered export growth, and increased consumer spending domestically helped Japan’s economy expand throughout the reporting period. Taiwan’s technology-heavy stock market rose to its highest level in 27 years.

Other noteworthy contributors to the Index’s return for the reporting period included Switzerland, Hong Kong, and Denmark. On the downside, low-volatility stocks in the U.K. and Singapore detracted fractionally from the Index’s return.

From a sector perspective, the financials sector contributed the most to the Index’s return for the reporting period, benefiting from improving global economic conditions, the Fed’s interest rate increases, and expectations of less stringent regulatory policies in the U.S. Insurers and banks led the advance in the financials sector.

The information technology sector also contributed meaningfully to the Index’s return for the reporting period, led by software and services companies. Other contributors to the Index’s performance included the healthcare and industrials sectors, while the real estate and consumer staples sectors 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. For the reporting period, the Index trailed the broader market, as represented by the MSCI ACWI Index. As the broader market rose sharply, stocks with relatively low volatility characteristics underperformed.

Relative to the broader market, the Index’s lack of exposure to France detracted from performance as the French equity market generated strong returns for the reporting period. In contrast, an overweight allocation in the Index to Japan benefited relative performance. On a sector basis, overweight allocations in the Index to the telecommunication services and consumer staples sectors weighed on relative performance as these sectors underperformed during the reporting period. On the positive side, an underweight allocation in the Index to the energy sector benefited relative performance.

ALLOCATION BY SECTOR

As of 8/31/17


Sector	Percentage of Total Investments*
Health Care		16.64	%
Financials		13.73
Consumer Staples		13.12
Information Technology		12.46
Industrials		9.79
Consumer Discretionary		9.06
Utilities		8.25
Telecommunication Services		8.24
Real Estate		4.33
Materials		2.75
Energy		1.63

TOTAL		100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country	Percentage of Total Investments*
United States		56.64	%
Japan		12.69
Switzerland		5.06
Taiwan		4.04
Canada		3.61
Hong Kong		3.46
China		3.23
United Kingdom		1.56
Denmark		1.33
Singapore		0.90

TOTAL		92.52	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI AUSTRALIA ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.70%		17.71%		17.08%		16.70%		17.71%		17.08%
5 Years		4.28%		4.27%		4.67%		23.30%		23.24%		25.65%
10 Years		2.95%		2.87%		3.17%		33.71%		32.72%		36.64%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,047.30	$	2.53	$	1,000.00	$	1,022.70	$	2.50		0.49%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI AUSTRALIA ETF

The iShares MSCI Australia ETF (the “Fund”) seeks to track the investment results of an index composed of Australian equities, as represented by the MSCI Australia Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 16.70%, net of fees, while the total return for the Index was 17.08%.

As a resource-rich country, Australia is a key exporter of commodities. During the reporting period, rising commodities prices amid strengthening global demand drove up Australia’s mineral export levels, in turn pushing the country’s trade surplus to a record high. Improving economic growth in China was beneficial, as China takes in approximately 32% of Australia’s exports. Heavy flooding in the wake of Cyclone Debbie, however, temporarily constrained coal production as mines were damaged and roads and ports were closed.

During the reporting period, the largest contributor to the Index’s performance from a sector standpoint was financials. Banks were strong performers despite the dual challenges of margin erosion and increased capital requirements. In the first half of 2017, major banks increased their return on equity and reduced their average cost-to-income ratio, while increased competition and low interest rates modestly decreased margins.

Another key contributor to the Index’s performance was the materials sector. The metals and mining industry led sector gains, reflecting the rebound in global demand amid rising prices. Increasing steel production in China supported demand for metallurgical coal and iron ore, both used in steel production. The consumer staples and healthcare sectors also contributed to the Index’s performance during the reporting period.

On the downside, the telecommunication services sector detracted modestly from the Index’s return for the reporting period. Although rising mobile broadband use offset a decline in revenues, increased usage required additional investment in mobile infrastructure.

The Australian dollar rose about 5% relative to the U.S. dollar during the reporting period, which made Australian investments worth more when translated back into U.S. dollars.

ALLOCATION BY SECTOR As of 8/31/17


Sector	Percentage of Total Investments*
Financials		42.05	%
Materials		17.31
Real Estate		8.43
Consumer Staples		7.72
Health Care		7.05
Industrials		5.59
Energy		4.79
Consumer Discretionary		2.87
Utilities		2.29
Telecommunication Services		1.38
Information Technology		0.52

TOTAL		100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/17


Security	Percentage of Total Investments*
Commonwealth Bank of Australia		10.42	%
Westpac Banking Corp.		8.34
BHP Billiton Ltd.		6.99
Australia & New Zealand Banking Group Ltd.		6.86
National Australia Bank Ltd.		6.42
CSL Ltd.		4.64
Wesfarmers Ltd.		3.83
Woolworths Ltd.		2.67
Rio Tinto Ltd.		2.29
Macquarie Group Ltd.		2.23

TOTAL		54.69	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI CANADA ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.88%		12.08%		12.08%		11.88%		12.08%		12.08%
5 Years		2.39%		2.42%		2.56%		12.51%		12.71%		13.49%
10 Years		1.32%		1.30%		1.52%		14.03%		13.76%		16.32%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,050.90	$	2.53	$	1,000.00	$	1,022.70	$	2.50		0.49%


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI Canada ETF

The iShares MSCI Canada ETF (the “Fund”) seeks to track the investment results of an index composed of Canadian equities, as represented by the MSCI Canada Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 11.88%, net of fees, while the total return for the Index was 12.08%.

Canada’s economy grew steadily during the reporting period, reaching an annualized pace of 4.5% for the second quarter of 2017. Household spending was a key driver of strength, supported by strong wages, low unemployment, and inexpensive credit. Exports also contributed to economic momentum, with energy products experiencing the largest increase. As a sign that the Canadian export market was diversifying, shipments to non-U.S. trade partners grew 15% during the reporting period. Real estate prices continued their multi-year boom, rising throughout the reporting period. Citing strong economic conditions, Canada’s central bank raised its key interest rate in July 2017, from 0.50% to 0.75%.

The financials sector, which represented about 42% of the Index on average during the reporting period, made the largest contribution to the Index’s return. Banks led sector gains, reflecting solid earnings among large banks despite low interest rates. Insurers and diversified financial companies also contributed, benefiting from economic growth and the prospect of rising interest rates.

Another meaningful contributor to the Index’s performance for the reporting period was the industrials sector. The road and rail industry led strength in the sector, partly due to a boost from a government infrastructure plan.

Additionally, the materials and consumer discretionary sectors contributed to the Index’s performance, with the metals and mining industry and strong consumer spending levels, respectively, supporting gains in the sectors. On the downside, the healthcare sector detracted modestly from the Index’s performance during the reporting period.

The Canadian dollar rose about 5% relative to the U.S. dollar during the reporting period, which made Canadian investments worth more when translated back into U.S. dollars.

Special note: Effective September 1, 2017, the Fund will begin to track a new underlying index, the MSCI Canada Custom Capped Index, and will cease to track the Index. The change to a capped benchmark is being implemented to seek to reduce tracking error and improve the investor experience.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	42.30	%
Energy	21.18
Materials	10.86
Industrials	7.67
Consumer Discretionary	5.27
Consumer Staples	4.29
Information Technology	2.74
Telecommunication Services	2.50
Utilities	2.17
Real Estate	0.69
Health Care	0.33

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Royal Bank of Canada	8.17	%
Toronto-Dominion Bank (The)	7.42
Bank of Nova Scotia (The)	5.60
Canadian National Railway Co.	4.63
Enbridge Inc.	4.36
Suncor Energy Inc.	3.89
Bank of Montreal	3.45
TransCanada Corp.	3.27
Manulife Financial Corp.	2.89
Canadian Imperial Bank of Commerce	2.69

TOTAL	46.37	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI JAPAN ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.31%		13.43%		13.69%		13.31%		13.43%		13.69%
5 Years		10.23%		10.17%		10.68%		62.78%		62.27%		66.10%
10 Years		1.25%		1.29%		1.72%		13.26%		13.68%		18.65%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,067.30	$	2.55	$	1,000.00	$	1,022.70	$	2.50		0.49%


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI Japan ETF

The iShares MSCI Japan ETF (the “Fund”) seeks to track the investment results of an index composed of Japanese equities, as represented by the MSCI Japan Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 13.31%, net of fees, while the total return for the Index was 13.69%.

Japan’s economy expanded for the reporting period, reaching its longest period of sustained growth since 2006. Consumer spending and exports were dual drivers of growth. Private consumption, which represented more than half of the country’s gross domestic product, rose as demand for clothing and mobile phones climbed. A weaker Japanese yen and global economic growth supported export demand.

Every sector contributed to the Index’s performance for the reporting period. The information technology sector was the largest sector contributor to the Index’s gain. Companies in the sector generally benefited from rising demand as global economic growth strengthened. Increased shipments included those of flat panels, semiconductor manufacturing equipment, and electronics to Asian neighbors. The technology hardware and equipment industry and the software and services industry were the leading contributors in the sector.

Another significant contributor to the Index’s return for the reporting period was the industrials sector. Accelerating manufacturing activity supported the sector, driven by increased export demand, particularly for cars. Trading companies and distributors led the sector’s gains, followed by machinery companies.

Consumer discretionary stocks also contributed to the Index’s performance. Consumer spending, which has been a soft spot in the Japanese economy for several years, trended upward during the reporting period. The consumer durables industry supported the sector the most. Autos and components companies also contributed to the sector’s return amid strong global car sales.

The Japanese yen declined about 6% relative to the U.S. dollar during the reporting period, which made Japanese investments worth less when translated back into U.S. dollars.

ALLOCATION BY SECTOR As of 8/31/17


Sector		Percentage of Total Investments*


Industrials	20.56	%
Consumer Discretionary	20.07
Information Technology	12.70
Financials	12.30
Consumer Staples	7.85
Health Care	7.29
Materials	6.73
Telecommunication Services	5.55
Real Estate	4.11
Utilities	1.94
Energy	0.90

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/17


Security		Percentage of Total Investments*


Toyota Motor Corp.	4.47	%
Mitsubishi UFJ Financial Group Inc.	2.25
SoftBank Group Corp.	2.04
Sumitomo Mitsui Financial Group Inc.	1.56
Keyence Corp.	1.54
Sony Corp.	1.51
KDDI Corp.	1.49
Honda Motor Co. Ltd.	1.47
Mizuho Financial Group Inc.	1.26
Takeda Pharmaceutical Co. Ltd.	1.22

TOTAL	18.81	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI MEXICO CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		14.03%		13.60%		14.26%		14.03%		13.60%		14.26%
5 Years		0.22%		0.01%		0.29%		1.10%		0.05%		1.46%
10 Years		1.46%		1.44%		1.25%		15.54%		15.33%		13.22%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

Index performance through November 30, 2007 reflects the performance of the MSCI Mexico Index. Index performance beginning on December 1, 2007 through February 11, 2013 reflects the performance of the MSCI Mexico Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Mexico IMI 25/50 Index.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,236.30	$	2.76	$	1,000.00	$	1,022.70	$	2.50		0.49%


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

The iShares MSCI Mexico Capped ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Mexican equities, as represented by the MSCI Mexico 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 14.03%, net of fees, while the total return for the Index was 14.26%.

Mexico is an export-driven economy, with manufactured goods representing 83% of shipments. The Mexican economy expanded during the reporting period, despite higher interest rates, rising inflation, and uncertainty about trade relations with the U.S. The U.S. presidential election temporarily raised the possibility of recession in Mexico amid concerns U.S. President Trump may end NAFTA, impose a 20% tax on Mexican imports, and pursue other policies that would be damaging to Mexican exports. Slow progress on the policies, however, alleviated such concerns. Manufacturing output increased, reflecting a rise in the country’s automobile industry. Declining unemployment and solid remittance inflows helped the Mexican economy to retain its positive momentum.

Within the Index, the telecommunication services sector made the largest contribution to the Index’s return during the reporting period. Due to major reforms implemented in 2014 to improve competition, revenues within the sector grew 10.9% for 2016, exceeding many analysts’ expectations. Within the sector, wireless telecommunication services companies contributed the most to performance.

Another significant contributor to the Index’s performance for the reporting period was the materials sector. Gains in the sector were supported by strength among metals and mining companies and construction materials suppliers.

The financials and consumer staples sectors also contributed significantly to the Index’s performance for the reporting period. Financials companies benefited from improving global economic conditions. From an industry perspective, banks led the financial sector’s advance. Food, beverage, and tobacco companies and food and staples retailers supported performance in the consumer staples sector.

In terms of currency performance, the Mexican peso appreciated against the U.S. dollar by approximately 6% during the reporting period, as the Mexican peso recovered following a steep drop after the U.S. presidential election.

ALLOCATION BY SECTOR As of 8/31/17


Sector		Percentage of Total Investments*


Consumer Staples	26.12	%
Financials	16.02
Telecommunication Services	15.77
Materials	14.97
Industrials	11.41
Consumer Discretionary	7.66
Real Estate	5.93
Utilities	1.47
Health Care	0.65

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS As of 8/31/17


Security		Percentage of Total Investments*


America Movil SAB de CV Series L	14.84	%
Fomento Economico Mexicano SAB de CV	9.08
Grupo Financiero Banorte SAB de CV Series O	7.89
Cemex SAB de CV CPO	6.17
Wal-Mart de Mexico SAB de CV	5.76
Grupo Televisa SAB	4.50
Grupo Mexico SAB de CV Series B	4.46
Fibra Uno Administracion SA de CV	2.46
Grupo Aeroportuario del Sureste SAB de CV Series B	2.28
Alfa SAB de CV	2.14

TOTAL	59.58	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

Management’s Discussion of Fund Performance

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		21.28%		22.88%		21.96%		21.28%		22.88%		21.96%
5 Years		5.45%		5.39%		6.13%		30.38%		30.02%		34.63%
10 Years		1.93%		1.87%		2.46%		21.04%		20.33%		27.51%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO

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


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,153.00	$	3.31	$	1,000.00	$	1,022.10	$	3.11		0.61%


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

The iShares MSCI South Korea Capped ETF (the “Fund”) seeks to track the investment results of an index composed of South Korean equities, as represented by the MSCI Korea 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 21.28%, net of fees, while the total return for the Index was 21.96%.

South Korea’s stock market neared an all-time high during the reporting period, driven up largely by foreign demand for technology stocks. By contrast, the country’s economic growth was tepid. Exports surged, hitting the eighth consecutive month of significant increases in August 2017. However, weak domestic demand limited economic growth and led the South Korean government to initiate a fiscal stimulus package aimed at creating public sector jobs and increasing social welfare subsidies.

The information technology sector was the largest sector at about 36% of the Index on average, and it was also the most significant contributor to the Index’s performance. Information technology stocks generally benefited from growing demand in an improving global economic environment during the reporting period. Within the sector, the technology hardware and equipment industry was the largest contributor to performance. Gains in the semiconductors and semiconductor equipment industry reflected a surge in semiconductor chip exports, up 58% in July 2017 compared with a year earlier.

Another meaningful contributor to the Index’s return for the reporting period was the financials sector. An improvement in global economic conditions, as well as expectations of a more lenient regulatory environment in the U.S., supported strength in the sector. From an industry standpoint, banks led the financial sector’s advance.

The materials and energy sectors were also meaningful contributors to the Index’s performance for the reporting period. Strength within the chemicals and the metals and mining industries supported the materials sector, while the oil, gas, and consumable fuels industry led energy sector gains. On the downside, the consumer staples and utilities sectors detracted modestly from the Index’s return.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	36.79	%
Financials	14.95
Consumer Discretionary	12.34
Industrials	10.47
Materials	9.35
Consumer Staples	7.66
Health Care	3.10
Energy	2.87
Utilities	1.62
Telecommunication Services	0.85

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17


Security		Percentage of Total Investments*


Samsung Electronics Co. Ltd.	22.26	%
SK Hynix Inc.	5.00
POSCO	3.20
Shinhan Financial Group Co. Ltd.	2.79
KB Financial Group Inc.	2.77
Hyundai Motor Co.	2.70
NAVER Corp.	2.64
LG Chem Ltd.	2.21
Hyundai Mobis Co. Ltd.	2.02
Hana Financial Group Inc.	1.86

TOTAL	47.45	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			17

About Fund Performance

Shareholder Expenses

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 Period.”


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.45%

BELGIUM — 0.30%
Colruyt SA		32,616	$	1,809,923
Proximus SADP		153,567		5,406,980
UCB SA		56,172		3,866,060

				11,082,963
CANADA — 3.60%
Agnico Eagle Mines Ltd.		226,047		11,540,792
Barrick Gold Corp.		107,361		1,925,861
BCE Inc.		264,552		12,542,350
Fairfax Financial Holdings Ltd.		13,137		6,801,168
First Capital Realty Inc.		169,422		2,741,832
Franco-Nevada Corp.^a		296,715		24,177,391
Goldcorp Inc.^a		580,746		7,948,635
Intact Financial Corp.		228,312		18,745,713
RioCan REIT		105,549		2,003,642
Rogers Communications Inc. Class B		92,865		4,828,610
Shaw Communications Inc. Class B		680,859		15,129,597
TELUS Corp.		309,842		11,172,847
Thomson Reuters Corp.		227,406		10,356,836
Wheaton Precious Metals Corp.		112,797		2,333,762

				132,249,036
CHILE — 0.50%
Banco de Chile		51,040,232		7,434,636
SACI Falabella		1,075,422		10,812,232

				18,246,868
CHINA — 3.21%
Agricultural Bank of China Ltd. Class H		7,701,000		3,621,013
ANTA Sports Products Ltd.^a		906,000		3,565,448
China Construction Bank Corp. Class H		8,607,000		7,544,164
China Huishan Dairy Holdings Co. Ltd.^a,b		5,760,000		7
China Mobile Ltd.		2,355,000		24,974,925
China Telecom Corp. Ltd. Class H		9,060,000		4,653,604
China Unicom Hong Kong Ltd.^c		2,718,000		3,959,036
COSCO SHIPPING Ports Ltd.^a		1,812,000		2,141,584
CSPC Pharmaceutical Group Ltd.		7,248,000		11,316,824
Fullshare Holdings Ltd.^a		1,132,500		451,469


Security	Shares		Value
Guangdong Investment Ltd.^a		5,436,000	$	8,029,203
Industrial & Commercial Bank of China Ltd. Class H		2,718,000		2,035,084
Jiangsu Expressway Co. Ltd. Class H		1,884,000		2,888,666
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		3,768,000		3,009,027
Shenzhou International Group Holdings Ltd.^a		942,000		7,546,640
Sihuan Pharmaceutical Holdings Group Ltd.		4,077,000		1,567,987
Tencent Holdings Ltd.		90,600		3,808,547
Yum China Holdings Inc.^c		665,910		23,546,578
Zijin Mining Group Co. Ltd. Class H		9,060,000		3,322,349

				117,982,155
CZECH REPUBLIC — 0.06%
Komercni Banka AS		53,907		2,371,618

				2,371,618
DENMARK — 1.32%
Chr Hansen Holding A/S		47,112		4,047,778
Coloplast A/S Class B		161,721		13,222,659
DONG Energy A/S^d		256,398		13,328,212
H Lundbeck A/S		118,686		7,548,839
ISS A/S		120,498		4,682,433
William Demant Holding A/S^a,c		219,252		5,793,262

				48,623,183
FINLAND — 0.05%
Orion OYJ Class B		40,317		1,906,769

				1,906,769
GERMANY — 0.19%
MAN SE		62,514		7,009,389

				7,009,389
HONG KONG — 3.45%
CK Infrastructure Holdings Ltd.		942,000		8,533,601
CLP Holdings Ltd.		2,491,500		26,311,096
Hang Seng Bank Ltd.		1,313,700		30,213,698
HK Electric Investments & HK Electric Investments Ltd.^a,d		4,983,000		4,571,414
HKT Trust & HKT Ltd.		6,727,000		8,681,164
Hong Kong & China Gas Co. Ltd.^a		4,878,852		9,226,023
Link REIT		1,186,500		9,793,444


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017


Security	Shares		Value
MTR Corp. Ltd.		2,590,500	$	15,142,929
Power Assets Holdings Ltd.^a		942,000		8,304,915
Yue Yuen Industrial Holdings Ltd.		1,359,000		5,886,462

				126,664,746
INDIA — 0.32%
Wipro Ltd. ADR^a		1,962,849		11,659,323

				11,659,323
INDONESIA — 0.85%
Bank Central Asia Tbk PT		9,694,200		13,768,932
Hanjaya Mandala Sampoerna Tbk PT		14,450,700		3,942,478
Kalbe Farma Tbk PT		16,625,100		2,130,784
Telekomunikasi Indonesia Persero Tbk PT		22,468,800		7,898,267
Unilever Indonesia Tbk PT		906,000		3,432,641

				31,173,102
IRELAND — 0.47%
Kerry Group PLC Class A		101,925		9,479,800
Paddy Power Betfair PLC		22,197		1,947,318
Ryanair Holdings PLC ADR^c		51,642		5,871,696

				17,298,814
ISRAEL — 0.69%
Azrieli Group Ltd.		73,839		4,255,370
Bank Hapoalim BM		647,337		4,355,106
Bank Leumi Le-Israel BM		770,553		4,034,680
Check Point Software Technologies Ltd.^a,c		33,522		3,750,106
Mizrahi Tefahot Bank Ltd.^a		253,227		4,510,097
Nice Ltd.		60,249		4,663,160

				25,568,519
ITALY — 0.63%
Luxottica Group SpA		69,309		3,984,109
Recordati SpA		38,052		1,627,735
Snam SpA		3,590,025		17,456,852

				23,068,696
JAPAN — 12.63%
ABC-Mart Inc.		47,100		2,417,908
Ajinomoto Co. Inc.		181,200		3,575,103
ANA Holdings Inc.		2,265,000		8,392,395
Astellas Pharma Inc.		860,700		10,819,357
Benesse Holdings Inc.		141,300		5,430,665
Canon Inc.		634,200		22,207,948
Chugai Pharmaceutical Co. Ltd.		94,200		3,825,859


Security	Shares		Value
Daiichi Sankyo Co. Ltd.		271,800	$	6,418,392
Daiwa House REIT Investment Corp.		906		2,212,728
Eisai Co. Ltd.		94,200		4,873,476
FamilyMart UNY Holdings Co. Ltd.		92,400		5,003,671
FUJIFILM Holdings Corp.		94,200		3,699,186
Japan Airlines Co. Ltd.		226,500		7,775,005
Japan Prime Realty Investment Corp.		1,413		5,071,188
Japan Real Estate Investment Corp.		1,413		7,317,918
Japan Retail Fund Investment Corp.		2,718		4,995,924
Kajima Corp.		453,000		4,152,980
KDDI Corp.		45,300		1,221,198
Keikyu Corp.		942,000		9,996,874
Kintetsu Group Holdings Co. Ltd.		471,000		1,775,986
Kirin Holdings Co. Ltd.		181,200		4,110,174
Konami Holdings Corp.		135,900		7,075,295
Kyowa Hakko Kirin Co. Ltd.		90,600		1,589,575
Kyushu Railway Co.		218,500		6,829,366
Lawson Inc.		90,600		6,083,355
McDonald’s Holdings Co. Japan Ltd.^a		141,300		6,271,584
MEIJI Holdings Co. Ltd.		90,600		7,211,121
Miraca Holdings Inc.		94,200		4,275,204
Mitsubishi Tanabe Pharma Corp.		407,700		10,001,726
Nagoya Railroad Co. Ltd.		1,359,000		6,075,123
NH Foods Ltd.		150,000		4,402,144
Nippon Building Fund Inc.		838		4,454,207
Nippon Prologis REIT Inc.		2,784		6,040,516
Nippon Telegraph & Telephone Corp.		453,000		22,505,942
Nissin Foods Holdings Co. Ltd.		94,200		5,802,980
Nitori Holdings Co. Ltd.		100,300		15,474,232
Nomura Real Estate Master Fund Inc.		4,983		6,578,502
Nomura Research Institute Ltd.		227,030		8,828,715
NTT Data Corp.		1,180,500		12,742,450
NTT DOCOMO Inc.		815,400		18,918,080
Obayashi Corp.		226,500		2,669,185
Oracle Corp. Japan		47,100		3,479,220
Oriental Land Co. Ltd./Japan		141,300		10,603,277
Otsuka Corp.		94,200		6,230,929


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017


Security	Shares		Value
Otsuka Holdings Co. Ltd.		518,100	$	20,849,218
Park24 Co. Ltd.		186,600		4,481,045
Recruit Holdings Co. Ltd.		1,766,700		35,170,268
Sankyo Co. Ltd.		94,200		3,072,669
Santen Pharmaceutical Co. Ltd.		226,500		3,510,894
Secom Co. Ltd.		235,500		17,464,574
Shimadzu Corp.		135,900		2,495,493
Shionogi & Co. Ltd.		47,100		2,479,961
Suntory Beverage & Food Ltd.		235,500		10,869,889
Taisho Pharmaceutical Holdings Co. Ltd.		47,100		3,671,797
Takeda Pharmaceutical Co. Ltd.		271,800		15,007,529
Terumo Corp.		181,200		6,997,093
Tobu Railway Co. Ltd.		1,413,000		7,805,779
Toho Co. Ltd./Tokyo		90,600		3,362,720
Toyo Suisan Kaisha Ltd.		141,300		5,218,831
United Urban Investment Corp.		4,983		7,511,173
USS Co. Ltd.		141,300		2,774,389
Yamada Denki Co. Ltd.		362,400		1,959,186

				464,139,171
MALAYSIA — 0.80%
Hong Leong Bank Bhd^a		1,177,800		4,258,338
IHH Healthcare Bhd^a		2,536,800		3,558,233
Malayan Banking Bhd		2,536,800		5,619,512
Maxis Bhd^a		3,005,300		4,067,588
Petronas Dagangan Bhd		317,100		1,811,788
Public Bank Bhd		1,498,060		7,226,328
Telekom Malaysia Bhd^a		1,857,300		2,796,497

				29,338,284
PHILIPPINES — 0.39%
Aboitiz Equity Ventures Inc.		2,228,760		3,242,744
Bank of the Philippine Islands		1,363,539		2,821,942
BDO Unibank Inc.		3,415,629		8,484,003

				14,548,689
QATAR — 0.22%
Qatar National Bank QPSC		227,188		8,148,508

				8,148,508
SINGAPORE — 0.90%
SATS Ltd.		1,268,400		4,511,320
Singapore Airlines Ltd.^a		996,600		7,566,234
Singapore Press Holdings Ltd.^a		1,439,500		2,925,641
Singapore Telecommunications Ltd.^a		6,613,800		18,019,926

				33,023,121


Security	Shares		Value
SOUTH KOREA — 0.76%
Dongbu Insurance Co. Ltd.		29,445	$	1,963,696
Kangwon Land Inc.		110,079		3,367,972
KT&G Corp.		19,479		1,977,958
NAVER Corp.		2,718		1,819,874
S-1 Corp.		28,992		2,306,299
Samsung Biologics Co. Ltd.^a,c,d		28,888		7,250,181
Samsung Fire & Marine Insurance Co. Ltd.		15,855		3,887,822
SK Telecom Co. Ltd.		24,462		5,499,394

				28,073,196
SPAIN — 0.06%
Amadeus IT Group SA		36,693		2,271,517

				2,271,517
SWITZERLAND — 5.04%
Chocoladefabriken Lindt & Spruengli AG Registered		146		10,134,922
EMS-Chemie Holding AG Registered		12,684		8,651,781
Givaudan SA Registered		1,359		2,771,738
Kuehne + Nagel International AG Registered		93,771		16,949,035
Nestle SA Registered		455,265		38,538,822
Novartis AG Registered		229,671		19,334,426
Partners Group Holding AG		14,043		9,089,226
Roche Holding AG		86,070		21,808,579
Schindler Holding AG Registered		35,334		7,408,742
Sika AG Bearer		453		3,205,411
Sonova Holding AG Registered		82,899		13,983,276
Straumann Holding AG Registered		11,778		7,531,302
Swiss Prime Site AG Registered		65,685		5,932,839
Swisscom AG Registered		39,411		19,832,632

				185,172,731
TAIWAN — 4.02%
Asustek Computer Inc.		942,000		7,803,440
Chang Hwa Commercial Bank Ltd.		8,077,361		4,416,199
Chicony Electronics Co. Ltd.		954,956		2,398,544
Chunghwa Telecom Co. Ltd.		6,795,000		23,641,439
E.Sun Financial Holding Co. Ltd.		8,754,557		5,395,631
Far EasTone Telecommunications Co. Ltd.		2,826,000		6,854,541
First Financial Holding Co. Ltd.		15,702,894		10,198,374


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017


Security	Shares		Value
Formosa Petrochemical Corp.		2,265,000	$	7,993,058
Hon Hai Precision Industry Co. Ltd.		3,095,400		12,051,741
Hua Nan Financial Holdings Co. Ltd.		11,891,261		6,639,310
Mega Financial Holding Co. Ltd.		15,402,000		12,376,106
Quanta Computer Inc.		942,000		2,144,385
Siliconware Precision Industries Co. Ltd.		3,624,000		5,739,991
Synnex Technology International Corp.		3,171,250		3,541,242
Taiwan Cooperative Financial Holding Co. Ltd.		13,996,454		7,374,122
Taiwan Mobile Co. Ltd.		2,718,000		9,726,764
Taiwan Semiconductor Manufacturing Co. Ltd.		2,355,000		16,894,447
WPG Holdings Ltd.		1,884,000		2,453,401

				147,642,735
THAILAND — 0.78%
Advanced Info Service PCL NVDR		1,087,600		6,141,394
Bangkok Dusit Medical Services PCL NVDR^a		6,830,800		4,299,465
BTS Group Holdings PCL NVDR		10,604,400		2,762,477
Bumrungrad Hospital PCL NVDR^a		612,600		4,021,888
CP ALL PCL NVDR		1,041,900		1,945,424
Home Product Center PCL NVDR		7,146,800		2,152,327
Krung Thai Bank PCL NVDR		6,071,400		3,419,219
Siam Cement PCL (The) Foreign		271,800		4,092,757

				28,834,951
UNITED ARAB EMIRATES — 0.28%
Emirates Telecommunications Group Co. PJSC		1,580,064		7,743,092
First Abu Dhabi Bank PJSC		849,375		2,404,917

				10,148,009
UNITED KINGDOM — 1.55%
AstraZeneca PLC		25,821		1,510,866
Compass Group PLC		469,972		10,004,223
ConvaTec Group PLC^c,d		2,032,535		7,513,978
GlaxoSmithKline PLC		546,633		10,801,423
Kingfisher PLC		1,419,184		5,465,954
Randgold Resources Ltd.		65,685		6,694,899
Reckitt Benckiser Group PLC		79,728		7,532,422


Security	Shares		Value
TUI AG		443,487	$	7,474,635

				56,998,400
UNITED STATES — 56.38%
3M Co.		26,727		5,460,861
Abbott Laboratories		246,885		12,576,322
Accenture PLC Class A		31,257		4,087,165
Adobe Systems Inc.^c		25,821		4,006,386
Aetna Inc.		76,104		12,001,601
AGNC Investment Corp.		612,909		13,202,060
Alleghany Corp.^c		18,384		10,345,964
Allstate Corp. (The)		187,089		16,931,554
Altria Group Inc.		460,248		29,179,723
American Tower Corp.		22,650		3,353,333
American Water Works Co. Inc.		90,600		7,329,540
Annaly Capital Management Inc.		1,757,640		21,970,500
ANSYS Inc.^c		147,225		18,965,524
Aon PLC		70,668		9,834,159
Aramark		113,250		4,608,143
Arch Capital Group Ltd.^c		225,594		21,959,320
AT&T Inc.		1,005,660		37,672,024
Athene Holding Ltd. Class A^c		187,995		10,059,612
Automatic Data Processing Inc.		401,358		42,732,586
AutoZone Inc.^c		22,650		11,969,166
AvalonBay Communities Inc.		116,874		21,940,756
Axis Capital Holdings Ltd.		156,738		9,441,897
Baxter International Inc.		214,722		13,321,353
Becton Dickinson and Co.		161,721		32,253,636
Berkshire Hathaway Inc. Class B^c		145,413		26,343,019
Boston Scientific Corp.^c		136,353		3,756,525
Broadridge Financial Solutions Inc.		109,173		8,529,686
Campbell Soup Co.		130,464		6,027,437
CH Robinson Worldwide Inc.		155,379		10,974,419
Charter Communications Inc. Class A^c		42,129		16,790,092
Chipotle Mexican Grill Inc.^c		4,077		1,291,227
Chubb Ltd.		127,746		18,065,839
Church & Dwight Co. Inc.		443,940		22,272,470
Cigna Corp.		11,325		2,061,830
Cincinnati Financial Corp.		108,267		8,319,236
Cintas Corp.		115,062		15,534,521
Cisco Systems Inc.		201,585		6,493,053
Clorox Co. (The)		191,619		26,544,980
CMS Energy Corp.		34,881		1,693,124
Coca-Cola Co. (The)		523,215		23,832,443


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017


Security	Shares		Value
Colgate-Palmolive Co.		144,960	$	10,384,934
Comcast Corp. Class A		380,973		15,471,314
Consolidated Edison Inc.		503,283		42,411,658
Constellation Brands Inc. Class A		34,428		6,889,043
Cooper Companies Inc. (The)		9,060		2,272,520
Costco Wholesale Corp.		42,129		6,603,299
Crown Castle International Corp.		119,592		12,968,556
CVS Health Corp.		53,907		4,169,167
Danaher Corp.		72,933		6,084,071
Darden Restaurants Inc.		40,770		3,346,809
Dell Technologies Inc. Class V^c		373,725		28,003,214
Dominion Energy Inc.		279,501		22,016,294
Dr Pepper Snapple Group Inc.		115,968		10,558,886
Duke Energy Corp.		329,784		28,790,143
eBay Inc.^c		101,472		3,666,183
Ecolab Inc.		34,428		4,589,252
Edison International		32,163		2,578,829
Eli Lilly & Co.		290,826		23,641,246
Equity Residential		132,276		8,882,333
Essex Property Trust Inc.		14,043		3,735,017
Everest Re Group Ltd.		71,121		17,956,630
Eversource Energy		77,010		4,851,630
Expeditors International of Washington Inc.		239,184		13,418,222
Exxon Mobil Corp.		348,357		26,590,090
F5 Networks Inc.^c		15,402		1,838,691
Facebook Inc. Class A^c		42,582		7,322,827
Federal Realty Investment Trust		17,667		2,242,472
Fidelity National Information Services Inc.		137,259		12,754,106
Fiserv Inc.^c		105,549		13,057,467
FNF Group		125,934		6,075,056
Gartner Inc.^c		108,267		13,055,918
General Mills Inc.		402,264		21,424,581
Genuine Parts Co.		38,052		3,151,847
Henry Schein Inc.^c		71,121		12,352,295
Hershey Co. (The)		62,967		6,606,498
Home Depot Inc. (The)		53,907		8,079,042
Hormel Foods Corp.		141,336		4,344,669
Humana Inc.		23,103		5,951,795
Intel Corp.		94,224		3,304,436
International Business Machines Corp.		81,993		11,727,459
Intuitive Surgical Inc.^c		33,522		33,678,548
Jack Henry & Associates Inc.		130,464		13,446,924


Security	Shares		Value
JM Smucker Co. (The)		70,668	$	7,403,180
Johnson & Johnson		419,931		55,586,266
Kellogg Co.		356,058		23,307,557
Kimberly-Clark Corp.		107,361		13,236,538
Laboratory Corp. of America Holdings^c		88,335		13,857,111
Liberty Broadband Corp. Class C^c		27,180		2,759,585
Lockheed Martin Corp.		35,787		10,928,992
Lowe’s Companies Inc.		25,821		1,907,914
Markel Corp.^c		24,462		25,733,779
Marsh & McLennan Companies Inc.		305,775		23,874,912
MasterCard Inc. Class A		45,488		6,063,550
McCormick & Co. Inc./MD NVS		194,337		18,487,279
McDonald’s Corp.		298,527		47,755,364
Medtronic PLC		170,328		13,731,843
Merck & Co. Inc.		410,871		26,238,222
Microsoft Corp.		36,693		2,743,536
Monsanto Co.		69,309		8,123,015
Motorola Solutions Inc.		164,439		14,490,365
Newmont Mining Corp.		114,156		4,376,741
NextEra Energy Inc.		37,833		5,694,245
Northrop Grumman Corp.		54,360		14,797,336
O’Reilly Automotive Inc.^c		28,086		5,508,507
Occidental Petroleum Corp.		95,583		5,706,305
Oracle Corp.		66,138		3,328,726
Patterson Companies Inc.		39,411		1,517,324
Paychex Inc.		472,932		26,971,312
PepsiCo Inc.		298,980		34,600,955
Pfizer Inc.		650,508		22,065,231
PG&E Corp.		380,067		26,749,115
Procter & Gamble Co. (The)		469,761		43,344,847
Progressive Corp. (The)		139,524		6,485,076
Public Storage		70,215		14,417,948
Raytheon Co.		71,574		13,027,184
Realty Income Corp.^a		108,720		6,257,923
RenaissanceRe Holdings Ltd.		57,768		8,038,995
Republic Services Inc.		411,324		26,834,778
Rollins Inc.		41,223		1,830,713
Ross Stores Inc.		63,420		3,706,899
SCANA Corp.		40,317		2,434,340
Sherwin-Williams Co. (The)		7,701		2,612,718
Southern Co. (The)		637,824		30,781,386
Starbucks Corp.		209,739		11,506,282


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017


Security	Shares		Value
Stryker Corp.		211,551	$	29,906,965
Synopsys Inc.^c		232,389		18,688,723
Sysco Corp.		137,259		7,229,432
Time Warner Inc.		100,566		10,167,223
TJX Companies Inc. (The)		318,459		23,024,586
Travelers Companies Inc. (The)		116,421		14,107,897
UDR Inc.		274,518		10,656,789
Ulta Salon Cosmetics & Fragrance Inc.^c		5,889		1,301,528
United Parcel Service Inc. Class B		135,900		15,541,524
UnitedHealth Group Inc.		93,771		18,651,052
Vantiv Inc. Class A^c		65,685		4,643,273
Varian Medical Systems Inc.^c		150,849		16,027,706
Verizon Communications Inc.		682,218		32,725,997
Visa Inc. Class A		290,826		30,106,308
VMware Inc. Class A^a,c		73,839		7,981,996
Wal-Mart Stores Inc.		288,108		22,492,592
Walt Disney Co. (The)		40,317		4,080,080
Waste Management Inc.		451,188		34,791,107
Waters Corp.^c		18,120		3,324,658
WEC Energy Group Inc.		340,656		22,217,584
Welltower Inc.		60,702		4,444,600
Westar Energy Inc.		50,283		2,580,021
WR Berkley Corp.		168,063		11,199,718
Xcel Energy Inc.		472,479		23,387,710

				2,072,130,020

TOTAL COMMON STOCKS
(Cost: $3,174,791,046)				3,655,374,513

PREFERRED STOCKS — 0.08%

COLOMBIA — 0.08%
Grupo Aval Acciones y Valores SA, Preference Shares		6,274,956		2,812,740

				2,812,740

TOTAL PREFERRED STOCKS
(Cost: $2,588,844)				2,812,740


Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.62%

MONEY MARKET FUNDS — 1.62%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		56,910,361	$	56,927,434
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		2,465,143		2,465,143

				59,392,577

TOTAL SHORT-TERM INVESTMENTS
(Cost: $59,378,772)				59,392,577

TOTAL INVESTMENTS IN SECURITIES — 101.15%
(Cost: $3,236,758,662)^h				3,717,579,830
Other Assets, Less Liabilities — (1.15)%				(42,205,898	)

NET ASSETS — 100.00%			$	3,675,373,932

ADR — American Depositary Receipts

NVDR — Non-Voting Depositary Receipts

NVS — Non-Voting Shares

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

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

^c	Non-income earning security.

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $3,257,880,160. Net unrealized appreciation was $459,699,670, of which $525,135,558 represented gross unrealized appreciation on investments and $65,435,888 represented gross unrealized depreciation on investments.


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL GLOBAL ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		88,500,685		—			(31,590,324	)^b		56,910,361	$	56,927,434	$	16,088	$	13,805	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		2,334,558		130,585	^b		—			2,465,143		2,465,143		242		—		29,119

											$	59,392,577	$	16,330	$	13,805	$	29,119

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,648,956,114	$	6,418,392	$	7	$	3,655,374,513
Preferred stocks		2,812,740		—		—		2,812,740
Money market funds		59,392,577		—		—		59,392,577

Total	$	3,711,161,431	$	6,418,392	$	7	$	3,717,579,830

See notes to financial statements.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.86%

AIRLINES — 0.20%
Qantas Airways Ltd.		795,638	$	3,609,664

				3,609,664
BANKS — 32.51%
Australia & New Zealand Banking Group Ltd.		5,136,385		119,773,317
Bank of Queensland Ltd.		678,490		6,775,235
Bendigo & Adelaide Bank Ltd.		826,886		7,837,341
Commonwealth Bank of Australia		3,025,804		181,913,603
National Australia Bank Ltd.		4,680,461		112,111,652
Westpac Banking Corp.		5,872,157		145,640,016

				574,051,164
BEVERAGES — 1.20%
Coca-Cola Amatil Ltd.		1,002,107		6,398,308
Treasury Wine Estates Ltd.		1,293,430		14,854,795

				21,253,103
BIOTECHNOLOGY — 4.58%
CSL Ltd.		793,934		80,930,141

				80,930,141
CAPITAL MARKETS — 3.04%
ASX Ltd.		339,114		14,707,180
Macquarie Group Ltd.		565,648		38,942,261

				53,649,441
CHEMICALS — 1.04%
Incitec Pivot Ltd.		2,950,223		7,792,095
Orica Ltd.		656,702		10,589,145

				18,381,240
COMMERCIAL SERVICES & SUPPLIES — 1.16%
Brambles Ltd.		2,779,285		20,522,863

				20,522,863
CONSTRUCTION & ENGINEERING — 0.32%
CIMIC Group Ltd.		170,731		5,694,211

				5,694,211
CONSTRUCTION MATERIALS — 1.22%
Boral Ltd.		2,046,106		10,824,532
James Hardie Industries PLC		769,365		10,794,821

				21,619,353
CONTAINERS & PACKAGING — 1.47%
Amcor Ltd./Australia		2,026,083		25,888,563

				25,888,563


Security	Shares		Value
DIVERSIFIED FINANCIAL SERVICES — 1.74%
AMP Ltd.		5,120,899	$	20,714,362
Challenger Ltd./Australia		998,027		9,926,474

				30,640,836
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.36%
Telstra Corp. Ltd.		7,282,264		21,197,647
TPG Telecom Ltd.		650,270		2,831,531

				24,029,178
ELECTRIC UTILITIES — 0.25%
AusNet Services		3,156,555		4,356,300

				4,356,300
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 7.61%
BGP Holdings PLC^a,b		18,888,372		225
Dexus		1,781,857		13,553,349
Goodman Group		3,130,760		20,585,408
GPT Group (The)		3,142,646		12,462,944
Mirvac Group		6,467,658		11,901,185
Scentre Group		9,314,476		28,516,808
Stockland		4,236,023		14,883,916
Vicinity Centres		5,872,401		12,203,156
Westfield Corp.		3,453,703		20,353,026

				134,460,017
FOOD & STAPLES RETAILING — 6.43%
Wesfarmers Ltd.		1,978,497		66,881,194
Woolworths Ltd.		2,263,486		46,677,366

				113,558,560
GAS UTILITIES — 0.78%
APA Group		1,951,961		13,717,028

				13,717,028
HEALTH CARE EQUIPMENT & SUPPLIES — 0.71%
Cochlear Ltd.		100,652		12,470,573

				12,470,573
HEALTH CARE PROVIDERS & SERVICES — 1.68%
Healthscope Ltd.		3,044,518		4,201,680
Ramsay Health Care Ltd.		247,774		13,424,410
Sonic Healthcare Ltd.		693,089		12,038,941

				29,665,031
HOTELS, RESTAURANTS & LEISURE — 2.39%
Aristocrat Leisure Ltd.		950,225		15,955,209
Crown Resorts Ltd.		701,348		6,452,778
Domino’s Pizza Enterprises Ltd.^c		109,355		3,742,610


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2017


Security	Shares		Value
Flight Centre Travel Group Ltd.^c		96,527	$	3,701,694
Tabcorp Holdings Ltd.		1,466,532		4,780,667
Tatts Group Ltd.		2,312,037		7,536,883

				42,169,841
INSURANCE — 4.29%
Insurance Australia Group Ltd.		4,141,812		21,057,344
Medibank Pvt Ltd.		4,807,338		11,591,334
QBE Insurance Group Ltd.		2,399,497		19,868,994
Suncorp Group Ltd.		2,257,106		23,326,606

				75,844,278
IT SERVICES — 0.51%
Computershare Ltd.		811,281		9,040,716

				9,040,716
MEDIA — 0.28%
REA Group Ltd.		92,560		4,867,344

				4,867,344
METALS & MINING — 13.39%
Alumina Ltd.		4,285,441		7,205,872
BHP Billiton Ltd.		5,618,621		122,016,443
BlueScope Steel Ltd.		999,529		8,617,477
Fortescue Metals Group Ltd.		2,717,191		12,952,387
Newcrest Mining Ltd.		1,341,433		24,311,422
Rio Tinto Ltd.		742,091		39,929,896
South32 Ltd.		9,212,311		21,335,687

				236,369,184
MULTI-UTILITIES — 1.24%
AGL Energy Ltd.		1,151,342		21,907,346

				21,907,346
MULTILINE RETAIL — 0.18%
Harvey Norman Holdings Ltd.		966,353		3,127,168

				3,127,168
OIL, GAS & CONSUMABLE FUELS — 4.73%
Caltex Australia Ltd.		455,174		12,054,496
Oil Search Ltd.		2,401,745		12,782,170
Origin Energy Ltd.^b		3,072,430		18,642,262
Santos Ltd.^b		3,272,268		9,758,698
Woodside Petroleum Ltd.		1,326,416		30,330,500

				83,568,126
PROFESSIONAL SERVICES — 0.43%
Seek Ltd.		577,917		7,677,776

				7,677,776


Security	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.72%
LendLease Group		970,469	$	12,762,077

				12,762,077
ROAD & RAIL — 0.80%
Aurizon Holdings Ltd.		3,592,987		14,134,892

				14,134,892
TRANSPORTATION INFRASTRUCTURE — 2.60%
Sydney Airport		1,924,369		11,294,714
Transurban Group		3,590,318		34,627,543

				45,922,257

TOTAL COMMON STOCKS
(Cost: $1,913,517,259)				1,745,888,271

SHORT-TERM INVESTMENTS — 0.41%

MONEY MARKET FUNDS — 0.41%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		6,985,447		6,987,543
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		183,299		183,299

				7,170,842

TOTAL SHORT-TERM INVESTMENTS
(Cost: $7,170,523)				7,170,842

TOTAL INVESTMENTS IN SECURITIES — 99.27%
(Cost: $1,920,687,782)^g				1,753,059,113
Other Assets, Less Liabilities — 0.73%				12,853,213

NET ASSETS — 100.00%			$	1,765,912,326

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

^b	Non-income earning security.

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,979,016,818. Net unrealized depreciation was $226,038,358, of which $96,246,139 represented gross unrealized appreciation on investments and $322,284,497 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI AUSTRALIA ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		2,407,298		4,578,149	^b		—			6,985,447	$	6,987,543	$	(190	)	$	319	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		532,214		—			(348,915	)^b		183,299		183,299		53			—		7,465

											$	7,170,842	$	(137	)	$	319	$	7,465

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:


Description	Number of contracts		Expiration date		Notional amount (000)		Value/ unrealized appreciation (depreciation)
Long Contracts:
ASX SPI 200 Index		4,450		Sep 2017	$	20,076	$	(80,653	)

Total							$	(80,653	)

Schedule 3 — Fair Value Measurements


	Level 1			Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,745,888,046		$	—	$	225	$	1,745,888,271
Money market funds		7,170,842			—		—		7,170,842

Total	$	1,753,058,888		$	—	$	225	$	1,753,059,113

Derivative financial instruments^a:
Liabilities:
Futures contracts	$	(80,653	)	$	—	$	—	$	(80,653	)

Total	$	(80,653	)	$	—	$	—	$	(80,653	)

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

See notes to financial statements.


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI CANADA ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.51%

AEROSPACE & DEFENSE — 0.63%
Bombardier Inc. Class B^a		4,586,075	$	9,144,716
CAE Inc.		635,487		10,446,570

				19,591,286
AUTO COMPONENTS — 1.58%
Linamar Corp.		116,222		6,454,666
Magna International Inc. Class A		898,493		43,063,166

				49,517,832
BANKS — 28.36%
Bank of Montreal		1,503,829		107,484,041
Bank of Nova Scotia (The)		2,810,128		174,132,677
Canadian Imperial Bank of Commerce		1,001,528		83,804,828
National Bank of Canada		791,798		36,301,136
Royal Bank of Canada		3,441,879		254,431,382
Toronto-Dominion Bank (The)		4,319,918		231,061,776

				887,215,840
CAPITAL MARKETS — 4.35%
Brookfield Asset Management Inc. Class A		2,057,061		81,035,488
CI Financial Corp.		581,160		12,673,112
IGM Financial Inc.		224,733		7,329,477
Thomson Reuters Corp.		772,755		35,193,867

				136,231,944
CHEMICALS — 2.40%
Agrium Inc.		308,443		30,132,083
Methanex Corp.		213,464		10,864,317
Potash Corp. of Saskatchewan Inc.		1,964,196		34,043,453

				75,039,853
CONSTRUCTION & ENGINEERING — 0.49%
SNC-Lavalin Group Inc.		354,824		15,438,205

				15,438,205
CONTAINERS & PACKAGING — 0.49%
CCL Industries Inc. Class B		329,438		15,221,809

				15,221,809
DIVERSIFIED FINANCIAL SERVICES — 0.71%
Element Fleet Management Corp.		917,285		6,848,086
Onex Corp.		194,085		15,457,138

				22,305,224


Security	Shares		Value
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.08%
BCE Inc.		360,275	$	17,080,555
TELUS Corp.		462,189		16,666,452

				33,747,007
ELECTRIC UTILITIES — 1.66%
Emera Inc.		124,065		4,745,888
Fortis Inc./Canada		936,259		34,119,780
Hydro One Ltd.^b		703,400		12,999,225

				51,864,893
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 0.52%
H&R REIT		326,686		5,565,713
RioCan REIT		375,533		7,128,762
Smart REIT		152,955		3,712,400

				16,406,875
FOOD & STAPLES RETAILING — 3.62%
Alimentation Couche-Tard Inc. Class B		981,498		46,681,336
Empire Co. Ltd. Class A		395,550		6,622,209
George Weston Ltd.		121,653		10,530,808
Jean Coutu Group PJC Inc. (The) Class A		191,749		3,405,982
Loblaw Companies Ltd.		520,265		28,105,722
Metro Inc.		547,505		18,000,523

				113,346,580
FOOD PRODUCTS — 0.64%
Saputo Inc.		596,323		20,052,624

				20,052,624
HOTELS, RESTAURANTS & LEISURE — 1.01%
Restaurant Brands International Inc.		521,201		31,689,852

				31,689,852
INSURANCE — 8.66%
Fairfax Financial Holdings Ltd.		65,951		34,143,549
Great-West Lifeco Inc.		695,403		19,185,635
Industrial Alliance Insurance & Financial Services Inc.		246,017		10,515,694
Intact Financial Corp.		307,901		25,280,422
Manulife Financial Corp.		4,596,917		89,940,079
Power Corp. of Canada		874,096		21,278,094
Power Financial Corp.		588,256		15,816,638
Sun Life Financial Inc.		1,430,666		54,716,199

				270,876,310


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2017


Security	Shares		Value
INTERNET SOFTWARE & SERVICES — 0.13%
Shopify Inc. Class A^a,c		35,840	$	3,944,901

				3,944,901
IT SERVICES — 0.83%
CGI Group Inc. Class A^a		510,257		25,855,734

				25,855,734
MEDIA — 0.70%
Shaw Communications Inc. Class B		982,876		21,840,818

				21,840,818
METALS & MINING — 7.66%
Agnico Eagle Mines Ltd.		529,693		27,043,389
Barrick Gold Corp.		2,721,747		48,823,202
First Quantum Minerals Ltd.		1,626,515		19,524,667
Franco-Nevada Corp.		418,216		34,077,724
Goldcorp Inc.		2,024,742		27,712,521
Kinross Gold Corp.^a		2,952,942		13,401,587
Teck Resources Ltd. Class B		1,330,422		32,980,671
Turquoise Hill Resources Ltd.^a,c		2,384,856		8,008,170
Wheaton Precious Metals Corp.		1,037,971		21,475,548
Yamana Gold Inc.		2,247,772		6,615,576

				239,663,055
MULTI-UTILITIES — 0.51%
Atco Ltd./Canada Class I		179,451		6,585,476
Canadian Utilities Ltd. Class A		297,136		9,223,955

				15,809,431
MULTILINE RETAIL — 1.43%
Canadian Tire Corp. Ltd. Class A^c		160,295		18,896,591
Dollarama Inc.		261,904		25,708,894

				44,605,485
OIL, GAS & CONSUMABLE FUELS — 21.08%
AltaGas Ltd.		393,670		8,694,494
ARC Resources Ltd.		831,657		10,878,704
Cameco Corp.		938,503		9,371,930
Canadian Natural Resources Ltd.		2,577,575		79,090,178
Cenovus Energy Inc.		2,391,799		18,638,386
Crescent Point Energy Corp.		1,275,591		8,719,294
Enbridge Inc.		3,410,546		135,796,177
Encana Corp.		2,274,915		21,138,791
Husky Energy Inc.^a,c		832,588		9,702,182
Imperial Oil Ltd.		698,555		20,537,378
Inter Pipeline Ltd.		855,200		15,599,939
Keyera Corp.		437,178		12,636,754
Pembina Pipeline Corp.		927,294		29,769,558
Peyto Exploration & Development Corp.		389,659		6,660,333


Security	Shares		Value
PrairieSky Royalty Ltd.		491,292	$	11,497,115
Seven Generations Energy Ltd. Class A^a		571,223		8,661,176
Suncor Energy Inc.		3,874,849		120,935,467
Tourmaline Oil Corp.^a		509,741		9,904,120
TransCanada Corp.		2,012,336		101,776,451
Veresen Inc.		738,923		10,367,023
Vermilion Energy Inc.		274,534		8,912,091

				659,287,541
PAPER & FOREST PRODUCTS — 0.26%
West Fraser Timber Co. Ltd.		157,217		8,124,498

				8,124,498
PHARMACEUTICALS — 0.33%
Valeant Pharmaceuticals International Inc.^a,c		770,884		10,323,543

				10,323,543
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.16%
First Capital Realty Inc.		317,895		5,144,638

				5,144,638
ROAD & RAIL — 6.22%
Canadian National Railway Co.		1,785,075		144,115,886
Canadian Pacific Railway Ltd.		325,023		50,373,056

				194,488,942
SOFTWARE — 1.43%
Constellation Software Inc./Canada		44,999		24,921,639
Open Text Corp.		614,943		19,707,605

				44,629,244
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.35%
BlackBerry Ltd.^a,c		1,179,708		10,886,717

				10,886,717
TEXTILES, APPAREL & LUXURY GOODS — 0.52%
Gildan Activewear Inc.		524,471		16,360,567

				16,360,567
TRADING COMPANIES & DISTRIBUTORS — 0.29%
Finning International Inc.		399,138		9,095,412

				9,095,412
WIRELESS TELECOMMUNICATION SERVICES — 1.41%
Rogers Communications Inc. Class B		846,793		44,029,859

				44,029,859
TOTAL COMMON STOCKS
(Cost: $3,497,459,111)				3,112,636,519


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2017


Security	Shares		Value
SHORT-TERM INVESTMENTS — 1.42%

MONEY MARKET FUNDS — 1.42%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		43,796,579	$	43,809,718
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		412,255		412,255

				44,221,973

TOTAL SHORT-TERM INVESTMENTS
(Cost: $44,219,286)				44,221,973


	Value
TOTAL INVESTMENTS IN SECURITIES — 100.93%
(Cost: $3,541,678,397)^g	$	3,156,858,492
Other Assets, Less Liabilities — (0.93)%		(28,938,790	)

NET ASSETS — 100.00%	$	3,127,919,702

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $3,616,475,008. Net unrealized depreciation was $459,569,244, of which $243,684,593 represented gross unrealized appreciation on investments and $703,253,837 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		7,205,616		36,590,963	^b		—			43,796,579	$	43,809,718	$	(2,561	)	$	2,687	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,204,076		—			(791,821	)^b		412,255		412,255		288			—		8,519

											$	44,221,973	$	(2,273	)	$	2,687	$	8,519

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:


Description	Number of contracts		Expiration date		Notional amount (000)		Value/ unrealized appreciation (depreciation)
Long Contracts:
S&P/TSX 60 Index		20,400		Sep 2017	$	14,498	$	47,272

Total							$	47,272


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI CANADA ETF

August 31, 2017

Schedule 3 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,112,636,519	$	—	$	—	$	3,112,636,519
Money market funds		44,221,973		—		—		44,221,973

Total	$	3,156,858,492	$	—	$	—	$	3,156,858,492

Derivative financial instruments^a:
Assets:
Futures contracts	$	47,272	$	—	$	—	$	47,272

Total	$	47,272	$	—	$	—	$	47,272

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

See notes to financial statements.


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI JAPAN ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.70%

AIR FREIGHT & LOGISTICS — 0.23%
Yamato Holdings Co. Ltd.		1,761,300	$	37,511,241

				37,511,241
AIRLINES — 0.26%
ANA Holdings Inc.		5,871,000		21,753,532
Japan Airlines Co. Ltd.		587,100		20,153,224

				41,906,756
AUTO COMPONENTS — 3.19%
Aisin Seiki Co. Ltd.		819,100		41,155,942
Bridgestone Corp.		3,131,200		134,255,250
Denso Corp.		2,348,400		113,856,645
Koito Manufacturing Co. Ltd.		587,100		36,540,387
NGK Spark Plug Co. Ltd.		782,800		14,900,654
NOK Corp.		391,400		8,798,143
Stanley Electric Co. Ltd.		782,800		25,960,567
Sumitomo Electric Industries Ltd.		3,718,300		58,176,564
Sumitomo Rubber Industries Ltd.		978,500		16,207,573
Toyoda Gosei Co. Ltd.		391,400		9,114,648
Toyota Industries Corp.		782,800		41,679,157
Yokohama Rubber Co. Ltd. (The)		587,100		10,855,429

				511,500,959
AUTOMOBILES — 8.71%
Honda Motor Co. Ltd.		8,416,500		235,609,999
Isuzu Motors Ltd.		2,740,200		35,802,359
Mazda Motor Corp.		2,739,800		40,302,891
Mitsubishi Motors Corp.		3,326,900		24,545,183
Nissan Motor Co. Ltd.		11,350,600		112,722,204
Subaru Corp.		2,957,600		103,620,803
Suzuki Motor Corp.		1,761,300		88,433,071
Toyota Motor Corp.		12,720,500		714,617,949
Yamaha Motor Co. Ltd.		1,369,900		38,709,695

				1,394,364,154
BANKS — 7.37%
Aozora Bank Ltd.		5,871,000		22,190,950
Bank of Kyoto Ltd. (The)		1,543,000		14,257,959
Chiba Bank Ltd. (The)		3,484,000		23,298,419
Chugoku Bank Ltd. (The)		782,800		10,540,701
Concordia Financial Group Ltd.		5,871,700		28,056,760
Fukuoka Financial Group Inc.		3,914,000		17,176,649
Hachijuni Bank Ltd. (The)		1,957,000		11,913,411


Security	Shares		Value
Hiroshima Bank Ltd. (The)		2,454,000	$	9,855,243
Japan Post Bank Co. Ltd.		1,957,000		24,893,694
Kyushu Financial Group Inc.		1,761,400		10,722,679
Mebuki Financial Group Inc.		4,813,880		17,058,088
Mitsubishi UFJ Financial Group Inc.		58,577,080		358,775,301
Mizuho Financial Group Inc.		117,224,380		201,409,506
Resona Holdings Inc.		10,763,500		53,651,246
Seven Bank Ltd.		2,739,800		10,380,671
Shinsei Bank Ltd.		7,828,000		12,517,972
Shizuoka Bank Ltd. (The)		2,551,000		22,274,314
Sumitomo Mitsui Financial Group Inc.		6,653,800		248,716,457
Sumitomo Mitsui Trust Holdings Inc.		1,589,432		54,964,367
Suruga Bank Ltd.		782,800		16,728,563
Yamaguchi Financial Group Inc.		922,000		10,421,297

				1,179,804,247
BEVERAGES — 1.44%
Asahi Group Holdings Ltd.		1,957,000		85,154,216
Coca-Cola Bottlers Japan Inc.		587,100		20,110,549
Kirin Holdings Co. Ltd.		4,190,300		95,048,918
Suntory Beverage & Food Ltd.		657,600		30,352,608

				230,666,291
BUILDING PRODUCTS — 1.39%
Asahi Glass Co. Ltd.		984,200		38,362,875
Daikin Industries Ltd.		1,185,500		118,431,515
LIXIL Group Corp.		1,369,900		35,896,707
TOTO Ltd.		782,800		29,765,746

				222,456,843
CAPITAL MARKETS — 1.23%
Daiwa Securities Group Inc.		7,828,000		42,802,929
Japan Exchange Group Inc.		2,544,100		43,295,469
Nomura Holdings Inc.		17,613,000		98,018,922
SBI Holdings Inc./Japan		978,510		13,584,983

				197,702,303
CHEMICALS — 4.86%
Air Water Inc.		782,800		14,424,118
Asahi Kasei Corp.		6,007,000		71,880,965
Daicel Corp.		1,369,900		17,438,033
Hitachi Chemical Co. Ltd.		587,100		15,875,065
JSR Corp.		978,500		19,043,676
Kaneka Corp.		1,370,000		10,655,279


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017


Security	Shares		Value
Kansai Paint Co. Ltd.		978,500	$	24,795,898
Kuraray Co. Ltd.		1,761,300		33,414,450
Mitsubishi Chemical Holdings Corp.		7,054,100		65,567,366
Mitsubishi Gas Chemical Co. Inc.		811,300		20,116,643
Mitsui Chemicals Inc.		4,239,000		25,343,104
Nippon Paint Holdings Co. Ltd.		782,800		26,671,815
Nissan Chemical Industries Ltd.		587,100		19,657,128
Nitto Denko Corp.		792,400		69,822,780
Shin-Etsu Chemical Co. Ltd.		1,897,700		167,665,226
Sumitomo Chemical Co. Ltd.		7,828,000		46,871,270
Taiyo Nippon Sanso Corp.		587,100		6,843,988
Teijin Ltd.		978,500		19,843,831
Toray Industries Inc.		7,240,900		68,882,630
Tosoh Corp.		2,797,000		32,783,300

				777,596,565
COMMERCIAL SERVICES & SUPPLIES — 1.00%
Dai Nippon Printing Co. Ltd.		2,545,000		30,014,628
Park24 Co. Ltd.		587,100		14,098,722
Secom Co. Ltd.		986,300		73,143,563
Sohgo Security Services Co. Ltd.		391,400		17,087,743
Toppan Printing Co. Ltd.		2,602,000		26,029,457

				160,374,113
CONSTRUCTION & ENGINEERING — 1.05%
JGC Corp.		978,500		15,709,699
Kajima Corp.		4,220,000		38,687,807
Obayashi Corp.		3,131,200		36,899,568
Shimizu Corp.		2,605,100		26,888,911
Taisei Corp.		4,992,000		50,028,857

				168,214,842
CONSTRUCTION MATERIALS — 0.14%
Taiheiyo Cement Corp.		5,871,000		22,617,699

				22,617,699
CONSUMER FINANCE — 0.22%
Acom Co. Ltd.^a		1,957,000		8,001,544
AEON Financial Service Co. Ltd.		587,170		12,435,883
Credit Saison Co. Ltd.		782,800		14,189,406

				34,626,833


Security	Shares		Value
CONTAINERS & PACKAGING — 0.08%
Toyo Seikan Group Holdings Ltd.		782,800	$	12,894,934

				12,894,934
DIVERSIFIED CONSUMER SERVICES — 0.09%
Benesse Holdings Inc.		391,400		15,042,904

				15,042,904
DIVERSIFIED FINANCIAL SERVICES — 0.71%
Mitsubishi UFJ Lease & Finance Co. Ltd.		2,152,700		10,874,988
ORIX Corp.		6,458,100		103,243,930

				114,118,918
DIVERSIFIED TELECOMMUNICATION SERVICES — 1.05%
Nippon Telegraph & Telephone Corp.		3,381,900		168,019,528

				168,019,528
ELECTRIC UTILITIES — 1.18%
Chubu Electric Power Co. Inc.		3,131,200		40,882,559
Chugoku Electric Power Co. Inc. (The)		1,369,900		15,782,602
Kansai Electric Power Co. Inc. (The)		3,522,600		49,289,515
Kyushu Electric Power Co. Inc.		2,152,700		25,270,656
Tohoku Electric Power Co. Inc.		2,152,700		29,417,234
Tokyo Electric Power Co. Holdings Inc.^a		7,045,200		28,485,499

				189,128,065
ELECTRICAL EQUIPMENT — 1.84%
Fuji Electric Co. Ltd.		2,424,000		13,346,756
Mabuchi Motor Co. Ltd.		218,900		10,322,470
Mitsubishi Electric Corp.		9,393,600		138,864,139
Nidec Corp.		1,174,200		132,932,328

				295,465,693
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 5.72%
Alps Electric Co. Ltd.		979,200		26,868,835
Hamamatsu Photonics KK		782,800		24,218,009
Hirose Electric Co. Ltd.		195,760		27,071,299
Hitachi High-Technologies Corp.		391,400		13,958,250
Hitachi Ltd.		23,484,000		161,524,514
Keyence Corp.		473,152		246,162,852
Kyocera Corp.		1,565,600		93,884,790
Murata Manufacturing Co. Ltd.		928,100		142,006,215


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017


Security	Shares		Value
Nippon Electric Glass Co. Ltd.		391,500	$	14,868,890
Omron Corp.		978,500		49,076,140
Shimadzu Corp.		1,174,900		21,574,350
TDK Corp.		605,900		40,573,169
Yaskawa Electric Corp.		1,174,200		35,526,858
Yokogawa Electric Corp.		1,179,000		18,350,236

				915,664,407
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 1.12%
Daiwa House REIT Investment Corp.		6,265		15,301,036
Japan Prime Realty Investment Corp.		3,914		14,047,156
Japan Real Estate Investment Corp.		5,871		30,405,869
Japan Retail Fund Investment Corp.		12,106		22,251,897
Nippon Building Fund Inc.		6,278		33,369,344
Nippon Prologis REIT Inc.		7,828		16,984,612
Nomura Real Estate Master Fund Inc.		17,613		23,252,489
United Urban Investment Corp.		15,663		23,609,774

				179,222,177
FOOD & STAPLES RETAILING — 1.67%
Aeon Co. Ltd.		2,935,900		43,267,579
FamilyMart UNY Holdings Co. Ltd.		391,400		21,195,203
Lawson Inc.		239,700		16,094,703
Seven & I Holdings Co. Ltd.		3,718,380		147,471,640
Sundrug Co. Ltd.		391,400		16,198,683
Tsuruha Holdings Inc.		195,700		23,275,604

				267,503,412
FOOD PRODUCTS — 1.56%
Ajinomoto Co. Inc.		2,739,800		54,056,657
Calbee Inc.^b		393,200		13,432,964
Kikkoman Corp.		706,900		22,126,753
MEIJI Holdings Co. Ltd.		587,156		46,733,478
NH Foods Ltd.		854,000		25,062,875
Nisshin Seifun Group Inc.		978,575		16,991,249
Nissin Foods Holdings Co. Ltd.		278,000		17,125,568
Toyo Suisan Kaisha Ltd.		391,400		14,456,124
Yakult Honsha Co. Ltd.		412,700		28,573,269
Yamazaki Baking Co. Ltd.		587,100		11,116,813

				249,675,750


Security	Shares		Value
GAS UTILITIES — 0.62%
Osaka Gas Co. Ltd.		8,892,000	$	34,748,766
Toho Gas Co. Ltd.		1,957,000		12,891,378
Tokyo Gas Co. Ltd.		9,785,000		51,850,009

				99,490,153
HEALTH CARE EQUIPMENT & SUPPLIES — 1.71%
CYBERDYNE Inc.^a,b		391,400		5,142,326
Hoya Corp.		1,957,000		111,932,718
Olympus Corp.		1,376,200		47,453,017
Sysmex Corp.		782,800		48,222,642
Terumo Corp.		1,565,600		60,456,115

				273,206,818
HEALTH CARE PROVIDERS & SERVICES — 0.37%
Alfresa Holdings Corp.		978,500		18,394,662
Medipal Holdings Corp.		782,800		13,791,107
Miraca Holdings Inc.		274,300		12,448,923
Suzuken Co. Ltd./Aichi Japan		391,440		14,244,205

				58,878,897
HEALTH CARE TECHNOLOGY — 0.16%
M3 Inc.		978,500		25,400,459

				25,400,459
HOTELS, RESTAURANTS & LEISURE — 0.59%
McDonald’s Holdings Co. Japan Ltd.		391,400		17,372,243
Oriental Land Co. Ltd./Japan		1,026,600		77,036,974

				94,409,217
HOUSEHOLD DURABLES — 3.52%
Casio Computer Co. Ltd.		978,900		13,821,648
Iida Group Holdings Co. Ltd.		782,880		13,294,591
Nikon Corp.		1,565,600		25,789,867
Panasonic Corp.		10,763,515		143,321,200
Rinnai Corp.		195,700		16,981,056
Sekisui Chemical Co. Ltd.		1,964,000		36,581,865
Sekisui House Ltd.		2,935,500		50,783,137
Sharp Corp./Japan^a,b		7,294,000		21,870,071
Sony Corp.		6,115,500		240,986,039

				563,429,474
HOUSEHOLD PRODUCTS — 0.42%
Lion Corp.		1,100,600		21,860,000
Unicharm Corp.		1,957,000		45,999,991

				67,859,991


SCHEDULES OF INVESTMENTS			35

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017


Security	Shares		Value
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS — 0.13%
Electric Power Development Co. Ltd.		782,800	$	21,408,577

				21,408,577
INDUSTRIAL CONGLOMERATES — 0.52%
Keihan Holdings Co. Ltd.		1,957,000		11,788,943
Seibu Holdings Inc.		979,200		16,824,161
Toshiba Corp.^a,b		19,570,000		54,410,503

				83,023,607
INSURANCE — 2.73%
Dai-ichi Life Holdings Inc.		5,285,000		84,994,094
Japan Post Holdings Co. Ltd.		2,152,700		26,718,047
MS&AD Insurance Group Holdings Inc.		2,348,440		77,434,933
Sompo Holdings Inc.		1,761,350		66,174,653
Sony Financial Holdings Inc.		782,800		12,389,947
T&D Holdings Inc.		2,739,800		37,552,138
Tokio Marine Holdings Inc.		3,326,900		132,701,172

				437,964,984
INTERNET & DIRECT MARKETING RETAIL — 0.52%
Rakuten Inc.		4,501,100		53,390,751
Start Today Co. Ltd.		979,200		30,427,621

				83,818,372
INTERNET SOFTWARE & SERVICES — 0.39%
DeNA Co. Ltd.		520,300		11,118,895
Kakaku.com Inc.		696,100		8,658,558
Mixi Inc.		200,800		10,691,332
Yahoo Japan Corp.		6,849,500		31,366,055

				61,834,840
IT SERVICES — 1.04%
Fujitsu Ltd.		9,785,000		72,467,322
Nomura Research Institute Ltd.		620,004		24,110,641
NTT Data Corp.		2,935,500		31,686,116
Obic Co. Ltd.		391,400		24,502,508
Otsuka Corp.		219,700		14,532,219

				167,298,806
LEISURE PRODUCTS — 0.81%
Bandai Namco Holdings Inc.		978,598		32,765,161
Sankyo Co. Ltd.		195,700		6,383,454
Sega Sammy Holdings Inc.		782,800		11,237,725
Shimano Inc.		391,400		52,845,757
Yamaha Corp.		782,800		27,240,814

				130,472,911


Security	Shares		Value
MACHINERY — 5.48%
Amada Holdings Co. Ltd.		1,565,600	$	17,169,537
FANUC Corp.		942,300		182,706,542
Hino Motors Ltd.		1,174,200		13,474,601
Hitachi Construction Machinery Co. Ltd.		587,100		16,563,197
Hoshizaki Corp.		250,200		21,755,533
IHI Corp.^a		7,828,000		25,889,442
JTEKT Corp.		1,174,900		15,703,052
Kawasaki Heavy Industries Ltd.		7,828,000		24,040,196
Komatsu Ltd.		4,501,100		121,667,931
Kubota Corp.		5,088,200		88,024,103
Kurita Water Industries Ltd.		391,400		11,255,506
Makita Corp.		1,174,200		47,102,426
MINEBEA MITSUMI Inc.		1,957,000		32,130,647
Mitsubishi Heavy Industries Ltd.		15,656,000		59,872,891
Nabtesco Corp.		587,100		20,510,626
NGK Insulators Ltd.		1,204,000		22,458,768
NSK Ltd.		1,890,000		22,410,049
SMC Corp./Japan		278,200		95,320,026
Sumitomo Heavy Industries Ltd.		2,637,000		19,646,920
THK Co. Ltd.		587,700		19,597,120

				877,299,113
MARINE — 0.21%
Mitsui OSK Lines Ltd.		5,871,000		18,830,302
Nippon Yusen KK^a		7,828,000		15,505,215

				34,335,517
MEDIA — 0.51%
Dentsu Inc.		1,035,400		43,274,941
Hakuhodo DY Holdings Inc.		1,174,900		15,980,604
Toho Co. Ltd./Tokyo		587,100		21,790,873

				81,046,418
METALS & MINING — 1.50%
Hitachi Metals Ltd.		978,500		13,060,299
JFE Holdings Inc.		2,544,150		50,208,012
Kobe Steel Ltd.^a		1,571,200		18,901,225
Maruichi Steel Tube Ltd.		242,600		7,174,841
Mitsubishi Materials Corp.		587,100		21,044,062
Nippon Steel & Sumitomo Metal Corp.		3,718,770		88,678,102
Sumitomo Metal Mining Co. Ltd.		2,429,000		41,822,233

				240,888,774


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017


Security	Shares		Value
MULTILINE RETAIL — 0.72%
Don Quijote Holdings Co. Ltd.		587,100	$	22,270,966
Isetan Mitsukoshi Holdings Ltd.		1,565,660		16,103,281
J Front Retailing Co. Ltd.		1,174,200		16,376,495
Marui Group Co. Ltd.		978,500		13,682,641
Ryohin Keikaku Co. Ltd.		117,400		32,534,072
Takashimaya Co. Ltd.		1,522,000		13,953,280

				114,920,735
OIL, GAS & CONSUMABLE FUELS — 0.89%
Idemitsu Kosan Co. Ltd.		587,100		14,328,099
INPEX Corp.		4,696,800		44,851,325
JXTG Holdings Inc.		15,124,895		73,164,584
Showa Shell Sekiyu KK		991,900		10,859,890

				143,203,898
PAPER & FOREST PRODUCTS — 0.13%
Oji Holdings Corp.		3,914,000		20,519,517

				20,519,517
PERSONAL PRODUCTS — 1.60%
Kao Corp.		2,388,700		148,930,214
Kose Corp.		145,400		18,231,147
Pola Orbis Holdings Inc.		410,800		13,194,421
Shiseido Co. Ltd.		1,825,900		75,634,001

				255,989,783
PHARMACEUTICALS — 5.04%
Astellas Pharma Inc.		9,980,750		125,462,181
Chugai Pharmaceutical Co. Ltd.		1,174,200		47,689,206
Daiichi Sankyo Co. Ltd.		2,740,269		64,709,787
Eisai Co. Ltd.		1,369,900		70,872,348
Hisamitsu Pharmaceutical Co. Inc.		256,300		12,318,980
Kyowa Hakko Kirin Co. Ltd.		1,174,200		20,601,310
Mitsubishi Tanabe Pharma Corp.		1,174,200		28,805,561
Ono Pharmaceutical Co. Ltd.		1,965,900		40,028,911
Otsuka Holdings Co. Ltd.		1,957,000		78,752,980
Santen Pharmaceutical Co. Ltd.		1,761,300		27,301,270
Shionogi & Co. Ltd.		1,411,700		74,330,379
Sumitomo Dainippon Pharma Co. Ltd.		782,800		10,626,051
Taisho Pharmaceutical Holdings Co. Ltd.		142,700		11,124,532
Takeda Pharmaceutical Co. Ltd.		3,522,600		194,501,546

				807,125,042


Security	Shares		Value
PROFESSIONAL SERVICES — 0.66%
Recruit Holdings Co. Ltd.		5,283,900	$	105,188,305

				105,188,305
REAL ESTATE MANAGEMENT & DEVELOPMENT — 2.98%
Aeon Mall Co. Ltd.		587,100		10,540,701
Daito Trust Construction Co. Ltd.		333,100		58,971,956
Daiwa House Industry Co. Ltd.		2,739,800		95,766,042
Hulic Co. Ltd.		1,369,900		13,554,617
Mitsubishi Estate Co. Ltd.		6,117,300		105,271,363
Mitsui Fudosan Co. Ltd.		4,360,900		94,223,335
Nomura Real Estate Holdings Inc.		587,100		12,114,339
Sumitomo Realty & Development Co. Ltd.		1,957,000		59,158,086
Tokyo Tatemono Co. Ltd.		978,500		12,037,879
Tokyu Fudosan Holdings Corp.		2,553,000		15,216,864

				476,855,182
ROAD & RAIL — 3.90%
Central Japan Railway Co.		702,400		118,896,166
East Japan Railway Co.		1,610,400		147,563,911
Hankyu Hanshin Holdings Inc.		1,174,200		44,701,963
Keikyu Corp.		2,111,000		22,402,762
Keio Corp.		2,788,000		23,178,448
Keisei Electric Railway Co. Ltd.		609,400		16,583,255
Kintetsu Group Holdings Co. Ltd.		8,862,000		33,415,682
Kyushu Railway Co.		782,800		24,466,945
Nagoya Railroad Co. Ltd.		4,514,000		20,178,884
Nippon Express Co. Ltd.		3,914,000		26,991,877
Odakyu Electric Railway Co. Ltd.		1,369,900		26,511,784
Tobu Railway Co. Ltd.		4,665,000		25,770,671
Tokyu Corp.		2,568,900		37,345,448
West Japan Railway Co.		782,800		56,835,860

				624,843,656
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.21%
Disco Corp.		133,300		23,871,915
Renesas Electronics Corp.^a		2,544,100		25,635,171
Rohm Co. Ltd.		437,500		34,026,894
Tokyo Electron Ltd.		782,852		109,966,309

				193,500,289


SCHEDULES OF INVESTMENTS			37

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017


Security	Shares		Value
SOFTWARE — 1.75%
Konami Holdings Corp.		444,300	$	23,131,374
LINE Corp.^a,b		196,600		6,930,838
Nexon Co. Ltd.^a		979,200		24,404,376
Nintendo Co. Ltd.		554,400		184,564,928
Oracle Corp. Japan		195,700		14,456,124
Trend Micro Inc./Japan		587,100		27,151,908

				280,639,548
SPECIALTY RETAIL — 1.28%
ABC-Mart Inc.		195,700		10,046,384
Fast Retailing Co. Ltd.		258,300		73,856,996
Hikari Tsushin Inc.		93,100		11,538,107
Nitori Holdings Co. Ltd.		391,400		60,384,990
Shimamura Co. Ltd.		108,100		13,181,010
USS Co. Ltd.		978,500		19,212,598
Yamada Denki Co. Ltd.		3,131,200		16,927,712

				205,147,797
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 2.56%
Brother Industries Ltd.		1,174,200		27,802,700
Canon Inc.		5,283,950		185,029,469
FUJIFILM Holdings Corp.		1,957,000		76,850,391
Konica Minolta Inc.		2,349,100		18,739,867
NEC Corp.		12,373,000		32,714,365
Ricoh Co. Ltd.		3,326,900		33,281,091
Seiko Epson Corp.		1,369,900		35,112,556

				409,530,439
TEXTILES, APPAREL & LUXURY GOODS — 0.07%
Asics Corp.		782,800		11,785,386

				11,785,386
TOBACCO — 1.14%
Japan Tobacco Inc.		5,341,600		182,680,196

				182,680,196
TRADING COMPANIES & DISTRIBUTORS — 3.83%
ITOCHU Corp.		7,240,900		118,159,698
Marubeni Corp.		8,023,700		52,154,779
MISUMI Group Inc.		1,369,900		35,112,556
Mitsubishi Corp.		7,436,600		171,860,732
Mitsui & Co. Ltd.		8,219,400		122,813,041
Sumitomo Corp.		5,871,000		83,029,361
Toyota Tsusho Corp.		978,500		30,094,698

				613,224,865


Security	Shares		Value
TRANSPORTATION INFRASTRUCTURE — 0.12%
Japan Airport Terminal Co. Ltd.		195,700	$	7,094,703
Kamigumi Co. Ltd.		1,106,000		12,229,711

				19,324,414
WIRELESS TELECOMMUNICATION SERVICES — 4.48%
KDDI Corp.		8,806,500		237,405,829
NTT DOCOMO Inc.		6,653,800		154,374,689
SoftBank Group Corp.		4,022,800		326,107,774

				717,888,292

TOTAL COMMON STOCKS
(Cost: $15,934,505,938)				15,970,512,906

SHORT-TERM INVESTMENTS — 0.29%

MONEY MARKET FUNDS — 0.29%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		40,539,970		40,552,132
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		5,281,032		5,281,032

				45,833,164

TOTAL SHORT-TERM INVESTMENTS
(Cost: $45,826,352)				45,833,164

TOTAL INVESTMENTS IN SECURITIES — 99.99%
(Cost: $15,980,332,290)^f				16,016,346,070
Other Assets, Less Liabilities — 0.01%				1,342,829

NET ASSETS — 100.00%			$	16,017,688,899

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $16,201,644,044. Net unrealized depreciation was $184,655,742, of which $1,514,855,596 represented gross unrealized appreciation on investments and $1,699,511,338 represented gross unrealized depreciation on investments.


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI JAPAN ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		50,929,509		—			(10,389,539	)^b		40,539,970	$	40,552,132	$	1,589	$	6,812	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,192,177		4,088,855	^b		—			5,281,032		5,281,032		122		—		43,064

											$	45,833,164	$	1,711	$	6,812	$	43,064

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:


Description	Number of contracts		Expiration date		Notional amount (000)		Value/ unrealized appreciation (depreciation)
Long Contracts:
TOPIX Index		3,060,000		Sep 2017	$	45,069	$	642,232

Total							$	642,232

Schedule 3 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	15,905,803,119	$	64,709,787	$	—	$	15,970,512,906
Money market funds		45,833,164		—		—		45,833,164

Total	$	15,951,636,283	$	64,709,787	$	—	$	16,016,346,070

Derivative financial instruments^a:
Assets:
Futures contracts	$	642,232	$	—	$	—	$	642,232

Total	$	642,232	$	—	$	—	$	642,232

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			39

Schedule of Investments

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.81%

AIRLINES — 0.85%
Controladora Vuela Cia. de Aviacion SAB de CV Class A^a,b		5,083,700	$	6,414,971
Grupo Aeromexico SAB de CV^a		2,404,043		4,873,438

				11,288,409
AUTO COMPONENTS — 0.24%
Rassini SAB de CV		678,499		3,148,709

				3,148,709
BANKS — 13.33%
Banregio Grupo Financiero SAB de CV		1,813,000		11,732,837
Grupo Financiero Banorte SAB de CV Series O		15,208,478		104,036,562
Grupo Financiero Inbursa SAB de CV Series O^b		16,392,192		27,500,052
Grupo Financiero Interacciones SA de CV Series O		955,800		5,728,016
Grupo Financiero Santander Mexico SAB de CV Series B		13,104,650		27,080,235

				176,077,702
BEVERAGES — 12.25%
Arca Continental SAB de CV		3,079,729		22,601,931
Coca-Cola Femsa SAB de CV Series L		2,373,447		19,513,329
Fomento Economico Mexicano SAB de CV		11,925,510		119,725,155

				161,840,415
BUILDING PRODUCTS — 0.36%
Elementia SAB de CV^a,b,c		3,350,190		4,716,234

				4,716,234
CAPITAL MARKETS — 0.46%
Bolsa Mexicana de Valores SAB de CV		3,481,687		6,038,291

				6,038,291
CHEMICALS — 1.55%
Mexichem SAB de CV		7,664,418		20,478,298

				20,478,298
CONSTRUCTION MATERIALS — 6.16%
Cemex SAB de CV CPO^a		86,737,029		81,321,668

				81,321,668


Security	Shares		Value
CONSUMER FINANCE — 1.59%
Credito Real SAB de CV SOFOM ER^b		2,230,174	$	4,174,362
Gentera SAB de CV		7,532,706		11,593,167
Unifin Financiera SAB de CV SOFOM ENR		1,519,348		5,244,437

				21,011,966
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.93%
Axtel SAB de CV CPO^a,b		11,390,777		2,658,716
Telesites SAB de CV^a,b		12,110,146		9,668,956

				12,327,672
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) — 5.13%
Concentradora Fibra Danhos SA de CV		2,340,790		4,099,034
Concentradora Fibra Hotelera Mexicana SA de CV		5,020,290		4,120,960
Fibra Uno Administracion SA de CV		18,113,700		32,410,593
Macquarie Mexico Real Estate Management SA de CV		6,716,100		9,043,857
PLA Administradora Industrial S. de RL de CV^b		6,621,500		11,294,194
Prologis Property Mexico SA de CV		3,320,800		6,782,181

				67,750,819
FOOD & STAPLES RETAILING — 6.59%
Grupo Comercial Chedraui SA de CV		2,943,000		6,324,327
La Comer SAB de CV^a,b		4,837,855		4,828,965
Wal-Mart de Mexico SAB de CV		31,111,233		75,915,755

				87,069,047
FOOD PRODUCTS — 5.59%
Gruma SAB de CV Series B		1,564,450		23,017,216
Grupo Bimbo SAB de CV Series A		11,579,104		28,157,179
Grupo Herdez SAB de CV		2,207,044		5,421,407
Grupo Lala SAB de CV^b		4,935,800		8,790,018
Industrias Bachoco SAB de CV Series B		1,587,400		8,451,467

				73,837,287
GAS UTILITIES — 1.47%
Infraestructura Energetica Nova SAB de CV		3,549,400		19,347,419

				19,347,419


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2017


Security	Shares		Value
HOTELS, RESTAURANTS & LEISURE — 1.49%
Alsea SAB de CV		4,127,966	$	15,066,372
Hoteles City Express SAB de CV^a,b		3,715,200		4,590,128

				19,656,500
HOUSEHOLD DURABLES — 0.24%
Consorcio ARA SAB de CV		9,121,819		3,116,908

				3,116,908
HOUSEHOLD PRODUCTS — 1.64%
Kimberly-Clark de Mexico SAB de CV Series A		10,987,654		21,639,009

				21,639,009
INDUSTRIAL CONGLOMERATES — 3.20%
Alfa SAB de CV		20,073,651		28,191,131
Grupo Carso SAB de CV Series A1		3,471,833		14,074,143

				42,265,274
INSURANCE — 0.32%
Qualitas Controladora SAB de CV		2,400,000		4,194,639

				4,194,639
MACHINERY — 0.23%
Grupo Rotoplas SAB de CV^b		1,850,600		3,088,011

				3,088,011
MEDIA — 4.72%
Grupo Televisa SAB		11,448,647		59,379,890
TV Azteca SAB de CV CPO^b		15,341,939		2,943,958

				62,323,848
METALS & MINING — 7.23%
Grupo Mexico SAB de CV Series B		17,795,886		58,851,161
Industrias CH SAB de CV Series B^a,b		1,283,783		6,160,775
Industrias Penoles SAB de CV		998,293		26,019,388
Minera Frisco SAB de CV Series A1^a,b		6,437,803		4,453,752

				95,485,076
MORTGAGE REAL ESTATE INVESTMENT — 0.29%
Concentradora Hipotecaria SAPI de CV		3,105,700		3,891,110

				3,891,110
MULTILINE RETAIL — 0.96%
El Puerto de Liverpool SAB de CV Series C1^b		1,417,810		12,742,411

				12,742,411


Security	Shares		Value
PHARMACEUTICALS — 0.65%
Genomma Lab Internacional SAB de CV Series B^a		6,671,193	$	8,575,390

				8,575,390
REAL ESTATE MANAGEMENT & DEVELOPMENT — 0.79%
Corp Inmobiliaria Vesta SAB de CV^b		4,549,149		6,707,811
Grupo GICSA SA de CV^a,b		5,458,566		3,662,984

				10,370,795
TRANSPORTATION INFRASTRUCTURE — 6.74%
Grupo Aeroportuario del Centro Norte SAB de CV		2,015,492		12,229,050
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,541,449		28,121,315
Grupo Aeroportuario del Sureste SAB de CV Series B		1,466,555		30,010,367
Promotora y Operadora de Infraestructura SAB de CV		1,696,025		18,642,929

				89,003,661
WIRELESS TELECOMMUNICATION SERVICES — 14.81%
America Movil SAB de CV Series L		209,703,018		195,551,425

				195,551,425

TOTAL COMMON STOCKS
(Cost: $1,567,368,302)				1,318,157,993

SHORT-TERM INVESTMENTS — 2.13%

MONEY MARKET FUNDS — 2.13%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		27,657,667		27,665,964
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		431,254		431,254

				28,097,218

TOTAL SHORT-TERM INVESTMENTS
(Cost: $28,090,746)				28,097,218


SCHEDULES OF INVESTMENTS			41

Schedule of Investments (Continued)

iSHARES^® MSCI MEXICO CAPPED ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.94%
(Cost: $1,595,459,048)^g	$	1,346,255,211
Other Assets, Less Liabilities — (1.94)%		(25,613,616	)

NET ASSETS — 100.00%	$	1,320,641,595

CPO — Certificates of Participation (Ordinary)

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $1,637,442,968. Net unrealized depreciation was $291,187,757, of which $14,486,443 represented gross unrealized appreciation on investments and $305,674,200 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		19,391,449		8,266,218	^b		—			27,657,667	$	27,665,964	$	(2,087	)	$	6,472	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		1,875,747		—			(1,444,493	)^b		431,254		431,254		61			—		4,023

											$	28,097,218	$	(2,026	)	$	6,472	$	4,023

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	1,318,157,993	$	—	$	—	$	1,318,157,993
Money market funds		28,097,218		—		—		28,097,218

Total	$	1,346,255,211	$	—	$	—	$	1,346,255,211

See notes to financial statements.


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.12%

AEROSPACE & DEFENSE — 0.67%
Hanwha Techwin Co. Ltd.^a,b		256,207	$	8,815,919
Korea Aerospace Industries Ltd. Class A		402,973		16,528,469

				25,344,388
AIR FREIGHT & LOGISTICS — 0.42%
Hyundai Glovis Co. Ltd.		115,346		15,855,472

				15,855,472
AIRLINES — 0.26%
Korean Air Lines Co. Ltd.^a		331,823		9,769,886

				9,769,886
AUTO COMPONENTS — 3.17%
Hankook Tire Co. Ltd.		433,669		22,691,088
Hanon Systems		1,284,402		13,156,122
Hyundai Mobis Co. Ltd.		364,802		76,350,898
Hyundai Wia Corp.^b		125,637		7,799,388

				119,997,496
AUTOMOBILES — 3.90%
Hyundai Motor Co.		819,622		102,125,657
Kia Motors Corp.		1,441,239		45,310,325

				147,435,982
BANKS — 9.51%
BNK Financial Group Inc.		1,668,095		14,586,216
DGB Financial Group Inc.		1,137,245		11,094,089
Hana Financial Group Inc.		1,616,273		70,235,347
Industrial Bank of Korea		1,529,944		20,284,376
KB Financial Group Inc.		2,133,507		104,821,114
Shinhan Financial Group Co. Ltd.		2,284,419		105,347,453
Woori Bank		2,025,297		33,407,701

				359,776,296
BEVERAGES — 0.18%
Lotte Chilsung Beverage Co. Ltd.^b		5,063		6,946,134

				6,946,134
BIOTECHNOLOGY — 1.53%
Celltrion Inc.^a,b		440,870		45,001,895
Medy-Tox Inc.		25,407		12,822,919

				57,824,814
BUILDING PRODUCTS — 0.36%
KCC Corp.		38,266		13,438,574

				13,438,574


Security	Shares		Value
CAPITAL MARKETS — 1.63%
Korea Investment Holdings Co. Ltd.		261,112	$	15,213,780
Mirae Asset Daewoo Co. Ltd.		2,332,625		20,996,935
NH Investment & Securities Co. Ltd.		963,839		11,795,830
Samsung Securities Co. Ltd.		419,669		13,603,141

				61,609,686
CHEMICALS — 4.57%
Hanwha Chemical Corp.		661,900		20,750,413
Hyosung Corp.		130,458		18,337,702
Kumho Petrochemical Co. Ltd.^b		130,450		9,116,229
LG Chem Ltd.		248,303		83,457,642
Lotte Chemical Corp.		87,520		31,007,662
OCI Co. Ltd.^b		115,748		10,090,483

				172,760,131
COMMERCIAL SERVICES & SUPPLIES — 0.45%
KEPCO Plant Service & Engineering Co. Ltd.		165,419		6,711,528
S-1 Corp.		129,839		10,328,626

				17,040,154
CONSTRUCTION & ENGINEERING — 1.52%
Daelim Industrial Co. Ltd.		178,386		13,257,136
Daewoo Engineering & Construction Co. Ltd.^a		1,092,520		6,811,295
GS Engineering & Construction Corp.^a,b		352,143		8,900,386
Hyundai Development Co. Engineering & Construction		368,601		12,307,403
Hyundai Engineering & Construction Co. Ltd.		451,995		16,294,428

				57,570,648
CONSUMER FINANCE — 0.21%
Samsung Card Co. Ltd.		246,544		8,111,726

				8,111,726
DIVERSIFIED TELECOMMUNICATION SERVICES — 0.15%
KT Corp.		205,716		5,692,036

				5,692,036
ELECTRIC UTILITIES — 1.41%
Korea Electric Power Corp.		1,398,226		53,196,076

				53,196,076
ELECTRICAL EQUIPMENT — 0.17%
Doosan Heavy Industries & Construction Co. Ltd.^b		395,357		6,311,126

				6,311,126


SCHEDULES OF INVESTMENTS			43

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017


Security	Shares		Value
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS — 3.59%
LG Display Co. Ltd.		1,305,800	$	36,072,783
LG Innotek Co. Ltd.		96,870		15,850,049
Samsung Electro-Mechanics Co. Ltd.		337,318		30,213,833
Samsung SDI Co. Ltd.		308,349		53,734,106

				135,870,771
FOOD & STAPLES RETAILING — 1.30%
BGF retail Co. Ltd.		151,486		12,252,149
Dongsuh Cos. Inc.		288,891		6,789,297
E-MART Inc.		116,853		23,213,083
GS Retail Co. Ltd.		194,342		6,954,327

				49,208,856
FOOD PRODUCTS — 1.10%
CJ CheilJedang Corp.		48,779		15,681,436
Lotte Confectionery Co. Ltd.^b		43,156		7,558,806
Orion Corp./Republic of Korea^a		149,224		11,553,082
Ottogi Corp.^b		10,082		6,804,188

				41,597,512
GAS UTILITIES — 0.21%
Korea Gas Corp.^a		201,310		8,087,392

				8,087,392
HOTELS, RESTAURANTS & LEISURE — 0.56%
Kangwon Land Inc.		691,285		21,150,525

				21,150,525
HOUSEHOLD DURABLES — 2.12%
Coway Co. Ltd.		308,582		27,037,869
Hanssem Co. Ltd.		67,730		10,211,156
LG Electronics Inc.		596,725		43,129,734

				80,378,759
INDUSTRIAL CONGLOMERATES — 4.62%
CJ Corp.		91,663		14,388,392
Hanwha Corp.		310,836		13,548,767
LG Corp.		536,667		39,978,741
Samsung C&T Corp.		416,572		47,656,782
SK Holdings Co. Ltd.		250,389		59,399,661

				174,972,343
INSURANCE — 3.59%
Dongbu Insurance Co. Ltd.		302,825		20,195,495
Hanwha Life Insurance Co. Ltd.		1,631,360		10,590,240
Hyundai Marine & Fire Insurance Co. Ltd.		411,974		16,879,389


Security	Shares		Value
Samsung Fire & Marine Insurance Co. Ltd.		183,694	$	45,043,802
Samsung Life Insurance Co. Ltd.		421,324		43,156,192

				135,865,118
INTERNET SOFTWARE & SERVICES — 3.20%
Kakao Corp.^b		192,719		21,022,027
NAVER Corp.		149,294		99,961,839

				120,983,866
IT SERVICES — 0.79%
Samsung SDS Co. Ltd.		202,144		30,027,598

				30,027,598
LIFE SCIENCES TOOLS & SERVICES — 0.68%
Samsung Biologics Co. Ltd.^a,b,c		102,741		25,785,476

				25,785,476
MACHINERY — 1.22%
Doosan Bobcat Inc.		242,001		8,187,601
Hyundai Heavy Industries Co. Ltd.^a,b		175,100		23,059,906
Samsung Heavy Industries Co. Ltd.^a,b		1,575,018		14,945,630

				46,193,137
MARINE — 0.22%
Pan Ocean Co. Ltd.^a		1,440,351		8,213,424

				8,213,424
MEDIA — 0.46%
Cheil Worldwide Inc.		501,070		8,443,003
CJ E&M Corp.		133,328		8,986,279

				17,429,282
METALS & MINING — 4.43%
Hyundai Steel Co.		459,107		23,492,793
Korea Zinc Co. Ltd.		50,582		23,146,783
POSCO		397,510		121,093,194

				167,732,770
MULTILINE RETAIL — 0.92%
Hyundai Department Store Co. Ltd.		107,100		9,175,115
Lotte Shopping Co. Ltd.^b		72,819		16,596,739
Shinsegae Inc.		52,983		9,068,570

				34,840,424
OIL, GAS & CONSUMABLE FUELS — 2.87%
GS Holdings Corp.		316,617		19,823,661
S-Oil Corp.		266,313		29,640,193
SK Innovation Co. Ltd.		354,173		59,206,820

				108,670,674


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017


Security	Shares		Value
PERSONAL PRODUCTS — 2.89%
AmorePacific Corp.^b		176,557	$	45,094,374
AmorePacific Group^b		168,180		19,985,917
LG Household & Health Care Ltd.		51,990		44,262,504

				109,342,795
PHARMACEUTICALS — 0.89%
Hanmi Pharm Co. Ltd.^a,b		38,151		13,635,024
Hanmi Science Co. Ltd.^a,b		110,150		8,742,839
Yuhan Corp.		55,780		11,179,744

				33,557,607
ROAD & RAIL — 0.21%
CJ Logistics Corp.^a,b		54,230		8,127,767

				8,127,767
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 5.57%
Hyundai Robotics Co. Ltd.^a		55,160		21,670,699
SK Hynix Inc.		3,107,210		189,033,882

				210,704,581
SOFTWARE — 1.27%
NCsoft Corp.		100,278		34,193,766
Netmarble Games Corp.^a,b,c		101,935		13,966,795

				48,160,561
SPECIALTY RETAIL — 0.33%
Hotel Shilla Co. Ltd.^b		230,326		12,643,827

				12,643,827
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 22.24%
Samsung Electronics Co. Ltd.		409,781		841,657,322

				841,657,322
TOBACCO — 1.70%
KT&G Corp.		633,494		64,326,945

				64,326,945
TRADING COMPANIES & DISTRIBUTORS — 0.34%
Posco Daewoo Corp.		346,554		6,500,193
SK Networks Co. Ltd.^b		1,020,734		6,345,641

				12,845,834
WIRELESS TELECOMMUNICATION SERVICES — 0.69%
SK Telecom Co. Ltd.		116,876		26,275,334

				26,275,334

TOTAL COMMON STOCKS
(Cost: $1,670,622,208)				3,713,331,125


Security	Shares		Value
PREFERRED STOCKS — 1.79%

AUTOMOBILES — 0.86%
Hyundai Motor Co., Preference Shares		145,830	$	12,467,198
Hyundai Motor Co. Series 2, Preference Shares		222,581		20,134,145

				32,601,343
CHEMICALS — 0.34%
LG Chem Ltd., Preference Shares		55,687		12,988,366

				12,988,366
PERSONAL PRODUCTS — 0.49%
AmorePacific Corp., Preference Shares		64,159		9,758,131
LG Household & Health Care Ltd., Preference Shares		16,176		8,607,307

				18,365,438
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS — 0.10%
Samsung Electronics Co. Ltd., Preference Shares		2,164		3,617,542

				3,617,542

TOTAL PREFERRED STOCKS
(Cost: $38,534,692)				67,572,689

SHORT-TERM INVESTMENTS — 3.85%

MONEY MARKET FUNDS — 3.85%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		140,876,705		140,918,968
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		4,974,415		4,974,415

				145,893,383

TOTAL SHORT-TERM INVESTMENTS
(Cost: $145,873,542)				145,893,383


SCHEDULES OF INVESTMENTS			45

Schedule of Investments (Continued)

iSHARES^® MSCI SOUTH KOREA CAPPED ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 103.76%
(Cost: $1,855,030,442)^g	$	3,926,797,197
Other Assets, Less Liabilities — (3.76)%		(142,159,434	)

NET ASSETS — 100.00%	$	3,784,637,763

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $2,410,993,429. Net unrealized appreciation was $1,515,803,768, of which $2,123,134,609 represented gross unrealized appreciation on investments and $607,330,841 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		129,185,165		11,691,540	^b		—		140,876,705	$	140,918,968	$	4,709	$	19,841	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		4,717,300		257,115	^b		—		4,974,415		4,974,415		57		—		41,681

										$	145,893,383	$	4,766	$	19,841	$	41,681

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	3,713,331,125	$	—	$	—	$	3,713,331,125
Preferred stocks		67,572,689		—		—		67,572,689
Money market funds		145,893,383		—		—		145,893,383

Total	$	3,926,797,197	$	—	$	—	$	3,926,797,197

See notes to financial statements.


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares Edge MSCI Min Vol Global ETF			iShares MSCI Australia ETF			iShares MSCI Canada ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	3,177,379,890		$	1,913,517,259		$	3,497,459,111
Affiliated (Note 2)		59,378,772			7,170,523			44,219,286

Total cost of investments in securities	$	3,236,758,662		$	1,920,687,782		$	3,541,678,397

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	3,658,187,253		$	1,745,888,271		$	3,112,636,519
Affiliated (Note 2)		59,392,577			7,170,842			44,221,973
Foreign currency, at value^b		4,297,134			5,152,054			8,742,512
Cash pledged to broker for futures contracts		—			1,098,053			581,383
Receivables:
Investment securities sold		—			1,203,195			32,332,006
Dividends and interest		9,129,572			14,063,402			5,827,597
Futures variation margin		—			—			47,272
Tax reclaims		2,023,250			—			—

Total Assets		3,733,029,786			1,774,575,817			3,204,389,262


LIABILITIES
Payables:
Investment securities purchased		—			879,928			31,222,452
Collateral for securities on loan (Note 1)		56,897,542			6,987,414			43,809,592
Capital shares redeemed		—			—			170,758
Futures variation margin		—			80,653			—
Foreign taxes (Note 1)		147,771			—			—
Investment advisory fees (Note 2)		610,541			715,496			1,266,758

Total Liabilities		57,655,854			8,663,491			76,469,560


NET ASSETS	$	3,675,373,932		$	1,765,912,326		$	3,127,919,702


Net assets consist of:
Paid-in capital	$	3,288,648,124		$	2,169,727,056		$	4,043,163,286
Undistributed (distributions in excess of) net investment income		12,801,276			6,908,701			7,575,046
Accumulated net realized loss		(106,957,724	)		(243,234,009	)		(538,045,474	)
Net unrealized appreciation (depreciation)		480,882,256			(167,489,422	)		(384,773,156	)

NET ASSETS	$	3,675,373,932		$	1,765,912,326		$	3,127,919,702


Shares outstanding^c		45,300,000			78,200,000			112,400,000


Net asset value per share	$	81.13		$	22.58		$	27.83

^a	Securities on loan with values of $54,508,615, $6,689,886 and $42,238,300, respectively. See Note 1.

^b	Cost of foreign currency: $4,292,028, $6,118,630 and $9,348,081, respectively.

^c	$0.001 par value, number of shares authorized: 500 million, 627.8 million and 340.2 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			47

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Japan ETF			iShares MSCI Mexico Capped ETF			iShares MSCI South Korea Capped ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	15,934,505,938		$	1,567,368,302		$	1,709,156,900
Affiliated (Note 2)		45,826,352			28,090,746			145,873,542

Total cost of investments in securities	$	15,980,332,290		$	1,595,459,048		$	1,855,030,442

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	15,970,512,906		$	1,318,157,993		$	3,780,903,814
Affiliated (Note 2)		45,833,164			28,097,218			145,893,383
Foreign currency, at value^b		21,522,724			2,700,659			—
Foreign currency pledged to broker for futures contracts, at value^b		658,726			—			—
Receivables:
Investment securities sold		35,366,705			15,203,004			20,228,474
Due from custodian (Note 4)		—			71,708			—
Dividends and interest		20,598,466			715,400			546,506
Futures variation margin		642,232			—			—

Total Assets		16,095,134,923			1,364,945,982			3,947,572,177


LIABILITIES
Payables:
Investment securities purchased		30,291,956			16,103,186			20,111,823
Collateral for securities on loan (Note 1)		40,543,731			27,661,580			140,894,418
Investment advisory fees (Note 2)		6,610,337			539,621			1,928,173

Total Liabilities		77,446,024			44,304,387			162,934,414


NET ASSETS	$	16,017,688,899		$	1,320,641,595		$	3,784,637,763


Net assets consist of:
Paid-in capital	$	17,199,504,435		$	1,848,477,134		$	2,862,052,603
Undistributed (distributions in excess of) net investment income		(26,048,656	)		7,154,017			(81,351,030	)
Accumulated net realized loss		(1,192,558,997	)		(285,622,096	)		(1,067,833,954	)
Net unrealized appreciation (depreciation)		36,792,117			(249,367,460	)		2,071,770,144

NET ASSETS	$	16,017,688,899		$	1,320,641,595		$	3,784,637,763


Shares outstanding^c		293,550,000	^d		23,300,000			55,500,000


Net asset value per share	$	54.57	^d	$	56.68		$	68.19

^a	Securities on loan with values of $38,716,306, $26,031,757 and $133,746,749, respectively. See Note 1.

^b	Cost of foreign currency including currency pledged to broker for futures contracts: $22,281,027, $2,696,900 and $ —, respectively.

^c	$0.001 par value, number of shares authorized: 2.5246 billion, 255 million and 200 million, respectively.

^d	Shares outstanding and net asset value per share reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares Edge MSCI Min Vol Global ETF			iShares MSCI Australia ETF			iShares MSCI Canada ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	83,299,846		$	79,030,390		$	77,883,650
Dividends — affiliated (Note 2)		29,119			7,465			8,519
Interest — unaffiliated		—			835			27
Securities lending income — affiliated — net (Note 2)		950,471			32,559			82,904

		84,279,436			79,071,249			77,975,100
Less: Other foreign taxes (Note 1)		(188,016	)		—			(30,490	)

Total investment income		84,091,420			79,071,249			77,944,610


EXPENSES
Investment advisory fees (Note 2)		10,283,210			8,765,631			15,654,293
Proxy fees		67,310			41,422			66,762

Total expenses		10,350,520			8,807,053			15,721,055
Less investment advisory fees waived (Note 2)		(3,893,046	)		—			—

Net expenses		6,457,474			8,807,053			15,721,055

Net investment income		77,633,946			70,264,196			62,223,555


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(26,626,733	)		(23,621,694	)		(113,329,778	)
Investments — affiliated (Note 2)		16,088			(190	)		(2,561	)
In-kind redemptions — unaffiliated		101,489,581			101,252,528			251,306,238
Futures contracts		—			1,617,158			993,580
Foreign currency transactions		(488,591	)		(252,344	)		327,225
Realized gain distributions from affiliated funds		242			53			288

Net realized gain		74,390,587			78,995,511			139,294,992

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		141,378,809			126,918,481			156,860,561
Investments — affiliated (Note 2)		13,805			319			2,687
Futures contracts		—			(236,915	)		(318,333	)
Translation of assets and liabilities in foreign currencies		129,055			527,565			139,874

Net change in unrealized appreciation/depreciation		141,521,669			127,209,450			156,684,789

Net realized and unrealized gain		215,912,256			206,204,961			295,979,781

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	293,546,202		$	276,469,157		$	358,203,336

^a	Net of foreign withholding tax of $4,512,840, $479,534 and $13,737,118, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			49

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Japan ETF			iShares MSCI Mexico Capped ETF			iShares MSCI South Korea Capped ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	300,652,682		$	31,861,308		$	50,888,121
Dividends — affiliated (Note 2)		43,064			4,023			41,681
Interest — unaffiliated		—			—			58
Securities lending income — affiliated — net (Note 2)		3,382,165			703,004			4,908,542

		304,077,911			32,568,335			55,838,402
Less: Other foreign taxes (Note 1)		—			—			937

Total investment income		304,077,911			32,568,335			55,839,339


EXPENSES
Investment advisory fees (Note 2)		76,064,253			6,962,143			20,609,453
Proxy fees		344,241			28,311			69,215

Total expenses		76,408,494			6,990,454			20,678,668

Net investment income		227,669,417			25,577,881			35,160,671


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(197,802,651	)		(75,908,002	)		164,460,523
Investments — affiliated (Note 2)		1,589			(2,087	)		4,709
In-kind redemptions — unaffiliated		644,849,506			68,249,782			—
Futures contracts		24,447,380			—			—
Foreign currency transactions		(15,913,555	)		(218,589	)		1,863,380
Realized gain distributions from affiliated funds		122			61			57

Net realized gain (loss)		455,582,391			(7,878,835	)		166,328,669

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		1,309,943,854			189,192,269			392,350,106
Investments — affiliated (Note 2)		6,812			6,472			19,841
Futures contracts		(26,487	)		—			—
Translation of assets and liabilities in foreign currencies		330,724			76,604			282,147

Net change in unrealized appreciation/depreciation		1,310,254,903			189,275,345			392,652,094

Net realized and unrealized gain		1,765,837,294			181,396,510			558,980,763

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	1,993,506,711		$	206,974,391		$	594,141,434

^a	Net of foreign withholding tax of $33,367,209, $1,103,631 and $9,393,027, respectively.

See notes to financial statements.


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Edge MSCI Min Vol Global ETF						iShares MSCI Australia ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	77,633,946		$	64,576,560		$	70,264,196		$	62,740,787
Net realized gain (loss)		74,390,587			30,872,741			78,995,511			(22,265,463	)
Net change in unrealized appreciation/depreciation		141,521,669			252,873,179			127,209,450			137,229,771

Net increase in net assets resulting from operations		293,546,202			348,322,480			276,469,157			177,705,095


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(82,291,396	)		(59,015,735	)		(83,656,742	)		(59,291,158	)

Total distributions to shareholders		(82,291,396	)		(59,015,735	)		(83,656,742	)		(59,291,158	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		684,634,417			1,225,242,572			624,267,864			683,182,993
Cost of shares redeemed		(488,203,636	)		(362,492,946	)		(719,870,284	)		(360,957,779	)

Net increase (decrease) in net assets from capital share transactions		196,430,781			862,749,626			(95,602,420	)		322,225,214

INCREASE IN NET ASSETS		407,685,587			1,152,056,371			97,209,995			440,639,151

NET ASSETS
Beginning of year		3,267,688,345			2,115,631,974			1,668,702,331			1,228,063,180

End of year	$	3,675,373,932		$	3,267,688,345		$	1,765,912,326		$	1,668,702,331

Undistributed net investment income included in net assets at end of year	$	12,801,276		$	16,401,105		$	6,908,701		$	11,677,105


SHARES ISSUED AND REDEEMED
Shares sold		8,700,000			16,900,000			29,400,000			35,400,000
Shares redeemed		(6,500,000	)		(5,100,000	)		(33,400,000	)		(19,000,000	)

Net increase (decrease) in shares outstanding		2,200,000			11,800,000			(4,000,000	)		16,400,000

See notes to financial statements.


FINANCIAL STATEMENTS			51

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Canada ETF						iShares MSCI Japan ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017^a			Year ended August 31, 2016^a

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	62,223,555		$	49,872,015		$	227,669,417		$	264,486,625
Net realized gain (loss)		139,294,992			(61,752,843	)		455,582,391			179,035,668
Net change in unrealized appreciation/depreciation		156,684,789			237,092,373			1,310,254,903			(335,550,040	)

Net increase in net assets resulting from operations		358,203,336			225,211,545			1,993,506,711			107,972,253


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(60,198,481	)		(46,033,306	)		(288,645,468	)		(261,611,433	)

Total distributions to shareholders		(60,198,481	)		(46,033,306	)		(288,645,468	)		(261,611,433	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		1,022,753,433			1,347,709,468			4,661,723,572			3,254,831,968
Cost of shares redeemed		(1,290,632,177	)		(360,548,208	)		(4,364,075,580	)		(8,233,815,497	)

Net increase (decrease) in net assets from capital share transactions		(267,878,744	)		987,161,260			297,647,992			(4,978,983,529	)

INCREASE (DECREASE) IN NET ASSETS		30,126,111			1,166,339,499			2,002,509,235			(5,132,622,709	)

NET ASSETS
Beginning of year		3,097,793,591			1,931,454,092			14,015,179,664			19,147,802,373

End of year	$	3,127,919,702		$	3,097,793,591		$	16,017,688,899		$	14,015,179,664

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	7,575,046		$	4,768,460		$	(26,048,656	)	$	41,500,905


SHARES ISSUED AND REDEEMED
Shares sold		38,600,000			57,300,000			113,100,000			69,900,000
Shares redeemed		(48,500,000	)		(15,400,000	)		(105,300,000	)		(178,050,000	)

Net increase (decrease) in shares outstanding		(9,900,000	)		41,900,000			7,800,000			(108,150,000	)

^a	Share transactions reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Mexico Capped ETF						iShares MSCI South Korea Capped ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	25,577,881		$	22,572,568		$	35,160,671		$	35,496,600
Net realized gain (loss)		(7,878,835	)		(105,424,948	)		166,328,669			(72,441,943	)
Net change in unrealized appreciation/depreciation		189,275,345			13,777,983			392,652,094			641,389,742

Net increase (decrease) in net assets resulting from operations		206,974,391			(69,074,397	)		594,141,434			604,444,399


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(21,098,710	)		(31,509,179	)		(34,948,193	)		(75,311,690	)

Total distributions to shareholders		(21,098,710	)		(31,509,179	)		(34,948,193	)		(75,311,690	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		2,161,693,065			1,471,785,156			330,287,930			456,857,078
Cost of shares redeemed		(2,344,445,161	)		(1,260,625,873	)		(557,813,596	)		(693,973,908	)

Net increase (decrease) in net assets from capital share transactions		(182,752,096	)		211,159,283			(227,525,666	)		(237,116,830	)

INCREASE IN NET ASSETS		3,123,585			110,575,707			331,667,575			292,015,879

NET ASSETS
Beginning of year		1,317,518,010			1,206,942,303			3,452,970,188			3,160,954,309

End of year	$	1,320,641,595		$	1,317,518,010		$	3,784,637,763		$	3,452,970,188

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	7,154,017		$	(3,342,828	)	$	(81,351,030	)	$	(111,718,391	)


SHARES ISSUED AND REDEEMED
Shares sold		45,200,000			28,200,000			4,750,000			8,900,000
Shares redeemed		(48,000,000	)		(25,000,000	)		(9,950,000	)		(13,850,000	)

Net increase (decrease) in shares outstanding		(2,800,000	)		3,200,000			(5,200,000	)		(4,950,000	)

See notes to financial statements.


FINANCIAL STATEMENTS			53

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares Edge MSCI Min Vol Global ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	75.82		$	67.59		$	68.25		$	59.99		$	55.65

Income from investment operations:
Net investment income^a		1.84			1.79			1.70			1.72			1.68
Net realized and unrealized gain (loss)^b		5.40			8.07			(0.89	)		8.18			4.20

Total from investment operations		7.24			9.86			0.81			9.90			5.88

Less distributions from:
Net investment income		(1.93	)		(1.63	)		(1.47	)		(1.64	)		(1.54	)

Total distributions		(1.93	)		(1.63	)		(1.47	)		(1.64	)		(1.54	)

Net asset value, end of year	$	81.13		$	75.82		$	67.59		$	68.25		$	59.99


Total return		9.75	%		14.76	%		1.15	%		16.70	%		10.69	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,675,374		$	3,267,688		$	2,115,632		$	1,283,012		$	1,007,760
Ratio of expenses to average net assets		0.20	%		0.20	%		0.20	%		0.20	%		0.20	%
Ratio of expenses to average net assets prior to waived fees		0.32	%		0.32	%		0.33	%		0.33	%		0.34	%
Ratio of net investment income to average net assets		2.40	%		2.49	%		2.41	%		2.67	%		2.83	%
Portfolio turnover rate^c		24	%		24	%		22	%		24	%		13	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 24%, 23%, 22%, 23% and 13%, respectively. See Note 4.

See notes to financial statements.


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Australia ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	20.30		$	18.66		$	27.15		$	23.61		$	23.39

Income from investment operations:
Net investment income^a		0.84			0.84			1.23			1.10			1.02
Net realized and unrealized gain (loss)^b		2.45			1.59			(8.49	)		3.43			0.64

Total from investment operations		3.29			2.43			(7.26	)		4.53			1.66

Less distributions from:
Net investment income		(1.01	)		(0.79	)		(1.23	)		(0.99	)		(1.44	)

Total distributions		(1.01	)		(0.79	)		(1.23	)		(0.99	)		(1.44	)

Net asset value, end of year	$	22.58		$	20.30		$	18.66		$	27.15		$	23.61


Total return		16.70	%		13.36	%		(27.31	)%		19.76	%		7.06	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,765,912		$	1,668,702		$	1,228,063		$	2,047,113		$	1,916,849
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		3.90	%		4.41	%		5.37	%		4.28	%		4.05	%
Portfolio turnover rate^c		4	%		7	%		9	%		6	%		6	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			55

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Canada ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	25.33		$	24.02		$	32.93		$	27.34		$	27.52

Income from investment operations:
Net investment income^a		0.51			0.51			0.54			0.59			0.60
Net realized and unrealized gain (loss)^b		2.47			1.29			(8.85	)		5.62			(0.10	)

Total from investment operations		2.98			1.80			(8.31	)		6.21			0.50

Less distributions from:
Net investment income		(0.48	)		(0.49	)		(0.60	)		(0.62	)		(0.68	)

Total distributions		(0.48	)		(0.49	)		(0.60	)		(0.62	)		(0.68	)

Net asset value, end of year	$	27.83		$	25.33		$	24.02		$	32.93		$	27.34


Total return		11.88	%		7.73	%		(25.48	)%		23.00	%		1.84	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,127,920		$	3,097,794		$	1,931,454		$	3,786,906		$	3,428,223
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.51	%
Ratio of net investment income to average net assets		1.93	%		2.18	%		1.92	%		1.97	%		2.12	%
Portfolio turnover rate^c		6	%		4	%		5	%		6	%		7	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Japan ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	49.05		$	48.61		$	47.32		$	43.87		$	36.09

Income from investment operations:
Net investment income^b		0.49			0.72			0.60			0.60			0.52
Net realized and unrealized gain^c		5.96			0.44			1.22			3.53			7.85

Total from investment operations		6.45			1.16			1.82			4.13			8.37

Less distributions from:
Net investment income		(0.93	)		(0.72	)		(0.53	)		(0.68	)		(0.59	)

Total distributions		(0.93	)		(0.72	)		(0.53	)		(0.68	)		(0.59	)

Net asset value, end of year	$	54.57		$	49.05		$	48.61		$	47.32		$	43.87


Total return		13.31	%		2.44	%		3.84	%		9.39	%		23.46	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	16,017,689		$	14,015,180		$	19,147,802		$	14,729,189		$	10,461,942
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		1.45	%		1.53	%		1.20	%		1.31	%		1.18	%
Portfolio turnover rate^d		4	%		4	%		2	%		2	%		4	%

^a	Per share amounts reflect a one-for-four reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			57

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Mexico Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	50.48		$	52.70		$	71.51		$	61.93		$	60.96

Income from investment operations:
Net investment income^a		0.88			0.93			0.68			1.06			0.75
Net realized and unrealized gain (loss)^b		6.10			(1.82	)		(18.56	)		9.61			0.85

Total from investment operations		6.98			(0.89	)		(17.88	)		10.67			1.60

Less distributions from:
Net investment income		(0.78	)		(1.33	)		(0.93	)		(1.09	)		(0.63	)

Total distributions		(0.78	)		(1.33	)		(0.93	)		(1.09	)		(0.63	)

Net asset value, end of year	$	56.68		$	50.48		$	52.70		$	71.51		$	61.93


Total return		14.03	%		(1.68	)%		(25.10	)%		17.42	%		2.53	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	1,320,642		$	1,317,518		$	1,206,942		$	3,275,152		$	2,217,052
Ratio of expenses to average net assets		0.49	%		0.48	%		0.48	%		0.48	%		0.50	%
Ratio of net investment income to average net assets		1.79	%		1.82	%		1.10	%		1.61	%		1.09	%
Portfolio turnover rate^c		8	%		8	%		13	%		19	%		32	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI South Korea Capped ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	56.89		$	48.15		$	66.42		$	57.67		$	55.97

Income from investment operations:
Net investment income^a		0.64			0.56			0.46			0.25			0.23
Net realized and unrealized gain (loss)^b		11.31			9.38			(18.07	)		9.40			1.83

Total from investment operations		11.95			9.94			(17.61	)		9.65			2.06

Less distributions from:
Net investment income		(0.65	)		(1.20	)		(0.66	)		(0.90	)		(0.36	)

Total distributions		(0.65	)		(1.20	)		(0.66	)		(0.90	)		(0.36	)

Net asset value, end of year	$	68.19		$	56.89		$	48.15		$	66.42		$	57.67


Total return		21.28	%		20.92	%		(26.58	)%		16.83	%		3.65	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	3,784,638		$	3,452,970		$	3,160,954		$	4,891,619		$	3,376,516
Ratio of expenses to average net assets		0.62	%		0.64	%		0.62	%		0.62	%		0.61	%
Ratio of net investment income to average net assets		1.05	%		1.09	%		0.81	%		0.39	%		0.40	%
Portfolio turnover rate^c		16	%		22	%		24	%		13	%		13	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 6%, 10%, 10%, 10% and 11%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			59

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF		Diversification Classification
Edge MSCI Min Vol Global		Diversified
MSCI Australia		Non-diversified
MSCI Canada		Diversified
MSCI Japan		Diversified
MSCI Mexico Capped		Non-diversified
MSCI South Korea Capped		Non-diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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

•

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

•


NOTES TO FINANCIAL STATEMENTS			61

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			63

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Edge MSCI Min Vol Global
Citigroup Global Markets Inc.	$	4,180,812	$	4,180,812	$	—
Credit Suisse Securities (USA) LLC		1,969,583		1,969,583		—
Deutsche Bank AG		1,278,772		1,278,772		—
Deutsche Bank Securities Inc.		656,528		656,528		—
Goldman Sachs & Co.		9,802,245		9,802,245		—
HSBC Bank PLC		45,755		45,755		—
Jefferies LLC		1,894		1,894		—
JPMorgan Securities LLC		7,598,900		7,598,900		—
JPMorgan Securities PLC		1,217,446		1,217,446		—
Merrill Lynch, Pierce, Fenner & Smith		8,792,776		8,792,776		—
Morgan Stanley & Co. International PLC		827,973		827,973		—
Morgan Stanley & Co. LLC		10,498,309		10,498,309		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		531,706		531,706		—
Nomura Securities International Inc.		777,161		777,161		—
State Street Bank & Trust Company		5,883,493		5,883,493		—
UBS Securities LLC		445,262		445,262		—

	$	54,508,615	$	54,508,615	$	—

MSCI Australia
Barclays Capital Inc.	$	3,517,482	$	3,517,482	$	—
UBS Securities LLC		3,172,404		3,172,404		—

	$	6,689,886	$	6,689,886	$	—

MSCI Canada
Credit Suisse Securities (USA) LLC	$	7,066,093	$	7,066,093	$	—
Goldman Sachs & Co.		25,194,109		25,194,109		—
Merrill Lynch, Pierce, Fenner & Smith		18,628		18,628		—
Morgan Stanley & Co. LLC		4,726,213		4,726,213		—
State Street Bank & Trust Company		5,080,403		5,080,403		—
UBS AG		152,854		152,854		—

	$	42,238,300	$	42,238,300	$	—

MSCI Japan
Barclays Capital Inc.	$	1,357,213	$	1,357,213	$	—
Citigroup Global Markets Inc.		954,786		954,786		—
Credit Suisse Securities (USA) LLC		5,578,395		5,578,395		—
Goldman Sachs & Co.		5,367,767		5,367,767		—
Merrill Lynch, Pierce, Fenner & Smith		16,001,624		16,001,624		—
Morgan Stanley & Co. LLC		8,519,203		8,519,203		—
Nomura Securities International Inc.		9,144		9,144		—
State Street Bank & Trust Company		928,174		928,174		—

	$	38,716,306	$	38,716,306	$	—


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI Mexico Capped
Credit Suisse Securities (USA) LLC	$	589,088	$	589,088	$	—
Deutsche Bank Securities Inc.		38,378		38,378		—
Goldman Sachs & Co.		7,929,754		7,929,754		—
Morgan Stanley & Co. LLC		17,143,566		17,143,566		—
UBS Securities LLC		330,971		330,971		—

	$	26,031,757	$	26,031,757	$	—

MSCI South Korea Capped
BNP Paribas Prime Brokerage Inc.	$	317,488	$	317,488	$	—
Citigroup Global Markets Inc.		43,335,662		43,335,662		—
Credit Suisse Securities (USA) LLC		7,366,152		7,366,152		—
Deutsche Bank Securities Inc.		6,437,551		6,437,551		—
Goldman Sachs & Co.		33,614,193		33,614,193		—
HSBC Bank PLC		679,108		679,108		—
JPMorgan Securities LLC		396,861		396,861		—
Macquarie Bank Limited		3,658,158		3,658,158		—
Morgan Stanley & Co. LLC		37,941,576		37,941,576		—

	$	133,746,749	$	133,746,749	$	—

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

For its investment advisory services to the iShares Edge MSCI Min Vol Global ETF, BFA is entitled to an annual investment advisory fee, 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:


Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.350	%	First $30 billion
	0.320		Over $30 billion, up to and including $60 billion
	0.280		Over $60 billion, up to and including $90 billion
	0.252		Over $90 billion, up to and including $120 billion^a
	0.227		Over $120 billion^a

Break level added or amended effective July 1, 2017.


NOTES TO FINANCIAL STATEMENTS			65

Notes to Financial Statements (Continued)

iSHARES^®, INC.

In addition, the iShares Edge MSCI Min Vol Global ETF 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 acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive through December 31, 2023 any portion of its investment advisory fee for the Fund necessary to limit total annual operating expenses to 0.20% of average daily net assets.

For its investment advisory services to each of the iShares MSCI Australia, iShares MSCI Canada, iShares MSCI Japan and iShares MSCI Mexico Capped ETFs, BFA is entitled to an annual investment advisory fee, 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:


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

Break level added or amended effective July 1, 2017.

For its investment advisory services to the iShares MSCI South Korea Capped 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:


Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.74	%	First $2 billion
	0.69		Over $2 billion, up to and including $4 billion
	0.64		Over $4 billion, up to and including $8 billion
	0.57		Over $8 billion, up to and including $16 billion
	0.51		Over $16 billion, up to and including $24 billion
	0.48		Over $24 billion, up to and including $32 billion
	0.45		Over $32 billion


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

all 1940 Act iShares exchange-traded funds (the “iShares ETF Complex”) in a given calendar year exceeds the aggregate securities lending income generated across the iShares ETF Complex in the calendar year 2013, each Fund, pursuant to a securities lending agreement, will retain for the remainder of that calendar year 85% of securities lending income and the amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Edge MSCI Min Vol Global	$	245,849
MSCI Australia		8,954
MSCI Canada		26,793
MSCI Japan		793,698
MSCI Mexico Capped		176,754
MSCI South Korea Capped		1,121,053

For the year ended August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Min Vol Global	$	106,539,039	$	44,433,771
MSCI Australia		3,094,430		5,735,234
MSCI Japan		55,625,584		27,440,774
MSCI South Korea Capped		24,001,756		5,085,653

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.


NOTES TO FINANCIAL STATEMENTS			67

Notes to Financial Statements (Continued)

iSHARES^®, INC.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Min Vol Global	$	809,307,324	$	789,468,503
MSCI Australia		95,435,256		62,528,480
MSCI Canada		226,062,007		199,117,529
MSCI Japan		574,767,839		624,259,718
MSCI Mexico Capped		146,171,156		118,864,540
MSCI South Korea Capped		547,043,826		749,775,880

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Edge MSCI Min Vol Global	$	614,584,779	$	439,908,551
MSCI Australia		582,421,403		714,108,532
MSCI Canada		978,097,817		1,276,326,666
MSCI Japan		4,483,728,662		4,186,916,459
MSCI Mexico Capped		2,132,387,727		2,335,377,061

4.	*CAPITAL SHARE TRANSACTIONS*

The Board authorized a one-for-four reverse stock split for the iShares MSCI Japan ETF, effective after the close of trading on November 4, 2016. The impact of the stock split was to decrease the number of shares outstanding by a factor of four, while increasing the NAV per share by a factor of four, resulting in no effect on the net assets of the Fund. The financial statements for the Fund have been adjusted to reflect the reverse stock split.


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

5.	*FUTURES CONTRACTS*

The following table shows the value of futures contracts held as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
	iShares MSCI Canada ETF		iShares MSCI Japan ETF
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)^a	$	47,272	$	642,232

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


Liabilities
	iShares MSCI Australia ETF
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)^b	$	80,653

Represents cumulative depreciation of futures contracts as reported in the schedules of investments.


NOTES TO FINANCIAL STATEMENTS			69

Notes to Financial Statements (Continued)

iSHARES^®, INC.


	Net Realized Gain (Loss)
	iShares MSCI Australia ETF			iShares MSCI Canada ETF			iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	1,617,158		$	993,580		$	24,447,380


	Net Change in Unrealized Appreciation/Depreciation
	iShares MSCI Australia ETF			iShares MSCI Canada ETF			iShares MSCI Japan ETF
Equity contracts:
Futures contracts	$	(236,915	)	$	(318,333	)	$	(26,487	)

The following table shows the average quarter-end balances of open futures contracts for the year ended August 31, 2017:

iShares MSCI
Australia ETF

iShares MSCI

Canada ETF

iShares MSCI

Japan ETF

Average value of contracts purchased

17,449,280

10,625,735

85,363,645

6.	*PRINCIPAL RISKS*

MARKET RISK


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

CREDIT RISK

7.	*INCOME TAX INFORMATION*


NOTES TO FINANCIAL STATEMENTS			71

Notes to Financial Statements (Continued)

iSHARES^®, INC.

capital loss carryforwards, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
Edge MSCI Min Vol Global	$	96,384,727		$	1,057,621		$	(97,442,348	)
MSCI Australia		46,516,026			8,624,142			(55,140,168	)
MSCI Canada		183,617,082			781,512			(184,398,594	)
MSCI Japan		424,091,976			(6,573,510	)		(417,518,466	)
MSCI Mexico Capped		503,991			6,017,674			(6,521,665	)
MSCI South Korea Capped		(60,990,953	)		30,154,883			30,836,070

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
Edge MSCI Min Vol Global
Ordinary income	$	82,291,396	$	59,015,735


MSCI Australia
Ordinary income	$	83,656,742	$	59,291,158


MSCI Canada
Ordinary income	$	60,198,481	$	46,033,306


MSCI Japan
Ordinary income	$	288,645,468	$	261,611,433


MSCI Mexico Capped
Ordinary income	$	21,098,710	$	31,509,179


MSCI South Korea Capped
Ordinary income	$	34,948,193	$	75,311,690


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2017, 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 Global	$	13,577,122	$	(86,612,072	)	$	459,760,758		$	386,725,808
MSCI Australia		18,437,394		(196,433,666	)		(225,818,458	)		(403,814,730	)
MSCI Canada		8,999,212		(464,673,029	)		(459,569,767	)		(915,243,584	)
MSCI Japan		1,927,845		(999,223,744	)		(184,519,637	)		(1,181,815,536	)
MSCI Mexico Capped		7,674,574		(244,158,733	)		(291,351,380	)		(527,835,539	)
MSCI South Korea Capped		38,622,494		(631,844,491	)		1,515,807,157			922,585,160

As of August 31, 2017, 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 2018		Expiring 2019		Total
Edge MSCI Min Vol Global	$	86,612,072	$	—	$	—	$	86,612,072
MSCI Australia		160,958,058		23,348,244		12,127,364		196,433,666
MSCI Canada		380,840,433		68,928,677		14,903,919		464,673,029
MSCI Japan		686,418,449		173,577,101		139,228,194		999,223,744
MSCI Mexico Capped		218,505,597		2,789,471		22,863,665		244,158,733
MSCI South Korea Capped		326,749,122		226,591,665		78,503,704		631,844,491

Must be utilized prior to losses subject to expiration.

For the year ended August 31, 2017, the iShares MSCI South Korea Capped ETF utilized $21,661,340 of its capital loss carryforwards.

8.	*LEGAL PROCEEDINGS*

On June 16, 2016, investors (the “Plaintiffs”) 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 putative 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”). 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


NOTES TO FINANCIAL STATEMENTS			73

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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 Plaintiffs’ claims with prejudice.

9.	*SUBSEQUENT EVENTS*

At a meeting held on September 14-15, 2017, the Board approved a line of credit for the iShares Edge MSCI Min Vol Global ETF. The Fund, along with certain other iShares funds, will be a party to a $275 million credit agreement with State Street Bank and Trust Company, which will expire 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 is expected to be effective on or around October 25, 2017.

Effective September 1, 2017, the iShares MSCI Canada ETF will track a new underlying index, the MSCI Canada Custom Capped Index, and will cease to track the MSCI Canada Index. The change to a capped benchmark is being implemented to seek to reduce tracking error and improve the investor experience.


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares Edge MSCI Min Vol Global ETF, iShares MSCI Australia ETF,

iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico Capped ETF and

iShares MSCI South Korea Capped ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Edge MSCI Min Vol Global ETF, iShares MSCI Australia ETF, iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico Capped ETF and iShares MSCI South Korea Capped ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			75

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
Edge MSCI Min Vol Global	$	61,075,464
MSCI Australia		72,694,868
MSCI Canada		91,132,878
MSCI Japan		314,167,652
MSCI Mexico Capped		30,088,863
MSCI South Korea Capped		84,686,130

For corporate shareholders, the percentage of income dividends paid by the iShares Edge MSCI Min Vol Global ETF during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction was 51.50%.

For the fiscal year ended August 31, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Australia	$	79,509,924	$	479,412
MSCI Canada		91,620,768		13,765,737
MSCI Japan		333,859,362		33,360,177
MSCI Mexico Capped		32,798,442		1,081,778
MSCI South Korea Capped		86,326,759		9,392,107


76		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. 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. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			77

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


78		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate, and that BFA and the Board had agreed 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.

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

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			79

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI Australia ETF and iShares MSCI Canada ETF


80		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			81

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

by the Funds. The Board also discussed BFA’s profit margin as reflected in the Funds’ profitability analyses and reviewed information regarding potential economies of scale (as discussed below). Based on this review, the Board concluded that the profits realized by BFA and its affiliates under the Advisory Contract and from other relationships between the Funds and BFA and/or its affiliates, if any, were within a reasonable range in light of the factors considered.

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


82		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

III. iShares MSCI Japan ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			83

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


84		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			85

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

IV. iShares MSCI Mexico Capped ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the


86		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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

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 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			87

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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


88		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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 that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

VI. iShares MSCI South Korea Capped ETF


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			89

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

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


90		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			91

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


92		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results

A special meeting of the shareholders of each series of iShares Trust (the “Trust”) was held on June 19, 2017, to elect five Trustees to the Board of Trustees of the Trust. The five nominees were Jane D. Carlin, Richard L. Fagnani, Drew E. Lawton, Madhav V. Rajan and Mark Wiedman, all of whom were elected as Trustees at the special meeting. The other Trustees whose terms of office as Trustees continued after the special meeting are Cecilia H. Herbert, Charles A. Hurty, John E. Kerrigan, John E. Martinez and Robert S. Kapito.


Trustee	Votes For		Votes Withheld
Jane D. Carlin		8,669,874,031		59,322,838
Richard L. Fagnani		8,672,718,914		56,477,955
Drew E. Lawton		8,670,713,236		58,483,633
Madhav V. Rajan		8,653,682,870		75,513,999
Mark Wiedman		8,664,674,816		64,522,053

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Edge MSCI Min Vol Global	$	1.895846	$	—	$	0.032141	$	1.927987		98	%		—	%		2	%		100	%
MSCI Australia		1.009461		—		—		1.009461		100			—			—			100
MSCI Canada		0.434019		—		0.044022		0.478041		91			—			9			100
MSCI Japan		0.930654		—		0.001098		0.931752		100			—			0	^a		100
MSCI Mexico Capped		0.782184		—		—		0.782184		100			—			—			100
MSCI South Korea Capped		—		—		0.645396		0.645396		—			—			100			100

Rounds to less than 1%.

Premium/Discount Information


SUPPLEMENTAL INFORMATION			93

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares Edge MSCI Min Vol Global ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		2		0.14	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		6		0.43
Greater than 1.5% and Less than 2.0%		3		0.22
Greater than 1.0% and Less than 1.5%		16		1.16
Greater than 0.5% and Less than 1.0%		103		7.45
Greater than 0.0% and Less than 0.5%		856		61.90
At NAV		21		1.52
Less than 0.0% and Greater than –0.5%		356		25.74
Less than –0.5% and Greater than –1.0%		17		1.23
Less than –1.0% and Greater than –1.5%		1		0.07
Less than –1.5%		1		0.07

		1,383		100.00	%


94		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Australia ETF

Period Covered: January 1, 2012 through June 30, 2017


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%		22		1.59
Greater than 1.0% and Less than 1.5%		60		4.34
Greater than 0.5% and Less than 1.0%		237		17.14
Greater than 0.0% and Less than 0.5%		474		34.28
At NAV		13		0.94
Less than 0.0% and Greater than –0.5%		331		23.93
Less than –0.5% and Greater than –1.0%		148		10.71
Less than –1.0% and Greater than –1.5%		60		4.34
Less than –1.5% and Greater than –2.0%		13		0.94
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%		1		0.07
Less than –3.5%		1		0.07

		1,383		100.00	%

iShares MSCI Canada ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		1		0.07
Greater than 1.5% and Less than 2.0%		2		0.14
Greater than 1.0% and Less than 1.5%		5		0.36
Greater than 0.5% and Less than 1.0%		35		2.53
Greater than 0.0% and Less than 0.5%		623		45.05
At NAV		34		2.46
Less than 0.0% and Greater than –0.5%		641		46.35
Less than –0.5% and Greater than –1.0%		37		2.68
Less than –1.0% and Greater than –1.5%		4		0.29

		1,383		100.00	%


SUPPLEMENTAL INFORMATION			95

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSC Japan ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		1		0.07	%
Greater than 4.0% and Less than 4.5%		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%		47		3.40
Greater than 1.0% and Less than 1.5%		108		7.81
Greater than 0.5% and Less than 1.0%		259		18.73
Greater than 0.0% and Less than 0.5%		353		25.52
At NAV		11		0.80
Less than 0.0% and Greater than –0.5%		289		20.90
Less than –0.5% and Greater than –1.0%		160		11.57
Less than –1.0% and Greater than –1.5%		63		4.56
Less than –1.5% and Greater than –2.0%		36		2.60
Less than –2.0% and Greater than –2.5%		15		1.08
Less than –2.5% and Greater than –3.0%		5		0.36
Less than –3.0% and Greater than –3.5%		1		0.07
Less than –3.5% and Greater than –4.0%		1		0.07
Less than –4.0% and Greater than –4.5%		2		0.14
Less than –4.5% and Greater than –5.0%		1		0.07
Less than –5.0%		3		0.22

		1,383		100.00	%

iShares MSCI Mexico Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.0% and Less than 2.5%		4		0.29	%
Greater than 1.5% and Less than 2.0%		5		0.36
Greater than 1.0% and Less than 1.5%		19		1.37
Greater than 0.5% and Less than 1.0%		101		7.30
Greater than 0.0% and Less than 0.5%		508		36.73
At NAV		25		1.81
Less than 0.0% and Greater than –0.5%		562		40.65
Less than –0.5% and Greater than –1.0%		134		9.69
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

		1,383		100.00	%


96		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI South Korea Capped ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0% and Less than 4.5%		1		0.07	%
Greater than 3.5% and Less than 4.0%		1		0.07
Greater than 3.0% and Less than 3.5%		1		0.07
Greater than 2.5% and Less than 3.0%		3		0.22
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%		53		3.83
Greater than 0.5% and Less than 1.0%		188		13.59
Greater than 0.0% and Less than 0.5%		327		23.65
At NAV		10		0.72
Less than 0.0% and Greater than –0.5%		348		25.17
Less than –0.5% and Greater than –1.0%		243		17.57
Less than –1.0% and Greater than –1.5%		107		7.74
Less than –1.5% and Greater than –2.0%		38		2.75
Less than –2.0% and Greater than –2.5%		17		1.23
Less than –2.5% and Greater than –3.0%		10		0.72
Less than –3.0% and Greater than –3.5%		1		0.07

		1,383		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Canada ETF, iShares MSCI Japan ETF, iShares MSCI Mexico Capped ETF and iShares MSCI South Korea Capped ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to 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.


SUPPLEMENTAL INFORMATION			97

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to each Fund is included in the aggregate figures disclosed.

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 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, 2016 was USD 372.86 thousand. This figure is comprised of fixed remuneration of USD 146.68 thousand and variable remuneration of USD 226.18 thousand. There were a total of 325 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, 2016, to its senior management was USD 51.57 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 12.42 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, 2016 was USD 1.63 million. This figure is comprised of fixed remuneration of USD 642.93 thousand and variable remuneration of USD 991.42 thousand. There were a total of 325 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 the BFA’s financial year ending December 31, 2016, to its senior management was USD 226.03 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 54.46 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Mexico Capped ETF in respect of BFA’s financial year ending December 31, 2016 was USD 190.23 thousand. This figure is comprised of fixed


98		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

remuneration of USD 74.83 thousand and variable remuneration of USD 115.39 thousand. There were a total of 325 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI Mexico Capped ETF in respect of the BFA’s financial year ending December 31, 2016, to its senior management was USD 26.31 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 6.34 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI South Korea Capped ETF in respect of BFA’s financial year ending December 31, 2016 was USD 301.00 thousand. This figure is comprised of fixed remuneration of USD 118.41 thousand and variable remuneration of USD 182.59 thousand. There were a total of 325 beneficiaries of the remuneration described above.

The amount of the aggregate remuneration awarded by BFA, which has been attributed to the iShares MSCI South Korea Capped ETF in respect of the BFA’s financial year ending December 31, 2016, to its senior management was USD 41.63 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 10.03 thousand.


SUPPLEMENTAL INFORMATION			99

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. 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.


100		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


DIRECTOR AND OFFICER INFORMATION			101

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


102		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


DIRECTOR AND OFFICER INFORMATION			103

Notes:


104		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			105

Notes:


106		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-815-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Core MSCI Emerging Markets ETF | IEMG | NYSE Arca

^Ø

iShares MSCI BRIC ETF | BKF | NYSE Arca

^Ø

iShares MSCI Emerging Markets Asia ETF | EEMA | NASDAQ

^Ø

iShares MSCI Emerging Markets Small-Cap ETF | EEMS | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			14
Shareholder Expenses			14
Consolidated Schedules of Investments			15
iShares Core MSCI Emerging Markets ETF			15
iShares MSCI BRIC ETF			46
iShares MSCI Emerging Markets Asia ETF			52
iShares MSCI Emerging Markets Small-Cap ETF			62
Consolidated Financial Statements			81
Consolidated Financial Highlights			87
Notes to Consolidated Financial Statements			91
Report of Independent Registered Public Accounting Firm			105
Tax Information			106
Board Review and Approval of Investment Advisory Contract			107
Supplemental Information			120
Director and Officer Information			125

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® CORE MSCI EMERGING MARKETS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.45%		24.16%		23.41%		23.45%		24.16%		23.41%
Since Inception		4.00%		4.03%		3.99%		21.07%		21.25%		21.01%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/18/12. The first day of secondary market trading was 10/22/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period ^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,170.80	$	0.77	$	1,000.00	$	1,024.50	$	0.71		0.14%


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

The iShares Core MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large-, mid- and small-capitalization emerging market equities, as represented by the MSCI Emerging Markets Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 23.45%, net of fees, while the total return for the Index was 23.41%.

The robust performance of the Index for the reporting period was led by stocks in China, which represented about 27% of the Index on average. As a major global exporter, China capitalized on strengthening economic growth in many regions of the world. Chinese stocks also benefited from government stimulus efforts focused primarily on infrastructure and real estate expansion.

Taiwan and South Korea were also meaningful contributors to the Index’s return for the reporting period, as stocks in both countries gained due to strong growth in technology-related companies. Taiwan’s technology-heavy stock market rose to its highest level in 27 years, led by smartphone component suppliers. South Korea’s equity market reached an all-time high, despite tepid economic growth.

In contrast, stocks in Qatar and the Philippines detracted from the Index’s return for the reporting period. The stock market in Qatar declined amid the country’s growing diplomatic crisis with Saudi Arabia and other neighboring countries, while slowing economic growth and political controversies surrounding the Philippine president negatively affected the Philippine equity market.

From a sector perspective, the information technology sector contributed the most to the Index’s return for the reporting period, benefiting from growing demand for a range of technological devices. Sector gains were driven primarily by several large technology companies with diversified businesses and strong profit growth. The financials sector also contributed meaningfully to the Index’s return for the reporting period, led by banks and the insurance industry. Other notable contributors included the economically sensitive materials and consumer discretionary sectors.

Currency fluctuations had a positive impact on the Index’s return for the reporting period, particularly an approximately 5% gain in the Taiwanese new dollar and about a 4% gain in the Indian rupee relative to the U.S. dollar.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	25.80	%
Financials	22.01
Consumer Discretionary	10.99
Materials	7.96
Industrials	6.67
Consumer Staples	6.53
Energy	6.04
Telecommunication Services	4.64
Real Estate	3.62
Health Care	2.98
Utilities	2.76

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


China	28.05	%
South Korea	14.74
Taiwan	12.68
India	9.36
Brazil	6.98
South Africa	6.57
Mexico	3.49
Russia	2.92
Malaysia	2.36
Thailand	2.34

TOTAL	89.49	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI BRIC ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		28.15%		29.22%		28.85%		28.15%		29.22%		28.85%
5 Years		5.74%		5.82%		6.36%		32.19%		32.72%		36.08%
Since Inception		(0.97)%		(0.94)%		(0.51)%		(9.08)%		(8.82)%		(4.90)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 11/12/07. The first day of secondary market trading was 11/16/07.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,197.70	$	3.88	$	1,000.00	$	1,021.70	$	3.57		0.70%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI BRIC ETF

The iShares MSCI BRIC ETF (the “Fund”) seeks to track the investment of an index composed of Chinese equities that are available to international investors, and Brazilian, Russian, and Indian equities, as represented by the MSCI BRIC Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 28.15%, net of fees, while the total return for the Index was 28.85%.

The robust performance of the Index for the reporting period was led by stocks in China, which represented the largest country weight in the Index on average. As a major global exporter, China benefited from strengthening economic growth in many regions of the world. Government stimulus efforts focused primarily on infrastructure and real estate expansion, which drove property prices higher and supported a surge in industrial output, contributing to the advance in Chinese stocks. Brazilian stocks were meaningful contributors to the Index’s return as the Brazilian economy emerged from recession during the reporting period. A series of interest rate cuts by Brazil’s central bank, along with stronger consumer spending and growth in exports, helped bring about the recovery in the Brazilian economy.

Stocks in India also contributed significantly to the Index’s return despite a slowdown in the country’s economy during the reporting period. The stock market in India reached an all-time high amid government-driven economic reforms that are expected to stimulate economic activity, including a demonetization campaign and a new goods and services tax. Russia, the smallest country weight in the Index on average, was also a contributor to the Index’s performance as the country’s economy began to recover from a period of contraction.

From a sector perspective, the information technology sector contributed the most to the Index’s return for the reporting period, benefiting from growing demand for a range of technological devices. The financials sector also contributed meaningfully to the Index’s return, led by strong performance from the banking and insurance industries. Other notable contributors included the economically sensitive consumer discretionary and materials sectors.

Currency fluctuations had a positive impact on the Index’s return, particularly an approximately 11% gain in the Russian ruble, an approximately 4% gain in the Indian rupee, and an approximately 3% gain in the Brazilian real relative to the U.S. dollar.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	26.97	%
Financials	25.87
Energy	9.86
Consumer Discretionary	8.61
Materials	5.55
Consumer Staples	5.25
Telecommunication Services	4.68
Industrials	4.66
Real Estate	3.18
Utilities	2.77
Health Care	2.60

TOTAL	100.00	%

ALLOCATION BY COUNTRY

As of 8/31/17


Country		Percentage of Total Investments*


China	60.30	%
India	18.04
Brazil	14.92
Russia	6.74

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		24.80%		26.23%		25.50%		24.80%		26.23%		25.50%
5 Years		8.60%		8.55%		8.94%		51.07%		50.73%		53.47%
Since Inception		6.19%		6.25%		6.56%		39.70%		40.13%		42.40%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 2/8/12. The first day of secondary market trading was 2/9/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,197.90	$	2.77	$	1,000.00	$	1,022.70	$	2.55		0.50%

The iShares MSCI Emerging Markets Asia ETF (the “Fund”) seeks to track the investment results of an index composed of Asian emerging market equities, as represented by the MSCI Emerging Markets Asia Index (the “Index”) The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 24.80%, net of fees, while the total return for the Index was 25.50%.

China, which represented about 38% of the Index on average, contributed the most to the Index’s return for the reporting period. China’s economy expanded, reflecting solid fixed-asset investment, as well as improving industrial output and retail sales. The


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

country’s unemployment rate dipped to 3.95%, its lowest level since data collection began in the third quarter of 2002. Growth in manufacturing strengthened as output and new export orders rose.

South Korea’s stock market reached an all-time high during the reporting period, driven up by foreign demand for technology stocks. Exports surged, particularly for semiconductors and flat screens, which hit record highs. However, weak domestic demand limited economic growth and led the South Korean government to initiate a fiscal stimulus package aimed at creating public sector jobs and increasing social welfare subsidies.

Taiwan’s technology-heavy stock market rose to its highest level in 27 years. Rising global demand for smartphones and other electronic devices during the reporting period was a driver of expansion for Taiwan’s export-heavy economy. Taiwan’s main trading partners include China, Hong Kong, and the U.S., and improving conditions among those countries also benefited Taiwan’s export trade.

India contributed to the Index’s return for the reporting period, despite slowing economic growth amid a decline in consumer spending. Manufacturing declined into contraction in July 2017 and consumer prices rose, reflecting the implementation of a new goods and services tax, which became effective in July 2017.

From a sector perspective, information technology made the largest contribution to the Index’s performance for the reporting period. Sector strength reflected increased global demand for technology-related goods. Industries leading the sector’s gains included software and services, technology hardware and equipment, and semiconductors and semiconductor equipment.

The financials sector contributed significantly to the Index’s return for the reporting period. Within the sector, banks led the advance. The materials, consumer discretionary, and energy sectors all contributed meaningfully to the Index’s gain.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	37.13	%
Financials	21.11
Consumer Discretionary	9.04
Industrials	5.85
Materials	5.55
Energy	4.98
Consumer Staples	4.78
Telecommunication Services	4.58
Real Estate	2.45
Health Care	2.40
Utilities	2.13

TOTAL	100.00	%

ALLOCATION BY COUNTRY

As of 8/31/17


Country		Percentage of Total Investments*


China	40.34	%
South Korea	20.22
Taiwan	16.47
India	12.08
Indonesia	3.15
Malaysia	3.11
Thailand	2.98
Philippines	1.52
Pakistan	0.13

TOTAL	100.00	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.17%		16.96%		16.35%		16.17%		16.96%		16.35%
5 Years		5.37%		5.45%		5.86%		29.88%		30.41%		32.93%
Since Inception		2.30%		2.36%		2.98%		14.75%		15.15%		19.41%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 8/16/11. The first day of secondary market trading was 8/18/11.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,111.70	$	3.67	$	1,000.00	$	1,021.70	$	3.52		0.69%

The iShares MSCI Emerging Markets Small-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of small-capitalization emerging market equities, as represented by the MSCI Emerging Markets Small Cap Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 16.17%, net of fees, while the total return for the Index was 16.35%.

The robust performance of the Index for the reporting period was led by small-capitalization stocks in Taiwan, which benefited from strong growth in technology-related companies. Taiwan’s technology-heavy stock market rose to its highest level in 27 years, led by component suppliers that were helped by robust smartphone production.


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

Small-capitalization stocks in India also contributed significantly to the Index’s return despite a slowdown in the country’s economy during the reporting period. The stock market in India reached an all-time high amid government-driven economic reforms, including a demonetization campaign and a new goods and services tax, which are expected generally to stimulate economic activity.

Chinese small-capitalization stocks also contributed meaningfully to the Index’s return for the reporting period. As a major global exporter, China benefited from strengthening economic growth in many regions of the world. Government stimulus efforts focused primarily on infrastructure and real estate expansion, which drove property prices higher and supported a surge in industrial output, contributing to the advance in Chinese small-capitalization stocks.

On the downside, small-capitalization stocks in Indonesia, Pakistan, and the Philippines detracted from the Index’s return for the reporting period.

From a sector perspective, the information technology sector contributed the most to the Index’s return for the reporting period, benefiting from growing demand for a range of technological devices. Technology hardware and equipment companies led the advance in the information technology sector. The materials sector also contributed meaningfully to the Index’s return, led by a strong performance from the metals and mining and chemicals industries. Other notable contributors included the financials and industrials sectors.

Currency fluctuations had a positive impact on the Index’s return, particularly an approximately 5% gain in the Taiwanese new dollar, an approximately 4% gain in the Indian rupee, and an approximately 3% gain in the Brazilian real relative to the U.S. dollar.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	17.62	%
Consumer Discretionary	16.60
Industrials	14.62
Materials	11.41
Financials	9.23
Real Estate	9.12
Health Care	7.91
Consumer Staples	6.50
Utilities	3.85
Energy	2.11
Telecommunication Services	1.03

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


China	20.92	%
Taiwan	18.03
South Korea	15.66
India	13.62
Brazil	5.38
South Africa	5.19
Thailand	3.55
Malaysia	3.15
Mexico	2.97
Indonesia	2.30

TOTAL	90.77	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

About Fund Performance

Shareholder Expenses


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 96.21%

BRAZIL — 4.54%
AES Tiete Energia SA		1,215,800	$	5,467,613
Aliansce Shopping Centers SA^a		747,900		4,135,918
Alupar Investimento SA Units		1,163,024		6,912,091
Ambev SA		29,645,300		187,117,436
Arezzo Industria e Comercio SA		451,900		6,575,023
B2W Cia. Digital^a		1,365,027		8,021,532
B3 SA – Brasil Bolsa Balcao		13,068,578		91,873,999
Banco ABC Brasil SA^a		22,913		120,957
Banco Bradesco SA		5,980,066		61,293,562
Banco do Brasil SA		5,471,800		53,388,504
Banco Santander Brasil SA Units		2,718,000		24,221,812
BB Seguridade Participacoes SA		4,463,900		39,326,640
BR Malls Participacoes SA		5,176,565		22,374,830
BR Properties SA		814,100		2,843,509
BRF SA^a		2,822,600		38,143,607
CCR SA		7,594,200		42,141,058
Centrais Eletricas Brasileiras SA^a		1,511,600		8,464,902
Cia. de Saneamento Basico do Estado de Sao Paulo		2,208,400		22,565,132
Cia. de Saneamento de Minas Gerais-COPASA		513,500		7,035,543
Cia. Hering		304,700		2,614,661
Cia. Siderurgica Nacional SA^a		3,946,700		10,900,165
Cielo SA		7,680,496		54,751,712
Cosan SA Industria e Comercio		1,144,300		14,034,400
CPFL Energia SA		1,685,533		14,511,938
CVC Brasil Operadora e Agencia de Viagens SA		767,600		9,319,176
Cyrela Brazil Realty SA Empreendimentos e Participacoes		1,781,600		7,462,851
Duratex SA		2,282,629		6,238,971
EcoRodovias Infraestrutura e Logistica SA		1,737,100		5,907,283
EDP – Energias do Brasil SA		2,005,700		9,714,716
Embraer SA		4,310,900		24,565,602
Engie Brasil Energia SA		964,400		11,064,800
Equatorial Energia SA		1,303,376		25,318,165
Estacio Participacoes SA		1,793,400		14,711,072


Security	Shares		Value
EZ TEC Empreendimentos e Participacoes SA		541,223	$	3,832,398
Fibria Celulose SA		1,607,200		21,346,244
Fleury SA		966,200		9,734,316
Gafisa SA^a		1		4
Hypermarcas SA		2,154,600		20,207,614
Iguatemi Empresa de Shopping Centers SA		637,100		7,572,833
Iochpe Maxion SA		671,909		4,313,611
JBS SA		5,243,600		14,448,668
JSL SA^a		807,200		2,026,690
Klabin SA Units		3,782,400		20,580,237
Kroton Educacional SA		8,781,656		50,153,779
Light SA^a		613,300		4,015,312
Linx SA		996,900		5,807,554
Localiza Rent A Car SA		1,102,112		20,858,668
Lojas Americanas SA		1,413,810		6,488,397
Lojas Renner SA		4,578,960		44,531,512
M. Dias Branco SA		731,300		11,411,855
Magnesita Refratarios SA		376,260		4,723,504
Marfrig Global Foods SA^a		1,744,700		3,953,570
Minerva SA		1,040,700		3,830,128
MRV Engenharia e Participacoes SA		1,944,100		8,335,079
Multiplan Empreendimentos Imobiliarios SA		534,711		12,420,991
Multiplus SA		391,800		4,670,793
Natura Cosmeticos SA		1,147,900		10,762,304
Odontoprev SA		1,836,700		8,650,986
Petroleo Brasileiro SA^a		18,886,000		83,852,411
Porto Seguro SA		837,200		9,246,198
Qualicorp SA		1,482,900		16,424,563
Raia Drogasil SA		1,505,200		33,175,681
Rumo SA^a		5,356,900		17,587,051
Sao Martinho SA		1,233,100		6,838,690
SLC Agricola SA		552,300		3,896,792
Smiles SA		443,200		9,790,981
Sonae Sierra Brasil SA		334,200		2,612,888
Sul America SA		1,371,532		7,837,450
TIM Participacoes SA		5,443,100		19,513,473
TOTVS SA		776,200		7,662,214
Transmissora Alianca de Energia Eletrica SA Units		1,226,700		8,772,029
Ultrapar Participacoes SA		2,300,400		53,700,005
Vale SA		19,425,664		216,578,139
WEG SA		3,628,360		23,593,652

				1,668,898,444


CONSOLIDATED SCHEDULES OF INVESTMENTS			15

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
CHILE — 1.13%
AES Gener SA		19,469,425	$	6,812,626
Aguas Andinas SA Series A		15,968,932		10,199,239
Banco de Chile		167,284,270		24,367,007
Banco de Credito e Inversiones		271,558		17,610,392
Banco Santander Chile		420,984,958		30,781,393
CAP SA		516,879		6,067,842
Cencosud SA		8,863,342		26,644,748
Cia. Cervecerias Unidas SA		946,690		12,905,287
Cia. Sud Americana de Vapores SA^a		100,168,632		5,220,105
Colbun SA		52,523,287		12,652,760
Empresa Nacional de Telecomunicaciones SA		935,457		9,774,040
Empresas CMPC SA		7,607,011		19,855,165
Empresas COPEC SA		2,860,125		36,510,694
Enel Americas SA		185,275,060		39,968,398
Enel Chile SA		127,434,864		15,003,669
Enel Generacion Chile SA		21,280,659		18,039,324
Engie Energia Chile SA		3,310,842		6,962,652
Inversiones Aguas Metropolitanas SA		3,161,392		5,606,033
Inversiones La Construccion SA		373,579		5,378,149
Itau CorpBanca		919,092,151		8,782,300
LATAM Airlines Group SA		1,877,563		23,541,839
Parque Arauco SA		4,163,721		11,341,508
SACI Falabella		4,475,487		44,996,292
SalfaCorp SA		4,738,650		7,170,937
SONDA SA		3,303,282		6,107,844
Vina Concha y Toro SA		3,005,474		5,096,642

				417,396,885
CHINA — 27.94%
21Vianet Group Inc. ADR^a,b		584,132		3,031,645
361 Degrees International Ltd.		7,581,000		3,264,311
3SBio Inc.^a,b,c		6,927,500		9,524,101
51job Inc. ADR^a,b		214,921		12,766,307
58.com Inc. ADR^a,b		582,541		36,484,543
AAC Technologies Holdings Inc.^b		4,695,500		85,613,254
Agile Group Holdings Ltd.		11,666,500		13,982,300
Agricultural Bank of China Ltd. Class H		162,332,000		76,328,573
AGTech Holdings Ltd.^a,b		21,804,000		4,457,500
Air China Ltd. Class H		11,162,000		9,926,278
Ajisen (China) Holdings Ltd.		7,670,000		3,234,033


Security	Shares		Value
Alibaba Group Holding Ltd. ADR^a,b		7,202,913	$	1,237,028,279
Alibaba Health Information Technology Ltd.^a,b		22,316,000		10,407,452
Alibaba Pictures Group Ltd.^a,b		90,650,000		15,868,050
Aluminum Corp. of China Ltd. Class H^a,b		26,928,000		19,921,308
Anhui Conch Cement Co. Ltd. Class H		7,888,500		29,431,505
Anhui Expressway Co. Ltd. Class H		3,378,000		2,555,151
ANTA Sports Products Ltd.		6,997,000		27,535,805
APT Satellite Holdings Ltd.		5,529,500		2,755,406
Asia Cement China Holdings Corp.		5,205,000		1,729,136
Autohome Inc. ADR^a,b		353,934		22,747,338
AVIC International Holding HK Ltd.^a		52,016,000		2,492,318
AviChina Industry & Technology Co. Ltd. Class H^b		14,015,000		8,291,045
Baidu Inc. ADR^a		1,728,518		394,188,530
Bank of China Ltd. Class H		498,077,000		262,197,706
Bank of Communications Co. Ltd. Class H		53,735,000		41,057,606
Baozun Inc. ADR^a,b		200,530		5,452,411
Beijing Capital International Airport Co. Ltd. Class H		10,298,000		16,657,959
Beijing Capital Land Ltd. Class H^b		7,896,000		3,995,191
Beijing Enterprises Holdings Ltd.^b		3,246,500		18,127,254
Beijing Enterprises Medical & Health Group Ltd.^a		57,024,000		3,643,031
Beijing Enterprises Water Group Ltd.		30,872,000		26,231,408
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.		3,306,000		4,359,310
BEP International Holdings Ltd.		39,880,000		963,057
Bitauto Holdings Ltd. ADR^a		178,517		6,390,909
Bosideng International Holdings Ltd.		37,258,000		3,189,551
Brilliance China Automotive Holdings Ltd.		19,620,000		50,764,395
Byd Co. Ltd. Class H^b		3,994,500		23,783,925
BYD Electronic International Co. Ltd.^b		5,051,500		13,941,493


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
C C Land Holdings Ltd.^a,b		18,961,500	$	4,167,123
Carnival Group International Holdings Ltd.^a,b		48,947,000		4,002,591
CGN Power Co. Ltd. Class H^c		63,644,000		17,564,929
Chaowei Power Holdings Ltd.		7,167,000		3,708,750
Cheetah Mobile Inc. ADR^a,b		213,017		1,942,715
China Aerospace International Holdings Ltd.^b		31,586,000		3,955,086
China Agri-Industries Holdings Ltd.		15,835,200		7,405,252
China Aircraft Leasing Group Holdings Ltd.^b		3,086,500		3,324,521
China Animal Healthcare Ltd.^a,b,d		1,237,000		44,255
China Aoyuan Property Group Ltd.^b		16,722,000		7,072,149
China BlueChemical Ltd. Class H		14,036,000		4,322,108
China Cinda Asset Management Co. Ltd. Class H		54,710,000		20,342,058
China CITIC Bank Corp. Ltd. Class H		52,387,000		34,605,829
China Coal Energy Co. Ltd. Class H		13,333,000		6,712,113
China Communications Construction Co. Ltd. Class H		28,007,000		37,288,035
China Communications Services Corp. Ltd. Class H		17,088,000		9,257,469
China Conch Venture Holdings Ltd.^b		10,529,000		19,157,212
China Construction Bank Corp. Class H		532,020,000		466,323,454
China Datang Corp. Renewable Power Co. Ltd. Class H		24,583,000		2,732,683
China Dongxiang Group Co. Ltd.^b		28,788,000		5,149,614
China Electronics Corp. Holdings Co. Ltd.^b		9,990,000		1,416,849
China Everbright Bank Co. Ltd. Class H		16,612,000		7,980,773
China Everbright International Ltd.^b		16,036,000		21,186,137
China Everbright Ltd.		5,948,000		13,588,567
China Everbright Water Ltd.^b		7,760,300		2,685,818
China Evergrande Group^a,b		23,177,000		70,036,357


Security	Shares		Value
China Fiber Optic Network System Group Ltd.^a,d		10,394,800	$	743,771
China First Capital Group Ltd.^a		10,698,000		4,278,407
China Foods Ltd.		8,498,000		4,516,950
China Galaxy Securities Co. Ltd. Class H		20,080,000		18,190,521
China Gas Holdings Ltd.		11,762,000		29,696,366
China Huarong Asset Management Co. Ltd. Class H^c		43,392,000		18,517,882
China Huishan Dairy Holdings Co. Ltd.^b,d		24,768,000		32
China Huiyuan Juice Group Ltd.^a,b		8,340,500		2,578,948
China Innovationpay Group Ltd.^a,b		45,128,000		2,306,435
China Jinmao Holdings Group Ltd.		26,134,000		11,620,380
China Lesso Group Holdings Ltd.		8,776,000		6,301,851
China Life Insurance Co. Ltd. Class H		46,993,000		150,710,003
China Lilang Ltd.		5,398,000		4,241,732
China Logistics Property Holdings Co. Ltd.^a,b		5,772,000		1,969,123
China Longyuan Power Group Corp. Ltd. Class H		20,160,000		15,094,660
China Lumena New Materials Corp.^a,b,d		2,584,000		3
China Maple Leaf Educational Systems Ltd.^b		4,844,000		4,109,674
China Medical System Holdings Ltd.^b		8,804,000		16,198,609
China Mengniu Dairy Co. Ltd.		17,382,000		40,598,606
China Merchants Bank Co. Ltd. Class H		24,382,964		91,905,965
China Merchants Land Ltd.^b		16,818,000		3,373,721
China Merchants Port Holdings Co. Ltd.		8,268,000		27,044,292
China Metal Recycling Holdings Ltd.^a,d		62,400		—
China Minsheng Banking Corp. Ltd. Class H		33,936,100		33,864,771
China Mobile Ltd.		38,770,500		411,163,618
China National Building Material Co. Ltd. Class H		18,204,000		11,443,717


CONSOLIDATED SCHEDULES OF INVESTMENTS			17

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
China National Materials Co. Ltd. Class H		9,424,000	$	4,118,097
China Ocean Industry Group Ltd.^a,b		128,580,000		1,051,450
China Oil and Gas Group Ltd.^b		50,068,000		3,518,505
China Oilfield Services Ltd. Class H		11,946,000		9,799,247
China Overseas Grand Oceans Group Ltd.		8,601,000		4,681,594
China Overseas Land & Investment Ltd.		24,060,000		84,079,116
China Pacific Insurance Group Co. Ltd. Class H		16,352,600		76,994,462
China Petroleum & Chemical Corp. Class H		160,120,200		122,548,537
China Power Clean Energy Development Co. Ltd.^b		4,036,500		2,253,832
China Power International Development Ltd.		19,934,000		6,800,501
China Railway Construction Corp. Ltd. Class H		12,360,500		16,203,864
China Railway Group Ltd. Class H		24,928,000		19,938,705
China Regenerative Medicine International Ltd.^a,b		101,810,000		2,575,674
China Resources Beer Holdings Co. Ltd.		10,660,000		26,750,621
China Resources Gas Group Ltd.^b		5,860,000		20,665,308
China Resources Land Ltd.		17,453,777		54,525,979
China Resources Phoenix Healthcare Holdings Co. Ltd.^b		4,180,000		5,282,114
China Resources Power Holdings Co. Ltd.		12,010,000		22,035,993
China SCE Property Holdings Ltd.		13,441,200		6,869,628
China Shenhua Energy Co. Ltd. Class H		21,417,500		55,141,555
China Shineway Pharmaceutical Group Ltd.		4,285,000		3,909,167
China Singyes Solar Technologies Holdings Ltd.^b		6,901,000		2,230,836
China South City Holdings Ltd.^b		20,982,000		4,316,263
China Southern Airlines Co. Ltd. Class H		11,684,000		9,121,535


Security	Shares		Value
China State Construction International Holdings Ltd.		11,728,000	$	16,993,084
China Suntien Green Energy Corp. Ltd. Class H		16,423,000		3,567,275
China Taiping Insurance Holdings Co. Ltd.		10,470,108		31,772,396
China Telecom Corp. Ltd. Class H		84,264,000		43,281,600
China Traditional Chinese Medicine Holdings Co. Ltd.^b		14,032,000		8,498,320
China Travel International Investment Hong Kong Ltd.^b		17,870,000		5,594,043
China Unicom Hong Kong Ltd.^a		37,966,000		55,301,241
China Vanke Co. Ltd. Class H		7,749,887		23,220,598
China Water Affairs Group Ltd.		8,064,000		4,657,192
China ZhengTong Auto Services Holdings Ltd.		6,600,000		6,240,377
Chinasoft International Ltd.		14,954,000		7,948,513
Chong Sing Holdings FinTech Group Ltd.^a,b		103,676,000		14,041,687
Chongqing Changan Automobile Co. Ltd. Class B		5,270,567		6,895,924
Chongqing Rural Commercial Bank Co. Ltd. Class H		17,159,000		11,948,783
CIFI Holdings Group Co. Ltd.		22,198,000		12,479,630
CIMC Enric Holdings Ltd.^a,b		6,108,000		3,652,415
CITIC Ltd.		35,798,000		54,979,200
CITIC Resources Holdings Ltd.^b		24,362,000		2,801,500
CITIC Securities Co. Ltd. Class H		13,720,000		30,432,597
CNOOC Ltd.		112,930,000		135,058,015
Colour Life Services Group Co. Ltd.^b		4,751,000		3,126,277
Comba Telecom Systems Holdings Ltd.^b		19,103,524		2,880,253
Concord New Energy Group Ltd.		75,950,000		3,202,410
Coolpad Group Ltd.^a,b,d		25,508,000		2,118,483
COSCO SHIPPING International Hong Kong Co. Ltd.		7,772,000		3,286,972
COSCO SHIPPING Ports Ltd.		11,056,000		13,066,972
Country Garden Holdings Co. Ltd.^b		36,427,733		48,406,164
CPMC Holdings Ltd.		4,779,000		2,949,303


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
CRRC Corp. Ltd. Class H		24,553,750	$	22,149,183
CSPC Pharmaceutical Group Ltd.		27,614,000		43,115,727
CT Environmental Group Ltd.^b		21,304,000		3,021,477
Ctrip.com International Ltd. ADR^a,b		2,487,743		127,994,377
Dah Chong Hong Holdings Ltd.^b		8,388,000		4,169,109
Dawnrays Pharmaceutical Holdings Ltd.		5,416,000		3,224,778
Dazhong Transportation Group Co. Ltd. Class B		5,846,950		3,999,314
Digital China Holdings Ltd.^a,b		6,846,000		4,128,707
Dongfeng Motor Group Co. Ltd. Class H		16,922,000		21,967,497
Dongjiang Environmental Co. Ltd. Class H		2,007,700		2,770,497
Eastern Communications Co. Ltd. Class B		2,927,600		1,885,374
ENN Energy Holdings Ltd.		4,991,000		32,108,664
Fang Holdings Ltd. ADR^a,b		1,783,283		6,598,147
Fantasia Holdings Group Co. Ltd.		26,704,500		3,616,808
Far East Horizon Ltd.^b		14,143,000		12,920,603
FDG Electric Vehicles Ltd.^a,b		118,820,000		4,630,465
First Tractor Co. Ltd. Class H		5,930,000		2,765,558
Fosun International Ltd.^b		16,049,000		27,847,290
Fu Shou Yuan International Group Ltd.		8,270,000		5,536,968
Fufeng Group Ltd.^b		12,025,400		7,636,443
Fullshare Holdings Ltd.^b		41,985,000		16,737,244
Fuyao Glass Industry Group Co. Ltd. Class H^c		3,389,600		10,805,732
GCL-Poly Energy Holdings Ltd.^a,b		86,069,000		9,677,532
Geely Automobile Holdings Ltd.		32,286,000		79,369,655
GF Securities Co. Ltd. Class H		8,071,600		17,223,099
Glorious Property Holdings Ltd.^a,b		22,864,000		2,541,597
Golden Eagle Retail Group Ltd.^b		4,913,000		6,277,431
GOME Electrical Appliances Holding Ltd.^b		78,884,000		8,264,907
Great Wall Motor Co. Ltd. Class H^b		19,610,500		24,605,678
Greatview Aseptic Packaging Co. Ltd.^b		10,745,000		6,589,961


Security	Shares		Value
Greentown China Holdings Ltd.^b		5,120,500	$	6,215,430
Guangdong Investment Ltd.		18,266,000		26,979,660
Guangdong Land Holdings Ltd.^a		8,154,000		1,802,403
Guangzhou Automobile Group Co. Ltd. Class H		13,748,000		27,122,018
Guangzhou R&F Properties Co. Ltd. Class H		6,432,000		15,023,026
Haier Electronics Group Co. Ltd.		8,104,000		21,537,632
Haitian International Holdings Ltd.		4,642,000		13,938,248
Haitong Securities Co. Ltd. Class H		19,562,000		32,793,085
Hanergy Thin Film Power Group Ltd.^a,d		8,046		—
Hangzhou Steam Turbine Co. Ltd. Class B^a		2,494,100		2,616,328
Harbin Electric Co. Ltd. Class H		6,262,000		3,200,429
HC International Inc.^b		3,802,000		3,453,957
Health and Happiness H&H International Holdings Ltd.^a,b		1,420,722		5,082,792
Hengan International Group Co. Ltd.		4,615,500		38,568,406
Hengdeli Holdings Ltd.		8,670,800		498,548
Hi Sun Technology (China) Ltd.^a		21,105,000		4,880,891
Hisense Kelon Electrical Holdings Co. Ltd. Class H		2,856,000		3,386,424
Hopson Development Holdings Ltd.^b		5,090,000		4,812,655
Hua Han Health Industry Holdings Ltd. Class H^a,b,d		22,424,288		1,203,381
Hua Hong Semiconductor Ltd.^c		3,157,000		4,195,108
Huabao International Holdings Ltd.		7,983,000		4,875,613
Huadian Fuxin Energy Corp. Ltd. Class H		17,192,000		3,800,211
Huaneng Power International Inc. Class H		25,420,000		16,629,557
Huaneng Renewables Corp. Ltd. Class H		31,346,000		9,612,327
Huangshi Dongbei Electrical Appliance Co. Ltd. Class B		1,408,400		2,284,425
Huatai Securities Co. Ltd. Class H^c		10,084,600		22,446,158
IGG Inc.^b		6,232,000		9,762,321


CONSOLIDATED SCHEDULES OF INVESTMENTS			19

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
iKang Healthcare Group Inc. ADR^a,b		394,827	$	5,736,836
IMAX China Holding Inc.^a,b,c		587,300		1,353,729
Industrial & Commercial Bank of China Ltd. Class H		464,338,000		347,669,848
Inner Mongolia Yitai Coal Co. Ltd. Class B		7,913,316		10,303,137
JA Solar Holdings Co. Ltd. ADR^a,b		442,225		2,954,063
JD.com Inc. ADR^a,b		4,193,192		175,736,677
Jiangsu Expressway Co. Ltd. Class H		8,606,000		13,195,255
Jiangxi Copper Co. Ltd. Class H		8,527,000		14,795,554
JinkoSolar Holding Co. Ltd.^a,b		184,379		5,131,268
Ju Teng International Holdings Ltd.^b		8,322,000		3,296,284
Jumei International Holding Ltd. ADR^a,b		895,679		3,036,352
K Wah International Holdings Ltd.		10,322,000		5,974,441
Kaisa Group Holdings Ltd.^a,b		14,354,000		6,730,916
Kama Co. Ltd.^a		2,457,500		2,533,682
Kingboard Chemical Holdings Ltd.		4,610,700		25,155,325
Kingboard Laminates Holdings Ltd.		6,684,000		11,341,479
Kingdee International Software Group Co. Ltd.^a,b		14,646,000		6,231,584
Kingsoft Corp. Ltd.^b		5,038,000		11,947,343
Konka Group Co. Ltd. Class B^a		5,707,900		2,297,323
KuangChi Science Ltd.^a,b		12,440,000		4,212,127
Kunlun Energy Co. Ltd.		21,284,000		20,613,780
KWG Property Holding Ltd.		8,899,500		8,096,192
Lao Feng Xiang Co. Ltd. Class B		1,486,417		5,734,597
Launch Tech Co. Ltd.		1,807,500		2,120,099
Lee & Man Paper Manufacturing Ltd.		10,918,000		12,736,469
Lenovo Group Ltd.^b		44,636,000		24,409,800
Leyou Technologies Holdings Ltd.^a,b		19,415,000		4,266,788
Li Ning Co. Ltd.^a		11,847,500		8,779,907
Lianhua Supermarket Holdings Co. Ltd. Class H^a		4,724,000		1,768,531
Lifetech Scientific Corp.^a,b		17,600,000		3,890,397


Security	Shares		Value
Livzon Pharmaceutical Group Inc. Class H		941,051	$	5,122,217
Longfor Properties Co. Ltd.		9,972,500		23,955,050
Lonking Holdings Ltd.		17,146,000		6,813,314
Luthai Textile Co. Ltd. Class B		2,503,592		2,805,423
Luye Pharma Group Ltd.^b		9,466,500		4,789,827
MIE Holdings Corp.^a		15,864,000		1,418,881
Minth Group Ltd.		4,600,000		21,188,406
MMG Ltd.^a,b		15,683,999		7,655,179
Momo Inc. ADR^a		690,694		26,612,440
NetDragon Websoft Holdings Ltd.^b		1,431,500		5,267,676
NetEase Inc. ADR		506,103		139,603,451
New China Life Insurance Co. Ltd. Class H		5,034,700		32,228,976
New Oriental Education & Technology Group Inc. ADR		862,548		70,513,299
Nexteer Automotive Group Ltd.		6,093,000		10,120,680
Nine Dragons Paper (Holdings) Ltd.		10,956,000		18,282,281
Noah Holdings Ltd. ADR^a,b		223,943		6,559,290
North Mining Shares Co. Ltd.^a,b		118,200,000		2,084,163
NQ Mobile Inc. ADR^a,b		816,304		2,718,292
Panda Green Energy Group Ltd.^a,b		34,420,852		4,485,976
Parkson Retail Group Ltd.^b		20,881,500		3,175,001
PAX Global Technology Ltd.^b		6,833,000		3,780,372
People’s Insurance Co. Group of China Ltd. (The) Class H		41,504,000		19,568,228
PetroChina Co. Ltd. Class H		131,744,000		84,165,873
Phoenix Satellite Television Holdings Ltd.^b		21,670,000		3,156,450
PICC Property & Casualty Co. Ltd. Class H		28,633,360		53,780,500
Ping An Insurance Group Co. of China Ltd. Class H		32,882,500		261,120,607
Poly Property Group Co. Ltd.^a		14,415,000		7,551,508
Pou Sheng International Holdings Ltd.^b		18,064,000		3,346,703
Renhe Commercial Holdings Co. Ltd.^a,b		130,594,000		3,036,895
Renren Inc. ADR^a		240,864		1,816,115
Road King Infrastructure Ltd.		3,856,000		5,123,958
Sany Heavy Equipment International Holdings Co. Ltd.^a,b		14,889,000		2,587,257


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Semiconductor Manufacturing International Corp.^a,b		18,346,200	$	17,252,782
Shandong Airlines Co. Ltd. Class B		1,489,192		2,540,196
Shandong Chenming Paper Holdings Ltd. Class H		3,226,000		4,707,233
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		12,228,000		9,764,964
Shang Gong Group Co. Ltd. Class B^a		3,244,600		3,299,758
Shanghai Baosight Software Co. Ltd. Class B		2,030,100		2,959,886
Shanghai Chlor-Alkali Chemical Co. Ltd. Class B^a		3,988,000		3,006,952
Shanghai Electric Group Co. Ltd. Class H^a,b		17,632,000		7,997,700
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		3,199,500		12,018,897
Shanghai Greencourt Investment Group Co. Ltd. Class B^a		4,622,500		2,620,957
Shanghai Haixin Group Co. Class B		3,900,000		2,667,600
Shanghai Industrial Holdings Ltd.		3,252,000		9,889,235
Shanghai Industrial Urban Development Group Ltd.^b		17,126,000		3,741,857
Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H		10,590,000		3,017,422
Shanghai Jinjiang International Industrial Investment Co. Ltd. Class B		1,537,900		2,105,385
Shanghai Jinjiang International Travel Co. Ltd. Class B		794,200		2,349,244
Shanghai Lingyun Industries Development Co. Ltd. Class B^a		2,241,699		2,273,083
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		6,086,560		9,817,621
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		4,624,600		11,380,613


Security	Shares		Value
Shanghai Shibei Hi-Tech Co. Ltd. Class B		4,131,800	$	2,367,521
Shenzhen Expressway Co. Ltd. Class H		5,704,000		5,568,113
Shenzhen International Holdings Ltd.		6,444,750		11,841,321
Shenzhen Investment Ltd.		20,846,000		9,508,809
Shenzhou International Group Holdings Ltd.		3,659,000		29,313,329
Shimao Property Holdings Ltd.		7,751,500		16,005,244
Shougang Concord International Enterprises Co. Ltd.^a		91,202,000		3,379,384
Shougang Fushan Resources Group Ltd.		19,972,000		4,516,791
Shui On Land Ltd.		25,234,166		5,900,315
Sihuan Pharmaceutical Holdings Group Ltd.		28,658,000		11,021,674
SINA Corp./China^a		365,937		37,263,365
Sino Biopharmaceutical Ltd.		28,892,000		25,361,184
Sino Oil And Gas Holdings Ltd.^a,b		100,265,000		2,049,767
Sino-Ocean Group Holding Ltd.		20,171,000		13,917,344
Sinofert Holdings Ltd.^a,b		23,808,000		3,285,352
Sinolink Worldwide Holdings Ltd.^a		23,582,000		3,344,559
Sinopec Engineering Group Co. Ltd. Class H		8,819,000		7,955,349
Sinopec Kantons Holdings Ltd.^b		8,254,000		5,114,950
Sinopec Shanghai Petrochemical Co. Ltd. Class H		22,887,000		14,270,654
Sinopharm Group Co. Ltd. Class H		7,454,800		33,671,355
Sinosoft Technology Group Ltd.^b		7,525,600		2,307,744
Sinotrans Ltd. Class H		14,632,000		8,263,445
Sinotrans Shipping Ltd.^b		14,787,000		4,610,044
Skyworth Digital Holdings Ltd.^b		13,364,000		6,198,381
SMI Holdings Group Ltd.^b		10,379,999		5,159,197
SOHO China Ltd.		15,210,000		8,861,949
Sohu.com Inc.^a		197,190		10,518,115
SSY Group Ltd.		16,482,411		7,623,677
Sun Art Retail Group Ltd.		16,343,500		15,056,205
Sunac China Holdings Ltd.^b		13,600,000		40,835,883


CONSOLIDATED SCHEDULES OF INVESTMENTS			21

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Sunny Optical Technology Group Co. Ltd.		4,574,000	$	65,572,871
Superb Summit International Group Ltd.^a,b,d		6,035,000		46,266
TAL Education Group Class A ADR		1,800,696		54,795,179
Tarena International Inc. ADR		293,187		4,139,800
TCL Multimedia Technology Holdings Ltd.^a,b		5,470,000		2,627,909
Technovator International Ltd.^a,b		8,710,000		2,637,556
Tencent Holdings Ltd.		36,022,100		1,514,258,815
Tian Ge Interactive Holdings Ltd.^b,c		3,986,000		2,750,212
Tianjin Capital Environmental Protection Group Co. Ltd. Class H		4,140,000		2,623,718
Tianjin Development Holdings Ltd.		6,932,000		3,728,858
Tianjin Port Development Holdings Ltd.		25,354,000		4,178,990
Tianneng Power International Ltd.^b		5,436,000		4,653,604
Tibet Water Resources Ltd.^a,b		15,172,000		5,951,362
Tingyi Cayman Islands Holding Corp.^b		13,052,000		17,377,207
Tong Ren Tang Technologies Co. Ltd. Class H^b		4,235,000		5,952,252
Tongda Group Holdings Ltd.^b		21,230,000		5,886,334
Towngas China Co. Ltd.^b		8,164,000		5,528,586
TravelSky Technology Ltd. Class H		6,048,000		16,537,153
Tsingtao Brewery Co. Ltd. Class H		2,426,000		10,058,673
Tuniu Corp. ADR^a,b		288,511		2,163,832
Vinda International Holdings Ltd.		1,988,000		3,530,745
Vipshop Holdings Ltd. ADR^a		2,646,033		24,634,567
Viva China Holdings Ltd.^a		23,312,000		2,025,460
Want Want China Holdings Ltd.^b		32,073,000		21,227,778
Wasion Group Holdings Ltd.^b		4,284,000		1,828,231
Weibo Corp. ADR^a,b		299,134		30,242,447
Weichai Power Co. Ltd. Class H		13,148,000		13,540,351
Weiqiao Textile Co. Class H^a		2,907,500		1,545,426
Welling Holding Ltd.		15,424,000		2,798,469
West China Cement Ltd.^a		20,980,000		3,029,138


Security	Shares		Value
Wisdom Sports Group^a,b		9,365,000	$	1,232,481
Xiamen International Port Co. Ltd. Class H		15,386,000		3,204,413
Xingda International Holdings Ltd.		9,222,000		3,534,936
Xinhua Winshare Publishing and Media Co. Ltd. Class H		3,243,000		2,660,218
Xinyi Solar Holdings Ltd.^b		21,400,800		7,273,557
XTEP International Holdings Ltd.^b		8,182,000		2,906,293
Yanchang Petroleum International Ltd.^a		16,860,000		320,981
Yanzhou Coal Mining Co. Ltd. Class H		11,998,000		12,049,432
YuanShengTai Dairy Farm Ltd.^a		41,696,000		1,917,927
Yuexiu Property Co. Ltd.		48,022,880		8,835,800
Yuexiu REIT^b		9,874,000		6,497,339
Yuexiu Transport Infrastructure Ltd.^b		7,478,000		5,732,867
Yum China Holdings Inc.^a		2,480,656		87,715,996
Yuzhou Properties Co. Ltd.		13,510,400		8,683,031
YY Inc. ADR^a		216,100		16,146,992
Zhaojin Mining Industry Co. Ltd. Class H^b		7,404,500		6,433,389
Zhejiang Expressway Co. Ltd. Class H		9,474,000		11,850,898
Zhongsheng Group Holdings Ltd.^b		4,336,500		9,419,405
Zhuzhou CRRC Times Electric Co. Ltd. Class H		3,461,700		18,112,505
Zijin Mining Group Co. Ltd. Class H		35,888,000		13,160,317
ZTE Corp. Class H^a		4,686,640		12,784,821

				10,276,808,383
COLOMBIA — 0.28%
Almacenes Exito SA		1,112,926		5,805,003
Bancolombia SA		1,158,730		12,984,975
Cementos Argos SA		2,963,421		12,035,648
Corp. Financiera Colombiana SA		816,139		7,976,270
Ecopetrol SA		31,505,862		14,657,397
Grupo Argos SA/Colombia		1,771,820		12,623,216
Grupo de Inversiones Suramericana SA		1,678,006		23,647,571


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Interconexion Electrica SA ESP		2,553,765	$	11,585,968

				101,316,048
CZECH REPUBLIC — 0.18%
CEZ AS		1,017,143		19,260,740
Komercni Banka AS		516,097		22,705,487
Moneta Money Bank AS^c		3,681,159		12,885,715
Pegas Nonwovens SA		110,643		5,066,634
Philip Morris CR AS		7,565		5,356,788

				65,275,364
EGYPT — 0.14%
Commercial International Bank Egypt SAE		5,737,162		27,370,096
Egyptian Financial Group-Hermes Holding Co.		4,853,282		5,685,980
Ezz Steel^a		1,889,873		1,796,771
Global Telecom Holding SAE^a		26,829,111		10,695,184
Heliopolis Housing		656,450		920,368
Medinet Nasr Housing		1,742,250		962,874
Oriental Weavers		336,397		348,207
Six of October Development & Investment^a		1,723,988		1,337,409
Telecom Egypt Co.		1,362,589		985,292

				50,102,181
GREECE — 0.42%
Alpha Bank AE^a,b		8,825,394		22,349,039
Athens Water Supply & Sewage Co. SA		247,025		1,776,812
Eurobank Ergasias SA^a,b		11,928,467		12,862,846
FF Group^a,b		241,124		5,991,449
Hellenic Exchanges-Athens Stock Exchange SA		627,642		3,813,099
Hellenic Telecommunications Organization SA		1,616,240		20,560,552
HOLDING Co. ADMIE IPTO SA^a		846,965		2,094,469
JUMBO SA		728,321		12,122,606
Motor Oil Hellas Corinth Refineries SA		465,419		10,458,058
Mytilineos Holdings SA^a		880,608		8,993,338
National Bank of Greece SA^a,b		34,574,712		14,017,097
OPAP SA		1,532,601		17,109,599
Piraeus Bank SA^a		1,755,806		9,832,016
Piraeus Port Authority SA		44,848		832,322
Public Power Corp. SA^a		965,319		2,582,251


Security	Shares		Value
Titan Cement Co. SA		308,601	$	8,750,459

				154,146,012
HUNGARY — 0.31%
Magyar Telekom Telecommunications PLC		2,478,790		4,706,612
MOL Hungarian Oil & Gas PLC		303,735		28,150,453
OTP Bank PLC		1,490,171		60,561,043
Richter Gedeon Nyrt		829,578		21,571,358

				114,989,466
INDIA — 9.32%
ACC Ltd.		407,404		11,473,050
Adani Enterprises Ltd.		2,190,107		4,541,150
Adani Ports & Special Economic Zone Ltd.		4,805,285		29,537,737
Adani Power Ltd.^a		8,666,644		4,521,344
Adani Transmissions Ltd.^a		2,412,974		4,795,657
Aditya Birla Capital Ltd.^a		3,177,949		9,223,489
AIA Engineering Ltd.		323,466		6,634,149
Ajanta Pharma Ltd.		236,234		4,412,140
Amara Raja Batteries Ltd.		326,656		3,976,771
Ambuja Cements Ltd.		4,405,252		19,319,331
Apollo Hospitals Enterprise Ltd.^a		528,176		8,944,735
Apollo Tyres Ltd.		1,936,503		7,676,187
Arvind Ltd.		1,012,833		5,873,287
Ashok Leyland Ltd.		8,430,587		14,124,337
Asian Paints Ltd.		1,916,059		35,024,904
Aurobindo Pharma Ltd.		1,886,865		21,406,681
Axis Bank Ltd.		10,653,457		83,384,482
Bajaj Auto Ltd.		556,708		24,510,349
Bajaj Finance Ltd.		1,118,148		31,167,602
Bajaj Finserv Ltd.		283,544		24,407,815
Balkrishna Industries Ltd.		334,086		8,195,073
Bata India Ltd.		566,621		6,034,828
Bayer CropScience Ltd./India		99,116		6,198,176
Bharat Financial Inclusion Ltd.^a		261,184		3,592,767
Bharat Forge Ltd.		694,360		12,250,041
Bharat Heavy Electricals Ltd.		3,878,834		7,821,227
Bharat Petroleum Corp. Ltd.		5,081,542		42,050,577
Bharti Airtel Ltd.		7,733,025		51,737,976
Bharti Infratel Ltd.		3,644,768		21,392,103
Biocon Ltd.		1,222,802		6,446,245
Blue Dart Express Ltd.		64,336		4,282,223
Bosch Ltd.		51,267		17,632,776
Cadila Healthcare Ltd.		1,468,926		11,489,224
Canara Bank Ltd.		990,834		5,266,003


CONSOLIDATED SCHEDULES OF INVESTMENTS			23

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Care Ratings Ltd.		219,863	$	5,098,968
Ceat Ltd.		166,988		4,455,626
Century Textiles & Industries Ltd.		276,843		5,369,372
CESC Ltd.		576,395		9,158,122
CG Power and Industrial Solutions Ltd.^a		3,623,515		4,554,458
Cipla Ltd.		2,397,258		21,446,461
Coal India Ltd.		4,755,084		17,658,739
Container Corp. of India Ltd.		383,272		7,913,505
CRISIL Ltd.		192,657		5,702,144
Crompton Greaves Consumer Electricals Ltd.		2,752,232		9,435,117
Dabur India Ltd.		3,883,669		19,143,061
DCB Bank Ltd.		1,878,843		5,399,088
Dewan Housing Finance Corp. Ltd.		1,173,484		9,273,876
Dish TV India Ltd.^a		3,544,872		4,408,476
Divi’s Laboratories Ltd.^a		640,271		6,974,986
Dr. Reddy’s Laboratories Ltd.		737,831		23,325,045
Edelweiss Financial Services Ltd.		1,191,232		4,607,374
Eicher Motors Ltd.		87,438		43,018,313
Exide Industries Ltd.		1,990,013		6,127,906
Federal Bank Ltd.		9,944,267		16,854,756
Finolex Cables Ltd.		847,225		7,128,214
GAIL (India) Ltd.		3,355,683		19,858,116
Gateway Distriparks Ltd.		974,243		3,371,112
GE T&D India Ltd.		784,051		5,011,451
Glenmark Pharmaceuticals Ltd.		1,047,665		9,982,327
GMR Infrastructure Ltd.^a		18,387,050		4,947,221
Godrej Consumer Products Ltd.		1,655,624		24,067,912
Godrej Industries Ltd.		695,211		6,659,431
Grasim Industries Ltd.		2,357,030		44,068,317
GRUH Finance Ltd.		1,063,436		8,674,507
Gujarat Pipavav Port Ltd.		1,520,932		3,041,805
Havells India Ltd.		1,842,724		14,077,070
HCL Technologies Ltd.		3,587,025		48,553,649
Hero Motocorp Ltd.		336,082		21,003,597
Hexaware Technologies Ltd.		1,017,061		4,346,588
Hindalco Industries Ltd.		7,906,636		29,436,724
Hindustan Petroleum Corp. Ltd.		4,162,747		31,800,356
Hindustan Unilever Ltd.		4,213,064		80,387,709
Housing Development & Infrastructure Ltd.^a		3,020,193		2,933,912


Security	Shares		Value
Housing Development Finance Corp. Ltd.		9,564,897	$	265,866,768
ICICI Bank Ltd.		15,022,008		70,038,669
Idea Cellular Ltd.		9,437,410		13,382,628
IDFC Bank Ltd.		9,698,323		8,321,355
IFCI Ltd.^a		7,329,156		2,740,139
India Cements Ltd. (The)		1,540,125		4,288,414
Indiabulls Housing Finance Ltd.		2,072,923		39,414,762
Indian Hotels Co. Ltd. (The)		3,311,055		6,155,826
Indian Oil Corp. Ltd.		4,013,033		28,544,238
Infosys Ltd.		11,581,378		165,759,478
IRB Infrastructure Developers Ltd.		1,482,259		4,964,340
ITC Ltd.		21,744,361		96,006,662
Jain Irrigation Systems Ltd.		3,068,073		4,729,803
Jaiprakash Associates Ltd.^a		11,897,427		4,448,071
Jammu & Kashmir Bank Ltd. (The)		2,155,974		2,672,782
Jindal Steel & Power Ltd.^a		2,238,255		4,800,293
JSW Steel Ltd.		5,898,076		23,471,900
Jubilant Foodworks Ltd.		286,614		6,252,255
Jubilant Life Sciences Ltd.		538,192		5,915,155
Just Dial Ltd.^a		264,055		1,616,311
Kajaria Ceramics Ltd.		615,297		6,755,381
Karur Vysya Bank Ltd. (The)		2,833,303		6,306,940
KPIT Technologies Ltd.		1,975,674		3,602,038
L&T Finance Holdings Ltd.		3,610,524		11,312,848
Larsen & Toubro Ltd.		3,043,824		54,104,491
LIC Housing Finance Ltd.		2,110,510		22,246,998
Lupin Ltd.		1,452,317		22,251,765
Mahindra & Mahindra Financial Services Ltd.		1,968,750		13,165,806
Mahindra & Mahindra Ltd.		2,385,845		50,190,405
Manappuram Finance Ltd.		3,462,510		5,378,499
Marico Ltd.		3,246,990		16,022,573
Maruti Suzuki India Ltd.		693,101		83,488,170
Max Financial Services Ltd.		893,617		8,408,992
Max India Ltd.^a		1,196,511		2,615,708
MindTree Ltd.		766,636		5,528,546
Motherson Sumi Systems Ltd.		4,170,716		20,101,251
Mphasis Ltd.		562,031		5,355,125
NCC Ltd./India		3,567,795		4,710,458
Nestle India Ltd.		166,125		18,505,976
NIIT Technologies Ltd.		484,924		3,781,840
NTPC Ltd.		10,741,774		28,355,712


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Oil & Natural Gas Corp. Ltd.		8,465,962	$	20,785,401
Page Industries Ltd.		44,489		12,351,833
Persistent Systems Ltd.		467,551		4,552,179
PI Industries Ltd.		514,594		5,809,546
Piramal Enterprises Ltd.		521,366		22,132,237
Power Finance Corp. Ltd.		4,536,238		8,664,276
PTC India Ltd.		3,551,275		6,644,101
Rajesh Exports Ltd.		661,158		7,694,829
Rallis India Ltd.		1,136,557		4,039,432
Ramco Cements Ltd. (The)		685,222		7,404,648
Raymond Ltd.		376,555		4,577,771
Redington India Ltd.		2,842,906		6,590,699
Reliance Capital Ltd.		796,195		10,029,930
Reliance Industries Ltd.		8,258,535		205,991,030
Reliance Infrastructure Ltd.		915,110		7,289,959
Rural Electrification Corp. Ltd.		4,785,374		12,617,270
Shree Cement Ltd.		63,095		17,362,309
Shriram Transport Finance Co. Ltd.		1,015,762		15,651,248
Siemens Ltd.		567,890		11,415,321
Sintex Plastics Technology Ltd.^a		2,794,150		4,508,579
Sobha Ltd.		572,705		3,524,407
SRF Ltd.		156,495		3,753,481
State Bank of India		10,910,216		47,403,258
Strides Shasun Ltd.		373,330		5,286,378
Sun Pharma Advanced Research Co. Ltd.^a		846,611		5,117,311
Sun Pharmaceuticals Industries Ltd.		6,250,106		47,042,311
Sundaram Finance Ltd.		319,027		7,989,118
Suzlon Energy Ltd.^a		18,352,838		4,679,631
Tata Communications Ltd.		598,005		6,098,269
Tata Consultancy Services Ltd.		2,982,564		116,470,521
Tata Elxsi Ltd.		111,025		2,848,037
Tata Global Beverages Ltd.		2,791,435		8,645,965
Tata Motors Ltd.^a		10,162,510		59,861,061
Tata Motors Ltd. Class A^a		2,224,150		7,610,846
Tata Power Co. Ltd.		8,057,851		9,989,397
Tata Steel Ltd.		1,970,227		19,664,900
Tech Mahindra Ltd.		3,027,553		20,277,223
Thermax Ltd.		321,782		4,475,413
Titan Co. Ltd.		2,195,072		21,189,714
Torrent Power Ltd.		1,107,956		3,642,275
TTK Prestige Ltd.		41,968		4,110,978
Tube Investments of India Ltd.		695,884		8,634,562


Security	Shares		Value
TV18 Broadcast Ltd.^a		5,405,982	$	3,226,190
TVS Motor Co. Ltd.		947,472		8,947,636
Ultratech Cement Ltd.		589,137		36,867,228
Union Bank of India^a		1,279,738		2,728,586
United Spirits Ltd.^a		402,169		15,997,740
UPL Ltd.		2,382,035		30,854,994
VA Tech Wabag Ltd.		366,736		3,524,440
Vakrangee Ltd.		1,280,973		10,259,607
Vedanta Ltd.		9,809,807		47,402,270
Vijaya Bank		3,478,925		3,708,785
Voltas Ltd.		929,357		7,628,792
Welspun India Ltd.		2,042,263		2,477,503
Wipro Ltd.		7,916,840		37,041,542
Wockhardt Ltd.		308,806		2,900,570
Yes Bank Ltd.		2,132,184		58,470,897
Zee Entertainment Enterprises Ltd.		3,724,654		30,268,595

				3,426,932,247
INDONESIA — 2.27%
Ace Hardware Indonesia Tbk PT		71,353,200		5,829,335
Adaro Energy Tbk PT		101,952,400		13,945,670
Adhi Karya Persero Tbk PT		18,782,200		2,843,655
AKR Corporindo Tbk PT		13,966,800		7,092,270
Alam Sutera Realty Tbk PT		92,491,400		2,481,781
Aneka Tambang Persero Tbk PT^a		64,049,543		3,552,441
Astra International Tbk PT		126,947,600		74,929,722
Bank Bukopin Tbk		49,496,200		2,207,333
Bank Central Asia Tbk PT		67,129,000		95,345,117
Bank Danamon Indonesia Tbk PT		23,850,300		9,742,478
Bank Mandiri Persero Tbk PT		59,546,700		58,466,629
Bank Negara Indonesia Persero Tbk PT		49,526,900		27,283,969
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT		20,466,500		3,927,015
Bank Rakyat Indonesia Persero Tbk PT		70,497,400		79,918,541
Bank Tabungan Negara Persero Tbk PT		34,986,776		7,893,134
Bumi Serpong Damai Tbk PT		56,159,300		7,723,903
Charoen Pokphand Indonesia Tbk PT		50,243,700		10,431,348


CONSOLIDATED SCHEDULES OF INVESTMENTS			25

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Ciputra Development Tbk PT		95,687,127	$	8,391,091
Eagle High Plantations Tbk PT^a		94,782,900		1,520,277
Gudang Garam Tbk PT		3,156,800		16,373,149
Hanjaya Mandala Sampoerna Tbk PT		60,103,500		16,397,597
Hanson International Tbk PT^a		482,237,900		4,879,487
Indocement Tunggal Prakarsa Tbk PT		10,890,700		16,162,184
Indofood CBP Sukses Makmur Tbk PT		16,380,800		10,712,223
Indofood Sukses Makmur Tbk PT		28,015,300		17,585,680
Jasa Marga Persero Tbk PT		17,740,680		7,745,425
Kalbe Farma Tbk PT		141,920,300		18,189,455
Kawasan Industri Jababeka Tbk PT		169,031,488		3,927,429
Krakatau Steel Persero Tbk PT^a		32,864,914		1,367,113
Link Net Tbk PT		9,640,300		3,598,313
Lippo Karawaci Tbk PT		88,169,400		5,187,602
Matahari Department Store Tbk PT		15,693,300		11,762,330
Media Nusantara Citra Tbk PT		41,435,400		4,627,398
Mitra Adiperkasa Tbk PT		8,053,400		4,225,289
Modernland Realty Tbk PT		96,810,000		1,959,129
Pakuwon Jati Tbk PT		157,955,300		7,932,098
Panin Financial Tbk PT^a		159,924,400		2,972,662
Pembangunan Perumahan Persero Tbk PT		25,790,250		5,431,765
Perusahaan Gas Negara Persero Tbk PT		69,800,200		11,091,023
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		28,578,900		2,945,285
Ramayana Lestari Sentosa Tbk PT		32,743,000		2,478,671
Salim Ivomas Pratama Tbk PT		33,834,100		1,262,883
Semen Indonesia Persero Tbk PT		19,462,200		15,280,059
Siloam International Hospitals Tbk PT^a		2,077,337		1,708,797
Sugih Energy Tbk PT^a		82,105,800		307,697
Summarecon Agung Tbk PT		67,182,100		5,261,977
Surya Citra Media Tbk PT		42,968,300		7,117,369
Tambang Batubara Bukit Asam Persero Tbk PT		5,845,500		5,421,831


Security	Shares		Value
Telekomunikasi Indonesia Persero Tbk PT		317,586,200	$	111,638,381
Timah Persero Tbk PT		33,354,052		2,387,432
Tower Bersama Infrastructure Tbk PT		16,550,800		7,970,236
Unilever Indonesia Tbk PT		9,798,700		37,125,190
United Tractors Tbk PT		11,518,700		26,159,242
Waskita Karya Persero Tbk PT		39,932,800		6,644,492
Wijaya Karya Persero Tbk PT		25,153,823		3,742,343

				833,104,945
MALAYSIA — 2.35%
AEON Credit Service M Bhd		1,903,800		5,563,616
AirAsia Bhd		10,465,600		8,136,235
Alliance Financial Group Bhd		8,230,300		7,400,621
AMMB Holdings Bhd		10,382,500		10,405,597
Astro Malaysia Holdings Bhd		12,521,000		7,857,694
Axiata Group Bhd^b		17,387,300		20,072,448
Berjaya Corp. Bhd^a		31,219,306		2,412,451
Berjaya Sports Toto Bhd		4,675,473		2,463,368
British American Tobacco Malaysia Bhd		976,900		10,106,414
Bursa Malaysia Bhd		3,654,200		8,693,753
Cahya Mata Sarawak Bhd^b		5,286,800		5,026,205
Capitaland Malaysia Mall Trust^b		12,263,700		4,192,718
Carlsberg Brewery Malaysia Bhd		1,344,600		4,666,192
CIMB Group Holdings Bhd		25,696,100		42,601,191
Dialog Group Bhd^b		25,777,596		12,374,212
DiGi.Com Bhd^b		20,027,300		22,698,076
DRB-Hicom Bhd		4,682,600		1,732,469
Eastern & Oriental Bhd^b		7,689,029		2,664,738
Felda Global Ventures Holdings Bhd^b		10,277,400		3,730,235
Gamuda Bhd		10,671,800		13,344,436
Genting Bhd		14,078,300		32,010,372
Genting Malaysia Bhd		19,441,200		26,722,830
Genting Plantations Bhd^b		1,848,900		4,606,556
HAP Seng Consolidated Bhd^b		4,609,100		9,799,936
Hartalega Holdings Bhd		4,762,900		7,572,905
Hong Leong Bank Bhd		4,892,300		17,688,119
Hong Leong Financial Group Bhd		1,857,600		7,351,233
IHH Healthcare Bhd		15,102,900		21,184,023
IJM Corp. Bhd		16,614,400		12,994,285
Inari Amertron Bhd		12,232,100		7,275,386
IOI Corp. Bhd^b		14,860,000		15,797,775


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
IOI Properties Group Bhd		14,269,541	$	6,649,429
Kossan Rubber Industries^b		2,359,800		3,978,588
KPJ Healthcare Bhd		4,793,350		4,669,321
Kuala Lumpur Kepong Bhd		2,818,300		16,195,078
Lafarge Malaysia Bhd^b		3,463,900		4,404,397
Magnum Bhd		6,594,400		2,933,933
Mah Sing Group Bhd		11,103,723		3,848,147
Malayan Banking Bhd		22,194,600		49,165,418
Malaysia Airports Holdings Bhd		5,832,200		12,291,254
Malaysia Building Society Bhd		11,527,600		3,482,169
Malaysian Resources Corp. Bhd^b		10,825,900		3,042,051
Maxis Bhd^b		12,148,300		16,442,378
MISC Bhd		7,712,100		13,435,903
My EG Services Bhd^b		15,405,200		7,647,588
OSK Holdings Bhd		5,781,400		2,166,079
Pavilion REIT		9,771,300		3,935,520
Petronas Chemicals Group Bhd		15,253,300		25,573,967
Petronas Dagangan Bhd		1,802,400		10,298,223
Petronas Gas Bhd		4,240,000		18,268,587
POS Malaysia Bhd^b		2,930,600		3,774,336
PPB Group Bhd		2,977,400		11,629,325
Public Bank Bhd		17,428,960		84,073,663
QL Resources Bhd		5,361,950		6,051,891
RHB Bank Bhd		5,845,766		6,912,801
RHB Bank Bhd New^a,d		1,769,000		4
Sapura Energy Bhd		30,366,600		9,812,881
Sime Darby Bhd		14,753,100		31,091,886
Sunway Bhd		6,144,752		6,244,754
Sunway Construction Group Bhd^b		6,837,270		3,682,407
Sunway REIT^b		12,646,400		5,063,890
Supermax Corp. Bhd^b		4,898,700		2,041,842
Ta Ann Holdings Bhd		3,542,060		3,043,990
Telekom Malaysia Bhd		6,906,800		10,399,420
Tenaga Nasional Bhd		20,927,800		69,979,858
TIME dotCom Bhd		2,979,900		6,908,093
Top Glove Corp. Bhd^b		4,934,600		6,482,404
UEM Sunrise Bhd^a,b		11,421,000		3,075,553
UOA Development Bhd		6,917,800		4,211,750
WCT Holdings Bhd^a,b		8,531,179		3,495,975
Westports Holdings Bhd^b		8,562,200		7,518,616
YTL Corp. Bhd		24,604,700		8,239,017
YTL Power International Bhd		12,361,435		4,081,401

				865,389,876


Security	Shares		Value
MEXICO — 3.48%
Alfa SAB de CV		19,528,500	$	27,425,529
Alsea SAB de CV		3,621,800		13,218,953
America Movil SAB de CV Series L		210,306,700		196,114,368
Arca Continental SAB de CV		2,902,900		21,304,194
Axtel SAB de CV CPO^a,b		10,940,700		2,553,664
Banregio Grupo Financiero SAB de CV		1,764,600		11,419,616
Bolsa Mexicana de Valores SAB de CV		3,260,200		5,654,166
Cemex SAB de CV CPO^a		91,436,586		85,727,811
Coca-Cola Femsa SAB de CV Series L		3,114,500		25,605,907
Concentradora Fibra Hotelera Mexicana SA de CV		4,133,100		3,392,701
Consorcio ARA SAB de CV		8,744,000		2,987,808
Controladora Vuela Cia. de Aviacion SAB de CV Class A^a,b		4,271,300		5,389,827
Corp Inmobiliaria Vesta SAB de CV		3,988,700		5,881,418
El Puerto de Liverpool SAB de CV Series C1^b		1,221,980		10,982,410
Fibra Uno Administracion SA de CV		15,968,500		28,572,216
Fomento Economico Mexicano SAB de CV		12,252,600		123,008,947
Genomma Lab Internacional SAB de CV Series B^a,b		5,614,700		7,217,336
Gentera SAB de CV		7,099,000		10,925,675
Gruma SAB de CV Series B		1,405,680		20,681,287
Grupo Aeromexico SAB de CV^a,b		3,335,900		6,762,484
Grupo Aeroportuario del Centro Norte SAB de CV		2,038,800		12,370,472
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,321,600		25,688,670
Grupo Aeroportuario del Sureste SAB de CV Series B		1,368,990		28,013,878
Grupo Bimbo SAB de CV Series A^b		10,524,400		25,592,431
Grupo Carso SAB de CV Series A1		3,653,400		14,810,181
Grupo Comercial Chedraui SA de CV		2,706,800		5,816,748


CONSOLIDATED SCHEDULES OF INVESTMENTS			27

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Grupo Financiero Banorte SAB de CV Series O		15,807,200	$	108,132,237
Grupo Financiero Inbursa SAB de CV Series O		15,278,000		25,630,848
Grupo Financiero Santander Mexico SAB de CV Series B		11,295,300		23,341,286
Grupo Herdez SAB de CV		2,260,900		5,553,700
Grupo Lala SAB de CV^b		4,628,400		8,242,578
Grupo Mexico SAB de CV Series B		24,507,000		81,044,877
Grupo Televisa SAB		15,488,900		80,335,185
Industrias Bachoco SAB de CV Series B		1,282,700		6,829,216
Industrias CH SAB de CV Series B^a,b		1,194,700		5,733,273
Industrias Penoles SAB de CV		886,955		23,117,488
Infraestructura Energetica Nova SAB de CV		3,444,500		18,775,620
Kimberly-Clark de Mexico SAB de CV Series A		9,846,600		19,391,826
La Comer SAB de CV^a,b		3,338,600		3,332,465
Macquarie Mexico Real Estate Management SA de CV		5,447,800		7,335,972
Mexichem SAB de CV		6,547,983		17,495,333
PLA Administradora Industrial S. de RL de CV		4,332,400		7,389,710
Promotora y Operadora de Infraestructura SAB de CV		1,581,585		17,384,989
Qualitas Controladora SAB de CV		2,416,500		4,223,477
Telesites SAB de CV^a,b		10,379,395		8,287,093
Wal-Mart de Mexico SAB de CV		32,711,600		79,820,874

				1,278,516,744
PAKISTAN — 0.19%
DG Khan Cement Co. Ltd.		2,169,700		3,206,701
Engro Corp. Ltd./Pakistan		2,229,100		6,007,340
Engro Fertilizers Ltd.		5,597,347		3,080,137
Fauji Cement Co. Ltd.		6,183,000		2,016,528
Fauji Fertilizer Co. Ltd.		4,111,720		2,769,548
Habib Bank Ltd.		3,730,900		6,300,682
Hub Power Co. Ltd. (The)		5,171,495		5,559,357
Lucky Cement Ltd.		1,008,500		5,723,142
MCB Bank Ltd.		2,460,500		4,524,794
National Bank of Pakistan		3,639,500		1,921,116
Nishat Mills Ltd.		2,586,100		3,512,130


Security	Shares		Value
Oil & Gas Development Co. Ltd.		4,842,700	$	6,495,294
Pakistan Oilfields Ltd.		802,200		3,663,202
Pakistan State Oil Co. Ltd.		1,295,900		5,171,897
Searle Co. Ltd. (The)		714,300		2,665,113
SUI Northern Gas Pipeline^a		2,274,100		3,166,663
United Bank Ltd./Pakistan		3,150,400		5,573,992

				71,357,636
PERU — 0.36%
Cia. de Minas Buenaventura SAA ADR		1,277,508		17,156,932
Credicorp Ltd.		437,084		88,658,119
Southern Copper Corp.		620,430		25,251,501

				131,066,552
PHILIPPINES — 1.08%
Aboitiz Equity Ventures Inc.		12,853,820		18,701,718
Aboitiz Power Corp.		8,592,800		6,633,097
Alliance Global Group Inc.		17,695,200		4,806,787
Ayala Corp.		1,661,540		29,873,301
Ayala Land Inc.		45,341,400		37,215,923
Bank of the Philippine Islands		5,619,535		11,630,032
BDO Unibank Inc.		12,937,746		32,135,773
Cebu Air Inc.		2,002,600		4,238,452
Cosco Capital Inc.		18,478,100		2,831,118
D&L Industries Inc.		20,126,400		4,066,972
DMCI Holdings Inc.		26,693,400		8,190,080
DoubleDragon Properties Corp.^a		4,618,600		3,935,332
Energy Development Corp.		58,376,900		7,734,911
Filinvest Land Inc.		82,314,000		3,072,498
First Gen Corp.		8,809,600		2,895,788
First Philippine Holdings Corp.		1,412,470		1,849,433
Globe Telecom Inc.		222,360		8,691,030
GT Capital Holdings Inc.		588,540		12,858,857
International Container Terminal Services Inc.		3,403,280		6,943,569
JG Summit Holdings Inc.		18,555,113		26,035,902
Jollibee Foods Corp.		2,809,500		13,078,423
Lopez Holdings Corp.		13,466,600		1,779,054
Manila Water Co. Inc.		8,235,600		4,981,275
Megaworld Corp.		75,385,600		7,277,797
Melco Resorts And Entertainment (Philippines) Corp.^a		13,665,300		2,374,136
Metro Pacific Investments Corp.		91,926,200		11,407,687
Metropolitan Bank & Trust Co.		4,761,122		8,150,758


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Nickel Asia Corp.		11,832,124	$	1,669,493
PLDT Inc.		567,930		19,201,073
Rizal Commercial Banking Corp.		1,838,150		1,842,820
Robinsons Land Corp.		11,931,000		5,409,404
Security Bank Corp.		1,164,360		5,688,685
SM Investments Corp.		1,554,322		24,619,464
SM Prime Holdings Inc.		54,359,696		35,481,998
Universal Robina Corp.		5,682,780		16,225,409
Vista Land & Lifescapes Inc.		33,305,500		3,872,733

				397,400,782
POLAND — 1.34%
Alior Bank SA^a		573,211		10,587,095
Asseco Poland SA		480,463		6,090,831
Bank Handlowy w Warszawie SA		222,137		4,413,647
Bank Millennium SA^a		3,950,041		8,235,240
Bank Pekao SA		939,065		33,624,382
Bank Zachodni WBK SA		220,688		22,825,960
Budimex SA		89,564		5,693,307
CCC SA		179,892		13,199,665
CD Projekt SA		457,469		10,676,922
Ciech SAa		201,065		3,529,638
Cyfrowy Polsat SA		1,448,835		10,866,060
Enea SA		1,405,421		5,997,837
Eurocash SA		535,925		5,870,069
Getin Noble Bank SA^a,b		3,650,041		1,307,453
Globe Trade Centre SA^b		1,700,147		4,710,207
Grupa Azoty SA		292,716		5,643,962
Grupa Lotos SA^a		668,192		11,006,263
Jastrzebska Spolka Weglowa SA^a		352,068		10,246,564
KGHM Polska Miedz SA		900,598		31,780,771
KRUK SA^b		118,697		11,325,276
LPP SA		8,198		20,033,642
Lubelski Wegiel Bogdanka SA^b		119,831		2,548,597
mBank SA^a		95,905		11,755,300
Netia SA^b		2,395,332		2,614,260
Orange Polska SA^a		3,813,737		6,392,871
PGE Polska Grupa Energetyczna SA		5,082,911		20,298,075
Polski Koncern Naftowy ORLEN SA		1,900,308		62,698,358
Polskie Gornictwo Naftowe i Gazownictwo SA		11,476,724		21,935,978


Security	Shares		Value
Powszechna Kasa Oszczednosci Bank Polski SA^a		5,807,044	$	59,607,761
Powszechny Zaklad Ubezpieczen SA		3,806,551		51,664,444
Synthos SA		3,537,264		4,731,662
Tauron Polska Energia SA^a		6,414,503		7,036,674
Warsaw Stock Exchange		369,904		4,877,673

				493,826,444
QATAR — 0.59%
Al Meera Consumer Goods Co. QSC		70,082		2,888,928
Barwa Real Estate Co.		662,112		5,762,397
Commercial Bank PQSC (The)^a		1,418,067		11,609,359
Doha Bank QPSC		324,447		2,687,352
Ezdan Holding Group QSC		5,237,038		16,165,961
Gulf International Services QSC		261,044		1,318,393
Industries Qatar QSC		920,844		23,013,197
Masraf Al Rayan QSC		2,512,397		26,322,814
Mazaya Qatar Real Estate Development QSC^a		1,087,817		2,957,607
Medicare Group		102,142		1,936,666
Ooredoo QSC		546,926		13,156,265
Qatar Electricity & Water Co. QSC		199,042		10,167,336
Qatar Gas Transport Co. Ltd.		992,991		4,633,276
Qatar Industrial Manufacturing Co. QSC		213,011		2,486,225
Qatar Insurance Co. SAQ		963,326		17,460,904
Qatar Islamic Bank SAQ		459,760		11,742,583
Qatar National Bank QPSC		1,273,773		45,686,167
Qatar National Cement Co. QSC		159,506		2,934,954
Salam International Investment Ltd. QSC		1,141,360		2,633,003
United Development Co. QSC		1,241,886		5,173,886
Vodafone Qatar QSC^a		2,534,952		5,778,263

				216,515,536
RUSSIA — 2.83%
Aeroflot PJSC		4,239,100		14,197,244
Alrosa PJSC		16,325,300		22,699,405
Gazprom PJSC		51,101,130		103,583,728
Gazprom PJSC ADR		8,407,079		33,544,245
Inter RAO UES PJSC		217,488,000		14,489,213
LSR Group PJSC GDR^e		1,883,472		5,367,895


CONSOLIDATED SCHEDULES OF INVESTMENTS			29

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Lukoil PJSC		2,019,838	$	101,904,870
Lukoil PJSC ADR		692,893		34,817,873
M Video OJSC^a		185,640		1,304,195
Magnit PJSC GDR^e		1,956,219		81,750,392
Mechel PJSC^a		684,220		3,886,370
MMC Norilsk Nickel PJSC		404,857		68,179,104
Mobile TeleSystems PJSC ADR		3,251,444		32,481,926
Moscow Exchange MICEX-RTS PJSC		10,066,420		18,234,824
Novatek PJSC GDR^e		588,259		62,178,976
Novolipetsk Steel PJSC		7,029,386		16,642,972
PhosAgro PJSC GDR^e		876,894		12,188,827
Rosneft Oil Co. PJSC		1,206,660		6,349,639
Rosneft Oil Co. PJSC GDR		5,869,622		30,522,034
Rostelecom PJSC		8,809,930		10,080,411
RusHydro PJSC		697,610,000		9,929,306
Sberbank of Russia PJSC		12,641,030		40,026,845
Sberbank of Russia PJSC ADR		12,961,062		176,918,496
Severstal PJSC		1,289,600		20,229,455
Surgutneftegas OJSC		40,040,950		18,522,602
Surgutneftegas OJSC ADR		1,092,661		4,997,831
Tatneft PJSC Class S		9,805,270		64,833,813
VTB Bank PJSC		5,421,870,000		6,049,715
VTB Bank PJSC GDR^e		11,821,936		26,410,205

				1,042,322,411
SOUTH AFRICA — 6.55%
Adcock Ingram Holdings Ltd.^b		817,288		3,961,465
Advtech Ltd.		4,066,766		5,694,568
Aeci Ltd.		950,655		7,826,127
African Rainbow Minerals Ltd.		791,645		6,693,732
Anglo American Platinum Ltd.^a		339,188		9,198,982
AngloGold Ashanti Ltd.		2,677,577		27,122,892
Aspen Pharmacare Holdings Ltd.		2,453,195		54,718,658
Astral Foods Ltd.		353,117		4,211,051
Attacq Ltd.^a		3,842,447		5,350,898
AVI Ltd.		2,114,433		16,071,155
Barclays Africa Group Ltd.		4,208,416		48,043,452
Barloworld Ltd.		1,398,991		13,831,148
Bid Corp. Ltd.		2,132,640		48,476,027
Bidvest Group Ltd. (The)		2,132,585		28,130,925
Blue Label Telecoms Ltd.		4,092,426		5,821,809


Security	Shares		Value
Brait SE^a		2,394,232	$	10,599,277
Capitec Bank Holdings Ltd.		270,018		18,707,537
Cashbuild Ltd.		183,444		5,243,132
City Lodge Hotels Ltd.		408,699		4,449,387
Clicks Group Ltd.		1,667,634		19,091,667
Clover Industries Ltd.		2,822,472		3,463,622
Coronation Fund Managers Ltd.		1,503,236		8,136,384
DataTec Ltd.		1,382,178		6,015,758
Discovery Ltd.		2,250,322		26,074,129
Emira Property Fund Ltd.		4,166,244		4,445,917
EOH Holdings Ltd.^b		951,452		8,162,100
Exxaro Resources Ltd.		1,358,629		13,679,844
Famous Brands Ltd.		591,473		5,378,889
FirstRand Ltd.		21,034,450		89,866,744
Fortress Income Fund Ltd.		5,040,996		15,284,913
Fortress Income Fund Ltd. Class A		5,937,654		8,012,806
Foschini Group Ltd. (The)		1,392,763		16,423,834
Gold Fields Ltd.		5,428,350		24,223,451
Grindrod Ltd.^a		3,464,689		3,601,304
Growthpoint Properties Ltd.		12,419,249		24,031,092
Harmony Gold Mining Co. Ltd.		2,768,399		5,503,784
Hosken Consolidated Investments Ltd.		525,088		5,373,087
Hudaco Industries Ltd.		433,214		4,332,973
Hyprop Investments Ltd.		1,533,489		13,465,443
Impala Platinum Holdings Ltd.^a,b		3,836,924		11,867,232
Imperial Holdings Ltd.		941,636		15,113,991
Investec Ltd.		1,617,734		12,330,749
JSE Ltd.		683,856		7,090,846
KAP Industrial Holdings Ltd.		6,603,614		4,293,175
Lewis Group Ltd.		947,051		2,331,651
Liberty Holdings Ltd.		917,013		7,309,294
Life Healthcare Group Holdings Ltd.		7,606,334		15,432,124
Massmart Holdings Ltd.		764,774		7,158,485
Metair Investments Ltd.		2,055,057		3,098,990
MMI Holdings Ltd./South Africa		5,789,977		9,270,200
Mondi Ltd.		734,050		20,033,254
Mpact Ltd.		1,701,241		3,534,026
Mr. Price Group Ltd.		1,548,382		21,592,171
MTN Group Ltd.		10,658,552		105,974,585
Murray & Roberts Holdings Ltd.		3,390,599		3,978,198
Nampak Ltd.^a		3,945,013		5,730,475
Naspers Ltd. Class N		2,773,084		627,471,195


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Nedbank Group Ltd.		1,400,335	$	23,688,529
NEPI Rockcastle PLC^a		1,987,128		28,818,898
Netcare Ltd.		6,252,202		11,597,660
Northam Platinum Ltd.^a		2,279,970		8,628,715
Omnia Holdings Ltd.		490,405		5,338,897
Pick n Pay Stores Ltd.		2,406,068		11,843,834
Pioneer Foods Group Ltd.		861,661		8,396,181
PPC Ltd.^a		10,586,000		4,626,157
PSG Group Ltd.		628,292		12,210,545
Rand Merchant Investment Holdings Ltd.		4,646,133		14,881,209
Redefine Properties Ltd.		29,414,401		24,124,448
Remgro Ltd.		3,276,887		54,797,568
Resilient REIT Ltd.		1,765,540		16,987,762
Reunert Ltd.		1,308,180		6,995,077
RMB Holdings Ltd.		4,346,365		22,220,885
Royal Bafokeng Platinum Ltd.^a,b		494,201		1,226,234
SA Corporate Real Estate Ltd.		15,629,008		6,505,323
Sanlam Ltd.		8,802,153		48,624,319
Sappi Ltd.		3,560,159		23,939,827
Sasol Ltd.		3,458,370		104,271,286
Shoprite Holdings Ltd.		2,772,378		48,075,882
Sibanye Gold Ltd.		11,036,971		17,637,075
SPAR Group Ltd. (The)		1,213,226		15,779,639
Standard Bank Group Ltd.		8,096,725		104,299,647
Steinhoff International Holdings NV Class H		18,883,009		91,324,174
Sun International Ltd./South Africa		894,347		3,990,931
Super Group Ltd./South Africa^a		2,670,539		8,487,784
Telkom SA SOC Ltd.		1,747,941		8,440,144
Tiger Brands Ltd.		1,020,548		31,643,073
Tongaat Hulett Ltd.		724,176		6,609,098
Trencor Ltd.		1,347,761		4,090,723
Truworths International Ltd.		2,856,336		18,246,707
Tsogo Sun Holdings Ltd.		2,944,233		4,944,998
Vodacom Group Ltd.		3,346,484		46,754,224
Vukile Property Fund Ltd.		4,544,693		6,556,106
Wilson Bayly Holmes-Ovcon Ltd.		451,676		4,821,700
Woolworths Holdings Ltd./South Africa		6,317,946		28,844,541
Zeder Investments Ltd.		10,841,524		5,296,686

				2,407,897,090


Security	Shares		Value
SOUTH KOREA — 14.02%
Advanced Process Systems Corp.^a		71,026	$	2,771,501
Ahnlab Inc.^b		40,960		1,881,632
AK Holdings Inc.^b		40,085		2,495,537
ALUKO Co. Ltd.^b		395,994		1,422,291
Amicogen Inc.^a		60,167		1,622,097
AmorePacific Corp.^b		203,099		51,873,459
AmorePacific Group		186,889		22,209,228
Aprogen pharmaceuticals Inc.^a,b		751,452		2,622,352
Asiana Airlines Inc.^a		740,879		2,946,827
ATGen Co. Ltd.^a,b		73,643		1,893,976
BGF retail Co. Ltd.		154,418		12,489,288
Binex Co. Ltd.^a,b		249,093		2,114,065
Binggrae Co. Ltd.		54,696		2,939,498
BNK Financial Group Inc.		1,513,049		13,230,457
Boditech Med Inc.^b		168,565		2,272,249
Bukwang Pharmaceutical Co. Ltd.		200,233		3,791,215
Byucksan Corp.^b		560,034		1,800,393
Caregen Co. Ltd.^b		29,396		1,777,942
Cell Biotech Co. Ltd.^b		67,066		2,277,960
Celltrion Inc.^a,b		501,974		51,239,098
Chabiotech Co. Ltd.^a,b		276,627		3,078,812
Cheil Worldwide Inc.		436,747		7,359,164
Chong Kun Dang Pharmaceutical Corp.		42,004		3,874,083
CJ CGV Co. Ltd.^b		105,810		6,136,905
CJ CheilJedang Corp.^b		48,433		15,570,204
CJ Corp.		91,628		14,382,898
CJ E&M Corp.		129,066		8,699,021
CJ Freshway Corp.		68,807		2,605,586
CJ Logistics Corp.^a,b		55,344		8,294,729
CJ O Shopping Co. Ltd.		21,982		4,171,823
Com2uSCorp.^b		63,153		6,104,715
Cosmax Inc.^b		52,537		5,497,841
Coway Co. Ltd.		338,031		29,618,183
CrystalGenomics Inc.^a,b		170,206		2,037,762
Daeduck Electronics Co.		433,665		4,634,324
Daeduck GDS Co. Ltd.^b		257,439		4,257,926
Daekyo Co. Ltd.		269,987		2,023,226
Daelim Industrial Co. Ltd.		171,330		12,732,755
Daesang Corp.		149,908		3,203,958
Daewoo Engineering & Construction Co. Ltd.^a,b		826,442		5,152,436


CONSOLIDATED SCHEDULES OF INVESTMENTS			31

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^a,b,d		397,780	$	1,185,297
Daewoong Pharmaceutical Co. Ltd.^b		37,347		3,345,200
Daishin Securities Co. Ltd.		264,845		3,311,737
Daou Technology Inc.^b		180,825		3,159,146
Dawonsys Co. Ltd.^b		214,369		2,167,264
DGB Financial Group Inc.		1,044,107		10,185,506
DIO Corp.^a,b		87,063		2,640,612
Dong-A Socio Holdings Co. Ltd.		29,607		3,321,466
Dong-A ST Co. Ltd.^b		44,159		3,270,022
Dongbu HiTek Co. Ltd.^a		244,094		3,452,731
Dongbu Insurance Co. Ltd.		312,453		20,837,589
DongKook Pharmaceutical Co. Ltd.		54,621		2,867,651
Dongkuk Steel Mill Co. Ltd.		378,978		4,251,571
Dongsuh Cos. Inc.		249,499		5,863,536
Dongwon Industries Co. Ltd.^b		13,170		3,363,746
Doosan Bobcat Inc.		194,759		6,589,266
Doosan Heavy Industries & Construction Co. Ltd.		335,531		5,356,117
Doosan Infracore Co. Ltd.^a,b		851,128		6,317,791
DoubleUGames Co. Ltd.		75,722		3,585,983
Douzone Bizon Co. Ltd.^b		150,734		4,418,019
E-MART Inc.		134,250		26,669,032
E1 Corp.		26,993		1,414,763
Emerson Pacific Inc.^a,b		61,848		1,593,370
EO Technics Co. Ltd.^b		59,392		3,802,858
Fila Korea Ltd.^b		80,099		5,029,274
Foosung Co. Ltd.^a,b		425,185		4,223,193
G-SMATT GLOBAL Co. Ltd.^a,b		146,378		1,726,523
G-treeBNT Co. Ltd.^a,b		149,444		3,618,146
GemVax & Kael Co. Ltd.^a,b		248,661		2,348,563
Genexine Co. Ltd.^a,b		82,816		3,404,152
Golfzon Co. Ltd.		12,997		567,092
GOLFZONNEWDIN Co. Ltd.		1		5
Grand Korea Leisure Co. Ltd.^b		225,337		4,616,251
Green Cross Cell Corp.		97,425		2,846,891
Green Cross Corp./South Korea^b		37,794		6,083,373
Green Cross Holdings Corp.		180,240		5,394,732
GS Engineering & Construction Corp.^a,b		297,457		7,518,202
GS Holdings Corp.		316,438		19,812,454
GS Home Shopping Inc.		25,232		4,934,069


Security	Shares		Value
GS Retail Co. Ltd.		172,288	$	6,165,148
Gwangju Shinsegae Co. Ltd.		9,388		2,048,109
Halla Holdings Corp.^b		59,056		3,346,646
Hana Financial Group Inc.		1,859,582		80,808,370
Hana Tour Service Inc.^b		73,350		5,535,726
Hanall Biopharma Co. Ltd.^a,b		217,677		2,451,665
Hancom Inc.		182,460		2,669,910
Handsome Co. Ltd.		132,874		3,876,866
Hanil Cement Co. Ltd.		24,452		2,786,522
Hanjin Heavy Industries & Construction Co. Ltd.^a,b		558,234		2,326,800
Hanjin Kal Corp.^a,b		290,843		5,919,517
Hanjin Transportation Co. Ltd.		78,388		2,123,761
Hankook Shell Oil Co. Ltd.		9,270		3,304,842
Hankook Tire Co. Ltd.		467,770		24,475,372
Hankook Tire Worldwide Co. Ltd.^b		196,721		3,715,996
Hanmi Pharm Co. Ltd.^a,b		39,396		14,079,982
Hanmi Science Co. Ltd.^a,b		89,575		7,109,757
Hanon Systems		1,192,138		12,211,062
Hansae Co. Ltd.		141,677		3,153,683
Hansol Chemical Co. Ltd.		62,858		4,303,510
Hansol Holdings Co. Ltd.^a		434,558		2,427,914
Hansol Technics Co. Ltd.^a		160,477		2,291,309
Hanssem Co. Ltd.^b		68,751		10,365,085
Hanwha Chemical Corp.		653,444		20,485,319
Hanwha Corp.		267,710		11,668,984
Hanwha General Insurance Co. Ltd.		540,258		4,642,692
Hanwha Investment & Securities Co. Ltd.^a,b		1,026,889		2,836,785
Hanwha Life Insurance Co. Ltd.		1,465,279		9,512,099
Hanwha Techwin Co. Ltd.^a,b		235,318		8,097,143
Hite Jinro Co. Ltd.		183,751		4,253,194
HLB Inc.^a,b		226,347		2,709,901
HMC Investment Securities Co. Ltd.		291,200		2,827,811
Homecast Co. Ltd.^a,b		221,665		2,191,881
Hotel Shilla Co. Ltd.^b		207,299		11,379,752
HS Industries Co. Ltd.^b		276,349		2,367,445
Huchems Fine Chemical Corp.		159,329		3,384,116
Hugel Inc.^a		16,207		8,336,343
Humedix Co. Ltd.^b		100,161		2,846,896
Huons Co. Ltd.^a		55,107		3,289,022
Huons Global Co. Ltd.^b		70,453		2,858,482


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Hy-Lok Corp.^b		123,444	$	2,402,976
Hyosung Corp.		129,870		18,255,051
Hyundai Construction Equipment Co. Ltd.^a,b		13,555		4,033,081
Hyundai Corp.		118,138		2,352,074
Hyundai Department Store Co. Ltd.		89,022		7,626,397
Hyundai Development Co. Engineering & Construction		381,588		12,741,032
Hyundai Electric & Energy System Co. Ltd.^a,b		12,399		2,985,392
Hyundai Elevator Co. Ltd.		90,626		4,179,276
Hyundai Engineering & Construction Co. Ltd.		490,590		17,685,778
Hyundai Glovis Co. Ltd.		122,949		16,900,581
Hyundai Greenfood Co. Ltd.		330,739		5,074,304
Hyundai Heavy Industries Co. Ltd.^a		194,633		25,632,317
Hyundai Home Shopping Network Corp.		47,929		5,844,482
Hyundai Livart Furniture Co. Ltd.^b		97,416		2,034,540
Hyundai Marine & Fire Insurance Co. Ltd.		402,119		16,475,610
Hyundai Mipo Dockyard Co. Ltd.^a,b		77,375		6,930,538
Hyundai Mobis Co. Ltd.		426,114		89,183,136
Hyundai Motor Co.		974,833		121,465,091
Hyundai Robotics Co. Ltd.^a		58,374		22,933,382
Hyundai Rotem Co. Ltd.^a		178,507		2,928,680
Hyundai Steel Co.		480,009		24,562,362
Hyundai Wia Corp.^b		101,835		6,321,790
Il Dong Pharmaceutical Co. Ltd.		123,055		2,160,774
IlDong Holdings Co. Ltd.		1		13
Ilyang Pharmaceutical Co. Ltd.^b		108,588		3,486,064
iMarketKorea Inc.^b		187,869		1,891,019
InBody Co. Ltd.		119,514		3,338,676
Industrial Bank of Korea		1,436,464		19,044,995
Innocean Worldwide Inc.		69,555		4,422,751
Interpark Holdings Corp.^b		619,727		2,665,552
IS Dongseo Co. Ltd.^b		98,029		3,103,614
JB Financial Group Co. Ltd.		744,208		4,105,156
Jeil Pharma Holdings Inc.^b		11,898		422,592
Jeil Pharmaceutical Co. Ltd.^a		37,101		1,633,615
Jenax Inc.^a,b		112,909		2,838,746


Security	Shares		Value
Jusung Engineering Co. Ltd.^a		306,787	$	4,434,754
JW Holdings Corp.^b		262,169		2,171,567
JW Pharmaceutical Corp.		84,418		3,417,596
JW Shinyak Corp.^b		338,611		2,225,175
Kakao Corp.^b		212,743		23,206,269
Kangwon Land Inc.		728,246		22,281,383
KB Financial Group Inc.		2,471,438		121,423,967
KC Tech Co. Ltd.^b		183,506		4,231,249
KCC Corp.		31,765		11,155,498
KEPCO Engineering & Construction Co. Inc.^b		116,267		1,866,294
KEPCO Plant Service & Engineering Co. Ltd.		156,059		6,331,766
Kia Motors Corp.		1,624,069		51,058,217
KISWIRE Ltd.		59,644		2,047,023
KIWOOM Securities Co. Ltd.^b		77,815		5,569,059
Koh Young Technology Inc.		97,693		5,284,918
Kolon Corp.		48,634		2,863,868
Kolon Industries Inc.^b		100,518		6,373,747
Kolon Life Science Inc.^b		37,429		4,348,350
Komipharm International Co. Ltd.^a,b		235,242		7,687,715
Korea Aerospace Industries Ltd. Class A^b		431,731		17,708,016
Korea Electric Power Corp.		1,580,618		60,135,254
Korea Gas Corp.^a		151,381		6,081,553
Korea Investment Holdings Co. Ltd.		237,846		13,858,179
Korea Kolmar Co. Ltd.^b		98,464		5,929,147
Korea PetroChemical Ind. Co. Ltd.		21,144		5,015,981
Korea REIT Co. Ltd.^b		1,129,879		3,401,862
Korea Zinc Co. Ltd.		55,551		25,420,642
Korean Air Lines Co. Ltd.^a		291,256		8,575,469
Korean Reinsurance Co.		609,481		6,729,371
KT Corp.		51,660		1,429,401
KT Skylife Co. Ltd.		224,940		3,211,719
KT&G Corp.		732,061		74,335,744
Kukdo Chemical Co. Ltd.		67,402		3,233,814
Kumho Industrial Co. Ltd.		235,950		1,931,375
Kumho Petrochemical Co. Ltd.^b		111,850		7,816,407
Kumho Tire Co. Inc.^a,b		771,799		4,599,583
Kwang Dong Pharmaceutical Co. Ltd.		445,945		3,416,961


CONSOLIDATED SCHEDULES OF INVESTMENTS			33

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Kwangju Bank Co. Ltd.		325,773	$	3,669,135
Leaders Cosmetics Co. Ltd.^a,b		152,305		1,924,748
LF Corp.		147,954		3,818,252
LG Chem Ltd.		287,678		96,692,056
LG Corp.		589,717		43,930,674
LG Display Co. Ltd.		1,454,757		40,187,727
LG Electronics Inc.^b		656,734		47,467,028
LG Hausys Ltd.		44,210		3,889,351
LG Household & Health Care Ltd.		59,294		50,480,880
LG Innotek Co. Ltd.^b		96,283		15,754,003
LG International Corp.		192,100		4,914,939
Loen Entertainment Inc.		53,952		3,842,094
Lotte Chemical Corp.		97,288		34,468,389
Lotte Chilsung Beverage Co. Ltd.^b		3,966		5,441,116
Lotte Confectionery Co. Ltd.^b		36,440		6,382,494
LOTTE Fine Chemical Co. Ltd.		123,723		4,778,411
Lotte Food Co. Ltd.^b		6,139		3,364,581
LOTTE Himart Co. Ltd.		50,681		3,074,300
Lotte Shopping Co. Ltd.		77,321		17,622,825
LS Corp.		112,365		8,420,400
LS Industrial Systems Co. Ltd.		101,975		5,263,342
Lutronic Corp.^b		210,702		1,971,361
Macrogen Inc.^a,b		144,440		3,266,424
Maeil Dairies Co. Ltd.^a,b		32,431		2,079,426
Maeil Holdings Co. Ltd.		28,200		553,946
Mando Corp.		42,817		9,094,246
Medipost Co. Ltd.^a,b		62,170		5,011,753
Medy-Tox Inc.		27,960		14,111,419
Meritz Fire & Marine Insurance Co. Ltd.		390,509		8,761,864
Meritz Securities Co. Ltd.		2,092,772		8,954,971
Mirae Asset Daewoo Co. Ltd.		2,224,648		20,024,989
Modetour Network Inc.		163,747		3,949,910
Muhak Co. Ltd.		130,072		2,307,059
Namhae Chemical Corp.		324,131		2,722,171
Namyang Dairy Products Co. Ltd.		4,219		2,533,046
Naturalendo Tech Co. Ltd.^a,b		90,659		2,588,879
NAVER Corp.		176,166		117,954,354
NCsoft Corp.		114,613		39,081,854
Netmarble Games Corp.^a,b,c		103,653		14,202,189
Nexen Corp.		346,513		2,698,106
Nexen Tire Corp.		258,469		3,025,710


Security	Shares		Value
NH Investment & Securities Co. Ltd.		808,427	$	9,893,839
NHN Entertainment Corp.^a,b		74,418		4,230,395
NHN KCP Corp.^a		136,872		2,069,588
NICE Holdings Co. Ltd.^b		192,652		2,759,250
NICE Information Service Co. Ltd.		341,190		2,447,878
Nong Shim Holdings Co. Ltd.^b		26,997		2,729,388
NongShim Co. Ltd.^b		20,056		5,913,994
NS Shopping Co. Ltd.^b		186,422		2,711,352
NUTRIBIOTECH Co. Ltd.^a,b		97,657		1,749,443
OCI Co. Ltd.^b		105,806		9,223,776
Orion Corp./Republic of Korea^a		148,977		11,533,959
Orion Holdings Corp.^b		75,381		1,838,398
Osstem Implant Co. Ltd.^a,b		84,346		5,355,777
Ottogi Corp.^b		8,519		5,749,343
Pan Ocean Co. Ltd.^a,b		1,338,449		7,632,340
Paradise Co. Ltd.^b		327,267		4,237,405
Partron Co. Ltd.^b		292,439		2,331,524
Poongsan Corp.		160,802		8,128,515
POSCO		452,726		137,913,605
POSCO Chemtech Co. Ltd.^b		197,537		5,781,058
Posco Daewoo Corp.		229,329		4,301,444
POSCO ICT Co. Ltd.^b		391,353		2,297,585
Pyeong Hwa Automotive Co. Ltd.^b		178,674		1,814,311
S&T Dynamics Co. Ltd.^a		299,146		2,395,609
S&T Motiv Co. Ltd.		83,172		3,857,658
S-1 Corp.		108,191		8,606,538
S-Oil Corp.		284,843		31,702,551
Samchully Co. Ltd.		19,587		1,867,331
Samjin Pharmaceutical Co. Ltd.		125,165		3,735,192
Samkwang Glass		53,477		2,499,324
Samsung Biologics Co. Ltd.^a,b,c		111,045		27,869,577
Samsung C&T Corp.		472,936		54,104,952
Samsung Card Co. Ltd.		173,611		5,712,104
Samsung Electro-Mechanics Co. Ltd.		352,189		31,545,840
Samsung Electronics Co. Ltd.		619,553		1,272,512,192
Samsung Engineering Co. Ltd.^a,b		806,106		7,649,285
Samsung Fire & Marine Insurance Co. Ltd.		192,140		47,114,855
Samsung Heavy Industries Co. Ltd.^a,b		1,576,613		14,960,765


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Samsung Life Insurance Co. Ltd.		438,088	$	44,873,327
Samsung SDI Co. Ltd.		348,679		60,762,171
Samsung SDS Co. Ltd.		219,188		32,559,409
Samsung Securities Co. Ltd.^b		369,926		11,990,773
Samyang Corp.		25,497		2,227,257
Samyang Holdings Corp.		27,430		2,602,882
Seah Besteel Corp.		99,129		3,116,462
Sebang Co. Ltd.		153,230		2,011,178
Sebang Global Battery Co. Ltd.		90,033		2,930,304
Seegene Inc.^a,b		118,179		3,301,382
Seobu T&D^b		261,904		3,274,961
Seoul Semiconductor Co. Ltd.		251,739		5,123,634
SFA Engineering Corp.		133,592		4,484,265
Shinhan Financial Group Co. Ltd.		2,630,885		121,324,956
Shinsegae Food Co. Ltd.^b		18,698		2,246,877
Shinsegae Inc.^b		47,803		8,181,961
Shinsegae International Inc.		32,638		1,913,242
Silicon Works Co. Ltd.		95,915		3,729,933
SillaJen Inc.^a,b		171,381		3,792,086
Sindoh Co. Ltd.		57,686		3,402,021
SK Bioland Co. Ltd.^b		173,239		2,511,935
SK Chemicals Co. Ltd.		99,869		6,058,034
SK Gas Ltd.		35,612		3,537,198
SK Holdings Co. Ltd.		226,630		53,763,325
SK Hynix Inc.		3,702,715		225,262,725
SK Innovation Co. Ltd.		404,295		67,585,675
SK Materials Co. Ltd.^b		40,505		6,559,252
SK Networks Co. Ltd.^b		854,330		5,311,150
SK Securities Co. Ltd.^a,b		2,719,158		3,038,435
SK Telecom Co. Ltd.		127,338		28,627,335
SKC Co. Ltd.		143,917		4,709,593
SL Corp.		127,630		2,212,812
SM Entertainment Co.^a,b		179,631		4,699,463
Songwon Industrial Co. Ltd.		139,285		2,575,463
Soulbrain Co. Ltd.		68,905		3,941,444
SPC Samlip Co. Ltd.		18,394		2,585,535
Ssangyong Cement Industrial Co. Ltd.		199,269		2,359,206
Ssangyong Motor Co.^a		379,798		1,859,245
Sung Kwang Bend Co. Ltd.^b		217,056		1,897,989
Sungwoo Hitech Co. Ltd.		319,030		1,833,376
Taekwang Industrial Co. Ltd.		3,037		3,277,784
Taewoong Co. Ltd.^a,b		81,287		1,430,957


Security	Shares		Value
Taeyoung Engineering & Construction Co. Ltd.^a		540,218	$	4,393,224
Tera Resource Co. Ltd.^a,d		49,111		—
Tongyang Inc.		1,228,871		2,310,400
Tongyang Life Insurance Co. Ltd.		346,084		2,814,465
Toptec Co. Ltd.^b		140,182		3,487,145
Value Added Technologies Co. Ltd.^b		91,017		2,627,353
Vieworks Co. Ltd.^b		55,356		2,356,410
ViroMed Co. Ltd.^a,b		91,888		10,145,491
Webzen Inc.^a		129,335		2,133,408
Wonik Holdings Co. Ltd.^a,b		218,824		1,606,831
WONIK IPS Co. Ltd.^a,b		180,038		4,853,809
Woongjin Thinkbig Co. Ltd.^a		365,731		2,416,367
Woori Bank		2,158,209		35,600,113
YG Entertainment Inc.^b		116,552		2,842,480
Youlchon Chemical Co. Ltd.		243,224		2,976,668
Youngone Corp.^b		156,042		4,677,385
Youngone Holdings Co. Ltd.		59,639		2,824,337
Yuanta Securities Korea Co. Ltd.^a		638,140		2,071,295
Yuhan Corp.		51,588		10,339,560
Yungjin Pharmaceutical Co. Ltd.^a,b		608,977		5,643,677

				5,154,522,148
TAIWAN — 12.63%
A-DATA Technology Co. Ltd.^b		1,745,820		4,344,448
AcBel Polytech Inc.^b		3,661,000		2,917,494
Accton Technology Corp.^b		3,134,000		8,203,917
Acer Inc.^b		17,769,872		8,950,000
Advanced Ceramic X Corp.^b		325,000		4,630,703
Advanced Semiconductor Engineering Inc.^b		40,480,444		48,824,950
Advanced Wireless Semiconductor Co.^b		1,524,000		2,893,575
Advantech Co. Ltd.^b		2,070,165		15,262,657
Airtac International Group^b		758,880		10,548,731
Alpha Networks Inc.^b		3,351,700		2,387,804
Ambassador Hotel (The)^b		3,059,000		2,371,868
AmTRAN Technology Co. Ltd.^b		5,350,000		2,978,230
Ardentec Corp.^b		4,454,546		4,324,802
Asia Cement Corp.		13,886,050		12,584,362
Asia Optical Co. Inc.^b		2,081,000		8,205,673
Asia Pacific Telecom Co. Ltd.^a		11,965,000		4,103,441


CONSOLIDATED SCHEDULES OF INVESTMENTS			35

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Asia Polymer Corp.^b		7,042,977	$	4,340,746
Asustek Computer Inc.^b		4,174,000		34,577,024
AU Optronics Corp.^b		54,712,000		22,480,162
Bank of Kaohsiung Co. Ltd.^b		15,837,149		5,053,572
BES Engineering Corp.^b		15,107,000		3,228,740
Bioteque Corp.^b		901,000		2,307,807
Bizlink Holding Inc.^b		717,055		6,248,897
Brogent Technologies Inc.^b		353,799		3,241,506
Capital Securities Corp.		15,684,000		5,124,233
Catcher Technology Co. Ltd.		4,143,000		52,715,862
Cathay Financial Holding Co. Ltd.		51,359,078		83,814,394
Cathay Real Estate Development Co. Ltd.^b		5,588,900		3,064,922
Center Laboratories Inc.^a,b		2,043,736		4,070,000
Chailease Holding Co. Ltd.^b		6,780,945		18,469,587
Chang Hwa Commercial Bank Ltd.		29,853,470		16,322,020
Cheng Loong Corp.^b		8,276,000		4,963,571
Cheng Shin Rubber Industry Co. Ltd.^b		11,450,650		23,031,063
Cheng Uei Precision Industry Co. Ltd.		2,788,000		3,806,143
Chicony Electronics Co. Ltd.		3,252,326		8,168,803
Chin-Poon Industrial Co. Ltd.^b		2,428,000		4,384,705
China Airlines Ltd.		12,082,000		5,124,411
China Bills Finance Corp.^b		10,820,000		5,359,985
China Development Financial Holding Corp.		73,209,000		22,851,280
China Life Insurance Co. Ltd./Taiwan^b		21,974,369		24,246,877
China Man-Made Fiber Corp.		12,986,550		3,743,762
China Metal Products		2,642,146		2,766,553
China Motor Corp.^b		3,708,000		3,452,560
China Petrochemical Development Corp.^a,b		15,023,900		6,845,112
China Steel Chemical Corp.^b		1,199,000		4,588,770
China Steel Corp.^b		76,182,529		63,866,198
China Synthetic Rubber Corp.		4,807,005		5,821,798
Chipbond Technology Corp.^b		4,219,000		7,059,860
Chlitina Holding Ltd.^b		478,000		1,773,949
Chong Hong Construction Co. Ltd.^b		1,640,122		3,662,952
Chroma ATE Inc.^b		2,507,000		8,597,849
Chunghwa Telecom Co. Ltd.		22,868,000		79,563,272


Security	Shares		Value
Cleanaway Co. Ltd.^b		670,000	$	3,774,148
Clevo Co.^b		2,747,175		2,776,395
CMC Magnetics Corp.^a,b		26,530,566		3,516,427
Compal Electronics Inc.^b		23,824,000		17,130,481
Compeq Manufacturing Co. Ltd.^b		7,236,000		7,804,493
Continental Holdings Corp.^b		7,446,600		3,059,672
Coretronic Corp.		3,132,200		3,803,808
CSBC Corp. Taiwan^a,b		6,684,000		2,790,629
CTBC Financial Holding Co. Ltd.^b		106,502,599		68,992,538
CTCI Corp.^b		3,941,000		6,372,670
Cub Elecparts Inc.^b		370,061		4,537,015
D-Link Corp.^b		7,130,991		2,575,559
Darwin Precisions Corp.^b		5,207,000		3,847,579
Delta Electronics Inc.		12,080,000		66,246,065
Depo Auto Parts Ind. Co. Ltd.		974,000		2,678,750
E Ink Holdings Inc.		5,745,000		8,280,841
E.Sun Financial Holding Co. Ltd.		56,240,926		34,662,554
Eclat Textile Co. Ltd.^b		1,110,683		13,617,175
Egis Technology Inc.^a,b		527,000		4,889,493
Elan Microelectronics Corp.^b		3,153,000		4,508,166
Elite Advanced Laser Corp.^b		1,066,560		3,763,830
Elite Material Co. Ltd.^b		2,078,000		10,466,086
Elite Semiconductor Memory Technology Inc.^b		3,763,000		5,517,504
Ennoconn Corp.		321,000		4,690,712
Epistar Corp.^a,b		6,292,000		6,369,350
Eternal Materials Co. Ltd.^b		5,801,145		6,131,963
EVA Airways Corp.		11,910,963		6,196,432
Evergreen Marine Corp. Taiwan Ltd.^a		10,755,870		8,197,257
Everlight Chemical Industrial Corp.^b		6,265,781		4,131,649
Everlight Electronics Co. Ltd.^b		2,616,000		3,926,731
Far Eastern Department Stores Ltd.^b		5,525,167		2,764,506
Far Eastern International Bank^b		15,879,201		4,898,617
Far Eastern New Century Corp.		17,698,916		14,163,121
Far EasTone Telecommunications Co. Ltd.		9,839,000		23,864,767
Faraday Technology Corp.^b		2,361,000		3,571,346
Farglory Land Development Co. Ltd.		1,959,782		2,373,506


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Feng Hsin Steel Co. Ltd.		3,236,000	$	5,640,134
Feng TAY Enterprise Co. Ltd.^b		2,090,506		9,905,642
Firich Enterprises Co. Ltd.^b		1,985,798		2,664,927
First Financial Holding Co. Ltd.^b		57,385,052		37,269,194
FLEXium Interconnect Inc.^b		2,060,619		9,115,366
Formosa Chemicals & Fibre Corp.		17,925,210		56,367,091
Formosa Petrochemical Corp.^b		8,514,000		30,045,429
Formosa Plastics Corp.		25,241,800		78,538,223
Formosa Taffeta Co. Ltd.		3,466,000		3,445,442
Formosan Rubber Group Inc.		7,472,602		3,726,520
Foxconn Technology Co. Ltd.^b		5,529,424		17,552,564
Fubon Financial Holding Co. Ltd.		41,487,000		66,672,835
General Interface Solution Holding Ltd.		1,083,000		12,972,746
Getac Technology Corp.^b		3,515,000		5,014,107
Giant Manufacturing Co. Ltd.^b		1,875,000		9,474,718
Gigabyte Technology Co. Ltd.		3,225,000		4,392,044
Gigasolar Materials Corp.^b		237,800		1,859,598
Gigastorage Corp.^a,b		4,062,000		2,146,821
Ginko International Co. Ltd.^b		316,000		2,455,416
Gintech Energy Corp.^a,b		4,386,762		2,362,069
Globalwafers Co. Ltd.^b		1,383,000		10,975,463
Gloria Material Technology Corp.^b		6,104,048		4,500,317
Goldsun Building Materials Co. Ltd.^a,b		11,822,000		3,592,158
Gourmet Master Co. Ltd.^b		489,855		5,810,931
Grand Pacific Petrochemical^b		7,001,000		5,927,153
Grape King Bio Ltd.^b		744,000		4,523,808
Great Wall Enterprise Co. Ltd.^b		4,424,500		4,537,535
Greatek Electronics Inc.^b		2,771,000		4,434,849
HannStar Display Corp.^b		18,890,640		7,699,224
Highwealth Construction Corp.^b		5,222,230		8,306,009
Hiwin Technologies Corp.		1,379,621		12,228,656
Ho Tung Chemical Corp.^a		17,248,812		5,075,365
Holy Stone Enterprise Co. Ltd.		3,878,900		4,954,823
Hon Hai Precision Industry Co. Ltd.		97,944,410		381,340,276
Hota Industrial Manufacturing Co. Ltd.^b		1,390,219		6,495,274
Hotai Motor Co. Ltd.		1,676,000		19,742,801
HTC Corp.^a,b		4,127,000		9,394,775
Hu Lane Associate Inc.		582,000		3,239,869


Security	Shares		Value
Hua Nan Financial Holdings Co. Ltd.^b		44,601,182	$	24,902,413
Huaku Development Co. Ltd.^b		2,303,000		4,723,672
Hung Sheng Construction Ltd.		6,143,000		4,905,607
IEI Integration Corp.^b		2,689,582		4,099,565
Innolux Corp.^b		56,870,241		27,701,135
International Games System Co. Ltd.^b		389,000		2,107,475
Inventec Corp.		15,735,000		12,487,268
ITEQ Corp.		2,641,000		5,198,164
Kenda Rubber Industrial Co. Ltd.^b		2,934,889		4,196,311
Kerry TJ Logistics Co. Ltd.		2,530,000		3,068,293
Kindom Construction Corp.^b		4,112,000		2,486,630
King Slide Works Co. Ltd.^b		402,000		5,594,619
King Yuan Electronics Co. Ltd.^b		7,032,000		6,815,534
King’s Town Bank Co. Ltd.^b		6,693,000		7,063,589
Kinpo Electronics^b		10,417,000		3,607,066
Kinsus Interconnect Technology Corp.^b		1,864,000		5,188,243
Kuoyang Construction Co. Ltd.^b		7,974,023		3,527,393
Land Mark Optoelectronics Corp.^b		408,900		5,399,339
Largan Precision Co. Ltd.		632,000		122,090,195
LCY Chemical Corp.^b		3,520,000		4,717,983
Lealea Enterprise Co. Ltd.^a,b		14,230,173		5,351,816
Lien Hwa Industrial Corp.		5,406,405		4,935,434
Lite-On Technology Corp.^b		13,278,238		19,645,228
Long Bon International Co. Ltd.		8,925,000		4,583,899
Makalot Industrial Co. Ltd.^b		1,326,208		6,262,124
Masterlink Securities Corp.		15,248,344		4,107,791
MediaTek Inc.^b		9,421,572		84,447,305
Mega Financial Holding Co. Ltd.^b		66,129,958		53,137,993
Merida Industry Co. Ltd.^b		1,334,850		5,860,619
Merry Electronics Co. Ltd.^b		1,094,070		8,591,888
Micro-Star International Co. Ltd.^b		4,448,000		10,125,504
Microbio Co. Ltd.^a		5,469,141		4,086,588
Mitac Holdings Corp.^b		4,202,560		5,006,197
Motech Industries Inc.^a,b		3,755,948		2,688,243
Nan Kang Rubber Tire Co. Ltd.^b		3,920,000		3,539,547
Nan Ya Plastics Corp.		29,002,440		73,229,263
Nan Ya Printed Circuit Board Corp.^b		1,906,000		1,553,650


CONSOLIDATED SCHEDULES OF INVESTMENTS			37

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Nanya Technology Corp.^b		4,667,000	$	10,005,464
Neo Solar Power Corp.^a,b		6,675,806		3,030,536
Nien Made Enterprise Co. Ltd.		960,000		10,322,410
Novatek Microelectronics Corp.^b		3,537,000		13,771,083
OBI Pharma Inc.^a		729,000		4,589,615
Oriental Union Chemical Corp.^b		4,868,000		4,322,953
Pan-International Industrial Corp.^b		3,003,366		2,776,564
Parade Technologies Ltd.		439,000		6,996,885
PChome Online Inc.^b		675,073		4,026,414
Pegatron Corp.^b		11,958,000		37,642,400
PharmaEngine Inc.^b		604,796		3,547,132
PharmaEssentia Corp.^a		944,000		4,629,444
Phison Electronics Corp.		982,000		13,243,447
Pixart Imaging Inc.^b		1,252,000		5,310,183
Pou Chen Corp.^b		12,789,000		16,590,654
Powertech Technology Inc.		4,493,000		13,637,258
Poya International Co. Ltd.^b		396,447		5,156,084
President Chain Store Corp.		3,612,000		30,220,683
President Securities Corp.^a		9,445,135		4,334,641
Primax Electronics Ltd.		3,050,000		7,236,158
Prince Housing & Development Corp.^b		8,951,995		3,411,244
Qisda Corp.^b		12,585,000		9,007,456
Quanta Computer Inc.^b		16,608,000		37,806,740
Radiant Opto-Electronics Corp.^b		2,952,000		7,443,825
Radium Life Tech Co. Ltd.^a,b		10,443,196		4,533,148
Realtek Semiconductor Corp.		3,028,110		11,739,583
Ritek Corp.^a		13,703,503		2,311,237
Ruentex Development Co. Ltd.^a,b		5,922,986		5,799,537
Ruentex Industries Ltd.^b		3,724,906		5,992,385
Sampo Corp.^b		9,194,000		4,569,734
Sanyang Motor Co. Ltd.^b		4,370,000		2,990,175
ScinoPharm Taiwan Ltd.^b		1,839,027		2,114,525
Sercomm Corp.		1,819,000		4,791,759
Shin Kong Financial Holding Co. Ltd.^b		51,472,443		14,957,862
Shin Zu Shing Co. Ltd.^b		1,103,000		3,143,179
Shining Building Business Co. Ltd.^a,b		6,912,281		2,404,949
Shinkong Synthetic Fibers Corp.		11,657,000		3,507,259
Sigurd Microelectronics Corp.		5,182,000		4,533,112
Silergy Corp.^b		398,000		8,875,509
Siliconware Precision Industries Co. Ltd.		12,284,819		19,457,714


Security	Shares		Value
Simplo Technology Co. Ltd.^b		1,753,000	$	5,953,892
Sinbon Electronics Co. Ltd.^b		1,818,809		4,489,919
Sino-American Silicon Products Inc.^b		3,618,000		6,449,796
SinoPac Financial Holdings Co. Ltd.^b		55,950,055		17,983,218
Sinyi Realty Inc.^b		2,599,087		2,712,855
Sitronix Technology Corp.^b		1,239,000		3,760,642
Soft-World International Corp.^b		1,334,000		3,182,610
St. Shine Optical Co. Ltd.		298,000		6,793,598
Standard Foods Corp.^b		3,342,096		8,538,242
Sunny Friend Environmental Technology Co. Ltd.		663,000		4,163,110
Synnex Technology International Corp.		8,172,250		9,125,711
TA Chen Stainless Pipe^b		6,654,347		4,189,423
Taichung Commercial Bank Co. Ltd.		16,029,200		5,072,364
Taigen Biopharmaceuticals Holdings Ltd.^a		2,113,000		1,606,857
TaiMed Biologics Inc.^a,b		1,138,000		8,182,710
Tainan Spinning Co. Ltd.		7,881,894		3,538,874
Taishin Financial Holding Co. Ltd.^b		57,044,448		25,328,725
Taiwan Acceptance Corp.		1,536,000		5,751,284
Taiwan Business Bank		23,678,718		6,543,640
Taiwan Cement Corp.^b		20,073,000		23,179,829
Taiwan Cogeneration Corp.^b		3,886,000		3,000,225
Taiwan Cooperative Financial Holding Co. Ltd.		48,313,966		25,454,523
Taiwan Fertilizer Co. Ltd.		3,209,000		4,279,872
Taiwan Glass Industry Corp.^a,b		8,356,053		4,540,882
Taiwan High Speed Rail Corp.		9,335,000		8,227,940
Taiwan Hon Chuan Enterprise Co. Ltd.		2,517,674		4,563,331
Taiwan Land Development Corp.^b		11,636,973		4,029,503
Taiwan Mobile Co. Ltd.		9,551,000		34,179,661
Taiwan Paiho Ltd.^b		1,545,000		6,476,109
Taiwan PCB Techvest Co. Ltd.^b		4,491,042		4,814,116
Taiwan Secom Co. Ltd.^b		1,993,185		5,891,252
Taiwan Semiconductor Co. Ltd.^b		2,557,000		3,609,404
Taiwan Semiconductor Manufacturing Co. Ltd.		155,291,000		1,114,036,300


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Taiwan Shin Kong Security Co. Ltd.		3,939,770	$	5,274,088
Taiwan Surface Mounting Technology Corp.^b		5,048,261		4,165,204
Taiwan TEA Corp.^b		6,493,000		3,463,909
Tatung Co. Ltd.^a,b		13,551,000		6,263,841
Teco Electric and Machinery Co. Ltd.		11,652,000		10,887,915
Test Research Inc.		2,113,400		2,752,133
Test Rite International Co. Ltd.		6,146,000		4,602,525
Ton Yi Industrial Corp.		6,120,000		2,899,897
Tong Hsing Electronic Industries Ltd.^b		1,063,000		4,279,615
Tong Yang Industry Co. Ltd.		2,508,400		4,696,133
Topco Scientific Co. Ltd.		1,648,338		4,314,878
TPK Holding Co. Ltd.^a,b		1,845,000		7,580,768
Transcend Information Inc.^b		1,250,000		3,727,758
Tripod Technology Corp.^b		3,154,000		11,809,603
TSRC Corp.^b		4,332,900		4,579,990
TTY Biopharm Co. Ltd.^b		1,632,124		5,181,003
Tung Ho Steel Enterprise Corp.		6,109,000		4,878,455
Tung Thih Electronic Co. Ltd.^b		405,000		2,449,137
TWi Pharmaceuticals Inc.^a,b		682,000		1,645,170
TXC Corp.		2,923,000		3,961,387
U-Ming Marine Transport Corp.		3,538,000		4,501,779
Uni-President Enterprises Corp.		29,927,369		63,664,704
Unimicron Technology Corp.		9,636,000		5,507,837
United Integrated Services Co. Ltd.^b		2,385,000		4,291,246
United Microelectronics Corp.^b		72,194,000		36,002,508
UPC Technology Corp.^b		8,848,099		4,383,150
USI Corp.		7,850,040		3,914,745
Vanguard International Semiconductor Corp.^b		5,508,000		9,946,850
Visual Photonics Epitaxy Co. Ltd.^b		1,849,000		3,737,334
Voltronic Power Technology Corp.^b		353,974		6,380,657
Wah Lee Industrial Corp.		1,945,000		3,119,321
Walsin Lihwa Corp.^b		18,898,000		9,111,167
Walsin Technology Corp.		2,500,400		5,708,524
Waterland Financial Holdings Co. Ltd.^b		19,400,939		5,676,473
Win Semiconductors Corp.^b		2,167,427		12,496,514
Winbond Electronics Corp.^b		18,294,000		14,033,139
Wistron Corp.^b		16,614,826		15,690,465


Security	Shares		Value
Wistron NeWeb Corp.^b		1,903,736	$	5,727,798
Wowprime Corp.		587,260		3,531,850
WPG Holdings Ltd.		8,733,000		11,372,375
WT Microelectronics Co. Ltd.^b		2,919,990		4,876,487
XPEC Entertainment Inc.^d		31,000		—
Yageo Corp.		1,699,370		10,924,079
Yang Ming Marine Transport Corp.^a		6,760,632		3,752,297
Yeong Guan Energy Technology Group Co. Ltd.^b		674,937		1,858,487
YFY Inc.^a,b		10,080,000		4,008,085
Yieh Phui Enterprise Co. Ltd.^b		9,427,900		3,842,512
Yuanta Financial Holding Co. Ltd.		61,438,912		26,669,199
Yulon Motor Co. Ltd.^b		3,750,000		3,230,723
YungShin Global Holding Corp.b		2,672,650		3,546,825
Yungtay Engineering Co. Ltd.		2,926,000		5,448,862
Zhen Ding Technology Holding Ltd.		2,752,950		6,376,328
Zinwell Corp.		2,776,000		2,621,558

				4,646,395,834
THAILAND — 2.33%
Advanced Info Service PCL NVDR		6,444,000		36,387,592
Airports of Thailand PCL NVDR		27,657,000		45,393,962
Amata Corp. PCL NVDR		5,956,200		3,300,529
AP Thailand PCL NVDR^b		16,050,790		3,794,570
Bangchak Corp. PCL NVDR		3,495,000		3,999,699
Bangkok Airways PCL^b		5,134,100		2,875,900
Bangkok Bank PCL Foreign		1,611,600		9,100,286
Bangkok Chain Hospital PCL NVDR		10,506,450		4,682,893
Bangkok Dusit Medical Services PCL NVDR		23,238,400		14,626,790
Bangkok Expressway & Metro PCL		51,546,385		12,108,472
Bangkok Land PCL NVDR		78,080,700		4,256,168
Banpu PCL NVDR		13,241,900		7,018,745
Beauty Community PCL^b		15,566,500		6,469,438
Berli Jucker PCL NVDR		8,195,000		12,154,909
BTS Group Holdings PCL NVDR		36,693,900		9,558,869
Bumrungrad Hospital PCL NVDR		2,239,700		14,704,249


CONSOLIDATED SCHEDULES OF INVESTMENTS			39

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Central Pattana PCL NVDR		9,083,100	$	19,695,323
Charoen Pokphand Foods PCL NVDR		18,466,100		15,154,381
Chularat Hospital PCL NVDR^b		45,061,400		3,338,384
CP ALL PCL NVDR		31,158,600		58,178,985
Delta Electronics Thailand PCL NVDR		3,461,900		9,278,997
Dynasty Ceramic PCL NVDR		30,241,720		3,588,387
Eastern Polymer Group PCL^b		7,986,700		2,766,061
Electricity Generating PCL NVDR		851,900		6,003,451
Energy Absolute PCL NVDR^b		8,775,000		9,976,095
Esso Thailand PCL NVDR^a		10,631,800		3,874,259
Global Power Synergy PCL NVDR^b		3,260,900		3,829,998
Glow Energy PCL NVDR		3,025,100		7,812,147
Group Lease PCL^b		3,013,100		1,778,550
Gunkul Engineering PCL NVDR^b		21,912,735		2,718,882
Hana Microelectronics PCL NVDR		4,478,900		5,901,276
Home Product Center PCL NVDR		31,524,874		9,494,014
Indorama Ventures PCL NVDR		9,157,200		10,755,332
Inter Far East Energy Corp.^a,b,d		7,049,000		2
IRPC PCL NVDR		66,288,400		11,878,211
Italian-Thai Development PCL NVDR^b		17,219,600		2,167,683
Jasmine International PCL NVDR^b		15,896,100		3,734,064
Kasikornbank PCL Foreign		7,475,200		47,500,894
Kasikornbank PCL NVDR		3,552,100		21,501,946
KCE Electronics PCL NVDR		1,986,400		5,234,453
Khon Kaen Sugar Industry PCL NVDR^b		13,669,086		1,835,992
Kiatnakin Bank PCL NVDR		2,823,400		5,973,313
Krung Thai Bank PCL NVDR		21,220,600		11,950,767
Krungthai Card PCL NVDR^b		1,055,800		3,783,774
LPN Development PCL NVDR^b		7,107,400		2,311,698
Major Cineplex Group PCL NVDR^b		2,827,900		2,554,947
Minor International PCL NVDR^b		13,585,560		16,263,394
Muangthai Leasing PCL^b		5,178,300		5,302,280
PTG Energy PCL^b		5,576,300		3,526,647
PTT Exploration & Production PCL NVDR		8,874,501		23,385,600


Security	Shares		Value
PTT Global Chemical PCL NVDR		13,523,800	$	31,157,076
PTT PCL NVDR		6,651,200		79,922,566
Quality Houses PCL NVDR^b		39,860,117		2,881,020
Robinson PCL NVDR		3,725,400		6,451,152
Siam Cement PCL (The) Foreign		2,279,300		34,321,638
Siam Cement PCL (The) NVDR		238,400		3,589,821
Siam Commercial Bank PCL (The) NVDR		11,001,000		49,861,482
Siam Global House PCL NVDR^b		12,768,295		5,767,939
Singha Estate PCL^a,b		18,806,500		2,310,812
Sino-Thai Engineering & Construction PCL NVDR		6,076,828		4,758,245
Sri Trang Agro-Industry PCL NVDR^b		5,250,300		1,881,601
Srisawad Corp PCL NVDR^b		4,309,630		6,651,665
Supalai PCL NVDR		5,779,500		4,394,892
Superblock PCL^a		79,736,300		3,217,788
Thai Airways International PCL NVDR^a,b		4,842,300		2,639,531
Thai Oil PCL NVDR		5,706,100		16,196,354
Thai Union Group PCL NVDR		13,228,700		7,888,217
Thai Vegetable Oil PCL NVDR^b		4,027,100		3,456,478
Thaicom PCL NVDR		4,530,100		2,019,138
Thanachart Capital PCL NVDR		4,441,900		6,253,842
Thoresen Thai Agencies PCL NVDR^b		9,222,223		2,555,171
TICON Industrial Connection PCL NVDR^b		5,189,160		2,312,892
Tisco Financial Group PCL NVDR^b		2,643,150		5,950,172
TMB Bank PCL NVDR		99,985,800		7,106,354
True Corp. PCL NVDR^a		63,194,311		10,657,676
TTW PCL NVDR^b		11,943,400		3,920,586
Unique Engineering & Construction PCL^b		5,376,200		2,946,750
VGI Global Media PCL NVDR^b		21,445,700		3,552,217
Vibhavadi Medical Center PCL NVDR^b		40,992,700		3,432,004
WHA Corp. PCL NVDR		53,809,300		5,153,247

				856,691,584
TURKEY — 1.22%
Akbank Turk AS		13,982,924		41,877,289
Aksa Akrilik Kimya Sanayii AS		828,163		3,007,969


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Albaraka Turk Katilim Bankasi AS		8,688,504	$	3,749,655
Anadolu Efes Biracilik ve Malt Sanayii AS		1,407,300		8,641,369
Arcelik AS		1,564,440		10,875,023
Aselsan Elektronik Sanayi ve TAS		1,496,212		11,700,837
BIM Birlesik Magazalar AS		1,395,022		30,910,250
Cimsa Cimento Sanayi VE Ticaret AS		703,627		2,920,443
Coca-Cola Icecek AS		589,537		6,854,069
Emlak Konut Gayrimenkul Yatirim Ortakligi AS^a		12,346,315		10,513,437
Eregli Demir ve Celik Fabrikalari TAS		9,214,549		21,938,449
Ford Otomotiv Sanayi AS		518,207		7,135,468
Haci Omer Sabanci Holding AS		5,751,594		17,658,512
Is Gayrimenkul Yatirim Ortakligi AS		5,985,386		2,461,731
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D^a		6,707,023		4,623,457
KOC Holding AS		4,984,882		26,046,624
Otokar Otomotiv Ve Savunma Sanayi AS^b		83,111		2,780,357
Petkim Petrokimya Holding AS		5,466,826		9,880,521
Soda Sanayii AS		3,149,376		4,752,502
TAV Havalimanlari Holding AS		1,261,571		7,753,845
Tekfen Holding AS		1,353,407		5,021,547
Tofas Turk Otomobil Fabrikasi AS		862,089		7,890,403
Trakya Cam Sanayii AS		4,669,734		4,977,371
Tupras Turkiye Petrol Rafinerileri AS		826,295		28,073,280
Turk Hava Yollari AO^a		3,427,923		9,690,382
Turk Telekomunikasyon AS^a		3,512,598		7,304,877
Turkcell Iletisim Hizmetleri AS		6,010,170		22,995,857
Turkiye Garanti Bankasi AS		14,544,911		45,245,498
Turkiye Halk Bankasi AS		4,173,929		17,916,505
Turkiye Is Bankasi Class C		10,222,679		22,177,192
Turkiye Sinai Kalkinma Bankasi AS		10,852,942		4,778,054
Turkiye Sise ve Cam Fabrikalari AS		5,773,908		7,425,280


Security	Shares		Value
Turkiye Vakiflar Bankasi Tao Class D		5,311,483	$	11,076,647
Ulker Biskuvi Sanayi AS		1,165,579		6,968,053
Yapi ve Kredi Bankasi AS^a,b		5,783,737		8,141,508
Yazicilar Holding AS^b		474,784		3,102,381

				448,866,642
UNITED ARAB EMIRATES — 0.71%
Abu Dhabi Commercial Bank PJSC		13,295,763		26,424,293
Agthia Group PJSC		1,403,669		2,101,816
Air Arabia PJSC		17,115,996		5,219,002
Al Waha Capital PJSC		8,106,056		3,884,092
Aldar Properties PJSC		21,109,840		13,275,906
Amlak Finance PJSC^a		8,399,242		2,583,960
Arabtec Holding PJSC^a		5,065,858		4,413,369
DAMAC Properties Dubai Co. PJSC		7,733,614		8,506,112
Dana Gas PJSC^a		31,032,012		5,407,010
Deyaar Development PJSC^a		16,313,813		2,318,426
DP World Ltd.		1,093,992		25,096,177
Dubai Islamic Bank PJSC		8,267,864		13,708,119
DXB Entertainments PJSC^a		23,658,439		5,056,185
Emaar Malls PJSC		11,588,001		7,760,878
Emaar Properties PJSC		21,913,067		50,709,501
Emirates Telecommunications Group Co. PJSC		11,117,032		54,478,935
Eshraq Properties Co. PJSC^a		9,866,948		2,337,057
First Abu Dhabi Bank PJSC		9,328,258		26,411,991
Orascom Construction Ltd.^a		517,732		3,261,712

				262,954,541

TOTAL COMMON STOCKS
(Cost: $29,766,895,970)				35,382,693,795

PREFERRED STOCKS — 3.41%

BRAZIL — 2.41%
Alpargatas SA, Preference Shares		1,127,700		4,945,974
Banco ABC Brasil SA, Preference Shares		682,534		3,689,842
Banco Bradesco SA, Preference Shares		19,102,062		203,863,796
Banco do Estado do Rio Grande do Sul SA Class B, Preference Shares		1,231,900		6,624,529


CONSOLIDATED SCHEDULES OF INVESTMENTS			41

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Bradespar SA, Preference Shares		1,531,400	$	13,082,691
Braskem SA Class A, Preference Shares		1,109,600		13,439,545
Centrais Eletricas Brasileiras SA Class B, Preference Shares		1,381,600		9,014,683
Cia. Brasileira de Distribuicao, Preference Shares		999,000		22,856,874
Cia. de Saneamento do Parana, Preference Shares		1,993,500		6,614,483
Cia. Energetica de Minas Gerais, Preference Shares		4,725,220		12,584,768
Cia. Energetica de Sao Paulo Class B, Preference Shares		1,307,000		6,118,677
Cia. Energetica do Ceara Class A, Preference Shares		93,400		1,543,284
Cia. Paranaense de Energia Class B, Preference Shares		657,900		6,009,327
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, Preference Shares		761,400		3,852,433
Gerdau SA, Preference Shares		5,780,800		21,771,355
Itau Unibanco Holding SA, Preference Shares		20,353,413		261,011,684
Itausa-Investimentos Itau SA, Preference Shares		24,937,292		80,840,432
Lojas Americanas SA, Preference Shares		4,590,510		25,925,523
Marcopolo SA, Preference Shares		3,869,600		4,784,040
Metalurgica Gerdau SA, Preference Shares		4,320,900		7,772,662
Petroleo Brasileiro SA, Preference Shares		24,740,100		107,328,057
Suzano Papel e Celulose SA Class A, Preference Shares		2,670,300		14,851,738
Telefonica Brasil SA, Preference Shares		2,776,900		43,103,750
Usinas Siderurgicas de Minas Gerais SA Class A, Preference Shares		2,697,300		5,906,465

				887,536,612
CHILE — 0.10%
Embotelladora Andina SA Class B, Preference Shares		1,735,153		8,176,291


Security	Shares		Value
Sociedad Quimica y Minera de Chile SA Series B, Preference Shares		602,679	$	28,164,148

				36,340,439
COLOMBIA — 0.15%
Avianca Holdings SA, Preference Shares		2,775,944		2,648,878
Bancolombia SA, Preference Shares		3,066,303		34,986,402
Grupo Aval Acciones y Valores SA, Preference Shares		25,119,421		11,259,743
Grupo de Inversiones Suramericana SA, Preference Shares		523,875		7,158,641

				56,053,664
RUSSIA — 0.08%
Surgutneftegas OJSC, Preference Shares		43,156,100		21,304,957
Transneft PJSC, Preference Shares		2,068		6,336,644

				27,641,601
SOUTH KOREA — 0.67%
AmorePacific Corp., Preference Shares		60,685		9,229,760
Hyundai Motor Co., Preference Shares		137,068		11,718,123
Hyundai Motor Co. Series 2, Preference Shares		223,098		20,180,912
LG Chem Ltd., Preference Shares		48,140		11,228,113
LG Household & Health Care Ltd., Preference Shares		13,831		7,359,524
Samsung Electronics Co. Ltd., Preference Shares		111,993		187,217,812

				246,934,244

TOTAL PREFERRED STOCKS
(Cost: $1,034,220,576)				1,254,506,560

RIGHTS — 0.00%

CHINA — 0.00%
Carnival Group International Holdings Ltd. (Expires 09/21/17)^a		12,096,750		370,950


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Digital China Holdings Ltd. (Expires 09/07/17)^a,b		1,704,000	$	139,343
Fosun International Ltd. (Expires 09/07/17)^a		10,241		—

				510,293

TOTAL RIGHTS
(Cost: $0)				510,293

WARRANTS — 0.00%

THAILAND — 0.00%
Superblock PCL NVDR (Expires 08/31/20)^a		15,691,820		5
Vibhavadi Medical Center PCL NVDR (Expires 06/14/22)^a,b		2,800,631		68,318

				68,323

TOTAL WARRANTS
(Cost: $0)				68,323

SHORT-TERM INVESTMENTS — 7.23%

MONEY MARKET FUNDS — 7.23%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^f,g,h		2,544,586,672		2,545,350,048
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^f,g		111,111,661		111,111,661

				2,656,461,709

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,656,155,849)				2,656,461,709

TOTAL INVESTMENTS IN SECURITIES — 106.85%
(Cost: $33,457,272,395)ⁱ				39,294,240,680
Other Assets, Less Liabilities — (6.85)%				(2,518,943,140	)

NET ASSETS — 100.00%			$	36,775,297,540

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

^d	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	Affiliated issuer. See Schedule 1.

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

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

ⁱ

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $34,203,974,384. Net unrealized appreciation was $5,090,266,296, of which $6,807,984,137 represented gross unrealized appreciation on investments and $1,717,717,841 represented gross unrealized depreciation on investments.


CONSOLIDATED SCHEDULES OF INVESTMENTS			43

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		871,454,644		1,673,132,028	^b		—		2,544,586,672	$	2,545,350,048	$	(123,726	)	$	305,860	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		8,588,279		102,523,382	^b		—		111,111,661		111,111,661		3,710			—		368,419

										$	2,656,461,709	$	(120,016	)	$	305,860	$	368,419

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description

Number
of
contracts

Expiration
date

Notional
amount
(000)

Value /
unrealized
appreciation
(depreciation)

Long Contracts:

MSCI Emerging Markets E-Mini

84,750

Sep 2017

92,055

6,970,178

Schedule 3 — Fair Value Measurements


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® CORE MSCI EMERGING MARKETS ETF

August 31, 2017


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	35,356,172,784	$	21,179,517	$	5,341,494	$	35,382,693,795
Preferred stocks		1,254,506,560		—		—		1,254,506,560
Rights		139,343		370,950		—		510,293
Warrants		68,318		5		—		68,323
Money market funds		2,656,461,709		—		—		2,656,461,709

Total	$	39,267,348,714	$	21,550,472	$	5,341,494	$	39,294,240,680

Derivative financial instruments^a:
Assets:
Futures contracts	$	6,970,178	$	—	$	—	$	6,970,178

Total	$	6,970,178	$	—	$	—	$	6,970,178

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

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			45

Consolidated Schedule of Investments

iSHARES^® MSCI BRIC ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 94.26%

BRAZIL — 9.57%
Ambev SA		496,065	$	3,131,100
B3 SA — Brasil Bolsa Balcao		223,269		1,569,613
Banco Bradesco SA		88,018		902,153
Banco do Brasil SA		99,289		968,765
Banco Santander Brasil SA Units		49,600		442,017
BB Seguridade Participacoes SA		74,400		655,459
BR Malls Participacoes SA		77,118		333,330
BRF SA^a		49,600		670,277
CCR SA		124,000		688,090
Centrais Eletricas Brasileiras SA^a		24,800		138,879
Cia. de Saneamento Basico do Estado de Sao Paulo		37,200		380,105
Cia. Siderurgica Nacional SA^a		62,000		171,234
Cielo SA		136,421		972,500
Cosan SA Industria e Comercio		12,400		152,081
CPFL Energia SA		24,854		213,986
Duratex SA		37,248		101,808
EDP — Energias do Brasil SA		37,200		180,180
Embraer SA		78,500		447,331
Engie Brasil Energia SA		12,400		142,268
Equatorial Energia SA		24,800		481,742
Fibria Celulose SA		24,841		329,929
Hypermarcas SA		37,200		348,892
JBS SA		86,852		239,319
Klabin SA Units		62,000		337,345
Kroton Educacional SA		148,864		850,192
Localiza Rent A Car SA		13,293		251,584
Lojas Americanas SA		24,800		113,815
Lojas Renner SA		84,360		820,422
M. Dias Branco SA		12,400		193,501
Multiplan Empreendimentos Imobiliarios SA		12,910		299,891
Natura Cosmeticos SA		12,400		116,258
Odontoprev SA		24,800		116,810
Petroleo Brasileiro SA^a		322,400		1,431,432
Porto Seguro SA		12,400		136,948
Qualicorp SA		24,800		274,684
Raia Drogasil SA		24,850		547,712
Rumo SA^a		83,500		274,136
Sul America SA		24,889		142,225
TIM Participacoes SA		99,269		355,879
Transmissora Alianca de Energia Eletrica SA Units		17,400		124,426


Security	Shares		Value
Ultrapar Participacoes SA		37,200	$	868,388
Vale SA		333,329		3,716,313
WEG SA		62,440		406,020

				25,039,039
CHINA — 60.13%
3SBio Inc.^a,b,c		124,000		170,478
58.com Inc. ADR^a,c		9,300		582,459
AAC Technologies Holdings Inc.		76,000		1,385,711
Agricultural Bank of China Ltd. Class H		2,728,000		1,282,707
Air China Ltd. Class H		248,000		220,544
Alibaba Group Holding Ltd. ADR^a,c		121,396		20,848,549
Alibaba Health Information Technology Ltd.^a,c		326,000		152,036
Alibaba Pictures Group Ltd.^a		1,240,000		217,059
Aluminum Corp. of China Ltd. Class H^a,^c		496,000		366,940
Anhui Conch Cement Co. Ltd. Class H		124,000		462,636
ANTA Sports Products Ltd.		124,040		488,144
Autohome Inc. ADR^a		4,960		318,779
AviChina Industry & Technology Co. Ltd. Class H^c		248,000		146,713
Baidu Inc. ADR^a		29,140		6,645,377
Bank of China Ltd. Class H		8,432,000		4,438,774
Bank of Communications Co. Ltd. Class H		992,200		758,116
Beijing Capital International Airport Co. Ltd. Class H		248,000		401,163
Beijing Enterprises Holdings Ltd.		62,000		346,185
Beijing Enterprises Water Group Ltd.^c		496,000		421,443
Brilliance China Automotive Holdings Ltd.		248,000		641,670
Byd Co. Ltd. Class H		62,000		369,158
CGN Power Co. Ltd. Class H^b		1,116,000		308,002
China Cinda Asset Management Co. Ltd. Class H		992,000		368,842
China CITIC Bank Corp. Ltd. Class H		992,000		655,296
China Coal Energy Co. Ltd. Class H		248,000		124,848
China Communications Construction Co. Ltd. Class H		506,000		673,680


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2017


Security	Shares		Value
China Communications Services Corp. Ltd. Class H		248,800	$	134,788
China Conch Venture Holdings Ltd.		186,000		338,422
China Construction Bank Corp. Class H		9,052,370		7,934,537
China Everbright Bank Co. Ltd. Class H		381,000		183,041
China Everbright International Ltd.		248,000		327,648
China Evergrande Group^a		496,000		1,498,815
China Galaxy Securities Co. Ltd. Class H		310,000		280,830
China Gas Holdings Ltd.		248,000		626,143
China Huarong Asset Management Co. Ltd. Class H^b		744,000		317,508
China Huishan Dairy Holdings Co. Ltd.^c,d		345,000		—
China Jinmao Holdings Group Ltd.		496,000		220,544
China Life Insurance Co. Ltd. Class H		744,000		2,386,063
China Longyuan Power Group Corp. Ltd. Class H		372,000		278,532
China Medical System Holdings Ltd.		124,000		228,149
China Mengniu Dairy Co. Ltd.		248,000		579,246
China Merchants Bank Co. Ltd. Class H		434,456		1,637,582
China Merchants Port Holdings Co. Ltd.		248,000		811,198
China Minsheng Banking Corp. Ltd. Class H		620,000		618,697
China Mobile Ltd.		682,000		7,232,653
China National Building Material Co. Ltd. Class H		248,000		155,902
China Oilfield Services Ltd. Class H		248,000		203,433
China Overseas Land & Investment Ltd.		496,800		1,736,097
China Pacific Insurance Group Co. Ltd. Class H		297,600		1,401,218
China Petroleum & Chemical Corp. Class H		2,728,600		2,088,343
China Power International Development Ltd.		372,000		126,908
China Railway Construction Corp. Ltd. Class H		198,000		259,566


Security	Shares		Value
China Railway Group Ltd. Class H		372,000	$	297,545
China Resources Beer Holdings Co. Ltd.		248,000		622,341
China Resources Gas Group Ltd.		89,000		313,859
China Resources Land Ltd.		276,444		863,617
China Resources Power Holdings Co. Ltd.		248,200		455,398
China Shenhua Energy Co. Ltd. Class H		372,000		957,752
China Southern Airlines Co. Ltd. Class H		248,000		193,610
China State Construction International Holdings Ltd.		248,000		359,335
China Taiping Insurance Holdings Co. Ltd.		173,640		526,925
China Telecom Corp. Ltd. Class H		1,488,000		764,301
China Unicom Hong Kong Ltd.^a		539,900		786,418
China Vanke Co. Ltd. Class H		124,001		371,538
Chongqing Changan Automobile Co. Ltd. Class B		99,200		129,792
Chongqing Rural Commercial Bank Co. Ltd. Class H		248,000		172,696
CITIC Ltd.		620,000		952,207
CITIC Securities Co. Ltd. Class H		248,000		550,094
CNOOC Ltd.		1,860,000		2,224,457
COSCO SHIPPING Ports Ltd.		248,000		293,109
Country Garden Holdings Co. Ltd.		496,046		659,159
CRRC Corp. Ltd. Class H		447,400		403,586
CSPC Pharmaceutical Group Ltd.		496,000		774,441
Ctrip.com International Ltd. ADR^a		41,044		2,111,714
Dongfeng Motor Group Co. Ltd. Class H		248,000		321,944
ENN Energy Holdings Ltd.		74,000		476,065
Far East Horizon Ltd.		248,000		226,565
Fosun International Ltd.		248,000		430,315
Fullshare Holdings Ltd.^c		705,000		281,047
Fuyao Glass Industry Group Co. Ltd. Class H^b		49,600		158,120
GCL-Poly Energy Holdings Ltd.^a,c		1,488,000		167,310
Geely Automobile Holdings Ltd.		620,000		1,524,165
GF Securities Co. Ltd. Class H		148,800		317,508
GOME Electrical Appliances Holding Ltd.^c		1,364,400		142,952
Great Wall Motor Co. Ltd. Class H		310,000		388,963
Guangdong Investment Ltd.^c		248,000		366,307


CONSOLIDATED SCHEDULES OF INVESTMENTS			47

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2017


Security	Shares		Value
Guangzhou Automobile Group Co. Ltd. Class H		248,454	$	490,149
Guangzhou R&F Properties Co. Ltd. Class H		99,200		231,698
Haier Electronics Group Co. Ltd.		144,000		382,702
Haitong Securities Co. Ltd. Class H		347,200		582,035
Hanergy Thin Film Power Group Ltd.^a,d		7,709		—
Hengan International Group Co. Ltd.		62,000		518,089
Huaneng Power International Inc. Class H		496,000		324,479
Huaneng Renewables Corp. Ltd. Class H		496,000		152,100
Huatai Securities Co. Ltd. Class H^b		173,600		386,396
Industrial & Commercial Bank of China Ltd. Class H		7,812,050		5,849,218
JD.com Inc. ADR^a		68,696		2,879,049
Jiangxi Copper Co. Ltd. Class H		124,000		215,158
Kingsoft Corp. Ltd.^c		124,000		294,059
Kunlun Energy Co. Ltd.		248,000		240,191
Lenovo Group Ltd.		744,000		406,866
Longfor Properties Co. Ltd.		124,000		297,862
Momo Inc. ADR^a		10,664		410,884
NetEase Inc. ADR		8,432		2,325,883
New China Life Insurance Co. Ltd. Class H		86,800		555,639
New Oriental Education & Technology Group Inc. ADR		14,136		1,155,618
Nine Dragons Paper (Holdings) Ltd.		124,000		206,919
People’s Insurance Co. Group of China Ltd. (The) Class H		744,000		350,780
PetroChina Co. Ltd. Class H		2,232,000		1,425,934
PICC Property & Casualty Co. Ltd. Class H		497,548		934,518
Ping An Insurance Group Co. of China Ltd. Class H		558,000		4,431,089
Semiconductor Manufacturing International Corp.^a,c		276,200		259,739
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		184,000		146,938
Shanghai Electric Group Co. Ltd. Class H^a		252,000		114,305


Security	Shares		Value
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		65,500	$	246,050
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		86,880		140,137
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		74,400		183,090
Shenzhou International Group Holdings Ltd.		55,000		440,621
Shimao Property Holdings Ltd.		124,000		256,034
Sihuan Pharmaceutical Holdings Group Ltd.		372,000		143,069
SINA Corp./China^a		6,076		618,719
Sino Biopharmaceutical Ltd.		496,000		435,385
Sino-Ocean Group Holding Ltd.		310,000		213,890
Sinopec Engineering Group Co. Ltd. Class H		124,000		111,857
Sinopec Shanghai Petrochemical Co. Ltd. Class H		249,000		155,258
Sinopharm Group Co. Ltd. Class H		148,800		672,090
SOHO China Ltd.		248,000		144,495
Sun Art Retail Group Ltd.		248,000		228,466
Sunac China Holdings Ltd.^c		248,000		744,654
Sunny Optical Technology Group Co. Ltd.		124,000		1,777,664
TAL Education Group Class A ADR		27,528		837,677
Tencent Holdings Ltd.		607,600		25,541,644
Tingyi Cayman Islands Holding Corp.^c		248,000		330,183
TravelSky Technology Ltd. Class H		124,000		339,055
Tsingtao Brewery Co. Ltd. Class H		40,000		165,848
Vipshop Holdings Ltd. ADR^a		43,152		401,745
Want Want China Holdings Ltd.^c		496,000		328,282
Weibo Corp. ADR^a,c		4,588		463,847
Weichai Power Co. Ltd. Class H		249,100		256,533
Yanzhou Coal Mining Co. Ltd. Class H		248,000		249,063
Yum China Holdings Inc.^a		39,928		1,411,854
YY Inc. ADR^a		4,092		305,754
Zhuzhou CRRC Times Electric Co. Ltd. Class H		49,600		259,520
Zijin Mining Group Co. Ltd. Class H		527,000		193,254
ZTE Corp. Class H^a		74,448		203,089

				157,353,451


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2017


Security	Shares		Value
INDIA — 17.99%
ACC Ltd.		5,704	$	160,632
Adani Ports & Special Economic Zone Ltd.		74,525		458,100
Aditya Birla Capital Ltd.^a		48,608		141,077
Ambuja Cements Ltd.		63,860		280,059
Apollo Hospitals Enterprise Ltd.^a		7,440		125,997
Ashok Leyland Ltd.		120,798		202,381
Asian Paints Ltd.		31,372		573,469
Aurobindo Pharma Ltd.		28,398		322,178
Axis Bank Ltd.		179,552		1,405,351
Bajaj Auto Ltd.		10,168		447,670
Bajaj Finance Ltd.		17,360		483,898
Bajaj Finserv Ltd.		3,844		330,896
Bharat Forge Ltd.		10,664		188,136
Bharat Heavy Electricals Ltd.		64,604		130,267
Bharat Petroleum Corp. Ltd.		80,352		664,926
Bharti Airtel Ltd.		124,992		836,262
Bharti Infratel Ltd.		59,923		351,704
Bosch Ltd.		868		298,540
Cadila Healthcare Ltd.		20,212		158,088
Cipla Ltd.		34,844		311,723
Coal India Ltd.		81,096		301,163
Container Corp. of India Ltd.		4,734		97,744
Dabur India Ltd.		58,032		286,047
Dr. Reddy’s Laboratories Ltd.		12,279		388,176
Eicher Motors Ltd.		1,488		732,076
GAIL (India) Ltd.		51,832		306,729
Glenmark Pharmaceuticals Ltd.		13,888		132,327
Godrej Consumer Products Ltd.		26,288		382,150
Grasim Industries Ltd.		34,720		649,144
Havells India Ltd.		25,048		191,348
HCL Technologies Ltd.		60,760		822,442
Hero Motocorp Ltd.		5,704		356,474
Hindalco Industries Ltd.		126,233		469,971
Hindustan Petroleum Corp. Ltd.		64,170		490,212
Hindustan Unilever Ltd.		69,316		1,322,590
Housing Development Finance Corp. Ltd.		161,324		4,484,177
ICICI Bank Ltd.		254,076		1,184,605
Idea Cellular Ltd.		146,692		208,015
IDFC Bank Ltd.		151,900		130,333
Indiabulls Housing Finance Ltd.		33,108		629,519
Indian Oil Corp. Ltd.		63,240		449,819
Infosys Ltd.		195,920		2,804,122


Security	Shares		Value
ITC Ltd.		358,608	$	1,583,342
JSW Steel Ltd.		88,412		351,843
Larsen & Toubro Ltd.		52,080		925,731
LIC Housing Finance Ltd.		31,744		334,615
Lupin Ltd.		23,436		359,076
Mahindra & Mahindra Financial Services Ltd.		30,345		202,929
Mahindra & Mahindra Ltd.		41,083		864,252
Marico Ltd.		52,080		256,994
Maruti Suzuki India Ltd.		11,284		1,359,225
Motherson Sumi Systems Ltd.		63,426		305,689
Nestle India Ltd.		2,604		290,080
NTPC Ltd.		172,236		454,662
Oil & Natural Gas Corp. Ltd.		155,744		382,378
Piramal Enterprises Ltd.		7,812		331,623
Power Finance Corp. Ltd.		69,316		132,394
Reliance Industries Ltd.		138,632		3,457,871
Rural Electrification Corp. Ltd.		71,672		188,973
Shree Cement Ltd.		992		272,976
Shriram Transport Finance Co. Ltd.		16,244		250,294
Siemens Ltd.		8,435		169,554
State Bank of India		184,512		801,677
Sun Pharmaceuticals Industries Ltd.		102,920		774,642
Tata Consultancy Services Ltd.		50,220		1,961,115
Tata Motors Ltd.^a		169,884		1,000,682
Tata Motors Ltd. Class A^a		44,144		151,057
Tata Power Co. Ltd.		104,163		129,132
Tata Steel Ltd.		31,372		313,125
Tech Mahindra Ltd.		50,096		335,521
Titan Co. Ltd.		32,612		314,814
Ultratech Cement Ltd.		9,176		574,219
United Spirits Ltd.^a		5,828		231,830
UPL Ltd.		38,068		493,103
Vedanta Ltd.		160,056		773,412
Wipro Ltd.		126,982		594,127
Yes Bank Ltd.		35,960		986,131
Zee Entertainment Enterprises Ltd.		58,652		476,639

				47,076,264
RUSSIA — 6.57%
Alrosa PJSC		285,200		396,555
Gazprom PJSC		855,604		1,734,338
Gazprom PJSC ADR		166,532		664,463
Inter RAO UES PJSC		3,100,000		206,524
Lukoil PJSC		26,536		1,338,794


CONSOLIDATED SCHEDULES OF INVESTMENTS			49

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2017


Security	Shares		Value
Lukoil PJSC ADR		20,212	$	1,015,653
Magnit PJSC GDR^e		32,984		1,378,401
MMC Norilsk Nickel PJSC		6,572		1,106,744
Mobile TeleSystems PJSC ADR		55,552		554,965
Moscow Exchange MICEX-RTS PJSC		178,550		323,435
Novatek PJSC GDR^e		10,168		1,074,758
Novolipetsk Steel PJSC		121,400		287,430
PhosAgro PJSC GDR^e		17,608		244,751
Rosneft Oil Co. PJSC		97,602		513,597
Rostelecom PJSC		122,760		140,463
RusHydro PJSC		11,160,200		158,847
Sberbank of Russia PJSC		878,900		2,782,969
Sberbank of Russia PJSC ADR		64,604		881,845
Severstal PJSC		19,840		311,222
Sistema PJSC FC GDR^e		21,080		87,482
Surgutneftegas OJSC		595,210		275,339
Surgutneftegas OJSC ADR		32,984		150,869
Tatneft PJSC Class S		164,923		1,090,494
VTB Bank PJSC		434,186,001		484,464

				17,204,402

TOTAL COMMON STOCKS
(Cost: $206,812,706)				246,673,156

PREFERRED STOCKS — 5.46%

BRAZIL — 5.32%
Banco Bradesco SA, Preference Shares		334,893		3,574,094
Braskem SA Class A, Preference Shares		12,400		150,190
Centrais Eletricas Brasileiras SA Class B, Preference Shares		24,882		162,350
Cia. Brasileira de Distribuicao, Preference Shares		12,756		291,854
Cia. Energetica de Minas Gerais, Preference Shares		74,432		198,236
Cia. Paranaense de Energia Class B, Preference Shares		12,400		113,263
Gerdau SA, Preference Shares		99,200		373,602
Itau Unibanco Holding SA, Preference Shares		341,371		4,377,734
Itausa-Investimentos Itau SA, Preference Shares		440,131		1,426,794
Lojas Americanas SA, Preference Shares		74,504		420,771


Security	Shares		Value
Petroleo Brasileiro SA, Preference Shares		409,214	$	1,775,261
Suzano Papel e Celulose SA Class A, Preference Shares		49,600		275,867
Telefonica Brasil SA, Preference Shares		49,664		770,897

				13,910,913
RUSSIA — 0.14%
Surgutneftegas OJSC, Preference Shares		768,800		379,535

				379,535

TOTAL PREFERRED STOCKS
(Cost: $11,517,432)				14,290,448

RIGHTS — 0.00%

CHINA — 0.00%
Fosun International Ltd. (Expires 09/07/17)^a		158		—

				—

TOTAL RIGHTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 9.80%
MONEY MARKET FUNDS — 9.80%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^f,g,h		25,497,132		25,504,781
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^f,g		159,468		159,468

				25,664,249

TOTAL SHORT-TERM INVESTMENTS
(Cost: $25,662,112)				25,664,249


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI BRIC ETF

August 31, 2017


Security	Value
TOTAL INVESTMENTS IN SECURITIES — 109.52%
(Cost: $243,992,250)ⁱ	$	286,627,853
Other Assets, Less Liabilities — (9.52)%		(24,926,147	)

NET ASSETS — 100.00%	$	261,701,706

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

^a	Non-income earning security.

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

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

^d	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	Affiliated issuer. See Schedule 1.

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

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

ⁱ

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $250,639,483. Net unrealized appreciation was $35,988,370, of which $61,840,477 represented gross unrealized appreciation on investments and $25,852,107 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		6,588,665		18,908,467	^b		—		25,497,132	$	25,504,781	$	1,489	$	2,137	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		—		159,468	^b		—		159,468		159,468		6		—		1,236

										$	25,664,249	$	1,495	$	2,137	$	1,236

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2			Level 3			Total
Investments:
Assets:
Common stocks	$	246,532,079	$	141,077		$	0	^a	$	246,673,156
Preferred stocks		14,290,448		—			—			14,290,448
Rights		—		0	^a		—			0	^a
Money market funds		25,664,249		—			—			25,664,249

Total	$	286,486,776	$	141,077		$	0	^a	$	286,627,853

Rounds to less than $1.

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			51

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.60%

CHINA — 40.21%
3SBio Inc.^a,b,c		136,500	$	187,664
58.com Inc. ADR^a		12,429		778,428
AAC Technologies Holdings Inc.^c		102,000		1,859,770
Agricultural Bank of China Ltd. Class H		3,592,000		1,688,960
Air China Ltd. Class H		246,000		218,766
Alibaba Group Holding Ltd. ADR^a		156,390		26,858,419
Alibaba Health Information Technology Ltd.^a,c		462,000		215,462
Alibaba Pictures Group Ltd.^a,c		1,700,000		297,581
Aluminum Corp. of China Ltd. Class H^a,c		530,000		392,093
Anhui Conch Cement Co. Ltd. Class H		171,500		639,856
ANTA Sports Products Ltd.		150,000		590,306
Autohome Inc. ADR^a		7,105		456,638
AviChina Industry & Technology Co. Ltd. Class H^c		287,000		169,785
Baidu Inc. ADR^a		37,568		8,567,382
Bank of China Ltd. Class H		10,922,000		5,749,560
Bank of Communications Co. Ltd. Class H		1,195,000		913,070
Beijing Capital International Airport Co. Ltd. Class H		204,000		329,989
Beijing Enterprises Holdings Ltd.		68,500		382,479
Beijing Enterprises Water Group Ltd.		662,000		562,490
Brilliance China Automotive Holdings Ltd.		414,000		1,071,175
Byd Co. Ltd. Class H		89,000		529,921
CGN Power Co. Ltd. Class H^b		1,472,000		406,253
China Cinda Asset Management Co. Ltd. Class H		1,193,000		443,577
China CITIC Bank Corp. Ltd. Class H		1,225,000		809,211
China Coal Energy Co. Ltd. Class H^c		276,000		138,944
China Communications Construction Co. Ltd. Class H		607,000		808,149
China Communications Services Corp. Ltd. Class H		326,000		176,611
China Conch Venture Holdings Ltd.		230,500		419,388


Security	Shares		Value
China Construction Bank Corp. Class H		11,569,000	$	10,140,401
China Everbright Bank Co. Ltd. Class H		370,000		177,756
China Everbright International Ltd.^c		334,000		441,268
China Everbright Ltd.		126,000		287,855
China Evergrande Group^a,c		448,000		1,353,768
China Galaxy Securities Co. Ltd. Class H		463,500		419,886
China Gas Holdings Ltd.		244,000		616,044
China Huarong Asset Management Co. Ltd. Class H^b		878,000		374,694
China Huishan Dairy Holdings Co. Ltd.^c,d		404,000		1
China Jinmao Holdings Group Ltd.		534,000		237,441
China Life Insurance Co. Ltd. Class H		1,023,000		3,280,836
China Longyuan Power Group Corp. Ltd. Class H		442,000		330,944
China Medical System Holdings Ltd.		169,000		310,946
China Mengniu Dairy Co. Ltd.^c		377,000		880,547
China Merchants Bank Co. Ltd. Class H		536,331		2,021,576
China Merchants Port Holdings Co. Ltd.		184,000		601,857
China Minsheng Banking Corp. Ltd. Class H		759,300		757,704
China Mobile Ltd.		844,500		8,955,976
China National Building Material Co. Ltd. Class H		404,000		253,970
China Oilfield Services Ltd. Class H		244,000		200,152
China Overseas Land & Investment Ltd.		532,000		1,859,106
China Pacific Insurance Group Co. Ltd. Class H		363,200		1,710,088
China Petroleum & Chemical Corp. Class H		3,508,600		2,685,319
China Power International Development Ltd.		454,000		154,882
China Railway Construction Corp. Ltd. Class H		266,000		348,710
China Railway Group Ltd. Class H		560,000		447,917
China Resources Beer Holdings Co. Ltd.		220,000		552,077
China Resources Gas Group Ltd.		126,000		444,339


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
China Resources Land Ltd.		385,777	$	1,205,176
China Resources Power Holdings Co. Ltd.		268,000		491,727
China Shenhua Energy Co. Ltd. Class H		470,500		1,211,351
China Southern Airlines Co. Ltd. Class H		246,000		192,049
China State Construction International Holdings Ltd.		252,000		365,131
China Taiping Insurance Holdings Co. Ltd.		223,100		677,015
China Telecom Corp. Ltd. Class H		1,910,000		981,058
China Unicom Hong Kong Ltd.^a		824,000		1,200,238
China Vanke Co. Ltd. Class H		165,900		497,078
Chongqing Changan Automobile Co. Ltd. Class B		113,400		148,371
Chongqing Rural Commercial Bank Co. Ltd. Class H		340,000		236,761
CITIC Ltd.		804,000		1,234,797
CITIC Securities Co. Ltd. Class H		314,500		697,599
CNOOC Ltd.		2,457,000		2,938,436
COSCO SHIPPING Ports Ltd.		226,000		267,107
Country Garden Holdings Co. Ltd.^c		734,828		976,459
CRRC Corp. Ltd. Class H		571,750		515,758
CSPC Pharmaceutical Group Ltd.		584,000		911,841
Ctrip.com International Ltd. ADR^a		53,948		2,775,625
Dongfeng Motor Group Co. Ltd. Class H		378,000		490,705
ENN Energy Holdings Ltd.		104,000		669,065
Far East Horizon Ltd.		277,000		253,059
Fosun International Ltd.^c		356,000		617,710
Fullshare Holdings Ltd.^c		702,500		280,050
Fuyao Glass Industry Group Co. Ltd. Class H^b		68,800		219,328
GCL-Poly Energy Holdings Ltd.^a,c		1,764,000		198,343
Geely Automobile Holdings Ltd.		674,000		1,656,915
GF Securities Co. Ltd. Class H		190,600		406,700
GOME Electrical Appliances Holding Ltd.^c		1,509,000		158,102
Great Wall Motor Co. Ltd. Class H^c		426,500		535,138
Guangdong Investment Ltd.		382,000		564,230
Guangzhou Automobile Group Co. Ltd. Class H		290,000		572,111
Guangzhou R&F Properties Co. Ltd. Class H		132,000		308,308


Security	Shares		Value
Haier Electronics Group Co. Ltd.		170,000	$	451,801
Haitian International Holdings Ltd.		90,000		270,237
Haitong Securities Co. Ltd. Class H		447,200		749,671
Hanergy Thin Film Power Group Ltd.^a,d		2,513		—
Hengan International Group Co. Ltd.^c		99,000		827,272
Huaneng Power International Inc. Class H		572,000		374,198
Huaneng Renewables Corp. Ltd. Class H		680,000		208,524
Huatai Securities Co. Ltd. Class H^b		227,200		505,698
Industrial & Commercial Bank of China Ltd. Class H		10,143,000		7,594,501
JD.com Inc. ADR^a		90,170		3,779,025
Jiangsu Expressway Co. Ltd. Class H		168,000		257,588
Jiangxi Copper Co. Ltd. Class H		173,000		300,180
Kingsoft Corp. Ltd.^c		106,000		251,373
Kunlun Energy Co. Ltd.		440,000		426,145
Lenovo Group Ltd.^c		1,004,000		549,051
Longfor Properties Co. Ltd.		205,500		493,634
Minth Group Ltd.		92,000		423,768
Momo Inc. ADR^a		12,099		466,174
NetEase Inc. ADR		10,938		3,017,138
New China Life Insurance Co. Ltd. Class H		107,300		686,867
New Oriental Education & Technology Group Inc. ADR		18,352		1,500,276
Nine Dragons Paper (Holdings) Ltd.		222,000		370,451
People’s Insurance Co. Group of China Ltd. (The) Class H		960,000		452,619
PetroChina Co. Ltd. Class H		2,908,000		1,857,803
PICC Property & Casualty Co. Ltd. Class H		635,160		1,192,987
Ping An Insurance Group Co. of China Ltd. Class H		716,500		5,689,741
Semiconductor Manufacturing International Corp.^a,c		381,300		358,575
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		252,000		201,241
Shanghai Electric Group Co. Ltd. Class H^a,^c		382,000		173,271
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		66,000		247,929


CONSOLIDATED SCHEDULES OF INVESTMENTS			53

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
Shanghai Industrial Holdings Ltd.		70,000	$	212,868
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		123,180		198,689
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		93,900		231,077
Shenzhou International Group Holdings Ltd.		76,000		608,858
Shimao Property Holdings Ltd.		162,500		335,529
Sihuan Pharmaceutical Holdings Group Ltd.		516,000		198,450
SINA Corp./China^a		7,799		794,172
Sino Biopharmaceutical Ltd.		620,000		544,231
Sino-Ocean Group Holding Ltd.		428,500		295,651
Sinopec Engineering Group Co. Ltd. Class H		169,500		152,901
Sinopec Shanghai Petrochemical Co. Ltd. Class H		473,000		294,928
Sinopharm Group Co. Ltd. Class H		163,600		738,938
SOHO China Ltd.		289,500		168,674
Sun Art Retail Group Ltd.^c		323,500		298,020
Sunac China Holdings Ltd.		288,000		864,760
Sunny Optical Technology Group Co. Ltd.		98,000		1,404,928
TAL Education Group Class A ADR		37,758		1,148,976
Tencent Holdings Ltd.		781,800		32,864,479
Tingyi Cayman Islands Holding Corp.^c		266,000		354,148
TravelSky Technology Ltd. Class H		126,000		344,524
Tsingtao Brewery Co. Ltd. Class H		52,000		215,602
Vipshop Holdings Ltd. ADR^a		55,758		519,107
Want Want China Holdings Ltd.^c		689,000		456,020
Weibo Corp. ADR^a		6,387		645,726
Weichai Power Co. Ltd. Class H		264,200		272,084
Yanzhou Coal Mining Co. Ltd. Class H		250,000		251,072
Yum China Holdings Inc.^a		52,656		1,861,916
YY Inc. ADR^a		5,911		441,670
Zhejiang Expressway Co. Ltd. Class H		194,000		242,672
Zhuzhou CRRC Times Electric Co. Ltd. Class H		76,800		401,837
Zijin Mining Group Co. Ltd. Class H		810,000		297,031
ZTE Corp. Class H^a		97,360		265,591

				201,564,195


Security	Shares		Value
INDIA — 12.04%
ACC Ltd.		6,270	$	176,572
Adani Ports & Special Economic Zone Ltd.		99,307		610,433
Aditya Birla Capital Ltd.^a		52,445		152,213
Ambuja Cements Ltd.		80,870		354,657
Apollo Hospitals Enterprise Ltd.^a		11,217		189,961
Ashok Leyland Ltd.		154,449		258,759
Asian Paints Ltd.		39,786		727,274
Aurobindo Pharma Ltd.		36,479		413,858
Axis Bank Ltd.		228,347		1,787,269
Bajaj Auto Ltd.		11,733		516,572
Bajaj Finance Ltd.		22,879		637,736
Bajaj Finserv Ltd.		5,195		447,192
Bharat Forge Ltd.		14,074		248,296
Bharat Heavy Electricals Ltd.		79,006		159,307
Bharat Petroleum Corp. Ltd.		104,388		863,828
Bharti Airtel Ltd.		164,477		1,100,437
Bharti Infratel Ltd.		77,718		456,147
Bosch Ltd.		1,032		354,946
Cadila Healthcare Ltd.		27,786		217,329
Cipla Ltd.		47,021		420,661
Coal India Ltd.		92,762		344,486
Container Corp. of India Ltd.		5,736		118,433
Dabur India Ltd.		71,924		354,522
Dr. Reddy’s Laboratories Ltd.		15,931		503,627
Eicher Motors Ltd.		1,831		900,827
GAIL (India) Ltd.		68,807		407,183
Glenmark Pharmaceuticals Ltd.		18,853		179,635
Godrej Consumer Products Ltd.		33,276		483,735
Grasim Industries Ltd.		45,448		849,721
Havells India Ltd.		33,965		259,468
HCL Technologies Ltd.		77,256		1,045,730
Hero Motocorp Ltd.		6,795		424,657
Hindalco Industries Ltd.		161,458		601,115
Hindustan Petroleum Corp. Ltd.		84,641		646,596
Hindustan Unilever Ltd.		89,589		1,709,410
Housing Development Finance Corp. Ltd.		207,138		5,757,627
ICICI Bank Ltd.		326,466		1,522,116
Idea Cellular Ltd.		194,455		275,745
IDFC Bank Ltd.		183,943		157,827
Indiabulls Housing Finance Ltd.		43,553		828,121
Indian Oil Corp. Ltd.		81,430		579,202
Infosys Ltd.		252,734		3,617,277


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
ITC Ltd.		467,383	$	2,063,610
JSW Steel Ltd.		114,457		455,491
Larsen & Toubro Ltd.		65,580		1,165,696
LIC Housing Finance Ltd.		41,766		440,258
Lupin Ltd.		30,606		468,932
Mahindra & Mahindra Financial Services Ltd.		37,504		250,804
Mahindra & Mahindra Ltd.		51,114		1,075,272
Marico Ltd.		60,847		300,255
Maruti Suzuki India Ltd.		14,587		1,757,092
Motherson Sumi Systems Ltd.		87,902		423,654
Nestle India Ltd.		3,155		351,460
NTPC Ltd.		229,057		604,656
Oil & Natural Gas Corp. Ltd.		173,906		426,969
Piramal Enterprises Ltd.		10,709		454,602
Power Finance Corp. Ltd.		90,198		172,279
Reliance Industries Ltd.		178,391		4,449,572
Rural Electrification Corp. Ltd.		93,207		245,753
Shree Cement Ltd.		1,128		310,400
Shriram Transport Finance Co. Ltd.		20,511		316,041
Siemens Ltd.		9,607		193,113
State Bank of India		239,109		1,038,893
Sun Pharmaceuticals Industries Ltd.		132,282		995,639
Tata Consultancy Services Ltd.		63,164		2,466,584
Tata Motors Ltd.^a		218,584		1,287,543
Tata Motors Ltd. Class A^a		50,966		174,401
Tata Power Co. Ltd.		151,450		187,754
Tata Steel Ltd.		42,215		421,349
Tech Mahindra Ltd.		65,509		438,751
Titan Co. Ltd.		43,673		421,589
Ultratech Cement Ltd.		12,149		760,265
United Spirits Ltd.^a		7,857		312,541
UPL Ltd.		49,153		636,689
Vedanta Ltd.		204,015		985,827
Wipro Ltd.		167,461		783,521
Yes Bank Ltd.		46,062		1,263,159
Zee Entertainment Enterprises Ltd.		73,548		597,692

				60,358,613
INDONESIA — 3.14%
Adaro Energy Tbk PT		1,954,300		267,321
AKR Corporindo Tbk PT		243,900		123,851
Astra International Tbk PT		2,790,700		1,647,186
Bank Central Asia Tbk PT		1,355,300		1,924,969
Bank Danamon Indonesia Tbk PT		452,300		184,757
Bank Mandiri Persero Tbk PT		1,279,900		1,256,685


Security	Shares		Value
Bank Negara Indonesia Persero Tbk PT		1,035,700	$	570,559
Bank Rakyat Indonesia Persero Tbk PT		1,531,400		1,736,053
Bumi Serpong Damai Tbk PT		1,044,700		143,683
Charoen Pokphand Indonesia Tbk PT		1,031,200		214,093
Gudang Garam Tbk PT		65,100		337,649
Hanjaya Mandala Sampoerna Tbk PT		1,258,500		343,347
Indocement Tunggal Prakarsa Tbk PT		256,900		381,249
Indofood CBP Sukses Makmur Tbk PT		316,900		207,237
Indofood Sukses Makmur Tbk PT		606,700		380,836
Jasa Marga Persero Tbk PT		291,198		127,134
Kalbe Farma Tbk PT		2,849,700		365,237
Lippo Karawaci Tbk PT		1,886,300		110,984
Matahari Department Store Tbk PT		345,300		258,807
Media Nusantara Citra Tbk PT		761,000		84,986
Pakuwon Jati Tbk PT		2,898,700		145,565
Perusahaan Gas Negara Persero Tbk PT		1,468,000		233,260
Semen Indonesia Persero Tbk PT		410,900		322,604
Summarecon Agung Tbk PT		1,365,800		106,975
Surya Citra Media Tbk PT		789,200		130,725
Telekomunikasi Indonesia Persero Tbk PT		6,947,400		2,442,161
Tower Bersama Infrastructure Tbk PT		292,600		140,905
Unilever Indonesia Tbk PT		208,900		791,478
United Tractors Tbk PT		234,300		532,101
Waskita Karya Persero Tbk PT		647,800		107,789
XL Axiata Tbk PT^a		427,800		115,431

				15,735,617
MALAYSIA — 3.10%
AirAsia Bhd		203,000		157,818
Alliance Financial Group Bhd		144,100		129,574
AMMB Holdings Bhd		221,100		221,592
Astro Malaysia Holdings Bhd		224,100		140,636
Axiata Group Bhd^c		373,300		430,949
British American Tobacco Malaysia Bhd		19,300		199,666
CIMB Group Holdings Bhd		560,000		928,416
Dialog Group Bhd^c		414,678		199,061


CONSOLIDATED SCHEDULES OF INVESTMENTS			55

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
DiGi.Com Bhd^c		424,200	$	480,770
Felda Global Ventures Holdings Bhd^c		195,700		71,030
Gamuda Bhd^c		231,300		289,227
Genting Bhd		306,900		697,810
Genting Malaysia Bhd		410,900		564,801
Genting Plantations Bhd		32,800		81,722
HAP Seng Consolidated Bhd		84,000		178,602
Hartalega Holdings Bhd		88,400		140,554
Hong Leong Bank Bhd		89,100		322,141
Hong Leong Financial Group Bhd		30,200		119,513
IHH Healthcare Bhd		279,600		392,180
IJM Corp. Bhd		389,400		304,554
IOI Corp. Bhd^c		305,100		324,354
IOI Properties Group Bhd		226,543		105,566
Kuala Lumpur Kepong Bhd		65,700		377,538
Malayan Banking Bhd		490,100		1,085,668
Malaysia Airports Holdings Bhd		112,800		237,724
Maxis Bhd^c		258,900		350,414
MISC Bhd^c		185,500		323,175
Petronas Chemicals Group Bhd		327,100		548,422
Petronas Dagangan Bhd		33,900		193,692
Petronas Gas Bhd		96,400		415,352
PPB Group Bhd		64,500		251,928
Public Bank Bhd		404,210		1,949,825
RHB Bank Bhd		106,562		126,013
RHB Bank Bhd New^a,d		28,800		—
Sapura Energy Bhd^c		520,500		168,198
Sime Darby Bhd		330,600		696,733
Telekom Malaysia Bhd		156,100		235,036
Tenaga Nasional Bhd		469,100		1,568,610
UMW Holdings Bhd^a,c		64,500		91,830
Westports Holdings Bhd		138,000		121,180
YTL Corp. Bhd		627,753		210,207
YTL Power International Bhd		273,115		90,175

				15,522,256
PAKISTAN — 0.13%
Engro Corp. Ltd./Pakistan		35,200		94,863
Habib Bank Ltd.		79,300		133,920
Lucky Cement Ltd.		17,050		96,757
MCB Bank Ltd.		60,100		110,522
Oil & Gas Development Co. Ltd.		85,800		115,080
United Bank Ltd./Pakistan		65,400		115,712

				666,854


Security	Shares		Value
PHILIPPINES — 1.52%
Aboitiz Equity Ventures Inc.		273,010	$	397,217
Aboitiz Power Corp.		195,200		150,682
Alliance Global Group Inc.		547,900		148,833
Ayala Corp.		34,480		619,926
Ayala Land Inc.		1,005,200		825,062
Bank of the Philippine Islands		107,420		222,313
BDO Unibank Inc.		267,159		663,590
DMCI Holdings Inc.		536,400		164,578
Energy Development Corp.		1,263,300		167,387
Globe Telecom Inc.		4,470		174,712
GT Capital Holdings Inc.		11,720		256,067
International Container Terminal Services Inc.		68,250		139,248
JG Summit Holdings Inc.		391,116		548,801
Jollibee Foods Corp.		60,900		283,494
Megaworld Corp.		1,633,400		157,690
Metro Pacific Investments Corp.		1,968,800		244,320
Metropolitan Bank & Trust Co.		87,146		149,189
PLDT Inc.		12,110		409,425
Robinsons Land Corp.		219,200		99,383
Security Bank Corp.		23,090		112,810
SM Investments Corp.		32,769		519,040
SM Prime Holdings Inc.		1,211,750		790,941
Universal Robina Corp.		123,480		352,559

				7,597,267
SOUTH KOREA — 19.08%
AmorePacific Corp.		4,430		1,131,465
AmorePacific Group		4,040		480,099
BGF retail Co. Ltd.		3,033		245,308
BNK Financial Group Inc.		37,812		330,637
Celltrion Inc.^a		10,906		1,113,232
Cheil Worldwide Inc.		9,421		158,743
CJ CheilJedang Corp.		1,075		345,590
CJ Corp.		2,065		324,144
CJ E&M Corp.		2,579		173,824
CJ Logistics Corp.^a		1,096		164,264
Coway Co. Ltd.		7,380		646,634
Daelim Industrial Co. Ltd.		3,763		279,655
Daewoo Engineering & Construction Co. Ltd.^a		17,011		106,055
DGB Financial Group Inc.		23,052		224,878
Dongbu Insurance Co. Ltd.		6,840		456,162
Dongsuh Cos. Inc.		4,849		113,958
Doosan Bobcat Inc.		4,695		158,846


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
Doosan Heavy Industries & Construction Co. Ltd.		7,193	$	114,823
E-MART Inc.		2,875		571,125
GS Engineering & Construction Corp.^a		6,712		169,645
GS Holdings Corp.		6,948		435,020
GS Retail Co. Ltd.		3,706		132,615
Hana Financial Group Inc.		40,747		1,770,666
Hankook Tire Co. Ltd.		10,230		535,270
Hanmi Pharm Co. Ltd.^a		832		297,354
Hanmi Science Co. Ltd.^a		1,696		134,615
Hanon Systems		25,174		257,857
Hanssem Co. Ltd.		1,442		217,400
Hanwha Chemical Corp.		14,912		467,488
Hanwha Corp.		6,102		265,975
Hanwha Life Insurance Co. Ltd.		29,753		193,147
Hanwha Techwin Co. Ltd.^a		5,047		173,664
Hotel Shilla Co. Ltd.		4,265		234,129
Hyosung Corp.		2,949		414,523
Hyundai Department Store Co. Ltd.		1,940		166,197
Hyundai Development Co. Engineering & Construction		8,146		271,991
Hyundai Engineering & Construction Co. Ltd.		10,936		394,243
Hyundai Glovis Co. Ltd.		2,546		349,973
Hyundai Heavy Industries Co. Ltd.^a		4,272		562,604
Hyundai Marine & Fire Insurance Co. Ltd.		8,478		347,360
Hyundai Mobis Co. Ltd.		9,372		1,961,504
Hyundai Motor Co.		21,199		2,641,415
Hyundai Robotics Co. Ltd.^a		1,368		537,446
Hyundai Steel Co.		11,147		570,399
Hyundai Wia Corp.		2,199		136,511
Industrial Bank of Korea		35,337		468,507
Kakao Corp.		4,657		507,991
Kangwon Land Inc.		16,480		504,221
KB Financial Group Inc.		54,609		2,682,989
KCC Corp.		785		275,683
KEPCO Plant Service & Engineering Co. Ltd.		3,101		125,817
Kia Motors Corp.		36,179		1,137,412
Korea Aerospace Industries Ltd. Class A		9,675		396,833
Korea Electric Power Corp.		35,137		1,336,801
Korea Gas Corp.^a		3,797		152,540


Security	Shares		Value
Korea Investment Holdings Co. Ltd.		5,258	$	306,359
Korea Zinc Co. Ltd.		1,185		542,267
Korean Air Lines Co. Ltd.^a		6,136		180,663
KT Corp.		1,558		43,109
KT&G Corp.		16,146		1,639,515
Kumho Petrochemical Co. Ltd.		2,459		171,842
LG Chem Ltd.		6,337		2,129,942
LG Corp.		13,141		978,932
LG Display Co. Ltd.		31,891		880,990
LG Electronics Inc.		14,518		1,049,323
LG Household & Health Care Ltd.		1,292		1,099,965
LG Innotek Co. Ltd.		1,929		315,627
Lotte Chemical Corp.		2,116		749,683
Lotte Chilsung Beverage Co. Ltd.		86		117,987
Lotte Confectionery Co. Ltd.		766		134,166
Lotte Shopping Co. Ltd.		1,770		403,414
Medy-Tox Inc.		607		306,353
Mirae Asset Daewoo Co. Ltd.		51,093		459,910
NAVER Corp.		3,852		2,579,159
NCsoft Corp.		2,406		820,421
Netmarble Games Corp.^a,b		2,310		316,509
NH Investment & Securities Co. Ltd.		18,958		232,015
OCI Co. Ltd.^c		2,256		196,670
Orion Corp./Republic of Koreaa		3,230		250,070
Ottogi Corp.		166		112,031
Pan Ocean Co. Ltd.^a		29,021		165,489
POSCO		10,188		3,103,563
Posco Daewoo Corp.		4,980		93,408
S-1 Corp.		2,329		185,271
S-Oil Corp.		6,256		696,282
Samsung Biologics Co. Ltd.^a,b		2,312		580,255
Samsung C&T Corp.		10,515		1,202,940
Samsung Card Co. Ltd.		3,924		129,106
Samsung Electro-Mechanics Co. Ltd.		7,759		694,980
Samsung Electronics Co. Ltd.		13,474		27,674,516
Samsung Fire & Marine Insurance Co. Ltd.		4,222		1,035,281
Samsung Heavy Industries Co. Ltd.^a		35,830		339,997
Samsung Life Insurance Co. Ltd.		9,604		983,737
Samsung SDI Co. Ltd.		7,610		1,326,148
Samsung SDS Co. Ltd.		4,770		708,562
Samsung Securities Co. Ltd.		8,755		283,784


CONSOLIDATED SCHEDULES OF INVESTMENTS			57

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
Shinhan Financial Group Co. Ltd.		58,675	$	2,705,835
Shinsegae Inc.		1,003		171,673
SK Holdings Co. Ltd.		4,348		1,031,474
SK Hynix Inc.		80,071		4,871,294
SK Innovation Co. Ltd.		8,865		1,481,955
SK Networks Co. Ltd.		18,940		117,745
SK Telecom Co. Ltd.		2,765		621,610
Woori Bank		51,072		842,443
Yuhan Corp.		1,115		223,475

				95,654,992
TAIWAN — 16.41%
Acer Inc.		396,062		199,481
Advanced Semiconductor Engineering Inc.		906,969		1,093,929
Advantech Co. Ltd.		47,282		348,595
Asia Cement Corp.		317,229		287,492
Asia Pacific Telecom Co. Ltd.^a		290,000		99,457
Asustek Computer Inc.		98,000		811,823
AU Optronics Corp.		1,170,000		480,732
Catcher Technology Co. Ltd.		90,000		1,145,167
Cathay Financial Holding Co. Ltd.		1,122,944		1,832,565
Chailease Holding Co. Ltd.		139,496		379,952
Chang Hwa Commercial Bank Ltd.		644,294		352,260
Cheng Shin Rubber Industry Co. Ltd.		269,776		542,609
Chicony Electronics Co. Ltd.		72,173		181,276
China Airlines Ltd.		393,000		166,685
China Development Financial Holding Corp.		1,856,200		579,390
China Life Insurance Co. Ltd./Taiwan		470,835		519,527
China Steel Corp.		1,725,867		1,446,848
Chunghwa Telecom Co. Ltd.		524,000		1,823,122
Compal Electronics Inc.		584,000		419,921
CTBC Financial Holding Co. Ltd.		2,412,265		1,562,669
Delta Electronics Inc.		266,000		1,458,730
E.Sun Financial Holding Co. Ltd.		1,243,766		766,561
Eclat Textile Co. Ltd.		24,604		301,649
EVA Airways Corp.		282,628		147,031
Evergreen Marine Corp. Taiwan Ltd.^a		235,050		179,136
Far Eastern New Century Corp.		432,460		346,065
Far EasTone Telecommunications Co. Ltd.		220,000		533,616
Feng TAY Enterprise Co. Ltd.		45,064		213,531
First Financial Holding Co. Ltd.		1,271,817		825,992


Security	Shares		Value
Formosa Chemicals & Fibre Corp.		400,950	$	1,260,816
Formosa Petrochemical Corp.		185,000		652,855
Formosa Plastics Corp.		569,400		1,771,651
Formosa Taffeta Co. Ltd.		105,000		104,377
Foxconn Technology Co. Ltd.		128,521		407,976
Fubon Financial Holding Co. Ltd.		917,396		1,474,327
General Interface Solution Holding Ltd.		23,000		275,506
Giant Manufacturing Co. Ltd.		42,000		212,234
Globalwafers Co. Ltd.		30,000		238,079
Highwealth Construction Corp.		111,840		177,883
Hiwin Technologies Corp.		28,540		252,972
Hon Hai Precision Industry Co. Ltd.		2,144,314		8,348,749
Hotai Motor Co. Ltd.		37,000		435,849
HTC Corp.^a		89,000		202,601
Hua Nan Financial Holdings Co. Ltd.		979,011		546,616
Innolux Corp.		1,231,620		599,914
Inventec Corp.		339,980		269,808
Largan Precision Co. Ltd.		14,000		2,704,530
Lite-On Technology Corp.		292,032		432,063
MediaTek Inc.		207,176		1,856,957
Mega Financial Holding Co. Ltd.		1,501,542		1,206,547
Merida Industry Co. Ltd.		28,350		124,470
Micro-Star International Co. Ltd.		91,000		207,154
Nan Ya Plastics Corp.		657,090		1,659,109
Nanya Technology Corp.		94,000		201,524
Nien Made Enterprise Co. Ltd.		20,000		215,050
Novatek Microelectronics Corp.		78,000		303,688
Pegatron Corp.		269,000		846,781
Phison Electronics Corp.		20,000		269,724
Pou Chen Corp.		305,000		395,664
Powertech Technology Inc.		95,000		288,346
President Chain Store Corp.		79,000		660,973
Quanta Computer Inc.		370,000		842,274
Realtek Semiconductor Corp.		61,140		237,032
Ruentex Development Co. Ltd.^a		127,065		124,417
Ruentex Industries Ltd.		77,855		125,248
Shin Kong Financial Holding Co. Ltd.		1,144,138		332,486
Siliconware Precision Industries Co. Ltd.		274,438		434,678
SinoPac Financial Holdings Co. Ltd.		1,410,173		453,252
Standard Foods Corp.		80,987		206,902
Synnex Technology International Corp.		192,050		214,457


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
TaiMed Biologics Inc.^a		24,000	$	172,570
Taishin Financial Holding Co. Ltd.		1,316,305		584,462
Taiwan Business Bank		527,768		145,849
Taiwan Cement Corp.		456,000		526,578
Taiwan Cooperative Financial Holding Co. Ltd.		1,081,948		570,031
Taiwan Fertilizer Co. Ltd.		100,000		133,371
Taiwan High Speed Rail Corp.		230,000		202,724
Taiwan Mobile Co. Ltd.		222,000		794,460
Taiwan Semiconductor Manufacturing Co. Ltd.		3,387,000		24,297,873
Teco Electric and Machinery Co. Ltd.		256,000		239,213
Transcend Information Inc.		26,000		77,537
Uni-President Enterprises Corp.		669,650		1,424,551
United Microelectronics Corp.		1,658,000		826,830
Vanguard International Semiconductor Corp.		121,000		218,513
Wistron Corp.		351,119		331,585
WPG Holdings Ltd.		212,000		276,073
Yuanta Financial Holding Co. Ltd.		1,396,893		606,359
Yulon Motor Co. Ltd.		118,000		101,660
Zhen Ding Technology Holding Ltd.		59,455		137,708

				82,289,297
THAILAND — 2.97%
Advanced Info Service PCL NVDR		143,100		808,048
Airports of Thailand PCL NVDR		592,800		972,974
Bangkok Bank PCL Foreign		34,500		194,812
Bangkok Dusit Medical Services PCL NVDR^c		524,900		330,384
Bangkok Expressway & Metro PCL		1,011,600		237,629
Banpu PCL NVDR		267,400		141,733
BEC World PCL NVDR		146,700		76,432
Berli Jucker PCL NVDR		161,900		240,132
BTS Group Holdings PCL NVDR		791,000		206,058
Bumrungrad Hospital PCL NVDR		49,600		325,638
Central Pattana PCL NVDR		181,900		394,422
Charoen Pokphand Foods PCL NVDR		414,400		340,081
CP ALL PCL NVDR		679,100		1,268,008
Delta Electronics Thailand PCL NVDR		67,000		179,581
Electricity Generating PCL NVDR^c		17,900		126,144
Energy Absolute PCL NVDR^c		151,100		171,782
Glow Energy PCL NVDR		69,000		178,188
Home Product Center PCL NVDR		541,845		163,182


Security	Shares		Value
Indorama Ventures PCL NVDR		193,700	$	227,505
IRPC PCL NVDR		1,356,600		243,089
Kasikornbank PCL Foreign		160,300		1,018,621
Kasikornbank PCL NVDR		80,600		487,896
KCE Electronics PCL NVDR		35,700		94,075
Krung Thai Bank PCL NVDR		471,750		265,675
Minor International PCL NVDR^c		303,380		363,179
PTT Exploration & Production PCL NVDR		192,310		506,765
PTT Global Chemical PCL NVDR		299,300		689,548
PTT PCL NVDR		145,100		1,743,560
Robinson PCL NVDR		67,000		116,022
Siam Cement PCL (The) Foreign		41,800		629,423
Siam Cement PCL (The) NVDR		15,200		228,881
Siam Commercial Bank PCL (The) NVDR		242,400		1,098,666
Thai Oil PCL NVDR		110,900		314,782
Thai Union Group PCL NVDR		261,400		155,872
TMB Bank PCL NVDR		1,758,200		124,962
True Corp. PCL NVDR^a		1,434,405		241,911

				14,905,660


TOTAL COMMON STOCKS
(Cost: $417,008,188)				494,294,751

PREFERRED STOCKS — 1.08%

SOUTH KOREA — 1.08%
AmorePacific Corp., Preference Shares		1,200		182,512
Hyundai Motor Co., Preference Shares		3,319		283,746
Hyundai Motor Co. Series 2, Preference Shares		5,147		465,585
LG Chem Ltd., Preference Shares		1,082		252,364
LG Household & Health Care Ltd., Preference Shares		304		161,760
Samsung Electronics Co. Ltd., Preference Shares		2,435		4,070,570

				5,416,537

TOTAL PREFERRED STOCKS
(Cost: $4,277,160)				5,416,537


CONSOLIDATED SCHEDULES OF INVESTMENTS			59

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017


Security	Shares		Value
RIGHTS — 0.00%

CHINA — 0.00%
Fosun International Ltd. (Expires 09/07/17)^a		227	$	—

				—

TOTAL RIGHTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 2.11%

MONEY MARKET FUNDS — 2.11%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		9,807,306		9,810,248
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		768,227		768,227

				10,578,475


Security	Value
TOTAL SHORT-TERM INVESTMENTS
(Cost: $10,577,204)	$	10,578,475


TOTAL INVESTMENTS IN SECURITIES — 101.79%
(Cost: $431,862,552)^h		510,289,763

Other Assets, Less Liabilities — (1.79)%		(8,959,458	)

NET ASSETS — 100.00%	$	501,330,305

ADR — American Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $437,054,765. Net unrealized appreciation was $73,234,998, of which $87,538,769 represented gross unrealized appreciation on investments and $14,303,771 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		4,479,688		5,327,618	^b		—		9,807,306	$	9,810,248	$	(779	)	$	1,271	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		—		768,227	^b		—		768,227		768,227		16			—		8,705

										$	10,578,475	$	(763	)	$	1,271	$	8,705

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ASIA ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	494,142,537	$	152,213		$	1	$	494,294,751
Preferred stocks		5,416,537		—			—		5,416,537
Rights		—		0	^a		—		0	^a
Money market funds		10,578,475		—			—		10,578,475

Total	$	510,137,549	$	152,213		$	1	$	510,289,763

Rounds to less than $1.

See notes to consolidated financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			61

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.06%

BRAZIL — 3.97%
AES Tiete Energia SA		41,700	$	187,530
Aliansce Shopping Centers SA^a		41,000		226,732
Alupar Investimento SA Units		59,108		351,291
Arezzo Industria e Comercio SA		19,400		282,265
B2W Cia. Digitala		68,323		401,498
Banco ABC Brasil SA^a		1,093		5,770
BR Properties SA		28,541		99,689
Cia. de Saneamento de Minas Gerais-COPASA		23,700		324,717
Cia. Hering		54,200		465,096
Cosan Logistica SA^a		30,000		76,562
CVC Brasil Operadora e Agencia de Viagens SA		29,700		360,578
Cyrela Brazil Realty SA Empreendimentos e Participacoes		88,000		368,619
EcoRodovias Infraestrutura e Logistica SA		84,800		288,376
Estacio Participacoes SA		93,300		765,330
Even Construtora e Incorporadora SA^a		83,500		126,585
EZ TEC Empreendimentos e Participacoes SA		24,944		176,628
Fleury SA		50,200		505,757
GAEC Educacao SA		13,400		79,639
Guararapes Confeccoes SA		1,800		72,299
Iguatemi Empresa de Shopping Centers SA		24,900		295,972
Iochpe Maxion SA		30,705		197,124
Light SA^a		30,900		202,304
Linx SA		54,400		316,913
Magazine Luiza SA		2,000		361,042
Magnesita Refratarios SA		10,400		130,560
Mahle-Metal Leve SA		17,500		106,509
Marfrig Global Foods SA^a		86,100		195,107
Minerva SA		45,400		167,087
MRV Engenharia e Participacoes SA		102,400		439,027
Multiplus SA		18,900		225,314
Prumo Logistica SA^a		19,300		69,313
Santos Brasil Participacoes SA^a		150,600		138,804
Sao Martinho SA		66,600		369,359


Security	Shares		Value
Ser Educacional SA^b		10,800	$	100,193
SLC Agricola SA		28,200		198,967
Smiles SA		21,900		483,805
TOTVS SA		38,400		379,063
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		29,040		184,497
Via Varejo SA		46,300		242,797
Wiz Solucoes e Corretagem de Seguros SA		19,200		103,919

				10,072,637
CHILE — 1.24%
CAP SA		26,445		310,448
Cia. Sud Americana de Vapores SA^a		4,485,245		233,740
Engie Energia Chile SA		162,014		340,713
Forus SA		21,458		88,753
Inversiones Aguas Metropolitanas SA		151,158		268,045
Inversiones La Construccion SA		12,944		186,346
Parque Arauco SA		219,423		597,684
Ripley Corp. SA		281,203		269,703
SalfaCorp SA		190,257		287,913
Sociedad de Inversiones Oro Blanco SA		7,565,600		75,423
SONDA SA		125,999		232,975
Vina Concha y Toro SA		145,604		246,913

				3,138,656
CHINA — 20.81%
21Vianet Group Inc. ADR^a		26,380		136,912
361 Degrees International Ltd.		306,000		131,761
500.com Ltd. ADR^a,c		9,209		95,221
51job Inc. ADR^a		8,627		512,444
Agile Group Holdings Ltd.		546,000		654,381
AGTech Holdings Ltd.^a,c		932,000		190,533
Ajisen China Holdings Ltd.		411,000		173,297
Anhui Expressway Co. Ltd. Class H		152,000		114,974
Anton Oilfield Services Group/Hong Kong^a,c		1,070,000		98,435
Anxin-China Holdings Ltd.^a,d		1,084,000		26,316
APT Satellite Holdings Ltd.		222,000		110,625
Asia Cement China Holdings Corp.		391,500		130,059


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
AVIC International Holding HK Ltd.^a,c		2,924,000	$	140,102
Baozun Inc. ADR^a,c		8,698		236,499
Beijing Beida Jade Bird Universal Sci-Tech Co. Ltd. Class H^a		196,000		40,069
Beijing Capital Land Ltd. Class H		434,000		219,594
Beijing Enterprises Medical & Health Group Ltd.^a		2,172,000		138,760
Beijing Tong Ren Tang Chinese Medicine Co. Ltd.		142,000		187,242
BEP International Holdings Ltd.^c		4,700,000		113,500
Best Pacific International Holdings Ltd.^c		146,000		81,708
Bitauto Holdings Ltd. ADR^a		7,217		258,369
Boshiwa International Holding Ltd.^a,c,d		32,000		286
Bosideng International Holdings Ltd.^c		1,440,000		123,274
Boyaa Interactive International Ltd.^a		145,000		57,433
BYD Electronic International Co. Ltd.^c		236,500		652,710
C C Land Holdings Ltd.^a		921,000		202,406
C.banner International Holdings Ltd.^a,c		490,000		180,312
Capital Environment Holdings Ltd.^a		3,872,000		143,472
Carnival Group International Holdings Ltd.^a,c		2,492,000		203,781
CGN Meiya Power Holdings Co. Ltd.^a,b,c		842,000		108,660
Changyou.com Ltd. ADR^a		4,741		189,735
Chaowei Power Holdings Ltd.		306,000		158,348
Cheetah Mobile Inc. ADR^a,c		8,421		76,800
Chiho Environmental Group Ltd.^a,c		134,000		77,046
China Aerospace International Holdings Ltd.^c		1,544,000		193,334
China Agri-Industries Holdings Ltd.		779,000		364,295
China Aircraft Leasing Group Holdings Ltd.		62,500		67,320
China All Access Holdings Ltd.^c		570,000		161,682
China Animal Healthcare Ltd.^a,c,d		126,000		4,508
China Animation Characters Co. Ltd.^c		219,000		85,905


Security	Shares		Value
China Beidahuang Industry Group Holdings Ltd.^a		2,228,000	$	103,907
China BlueChemical Ltd. Class H		638,000		196,459
China Chengtong Development Group Ltd.^a,c		1,694,000		110,387
China Datang Corp. Renewable Power Co. Ltd. Class H		1,235,000		137,284
China Dongxiang Group Co. Ltd.		1,371,000		245,245
China Electronics Corp. Holdings Co. Ltd.^c		552,000		78,288
China Electronics Optics Valley Union Holding Co Ltd.		1,296,000		119,226
China Fangda Group Co. Ltd. Class B		379,300		248,620
China First Capital Group Ltd.^a		1,024,000		409,524
China Foods Ltd.		400,000		212,612
China Greenland Broad Greenstate Group Co Ltd.^c		260,000		56,475
China Harmony New Energy Auto Holding Ltd.^a,c		278,500		144,117
China High Speed Transmission Equipment Group Co. Ltd.^c		79,000		81,458
China Huiyuan Juice Group Ltd.^a		284,500		87,970
China Innovationpay Group Ltd.^a,c		2,288,000		116,937
China Lesso Group Holdings Ltd.		409,000		293,694
China Lilang Ltd.		217,000		170,518
China Logistics Property Holdings Co. Ltd.^a,c		505,000		172,281
China LotSynergy Holdings Ltd.^a		4,240,000		78,554
China Lumena New Materials Corp.^a,c,d		210,000		—
China Maple Leaf Educational Systems Ltd.^c		224,000		190,043
China Merchants Land Ltd.		670,000		134,403
China Metal Recycling Holdings Ltd.^a,d		12,000		—
China Metal Resources Utilization Ltd.^a,b,c		252,000		96,274
China Minsheng Financial Holding Corp. Ltd.^a,c		2,960,000		192,884
China Modern Dairy Holdings Ltd.^a		356,000		70,050
China National Materials Co. Ltd. Class H		271,000		118,422
China NT Pharma Group Co. Ltd.		598,500		133,825


CONSOLIDATED SCHEDULES OF INVESTMENTS			63

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
China Ocean Industry Group Ltd.^a,c		6,365,000	$	52,049
China Oil & Gas Group Ltd.^c		2,630,000		184,822
China Overseas Grand Oceans Group Ltd.		368,000		200,305
China Overseas Property Holdings Ltd.^c		590,000		125,140
China Power Clean Energy Development Co. Ltd.		156,000		87,105
China Regenerative Medicine International Ltd.^a,c		4,870,000		123,205
China Resources Phoenix Healthcare Holdings Co. Ltd.^c		185,000		233,778
China SCE Property Holdings Ltd.		587,000		300,008
China Shengmu Organic Milk Ltd.^a,b,c		1,151,000		191,185
China Shineway Pharmaceutical Group Ltd.		224,000		204,353
China Silver Group Ltd.^c		280,000		57,242
China Singyes Solar Technologies Holdings Ltd.		310,000		100,211
China Suntien Green Energy Corp. Ltd. Class H		773,000		167,905
China Traditional Chinese Medicine Holdings Co. Ltd.^c		700,000		423,947
China Travel International Investment Hong Kong Ltd.^c		868,000		271,720
China Water Affairs Group Ltd.		388,000		224,081
China Water Industry Group Ltd.^a,c		884,000		185,239
China Yurun Food Group Ltd.^a		824,000		105,284
China ZhengTong Auto Services Holdings Ltd.		316,500		299,254
Chinasoft International Ltd.^c		670,000		356,126
Chong Sing Holdings FinTech Group Ltd.^a,c		5,168,000		699,944
Chongqing Machinery & Electric Co. Ltd. Class H		1,714,000		210,241
CIFI Holdings Group Co. Ltd.		1,010,000		567,818
CIMC Enric Holdings Ltd.^a,c		288,000		172,216
CITIC Resources Holdings Ltd.^c		1,044,000		120,054
Citychamp Watch & Jewellery Group Ltd.^c		752,000		167,187
COFCO Meat Holdings Ltd.^a,c		649,000		130,191
Cogobuy Group^a,b,c		232,000		157,108


Security	Shares		Value
Colour Life Services Group Co. Ltd.		206,000	$	135,553
Comba Telecom Systems Holdings Ltd.		1,016,894		153,318
Concord New Energy Group Ltd.		3,730,000		157,274
Coolpad Group Ltd.^a,c,d		1,144,000		95,011
COSCO SHIPPING International Hong Kong Co. Ltd.		632,000		267,288
Cosmo Lady China Holdings Co. Ltd.^b,c		264,000		99,171
Crown International Corp Ltd.^a,c		460,000		75,232
CT Environmental Group Ltd.^c		872,000		123,673
Dah Chong Hong Holdings Ltd.^c		369,000		183,405
Dawnrays Pharmaceutical Holdings Ltd.		264,000		157,190
Dazhong Transportation Group Co. Ltd. Class B		354,500		242,478
Digital China Holdings Ltd.^a,c		243,000		146,549
eHi Car Services Ltd. ADR^a		16,640		153,920
Fang Holdings Ltd. ADR^a,c		87,201		322,644
Fantasia Holdings Group Co. Ltd.		1,165,500		157,853
FDG Electric Vehicles Ltd.^a,c		4,405,000		171,665
First Tractor Co. Ltd. Class H		306,000		142,708
Fu Shou Yuan International Group Ltd.^c		445,000		297,938
Fufeng Group Ltd.		557,400		353,964
Future Land Development Holdings Ltd.^c		526,000		215,738
Genscript Biotech Corp.^c		114,000		105,312
Glorious Property Holdings Ltd.^a		1,081,000		120,166
Golden Eagle Retail Group Ltd.		192,000		245,322
Golden Meditech Holdings Ltd.^a		1,024,000		146,539
Greatview Aseptic Packaging Co. Ltd.^c		483,000		296,226
Greenland Hong Kong Holdings Ltd.		365,000		128,251
Greentown China Holdings Ltd.^c		242,500		294,354
Greentown Service Group Co. Ltd.		196,000		119,957
Gridsum Holding Inc. ADR^a		4,179		38,823
Guorui Properties Ltd.		492,000		152,759
Haichang Ocean Park Holdings Ltd.^a,b		747,000		168,939
Hangzhou Steam Turbine Co. Ltd. Class B^a		123,180		129,217


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Harbin Electric Co. Ltd. Class H		268,000	$	136,971
Harmonicare Medical Holdings Ltd.^b		156,000		58,801
HC International Inc.^c		206,000		187,142
Health and Happiness H&H International Holdings Ltd.^a,c		70,000		250,433
Hengdeli Holdings Ltd.		849,600		48,850
HengTen Networks Group Ltd.^a,c		5,988,000		189,744
Hi Sun Technology China Ltd.^a		810,000		187,326
Hilong Holding Ltd.		398,000		51,362
Hisense Kelon Electrical Holdings Co. Ltd. Class H		131,000		155,330
Honghua Group Ltd.^a		533,000		42,223
Hopewell Highway Infrastructure Ltd.		527,500		323,518
Hopson Development Holdings Ltd.		228,000		215,577
Hua Han Health Industry Holdings Ltd. Class H^a,c,d		1,112,400		59,696
Hua Hong Semiconductor Ltd.^b		157,000		208,626
Huabao International Holdings Ltd.		247,000		150,855
Huadian Fuxin Energy Corp. Ltd. Class H		798,000		176,394
Huangshi Dongbei Electrical Appliance Co. Ltd. Class B		68,000		110,296
Huanxi Media Group Ltd.^a,c		530,000		134,084
Huayi Tencent Entertainment Co. Ltd.^a,c		2,070,000		75,379
Hutchison China Meditech Ltd.^a,c		7,540		369,438
Hybrid Kinetic Group Ltd.^a,c,d		5,928,000		136,338
IGG Inc.		285,000		446,448
iKang Healthcare Group Inc. ADR^a,c		18,527		269,197
IMAX China Holding Inc.^a,b		42,000		96,810
Inner Mongolia Yitai Coal Co. Ltd. Class B		384,000		499,968
JA Solar Holdings Co. Ltd. ADR^a,c		17,670		118,036
JinkoSolar Holding Co. Ltd.^a,c		8,677		241,481
Ju Teng International Holdings Ltd.		416,000		164,775
Jumei International Holding Ltd. ADR^a,c		29,080		98,581
K Wah International Holdings Ltd.		482,000		278,985
Kaisa Group Holdings Ltd.^a,c		1,319,000		618,509


Security	Shares		Value
Kama Co. Ltd.^a		123,300	$	127,122
Kingboard Chemical Holdings Ltd.		231,000		1,260,303
Kingboard Laminates Holdings Ltd.		318,000		539,586
Kingdee International Software Group Co. Ltd.^a,c		682,000		290,178
Kong Sun Holdings Ltd.^a		1,450,000		66,697
Konka Group Co. Ltd. Class B^a		238,500		95,992
KuangChi Science Ltd.^a,c		540,000		182,842
KWG Property Holding Ltd.		434,500		395,280
Lao Feng Xiang Co. Ltd. Class B		64,000		246,912
Launch Tech Co. Ltd.		92,000		107,911
Lee & Man Paper Manufacturing Ltd.		572,000		667,271
Lee’s Pharmaceutical Holdings Ltd.		95,000		75,258
Leyou Technologies Holdings Ltd.^a		855,000		187,901
Li Ning Co. Ltd.^a		554,000		410,557
Lifestyle China Group Ltd.^a		266,500		99,429
Lifetech Scientific Corp.^a,c		736,000		162,689
Livzon Pharmaceutical Group Inc. Class H		41,990		228,555
Logan Property Holdings Co. Ltd.		470,000		440,187
Lonking Holdings Ltd.		766,000		304,386
Luthai Textile Co. Ltd. Class B		137,100		153,629
Luye Pharma Group Ltd.^c		433,500		219,341
MMG Ltd.^a,c		760,000		370,947
Nan Hai Corp. Ltd.^c		5,300,000		172,684
National Agricultural Holdings Ltd.^a,c,d		354,000		48,397
NetDragon Websoft Holdings Ltd.^c		58,500		215,270
Nexteer Automotive Group Ltd.		299,000		496,649
Noah Holdings Ltd. ADR^a		10,036		293,954
North Mining Shares Co. Ltd.^a,c		5,840,000		102,974
NQ Mobile Inc. ADR^a,c		37,720		125,608
NVC Lighting Holding Ltd.		511,000		63,333
O-Net Technologies Group Ltd.^a,c		105,000		62,653
Panda Green Energy Group Ltd.^a,c		1,384,000		180,373
PAX Global Technology Ltd.^c		326,000		180,360
Phoenix Satellite Television Holdings Ltd.		912,000		132,842
Poly Property Group Co. Ltd.^a		674,000		353,085


CONSOLIDATED SCHEDULES OF INVESTMENTS			65

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Pou Sheng International Holdings Ltd.^c		778,000	$	144,139
Powerlong Real Estate Holdings Ltd.		241,000		121,940
Q Technology Group Co. Ltd.^c		105,000		244,709
Qingdao Port International Co. Ltd.^b		381,000		221,986
Renhe Commercial Holdings Co. Ltd.^a,c		6,110,000		142,085
Ronshine China Holdings Ltd.^a		101,000		108,660
Seaspan Corp.		18,506		132,133
Shandong Airlines Co. Ltd. Class B		64,200		109,509
Shandong Chenming Paper Holdings Ltd. Class B		252,300		368,145
Shang Gong Group Co. Ltd. Class B^a		152,500		155,092
Shanghai Baosight Software Co. Ltd. Class B		67,400		98,269
Shanghai Dasheng Agricultural Finance Technology Co. Ltd.^c		1,344,000		118,490
Shanghai Haixin Group Co. Class B		151,400		103,558
Shanghai Jin Jiang International Hotels Group Co. Ltd. Class H		414,000		117,962
Shanghai Jinjiang International Industrial Investment Co. Ltd. Class B		78,300		107,193
Shanghai Jinjiang International Travel Co. Ltd. Class B		61,700		182,509
Shanghai Lingyun Industries Development Co. Ltd. Class B^a		103,900		105,355
Shanghai Shibei Hi-Tech Co. Ltd. Class B		178,800		102,452
Shanghai Zhongyida Co. Ltd.^a		144,900		64,480
Shenzhen Expressway Co. Ltd. Class H		272,000		265,520
Shenzhen International Holdings Ltd.		326,000		598,979
Shenzhen Investment Ltd.		1,004,000		457,970
Shougang Concord International Enterprises Co. Ltd.^a		4,410,000		163,407
Shougang Fushan Resources Group Ltd.		916,000		207,159
Shui On Land Ltd.		1,392,500		325,598


Security	Shares		Value
Sino Oil And Gas Holdings Ltd.^a		6,060,000	$	123,888
Sinolink Worldwide Holdings Ltd.^a		1,186,000		168,207
Sinopec Kantons Holdings Ltd.		358,000		221,850
Sinosoft Technology Group Ltd.^c		356,800		109,414
Sinotrans Ltd. Class H		538,000		303,836
Sinotrans Shipping Ltd.		703,000		219,170
Sinotruk Hong Kong Ltd.		271,000		299,863
Skyworth Digital Holdings Ltd.		662,000		307,043
SMI Holdings Group Ltd.^c		456,800		227,044
Sohu.com Inc.^a		9,780		521,665
SSY Group Ltd.		667,970		308,959
Superb Summit International Group Ltd.^a,c,d		238,250		1,827
Tarena International Inc. ADR		13,389		189,053
TCC International Holdings Ltd.		372,000		170,637
TCL Multimedia Technology Holdings Ltd.^a,c		212,000		101,849
Technovator International Ltd.^a,c		400,000		121,128
Texhong Textile Group Ltd.		113,000		128,500
Tian Ge Interactive Holdings Ltd.^b,c		185,000		127,644
Tianjin Development Holdings Ltd.		324,000		174,286
Tianjin Port Development Holdings Ltd.^c		1,486,000		244,931
Tianneng Power International Ltd.^c		284,000		243,124
Tibet Water Resources Ltd.^a,c		672,000		263,598
Tong Ren Tang Technologies Co. Ltd. Class H		208,000		292,342
Tongda Group Holdings Ltd.^c		1,050,000		291,128
Towngas China Co. Ltd.		395,000		267,490
TPV Technology Ltd.		232,000		40,018
Tuniu Corp. ADR^a,c		13,595		101,962
Universal Medical Financial & Technical Advisory Services Co. Ltd.^b,c		126,000		105,289
Vinda International Holdings Ltd.		87,000		154,514
Viva China Holdings Ltd.^a		1,112,000		96,616
Wasion Group Holdings Ltd.		184,000		78,523
Weiqiao Textile Co. Class H^a		137,000		72,820
West China Cement Ltd.^a		1,014,000		146,404
Wisdom Sports Groupa,^c		425,000		55,932
Xiamen International Port Co. Ltd. Class H		898,000		187,025


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Xingda International Holdings Ltd.		392,000	$	150,260
Xinjiang Xinxin Mining Industry Co. Ltd. Class H^a		570,000		80,113
Xinyi Solar Holdings Ltd.^c		1,111,400		377,735
Xinyuan Real Estate Co. Ltd. ADR		21,878		109,828
XTEP International Holdings Ltd.		326,000		115,797
Yanchang Petroleum International Ltd.^a		1,630,000		31,032
Yangtze Optical Fibre and Cable Joint Stock Ltd. Co.^b		68,500		196,053
Yihai International Holding Ltd.		135,000		92,283
Yip’s Chemical Holdings Ltd.^c		444,000		173,596
Yirendai Ltd. ADR^a		3,679		147,160
Yuexiu Property Co. Ltd.		2,478,000		455,931
Yuexiu REIT		575,000		378,364
Yuexiu Transport Infrastructure Ltd.		370,000		283,654
Yuxing InfoTech Investment Holdings Ltd.^a,c		642,000		65,624
Yuzhou Properties Co. Ltd.		347,000		223,014
Zhaojin Mining Industry Co. Ltd. Class H^c		398,500		346,236
Zhonglu Co. Ltd. Class B		33,500		46,498
Zhongsheng Group Holdings Ltd.		173,000		375,777
Zhou Hei Ya International Holdings Co. Ltd.^b		155,000		140,415

				52,744,296
COLOMBIA — 0.30%
Almacenes Exito SA		54,371		283,598
Cemex Latam Holdings SA^a		64,827		246,558
Corp. Financiera Colombiana SA		23,857		233,159

				763,315
CZECH REPUBLIC — 0.15%
Central European Media Enterprises Ltd. AS Class A^a		21,959		91,910
Philip Morris CR AS		410		290,321

				382,231
EGYPT — 0.36%
Alexandria Mineral Oils Co.		116,658		69,096
Ezz Steel^a		67,628		64,296
Heliopolis Housing		41,543		58,245
Juhayna Food Industries^a		128,363		52,334
Medinet Nasr Housing		187,232		103,476


Security	Shares		Value
Orascom Telecom Media And Technology Holding SAE		1,441,060	$	53,856
Oriental Weavers		68,236		70,632
Palm Hills Developments SAE^a		445,760		72,695
Pioneers Holding For Financial Investments SAE^a		129,488		57,265
Sidi Kerir Petrochemicals Co.		56,459		59,560
Six of October Development & Investment^a		80,256		62,260
Talaat Moustafa Group		250,376		108,742
Telecom Egypt Co.		91,293		66,014

				898,471
GREECE — 0.74%
Aegean Airlines SA		13,428		126,918
Grivalia Properties REIC AE		19,455		208,170
Hellenic Exchanges-Athens Stock Exchange SA		27,523		167,210
Hellenic Petroleum SA		23,381		211,818
Motor Oil Hellas Corinth Refineries SA		23,881		536,611
Mytilineos Holdings SA^a		51,343		524,348
Public Power Corp. SA^a		40,598		108,601

				1,883,676
HUNGARY — 0.12%
Magyar Telekom Telecommunications PLC		156,936		297,983

				297,983
INDIA — 13.55%
Adani Enterprises Ltd.		94,247		195,420
Adani Power Ltd.^a		227,514		118,693
Adani Transmissions Ltd.^a		74,409		147,884
Aditya Birla Fashion and Retail Ltd.^a		77,794		208,035
Aegis Logistics Ltd.		20,425		60,595
AIA Engineering Ltd.		16,061		329,404
Ajanta Pharma Ltd.		10,779		201,319
Alembic Pharmaceuticals Ltd.		28,331		230,145
Allcargo Logistics Ltd.		17,860		46,811
Amara Raja Batteries Ltd.		15,881		193,338
Andhra Bank		136,865		112,080
Apollo Tyres Ltd.		100,126		396,894
Arvind Ltd.		52,770		306,006
Avanti Feeds Ltd.		3,434		99,242
Balkrishna Industries Ltd.		15,195		372,731
Balrampur Chini Mills Ltd.		32,320		86,834


CONSOLIDATED SCHEDULES OF INVESTMENTS			67

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Bayer CropScience Ltd./India		5,103	$	319,114
Bharat Financial Inclusion Ltd.^a		10,427		143,431
Biocon Ltd.		55,461		292,374
Birla Corp. Ltd.		4,958		75,231
Blue Dart Express Ltd.		3,188		212,194
Can Fin Homes Ltd.		1,789		80,193
Canara Bank Ltd.		45,291		240,709
Care Ratings Ltd.		10,825		251,049
Ceat Ltd.		8,651		230,829
Century Plyboards India Ltd.		10,909		43,106
Century Textiles & Industries Ltd.		5,392		104,578
Cera Sanitaryware Ltd.		1,496		67,379
CESC Ltd.		30,020		476,976
CG Power and Industrial Solutions Ltd.^a		161,933		203,536
Chennai Petroleum Corp. Ltd.		8,301		58,219
Coromandel International Ltd.		15,520		107,503
Cox & Kings Ltd.		43,129		177,775
CRISIL Ltd.		8,708		257,734
Crompton Greaves Consumer Electricals Ltd.		136,055		466,420
Dalmia Bharat Ltd.^a		8,277		351,291
DCB Bank Ltd.		79,037		227,123
Dewan Housing Finance Corp. Ltd.		52,354		413,746
Dilip Buildcon Ltd.^a,b		8,241		77,871
Dish TV India Ltd.^a		149,999		186,542
Divi’s Laboratories Ltd.^a		23,114		251,799
Dr Lal PathLabs Ltd.^b		4,377		55,508
eClerx Services Ltd.		14,308		282,920
Edelweiss Financial Services Ltd.		119,550		462,388
EID Parry India Ltd.		37,382		189,318
Endurance Technologies Ltd.^b		6,477		101,046
Engineers India Ltd.		29,105		70,798
Escorts Ltd.		15,154		153,445
Eveready Industries India Ltd.^a		17,816		84,654
Exide Industries Ltd.		106,192		327,000
Federal Bank Ltd.		510,122		864,617
Finolex Cables Ltd.		38,961		327,802
Force Motors Ltd.^a		589		35,439
Future Retail Ltd.^a		32,937		275,728
Gateway Distriparks Ltd.		53,141		183,880
Gayatri Projects Ltd.		77,979		215,178
GE T&D India Ltd.		36,648		234,244
Gillette India Ltd.		3,921		331,057


Security	Shares		Value
GMR Infrastructure Ltd.^a		835,981	$	224,929
Godfrey Phillips India Ltd.		3,007		48,106
Godrej Industries Ltd.		13,485		129,173
Great Eastern Shipping Co. Ltd. (The)		49,483		308,658
GRUH Finance Ltd.		21,545		175,744
Gujarat Fluorochemicals Ltd.^a		15,916		178,203
Gujarat Gas Ltd.		21,228		258,683
Gujarat Mineral Development Corp. Ltd.		62,061		137,760
Gujarat Narmada Valley Fertilizers & Chemicals Ltd.		15,734		74,023
Gujarat Pipavav Port Ltd.		81,422		162,841
Gujarat State Petronet Ltd.		81,137		242,423
Hexaware Technologies Ltd.		53,112		226,983
Hindustan Construction Co. Ltd.^a		148,750		80,743
Housing Development & Infrastructure Ltd.^a		125,038		121,466
IIFL Holdings Ltd.		42,162		409,443
India Cements Ltd. (The)		70,815		197,181
Indiabulls Real Estate Ltd.^a		48,969		179,173
Indiabulls Ventures Ltd.		36,051		123,871
Indian Hotels Co. Ltd. (The)		163,015		303,073
Info Edge India Ltd.		26,434		397,898
Inox Leisure Ltd.^a		16,177		62,581
Ipca Laboratories Ltd.		24,089		157,287
IRB Infrastructure Developers Ltd.		73,135		244,942
Jain Irrigation Systems Ltd.		147,040		226,680
Jaiprakash Associates Ltd.^a		426,437		159,431
Jammu & Kashmir Bank Ltd. (The)		95,624		118,546
Jindal Steel & Power Ltd.^a		108,682		233,086
JK Cement Ltd.		4,016		63,143
JM Financial Ltd.		46,256		97,105
Jubilant Foodworks Ltd.		14,302		311,987
Jubilant Life Sciences Ltd.		25,813		283,705
Just Dial Ltd.^a		11,462		70,160
Kajaria Ceramics Ltd.		29,221		320,819
Kansai Nerolac Paints Ltd.		63,172		502,599
Karnataka Bank Ltd. (The)		36,794		87,199
Karur Vysya Bank Ltd. (The)		72,294		160,927
Kaveri Seed Co. Ltd.		7,042		61,281
KPIT Technologies Ltd.		97,425		177,625
KRBL Ltd.^a		28,314		208,569
Kushal Tradelink Ltd.		17,608		33,425


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
L&T Finance Holdings Ltd.		156,387	$	490,007
Laurus Labs Ltd.^b		9,524		78,567
Mahanagar Gas Ltd.		13,096		213,844
Manappuram Finance Ltd.		151,708		235,656
Marksans Pharma Ltd.		138,395		86,380
Max Financial Services Ltd.		40,462		380,750
Max India Ltd.^a		67,371		147,281
MindTree Ltd.		40,974		295,481
MOIL Ltd.		10,060		56,842
Motilal Oswal Financial Services Ltd.		9,102		174,241
Mphasis Ltd.		33,298		317,269
Muthoot Finance Ltd.		36,880		274,756
Natco Pharma Ltd.		23,421		263,424
National Aluminium Co. Ltd.		117,998		133,362
NCC Ltd./India		176,599		233,159
NIIT Technologies Ltd.		11,220		87,503
Oberoi Realty Ltd.^a		42,835		255,296
Page Industries Ltd.		2,269		629,960
PC Jeweller Ltd.		45,380		252,434
Persistent Systems Ltd.		25,375		247,057
PI Industries Ltd.		24,363		275,048
Prestige Estates Projects Ltd.^a		28,739		123,136
PTC India Ltd.		167,075		312,582
PVR Ltd.		12,296		254,176
Rajesh Exports Ltd.		32,381		376,863
Ramco Cements Ltd. (The)		11,543		124,736
Raymond Ltd.		7,049		85,695
RBL Bank Ltd.^b		36,752		313,097
Redington India Ltd.		148,253		343,694
Reliance Capital Ltd.		35,356		445,391
Reliance Communications Ltd.^a		374,950		136,663
Reliance Infrastructure Ltd.		44,249		352,497
Repco Home Finance Ltd.		7,184		73,013
Sadbhav Engineering Ltd.		43,772		198,297
Shilpa Medicare Ltd.		6,875		64,614
Somany Ceramics Ltd.		5,541		68,952
SpiceJet Ltd.^a		40,810		83,534
SRF Ltd.		2,611		62,624
Sterlite Technologies Ltd.		24,254		83,773
Strides Shasun Ltd.		17,931		253,904
Sun Pharma Advanced Research Co. Ltd.^a		33,685		203,608
Sundaram Finance Ltd.		13,788		345,281
Sundram Fasteners Ltd.		26,979		171,261


Security	Shares		Value
Supreme Industries Ltd.		19,057	$	358,193
Suzlon Energy Ltd.^a		867,694		221,246
Symphony Ltd.		9,981		197,251
Syndicate Bank^a		90,829		91,715
Syngene International Ltd.^b		8,139		56,746
Tata Communications Ltd.		16,440		167,650
Tata Global Beverages Ltd.		139,566		432,280
Thermax Ltd.		17,616		245,007
Torrent Power Ltd.		56,566		185,954
TTK Prestige Ltd.		680		66,609
Tube Investments of India Ltd.		36,903		457,894
TVS Motor Co. Ltd.		52,272		493,641
V-Guard Industries Ltd.		24,385		71,008
VA Tech Wabag Ltd.		7,349		70,626
Vakrangee Ltd.		48,465		388,167
Voltas Ltd.		46,030		377,845
VRL Logistics Ltd.		8,105		43,101
WABCO India Ltd.		3,527		302,866
Welspun India Ltd.		98,156		119,075
Whirlpool of India Ltd.^a		5,280		97,636
Wockhardt Ltd.		12,776		120,003

				34,348,867
INDONESIA — 2.29%
Ace Hardware Indonesia Tbk PT		3,223,000		263,309
Alam Sutera Realty Tbk PT		5,573,900		149,562
Aneka Tambang Persero Tbk PT^a		3,630,600		201,367
Bank Bukopin Tbk		2,879,800		128,428
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT		848,000		162,710
Bank Tabungan Negara Persero Tbk PT		1,606,123		362,347
Bumi Resources Tbk PT^a		8,460,500		144,581
Ciputra Development Tbk PT		4,834,863		423,984
Eagle High Plantations Tbk PT^a		2,456,300		39,398
Global Mediacom Tbk PT		1,881,600		68,822
Hanson International Tbk PT^a		24,796,400		250,900
Harum Energy Tbk PT^a		201,000		34,951
Indo Tambangraya Megah Tbk PT		147,500		215,026
Indofarma Persero Tbk PT^a		156,700		29,715
Japfa Comfeed Indonesia Tbk PT		1,819,000		163,604
Kawasan Industri Jababeka Tbk PT		12,440,698		289,058
Krakatau Steel Persero Tbk PT^a		957,100		39,813
Kresna Graha Investama PT Tbk^a		5,929,100		198,200


CONSOLIDATED SCHEDULES OF INVESTMENTS			69

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Link Net Tbk PT		482,000	$	179,910
Medco Energi Internasional Tbk PT^a		433,800		107,296
Mitra Adiperkasa Tbk PT		377,200		197,901
Panin Financial Tbk PT^a		5,194,600		96,557
Pelat Timah Nusantara Tbk PT^a		157,000		40,480
Pembangunan Perumahan Persero Tbk PT		1,298,725		273,529
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		1,387,500		142,993
PP Properti Tbk PT		8,341,369		127,540
PT Delta Dunia Makmur Tbk^a		1,372,000		98,720
PT Tunas Baru Lampung Tbk		881,100		92,455
Ramayana Lestari Sentosa Tbk PT		1,512,800		114,520
Sawit Sumbermas Sarana Tbk PT		514,300		57,821
Semen Baturaja Persero TBK PT		897,200		203,084
Siloam International Hospitals Tbk PT^a		66,500		54,702
Sri Rejeki Isman Tbk PT		2,923,500		81,074
Sugih Energy Tbk PT^a		5,450,300		20,425
Surya Semesta Internusa Tbk PT		2,099,550		104,647
Tambang Batubara Bukit Asam Persero Tbk PT		279,000		258,779
Tiga Pilar Sejahtera Food Tbk^a		937,800		72,749
Timah Persero Tbk PT		1,248,196		89,344
Visi Media Asia Tbk PT^a		2,483,300		52,860
Wijaya Karya Persero Tbk PT		1,155,048		171,846

				5,805,007
MALAYSIA — 3.14%
AirAsia X Bhd^a,c		496,400		43,008
Bumi Armada Bhd^a,c		969,300		166,827
Bursa Malaysia Bhd		176,200		419,200
Cahya Mata Sarawak Bhd^c		307,200		292,058
Carlsberg Brewery Malaysia Bhd		86,500		300,183
DRB-Hicom Bhd^c		220,500		81,581
Eastern & Oriental Bhd		444,281		153,972
Globetronics Technology BHD		71,500		107,489
IGB REIT		939,700		378,476
Inari Amertron Bhd		636,900		378,814
Iskandar Waterfront City Bhd^a		92,400		27,695
Karex Bhd^c		283,300		93,538
Kossan Rubber Industries		123,300		207,882
KPJ Healthcare Bhd		324,750		316,347
Magnum Bhd		428,700		190,734


Security	Shares		Value
Mah Sing Group Bhd		497,057	$	172,262
Malaysia Building Society Bhd		568,000		171,577
Malaysian Pacific Industries Bhd		65,400		215,626
Malaysian Resources Corp. Bhd^c		478,100		134,345
Media Prima Bhd		578,100		94,759
My EG Services Bhd^c		771,500		382,995
OSK Holdings Bhd		504,987		189,200
Padini Holdings Bhd		87,200		84,739
POS Malaysia Bhd^c		141,800		182,625
QL Resources Bhd		298,100		336,458
Scientex BHD		38,200		77,286
Sunway Bhd		411,272		417,965
Sunway Construction Group Bhd		507,720		273,447
Sunway REIT^c		675,900		270,645
Supermax Corp. Bhd		268,700		111,998
TIME dotCom Bhd		157,000		363,962
Top Glove Corp. Bhd^c		264,900		347,989
Tune Protect Group Bhd		243,500		59,870
Unisem M Bhd		297,300		285,430
VS Industry Bhd^c		463,100		257,007
WCT Holdings Bhd^a		492,715		201,909
Yinson Holdings BHD		190,700		162,545

				7,952,443
MEXICO — 2.95%
Alsea SAB de CV		183,059		668,134
Axtel SAB de CV CPO^a,c		331,400		77,352
Banregio Grupo Financiero SAB de CV		78,300		506,719
Bolsa Mexicana de Valores SAB de CV		145,000		251,474
Concentradora Fibra Hotelera Mexicana SA de CV		237,700		195,119
Consorcio ARA SAB de CV		381,400		130,324
Controladora Vuela Cia. de Aviacion SAB de CV Class A^a,c		215,500		271,933
Corp Inmobiliaria Vesta SAB de CV		190,500		280,896
Credito Real SAB de CV SOFOM ER		71,500		133,831
Genomma Lab Internacional SAB de CV Series B^a,c		287,900		370,077
Grupo Aeromexico SAB de CV^a		132,200		267,994
Grupo Aeroportuario del Centro Norte SAB de CV		88,100		534,549


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Grupo Comercial Chedraui SA de CV		113,100	$	243,045
Grupo Financiero Interacciones SA de CV Series O		39,400		236,120
Grupo Herdez SAB de CV		96,000		235,815
Industrias Bachoco SAB de CV Series B		62,400		332,224
Industrias CH SAB de CV Series B^a,c		60,900		292,254
La Comer SAB de CV^a,c		145,600		145,332
Macquarie Mexico Real Estate Management SA de CV		302,100		406,806
Minera Frisco SAB de CV Series A1^a,c		213,000		147,356
PLA Administradora Industrial S. de RL de CV^c		262,600		447,913
Prologis Property Mexico SA de CV		142,200		290,420
Qualitas Controladora SAB de CV		130,100		227,384
Rassini SAB de CV		18,100		83,997
Telesites SAB de CV^a,c		505,500		403,600
TV Azteca SAB de CV CPO^c		505,700		97,039
Unifin Financiera SAB de CV SOFOM ENR		59,800		206,416
Urbi Desarrollos Urbanos SAB de CV^a		1		—

				7,484,123
PAKISTAN — 0.89%
Bank Alfalah Ltd.^a		238,000		90,879
DG Khan Cement Co. Ltd.		77,373		114,353
Engro Fertilizers Ltd.		171,500		94,374
Fauji Cement Co. Ltd.		256,500		83,655
Fauji Fertilizer Co. Ltd.		168,500		113,497
Ferozsons Laboratories Ltd.		14,800		42,771
Honda Atlas Cars Pakistan Ltd.		7,600		39,748
Hub Power Co. Ltd. (The)		210,600		226,395
Indus Motor Co. Ltd.		4,940		81,920
International Steels Ltd.		65,500		76,757
Kot Addu Power Co. Ltd.		159,000		110,106
Maple Leaf Cement Factory Ltd.		79,500		69,540
Millat Tractors Ltd.		8,750		96,860
National Bank of Pakistan		134,500		70,996
National Refinery Ltd.		10,600		65,051
Nishat Mills Ltd.		40,464		54,953
Packages Ltd.		8,650		50,565


Security	Shares		Value
Pak Elektron Ltd.		98,500	$	68,744
PAK Suzuki Motor Co. Ltd.		5,800		24,742
Pakistan Oilfields Ltd.		36,800		168,045
Pakistan State Oil Co. Ltd.		51,091		203,903
Searle Co. Ltd. (The)		25,000		93,277
Shell Pakistan Ltd.		6,400		25,168
SUI Northern Gas Pipeline^a		68,500		95,386
Thal Ltd.		17,700		98,252

				2,259,937
PERU — 0.09%
Grana y Montero SAA SP ADR^a		63,807		232,257

				232,257
PHILIPPINES — 1.01%
Bloomberry Resorts Corp.^a		1,342,600		294,391
Cebu Air Inc.		95,830		202,822
Cosco Capital Inc.		1,371,200		210,088
D&L Industries Inc.		1,072,400		216,702
DoubleDragon Properties Corp.^a		238,110		202,884
Filinvest Land Inc.		6,143,000		229,297
First Gen Corp.		550,500		180,954
First Philippine Holdings Corp.		141,320		185,039
Manila Water Co. Inc.		568,500		343,855
Melco Resorts And Entertainment (Philippines) Corp.^a		482,500		83,827
Petron Corp.		528,100		101,141
Premium Leisure Corp.		2,343,000		74,177
Vista Land & Lifescapes Inc.		2,102,900		244,523

				2,569,700
POLAND — 1.29%
Asseco Poland SA		24,802		314,415
Boryszew SA^a		27,647		80,077
Budimex SA		4,682		297,620
CD Projekt SA		23,209		541,678
Ciech SA^a		9,601		168,543
Enea SA		81,095		346,085
Energa SA^a		49,744		189,877
Globe Trade Centre SA		81,895		226,888
KRUK SA		5,885		561,507
Netia SA		130,213		142,114
PKP Cargo SA^a		11,721		209,367
Warsaw Stock Exchange		14,628		192,889

				3,271,060
QATAR — 0.51%
Gulf International Services QSC		8,804		44,464
Gulf Warehousing Co.		8,485		111,386


CONSOLIDATED SCHEDULES OF INVESTMENTS			71

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Medicare Group		3,317	$	62,892
Qatar First Bank^a		93,324		175,563
Qatar National Cement Co. QSC		13,962		256,905
Salam International Investment Ltd. QSC		43,693		100,795
United Development Co. QSC		65,314		272,108
Vodafone Qatar QSC^a		119,168		271,636

				1,295,749
RUSSIA — 0.64%
Aeroflot PJSC		186,056		623,123
Detsky Mir PJSC^b		23,980		40,094
DIXY Group OJSC^a		51,640		266,759
LSR Group PJSC GDR^e		99,265		282,905
M Video OJSC^a		8,000		56,203
Mechel PJSC^a		30,901		175,518
TMK PJSC GDR^e		38,871		178,807

				1,623,409
SOUTH AFRICA — 5.16%
Adcock Ingram Holdings Ltd.		34,911		169,217
Advtech Ltd.		186,837		261,622
Aeci Ltd.		41,137		338,654
African Rainbow Minerals Ltd.		39,500		333,991
Alexander Forbes Group Holdings Ltd.		309,937		160,721
ArcelorMittal South Africa Ltd.^a		86,086		32,984
Arrowhead Properties Ltd. Class A		373,636		244,922
Ascendis Health Ltd.		75,688		125,200
Assore Ltd.		13,594		290,403
Astral Foods Ltd.		17,055		203,387
Attacq Ltd.^a		140,636		195,846
AVI Ltd.		108,859		827,404
Barloworld Ltd.		72,905		720,777
Blue Label Telecoms Ltd.		177,106		251,948
Cashbuild Ltd.		8,050		230,082
City Lodge Hotels Ltd.		20,692		225,268
Clicks Group Ltd.		81,408		931,988
Clover Industries Ltd.		161,424		198,093
Curro Holdings Ltd.^a,c		55,081		164,851
DataTec Ltd.		66,094		287,666
Delta Property Fund Ltd.		181,804		104,907
Dis-Chem Pharmacies Ltd.^b		60,520		137,360
Emira Property Fund Ltd.		201,700		215,240
EOH Holdings Ltd.		39,670		340,312
Famous Brands Ltd.		25,467		231,598


Security	Shares		Value
Grindrod Ltd.^a		168,375	$	175,014
Harmony Gold Mining Co. Ltd.		140,767		279,855
Hosken Consolidated Investments Ltd.		22,625		231,516
Hudaco Industries Ltd.		9,770		97,719
Invicta Holdings Ltd.		17,271		65,908
JSE Ltd.		28,315		293,596
KAP Industrial Holdings Ltd.		577,705		375,580
Lewis Group Ltd.		43,613		107,376
Metair Investments Ltd.		57,791		87,148
Mpact Ltd.		81,134		168,541
Murray & Roberts Holdings Ltd.		153,001		179,516
Nampak Ltd.^a		208,219		302,456
Northam Platinum Ltd.^a		113,874		430,965
Oceana Group Ltd.		10,233		73,755
Omnia Holdings Ltd.		21,485		233,901
PPC Ltd.^a		553,460		241,866
Raubex Group Ltd.		77,044		134,853
Reunert Ltd.		59,764		319,569
SA Corporate Real Estate Ltd.		668,753		278,358
Sun International Ltd./ South Africa		41,181		183,766
Super Group Ltd./South Africa^a		107,075		340,317
Tongaat Hulett Ltd.		33,205		303,041
Trencor Ltd.		64,609		196,101
Vukile Property Fund Ltd.		222,502		320,978
Wilson Bayly Holmes-Ovcon Ltd.		20,513		218,979
Zeder Investments Ltd.		446,407		218,095

				13,083,210
SOUTH KOREA — 15.58%
Advanced Process Systems Corp.^a		3,951		154,172
Ahnlab Inc.		2,089		95,965
AK Holdings Inc.		1,652		102,847
ALUKO Co. Ltd.		18,405		66,105
Amicogen Inc.^a		3,437		92,661
Aprogen pharmaceuticals Inc.^a,c		33,980		118,580
APS Holdings Corp.^a		1		9
Asiana Airlines Inc.^a		41,711		165,904
ATGen Co. Ltd.^a,c		3,467		89,165
Binex Co. Ltd.^a		11,119		94,368
Binggrae Co. Ltd.		3,708		199,277
Bukwang Pharmaceutical Co. Ltd.		10,436		197,595
Caregen Co. Ltd.		1,470		88,909
Cell Biotech Co. Ltd.		3,531		119,934


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Celltrion Pharm Inc.^a,c		6,647	$	111,707
Chabiotech Co. Ltd.^a		18,088		201,316
Chong Kun Dang Pharmaceutical Corp.^c		2,026		186,861
CJ CGV Co. Ltd.^c		4,915		285,067
CJ Freshway Corp.		3,732		141,324
CJ O Shopping Co. Ltd.		1,419		269,303
CLIO Cosmetics Co. Ltd.		1,847		55,528
CMG Pharmaceutical Co. Ltd.^a,c		32,397		104,293
Com2uSCorp.		3,394		328,083
Cosmax Inc.		2,636		275,850
CrystalGenomics Inc.^a		8,371		100,220
Dae Hwa Pharmaceutical Co. Ltd.^c		5,034		93,975
Daesang Corp.		9,348		199,793
Daewoo Shipbuilding & Marine Engineering Co. Ltd.^a,d		21,862		65,144
Daewoong Pharmaceutical Co. Ltd.		1,889		169,199
Daishin Securities Co. Ltd.		18,528		231,682
Daou Technology Inc.		9,331		163,019
Dawonsys Co. Ltd.		9,863		99,715
DIO Corp.^a		4,220		127,992
Dong-A Socio Holdings Co. Ltd.		1,102		123,628
Dong-A ST Co. Ltd.		1,863		137,957
Dongbu HiTek Co. Ltd.^a		13,125		185,654
Dongjin Semichem Co. Ltd.^c		10,157		168,893
Dongkuk Steel Mill Co. Ltd.		20,598		231,079
Dongwon Development Co. Ltd.		41,929		197,077
Dongwon F&B Co. Ltd.		558		101,198
Doosan Infracore Co. Ltd.^a		43,830		325,343
DoubleUGames Co. Ltd.		3,943		186,730
Douzone Bizon Co. Ltd.		8,553		250,689
Duk San Neolux Co. Ltd.^a		3,001		66,535
Easy Bio Inc.		25,892		153,157
Emerson Pacific Inc.^a,c		3,420		88,108
EO Technics Co. Ltd.		3,030		194,010
Fila Korea Ltd.^c		3,885		243,932
Finetex EnE Inc.^a,c		20,092		81,430
Foosung Co. Ltd.^a		20,618		204,790
G-SMATT GLOBAL Co. Ltd.^a,c		6,347		74,863
G-treeBNT Co. Ltd.^a,c		7,811		189,110
Gamevil Inc.^a,c		2,473		118,430
GemVax & Kael Co. Ltd.^a,c		10,837		102,354
Genexine Co. Ltd.^a		3,427		140,867


Security	Shares		Value
Grand Korea Leisure Co. Ltd.		12,132	$	248,536
Green Cross Cell Corp.		5,010		146,399
Green Cross Corp./South Korea		1,986		319,669
Green Cross Holdings Corp.		8,768		262,433
GS Home Shopping Inc.		1,480		289,411
Halla Holdings Corp.^c		3,287		186,271
Hana Tour Service Inc.		3,514		265,202
Hanall Biopharma Co. Ltd.^a,c		9,542		107,470
Handsome Co. Ltd.		7,456		217,544
Hanil Cement Co. Ltd.		993		113,161
Hanjin Heavy Industries & Construction Co. Ltd.^a		28,472		118,675
Hanjin Kal Corp.^a		15,297		311,339
Hanjin Transportation Co. Ltd.^c		3,836		103,929
Hankook Tire Worldwide Co. Ltd.		11,188		211,338
Hansae Co. Ltd.		6,485		144,354
Hansol Chemical Co. Ltd.		3,451		236,269
Hansol Holdings Co. Ltd.^a		38,387		214,472
Hansol Technics Co. Ltd.^a		8,012		114,396
Hanwha Investment & Securities Co. Ltd.^a		44,091		121,802
Hite Jinro Co. Ltd.		9,790		226,604
HLB Inc.^a,c		10,600		126,907
Homecast Co. Ltd.^a,c		10,009		98,972
HS Industries Co. Ltd.^c		13,734		117,657
Huchems Fine Chemical Corp.		9,439		200,482
Hugel Inc.^a		819		421,266
Humedix Co. Ltd.^c		4,223		120,031
Huons Co. Ltd.^a		2,493		148,793
Huons Global Co. Ltd.		3,282		133,160
Hyundai Construction Equipment Co. Ltd.^a		662		196,968
Hyundai Corp.		7,283		145,001
Hyundai Electric & Energy System Co. Ltd.^a		680		163,728
Hyundai Elevator Co. Ltd.		5,053		233,022
Hyundai Greenfood Co. Ltd.		18,868		289,479
Hyundai Home Shopping Network Corp.		2,605		317,655
Hyundai Livart Furniture Co. Ltd.		5,035		105,156
Hyundai Mipo Dockyard Co. Ltd.^a		3,868		346,460
Hyundai Rotem Co. Ltd.^a		9,413		154,435
Iljin Materials Co. Ltd.^c		7,298		264,387
Ilyang Pharmaceutical Co. Ltd.		5,635		180,904
InBody Co. Ltd.		5,486		153,254


CONSOLIDATED SCHEDULES OF INVESTMENTS			73

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Innocean Worldwide Inc.		3,684	$	234,252
Interflex Co. Ltd.^a		3,120		137,794
Interojo Co. Ltd.		5,370		160,967
Interpark Holdings Corp.		33,208		142,833
iNtRON Biotechnology Inc.^a,c		4,045		112,102
IS Dongseo Co. Ltd.		5,260		166,532
Jayjun Cosmetic Co. Ltd.^a,c		15,670		93,803
Jeil Pharma Holdings Inc.		743		26,390
Jeil Pharmaceutical Co. Ltd.^a		1,798		79,169
Jenax Inc.^a,c		5,457		137,199
Jusung Engineering Co. Ltd.^a		16,387		236,882
JW Holdings Corp.		11,422		94,609
JW Pharmaceutical Corp.		4,200		170,034
JW Shinyak Corp.		15,608		102,568
KC Tech Co. Ltd.^c		9,719		224,099
KEPCO Engineering & Construction Co. Inc.^c		5,812		93,293
KIWOOM Securities Co. Ltd.		3,965		283,767
Koh Young Technology Inc.		5,551		300,294
Kolmar BNH Co. Ltd.^c		5,364		129,391
Kolon Corp.		2,760		162,526
Kolon Industries Inc.^c		5,734		363,587
Kolon Life Science Inc.		1,789		207,839
Komipharm International Co. Ltd.^a		12,171		397,749
Korea Asset In Trust Co. Ltd.		13,799		113,564
Korea Electric Terminal Co. Ltd.		2,963		188,669
Korea Kolmar Co. Ltd.^c		4,827		290,664
Korea Kolmar Holdings Co. Ltd.		3,179		85,424
Korea Line Corp.^a		4,018		126,320
Korea PetroChemical Ind. Co. Ltd.		1,127		267,358
Korea REIT Co. Ltd.		61,694		185,749
Korean Reinsurance Co.		39,943		441,017
KT Skylife Co. Ltd.		14,008		200,008
Kumho Tire Co. Inc.^a,c		43,230		257,632
Kyung Dong Navien Co. Ltd.		2,756		86,644
L&F Co. Ltd.^c		4,874		156,905
Leaders Cosmetics Co. Ltd.^a		5,799		73,285
LEENO Industrial Inc.		5,933		265,186
LF Corp.		11,908		307,310
LG Hausys Ltd.		2,637		231,989
LG International Corp.		10,868		278,061
Lock&Lock Co. Ltd.		11,697		162,862
Loen Entertainment Inc.		2,873		204,596
LOTTE Fine Chemical Co. Ltd.		6,816		263,247


Security	Shares		Value
Lotte Food Co. Ltd.		342	$	187,439
LOTTE Himart Co. Ltd.		3,471		210,550
LS Corp.		6,022		451,276
LS Industrial Systems Co. Ltd.		6,377		329,143
Lutronic Corp.^c		10,965		102,590
Macrogen Inc.^a		8,327		188,310
Mando Corp.		2,314		491,489
Medipost Co. Ltd.^a		3,495		281,745
Meritz Financial Group Inc.		23,700		352,053
Meritz Fire & Marine Insurance Co. Ltd.		25,444		570,888
Meritz Securities Co. Ltd.		122,147		522,667
Modetour Network Inc.		4,911		118,463
Muhak Co. Ltd.		7,428		131,749
Namhae Chemical Corp.		25,277		212,286
Namyang Dairy Products Co. Ltd.		275		165,107
Naturalendo Tech Co. Ltd.^a,c		7,630		217,884
Nexen Tire Corp.		15,015		175,770
NHN Entertainment Corp.^a		3,559		202,316
NHN KCP Corp.^a		8,221		124,307
NICE Holdings Co. Ltd.		9,490		135,920
NICE Information Service Co. Ltd.		16,821		120,683
NongShim Co. Ltd.		1,100		324,361
NS Shopping Co. Ltd.^c		13,047		189,758
NUTRIBIOTECH Co. Ltd.^a,c		4,871		87,260
Osstem Implant Co. Ltd.^a		4,402		279,517
Paradise Co. Ltd.^c		16,456		213,070
Partron Co. Ltd.^c		17,874		142,504
Peptron Inc.^a		2,856		108,531
Poongsan Corp.		8,488		429,067
POSCO Chemtech Co. Ltd.		11,030		322,801
POSCO ICT Co. Ltd.		26,728		156,917
S&T Dynamics Co. Ltd.^a		19,234		154,029
S&T Motiv Co. Ltd.		4,383		203,291
Samsung Engineering Co. Ltd.^a,c		41,997		398,517
Samyang Corp.		1,400		122,295
Samyang Foods Co. Ltd.		2,343		109,711
Samyang Holdings Corp.		1,470		139,491
Seah Besteel Corp.		5,875		184,701
Seegene Inc.^a		6,143		171,607
Seoul Semiconductor Co. Ltd.		15,290		311,197
SFA Engineering Corp.		7,350		246,716
SillaJen Inc.^a,c		17,638		390,270
SK Chemicals Co. Ltd.		5,666		343,698
SK Gas Ltd.		1,237		122,866


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
SK Materials Co. Ltd.		2,043	$	330,837
SK Securities Co. Ltd.^a,c		164,898		184,260
SKC Co. Ltd.		9,196		300,933
SM Entertainment Co.^a,c		8,600		224,991
Songwon Industrial Co. Ltd.		4,737		87,590
Soulbrain Co. Ltd.		3,588		205,238
SPC Samlip Co. Ltd.		894		125,664
Ssangyong Cement Industrial Co. Ltd.		10,815		128,042
Sung Kwang Bend Co. Ltd.		9,932		86,848
Sungwoo Hitech Co. Ltd.		25,672		147,530
Taekwang Industrial Co. Ltd.		192		207,222
Taewoong Co. Ltd.^a		3,767		66,313
TES Co. Ltd./Korea		4,893		131,915
Tongyang Inc.		81,958		154,089
Tongyang Life Insurance Co. Ltd.		21,154		172,031
Toptec Co. Ltd.		7,816		194,430
Vieworks Co. Ltd.		3,020		128,556
ViroMed Co. Ltd.^a		4,609		508,887
Webzen Inc.^a		7,351		121,256
WeMade Entertainment Co. Ltd.		3,046		88,873
WONIK IPS Co. Ltd.^a		8,327		224,495
Woongjin Thinkbig Co. Ltd.^a		17,352		114,644
Youngone Corp.		8,249		247,265
Yuanta Securities Korea Co. Ltd.^a		34,808		112,981
Yungjin Pharmaceutical Co. Ltd.^a		30,060		278,580

				39,500,836
TAIWAN — 17.94%
A-DATA Technology Co. Ltd.		80,000		199,079
AcBel Polytech Inc.		144,000		114,755
Accton Technology Corp.		158,000		413,599
Advanced Ceramic X Corp.		14,000		199,476
Advanced Wireless Semiconductor Co.		69,000		131,008
Airtac International Group		40,586		564,161
Ambassador Hotel (The)		324,000		251,221
AmTRAN Technology Co. Ltd.		338,312		188,331
Asia Optical Co. Inc.		93,000		366,712
Asia Polymer Corp.		501,869		309,313
ASPEED Technology Inc.		9,000		199,211
Basso Industry Corp.		47,000		140,008
BES Engineering Corp.		908,000		194,062
Bizlink Holding Inc.		37,982		331,001
Casetek Holdings Ltd.		35,000		115,975


Security	Shares		Value
Cathay Real Estate Development Co. Ltd.		298,300	$	163,586
Charoen Pokphand Enterprise		45,000		97,816
Chaun-Choung Technology Corp.		26,000		91,322
Cheng Loong Corp.		408,000		244,700
Cheng Uei Precision Industry Co. Ltd.		177,000		241,638
Chin-Poon Industrial Co. Ltd.		119,000		214,901
China Bills Finance Corp.		649,000		321,500
China Man-Made Fiber Corp.		651,700		187,872
China Petrochemical Development Corp.^a		725,000		330,321
China Steel Chemical Corp.		71,000		271,729
China Synthetic Rubber Corp.		289,233		350,292
Chipbond Technology Corp.		211,000		353,077
Chlitina Holding Ltd.		20,000		74,224
Chong Hong Construction Co. Ltd.		81,424		181,848
Chroma ATE Inc.		120,000		411,544
Chunghwa Precision Test Tech Co. Ltd.		4,000		188,210
Compeq Manufacturing Co. Ltd.		386,000		416,326
Concraft Holding Co. Ltd.		12,528		86,761
Coretronic Corp.		183,400		222,725
CSBC Corp. Taiwan^a		383,420		160,081
CTCI Corp.		229,000		370,297
Cub Elecparts Inc.		13,000		159,382
D-Link Corp.		301,246		108,804
E Ink Holdings Inc.		290,000		418,006
Egis Technology Inc.^a		23,000		213,393
Elan Microelectronics Corp.		188,000		268,803
Elite Advanced Laser Corp.		57,840		204,114
Elite Material Co. Ltd.		98,000		493,588
Ennoconn Corp.		15,000		219,192
Epistar Corp.^a		327,000		331,020
Eternal Materials Co. Ltd.		314,532		332,469
Everlight Electronics Co. Ltd.		144,000		216,150
Far Eastern Department Stores Ltd.		280,000		140,097
Far Eastern International Bank		988,360		304,902
Faraday Technology Corp.		119,000		180,004
Feng Hsin Steel Co. Ltd.		188,000		327,672
Firich Enterprises Co. Ltd.		95,267		127,848
FLEXium Interconnect Inc.		105,418		466,328
Formosan Rubber Group Inc.		504,300		251,490


CONSOLIDATED SCHEDULES OF INVESTMENTS			75

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Genius Electronic Optical Co. Ltd.^a		18,000	$	297,028
Getac Technology Corp.		155,000		221,106
Gigabyte Technology Co. Ltd.		177,000		241,052
Gigastorage Corp.^a		192,400		101,686
Ginko International Co. Ltd.		15,000		116,555
Gintech Energy Corp.^a		189,647		102,116
Global Unichip Corp.		39,000		286,242
Gloria Material Technology Corp.		324,850		239,501
Goldsun Building Materials Co. Ltd.^a		613,000		186,262
Gourmet Master Co. Ltd.		26,070		309,257
Grand Pacific Petrochemical		344,000		291,236
Grape King Bio Ltd.		38,000		231,055
Great Wall Enterprise Co. Ltd.		252,128		258,569
Greatek Electronics Inc.		190,000		304,086
HannStar Display Corp.		910,320		371,017
Ho Tung Chemical Corp.^a		880,524		259,089
Holy Stone Enterprise Co. Ltd.		241,500		308,487
Hota Industrial Manufacturing Co. Ltd.		70,192		327,946
Hu Lane Associate Inc.		23,000		128,036
Huaku Development Co. Ltd.		130,080		266,806
Huang Hsiang Construction Corp.		75,000		78,780
Hung Sheng Construction Ltd.		365,000		291,478
International Games System Co. Ltd.		19,000		102,936
Iron Force Industrial Co. Ltd.		24,000		95,431
ITEQ Corp.		118,600		233,435
Jih Sun Financial Holdings Co. Ltd.		657,690		156,473
Kenda Rubber Industrial Co. Ltd.		182,341		260,712
Kerry TJ Logistics Co. Ltd.		191,000		231,638
Kindom Construction Corp.		207,000		125,178
King Slide Works Co. Ltd.		22,000		306,173
King Yuan Electronics Co. Ltd.		392,000		379,933
King’s Town Bank Co. Ltd.		349,000		368,324
Kinpo Electronics		588,000		203,605
Kinsus Interconnect Technology Corp.		101,000		281,123
Land Mark Optoelectronics Corp.		18,400		242,964
LCY Chemical Corp.		181,000		242,601
Lealea Enterprise Co. Ltd.^a		658,590		247,689
Li Cheng Enterprise Co. Ltd.		32,240		74,994
Lien Hwa Industrial Corp.		337,904		308,468


Security	Shares		Value
Long Chen Paper Co. Ltd.		169,751	$	248,898
Makalot Industrial Co. Ltd.		57,559		271,784
Masterlink Securities Corp.		882,121		237,637
Medigen Biotechnology Corp.^a		22,397		34,287
Mercuries & Associates Holding Ltd.		307,330		233,713
Merry Electronics Co. Ltd.		56,000		439,776
Microbio Co. Ltd.^a		281,727		210,509
Mitac Holdings Corp.		231,379		275,625
Motech Industries Inc.^a		150,344		107,606
Nan Kang Rubber Tire Co. Ltd.		239,000		215,804
Neo Solar Power Corp.^a		357,364		162,228
OBI Pharma Inc.^a		36,000		226,648
Pan-International Industrial Corp.		138,722		128,246
Parade Technologies Ltd.		23,000		366,579
PChome Online Inc.		33,305		198,645
PharmaEngine Inc.		29,756		174,519
PharmaEssentia Corp.^a		48,000		235,395
Pharmally International Holding Co. Ltd.		7,000		102,174
Pixart Imaging Inc.		59,635		252,933
Poya International Co. Ltd.		20,453		266,006
President Securities Corp.^a		516,741		237,147
Primax Electronics Ltd.		166,000		393,837
Prince Housing & Development Corp.		528,917		201,549
Qisda Corp.		598,000		428,006
Radiant Opto-Electronics Corp.		158,000		398,416
Radium Life Tech Co. Ltd.^a		515,707		223,856
Ritek Corp.^a		613,260		103,433
Sanyang Motor Co. Ltd.		255,820		175,045
ScinoPharm Taiwan Ltd.		103,708		119,244
Senao International Co. Ltd.		113,000		199,573
Sercomm Corp.		115,000		302,942
Shin Zu Shing Co. Ltd.		61,000		173,829
Shining Building Business Co. Ltd.^a		479,858		166,954
Shinkong Synthetic Fibers Corp.		759,135		228,402
Silergy Corp.		19,000		423,705
Simplo Technology Co. Ltd.		66,000		224,162
Sino-American Silicon Products Inc.		182,000		324,451
Sinyi Realty Inc.		148,588		155,092
Sitronix Technology Corp.		57,000		173,008
Soft-World International Corp.		65,140		155,409


76		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
St. Shine Optical Co. Ltd.		15,000	$	341,960
Sunny Friend Environmental Technology Co. Ltd.		30,000		188,376
TA Chen Stainless Pipe		358,722		225,843
Taichung Commercial Bank Co. Ltd.		875,014		276,894
Tainan Spinning Co. Ltd.		399,190		179,231
Taiwan Glass Industry Corp.^a		294,000		159,767
Taiwan Hon Chuan Enterprise Co. Ltd.		165,004		299,073
Taiwan Paiho Ltd.		85,050		356,500
Taiwan Secom Co. Ltd.		155,450		459,463
Taiwan Shin Kong Security Co. Ltd.		266,640		356,945
Taiwan Surface Mounting Technology Corp.		361,633		298,375
Taiwan TEA Corp.		393,000		209,659
Taiwan Union Technology Corp.		57,000		139,199
Tatung Co. Ltd.^a		626,000		289,363
TCI Co. Ltd.		16,000		100,202
Ton Yi Industrial Corp.		366,000		173,425
Tong Hsing Electronic Industries Ltd.		53,000		213,377
Tong Yang Industry Co. Ltd.		133,133		249,247
Toung Loong Textile Manufacturing		61,000		163,925
TPK Holding Co. Ltd.^a		90,000		369,794
Tripod Technology Corp.		169,000		632,791
TSRC Corp.		235,000		248,401
TTY Biopharm Co. Ltd.		80,450		255,380
Tung Ho Steel Enterprise Corp.		318,000		253,945
Tung Thih Electronic Co. Ltd.		22,000		133,040
TWi Pharmaceuticals Inc.^a		38,000		91,666
TXC Corp.		177,000		239,879
U-Ming Marine Transport Corp.		109,000		138,692
Unimicron Technology Corp.		437,000		249,785
UPC Technology Corp.		391,202		193,793
USI Corp.		466,089		232,434
Visual Photonics Epitaxy Co. Ltd.		94,425		190,859
Voltronic Power Technology Corp.		19,077		343,878
Wah Lee Industrial Corp.		190,000		304,715
Walsin Lihwa Corp.		920,000		443,553
Walsin Technology Corp.		122,200		278,988
Waterland Financial Holdings Co. Ltd.		997,097		291,738


Security	Shares		Value
Win Semiconductors Corp.		109,736	$	632,694
Winbond Electronics Corp.		925,000		709,558
Wistron NeWeb Corp.		100,923		303,648
Wowprime Corp.		19,000		114,268
WT Microelectronics Co. Ltd.		183,168		305,897
XinTec Inc.^a		45,000		91,554
Yageo Corp.		90,289		580,406
Yang Ming Marine Transport Corp.^a		219,000		121,550
Yeong Guan Energy Technology Group Co. Ltd.		28,601		78,755
YFY Inc.^a		656,000		260,844
Yieh Phui Enterprise Co. Ltd.		507,342		206,776
YungShin Global Holding Corp.		220,200		292,223
Yungtay Engineering Co. Ltd.		180,000		335,200
Zinwell Corp.		148,000		139,766

				45,485,377
THAILAND — 3.53%
Amata Corp. PCL NVDR		387,200		214,560
Bangchak Corp. PCL NVDR		214,600		245,590
Bangkok Airways PCL^c		266,800		149,450
Bangkok Chain Hospital PCL NVDR		558,700		249,022
Bangkok Land PCL NVDR		5,714,800		311,513
Beauty Community PCL		763,900		317,477
CH Karnchang PCL NVDR		195,900		169,617
Chularat Hospital PCL NVDR		2,303,000		170,618
Eastern Polymer Group PCL^c		322,600		111,727
Esso Thailand PCL NVDR^a		561,700		204,685
GFPT PCL NVDR		198,800		114,951
Global Power Synergy PCL NVDR^c		210,600		247,354
Group Lease PCL^c		136,100		80,336
Gunkul Engineering PCL NVDR^c		1,292,183		160,331
Hana Microelectronics PCL NVDR		241,500		318,194
Italian-Thai Development PCL NVDR		1,006,300		126,678
Jasmine International PCL NVDR		830,600		195,112
Khon Kaen Sugar Industry PCL NVDR^c		713,330		95,812
Kiatnakin Bank PCL NVDR		155,532		329,051
Krungthai Card PCL NVDR^c		53,000		189,941
LPN Development PCL NVDR		485,200		157,812
Major Cineplex Group PCL NVDR		165,700		149,706
Malee Group PCL^c		40,900		49,886


CONSOLIDATED SCHEDULES OF INVESTMENTS			77

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Muangthai Leasing PCL^c		183,600	$	187,996
PTG Energy PCL		282,500		178,663
Quality Houses PCL NVDR^c		3,233,967		233,746
Samart Corp. PCL NVDR		258,600		105,917
Siam Global House PCL NVDR^c		608,595		274,926
Sino-Thai Engineering & Construction PCL NVDR		340,428		266,560
Sri Trang Agro-Industry PCL NVDR^c		276,400		99,056
Srisawad Corp PCL NVDR^c		212,925		328,637
Supalai PCL NVDR^c		384,500		292,384
Superblock PCL^a		4,195,400		169,307
Taokaenoi Food & Marketing PCL^c		106,700		62,661
Thai Airways International PCL NVDR^a		267,200		145,650
Thai Vegetable Oil PCL NVDR		213,600		183,334
Thaicom PCL NVDR		289,000		128,812
Thanachart Capital PCL NVDR		281,700		396,611
Tisco Financial Group PCL NVDR		142,340		320,431
TTW PCL NVDR		905,600		297,276
U City PCL NVDR^a		229,475,900		138,218
VGI Global Media PCL NVDR		1,085,900		179,866
Vibhavadi Medical Center PCL NVDR		2,428,700		203,336
WHA Corp. PCL NVDR		2,885,800		276,369
Workpoint Entertainment PCL		53,100		117,538

				8,946,717
TURKEY — 1.21%
Akcansa Cimento AS		65,023		209,992
Aksa Akrilik Kimya Sanayii AS		51,361		186,548
Aygaz AS		23,588		106,990
Besiktas Futbol Yatirimlari Sanayi ve Ticaret AS^a,c		50,780		69,569
Cimsa Cimento Sanayi VE Ticaret AS		60,064		249,299
Dogan Sirketler Grubu Holding AS^a,c		464,836		123,865
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D^a,c		295,428		203,652
Koza Altin Isletmeleri AS^a		17,778		165,496
Logo Yazilim Sanayi Ve Ticaret AS^a,c		5,649		94,571
NET Holding AS^a,c		237,007		180,541


Security	Shares		Value
Otokar Otomotiv Ve Savunma Sanayi AS^c		4,595	$	153,719
Soda Sanayii AS		111,306		167,964
Tekfen Holding AS		71,223		264,259
Trakya Cam Sanayii AS		302,064		321,964
Turkiye Sinai Kalkinma Bankasi AS		514,338		226,439
Vestel Elektronik Sanayi ve Ticaret AS^a,c		40,897		99,028
Yazicilar Holding AS^c		20,690		135,195
Zorlu Enerji Elektrik Uretim AS^a,c		227,105		114,455

				3,073,546
UNITED ARAB EMIRATES — 0.59%
Agthia Group PJSC		66,027		98,867
Air Arabia PJSC		859,182		261,981
Al Waha Capital PJSC		343,180		164,438
Amanat Holdings PJSC		454,609		137,382
Amlak Finance PJSC^a		303,003		93,217
Arabtec Holding PJSC^a		218,296		190,179
Dana Gas PJSC^a		1,193,608		207,974
Deyaar Development PJSC^a		674,225		95,817
Eshraq Properties Co. PJSC^a		430,265		101,911
Orascom Construction Ltd.^a		21,424		134,971

				1,486,737

TOTAL COMMON STOCKS (Cost: $222,675,864)				248,600,240

PREFERRED STOCKS — 1.42%

BRAZIL — 1.38%
Alpargatas SA, Preference Shares		55,400		242,979
Banco ABC Brasil SA, Preference Shares		31,043		167,821
Banco do Estado do Rio Grande do Sul SA Class B, Preference Shares		59,000		317,272
Bradespar SA, Preference Shares		76,700		655,245
Cia. de Gas de Sao Paulo – COMGAS, Preference Shares		6,800		116,703
Cia. de Saneamento do Parana, Preference Shares		94,600		313,885
Cia. Energetica de Sao Paulo Class B, Preference Shares		68,400		320,212


78		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017


Security	Shares		Value
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, Preference Shares		33,800	$	171,017
GOL Linhas Aereas Inteligentes SA, Preference Shares		26,100		93,983
Marcopolo SA, Preference Shares		207,700		256,783
Metalurgica Gerdau SA, Preference Shares		210,300		378,299
Randon SA Implemetos e Participacoes, Preference Shares		68,325		138,541
Usinas Siderurgicas de Minas Gerais SA Class A, Preference Shares		147,600		323,210

				3,495,950
COLOMBIA — 0.04%
Avianca Holdings SA, Preference Shares		120,421		114,909

				114,909

TOTAL PREFERRED STOCKS (Cost: $2,596,503)				3,610,859

RIGHTS — 0.01%

CHINA — 0.01%
Carnival Group International Holdings Ltd. (Expires 09/21/17)^a		585,500		17,954
Digital China Holdings Ltd. (Expires 09/07/17)^a		60,749		4,968

				22,922

TOTAL RIGHTS (Cost: $0)				22,922

WARRANTS — 0.00%

THAILAND — 0.00%
Superblock PCL NVDR (Expires 08/31/20)^a		839,080		—

				—

TOTAL WARRANTS (Cost: $0)				—


Security	Shares		Value
SHORT-TERM INVESTMENTS — 10.10%

MONEY MARKET FUNDS — 10.10%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^f,g,h		25,015,086	$	25,022,591
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^f,g		579,280		579,280

				25,601,871

TOTAL SHORT-TERM INVESTMENTS (Cost: $25,597,387)				25,601,871


TOTAL INVESTMENTS IN SECURITIES — 109.59% (Cost: $250,869,754)ⁱ				277,835,892
Other Assets, Less Liabilities — (9.59)%				(24,316,799	)

NET ASSETS — 100.00%			$	253,519,093

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

^d	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	Affiliated issuer. See Schedule 1.

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

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

ⁱ

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $255,795,512. Net unrealized appreciation was $22,040,380, of which $44,087,291 represented gross unrealized appreciation on investments and $22,046,911 represented gross unrealized depreciation on investments.


CONSOLIDATED SCHEDULES OF INVESTMENTS			79

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS SMALL-CAP ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		14,859,449		10,155,637^b		—		25,015,086	$	25,022,591	$	(652	)	$	4,484	$	—^c
BlackRock Cash Funds: Treasury, SL Agency Shares		149,857		429,423^b		—		579,280		579,280		115			—		2,958

									$	25,601,871	$	(537	)	$	4,484	$	2,958

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	247,581,195	$	581,522		$	437,523	$	248,600,240
Preferred stocks		3,610,859		—			—		3,610,859
Rights		4,968		17,954			—		22,922
Warrants		—		0	^a		—		0	^a
Money market funds		25,601,871		—			—		25,601,871

Total	$	276,798,893	$	599,476		$	437,523	$	277,835,892

Rounds to less than $1.

See notes to consolidated financial statements.


80		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares Core MSCI Emerging Markets ETF			iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	30,801,116,546		$	218,330,138		$	421,285,348
Affiliated (Note 2)		2,656,155,849			25,662,112			10,577,204

Total cost of investments in securities	$	33,457,272,395		$	243,992,250		$	431,862,552

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	36,637,778,971		$	260,963,604		$	499,711,288
Affiliated (Note 2)		2,656,461,709			25,664,249			10,578,475
Foreign currency, at value^b		44,169,326			255,775			599,944
Cash		6,524,166			36,035			—
Receivables:
Investment securities sold		32,929,266			—			646,872
Due from custodian (Note 4)		1,995,341			—			—
Dividends and interest		72,785,145			537,661			1,024,666
Capital shares sold		3,915,465			—			—
Futures variation margin		6,970,178			—			—
Tax reclaims		109,496			—			—

Total Assets		39,463,639,063			287,457,324			512,561,245


LIABILITIES
Payables:
Investment securities purchased		125,348,822			—			1,113,844
Collateral for securities on loan (Note 1)		2,545,167,897			25,501,156			9,809,756
Due to broker		37,602			—			—
Foreign taxes (Note 1)		1,441,301			—			21,049
Deferred foreign capital gains taxes (Note 1)		12,089,148			108,601			82,873
Investment advisory fees (Note 2)		4,256,753			145,861			203,418

Total Liabilities		2,688,341,523			25,755,618			11,230,940


NET ASSETS	$	36,775,297,540		$	261,701,706		$	501,330,305


Net assets consist of:
Paid-in capital	$	31,651,297,079		$	449,922,901		$	450,270,056
Undistributed net investment income		335,190,679			2,438,261			4,251,863
Accumulated net realized loss		(1,043,223,526	)		(233,187,843	)		(31,537,042	)
Net unrealized appreciation		5,832,033,308			42,528,387			78,345,428

NET ASSETS	$	36,775,297,540		$	261,701,706		$	501,330,305


Shares outstanding^c		682,200,000			6,200,000			7,250,000


Net asset value per share	$	53.91		$	42.21		$	69.15

^a	Securities on loan with values of $2,434,126,083, $24,886,520 and $9,196,235, respectively. See Note 1.

^b	Cost of foreign currency: $44,143,839, $255,727 and $599,911, respectively.

^c	$0.001 par value, number of shares authorized: 2.05 billion, 500 million and 500 million, respectively.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			81

Consolidated Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017



	iShares MSCI Emerging Markets Small-Cap ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	225,272,367
Affiliated (Note 2)		25,597,387

Total cost of investments in securities	$	250,869,754

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	252,234,021
Affiliated (Note 2)		25,601,871
Foreign currency, at value^b		271,614
Cash		104,422
Receivables:
Investment securities sold		1,352,353
Dividends and interest		732,330
Tax reclaims		593

Total Assets		280,297,204


LIABILITIES
Payables:
Investment securities purchased		1,605,127
Collateral for securities on loan (Note 1)		25,018,758
Foreign taxes (Note 1)		12,766
Investment advisory fees (Note 2)		141,460

Total Liabilities		26,778,111


NET ASSETS	$	253,519,093


Net assets consist of:
Paid-in capital	$	239,609,968
Undistributed net investment income		1,578,413
Accumulated net realized loss		(14,637,130	)
Net unrealized appreciation		26,967,842

NET ASSETS	$	253,519,093


Shares outstanding^c		5,150,000


Net asset value per share	$	49.23

^a	Securities on loan with a value of $22,061,100. See Note 1.

^b	Cost of foreign currency: $271,187.

^c	$0.001 par value, number of shares authorized: 500 million.

See notes to consolidated financial statements.


82		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares Core MSCI Emerging Markets ETF			iShares MSCI BRIC ETF			iShares MSCI Emerging Markets Asia ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	677,585,642		$	5,424,613		$	7,504,846
Dividends — affiliated (Note 2)		368,419			1,236			8,705
Interest — unaffiliated		14,298			—			—
Securities lending income — affiliated — net (Note 2)^b		32,105,306			103,065			104,404

		710,073,665			5,528,914			7,617,955
Less: Other foreign taxes (Note 1)		(1,990,452	)		—			(35,518	)

Total investment income		708,083,213			5,528,914			7,582,437


EXPENSES
Investment advisory fees (Note 2)		34,726,501			1,431,569			1,400,953
Mauritius income taxes (Note 1)		542,487			10,989			1,794
Proxy fees		623,303			6,616			7,188
Commitment fees (Note 8)		178,211			3,383			2,677
Interest expense (Note 8)		83,846			1,451			1,477

Total expenses		36,154,348			1,454,008			1,414,089
Less investment advisory fees waived (Note 2)		(1,137,131	)		—			—

Net expenses		35,017,217			1,454,008			1,414,089

Net investment income		673,065,996			4,074,906			6,168,348


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^c		(275,864,953	)		(7,937,555	)		(5,164,422	)
Investments — affiliated (Note 2)		(123,726	)		1,489			(779	)
In-kind redemptions — unaffiliated		—			12,318,779			3,329,261
Futures contracts		27,548,406			—			—
Foreign currency transactions		(2,981,251	)		21,155			(95,631	)
Realized gain distributions from affiliated funds		3,710			6			16

Net realized gain (loss)		(251,417,814	)		4,403,874			(1,931,555	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated^d		5,494,055,695			45,790,926			71,497,555
Investments — affiliated (Note 2)		305,860			2,137			1,271
Futures contracts		1,991,138			—			—
Translation of assets and liabilities in foreign currencies		240,701			(1,139	)		4,624

Net change in unrealized appreciation/depreciation		5,496,593,394			45,791,924			71,503,450

Net realized and unrealized gain		5,245,175,580			50,195,798			69,571,895

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	5,918,241,576		$	54,270,704		$	75,740,243

a	Net of foreign withholding tax of $80,593,821, $452,489 and $1,007,836, respectively.

b	Net of securities lending income tax paid of $1,660,136, $ — and $ —, respectively.

c	Net of foreign capital gains taxes of $165, $ — and $ —, respectively.

d	Net of deferred foreign capital gains taxes of $12,089,148, $108,601 and $82,873, respectively.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			83

Consolidated Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017



	iShares MSCI Emerging Markets Small-Cap ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	4,657,615
Dividends — affiliated (Note 2)		2,958
Interest — unaffiliated		5
Securities lending income — affiliated — net (Note 2)		906,447

		5,567,025
Less: Other foreign taxes (Note 1)		(21,007	)

Total investment income		5,546,018


EXPENSES
Investment advisory fees (Note 2)		1,264,169
Proxy fees		4,633
Commitment fees (Note 8)		1,873
Interest expense (Note 8)		3,287

Total expenses		1,273,962

Net investment income		4,272,056


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(1,041,450	)
Investments — affiliated (Note 2)		(652	)
Foreign currency transactions		(9,165	)
Realized gain distributions from affiliated funds		115

Net realized loss		(1,051,152	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		29,199,841
Investments — affiliated (Note 2)		4,484
Translation of assets and liabilities in foreign currencies		2,616

Net change in unrealized appreciation/depreciation		29,206,941

Net realized and unrealized gain		28,155,789

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	32,427,845

^a	Net of foreign withholding tax of $509,031.

^b	Net of foreign capital gains taxes of $23.

See notes to consolidated financial statements.


84		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Statements of Changes in Net Assets

iSHARES^®, INC.



	iShares Core MSCI Emerging Markets ETF						iShares MSCI BRIC ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	673,065,996		$	300,560,736		$	4,074,906		$	3,742,371
Net realized gain (loss)		(251,417,814	)		(543,220,439	)		4,403,874			(22,678,091	)
Net change in unrealized appreciation/depreciation		5,496,593,394			1,646,957,449			45,791,924			36,181,152

Net increase in net assets resulting from operations		5,918,241,576			1,404,297,746			54,270,704			17,245,432


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(472,049,457	)		(238,601,549	)		(2,786,991	)		(4,397,149	)

Total distributions to shareholders		(472,049,457	)		(238,601,549	)		(2,786,991	)		(4,397,149	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		15,325,617,290			7,812,461,106			130,590,725			12,282
Cost of shares redeemed		—			—			(102,860,630	)		(27,130,689	)

Net increase (decrease) in net assets from capital share transactions		15,325,617,290			7,812,461,106			27,730,095			(27,118,407	)

INCREASE (DECREASE) IN NET ASSETS		20,771,809,409			8,978,157,303			79,213,808			(14,270,124	)

NET ASSETS
Beginning of year		16,003,488,131			7,025,330,828			182,487,898			196,758,022

End of year	$	36,775,297,540		$	16,003,488,131		$	261,701,706		$	182,487,898

Undistributed net investment income included in net assets at end of year	$	335,190,679		$	110,497,865		$	2,438,261		$	1,089,171


SHARES ISSUED
Shares sold		323,400,000			186,400,000			3,600,000			—
Shares redeemed		—			—			(2,850,000	)		(950,000	)

Net increase (decrease) in shares outstanding		323,400,000			186,400,000			750,000			(950,000	)

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL STATEMENTS			85

Consolidated Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Emerging Markets Asia ETF						iShares MSCI Emerging Markets Small-Cap ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	6,168,348		$	2,513,325		$	4,272,056		$	2,035,989
Net realized loss		(1,931,555	)		(9,379,096	)		(1,051,152	)		(6,143,159	)
Net change in unrealized appreciation/depreciation		71,503,450			24,288,569			29,206,941			14,192,002

Net increase in net assets resulting from operations		75,740,243			17,422,798			32,427,845			10,084,832


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,388,608	)		(2,586,361	)		(3,832,107	)		(2,370,926	)

Total distributions to shareholders		(3,388,608	)		(2,586,361	)		(3,832,107	)		(2,370,926	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		262,708,017			92,508,092			103,772,829			37,316,559
Cost of shares redeemed		(50,592,389	)		(15,118,523	)		—			—

Net increase in net assets from capital share transactions		212,115,628			77,389,569			103,772,829			37,316,559

INCREASE IN NET ASSETS		284,467,263			92,226,006			132,368,567			45,030,465

NET ASSETS
Beginning of year		216,863,042			124,637,036			121,150,526			76,120,061

End of year	$	501,330,305		$	216,863,042		$	253,519,093		$	121,150,526

Undistributed net investment income included in net assets at end of year	$	4,251,863		$	1,121,945		$	1,578,413		$	278,839


SHARES ISSUED AND REDEEMED
Shares sold		4,300,000			1,700,000			2,350,000			900,000
Shares redeemed		(900,000	)		(300,000	)		—			—

Net increase in shares outstanding		3,400,000			1,400,000			2,350,000			900,000

See notes to consolidated financial statements.


86		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares Core MSCI Emerging Markets ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Period from Oct. 18, 2012^a to Aug. 31, 2013
Net asset value, beginning of period	$	44.60		$	40.75		$	53.89		$	45.71		$	49.06

Income from investment operations:
Net investment income^b		1.31			1.20			1.21			1.31			1.33
Net realized and unrealized gain (loss)^c		8.95			3.58			(13.26	)		7.78			(4.14	)

Total from investment operations		10.26			4.78			(12.05	)		9.09			(2.81	)

Less distributions from:
Net investment income		(0.95	)		(0.93	)		(1.09	)		(0.91	)		(0.54	)

Total distributions		(0.95	)		(0.93	)		(1.09	)		(0.91	)		(0.54	)

Net asset value, end of period	$	53.91		$	44.60		$	40.75		$	53.89		$	45.71


Total return		23.45	%		11.99	%		(22.61	)%		20.05	%		(5.75	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	36,775,298		$	16,003,488		$	7,025,331		$	5,669,167		$	1,864,965
Ratio of expenses to average net assets^e		0.14	%		0.17	%		0.18	%		0.17	%		0.05	%
Ratio of expenses to average net assets prior to waived fees^e		0.15	%		0.17	%		0.18	%		0.18	%		0.18	%
Ratio of net investment income to average net assets^e		2.74	%		2.93	%		2.49	%		2.61	%		3.17	%
Portfolio turnover rate^f		4	%		10	%		7	%		8	%		15	%^d

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and the period ended August 31, 2013 were 4%, 10%, 7%, 8% and 15%, respectively. See Note 4.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			87

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI BRIC ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	33.48		$	30.74		$	41.12		$	34.41		$	35.68

Income from investment operations:
Net investment income^a		0.70			0.64			0.77			0.89			0.84
Net realized and unrealized gain (loss)^b		8.57			2.84			(10.20	)		6.53			(1.25	)

Total from investment operations		9.27			3.48			(9.43	)		7.42			(0.41	)

Less distributions from:
Net investment income		(0.54	)		(0.74	)		(0.95	)		(0.71	)		(0.86	)

Total distributions		(0.54	)		(0.74	)		(0.95	)		(0.71	)		(0.86	)

Net asset value, end of year	$	42.21		$	33.48		$	30.74		$	41.12		$	34.41


Total return		28.15	%		11.61	%		(23.19	)%		21.73	%		(1.17	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	261,702		$	182,488		$	196,758		$	411,164		$	474,861
Ratio of expenses to average net assets		0.70	%		0.73	%		0.69	%		0.68	%		0.67	%
Ratio of net investment income to average net assets		1.96	%		2.13	%		2.07	%		2.38	%		2.18	%
Portfolio turnover rate^c		24	%		20	%		9	%		10	%		10	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

See notes to consolidated financial statements.


88		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Emerging Markets Asia ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	56.33		$	50.87		$	62.08		$	52.23		$	50.18

Income from investment operations:
Net investment income^a		1.31			1.02			1.25			1.36			1.15
Net realized and unrealized gain (loss)^b		12.43			5.54			(11.61	)		9.75			1.82

Total from investment operations		13.74			6.56			(10.36	)		11.11			2.97

Less distributions from:
Net investment income		(0.92	)		(1.10	)		(0.85	)		(1.26	)		(0.92	)

Total distributions		(0.92	)		(1.10	)		(0.85	)		(1.26	)		(0.92	)

Net asset value, end of year	$	69.15		$	56.33		$	50.87		$	62.08		$	52.23


Total return		24.80	%		13.14	%		(16.86	)%		21.54	%^c		5.88	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	501,330		$	216,863		$	124,637		$	80,706		$	31,341
Ratio of expenses to average net assets		0.49	%		0.49	%		0.49	%		0.49	%		0.49	%
Ratio of expenses to average net assets prior to waived fees		n/a			0.66	%		0.68	%		0.68	%		0.68	%
Ratio of net investment income to average net assets		2.16	%		1.98	%		2.10	%		2.36	%		2.09	%
Portfolio turnover rate^d		15	%		22	%		16	%		33	%		174	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c	Includes payment from an affiliate. Not including these proceeds, the Fund’s total return would have been 21.46%.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31,2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 6%, 16%, 10%, 33% and 21% , respectively. See Note 4.

See notes to consolidated financial statements.


CONSOLIDATED FINANCIAL HIGHLIGHTS			89

Consolidated Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Emerging Markets Small-Cap ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	43.27		$	40.06		$	51.37		$	43.78		$	43.44

Income from investment operations:
Net investment income^a		1.04			0.90			1.04			0.93			1.07
Net realized and unrealized gain (loss)^b		5.81			3.36			(11.06	)		7.67			1.13

Total from investment operations		6.85			4.26			(10.02	)		8.60			2.20

Less distributions from:
Net investment income		(0.89	)		(1.05	)		(1.29	)		(1.01	)		(1.86	)

Total distributions		(0.89	)		(1.05	)		(1.29	)		(1.01	)		(1.86	)

Net asset value, end of year	$	49.23		$	43.27		$	40.06		$	51.37		$	43.78


Total return		16.17	%		10.83	%		(19.77	)%		19.92	%^c		4.85	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	253,519		$	121,151		$	76,120		$	43,666		$	30,644
Ratio of expenses to average net assets		0.69	%		0.71	%		0.69	%		0.67	%		0.67	%
Ratio of net investment income to average net assets		2.32	%		2.20	%		2.20	%		1.93	%		2.26	%
Portfolio turnover rate^d		19	%		24	%		23	%		20	%		21	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^c	Includes payment from an affiliate. Not including these proceeds, the Fund’s total return would have been 19.73%.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 19%, 24%, 23%, 20% and 21% respectively. See Note 4.

See notes to consolidated financial statements.


90		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements

iSHARES^®, INC.

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


iShares ETF		Diversification Classification
Core MSCI Emerging Markets		Diversified
MSCI BRIC		Diversified
MSCI Emerging Markets Asia		Diversified
MSCI Emerging Markets Small-Cap		Diversified

Each Fund carries out its investment strategies associated with investment in Indian securities by investing in a wholly-owned subsidiary in the Republic of Mauritius (each, a “Subsidiary”), which in turn invests in Indian securities included in the underlying index. The investment adviser of each Fund also serves as the investment adviser to each Subsidiary. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for each Fund include the accounts of its Subsidiary. Intercompany accounts and transactions, if any, have been eliminated.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			91

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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

•

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

•


92		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their consolidated statements of operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “other foreign taxes”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of August 31, 2017, if any, are disclosed in the Funds’ consolidated statements of assets and liabilities.

Each Fund conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			93

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

Subsidiary must, on an annual basis, satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.

Based upon current interpretation and practice of the current tax laws in India and Mauritius and the DTAA, each Subsidiary is subject to tax in Mauritius on its net income at the rate of 15%. However, a system of tax credits effectively reduces the Mauritius income tax rate to a maximum of 3%. Taxes on income, if any, are paid by the Subsidiaries and are disclosed in the consolidated statements of operations. Any dividends paid by a Subsidiary to its Fund are not subject to tax in Mauritius. Each Subsidiary is currently exempt from tax in Mauritius on any gains from the sale of securities.

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.

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES

Cash received as collateral for securities on loan may be reinvested in certain short-term instruments either directly on behalf of a fund or through one or more joint accounts or money market funds, including those managed by BlackRock Fund Advisors (“BFA”), the Funds’ investment adviser, or its affiliates. As of August 31, 2017, any securities on loan were collateralized by cash and/or U.S. government obligations. Cash collateral received was invested in money market funds managed by BFA and is disclosed in the consolidated schedules of investments. 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 are also disclosed in its consolidated schedule of investments. The total value of any securities on loan as of August 31, 2017 and the total value of the related cash collateral are disclosed in the consolidated statements of assets and liabilities. Income earned by the Funds from securities lending is disclosed in the consolidated statements of operations.


94		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

investment purchased with cash collateral falls below the 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.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Core MSCI Emerging Markets
Barclays Capital Inc.	$	13,658,035	$	13,658,035	$	—
BNP Paribas New York Branch		57,624,136		57,624,136		—
BNP Paribas Prime Brokerage International Ltd.		20,608,800		20,608,800		—
Citigroup Global Markets Inc.		345,718,280		345,718,280		—
Citigroup Global Markets Ltd.		45,216,637		45,216,637		—
Credit Suisse Securities (Europe) Ltd.		113,049,722		113,049,722		—
Credit Suisse Securities (USA) LLC		92,345,592		92,345,592		—
Deutsche Bank AG		11,659,584		11,659,584		—
Deutsche Bank Securities Inc.		58,147,683		58,147,683		—
Goldman Sachs & Co.		488,892,295		488,892,295		—
Goldman Sachs International		26,774,801		26,774,801		—
HSBC Bank PLC		187,835,488		187,835,488		—
Jefferies LLC		3,786,179		3,786,179		—
JPMorgan Securities LLC		112,207,858		112,207,858		—
JPMorgan Securities PLC		34,797,622		34,797,622		—
Macquarie Bank Limited		6,743,033		6,743,033		—
Merrill Lynch, Pierce, Fenner & Smith		85,304,592		85,304,592		—
Morgan Stanley & Co. International PLC		191,591,460		191,591,460		—
Morgan Stanley & Co. LLC		217,979,128		217,979,128		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		28,944,502		28,944,502		—
National Financial Services LLC		29,074,395		29,074,395		—
SG Americas Securities LLC		323,929		323,929		—
State Street Bank & Trust Company		20,927,638		20,927,638		—
UBS AG		26,595,143		26,595,143		—
UBS Ltd.		19,161,278		19,161,278		—
UBS Securities LLC		14,954,754		14,954,754		—
Wells Fargo Securities LLC		180,203,519		180,203,519		—

	$	2,434,126,083	$	2,434,126,083	$	—


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			95

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
MSCI BRIC
Citigroup Global Markets Inc.	$	17,922,187	$	17,922,187	$	—
Credit Suisse Securities (USA) LLC		207,496		207,496		—
Deutsche Bank Securities Inc.		671,574		671,574		—
Goldman Sachs & Co.		466,067		466,067		—
JPMorgan Securities LLC		3,096,008		3,096,008		—
Merrill Lynch, Pierce, Fenner & Smith		890,475		890,475		—
Morgan Stanley & Co. LLC		1,281,679		1,281,679		—
Scotia Capital (USA) Inc.		188,334		188,334		—
State Street Bank & Trust Company		162,700		162,700		—

	$	24,886,520	$	24,886,520	$	—

MSCI Emerging Markets Asia
Barclays Capital Inc.	$	108,092	$	108,092	$	—
Citigroup Global Markets Inc.		223,986		223,986		—
Credit Suisse Securities (USA) LLC		563,589		563,589		—
Deutsche Bank AG		216,360		216,360		—
Deutsche Bank Securities Inc.		251,239		251,239		—
HSBC Bank PLC		684,019		684,019		—
JPMorgan Securities LLC		26,122		26,122		—
JPMorgan Securities PLC		264,877		264,877		—
Merrill Lynch, Pierce, Fenner & Smith		876,318		876,318		—
Morgan Stanley & Co. International PLC		393,158		393,158		—
Morgan Stanley & Co. LLC		5,479,276		5,479,276		—
UBS AG		109,199		109,199		—

	$	9,196,235	$	9,196,235	$	—

MSCI Emerging Markets Small-Cap
Barclays Capital Inc.	$	1,201,630	$	1,201,630	$	—
Citigroup Global Markets Inc.		465,919		465,919		—
Credit Suisse Securities (USA) LLC		3,130,574		3,130,574		—
Deutsche Bank AG		407,490		407,490		—
Deutsche Bank Securities Inc.		2,717,866		2,717,866		—
Goldman Sachs & Co.		3,858,902		3,858,902		—
HSBC Bank PLC		1,014,430		1,014,430		—
JPMorgan Securities LLC		1,375,716		1,375,716		—
Macquarie Bank Limited		4,893		4,893		—
Merrill Lynch, Pierce, Fenner & Smith		2,076,716		2,076,716		—
Morgan Stanley & Co. International PLC		198,020		198,020		—
Morgan Stanley & Co. LLC		2,661,953		2,661,953		—
SG Americas Securities LLC		199,779		199,779		—
UBS AG		1,849,511		1,849,511		—
UBS Securities LLC		897,701		897,701		—

	$	22,061,100	$	22,061,100	$	—

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.


96		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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

Each Subsidiary has entered into a separate contract with BFA under which BFA provides investment advisory services to the Subsidiary but does not receive separate compensation from the Subsidiary for providing it with such services. Each Subsidiary has also entered into separate arrangements that provide for the provision of other services to the Subsidiary (including administrative, custody, transfer agency and other services), and BFA pays the costs and expenses related to the provision of those services.

For its investment advisory services to the iShares Core MSCI Emerging Markets ETF, BFA is entitled to an annual investment advisory fee of 0.14%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. Prior to October 5, 2016, for its investment advisory services to the Fund, BFA was entitled to an annual investment advisory fee of 0.16% based on the average daily net assets of the Fund. In addition, the 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 acquired fund fees and expenses are a fund’s total annual operating expenses. BFA has contractually agreed to waive a portion of its investment advisory fee through December 31, 2017 in order to limit the total annual operating expenses of the Fund to 0.14% of average daily net assets.

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:


Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.75	%	First $14 billion
	0.68		Over $14 billion, up to and including $28 billion
	0.61		Over $28 billion, up to and including $42 billion
	0.54		Over $42 billion, up to and including $56 billion
	0.47		Over $56 billion, up to and including $70 billion
	0.41		Over $70 billion, up to and including $84 billion
	0.35		Over $84 billion

For its investment advisory services to the iShares MSCI Emerging Markets Asia ETF, BFA is entitled to an annual investment advisory fee of 0.49%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			97

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Core MSCI Emerging Markets	$	8,283,092
MSCI BRIC		30,487
MSCI Emerging Markets Asia		26,961
MSCI Emerging Markets Small-Cap		215,380

For the year ended August 31, 2017, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares Core MSCI Emerging Markets ETF in the amount of $311,391, related to the foreign tax on the securities lending income. Such reimbursement is included in “Securities lending income – affiliated – net” in the Fund’s statement of operations.

For the year ended August 31, 2017, 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	$	66,035,821	$	28,710,903
MSCI BRIC		1,306,546		451,472
MSCI Emerging Markets Asia		1,151,300		766,670
MSCI Emerging Markets Small-Cap		1,876,509		5,916,804

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

Certain Funds, in order to improve their portfolio liquidity and their ability to track their respective underlying index, may invest in shares of other iShares funds that invest in securities in each Fund’s respective underlying index.

Certain directors and officers of the Company are also officers of BTC and/or BFA.


98		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
Core MSCI Emerging Markets	$	12,047,923,988	$	1,088,509,494
MSCI BRIC		62,012,058		49,861,089
MSCI Emerging Markets Asia		255,781,602		42,303,700
MSCI Emerging Markets Small-Cap		119,220,067		34,479,499

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Core MSCI Emerging Markets	$	4,553,990,138	$	—
MSCI BRIC		80,923,708		64,535,588
MSCI Emerging Markets Asia		22,117,338		21,338,257
MSCI Emerging Markets Small-Cap		18,883,151		—

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*FUTURES CONTRACTS*


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			99

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

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.

The following table shows the value of futures contracts held by the iShares Core MSCI Emerging Markets ETF as of August 31, 2017 and the related locations in the consolidated statements of assets and liabilities, presented by risk exposure category:


Assets
Equity contracts:
Variation margin/Net assets consist of – net unrealized appreciation^a	$	6,970,178

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

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares Core MSCI Emerging Markets ETF during the year ended August 31, 2017 and the related locations in the consolidated statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	27,548,406	$	1,991,138

The following table shows the average quarter-end balances of open futures contracts for the iShares Core MSCI Emerging Markets ETF for the year ended August 31, 2017:


Average value of contracts purchased		$	76,800,863

6.	*PRINCIPAL RISKS*


100		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

MARKET RISK

CREDIT RISK


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			101

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose 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.

7.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, the expiration of capital loss carryforwards, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
Core MSCI Emerging Markets	$	—	$	23,676,275	$	(23,676,275	)
MSCI BRIC		10,313,587		61,175		(10,374,762	)
MSCI Emerging Markets Asia		3,266,216		350,178		(3,616,394	)
MSCI Emerging Markets Small-Cap		—		859,625		(859,625	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
Core MSCI Emerging Markets
Ordinary income	$	472,049,457	$	238,601,549


MSCI BRIC
Ordinary income	$	2,786,991	$	4,397,149


MSCI Emerging Markets Asia
Ordinary income	$	3,388,608	$	2,586,361


MSCI Emerging Markets Small-Cap
Ordinary income	$	3,832,107	$	2,370,926


102		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2017, 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	$	431,491,086	$	(385,850,660	)	$	5,078,360,035	$	5,124,000,461
MSCI BRIC		2,719,048		(226,821,397	)		35,881,154		(188,221,195	)
MSCI Emerging Markets Asia		5,266,973		(27,359,939	)		73,153,215		51,060,249
MSCI Emerging Markets Small-Cap		3,711,256		(11,844,208	)		22,042,077		13,909,125

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

As of August 31, 2017, 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 2018		Expiring 2019		Total
Core MSCI Emerging Markets	$	385,850,660	$	—	$	—	$	385,850,660
MSCI BRIC		207,792,753		11,268,086		7,760,558		226,821,397
MSCI Emerging Markets Asia		27,359,939		—		—		27,359,939
MSCI Emerging Markets Small-Cap		11,844,208		—		—		11,844,208

Must be utilized prior to losses subject to expiration.

8.	*LINE OF CREDIT*

The Funds, along with certain other iShares funds, are parties to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS			103

Notes to Consolidated Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2017, the maximum amounts borrowed, the average borrowings and the weighted average interest rates, if any, under the credit agreement were as follows:


iShares ETF	Maximum Amount Borrowed		Average Borrowings		Weighted Average Interest Rates
Core MSCI Emerging Markets	$	120,000,000	$	4,424,658		0.13	%
MSCI BRIC		1,375,000		86,692		1.65
MSCI Emerging Markets Asia		1,550,000		86,371		1.69
MSCI Emerging Markets Small-Cap		4,600,000		174,745		1.86

9.	*LEGAL PROCEEDINGS*

10.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the consolidated financial statements were available to be issued and has determined that there were no subsequent events requiring adjustment or disclosure in the consolidated financial statements.


104		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares Core MSCI Emerging Markets ETF, iShares MSCI BRIC ETF,

iShares MSCI Emerging Markets Asia ETF and iShares MSCI Emerging Markets Small-Cap ETF

In our opinion, the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, and the related consolidated statements of operations and of changes in net assets and the consolidated financial highlights present fairly, in all material respects, the financial position of iShares Core MSCI Emerging Markets ETF, iShares MSCI BRIC ETF, iShares MSCI Emerging Markets Asia ETF and iShares MSCI Emerging Markets Small-Cap ETF and their subsidiaries (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These consolidated financial statements and consolidated financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			105

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
Core MSCI Emerging Markets	$	433,226,218
MSCI BRIC		3,555,505
MSCI Emerging Markets Asia		4,698,157
MSCI Emerging Markets Small-Cap		1,987,697

For the fiscal year ended August 31, 2017, 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	$	783,370,543	$	84,738,990
MSCI BRIC		5,877,102		463,410
MSCI Emerging Markets Asia		8,939,408		1,045,148
MSCI Emerging Markets Small-Cap		5,258,379		527,968


106		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares Core MSCI Emerging Markets ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			107

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


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Contract (Continued)

iSHARES^®, INC.

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

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

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to


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Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI BRIC ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


110		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


112		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Emerging Markets Asia ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			113

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of 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.

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 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


114		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			115

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

IV. iShares MSCI Emerging Markets Small-Cap ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their


116		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board further noted that the Fund invests primarily in securities of small-cap companies in emerging markets, as compared to most of the funds in the Peer Group, which do not invest primarily in the securities of small-cap companies in emerging markets.

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


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Contract (Continued)

iSHARES^®, INC.

appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


118		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			119

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Yea
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income		Net Realized Capital Gains			Return of Capital			Total Per Share
Core MSCI Emerging Markets	$	0.946487	$	—	$	—	$	0.946487		100		—	%		—	%		100	%
MSCI BRIC		0.535903		—		0.007314		0.543217		99		—			1			100
MSCI Emerging Markets Asia		0.920183		—		—		0.920183		100		—			—			100
MSCI Emerging Markets Small-Cap		0.885048		—		—		0.885048		100		—			—			100

Premium/Discount Information


120		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

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.

iShares MSCI Core Emerging Markets ETF

Period Covered: October 18, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		2		0.17	%
Greater than 2.0% and Less than 2.5%		8		0.68
Greater than 1.5% and Less than 2.0%		25		2.12
Greater than 1.0% and Less than 1.5%		74		6.26
Greater than 0.5% and Less than 1.0%		275		23.27
Greater than 0.0% and Less than 0.5%		415		35.10
At NAV		11		0.93
Less than 0.0% and Greater than –0.5%		232		19.63
Less than –0.5% and Greater than –1.0%		94		7.95
Less than –1.0% and Greater than –1.5%		29		2.45
Less than –1.5% and Greater than –2.0%		12		1.02
Less than –2.0% and Greater than –2.5%		5		0.42

		1,182		100.00	%


SUPPLEMENTAL INFORMATION			121

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI BRIC ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5%		1		0.07	%
Greater than 2.0% and Less than 2.5%		1		0.07
Greater than 1.5% and Less than 2.0%		9		0.65
Greater than 1.0% and Less than 1.5%		30		2.17
Greater than 0.5% and Less than 1.0%		122		8.82
Greater than 0.0% and Less than 0.5%		356		25.74
At NAV		12		0.87
Less than 0.0% and Greater than –0.5%		442		31.97
Less than –0.5% and Greater than –1.0%		268		19.38
Less than –1.0% and Greater than –1.5%		94		6.80
Less than –1.5% and Greater than –2.0%		32		2.31
Less than –2.0% and Greater than –2.5%		9		0.65
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%		1		0.07

		1,383		100.00	%

iShares MSCI Emerging Markets Asia ETF

Period Covered: February 8, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		2		0.15
Greater than 2.0% and Less than 2.5%		6		0.44
Greater than 1.5% and Less than 2.0%		35		2.58
Greater than 1.0% and Less than 1.5%		103		7.58
Greater than 0.5% and Less than 1.0%		252		18.56
Greater than 0.0% and Less than 0.5%		388		28.58
At NAV		15		1.10
Less than 0.0% and Greater than –0.5%		272		20.03
Less than –0.5% and Greater than –1.0%		181		13.33
Less than –1.0% and Greater than –1.5%		59		4.34
Less than –1.5% and Greater than –2.0%		24		1.77
Less than –2.0% and Greater than –2.5%		11		0.81
Less than –2.5% and Greater than –3.0%		6		0.44
Less than –3.0% and Greater than –3.5%		3		0.22

		1,358		100.00	%


122		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Emerging Markets Small-Cap ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 5.5%		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%		2		0.14
Greater than 3.5% and Less than 4.0%		2		0.14
Greater than 3.0% and Less than 3.5%		3		0.22
Greater than 2.5% and Less than 3.0%		6		0.43
Greater than 2.0% and Less than 2.5%		21		1.52
Greater than 1.5% and Less than 2.0%		51		3.69
Greater than 1.0% and Less than 1.5%		136		9.83
Greater than 0.5% and Less than 1.0%		320		23.15
Greater than 0.0% and Less than 0.5%		389		28.14
At NAV		8		0.58
Less than 0.0% and Greater than –0.5%		235		16.99
Less than –0.5% and Greater than –1.0%		130		9.40
Less than –1.0% and Greater than –1.5%		45		3.25
Less than –1.5% and Greater than –2.0%		22		1.59
Less than –2.0% and Greater than –2.5%		7		0.51
Less than –2.5% and Greater than –3.0%		2		0.14
Less than –3.0%		1		0.07

		1,383		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

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

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.


SUPPLEMENTAL INFORMATION			123

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only the portion of remuneration for those individuals’ services attributable to each Fund is included in the aggregate figures disclosed.

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 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, 2016 was USD 1.91 million. This figure is comprised of fixed remuneration of USD 749.98 thousand and variable remuneration of USD 1.16 million. There were a total of 325 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, 2016, to its senior management was USD 263.67 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 63.52 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, 2016 was USD 16.16 thousand. This figure is comprised of fixed remuneration of USD 6.36 thousand and variable remuneration of USD 9.80 thousand. There were a total of 325 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 the BFA’s financial year ending December 31, 2016, to its senior management was USD 2.24 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 0.54 thousand.


124		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. 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.


DIRECTOR AND OFFICER INFORMATION			125

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


126		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


DIRECTOR AND OFFICER INFORMATION			127

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


128		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes:


NOTES			129

Notes:


130		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-810-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Currency Hedged MSCI Emerging Markets ETF | HEEM | BATS

^Ø

iShares Edge MSCI Min Vol EM Currency Hedged ETF | HEMV | BATS

^Ø

iShares Edge MSCI Min Vol Emerging Markets ETF | EEMV | BATS

^Ø

iShares MSCI Emerging Markets ETF | EEM | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			14
Shareholder Expenses			14
Schedules of Investments			15
iShares Currency Hedged MSCI Emerging Markets ETF			15
iShares Edge MSCI Min Vol EM Currency Hedged ETF			18
iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)			21
iShares MSCI Emerging Markets ETF (Consolidated)			27
Financial Statements			44
Financial Highlights			50
Notes to Financial Statements			54
Report of Independent Registered Public Accounting Firm			71
Tax Information			72
Board Review and Approval of Investment Advisory Contract			73
Supplemental Information			86
Director and Officer Information			91

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		19.55%		19.54%		19.47%		19.55%		19.54%		19.47%
Since Inception		5.18%		5.19%		5.56%		16.02%		16.04%		17.22%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 9/23/14. The first day of secondary market trading was 9/25/14.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a,b		Annualized Expense Ratio^a
$	1,000.00	$	1,160.20	$	0.00	$	1,000.00	$	1,025.20	$	0.00		0.00%

Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

The iShares Currency Hedged MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI Emerging Markets 100% Hedged to USD Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. The Fund currently seeks to achieve its investment objective by investing a substantial portion of its assets in one underlying fund, the iShares MSCI Emerging Markets ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 19.55%, net of fees, while the total return for the Index was 19.47%.


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

South Korea and Taiwan were also meaningful contributors to the Index’s return in U.S. dollar terms for the reporting period, as stocks in both countries gained due to strong growth in technology-related companies. Taiwan’s technology-heavy stock market rose to its highest level in 27 years, led by smartphone component suppliers. South Korea’s equity market reached an all-time high during the reporting period, despite tepid economic growth.

In contrast, stocks in Qatar and the Philippines detracted from the Index’s return in U.S. dollar terms for the reporting period. The stock market in Qatar declined amid the country’s growing diplomatic crisis with Saudi Arabia and other neighboring countries, while slowing economic growth and political controversies surrounding the Philippine president negatively affected the Philippine equity market.

From a sector perspective, the information technology sector contributed the most to the Index’s return in U.S. dollar terms for the reporting period, benefiting from growing demand for a range of technological devices. Sector gains were driven primarily by several large technology companies with diversified businesses and strong profit growth. The financials sector also contributed meaningfully to the Index’s return for the reporting period, led by banks and the insurance industry. Other notable contributors included the economically sensitive materials and consumer discretionary sectors.

In terms of currency performance, the Chinese yuan and the Taiwanese new dollar appreciated by 1% and 5%, respectively, against the U.S. dollar, while the South Korean won depreciated by approximately 1% for the reporting period.

Overall, the positive performance of emerging market currencies meant hedging activity was a meaningful detractor from the Index’s return for the reporting period. 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 positive impact of foreign currencies relative to the U.S. dollar, resulting in an Index return that was relatively close to the return of emerging market equities measured in local currencies.

ALLOCATION BY SECTOR¹

As of 8/31/17


Sector		Percentage of Total Investments²


Information Technology	26.97	%
Financials	23.93
Consumer Discretionary	10.23
Materials	7.44
Energy	6.62
Consumer Staples	6.55
Industrials	5.45
Telecommunication Services	5.22
Real Estate	2.78
Utilities	2.59
Health Care	2.22

TOTAL	100.00	%

TEN LARGEST COUNTRIES¹

As of 8/31/17


Country		Percentage of Total Investments²


China	29.06	%
South Korea	14.59
Taiwan	11.87
India	8.72
Brazil	7.22
South Africa	6.79
Mexico	3.57
Russia	3.26
Indonesia	2.27
Malaysia	2.24

TOTAL	89.59	%

Table shown is for the iShares MSCI Emerging Markets ETF, the underlying fund in which the Fund invests.

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		8.61%		8.77%		8.87%		8.61%		8.77%		8.87%
Since Inception		6.52%		6.99%		6.26%		12.36%		13.27%		11.82%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/29/15. The first day of secondary market trading was 11/2/15.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a,b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a,b		Annualized Expense Ratio^a
$	1,000.00	$	1,110.30	$	0.16	$	1,000.00	$	1,025.10	$	0.15		0.03%

Annualized expense ratio and expenses paid during the period do not include fees and expenses of the underlying fund in which the Fund invests.

The iShares Edge MSCI Min Vol EM Currency Hedged ETF (the “Fund”) seeks to track the investment results of an index composed of emerging market equities that, in the aggregate, have lower volatility characteristics relative to the broader emerging equity markets while mitigating exposure to fluctuations between the value of the component currencies and the U.S. dollar, as represented by the MSCI Emerging Markets Minimum Volatility (USD) 100% Hedged to USD Index (the “Index”). 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 Edge MSCI Min Vol Emerging Markets ETF. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 8.61%, net of fees, while the total return for the Index was 8.87%.

Low-volatility stocks in China and Taiwan, which represented about 22% and 17%, respectively, of the Index on average for the reporting period, contributed the most to the Index’s return in U.S. dollar terms. As a major global exporter, China capitalized on strengthening economic growth in many regions of the world. Chinese stocks also benefited from government stimulus efforts focused primarily on infrastructure and real estate expansion, which drove property prices higher and supported a surge in industrial output.


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

The Taiwanese stock market was helped by robust growth in technology-related companies during the reporting period. Taiwan’s technology-heavy equity market rose to its highest level in 27 years, led by component suppliers that benefited from robust smartphone production. Other noteworthy contributors to the Index’s return in U.S. dollar terms for the reporting period included Chile, Thailand, and South Korea.

In contrast, low-volatility stocks in the Philippines and Qatar detracted from the Index’s return in U.S. dollar terms for the reporting period. Slowing economic growth and political controversies involving the newly elected Philippine president negatively affected the Philippine equity market, while the stock market in Qatar declined amid the country’s growing diplomatic crisis with Saudi Arabia and other neighboring countries in the Middle East.

From a sector perspective, the information technology sector contributed the most to the Index’s return in U.S. dollar terms for the reporting period, benefiting from growing demand for a range of technological devices. The financials sector also contributed meaningfully to the Index’s return for the reporting period, led by a strong performance from the banking industry. Other notable contributors included the consumer discretionary and industrials sectors.

The Index seeks lower volatility than the broader market with returns in line with the market over the long term. For the reporting period, the Index trailed the broader market in U.S. dollar terms, as represented by the MSCI Emerging Markets Index. As the broader market rose sharply, stocks with relatively low volatility characteristics underperformed.

Relative to the broader market, overweight allocations in the Index to underperforming markets in the Philippines and Qatar detracted from the Index’s performance for the reporting period in U.S. dollar terms, while underweight allocations in the Index to Russian and South African stocks benefited relative performance. On a sector basis, overweight allocations in the Index to the telecommunication services and consumer staples sectors detracted from the Index’s relative performance as these sectors underperformed for the reporting period. On the positive side, an underweight allocation in the Index to the energy sector benefited relative performance.

Overall, hedging activity was a meaningful detractor from the Index’s return for the reporting period. As the Index’s hedging activity offset the positive impact of foreign currencies relative to the U.S. dollar, it resulted in an Index return that was relatively close to the return of low volatility emerging market equities measured in local currencies.

ALLOCATION BY SECTOR¹

As of 8/31/17


Sector		Percentage of Total Investments²


Financials	21.85	%
Information Technology	20.81
Consumer Staples	11.73
Telecommunication Services	9.93
Consumer Discretionary	8.38
Utilities	7.73
Health Care	7.56
Industrials	6.64
Energy	2.20
Materials	2.03
Real Estate	1.14

TOTAL	100.00	%

TEN LARGEST COUNTRIES¹

As of 8/31/17


Country		Percentage of Total Investments²


China	23.56	%
Taiwan	16.35
South Korea	10.48
Malaysia	6.97
Thailand	6.73
India	6.13
Indonesia	4.96
Chile	3.88
Philippines	3.40
Mexico	2.59

TOTAL	85.05	%

Table shown is for the iShares Edge MSCI Min Vol Emerging Markets ETF, the underlying fund in which the Fund invests.

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		11.11%		11.49%		11.45%		11.11%		11.49%		11.45%
5 Years		3.35%		3.28%		3.53%		17.92%		17.52%		18.96%
Since Inception		5.35%		5.35%		5.58%		35.80%		35.83%		37.53%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 10/18/11. The first day of secondary market trading was 10/20/11.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,123.60	$	1.34	$	1,000.00	$	1,023.90	$	1.28		0.25%

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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 11.11%, net of fees, while the total return for the Index was 11.45%.


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

economic growth in many regions of the world. Chinese stocks also benefited from government stimulus efforts focused primarily on infrastructure and real estate expansion, which drove property prices higher and supported a surge in industrial output.

The Taiwanese stock market was helped by robust growth in technology-related companies during the reporting period. Taiwan’s technology-heavy equity market rose to its highest level in 27 years, led by component suppliers that benefited from robust smartphone production. Other noteworthy contributors to the Index’s return for the reporting period included Chile, Thailand, and South Korea.

In contrast, low-volatility stocks in the Philippines and Qatar detracted from the Index’s return for the reporting period. Slowing economic growth and political controversies involving the newly elected Philippine president negatively affected the Philippine equity market, while the stock market in Qatar declined amid the country’s growing diplomatic crisis with Saudi Arabia and other neighboring countries in the Middle East.

From a sector perspective, the information technology sector contributed the most to the Index’s return for the reporting period, benefiting from growing demand for a range of technological devices. The financials sector also contributed meaningfully to the Index’s return for the reporting period, led by a strong performance from the banking industry. Other notable contributors included the consumer discretionary and industrials sectors.

The Index seeks lower volatility than the broader market with returns in line with the market over the long term, so they have tended to outperform during periods of elevated volatility but tend to underperform during periods of low volatility and risk-on markets. For the reporting period, the Index trailed the broader market, as represented by the MSCI Emerging Markets Index. As the broader market rose sharply, stocks with relatively low volatility characteristics underperformed.

Relative to the broader market, overweight allocations in the Index to underperforming markets in the Philippines and Qatar detracted from the Index’s performance for the reporting period, while underweight allocations in the Index to Russian and South African stocks benefited relative performance. On a sector basis, overweight allocations in the Index to the telecommunication services and consumer staples sectors detracted from the Index’s relative performance as these sectors underperformed for the reporting period. On the positive side, an underweight allocation in the Index to the energy sector benefited relative performance.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	21.85	%
Information Technology	20.81
Consumer Staples	11.73
Telecommunication Services	9.93
Consumer Discretionary	8.38
Utilities	7.73
Health Care	7.56
Industrials	6.64
Energy	2.20
Materials	2.03
Real Estate	1.14

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


China	23.56	%
Taiwan	16.35
South Korea	10.48
Malaysia	6.97
Thailand	6.73
India	6.13
Indonesia	4.96
Chile	3.88
Philippines	3.40
Mexico	2.59

TOTAL	85.05	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.80%		24.59%		24.53%		23.80%		24.59%		24.53%
5 Years		4.69%		4.68%		5.30%		25.74%		25.69%		29.43%
10 Years		1.99%		2.03%		2.43%		21.78%		22.32%		27.08%

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

LOGO


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,176.60	$	3.79	$	1,000.00	$	1,021.70	$	3.52		0.69%

The iShares MSCI Emerging Markets ETF (the “Fund”) seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities, as represented by the MSCI Emerging Markets Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 23.80%, net of fees, while the total return for the Index was 24.53%.


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

South Korea and Taiwan were also meaningful contributors to the Index’s return for the reporting period, as stocks in both countries gained due to strong growth in technology-related companies. Taiwan’s technology-heavy equity market rose to its highest level in 27 years, led by component suppliers that benefited from robust smartphone production. South Korea’s stock market reached an all-time high during the reporting period, despite tepid economic growth.

In contrast, stocks in the Philippines and Qatar detracted from the Index’s return for the reporting period. Slowing economic growth and political controversies involving the newly elected Philippine president negatively affected the Philippine equity market, while the stock market in Qatar declined amid the country’s growing diplomatic crisis with Saudi Arabia and other neighboring countries in the Middle East.

From a sector perspective, the information technology sector contributed the most to the Index’s return for the reporting period, benefiting from growing demand for a range of technological devices. Sector gains were driven primarily by several large technology companies with diversified businesses and strong profit growth. The financials sector also contributed meaningfully to the Index’s return for the reporting period, led by strong performance from banks and the insurance industry. Other notable contributors included the economically sensitive materials and consumer discretionary sectors.

Currency fluctuations had a positive impact on the Index’s return, particularly gains by the Taiwanese new dollar, Indian rupee, and Brazilian real relative to the U.S. dollar.

ALLOCATION BY SECTOR

As of 8/31/17


Sector	Percentage of Total Investments*
Information Technology		26.97	%
Financials		23.93
Consumer Discretionary		10.23
Materials		7.44
Energy		6.62
Consumer Staples		6.55
Industrials		5.45
Telecommunication Services		5.22
Real Estate		2.78
Utilities		2.59
Health Care		2.22

TOTAL		100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country	Percentage of Total Investments*
China		29.06	%
South Korea		14.59
Taiwan		11.87
India		8.72
Brazil		7.22
South Africa		6.79
Mexico		3.57
Russia		3.26
Indonesia		2.27
Malaysia		2.24

TOTAL		89.59	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

About Fund Performance

Shareholder Expenses


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
INVESTMENT COMPANIES — 100.14%

EXCHANGE-TRADED FUNDS — 100.14%
iShares MSCI Emerging Markets ETF^a		8,795,358	$	394,295,899

				394,295,899

TOTAL INVESTMENT COMPANIES
(Cost: $343,142,968)				394,295,899

TOTAL INVESTMENTS IN SECURITIES — 100.14%
(Cost: $343,142,968)^b				394,295,899
Other Assets, Less Liabilities — (0.14)%				(538,525	)

NET ASSETS — 100.00%			$	393,757,374

^a	Affiliated issuer. See Schedule 1.

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $348,640,976. Net unrealized appreciation was $45,636,711, of which $52,196,052 represented gross unrealized appreciation on investments and $6,559,341 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		—		—		—			—	$	—	$	14,970	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		119,104		—		(119,104	)^b		—		—		6		—		2,789
iShares MSCI Emerging Markets ETF		4,928,896		5,803,170		(1,936,708	)		8,795,358		394,295,899		1,778,662		65,227,894		3,628,622

										$	394,295,899	$	1,793,638	$	65,227,894	$	3,631,411

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

August 31, 2017

Schedule 2 — Forward Currency Contracts (Note 6)

Forward currency contracts outstanding as of August 31, 2017 were as follows:


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	BRL	84,297,000		USD	26,579,537	MS		09/06/2017	$	196,170
	CLP	4,138,887,000		USD	6,595,836	MS		09/06/2017		23,826
	EUR	7,170,000		USD	8,533,806	MS		09/06/2017		2,145
	INR	2,252,428,000		USD	35,188,689	MS		09/06/2017		41,082
	MXN	253,738,000		USD	14,182,888	MS		09/06/2017		6,592
	RUB	590,037,000		USD	10,057,533	MS		09/06/2017		112,748
	TRY	16,387,000		USD	4,728,250	MS		09/06/2017		9,882
	TWD	412,000		USD	13,623	MS		09/06/2017		34
	USD	1,193,803		BRL	3,756,000	MS		09/06/2017		765
	USD	117,355		EUR	98,000	MS		09/06/2017		685
	USD	80,651,213		HKD	629,314,000	MS		09/06/2017		233,131
	USD	225,274		INR	14,384,000	MS		09/06/2017		297
	USD	72,963,308		KRW	81,984,438,000	MS		09/06/2017		225,876
	USD	13,467,324		MXN	240,542,000	MS		09/06/2017		15,788
	USD	62,538		TRY	216,000	MS		09/06/2017		84
	USD	828,052		TWD	24,923,000	MS		09/06/2017		1,884
	ZAR	341,608,000		USD	26,085,609	MS		09/06/2017		169,890
	BRL	1,091,000		USD	344,740	MS		10/05/2017		229
	CLP	32,270,000		USD	51,508	MS		10/05/2017		64
	INR	48,547,000		USD	756,726	MS		10/05/2017		283
	USD	2,153,726		BRL	6,809,000	MS		10/05/2017		751
	USD	9,548		MXN	171,000	MS		10/05/2017		30
	USD	132,076		TRY	460,000	MS		10/05/2017		144
	USD	508,718		TWD	15,294,000	MS		10/05/2017		104
	USD	706,170		ZAR	9,224,000	MS		10/05/2017		572
	KRW	893,867,000		USD	795,076	MS		10/10/2017		65

										1,043,121

	HKD	629,314,000		USD	80,423,075	MS		09/06/2017		(4,993	)
	KRW	81,984,438,000		USD	72,848,366	MS		09/06/2017		(110,933	)
	TWD	1,907,738,000		USD	63,274,892	MS		09/06/2017		(35,657	)
	USD	25,367,428		BRL	80,541,000	MS		09/06/2017		(215,240	)
	USD	6,373,241		CLP	4,138,887,000	MS		09/06/2017		(246,422	)
	USD	8,302,613		EUR	7,072,000	MS		09/06/2017		(116,668	)
	USD	34,740,430		INR	2,238,044,000	MS		09/06/2017		(264,364	)
	USD	735,715		MXN	13,196,000	MS		09/06/2017		(2,229	)
	USD	9,833,896		RUB	590,037,000	MS		09/06/2017		(336,385	)
	USD	4,522,695		TRY	16,171,000	MS		09/06/2017		(152,984	)
	USD	62,325,490		TWD	1,883,227,000	MS		09/06/2017		(101,235	)
	USD	26,005,435		ZAR	341,608,000	MS		09/06/2017		(250,063	)
	MXN	1,738,000		USD	97,247	MS		10/05/2017		(510	)
	TRY	79,000		USD	22,671	MS		10/05/2017		(14	)
	USD	26,458,569		BRL	84,297,000	MS		10/05/2017		(195,766	)
	USD	6,641,219		CLP	4,171,277,000	MS		10/05/2017		(25,091	)
	USD	8,911,603		EUR	7,476,000	MS		10/05/2017		(2,710	)
	USD	35,333,750		INR	2,268,069,000	MS		10/05/2017		(32,990	)
	USD	14,116,106		MXN	253,738,000	MS		10/05/2017		(6,930	)
	USD	10,363,102		RUB	610,949,000	MS		10/05/2017		(111,070	)
	USD	4,675,142		TRY	16,343,000	MS		10/05/2017		(12,182	)
	USD	63,333,710		TWD	1,907,738,000	MS		10/05/2017		(109,523	)
	USD	25,962,221		ZAR	341,608,000	MS		10/05/2017		(169,402	)
	ZAR	3,747,000		USD	286,851	MS		10/05/2017		(220	)
	USD	84,560,689		HKD	661,090,000	MS		10/10/2017		(1,957	)


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® CURRENCY HEDGED MSCI EMERGING MARKETS ETF

August 31, 2017


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	USD	71,944,858		KRW	80,970,305,000	MS		10/10/2017	$	(82,444	)

										(2,587,982	)

					Net unrealized depreciation				$	(1,544,861	)

Counterparties:

MS — Morgan Stanley and Co. International PLC

Currency abbreviations:

BRL — Brazilian Real

CLP — Chilean Peso

EUR — Euro

HKD — Hong Kong Dollar

INR — Indian Rupee

KRW — South Korean Won

MXN — Mexican Peso

RUB — New Russian Ruble

TRY — Turkish Lira

TWD — Taiwan New Dollar

USD — United States Dollar

ZAR — South African Rand

Schedule 3 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Investment companies	$	394,295,899	$	—		$	—	$	394,295,899

Total	$	394,295,899	$	—		$	—	$	394,295,899

Derivative financial instruments^a:
Assets:
Forward currency contracts	$	—	$	1,043,121		$	—	$	1,043,121
Liabilities:
Forward currency contracts		—		(2,587,982	)		—		(2,587,982	)

Total	$	—	$	(1,544,861	)	$	—	$	(1,544,861	)

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

See notes to financial statements.


SCHEDULES OF INVESTMENTS			17

Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

August 31, 2017


Security	Shares		Value
INVESTMENT COMPANIES — 99.99%

EXCHANGE-TRADED FUNDS — 99.99%
iShares Edge MSCI Min Vol Emerging Markets ETF^a		112,856	$	6,561,448

				6,561,448

TOTAL INVESTMENT COMPANIES
(Cost: $5,755,687)				6,561,448

SHORT-TERM INVESTMENTS — 0.04%

MONEY MARKET FUNDS — 0.04%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^a,b		3,008		3,008

				3,008

TOTAL SHORT-TERM INVESTMENTS
(Cost: $3,008)				3,008


	Value
TOTAL INVESTMENTS IN SECURITIES — 100.03%
(Cost: $5,758,695)^c	$	6,564,456
Other Assets, Less Liabilities — (0.03)%		(2,103	)

NET ASSETS — 100.00%	$	6,562,353

^a	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $5,773,467. Net unrealized appreciation was $788,763, of which $820,297 represented gross unrealized appreciation on investments and $31,534 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Treasury, SL Agency Shares		3,286		—		(278	)^b		3,008	$	3,008	$	—	$	—	$	22
iShares Edge MSCI Min Vol Emerging Markets ETF		115,665		80,735		(83,544	)		112,856		6,561,448		18,322		480,039		185,655

										$	6,564,456	$	18,322	$	480,039	$	185,677

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Forward Currency Contracts (Note 6)

Forward currency contracts outstanding as of August 31, 2017 were as follows:


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	BRL	378,000		USD	119,288	JPM		09/06/2017	$	778
	CLP	186,794,000		USD	297,618	JPM		09/06/2017		1,137
	EUR	4,000		USD	4,725	JPM		09/06/2017		37
	INR	27,174,000		USD	424,547	JPM		09/06/2017		476
	PLN	685,000		USD	191,764	MS		09/06/2017		258
	RUB	1,072,000		USD	18,272	JPM		09/06/2017		206
	RUB	10,000		USD	165	MS		09/06/2017		7


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

August 31, 2017


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	TWD	39,000		USD	1,290	MS		09/06/2017	$	3
	USD	3,814		BRL	12,000	BNP		09/06/2017		2
	USD	24,350		HKD	190,000	BNP		09/06/2017		71
	USD	1,130,261		HKD	8,819,000	SSB		09/06/2017		3,307
	USD	1,261,690		KRW	1,417,243,000	BNP		09/06/2017		4,298
	USD	170,939		MXN	3,051,000	GS		09/06/2017		321
	USD	20,445		RUB	1,082,000	BNP		09/06/2017		1,795
	ZAR	1,689,000		USD	129,237	JPM		09/06/2017		577
	BRL	3,000		USD	948	DB		10/05/2017		1
	CLP	1,431,000		USD	2,286	DB		10/05/2017		1
	EUR	1,000		USD	1,191	BNP		10/05/2017		2
	INR	440,000		USD	6,858	BNP		10/05/2017		3
	RUB	11,000		USD	188	BNP		10/05/2017		—
	USD	1,581		BRL	5,000	JPM		10/05/2017		—
	USD	74,069		EUR	62,000	SSB		10/05/2017		140
	USD	171,451		MXN	3,078,000	BBP		10/05/2017		129
	USD	1,297		TWD	39,000	DB		10/05/2017		—
	USD	1,966,461		TWD	59,102,000	JPM		10/05/2017		981
	USD	3,445		ZAR	45,000	SSB		10/05/2017		3
	KRW	13,903,000		USD	12,366	BNP		10/10/2017		2

										14,535

	EUR	62,000		USD	73,950	SSB		09/06/2017		(139	)
	HKD	8,970,000		USD	1,146,268	BNP		09/06/2017		(20	)
	HKD	39,000		USD	4,998	SCB		09/06/2017		(14	)
	KRW	1,416,847,000		USD	1,260,114	JPM		09/06/2017		(3,073	)
	KRW	396,000		USD	354	MS		09/06/2017		(3	)
	MXN	3,078,000		USD	172,252	BBP		09/06/2017		(125	)
	TWD	59,407,000		USD	1,973,633	JPM		09/06/2017		(4,362	)
	USD	115,156		BRL	366,000	BNP		09/06/2017		(1,099	)
	USD	286,613		CLP	186,241,000	BNP		09/06/2017		(11,257	)
	USD	849		CLP	553,000	MS		09/06/2017		(35	)
	USD	77,461		EUR	66,000	SSB		09/06/2017		(1,112	)
	USD	420,741		INR	27,100,000	BNP		09/06/2017		(3,124	)
	USD	1,150		INR	74,000	MS		09/06/2017		(8	)
	USD	501		MXN	9,000	BNP		09/06/2017		(2	)
	USD	1,003		MXN	18,000	GS		09/06/2017		(4	)
	USD	2,493		PLN	9,000	BNP		09/06/2017		(30	)
	USD	554		PLN	2,000	CITI		09/06/2017		(6	)
	USD	185,543		PLN	674,000	MS		09/06/2017		(3,394	)
	USD	1,968,411		TWD	59,446,000	BNP		09/06/2017		(2,153	)
	USD	127,698		ZAR	1,676,000	BNP		09/06/2017		(1,117	)
	USD	977		ZAR	13,000	SSB		09/06/2017		(22	)
	MXN	24,000		USD	1,343	JPM		10/05/2017		(7	)
	MXN	35,000		USD	1,954	SSB		10/05/2017		(6	)
	TWD	52,000		USD	1,730	BNP		10/05/2017		(1	)
	USD	118,748		BRL	378,000	JPM		10/05/2017		(774	)
	USD	302,118		CLP	189,842,000	JPM		10/05/2017		(1,278	)
	USD	390		INR	25,000	DB		10/05/2017		—
	USD	423,403		INR	27,174,000	JPM		10/05/2017		(330	)
	USD	280		PLN	1,000	DB		10/05/2017		(1	)
	USD	191,798		PLN	685,000	MS		10/05/2017		(256	)
	USD	7,837		PLN	28,000	SSB		10/05/2017		(14	)
	USD	171		RUB	10,000	DB		10/05/2017		—
	USD	17,680		RUB	1,042,000	JPM		10/05/2017		(184	)
	USD	128,630		ZAR	1,689,000	JPM		10/05/2017		(572	)
	ZAR	14,000		USD	1,071	DB		10/05/2017		—
	KRW	5,790,000		USD	5,151	DB		10/10/2017		—


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EM CURRENCY HEDGED ETF

August 31, 2017


Currency purchased			Currency sold			Counterparty	Settlement date		Unrealized appreciation (depreciation)
	USD	1,147,357		HKD	8,970,000	BNP		10/10/2017	$	(32	)
	USD	54,741		HKD	428,000	JPM		10/10/2017		(6	)
	USD	8,570		HKD	67,000	MS		10/10/2017		—
	USD	1,260,215		KRW	1,416,847,000	JPM		10/10/2017		(144	)

										(34,704	)

						Net unrealized depreciation			$	(20,169	)

Counterparties:

BBP — Barclays Bank PLC Wholesale

BNP — BNP Paribas SA

CITI — Citibank N.A. London

DB — Deutsche Bank AG

GS — Goldman Sachs International

JPM — JPMorgan Chase Bank N.A.

MS — Morgan Stanley and Co. International PLC

SCB — Standard Chartered Bank

SSB — State Street Bank London

Currency abbreviations:

BRL — Brazilian Real

CLP — Chilean Peso

EUR — Euro

HKD — Hong Kong Dollar

INR — Indian Rupee

KRW — South Korean Won

MXN — Mexican Peso

PLN — Polish Zloty

RUB — New Russian Ruble

TWD — Taiwan New Dollar

USD — United States Dollar

ZAR — South African Rand

Schedule 3 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Investment companies	$	6,561,448	$	—		$	—	$	6,561,448
Money market funds		3,008		—			—		3,008

Total	$	6,564,456	$	—		$	—	$	6,564,456

Derivative financial instruments^a:
Assets:
Forward currency contracts	$	—	$	14,535		$	—	$	14,535
Liabilities:
Forward currency contracts		—		(34,704	)		—		(34,704	)

Total	$	—	$	(20,169	)	$	—	$	(20,169	)

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

See notes to financial statements.


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.42%

BRAZIL — 1.83%
Ambev SA		3,897,600	$	24,601,165
Cielo SA		1,600,816		11,411,687
CPFL Energia SA		1,116,800		9,615,316
EDP — Energias do Brasil SA		487,200		2,359,780
Equatorial Energia SA		626,400		12,167,862
Raia Drogasil SA		626,400		13,806,302

				73,962,112
CHILE — 3.87%
Aguas Andinas SA Series A		43,170,792		27,572,867
Banco de Chile		414,012,120		60,305,947
Banco de Credito e Inversiones		90,438		5,864,856
Cia. Cervecerias Unidas SA		162,864		2,220,164
Colbun SA		18,059,112		4,350,406
Empresas COPEC SA		307,632		3,927,051
Enel Americas SA		18,459,312		3,982,129
Enel Generacion Chile SA		5,916,696		5,015,502
SACI Falabella		4,259,520		42,824,972

				156,063,894
CHINA — 23.49%
3SBio Inc.^a,b,c		5,568,000		7,655,026
AAC Technologies Holdings Inc.		2,436,000		44,415,693
Agricultural Bank of China Ltd. Class H		27,840,000		13,090,379
Alibaba Group Holding Ltd. ADR^a		195,576		33,588,222
ANTA Sports Products Ltd.		4,176,000		16,434,118
Autohome Inc. ADR^a		48,024		3,086,502
Baidu Inc. ADR^a		70,992		16,189,726
Bank of China Ltd. Class H		62,640,000		32,974,950
Bank of Communications Co. Ltd. Class H		4,856,000		3,710,351
Beijing Capital International Airport Co. Ltd. Class H		6,960,000		11,258,438
Beijing Enterprises Water Group Ltd.^c		2,784,000		2,365,517
China CITIC Bank Corp. Ltd. Class H		7,656,000		5,057,404
China Construction Bank Corp. Class H		38,280,000		33,552,990
China Everbright Bank Co. Ltd. Class H		20,880,000		10,031,215
China Gas Holdings Ltd.		1,392,000		3,514,482


Security	Shares		Value
China Huarong Asset Management Co. Ltd. Class H^b		9,048,000	$	3,861,306
China Huishan Dairy Holdings Co. Ltd.^c,d		70,195,000		90
China Medical System Holdings Ltd.^c		7,656,000		14,086,387
China Mengniu Dairy Co. Ltd.		7,656,000		17,881,885
China Merchants Port Holdings Co. Ltd.		1,132,000		3,702,726
China Mobile Ltd.		3,828,000		40,596,183
China Petroleum & Chemical Corp. Class H		18,096,000		13,849,835
China Resources Beer Holdings Co. Ltd.		6,960,000		17,465,696
China Resources Gas Group Ltd.		5,570,000		19,642,622
China Resources Power Holdings Co. Ltd.		2,790,000		5,119,103
China Telecom Corp. Ltd. Class H		18,096,000		9,294,881
China Unicom Hong Kong Ltd.^a		2,784,000		4,055,172
COSCO SHIPPING Ports Ltd.^c		13,920,000		16,451,903
CSPC Pharmaceutical Group Ltd.		25,056,000		39,121,737
Fullshare Holdings Ltd.^c		18,120,000		7,223,505
Fuyao Glass Industry Group Co. Ltd. Class H^b		835,200		2,662,541
Guangdong Investment Ltd.^c		32,016,000		47,288,996
Hengan International Group Co. Ltd.		2,088,000		17,447,911
Industrial & Commercial Bank of China Ltd. Class H		34,800,000		26,056,258
Jiangsu Expressway Co. Ltd. Class H		19,488,000		29,880,214
Lenovo Group Ltd.^c		6,960,000		3,806,170
NetEase Inc. ADR		89,784		24,766,019
New Oriental Education & Technology Group Inc. ADR		192,096		15,703,848
Semiconductor Manufacturing International Corp.^a,c		14,268,000		13,417,639
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		13,920,000		11,116,151
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		8,143,200		13,134,982


CONSOLIDATED SCHEDULES OF INVESTMENTS			21

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		2,992,800	$	7,364,939
Shenzhou International Group Holdings Ltd.		4,872,000		39,031,029
Sihuan Pharmaceutical Holdings Group Ltd.		32,016,000		12,313,138
Sino Biopharmaceutical Ltd.		18,096,000		15,884,535
Sinopharm Group Co. Ltd. Class H		835,600		3,774,184
Sun Art Retail Group Ltd.		5,220,000		4,808,847
Sunny Optical Technology Group Co. Ltd.		200,000		2,867,200
TAL Education Group Class A ADR		1,411,488		42,951,580
Tencent Holdings Ltd.		1,670,400		70,218,503
TravelSky Technology Ltd. Class H		6,264,000		17,127,765
Tsingtao Brewery Co. Ltd. Class H		1,834,000		7,604,124
Want Want China Holdings Ltd.^c		3,480,000		2,303,267
Yum China Holdings Inc.^a		1,570,872		55,546,034
Zhejiang Expressway Co. Ltd. Class H		9,744,000		12,188,637

				948,542,555
COLOMBIA — 0.53%
Grupo Argos SA/Colombia		199,752		1,423,120
Interconexion Electrica SA ESP		4,388,280		19,908,829

				21,331,949
CZECH REPUBLIC — 0.56%
CEZ AS		100,224		1,897,854
Komercni Banka AS		240,816		10,594,606
Moneta Money Bank AS^b		758,640		2,655,582
O2 Czech Republic AS		598,560		7,492,694

				22,640,736
EGYPT — 0.40%
Commercial International Bank Egypt SAE		3,421,536		16,323,013

				16,323,013
GREECE — 1.10%
Hellenic Telecommunications Organization SA		679,015		8,637,902
JUMBO SA		1,120,560		18,651,265
OPAP SA		361,400		4,034,585
Titan Cement Co. SA		460,752		13,064,739

				44,388,491


Security	Shares		Value
HUNGARY — 0.97%
MOL Hungarian Oil & Gas PLC		149,640	$	13,868,780
Richter Gedeon Nyrt		970,224		25,228,549

				39,097,329
INDIA — 6.11%
Asian Paints Ltd.		1,387,128		25,356,226
Cadila Healthcare Ltd.		311,808		2,438,810
Cipla Ltd.		293,712		2,627,620
Coal India Ltd.		432,216		1,605,101
Dabur India Ltd.		5,942,448		29,291,024
HCL Technologies Ltd.		1,848,576		25,022,159
Hindustan Unilever Ltd.		1,011,984		19,309,243
Infosys Ltd.		1,788,024		25,591,249
Lupin Ltd.		150,336		2,303,382
Marico Ltd.		2,932,248		14,469,449
Nestle India Ltd.		32,016		3,566,515
Sun Pharmaceuticals Industries Ltd.		653,544		4,918,992
Tata Consultancy Services Ltd.		817,104		31,908,294
Tech Mahindra Ltd.		1,848,576		12,380,952
Titan Co. Ltd.		535,920		5,173,403
Wipro Ltd.		8,711,832		40,761,173

				246,723,592
INDONESIA — 4.95%
Bank Central Asia Tbk PT		34,869,600		49,526,227
Bank Rakyat Indonesia Persero Tbk PT		3,410,400		3,866,160
Gudang Garam Tbk PT		1,670,300		8,663,226
Hanjaya Mandala Sampoerna Tbk PT		88,531,200		24,153,318
Indofood CBP Sukses Makmur Tbk PT		10,579,200		6,918,267
Indofood Sukses Makmur Tbk PT		15,033,600		9,436,846
Jasa Marga Persero Tbk PT		5,707,295		2,491,755
Kalbe Farma Tbk PT		146,786,400		18,813,127
Telekomunikasi Indonesia Persero Tbk PT		106,766,400		37,530,686
Unilever Indonesia Tbk PT		10,161,600		38,500,141

				199,899,753
MALAYSIA — 6.95%
DiGi.Com Bhd^c		3,410,400		3,865,200
HAP Seng Consolidated Bhd		2,714,400		5,771,397
Hartalega Holdings Bhd		1,670,400		2,655,899


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Hong Leong Bank Bhd		10,300,800	$	37,242,560
IHH Healthcare Bhd		31,946,400		44,809,492
Malayan Banking Bhd		20,532,000		45,482,431
Maxis Bhd^c		18,583,200		25,151,831
Petronas Chemicals Group Bhd		6,194,400		10,385,647
Petronas Dagangan Bhd		1,044,000		5,965,016
Petronas Gas Bhd		5,498,400		23,690,565
Public Bank Bhd		10,216,580		49,282,648
Telekom Malaysia Bhd^c		7,099,200		10,689,113
Tenaga Nasional Bhd		3,828,000		12,800,337
Westports Holdings Bhd^c		2,992,800		2,628,029

				280,420,165
MEXICO — 2.58%
Arca Continental SAB de CV		3,897,600		28,604,232
Coca-Cola Femsa SAB de CV Series L		556,800		4,577,739
Gruma SAB de CV Series B		661,200		9,728,009
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,088,000		23,103,869
Grupo Aeroportuario del Sureste SAB de CV Series B		459,360		9,399,963
Infraestructura Energetica Nova SAB de CV		1,600,800		8,725,798
Wal-Mart de Mexico SAB de CV		8,282,400		20,210,213

				104,349,823
PAKISTAN — 0.29%
Habib Bank Ltd.		1,948,700		3,290,932
Lucky Cement Ltd.		556,800		3,159,787
MCB Bank Ltd.		2,783,900		5,119,518

				11,570,237
PERU — 1.22%
Credicorp Ltd.		243,600		49,411,824

				49,411,824
PHILIPPINES — 3.39%
Aboitiz Equity Ventures Inc.		16,216,800		23,594,699
Aboitiz Power Corp.		24,568,800		18,965,558
Bank of the Philippine Islands		12,806,404		26,503,775
BDO Unibank Inc.		10,739,283		26,675,061
Jollibee Foods Corp.		4,412,640		20,541,154
Metropolitan Bank & Trust Co.		4,322,161		7,399,283
Security Bank Corp.		1,357,200		6,630,839
Universal Robina Corp.		2,303,760		6,577,669

				136,888,038


Security	Shares		Value
POLAND — 1.50%
Bank Pekao SA		396,024	$	14,180,128
Bank Zachodni WBK SA		82,824		8,566,561
Cyfrowy Polsat SA		533,136		3,998,446
Grupa Lotos SA^a		176,088		2,900,470
PGE Polska Grupa Energetyczna SA		4,306,848		17,198,948
Polski Koncern Naftowy ORLEN SA		416,904		13,755,242

				60,599,795
QATAR — 1.94%
Commercial Bank PQSC (The)^a		725,232		5,937,292
Doha Bank QPSC		522,972		4,331,709
Masraf Al Rayan QSC		226,200		2,369,936
Qatar Electricity & Water Co. QSC		462,144		23,606,944
Qatar Gas Transport Co. Ltd.		453,835		2,117,585
Qatar Insurance Co. SAQ		469,800		8,515,427
Qatar Islamic Bank SAQ		623,616		15,927,577
Qatar National Bank QPSC		430,128		15,427,317

				78,233,787
RUSSIA — 0.21%
Rosneft Oil Co. PJSC		371,300		1,953,841
Rosneft Oil Co. PJSC GDR		1,290,771		6,712,009

				8,665,850
SOUTH AFRICA — 2.01%
Bidvest Group Ltd. (The)		343,128		4,526,201
Fortress Income Fund Ltd. Class A		7,168,104		9,673,287
NEPI Rockcastle PLC^a		890,184		12,910,151
Pick n Pay Stores Ltd.		1,921,656		9,459,323
Sappi Ltd.		260,304		1,750,380
SPAR Group Ltd. (The)		708,528		9,215,361
Tiger Brands Ltd.		77,952		2,416,977
Vodacom Group Ltd.		2,245,296		31,369,363

				81,321,043
SOUTH KOREA — 10.39%
Cheil Worldwide Inc.		177,480		2,990,528
CJ CheilJedang Corp.^c		11,136		3,579,993
CJ Logistics Corp.^a,c		52,200		7,823,519
Coway Co. Ltd.		70,992		6,220,299
Dongbu Insurance Co. Ltd.		438,480		29,242,370
E-MART Inc.		27,144		5,392,210
GS Retail Co. Ltd.		127,368		4,557,732


CONSOLIDATED SCHEDULES OF INVESTMENTS			23

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Hanssem Co. Ltd.^c		43,152	$	6,505,711
Hanwha Life Insurance Co. Ltd.		475,368		3,085,929
Hyundai Marine & Fire Insurance Co. Ltd.		265,176		10,864,785
Kakao Corp.^c		36,192		3,947,868
Kangwon Land Inc.		718,968		21,997,513
Kia Motors Corp.		225,504		7,089,497
Korea Electric Power Corp.		107,184		4,077,859
KT Corp.		262,836		7,272,511
KT&G Corp.		389,760		39,577,439
LG Display Co. Ltd.		95,352		2,634,103
Lotte Confectionery Co. Ltd.		23,664		4,144,768
NAVER Corp.		48,719		32,620,473
NCsoft Corp.^c		48,024		16,375,690
S-1 Corp.		281,880		22,423,409
Samsung Biologics Co. Ltd.^a,b,c		162,168		40,700,199
Samsung Electro-Mechanics Co. Ltd.		59,160		5,299,007
Samsung Electronics Co. Ltd.		13,224		27,161,036
Samsung Fire & Marine Insurance Co. Ltd.		92,568		22,698,698
Samsung Life Insurance Co. Ltd.		257,520		26,377,758
Samsung SDI Co. Ltd.		60,552		10,552,029
SK Hynix Inc.		239,424		14,565,880
SK Telecom Co. Ltd.		132,240		29,729,372

				419,508,185
TAIWAN — 16.30%
Advanced Semiconductor Engineering Inc.		2,784,890		3,358,958
Advantech Co. Ltd.		2,903,333		21,405,335
Asustek Computer Inc.		1,667,000		13,809,271
Chicony Electronics Co. Ltd.		7,695,085		19,327,593
Chunghwa Telecom Co. Ltd.		15,312,000		53,274,131
Delta Electronics Inc.		2,327,000		12,761,142
EVA Airways Corp.		6,452,582		3,356,822
Far EasTone Telecommunications Co. Ltd.		18,792,000		45,580,516
First Financial Holding Co. Ltd.		58,200,159		37,798,572
Formosa Petrochemical Corp.		5,568,000		19,649,160
Formosa Plastics Corp.		2,784,840		8,664,849
Formosa Taffeta Co. Ltd.		7,656,000		7,610,590
Foxconn Technology Co. Ltd.		3,213,331		10,200,375
Hon Hai Precision Industry Co. Ltd.		12,528,125		48,777,451
Hua Nan Financial Holdings Co. Ltd.		52,200,034		29,145,120


Security	Shares		Value
Lite-On Technology Corp.		16,008,752	$	23,685,039
Novatek Microelectronics Corp.		541,000		2,106,349
Phison Electronics Corp.		152,000		2,049,902
Powertech Technology Inc.		2,785,000		8,453,097
President Chain Store Corp.		2,786,000		23,309,752
Quanta Computer Inc.		2,784,000		6,337,546
Siliconware Precision Industries Co. Ltd.		28,536,000		45,197,681
Standard Foods Corp.		1,819,476		4,648,318
Synnex Technology International Corp.		14,616,000		16,321,257
TaiMed Biologics Inc.^a		349,000		2,509,460
Taiwan Business Bank		15,055,476		4,160,597
Taiwan Cooperative Financial Holding Co. Ltd.		98,929,770		52,121,785
Taiwan Mobile Co. Ltd.		13,920,000		49,814,772
Taiwan Semiconductor Manufacturing Co. Ltd.		8,352,000		59,916,101
Transcend Information Inc.		3,480,000		10,378,077
United Microelectronics Corp.		8,352,000		4,165,068
WPG Holdings Ltd.		6,264,000		8,157,169

				658,051,855
THAILAND — 6.71%
Advanced Info Service PCL NVDR		1,809,600		10,218,340
Airports of Thailand PCL NVDR		15,247,800		25,026,505
Bangkok Dusit Medical Services PCL NVDR^c		38,280,000		24,094,323
Bangkok Expressway & Metro PCL		71,537,000		16,804,355
BTS Group Holdings PCL NVDR		96,604,800		25,165,834
Bumrungrad Hospital PCL NVDR		3,312,600		21,748,134
Central Pattana PCL NVDR		1,392,000		3,018,341
CP ALL PCL NVDR		15,451,200		28,850,306
Delta Electronics Thailand PCL NVDR		6,659,000		17,848,246
Electricity Generating PCL NVDR		2,205,300		15,541,039
Glow Energy PCL NVDR		8,421,600		21,748,297
Home Product Center PCL NVDR		25,709,400		7,742,629
Kasikornbank PCL NVDR		1,531,200		9,268,821
KCE Electronics PCL NVDR		4,384,800		11,554,585
Minor International PCL NVDR^c		3,310,500		3,963,029
Robinson PCL NVDR		3,310,500		5,732,683
Siam Cement PCL (The) Foreign		1,183,200		17,816,594


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Thai Union Group PCL NVDR		7,864,800	$	4,689,747

				270,831,808
UNITED ARAB EMIRATES — 2.12%
DP World Ltd.		942,384		21,618,289
Dubai Islamic Bank PJSC		3,866,976		6,411,446
Emirates Telecommunications Group Co. PJSC		5,135,088		25,164,462
First Abu Dhabi Bank PJSC		11,380,296		32,222,122

				85,416,319
TOTAL COMMON STOCKS
(Cost: $3,442,143,464)				4,014,242,153

PREFERRED STOCKS — 0.27%

COLOMBIA — 0.16%
Grupo de Inversiones Suramericana SA, Preference Shares		459,360		6,277,057

				6,277,057
RUSSIA — 0.05%
Transneft PJSC, Preference Shares		695		2,129,578

				2,129,578
SOUTH KOREA — 0.06%
Samsung Electronics Co. Ltd., Preference Shares		1,392		2,326,996

				2,326,996

TOTAL PREFERRED STOCKS
(Cost: $7,841,928)				10,733,631

SHORT-TERM INVESTMENTS — 2.22%

MONEY MARKET FUNDS — 2.22%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		84,571,230		84,596,601
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		4,920,351		4,920,351

				89,516,952

TOTAL SHORT-TERM INVESTMENTS
(Cost: $89,502,029)				89,516,952


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.91%
(Cost: $3,539,487,421)^h	$	4,114,492,736
Other Assets, Less Liabilities — (1.91)%		(77,064,641	)

NET ASSETS — 100.00%	$	4,037,428,095

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $3,593,723,443. Net unrealized appreciation was $520,769,293, of which $700,768,390 represented gross unrealized appreciation on investments and $179,999,097 represented gross unrealized depreciation on investments.


CONSOLIDATED SCHEDULES OF INVESTMENTS			25

Consolidated Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MIN VOL EMERGING MARKETS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased		Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		110,089,754		—		(25,518,524	)^b		84,571,230	$	84,596,601	$	12,206	$	14,923	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		10,381,725		—		(5,461,374	)^b		4,920,351		4,920,351		445		—		25,146

										$	89,516,952	$	12,651	$	14,923	$	25,146

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	4,014,242,063	$	—	$	90	$	4,014,242,153
Preferred stocks		10,733,631		—		—		10,733,631
Money market funds		89,516,952		—		—		89,516,952

Total	$	4,114,492,646	$	—	$	90	$	4,114,492,736

See notes to financial statements.


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 95.85%

BRAZIL — 4.56%
Ambev SA		33,448,615	$	211,123,486
B3 SA-Brasil Bolsa Balcao		14,711,401		103,423,283
Banco Bradesco SA		6,508,438		66,709,188
Banco do Brasil SA		6,094,874		59,467,855
Banco Santander Brasil SA Units		2,971,300		26,479,128
BB Seguridade Participacoes SA		4,954,700		43,650,554
BR Malls Participacoes SA		5,838,488		25,235,881
BRF SA^a		3,193,485		43,155,614
CCR SA		8,601,100		47,728,458
Centrais Eletricas Brasileiras SA^a		1,381,200		7,734,667
Cia. de Saneamento Basico do Estado de Sao Paulo		2,437,024		24,901,181
Cia. Siderurgica Nacional SA^a		4,426,128		12,224,269
Cielo SA		8,656,876		61,712,002
Cosan SA Industria e Comercio		1,123,400		13,778,069
CPFL Energia SA		1,760,467		15,157,098
Duratex SA		2,218,055		6,062,475
EDP-Energias do Brasil SA		2,146,600		10,397,173
Embraer SA		4,741,500		27,019,369
Engie Brasil Energia SA		1,140,900		13,089,828
Equatorial Energia SA		1,410,800		27,404,884
Fibria Celulose SA		1,767,061		23,469,459
Hypermarcas SA		2,461,100		23,082,223
JBS SA		5,792,065		15,959,956
Klabin SA Units		4,153,000		22,596,692
Kroton Educacional SA		9,794,680		55,939,360
Localiza Rent A Car SA		1,185,663		22,439,975
Lojas Americanas SA		1,325,450		6,082,886
Lojas Renner SA		5,034,390		48,960,681
M. Dias Branco SA		734,200		11,457,109
Multiplan Empreendimentos Imobiliarios SA		600,003		13,937,682
Natura Cosmeticos SA		1,219,600		11,434,537
Odontoprev SA		1,907,600		8,984,930
Petroleo Brasileiro SA^a		21,082,274		93,603,702
Porto Seguro SA		808,400		8,928,125
Qualicorp SA		1,594,700		17,662,857


Security	Shares		Value
Raia Drogasil SA		1,645,400	$	36,265,788
Rumo SA^a		5,707,000		18,736,452
Sul America SA		1,411,736		8,067,191
TIM Participacoes SA		5,965,376		21,385,829
Transmissora Alianca de Energia Eletrica SA Units		1,347,200		9,633,714
Ultrapar Participacoes SA		2,565,000		59,876,766
Vale SA		20,148,716		224,639,506
WEG SA		4,024,720		26,171,009

				1,635,770,891
CHILE — 1.11%
AES Gener SA		19,202,170		6,719,110
Aguas Andinas SA Series A		19,054,241		12,169,803
Banco de Chile		179,961,937		26,213,665
Banco de Credito e Inversiones		267,078		17,319,866
Banco Santander Chile		472,589,283		34,554,576
Cencosud SA		10,126,782		30,442,869
Cia. Cervecerias Unidas SA		1,027,144		14,002,037
Colbun SA		56,316,834		13,566,618
Empresa Nacional de Telecomunicaciones SA		1,038,800		10,853,810
Empresas CMPC SA		8,917,209		23,274,931
Empresas COPEC SA		3,251,802		41,510,616
Enel Americas SA		206,853,549		44,623,410
Enel Chile SA		140,726,889		16,568,618
Enel Generacion Chile SA		23,294,944		19,746,806
Itau CorpBanca		1,114,596,765		10,650,426
LATAM Airlines Group SA		2,171,351		27,225,502
SACI Falabella		5,034,012		50,611,670

				400,054,333
CHINA — 28.95%
3SBio Inc.^a,b,c		7,219,000		9,924,863
58.com Inc. ADR^a,c		645,005		40,396,663
AAC Technologies Holdings Inc.^c		5,223,000		95,231,184
Agricultural Bank of China Ltd. Class H		185,199,000		87,080,646
Air China Ltd. Class H		12,828,000		11,407,839
Alibaba Group Holding Ltd. ADR^a,c		8,080,564		1,387,756,061
Alibaba Health Information Technology Ltd.^a,c		22,842,000		10,652,761
Alibaba Pictures Group Ltd.^a,c		85,020,000		14,882,533


CONSOLIDATED SCHEDULES OF INVESTMENTS			27

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Aluminum Corp. of China Ltd. Class H^a,c		28,038,000	$	20,742,485
Anhui Conch Cement Co. Ltd. Class H		8,779,000		32,753,905
ANTA Sports Products Ltd.^c		7,586,402		29,855,322
Autohome Inc. ADR^a,c		372,565		23,944,753
AviChina Industry & Technology Co. Ltd. Class H^c		14,907,000		8,818,738
Baidu Inc. ADR^a		1,944,999		443,557,022
Bank of China Ltd. Class H		563,546,000		296,661,899
Bank of Communications Co. Ltd. Class H		62,149,600		47,486,997
Beijing Capital International Airport Co. Ltd. Class H		10,868,000		17,579,986
Beijing Enterprises Holdings Ltd.		3,584,500		20,014,521
Beijing Enterprises Water Group Ltd.		33,794,000		28,714,181
Brilliance China Automotive Holdings Ltd.		21,500,000		55,628,669
Byd Co. Ltd. Class H^c		4,554,000		27,115,282
CGN Power Co. Ltd. Class H^b		75,199,000		20,753,961
China Cinda Asset Management Co. Ltd. Class H		62,652,000		23,295,021
China CITIC Bank Corp. Ltd. Class H		63,585,800		42,003,538
China Coal Energy Co. Ltd. Class H		14,829,000		7,465,231
China Communications Construction Co. Ltd. Class H		31,447,000		41,867,991
China Communications Services Corp. Ltd. Class H		17,374,000		9,412,410
China Conch Venture Holdings Ltd.^c		11,042,500		20,091,510
China Construction Bank Corp. Class H		596,883,760		523,177,506
China Everbright Bank Co. Ltd. Class H		21,710,000		10,429,965
China Everbright International Ltd.		17,456,000		23,062,185


Security	Shares		Value
China Everbright Ltd.		6,510,000	$	14,872,490
China Evergrande Group^a,c		23,651,388		71,469,865
China Galaxy Securities Co. Ltd. Class H		23,263,000		21,074,008
China Gas Holdings Ltd.		12,304,000		31,064,792
China Huarong Asset Management Co. Ltd. Class H^b		43,454,000		18,544,341
China Huishan Dairy Holdings Co. Ltd.^a,c,d		27,094,000		35
China Jinmao Holdings Group Ltd.		26,560,000		11,809,799
China Life Insurance Co. Ltd. Class H		52,768,000		169,230,852
China Longyuan Power Group Corp. Ltd. Class H		22,511,000		16,854,955
China Medical System Holdings Ltd.^c		8,924,000		16,419,398
China Mengniu Dairy Co. Ltd.		19,453,000		45,435,777
China Merchants Bank Co. Ltd. Class H		27,663,467		104,271,065
China Merchants Port Holdings Co. Ltd.		9,214,000		30,138,620
China Minsheng Banking Corp. Ltd. Class H		40,434,040		40,349,054
China Mobile Ltd.		43,529,500		461,633,116
China National Building Material Co. Ltd. Class H		20,394,000		12,820,433
China Oilfield Services Ltd. Class H^c		12,816,000		10,512,904
China Overseas Land & Investment Ltd.		27,164,960		94,929,586
China Pacific Insurance Group Co. Ltd. Class H		18,675,400		87,931,117
China Petroleum & Chemical Corp. Class H		180,898,800		138,451,509
China Power International Development Ltd.		23,397,000		7,981,906
China Railway Construction Corp. Ltd. Class H		14,045,500		18,412,796
China Railway Group Ltd. Class H		28,518,000		22,810,173
China Resources Beer Holdings Co. Ltd.		11,514,000		28,893,682


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
China Resources Gas Group Ltd.^c		6,244,000	$	22,019,485
China Resources Land Ltd.		19,595,333		61,216,246
China Resources Power Holdings Co. Ltd.		13,556,999		24,874,433
China Shenhua Energy Co. Ltd. Class H		24,099,000		62,045,353
China Southern Airlines Co. Ltd. Class H		12,946,000		10,106,761
China State Construction International Holdings Ltd.		12,728,000		18,442,017
China Taiping Insurance Holdings Co. Ltd.		11,480,060		34,837,177
China Telecom Corp. Ltd. Class H		98,038,000		50,356,517
China Unicom Hong Kong Ltd.^a		42,322,000		61,646,187
China Vanke Co. Ltd. Class H		8,555,931		25,635,707
Chongqing Changan Automobile Co. Ltd. Class B		6,113,975		7,999,426
Chongqing Rural Commercial Bank Co. Ltd. Class H		18,277,000		12,727,309
CITIC Ltd.		40,644,000		62,421,772
CITIC Securities Co. Ltd. Class H		16,028,500		35,553,126
CNOOC Ltd.		126,689,000		151,513,016
COSCO SHIPPING Ports Ltd.		11,698,000		13,825,745
Country Garden Holdings Co. Ltd.^c		38,488,939		51,145,151
CRRC Corp. Ltd. Class H		29,433,300		26,550,875
CSPC Pharmaceutical Group Ltd.		29,932,000		46,734,987
Ctrip.com International Ltd. ADR^a,c		2,781,221		143,093,820
Dongfeng Motor Group Co. Ltd. Class H		19,258,000		25,000,004
ENN Energy Holdings Ltd.		5,380,000		34,611,222
Far East Horizon Ltd.^c		14,157,000		12,933,393
Fosun International Ltd.^c		18,307,000		31,765,240
Fullshare Holdings Ltd.^c		47,450,000		18,915,856


Security	Shares		Value
Fuyao Glass Industry Group Co. Ltd. Class H^b		3,476,800	$	11,083,717
GCL-Poly Energy Holdings Ltd.^a,c		92,506,000		10,401,303
Geely Automobile Holdings Ltd.		34,792,000		85,530,231
GF Securities Co. Ltd. Class H		9,716,200		20,732,329
GOME Electrical Appliances Holding Ltd.^c		84,243,200		8,826,406
Great Wall Motor Co. Ltd. Class H^c		22,050,000		27,666,567
Guangdong Investment Ltd.		20,232,110		29,883,688
Guangzhou Automobile Group Co. Ltd. Class H		14,980,742		29,553,968
Guangzhou R&F Properties Co. Ltd. Class H		6,924,400		16,173,109
Haier Electronics Group Co. Ltd.		8,937,000		23,751,458
Haitian International Holdings Ltd.		4,605,000		13,827,150
Haitong Securities Co. Ltd. Class H		22,672,800		38,007,926
Hengan International Group Co. Ltd.		5,115,500		42,746,545
Huaneng Power International Inc. Class H		29,982,000		19,613,981
Huaneng Renewables Corp. Ltd. Class H		33,098,000		10,149,583
Huatai Securities Co. Ltd. Class H^b		11,454,800		25,495,929
Industrial & Commercial Bank of China Ltd. Class H		523,393,085		391,886,932
JD.com Inc. ADR^a,c		4,666,966		195,592,545
Jiangsu Expressway Co. Ltd. Class H		8,688,000		13,320,982
Jiangxi Copper Co. Ltd. Class H		8,809,000		15,284,864
Kingsoft Corp. Ltd.^c		5,574,000		13,218,438
Kunlun Energy Co. Ltd.^c		22,818,000		22,099,476
Lenovo Group Ltd.^c		51,286,000		28,046,443
Longfor Properties Co. Ltd.		10,438,500		25,074,434
Momo Inc. ADR^a		758,231		29,214,640
NetEase Inc. ADR		561,424		154,863,196


CONSOLIDATED SCHEDULES OF INVESTMENTS			29

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
New China Life Insurance Co. Ltd. Class H^c		5,537,100	$	35,445,024
New Oriental Education & Technology Group Inc. ADR		953,358		77,937,017
Nine Dragons Paper Holdings Ltd.		11,655,000		19,448,703
People’s Insurance Co. Group of China Ltd. (The) Class H		49,397,000		23,289,605
PetroChina Co. Ltd. Class H		149,528,000		95,527,346
PICC Property & Casualty Co. Ltd. Class H		32,554,128		61,144,667
Ping An Insurance Group Co. of China Ltd. Class H		36,991,500		293,750,260
Semiconductor Manufacturing International Corp.^a,c		19,623,999		18,454,425
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		13,272,000		10,598,675
Shanghai Electric Group Co. Ltd. Class H^a,c		20,094,000		9,114,439
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		3,323,500		12,484,703
Shanghai Industrial Holdings Ltd.		3,581,000		10,889,714
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd. Class B		7,038,921		11,353,780
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		5,000,700		12,306,152
Shenzhou International Group Holdings Ltd.^c		4,001,000		32,053,191
Shimao Property Holdings Ltd.		8,538,500		17,630,236
Sihuan Pharmaceutical Holdings Group Ltd.		26,358,000		10,137,109
SINA Corp./China^a		404,900		41,230,967
Sino Biopharmaceutical Ltd.		31,585,000		27,725,080
Sino-Ocean Group Holding Ltd.		21,644,000		14,933,667


Security	Shares		Value
Sinopec Engineering Group Co. Ltd. Class H		8,876,500	$	8,007,218
Sinopec Shanghai Petrochemical Co. Ltd. Class H		24,815,000		15,472,813
Sinopharm Group Co. Ltd. Class H		8,398,800		37,935,153
SOHO China Ltd.		15,260,500		8,891,372
Sun Art Retail Group Ltd.^c		17,123,500		15,774,768
Sunac China Holdings Ltd.^c		14,598,000		43,832,517
Sunny Optical Technology Group Co. Ltd.		5,054,000		72,454,152
TAL Education Group Class A ADR		1,979,178		60,226,387
Tencent Holdings Ltd.		40,347,000		1,696,064,371
Tingyi Cayman Islands Holding Corp.^c		13,844,000		18,431,662
TravelSky Technology Ltd. Class H		6,616,000		18,090,245
Tsingtao Brewery Co. Ltd. Class H		2,450,000		10,158,182
Vipshop Holdings Ltd. ADR^a		2,881,619		26,827,873
Want Want China Holdings Ltd.^c		37,785,000		25,008,312
Weibo Corp. ADR^a,c		325,964		32,954,960
Weichai Power Co. Ltd. Class H		13,920,800		14,336,212
Yanzhou Coal Mining Co. Ltd. Class H		13,188,800		13,245,337
Yum China Holdings Inc.^a		2,732,064		96,605,783
YY Inc. ADR^a		299,799		22,400,981
Zhejiang Expressway Co. Ltd. Class H		10,092,000		12,623,946
Zhuzhou CRRC Times Electric Co. Ltd. Class H		3,888,600		20,346,156
Zijin Mining Group Co. Ltd. Class H		40,632,000		14,899,966
ZTE Corp. Class H^a		5,261,000		14,351,635

				10,390,089,327
COLOMBIA — 0.28%
Bancolombia SA		1,622,814		18,185,599
Cementos Argos SA		3,216,845		13,064,905
Ecopetrol SA		34,983,894		16,275,474
Grupo Argos SA/Colombia		2,114,497		15,064,596


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Grupo de Inversiones Suramericana SA		1,856,317	$	26,160,448
Interconexion Electrica SA ESP		2,741,006		12,435,446

				101,186,468
CZECH REPUBLIC — 0.18%
CEZ AS		1,159,269		21,952,054
Komercni Banka AS		552,787		24,319,649
Moneta Money Bank AS^b		3,441,368		12,046,339
O2 Czech Republic AS		438,521		5,489,347

				63,807,389
EGYPT — 0.13%
Commercial International Bank Egypt SAE		7,081,955		33,785,657
Egyptian Financial Group-Hermes Holding Co.		2,468,463		2,891,988
Global Telecom Holding SAE^a		20,623,793		8,221,489

				44,899,134
GREECE — 0.37%
Alpha Bank AE^a		9,756,054		24,705,801
Eurobank Ergasias SA^a,c		13,084,444		14,109,372
FF Group^a,c		238,362		5,922,819
Hellenic Telecommunications Organization SA		1,717,303		21,846,197
JUMBO SA		723,640		12,044,693
National Bank of Greece SA^a		38,676,218		15,679,908
OPAP SA		1,574,616		17,578,645
Piraeus Bank SA^a		1,995,611		11,174,856
Titan Cement Co. SA		322,172		9,135,269

				132,197,560
HONG KONG — 0.06%
Minth Group Ltd.		4,774,000		21,989,880

				21,989,880
HUNGARY — 0.35%
MOL Hungarian Oil & Gas PLC		324,630		30,087,022
OTP Bank PLC		1,695,383		68,900,927
Richter Gedeon Nyrt		983,931		25,584,969

				124,572,918
INDIA — 8.69%
ACC Ltd.		307,014		8,645,931


Security	Shares		Value
Adani Ports & Special Economic Zone Ltd.		5,317,093	$	32,683,783
Aditya Birla Capital Ltd.^a		3,044,568		8,836,372
Ambuja Cements Ltd.		4,356,455		19,105,331
Apollo Hospitals Enterprise Ltd.^a		564,653		9,562,478
Ashok Leyland Ltd.		8,180,377		13,705,143
Asian Paints Ltd.		2,044,171		37,366,747
Aurobindo Pharma Ltd.		1,890,318		21,445,856
Axis Bank Ltd. GDR		11,856,064		92,797,272
Bajaj Auto Ltd.		599,628		26,400,000
Bajaj Finance Ltd.		1,176,477		32,793,483
Bajaj Finserv Ltd.		266,749		22,962,081
Bharat Forge Ltd.		744,467		13,134,039
Bharat Heavy Electricals Ltd.		4,138,074		8,343,955
Bharat Petroleum Corp. Ltd.		5,341,681		44,203,269
Bharti Airtel Ltd.		8,411,755		56,279,034
Bharti Infratel Ltd.		3,933,785		23,088,420
Bosch Ltd.		53,517		18,406,642
Cadila Healthcare Ltd.		1,470,029		11,497,851
Cipla Ltd.		2,509,554		22,451,089
Coal India Ltd.		4,887,826		18,151,697
Container Corp. of India Ltd.		306,004		6,318,135
Dabur India Ltd.		3,806,082		18,760,626
Dr. Reddy’s Laboratories Ltd.		815,584		25,783,050
Eicher Motors Ltd.		94,144		46,317,574
GAIL (India) Ltd.		3,551,363		21,016,103
Glenmark Pharmaceuticals Ltd.		995,667		9,486,882
Godrej Consumer Products Ltd.		1,723,947		25,061,128
Grasim Industries Ltd.		2,306,929		43,131,601
Havells India Ltd.		1,767,746		13,504,292
HCL Technologies Ltd.		4,010,234		54,282,169
Hero Motocorp Ltd.		353,950		22,120,266
Hindalco Industries Ltd.		8,302,632		30,911,033
Hindustan Petroleum Corp. Ltd.		4,290,014		32,772,583
Hindustan Unilever Ltd.		4,599,120		87,753,882
Housing Development Finance Corp. Ltd.		10,689,523		297,126,977
ICICI Bank Ltd.		16,756,549		78,125,800


CONSOLIDATED SCHEDULES OF INVESTMENTS			31

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Idea Cellular Ltd.		10,070,308	$	14,280,103
IDFC Bank Ltd.		9,532,997		8,179,502
Indiabulls Housing Finance Ltd.		2,242,223		42,633,848
Indian Oil Corp. Ltd.		4,061,351		28,887,918
Infosys Ltd.		13,014,416		186,269,958
ITC Ltd.		24,078,474		106,312,341
JSW Steel Ltd.		6,127,952		24,386,711
Larsen & Toubro Ltd.		3,350,531		59,556,260
LIC Housing Finance Ltd.		2,147,956		22,641,718
Lupin Ltd.		1,579,156		24,195,136
Mahindra & Mahindra Financial Services Ltd.		2,033,062		13,595,886
Mahindra & Mahindra Ltd.		2,637,900		55,492,821
Marico Ltd.		3,239,600		15,986,106
Maruti Suzuki India Ltd.		750,667		90,422,340
Motherson Sumi Systems Ltd.		4,364,862		21,036,960
Nestle India Ltd.		166,230		18,517,673
NTPC Ltd.		11,773,053		31,078,042
Oil & Natural Gas Corp. Ltd.		9,074,596		22,279,703
Piramal Enterprises Ltd.		561,887		23,852,373
Power Finance Corp. Ltd.		4,522,281		8,637,618
Reliance Industries Ltd.		9,207,653		229,664,695
Rural Electrification Corp. Ltd.		4,785,446		12,617,460
Shree Cement Ltd.		60,177		16,559,342
Shriram Transport Finance Co. Ltd.		1,055,505		16,263,623
Siemens Ltd.		524,153		10,536,151
State Bank of India		12,173,542		52,892,220
Sun Pharmaceuticals Industries Ltd.		6,826,727		51,382,330
Tata Consultancy Services Ltd.		3,314,582		129,435,979
Tata Motors Ltd.^a		11,219,020		66,084,308
Tata Motors Ltd. Class A^a		2,681,412		9,175,556
Tata Power Co. Ltd.		8,239,209		10,214,228
Tata Steel Ltd.		2,143,490		21,394,244
Tech Mahindra Ltd.		3,267,262		21,882,689
Titan Co. Ltd.		2,186,398		21,105,981
Ultratech Cement Ltd.		612,524		38,330,748
United Spirits Ltd.^a		424,633		16,891,328
UPL Ltd.		2,532,838		32,808,377
Vedanta Ltd.		10,508,552		50,778,698


Security	Shares		Value
Wipro Ltd.		8,572,738	$	40,110,376
Yes Bank Ltd.		2,372,712		65,066,898
Zee Entertainment Enterprises Ltd.		3,943,409		32,046,319

				3,117,817,141
INDONESIA — 2.26%
Adaro Energy Tbk PT		104,348,400		14,273,410
AKR Corporindo Tbk PT		12,524,600		6,359,928
Astra International Tbk PT		143,415,600		84,649,816
Bank Central Asia Tbk PT		71,160,900		101,071,733
Bank Danamon Indonesia Tbk PT		25,262,716		10,319,428
Bank Mandiri Persero Tbk PT		66,000,400		64,803,271
Bank Negara Indonesia Persero Tbk PT		52,907,376		29,146,246
Bank Rakyat Indonesia Persero Tbk PT		78,576,222		89,077,002
Bumi Serpong Damai Tbk PT		54,412,700		7,483,683
Charoen Pokphand Indonesia Tbk PT		52,891,745		10,981,122
Gudang Garam Tbk PT		3,421,700		17,747,087
Hanjaya Mandala Sampoerna Tbk PT		65,298,200		17,814,829
Indocement Tunggal Prakarsa Tbk PT		11,953,300		17,739,120
Indofood CBP Sukses Makmur Tbk PT		16,280,500		10,646,632
Indofood Sukses Makmur Tbk PT		31,200,900		19,585,335
Jasa Marga Persero Tbk PT		15,076,695		6,582,353
Kalbe Farma Tbk PT		152,004,715		19,481,941
Lippo Karawaci Tbk PT		111,353,600		6,551,685
Matahari Department Store Tbk PT		17,410,100		13,049,093
Media Nusantara Citra Tbk PT		37,105,100		4,143,801
Pakuwon Jati Tbk PT		141,250,200		7,093,212
Perusahaan Gas Negara Persero Tbk PT		76,976,800		12,231,361
Semen Indonesia Persero Tbk PT		20,911,400		16,417,847


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Summarecon Agung Tbk PT		71,039,300	$	5,564,088
Surya Citra Media Tbk PT		40,848,200		6,766,191
Telekomunikasi Indonesia Persero Tbk PT		356,091,500		125,173,822
Tower Bersama Infrastructure Tbk PT		16,061,000		7,734,367
Unilever Indonesia Tbk PT		10,765,500		40,788,190
United Tractors Tbk PT		12,049,553		27,364,822
Waskita Karya Persero Tbk PT		33,339,700		5,547,454
XL Axiata Tbk PT^a		25,112,700		6,776,025

				812,964,894
MALAYSIA — 2.24%
AirAsia Bhd		10,587,400		8,230,926
Alliance Financial Group Bhd		7,575,500		6,811,830
AMMB Holdings Bhd		12,680,175		12,708,383
Astro Malaysia Holdings Bhd		10,402,500		6,528,205
Axiata Group Bhd^c		19,035,300		21,974,951
British American Tobacco Malaysia Bhd		999,500		10,340,220
CIMB Group Holdings Bhd		28,271,000		46,870,081
Dialog Group Bhd		23,197,812		11,135,819
DiGi.Com Bhd^c		24,745,000		28,044,913
Felda Global Ventures Holdings Bhd^c		9,816,900		3,563,094
Gamuda Bhd^c		12,305,500		15,387,278
Genting Bhd		15,997,800		36,374,813
Genting Malaysia Bhd		21,465,700		29,505,599
Genting Plantations Bhd		2,021,100		5,035,594
HAP Seng Consolidated Bhd		4,032,100		8,573,110
Hartalega Holdings Bhd		4,456,400		7,085,577
Hong Leong Bank Bhd^c		4,373,700		15,813,120
Hong Leong Financial Group Bhd		1,442,800		5,709,711
IHH Healthcare Bhd^c		17,407,700		24,416,842
IJM Corp. Bhd		20,006,140		15,646,999
IOI Corp. Bhd^c		16,284,120		17,311,768
IOI Properties Group Bhd		15,491,756		7,218,966
Kuala Lumpur Kepong Bhd		3,166,900		18,198,273
Malayan Banking Bhd		25,380,900		56,223,701


Security	Shares		Value
Malaysia Airports Holdings Bhd		5,676,700	$	11,963,541
Maxis Bhd^c		13,394,400		18,128,939
MISC Bhd		8,216,900		14,315,358
Petronas Chemicals Group Bhd		17,026,600		28,547,115
Petronas Dagangan Bhd		1,503,400		8,589,851
Petronas Gas Bhd		4,932,600		21,252,743
PPB Group Bhd		3,479,700		13,591,241
Public Bank Bhd		20,189,730		97,391,040
RHB Bank Bhd		5,489,525		6,491,535
RHB Bank Bhd New^a,d		3,214,200		8
Sapura Energy Bhd^c		27,631,500		8,929,041
Sime Darby Bhd		16,774,173		35,351,260
Telekom Malaysia Bhd		7,902,100		11,898,022
Tenaga Nasional Bhd		24,081,550		80,525,590
UMW Holdings Bhd^a,c		3,565,100		5,075,707
Westports Holdings Bhd		6,747,500		5,925,097
YTL Corp. Bhd		31,266,362		10,469,710
YTL Power International Bhd		17,232,243		5,689,606

				802,845,177
MEXICO — 3.56%
Alfa SAB de CV		21,250,600		29,844,021
America Movil SAB de CV Series L		236,571,300		220,606,529
Arca Continental SAB de CV		3,033,036		22,259,253
Cemex SAB de CV CPO^a		103,224,673		96,779,918
Coca-Cola Femsa SAB de CV Series L		3,529,393		29,016,956
El Puerto de Liverpool SAB de CV Series C1^c		1,313,375		11,803,813
Fibra Uno Administracion SA de CV		18,260,300		32,672,902
Fomento Economico Mexicano SAB de CV		13,731,800		137,859,251
Gentera SAB de CV		7,325,500		11,274,268
Gruma SAB de CV Series B		1,525,985		22,451,293
Grupo Aeroportuario del Pacifico SAB de CV Series B		2,558,000		28,304,452
Grupo Aeroportuario del Sureste SAB de CV Series B		1,494,275		30,577,606


CONSOLIDATED SCHEDULES OF INVESTMENTS			33

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Grupo Bimbo SAB de CV Series A		11,643,000	$	28,312,557
Grupo Carso SAB de CV Series A1		3,848,441		15,600,840
Grupo Financiero Banorte SAB de CV Series O		17,675,656		120,913,775
Grupo Financiero Inbursa SAB de CV Series O^c		16,566,300		27,792,140
Grupo Financiero Santander Mexico SAB de CV Series B		12,953,500		26,767,890
Grupo Lala SAB de CV^c		4,244,600		7,559,081
Grupo Mexico SAB de CV Series B		26,980,188		89,223,733
Grupo Televisa SAB		17,296,800		89,712,092
Industrias Penoles SAB de CV		985,553		25,687,334
Infraestructura Energetica Nova SAB de CV		3,716,000		20,255,539
Kimberly-Clark de Mexico SAB de CV Series A		10,818,700		21,306,273
Mexichem SAB de CV		7,537,734		20,139,815
Promotora y Operadora de Infraestructura SAB de CV		1,780,920		19,576,106
Wal-Mart de Mexico SAB de CV		37,041,300		90,385,947

				1,276,683,384
PAKISTAN — 0.09%
Engro Corp. Ltd./Pakistan		1,846,700		4,976,786
Habib Bank Ltd.		3,958,500		6,685,049
Lucky Cement Ltd.		908,550		5,155,935
MCB Bank Ltd.		2,545,900		4,681,842
Oil & Gas Development Co. Ltd.		4,468,600		5,993,531
United Bank Ltd./Pakistan		3,213,900		5,686,342

				33,179,485
PERU — 0.39%
Cia. de Minas Buenaventura SAA ADR		1,358,484		18,244,440
Credicorp Ltd.		481,964		97,761,578
Southern Copper Corp.		613,034		24,950,484

				140,956,502


Security	Shares		Value
PHILIPPINES — 1.09%
Aboitiz Equity Ventures Inc.		14,885,870	$	21,658,257
Aboitiz Power Corp.		8,257,964		6,374,625
Alliance Global Group Inc.		23,439,180		6,367,102
Ayala Corp.		1,762,126		31,681,765
Ayala Land Inc.		53,937,100		44,271,218
Bank of the Philippine Islands		5,857,272		12,122,046
BDO Unibank Inc.		13,560,351		33,682,248
DMCI Holdings Inc.		25,404,800		7,794,711
Energy Development Corp.		62,792,800		8,320,015
Globe Telecom Inc.		242,675		9,485,050
GT Capital Holdings Inc.		572,425		12,506,765
International Container Terminal Services Inc.		3,875,640		7,907,305
JG Summit Holdings Inc.		19,926,234		27,959,812
Jollibee Foods Corp.		3,371,259		15,693,451
Megaworld Corp.		74,660,400		7,207,785
Metro Pacific Investments Corp.		93,393,500		11,589,774
Metropolitan Bank & Trust Co.		4,434,186		7,591,063
PLDT Inc.		662,458		22,396,958
Robinsons Land Corp.		9,653,500		4,376,807
Security Bank Corp.		1,221,390		5,967,315
SM Investments Corp.		1,842,072		29,177,240
SM Prime Holdings Inc.		60,404,225		39,427,421
Universal Robina Corp.		6,336,300		18,091,331

				391,650,064
POLAND — 1.36%
Alior Bank SA^a		642,431		11,865,575
Bank Handlowy w Warszawie SA		246,272		4,893,186
Bank Millennium SA^a		4,400,275		9,173,910
Bank Pekao SA		1,119,259		40,076,451
Bank Zachodni WBK SA		249,537		25,809,838
CCC SA		193,254		14,180,108
Cyfrowy Polsat SA		1,466,894		11,001,500
Eurocash SA		550,994		6,035,122
Grupa Azoty SA		309,819		5,973,731
Grupa Lotos SA^a		655,019		10,789,281
Jastrzebska Spolka Weglowa SA^a		373,498		10,870,261
KGHM Polska Miedz SA		989,591		34,921,203
LPP SA^c		9,176		22,423,603


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
mBank SA^a		107,105	$	13,128,110
Orange Polska SA^a		4,623,654		7,750,514
PGE Polska Grupa Energetyczna SA		5,955,107		23,781,098
Polski Koncern Naftowy ORLEN SA		2,163,134		71,369,983
Polskie Gornictwo Naftowe i Gazownictwo SA		12,607,692		24,097,648
Powszechna Kasa Oszczednosci Bank Polski SA^a		6,611,027		67,860,433
Powszechny Zaklad Ubezpieczen SA		4,251,778		57,707,291
Synthos SA		3,901,627		5,219,057
Tauron Polska Energia SA^a		7,542,900		8,274,520

				487,202,423
QATAR — 0.60%
Barwa Real Estate Co.		724,466		6,305,068
Commercial Bank PQSC (The)^a		1,430,764		11,713,306
Doha Bank QPSC		702,894		5,821,980
Ezdan Holding Group QSC		5,753,059		17,758,842
Industries Qatar QSC		1,039,572		25,980,378
Masraf Al Rayan QSC		2,668,535		27,958,698
Ooredoo QSC		579,129		13,930,905
Qatar Electricity & Water Co. QSC		209,275		10,690,052
Qatar Gas Transport Co. Ltd.		1,906,436		8,895,392
Qatar Insurance Co. SAQ		986,761		17,885,678
Qatar Islamic Bank SAQ		434,553		11,098,779
Qatar National Bank QPSC		1,598,344		57,327,491

				215,366,569
RUSSIA — 3.14%
Alrosa PJSC		18,323,000		25,477,094
Gazprom PJSC		57,873,929		117,312,422
Gazprom PJSC ADR		9,083,053		36,241,381
Inter RAO UES PJSC		220,515,000		14,690,874
Lukoil PJSC		2,288,086		115,438,519
Lukoil PJSC ADR		741,219		37,246,255
Magnit PJSC GDR^e		2,168,050		90,602,810
MMC Norilsk Nickel PJSC		447,387		75,341,280
Mobile TeleSystems PJSC ADR		3,544,686		35,411,413


Security	Shares		Value
Moscow Exchange MICEX-RTS PJSC		10,426,180	$	18,886,511
Novatek PJSC GDR^e		650,846		68,794,422
Novolipetsk Steel PJSC		7,938,199		18,794,703
PhosAgro PJSC GDR^e		758,030		10,536,617
Rosneft Oil Co. PJSC		6,700,087		35,256,937
Rosneft Oil Co. PJSC GDR		1,340,410		6,970,132
Rostelecom PJSC		6,910,400		7,906,949
RusHydro PJSC		764,906,100		10,887,153
Sberbank of Russia PJSC		61,067,081		193,364,193
Sberbank of Russia PJSC ADR		3,475,361		47,438,678
Severstal PJSC		1,355,463		21,262,622
Sistema PJSC FC GDR^e		1,207,897		5,012,773
Surgutneftegas OJSC		38,697,660		17,901,208
Surgutneftegas OJSC ADR		1,292,397		5,911,424
Tatneft PJSC Class S		10,679,140		70,611,963
VTB Bank PJSC		29,830,502,000		33,284,830
VTB Bank PJSC GDR^e		2,946,203		6,581,818

				1,127,164,981
SOUTH AFRICA — 6.76%
Anglo American Platinum Ltd.^a		378,333		10,260,618
AngloGold Ashanti Ltd.		2,900,474		29,380,758
Aspen Pharmacare Holdings Ltd.		2,740,038		61,116,708
Barclays Africa Group Ltd.		4,804,947		54,853,475
Bid Corp. Ltd.		2,382,184		54,148,293
Bidvest Group Ltd. (The)		2,370,179		31,265,027
Brait SE^a		2,550,289		11,290,143
Capitec Bank Holdings Ltd.		295,200		20,452,210
Coronation Fund Managers Ltd.		1,618,936		8,762,620
Discovery Ltd.		2,543,112		29,466,641
Exxaro Resources Ltd.		1,439,369		14,492,804
FirstRand Ltd.		24,057,955		102,784,246
Fortress Income Fund Ltd.		5,725,015		17,358,941
Fortress Income Fund Ltd. Class A		7,042,771		9,504,151
Foschini Group Ltd. (The)		1,577,655		18,604,130
Gold Fields Ltd.		5,836,452		26,044,564
Growthpoint Properties Ltd.		15,177,104		29,367,507
Hyprop Investments Ltd.		1,741,864		15,295,167
Impala Platinum Holdings Ltd.^a		4,435,881		13,719,747


CONSOLIDATED SCHEDULES OF INVESTMENTS			35

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Imperial Holdings Ltd.		1,117,185	$	17,931,690
Investec Ltd.		1,889,314		14,400,795
Liberty Holdings Ltd.		878,098		6,999,112
Life Healthcare Group Holdings Ltd.		9,179,123		18,623,079
Massmart Holdings Ltd.		766,434		7,174,023
MMI Holdings Ltd./South Africa		7,365,724		11,793,092
Mondi Ltd.		844,122		23,037,273
Mr. Price Group Ltd.		1,737,043		24,223,046
MTN Group Ltd.		12,038,047		119,690,465
Naspers Ltd. Class N		3,110,774		703,880,978
Nedbank Group Ltd.		1,580,681		26,739,322
NEPI Rockcastle PLC^a		2,146,621		31,131,991
Netcare Ltd.		7,029,587		13,039,688
Pick n Pay Stores Ltd.		2,570,881		12,655,123
Pioneer Foods Group Ltd.		901,966		8,788,920
PSG Group Ltd.		659,265		12,812,490
Rand Merchant Investment Holdings Ltd.		4,687,701		15,014,348
Redefine Properties Ltd.		35,477,843		29,097,427
Remgro Ltd.		3,773,354		63,099,711
Resilient REIT Ltd.		2,078,692		20,000,863
RMB Holdings Ltd.		5,051,844		25,827,662
Sanlam Ltd.		10,049,254		55,513,479
Sappi Ltd.		3,946,902		26,540,430
Sasol Ltd.		3,934,326		118,621,556
Shoprite Holdings Ltd.		3,160,798		54,811,484
Sibanye Gold Ltd.		12,038,541		19,237,584
SPAR Group Ltd. (The)		1,358,679		17,671,451
Standard Bank Group Ltd.		9,208,194		118,617,267
Steinhoff International Holdings NV Class H		21,341,233		103,212,918
Telkom SA SOC Ltd.		1,887,652		9,114,756
Tiger Brands Ltd.		1,170,855		36,303,486
Truworths International Ltd.		3,167,666		20,235,531
Vodacom Group Ltd.		3,694,989		51,623,239
Woolworths Holdings Ltd./South Africa		7,068,634		32,271,802

				2,427,903,831
SOUTH KOREA — 13.76%
AmorePacific Corp.^c		227,529		58,113,118
AmorePacific Group^c		203,043		24,128,913
BGF retail Co. Ltd.^c		168,584		13,635,031
BNK Financial Group Inc.		1,861,318		16,275,803


Security	Shares		Value
Celltrion Inc.^a,c		567,071	$	57,883,888
Cheil Worldwide Inc.		500,382		8,431,410
CJ CheilJedang Corp.		56,098		18,034,343
CJ Corp.		103,292		16,213,803
CJ E&M Corp.		135,047		9,102,139
CJ Logistics Corp.^a,c		53,573		8,029,299
Coway Co. Ltd.		379,642		33,264,127
Daelim Industrial Co. Ltd.		199,202		14,804,122
Daewoo Engineering & Construction Co. Ltd.^a		905,165		5,643,233
DGB Financial Group Inc.		1,204,487		11,750,051
Dongbu Insurance Co. Ltd.		354,242		23,624,511
Dongsuh Cos. Inc.		255,712		6,009,549
Doosan Bobcat Inc.		238,644		8,074,023
Doosan Heavy Industries & Construction Co. Ltd.		371,978		5,937,925
E-MART Inc.		147,341		29,269,585
GS Engineering & Construction Corp.^a,c		348,003		8,795,748
GS Holdings Corp.		365,371		22,876,191
GS Retail Co. Ltd.		194,178		6,948,459
Hana Financial Group Inc.		2,100,066		91,258,632
Hankook Tire Co. Ltd.		530,371		27,750,877
Hanmi Pharm Co. Ltd.^a,c		43,352		15,493,842
Hanmi Science Co. Ltd.^a,c		89,129		7,074,357
Hanon Systems		1,323,492		13,556,521
Hanssem Co. Ltd.^c		75,430		11,372,029
Hanwha Chemical Corp.		758,602		23,781,998
Hanwha Corp.		321,518		14,014,375
Hanwha Life Insurance Co. Ltd.		1,708,664		11,092,072
Hanwha Techwin Co. Ltd.^a,c		263,361		9,062,085
Hotel Shilla Co. Ltd.		226,040		12,408,546
Hyosung Corp.		149,498		21,014,041
Hyundai Department Store Co. Ltd.		106,004		9,081,222
Hyundai Development Co. Engineering & Construction		423,753		14,148,901
Hyundai Engineering & Construction Co. Ltd.		548,779		19,783,493
Hyundai Glovis Co. Ltd.		133,107		18,296,900
Hyundai Heavy Industries Co. Ltd.^a		221,106		29,118,695


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Hyundai Marine & Fire Insurance Co. Ltd.		440,141	$	18,033,446
Hyundai Mobis Co. Ltd.		483,341		101,160,408
Hyundai Motor Co.		1,094,973		136,434,646
Hyundai Robotics Co. Ltd.^a		68,910		27,072,659
Hyundai Steel Co.		564,801		28,901,222
Hyundai Wia Corp.^c		115,245		7,154,266
Industrial Bank of Korea		1,798,682		23,847,371
Kakao Corp.^c		239,622		26,138,264
Kangwon Land Inc.		832,047		25,457,273
KB Financial Group Inc.		2,800,574		137,594,714
KCC Corp.		41,111		14,437,705
KEPCO Plant Service & Engineering Co. Ltd.		161,085		6,535,685
Kia Motors Corp.		1,869,888		58,786,387
Korea Aerospace Industries Ltd. Class A		481,813		19,762,195
Korea Electric Power Corp.		1,822,167		69,325,084
Korea Gas Corp.^a		204,380		8,210,725
Korea Investment Holdings Co. Ltd.		279,301		16,273,568
Korea Zinc Co. Ltd.		59,881		27,402,089
Korean Air Lines Co. Ltd.^a		329,877		9,712,590
KT Corp.		170,925		4,729,390
KT&G Corp.		828,849		84,163,897
Kumho Petrochemical Co. Ltd.^c		129,161		9,026,150
LG Chem Ltd.		325,399		109,370,540
LG Corp.		674,313		50,232,611
LG Display Co. Ltd.		1,651,832		45,631,932
LG Electronics Inc.		750,300		54,229,736
LG Household & Health Care Ltd.^c		66,814		56,883,150
LG Innotek Co. Ltd.		100,982		16,522,862
Lotte Chemical Corp.		109,346		38,740,446
Lotte Chilsung Beverage Co. Ltd.^c		4,395		6,029,678
Lotte Confectionery Co. Ltd.^c		40,386		7,073,639
Lotte Shopping Co. Ltd.^c		88,613		20,196,471
Medy-Tox Inc.		29,776		15,027,955
Mirae Asset Daewoo Co. Ltd.		2,678,150		24,107,150
NAVER Corp.		198,598		132,974,007
NCsoft Corp.		124,653		42,505,391


Security	Shares		Value
Netmarble Games Corp.^a,b,c		118,622	$	16,253,192
NH Investment & Securities Co. Ltd.		996,279		12,192,843
OCI Co. Ltd.^c		118,617		10,340,592
Orion Corp./Republic of Korea^a		165,909		12,844,853
Ottogi Corp.^c		8,588		5,795,910
Pan Ocean Co. Ltd.^a		1,505,099		8,582,641
POSCO		522,787		159,256,238
Posco Daewoo Corp.		288,556		5,412,344
S-1 Corp.		131,455		10,457,178
S-Oil Corp.		319,970		35,612,128
Samsung Biologics Co. Ltd.^a,b,c		117,360		29,454,487
Samsung C&T Corp.		538,026		61,551,396
Samsung Card Co. Ltd.		235,932		7,762,573
Samsung Electro-Mechanics Co. Ltd.		398,238		35,670,484
Samsung Electronics Co. Ltd.		695,708		1,428,928,457
Samsung Fire & Marine Insurance Co. Ltd.		220,790		54,140,152
Samsung Heavy Industries Co. Ltd.^a,c		1,795,762		17,040,310
Samsung Life Insurance Co. Ltd.		496,367		50,842,842
Samsung SDI Co. Ltd.		390,748		68,093,280
Samsung SDS Co. Ltd.		246,333		36,591,679
Samsung Securities Co. Ltd.		457,067		14,815,359
Shinhan Financial Group Co. Ltd.		3,025,965		139,544,324
Shinsegae Inc.^c		53,011		9,073,362
SK Holdings Co. Ltd.		228,681		54,249,882
SK Hynix Inc.		4,135,264		251,577,785
SK Innovation Co. Ltd.		459,412		76,799,541
SK Networks Co. Ltd.		945,253		5,876,395
SK Telecom Co. Ltd.		143,096		32,169,950
Woori Bank		2,519,494		41,559,585
Yuhan Corp.		58,699		11,764,787

				4,939,093,708
TAIWAN — 11.83%
Acer Inc.^c		20,899,121		10,526,082
Advanced Semiconductor Engineering Inc.^c		46,706,220		56,334,087
Advantech Co. Ltd.^c		2,466,126		18,181,949


CONSOLIDATED SCHEDULES OF INVESTMENTS			37

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Asia Cement Corp.		16,555,077	$	15,003,193
Asia Pacific Telecom Co. Ltd.^a		14,391,000		4,935,447
Asustek Computer Inc.^c		4,975,968		41,220,451
AU Optronics Corp.^c		61,504,000		25,270,870
Catcher Technology Co. Ltd.^c		4,639,210		59,029,678
Cathay Financial Holding Co. Ltd.		57,895,644		94,481,609
Chailease Holding Co. Ltd.^c		7,274,932		19,815,084
Chang Hwa Commercial Bank Ltd.		37,063,940		20,264,257
Cheng Shin Rubber Industry Co. Ltd.^c		13,761,128		27,678,202
Chicony Electronics Co. Ltd.		3,805,267		9,557,614
China Airlines Ltd.		18,411,347		7,808,915
China Development Financial Holding Corp.		96,567,848		30,142,454
China Life Insurance Co. Ltd./Taiwan^c		24,742,822		27,301,633
China Steel Corp.^c		88,165,313		73,911,741
Chunghwa Telecom Co. Ltd.		26,937,410		93,721,729
Compal Electronics Inc.		29,900,908		21,500,040
CTBC Financial Holding Co. Ltd.		124,902,772		80,912,197
Delta Electronics Inc.^c		13,770,000		75,513,933
E.Sun Financial Holding Co. Ltd.^c		64,414,712		39,700,243
Eclat Textile Co. Ltd.^c		1,254,427		15,379,502
EVA Airways Corp.		14,870,364		7,735,999
Evergreen Marine Corp. Taiwan Ltd.^a		12,289,808		9,366,301
Far Eastern New Century Corp.		22,587,038		18,074,720
Far EasTone Telecommunications Co. Ltd.		11,302,000		27,413,314
Feng TAY Enterprise Co. Ltd.^c		2,337,529		11,076,134
First Financial Holding Co. Ltd.		68,722,639		44,632,484
Formosa Chemicals & Fibre Corp.		21,404,090		67,306,675


Security	Shares		Value
Formosa Petrochemical Corp.		9,265,000	$	32,695,666
Formosa Plastics Corp.		29,322,280		91,234,371
Formosa Taffeta Co. Ltd.		5,432,000		5,399,781
Foxconn Technology Co. Ltd.^c		6,531,637		20,733,981
Fubon Financial Holding Co. Ltd.		47,448,969		76,254,183
General Interface Solution Holding Ltd.		1,149,000		13,763,329
Giant Manufacturing Co. Ltd.^c		2,066,203		10,440,901
Globalwafers Co. Ltd.^c		1,477,000		11,721,445
Highwealth Construction Corp.^c		5,805,170		9,233,181
Hiwin Technologies Corp.^c		1,478,971		13,109,273
Hon Hai Precision Industry Co. Ltd.		110,648,592		430,803,193
Hotai Motor Co. Ltd.^c		1,838,000		21,651,115
HTC Corp.^a,c		4,653,708		10,593,782
Hua Nan Financial Holdings Co. Ltd.		54,907,305		30,656,685
Innolux Corp.^c		63,564,002		30,961,623
Inventec Corp.		17,983,281		14,271,499
Largan Precision Co. Ltd.^c		710,000		137,158,289
Lite-On Technology Corp.		15,168,246		22,441,505
MediaTek Inc.^c		10,661,338		95,559,559
Mega Financial Holding Co. Ltd.		77,451,162		62,235,020
Merida Industry Co. Ltd.^c		1,444,500		6,342,034
Micro-Star International Co. Ltd.^c		4,778,000		10,876,722
Nan Ya Plastics Corp.		33,723,160		85,148,772
Nanya Technology Corp.^c		4,876,000		10,453,534
Nien Made Enterprise Co. Ltd.		1,024,000		11,010,570
Novatek Microelectronics Corp.		4,084,000		15,900,792
Pegatron Corp.		13,672,414		43,039,177
Phison Electronics Corp.		1,046,535		14,113,779
Pou Chen Corp.		15,619,220		20,262,184
Powertech Technology Inc.		4,932,300		14,970,631
President Chain Store Corp.		4,061,000		33,977,352
Quanta Computer Inc.^c		19,144,000		43,579,734


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Realtek Semiconductor Corp.		3,212,637	$	12,454,970
Ruentex Development Co. Ltd.^a,c		6,968,430		6,823,192
Ruentex Industries Ltd.^c		3,961,598		6,373,160
Shin Kong Financial Holding Co. Ltd.		58,670,865		17,049,720
Siliconware Precision Industries Co. Ltd.		14,881,509		23,570,567
SinoPac Financial Holdings Co. Ltd.		72,651,021		23,351,168
Standard Foods Corp.^c		3,474,615		8,876,796
Synnex Technology International Corp.		9,953,834		11,115,153
TaiMed Biologics Inc.^a,c		1,214,000		8,729,183
Taishin Financial Holding Co. Ltd.^c		65,665,006		29,156,403
Taiwan Business Bank		29,620,632		8,185,694
Taiwan Cement Corp.^c		23,649,296		27,309,651
Taiwan Cooperative Financial Holding Co. Ltd.		56,904,605		29,980,557
Taiwan Fertilizer Co. Ltd.		5,013,000		6,685,883
Taiwan High Speed Rail Corp.		10,665,000		9,400,212
Taiwan Mobile Co. Ltd.		11,400,600		40,798,728
Taiwan Semiconductor Manufacturing Co. Ltd.		174,782,000		1,253,862,056
Teco Electric and Machinery Co. Ltd.		13,508,000		12,622,207
Transcend Information Inc.		1,307,000		3,897,743
Uni-President Enterprises Corp.		34,283,839		72,932,253
United Microelectronics Corp.^c		85,331,000		42,553,814
Vanguard International Semiconductor Corp.^c		6,410,000		11,575,765
Wistron Corp.^c		18,461,156		17,434,075
WPG Holdings Ltd.		10,817,532		14,086,915
Yuanta Financial Holding Co. Ltd.		70,852,635		30,755,476
Yulon Motor Co. Ltd.		5,889,000		5,073,528
Zhen Ding Technology Holding Ltd.^c		3,065,075		7,099,266

				4,246,144,334


Security	Shares		Value
THAILAND — 2.15%
Advanced Info Service PCL NVDR		7,373,600	$	41,636,802
Airports of Thailand PCL NVDR		30,541,700		50,128,675
Bangkok Bank PCL Foreign		1,780,400		10,053,456
Bangkok Dusit Medical Services PCL NVDR		27,604,800		17,375,104
Bangkok Expressway & Metro PCL NVDR		51,924,700		12,197,340
Banpu PCL NVDR		13,960,700		7,399,739
BEC World PCL NVDR		7,337,400		3,822,828
Berli Jucker PCL NVDR		8,333,600		12,360,482
BTS Group Holdings PCL NVDR		39,430,000		10,271,631
Bumrungrad Hospital PCL NVDR		2,572,200		16,887,204
Central Pattana PCL NVDR		9,829,900		21,314,645
Charoen Pokphand Foods PCL NVDR		20,578,300		16,887,778
CP ALL PCL NVDR		35,133,500		65,600,873
Delta Electronics Thailand PCL NVDR		3,554,100		9,526,123
Electricity Generating PCL NVDR^c		859,700		6,058,419
Energy Absolute PCL NVDR^c		7,760,900		8,823,189
Glow Energy PCL NVDR		3,821,600		9,869,062
Home Product Center PCL NVDR		28,280,414		8,516,914
Indorama Ventures PCL NVDR		10,387,980		12,200,910
IRPC PCL NVDR		72,662,400		13,020,367
Kasikornbank PCL Foreign		8,381,400		53,259,310
Kasikornbank PCL NVDR		4,024,300		24,360,316
KCE Electronics PCL NVDR		1,922,300		5,065,540
Krung Thai Bank PCL NVDR		25,107,600		14,139,802
Minor International PCL NVDR^c		15,391,120		18,424,846
PTT Exploration & Production PCL NVDR		9,913,539		26,123,616
PTT Global Chemical PCL NVDR		15,238,130		35,106,669


CONSOLIDATED SCHEDULES OF INVESTMENTS			39

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
PTT PCL NVDR		7,493,200	$	90,040,259
Robinson PCL NVDR		3,531,200		6,114,862
Siam Cement PCL (The) Foreign		2,224,100		33,490,438
Siam Cement PCL (The) NVDR		690,700		10,400,542
Siam Commercial Bank PCL (The) NVDR		12,547,400		56,870,462
Thai Oil PCL NVDR		5,957,500		16,909,934
Thai Union Group PCL NVDR		13,494,600		8,046,772
TMB Bank PCL NVDR		94,718,100		6,731,960
True Corp. PCL NVDR^a,c		69,940,201		11,795,366

				770,832,235
TURKEY — 1.21%
Akbank Turk AS		15,612,290		46,757,057
Anadolu Efes Biracilik ve Malt Sanayii AS		1,465,830		9,000,766
Arcelik AS		1,697,486		11,799,877
Aselsan Elektronik Sanayi ve TAS		1,422,774		11,126,529
BIM Birlesik Magazalar AS		1,517,599		33,626,254
Coca-Cola Icecek AS		536,727		6,240,090
Emlak Konut Gayrimenkul Yatirim Ortakligi AS^a		13,648,564		11,622,360
Enka Insaat ve Sanayi AS		1		1
Eregli Demir ve Celik Fabrikalari TAS		9,949,037		23,687,153
Ford Otomotiv Sanayi AS		505,323		6,958,061
Haci Omer Sabanci Holding AS		6,609,719		20,293,123
KOC Holding AS		5,397,519		28,202,703
Petkim Petrokimya Holding AS		4,908,565		8,871,543
TAV Havalimanlari Holding AS		1,178,097		7,240,798
Tofas Turk Otomobil Fabrikasi AS		897,590		8,215,332
Tupras Turkiye Petrol Rafinerileri AS		891,341		30,283,211
Turk Hava Yollari AO^a		3,990,695		11,281,280
Turk Telekomunikasyon AS^a		3,299,052		6,860,782
Turkcell Iletisim Hizmetleri AS		6,618,032		25,321,633


Security	Shares		Value
Turkiye Garanti Bankasi AS		16,449,765	$	51,171,012
Turkiye Halk Bankasi AS		4,457,121		19,132,100
Turkiye Is Bankasi Class C		11,276,304		24,462,938
Turkiye Sise ve Cam Fabrikalari AS		5,774,638		7,426,219
Turkiye Vakiflar Bankasi Tao Class D		5,404,389		11,270,395
Ulker Biskuvi Sanayi AS		1,100,654		6,579,919
Yapi ve Kredi Bankasi AS^a		6,099,494		8,585,985

				436,017,121
UNITED ARAB EMIRATES — 0.73%
Abu Dhabi Commercial Bank PJSC		14,773,115		29,360,415
Aldar Properties PJSC		23,098,197		14,526,377
DAMAC Properties Dubai Co. PJSC		10,405,225		11,444,586
DP World Ltd.		1,208,116		27,714,181
Dubai Islamic Bank PJSC		9,308,268		15,433,109
DXB Entertainments PJSC^a		22,248,190		4,754,793
Emaar Malls PJSC		14,104,870		9,446,511
Emaar Properties PJSC		25,234,746		58,396,270
Emirates Telecommunications Group Co. PJSC		12,512,758		61,318,680
First Abu Dhabi Bank PJSC		10,251,786		29,026,864

				261,421,786

TOTAL COMMON STOCKS (Cost: $28,419,477,527)				34,401,811,535

PREFERRED STOCKS — 3.78%

BRAZIL — 2.63%
Banco Bradesco SA, Preference Shares		21,659,833		231,161,211
Braskem SA Class A, Preference Shares		1,218,600		14,759,760
Centrais Eletricas Brasileiras SA Class B, Preference Shares		1,735,737		11,325,361
Cia. Brasileira de Distribuicao, Preference Shares		1,121,186		25,652,459
Cia. Energetica de Minas Gerais, Preference Shares		5,352,902		14,256,485


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Cia. Paranaense de Energia Class B, Preference Shares		736,175	$	6,724,299
Gerdau SA, Preference Shares		6,508,185		24,510,795
Itau Unibanco Holding SA, Preference Shares		22,917,653		293,895,437
Itausa-Investimentos Itau SA, Preference Shares		28,082,685		91,037,006
Lojas Americanas SA, Preference Shares		5,159,224		29,137,412
Petroleo Brasileiro SA, Preference Shares		27,844,327		120,794,884
Suzano Papel e Celulose SA Class A, Preference Shares		2,877,600		16,004,704
Telefonica Brasil SA, Preference Shares		3,166,967		49,158,470
Vale SA, Preference Shares		1,553,200		16,077,714

				944,495,997
CHILE — 0.11%
Embotelladora Andina SA Class B, Preference Shares		1,859,279		8,761,191
Sociedad Quimica y Minera de Chile SA Series B, Preference Shares		689,464		32,219,748

				40,980,939
COLOMBIA — 0.16%
Bancolombia SA, Preference Shares		3,330,127		37,996,624
Grupo Aval Acciones y Valores SA, Preference Shares		23,132,789		10,369,238
Grupo de Inversiones Suramericana SA, Preference Shares		643,823		8,797,705

				57,163,567
RUSSIA — 0.10%
Surgutneftegas OJSC, Preference Shares		49,692,100		24,531,597
Transneft PJSC, Preference Shares		4,048		12,403,644

				36,935,241


Security	Shares		Value
SOUTH KOREA — 0.78%
AmorePacific Corp., Preference Shares		64,550	$	9,817,600
Hyundai Motor Co., Preference Shares		165,041		14,109,571
Hyundai Motor Co. Series 2, Preference Shares		269,591		24,386,557
LG Chem Ltd., Preference Shares		54,847		12,792,445
LG Household & Health Care Ltd., Preference Shares		14,239		7,576,623
Samsung Electronics Co. Ltd., Preference Shares		125,383		209,601,769

				278,284,565

TOTAL PREFERRED STOCKS (Cost: $993,706,594)				1,357,860,309

RIGHTS — 0.00%

CHINA — 0.00%
Fosun International Ltd. (Expires 09/07/17)^a		11,689		—

				—

TOTAL RIGHTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 6.38%

MONEY MARKET FUNDS — 6.38%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^f,g,h		2,193,968,858		2,194,627,049

BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^f,g		94,337,685		94,337,685

				2,288,964,734

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,288,576,204)				2,288,964,734


CONSOLIDATED SCHEDULES OF INVESTMENTS			41

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017


	Value
TOTAL INVESTMENTS IN SECURITIES — 106.01%
(Cost: $31,701,760,325)ⁱ	$	38,048,636,578
Other Assets, Less Liabilities — (6.01)%		(2,156,746,533	)

NET ASSETS — 100.00%	$	35,891,890,045

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

^d	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	Affiliated issuer. See Schedule 1.

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

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

ⁱ

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $33,023,233,035. Net unrealized appreciation was $5,025,403,543, of which $9,268,485,519 represented gross unrealized appreciation on investments and $4,243,081,976 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		1,728,148,121		465,820,737	^b		—		2,193,968,858	$	2,194,627,049	$	44,253	$	388,530	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		—		94,337,685	^b		—		94,337,685		94,337,685		5,679		—		392,254

										$	2,288,964,734	$	49,932	$	388,530	$	392,254

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Consolidated Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ETF

August 31, 2017

Schedule 2 — Futures Contracts (Note 5)

Futures contracts outstanding as of August 31, 2017 were as follows:

Description

Number of
contracts

Expiration
date

Notional
amount
(000)

Value/
unrealized
appreciation
(depreciation)

Long Contracts:

MSCI Emerging Markets E-Mini

86,900

Sep 2017

94,391

7,082,911

Schedule 3 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	34,392,975,120	$	8,836,372		$	43	$	34,401,811,535
Preferred stocks		1,357,860,309		—			—		1,357,860,309
Rights		—		0	^a		—		0	^a
Money market funds		2,288,964,734		—			—		2,288,964,734

Total	$	38,039,800,163	$	8,836,372		$	43	$	38,048,636,578

Derivative financial instruments^b:
Assets:
Futures contracts	$	7,082,911	$	—		$	—	$	7,082,911

Total	$	7,082,911	$	—		$	—	$	7,082,911

Rounds to less than $1.

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

See notes to financial statements.


CONSOLIDATED SCHEDULES OF INVESTMENTS			43

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF			iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)

ASSETS
Investments in securities, at cost:
Unaffiliated	$	—		$	—		$	3,449,985,392
Affiliated (Note 2)		343,142,968			5,758,695			89,502,029

Total cost of investments in securities	$	343,142,968		$	5,758,695		$	3,539,487,421

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	—		$	—		$	4,024,975,784
Affiliated (Note 2)		394,295,899			6,564,456			89,516,952
Foreign currency, at value^b		96			—			3,010,414
Cash pledged to broker for forward currency contracts		1,530,000			—			—
Receivables:
Investment securities sold		789,624			18,229			409,538
Dividends and interest		26,031			3			11,189,875
Unrealized appreciation on forward currency contracts (Note 6)		1,043,121			14,535			—
Tax reclaims		—			—			18,453

Total Assets		397,684,771			6,597,223			4,129,121,016


LIABILITIES
Payables:
Investment securities purchased		—			—			3,682,842
Collateral for securities on loan (Note 1)		—			—			84,569,472
Capital shares sold		6,355			—			—
Due to custodian		1,333,060			—			—
Deferred foreign capital gains taxes (Note 1)		—			—			2,594,304
Unrealized depreciation on forward currency contracts (Note 6)		2,587,982			34,704			—
Investment advisory fees (Note 2)		—			166			846,303

Total Liabilities		3,927,397			34,870			91,692,921


NET ASSETS	$	393,757,374		$	6,562,353		$	4,037,428,095


Net assets consist of:
Paid-in capital	$	368,349,168		$	6,037,866		$	4,093,555,110
Undistributed net investment income		56,519			—			43,163,304
Accumulated net realized loss		(24,256,383	)		(261,105	)		(672,217,932	)
Net unrealized appreciation		49,608,070			785,592			572,927,613

NET ASSETS	$	393,757,374		$	6,562,353		$	4,037,428,095


Shares outstanding^c		15,400,000			250,000			69,600,000


Net asset value per share	$	25.57		$	26.25		$	58.01

^a	Securities on loan with values of $ —, $ — and $78,509,016, respectively. See Note 1.

^b	Cost of foreign currency: $96, $ — and $2,998,426, respectively.

^c	$0.001 par value, number of shares authorized: 250 million, 25 million and 500 million, respectively.

See notes to financial statements.


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Emerging Markets ETF (Consolidated)

ASSETS
Investments in securities, at cost:
Unaffiliated	$	29,413,184,121
Affiliated (Note 2)		2,288,576,204

Total cost of investments in securities	$	31,701,760,325

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	35,759,671,844
Affiliated (Note 2)		2,288,964,734
Foreign currency, at value^b		50,358,993
Cash pledged to broker for futures contracts		5,733,010
Cash		6,460,097
Receivables:
Investment securities sold		53,901,437
Due from custodian (Note 4)		732,939
Dividends and interest		63,224,277
Capital shares sold		24,264,098
Futures variation margin		63,881
Tax reclaims		126,510

Total Assets		38,253,501,820


LIABILITIES
Payables:
Investment securities purchased		136,364,279
Collateral for securities on loan (Note 1)		2,194,194,266
Deferred foreign capital gains taxes (Note 1)		10,991,439
Professional fees (Note 10)		3,231
Investment advisory fees (Note 2)		20,058,560

Total Liabilities		2,361,611,775


NET ASSETS	$	35,891,890,045


Net assets consist of:
Paid-in capital	$	41,589,517,225
Undistributed net investment income		233,610,496
Accumulated net realized loss		(12,275,599,399	)
Net unrealized appreciation		6,344,361,723

NET ASSETS	$	35,891,890,045


Shares outstanding^c		801,900,000


Net asset value per share	$	44.76

^a	Securities on loan with values of $2,108,619,972. See Note 1.

^b	Cost of foreign currency: $50,300,569.

^c	$0.001 par value, number of shares authorized: 2 billion.

See notes to financial statements.


FINANCIAL STATEMENTS			45

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF			iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	—		$	—		$	101,978,768
Dividends — affiliated (Note 2)		3,631,411			185,677			25,146
Miscellaneous income		96			—			—
Securities lending income — affiliated — net (Note 2)		376,944			—			2,745,178

		4,008,451			185,677			104,749,092
Less: Other foreign taxes (Note 1)		—			—			(664,213	)

Total investment income		4,008,451			185,677			104,084,879


EXPENSES
Investment advisory fees (Note 2)		2,010,274			50,233			27,058,256
Mauritius income taxes (Note 1)		—			—			70,734
Proxy fees		6,190			134			81,974
Commitment fees (Note 9)		—			—			20,562
Interest expense (Note 9)		—			—			20,536

Total expenses		2,016,464			50,367			27,252,062
Less investment advisory fees waived (Note 2)		(2,016,464	)		(48,435	)		(17,417,862	)

Net expenses		—			1,932			9,834,200

Net investment income		4,008,451			183,745			94,250,679


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		—			—			(181,681,232	)
Investments — affiliated (Note 2)		(2,516,506	)		(8,963	)		12,206
In-kind redemptions — unaffiliated		—			—			53,785,519
In-kind redemptions — affiliated (Note 2)		4,310,138			27,285			—
Foreign currency transactions		—			—			(794,630	)
Forward currency contracts		(14,276,353	)		(155,984	)		—
Realized gain distributions from affiliated funds		6			—			445

Net realized loss		(12,482,715	)		(137,662	)		(128,677,692	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated^b		—			—			391,320,129
Investments — affiliated (Note 2)		65,227,894			480,039			14,923
Forward currency contracts		(540,375	)		7,271			—
Translation of assets and liabilities in foreign currencies		—			—			89,103

Net change in unrealized appreciation/depreciation		64,687,519			487,310			391,424,155

Net realized and unrealized gain		52,204,804			349,648			262,746,463

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	56,213,255		$	533,393		$	356,997,142

^a	Net of foreign withholding tax of $ —, $ — and $13,093,629, respectively.

^b	Net of deferred foreign capital gains taxes of $ —, $ — and $2,122,868, respectively.

See notes to financial statements.


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Emerging Markets ETF (Consolidated)

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	772,602,990
Dividends — affiliated (Note 2)		392,254
Interest — unaffiliated		15,881
Miscellaneous income		136
Securities lending income — affiliated — net (Note 2)^b		18,238,122
Foreign withholding tax claims (Note 10)		1,122,121

		792,371,504
Less: Other foreign taxes (Note 1)		(2,624,499	)

Total investment income		789,747,005


EXPENSES
Investment advisory fees (Note 2)		207,622,093
Mauritius income taxes (Note 1)		854,408
Proxy fees		663,245
Commitment fees (Note 9)		238,896
Interest expense (Note 9)		65,570
Professional fees (Note 10)		116,605

Total expenses		209,560,817

Net investment income		580,186,188


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(818,440,258	)
Investments — affiliated (Note 2)		44,253
In-kind redemptions — unaffiliated		238,286,576
Futures contracts		35,180,144
Foreign currency transactions		(996,900	)
Realized gain distributions from affiliated funds		5,679

Net realized loss		(545,920,506	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated^c		6,416,650,625
Investments — affiliated (Note 2)		388,530
Futures contracts		(2,104,720	)
Translation of assets and liabilities in foreign currencies		484,662

Net change in unrealized appreciation/depreciation		6,415,419,097

Net realized and unrealized gain		5,869,498,591

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	6,449,684,779

^a	Net of foreign withholding tax of $96,548,344.

^b	Net of securities lending income tax paid of $760,133.

^c	Net of deferred foreign capital gains taxes of $9,808,442.

See notes to financial statements.


FINANCIAL STATEMENTS			47

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Currency Hedged MSCI Emerging Markets ETF						iShares Edge MSCI Min Vol EM Currency Hedged ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Period from October 29, 2015^a to August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	4,008,451		$	4,831,535		$	183,745		$	105,245
Net realized loss		(12,482,715	)		(8,044,500	)		(137,662	)		(106,194	)
Net change in unrealized appreciation/depreciation		64,687,519			15,786,871			487,310			298,282

Net increase in net assets resulting from operations		56,213,255			12,573,906			533,393			297,333


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(3,977,750	)		(4,805,723	)		(184,054	)		(105,245	)
From net realized gain		—			(7,816,489	)		—			—
Return of capital		—			—			—			(355	)

Total distributions to shareholders		(3,977,750	)		(12,622,212	)		(184,054	)		(105,600	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		209,783,628			60,096,742			3,586,153			5,985,059
Cost of shares redeemed		(48,515,551	)		(91,659,549	)		(3,549,931	)		—

Net increase (decrease) in net assets from capital share transactions		161,268,077			(31,562,807	)		36,222			5,985,059

INCREASE (DECREASE) IN NET ASSETS		213,503,582			(31,611,113	)		385,561			6,176,792

NET ASSETS
Beginning of period		180,253,792			211,864,905			6,176,792			—

End of period	$	393,757,374		$	180,253,792		$	6,562,353		$	6,176,792

Undistributed net investment income included in net assets at end of period	$	56,519		$	25,812		$	—		$	—


SHARES ISSUED AND REDEEMED
Shares sold		9,300,000			2,850,000			150,000			250,000
Shares redeemed		(2,200,000	)		(4,450,000	)		(150,000	)		—

Net increase (decrease) in shares outstanding		7,100,000			(1,600,000	)		—			250,000

^a	Commencement of operations.

See notes to financial statements.


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.



	iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)						iShares MSCI Emerging Markets ETF (Consolidated)
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	94,250,679		$	97,409,176		$	580,186,188		$	490,598,902
Net realized loss		(128,677,692	)		(285,334,960	)		(545,920,506	)		(2,033,422,033	)
Net change in unrealized appreciation/depreciation		391,424,155			474,631,130			6,415,419,097			3,716,580,146

Net increase in net assets resulting from operations		356,997,142			286,705,346			6,449,684,779			2,173,757,015


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(84,793,898	)		(81,549,891	)		(442,844,825	)		(501,097,523	)

Total distributions to shareholders		(84,793,898	)		(81,549,891	)		(442,844,825	)		(501,097,523	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		93,359,655			1,711,528,424			2,729,984,147			14,107,740,227
Cost of shares redeemed		(707,175,671	)		—			(3,711,402,633	)		(5,914,796,140	)

Net increase (decrease) in net assets from capital share transactions		(613,816,016	)		1,711,528,424			(981,418,486	)		8,192,944,087

INCREASE (DECREASE) IN NET ASSETS		(341,612,772	)		1,916,683,879			5,025,421,468			9,865,603,579

NET ASSETS
Beginning of year		4,379,040,867			2,462,356,988			30,866,468,577			21,000,864,998

End of year	$	4,037,428,095		$	4,379,040,867		$	35,891,890,045		$	30,866,468,577

Undistributed net investment income included in net assets at end of year	$	43,163,304		$	33,247,567		$	233,610,496		$	83,860,297


SHARES ISSUED AND REDEEMED
Shares sold		1,700,000			33,700,000			65,700,000			405,900,000
Shares redeemed		(14,100,000	)		—			(103,950,000	)		(187,200,000	)

Net increase (decrease) in shares outstanding		(12,400,000	)		33,700,000			(38,250,000	)		218,700,000

See notes to financial statements.


FINANCIAL STATEMENTS			49

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares Currency Hedged MSCI Emerging Markets ETF


	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Period from Sept. 23, 2014^a to Aug. 31, 2015
Net asset value, beginning of period	$	21.72		$	21.40		$	24.44

Income from investment operations:
Net investment income^b		0.36			0.50			0.41
Net realized and unrealized gain (loss)^c		3.83			1.08			(2.80	)

Total from investment operations		4.19			1.58			(2.39	)

Less distributions from:
Net investment income		(0.34	)		(0.48	)		(0.65	)
Net realized gain		—			(0.78	)		—

Total distributions		(0.34	)		(1.26	)		(0.65	)

Net asset value, end of period	$	25.57		$	21.72		$	21.40


Total return		19.55	%		7.84	%		(10.01	)%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	393,757		$	180,254		$	211,865
Ratio of expenses to average net assets^e,f		0.00	%		0.00	%		0.02	%
Ratio of expenses to average net assets prior to waived fees^e,f		0.78	%		0.78	%		0.78	%
Ratio of net investment income to average net assets^e		1.56	%		2.42	%		1.82	%
Portfolio turnover rate^g,h		4	%		11	%		7	%^d

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

^f	The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

^h	Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 53 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares Edge MSCI Min Vol EM Currency Hedged ETF


	Year ended Aug. 31, 2017			Period from Oct. 29, 2015^a to Aug. 31, 2016
Net asset value, beginning of period	$	24.71		$	24.50

Income from investment operations:
Net investment income^b		0.70			0.58
Net realized and unrealized gain^c		1.37			0.23

Total from investment operations		2.07			0.81

Less distributions from:
Net investment income		(0.53	)		(0.60	)
Return of capital		—			(0.00	)^d

Total distributions		(0.53	)		(0.60	)

Net asset value, end of period	$	26.25		$	24.71


Total return		8.61	%		3.45	%^e


Ratios/Supplemental data:
Net assets, end of period (000s)	$	6,562		$	6,177
Ratio of expenses to average net assets^f,g		0.03	%		0.03	%
Ratio of expenses to average net assets prior to waived fees^f,g		0.78	%		0.78	%
Ratio of net investment income to average net assets^f		2.85	%		2.88	%
Portfolio turnover rate^h,i		8	%		8	%^e

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Rounds to less than 0.01%.

^e	Not annualized.

^f	Annualized for periods of less than one year.

^g	The Fund indirectly bears its proportionate share of fees and expenses incurred by the underlying fund in which the Fund is invested. This ratio does not include these indirect fees and expenses.

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

ⁱ	Portfolio turnover rates exclude the portfolio activity of the underlying fund in which the Fund is invested. See page 52 for the portfolio turnover rates of the underlying fund.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			51

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



		iShares Edge MSCI Min Vol Emerging Markets ETF (Consolidated)


	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	53.40		$	50.98		$	62.47		$	55.56		$	55.32

Income from investment operations:
Net investment income^a		1.28			1.57			1.58			1.51			1.85
Net realized and unrealized gain (loss)^b		4.48			2.13			(11.65	)		6.94			(0.60	)

Total from investment operations		5.76			3.70			(10.07	)		8.45			1.25

Less distributions from:
Net investment income		(1.15	)		(1.28	)		(1.42	)		(1.54	)		(1.01	)

Total distributions		(1.15	)		(1.28	)		(1.42	)		(1.54	)		(1.01	)

Net asset value, end of year	$	58.01		$	53.40		$	50.98		$	62.47		$	55.56


Total return		11.11	%		7.48	%		(16.32	)%		15.44	%		2.22	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	4,037,428		$	4,379,041		$	2,462,357		$	2,080,363		$	2,455,727
Ratio of expenses to average net assets		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Ratio of expenses to average net assets prior to waived fees		0.69	%		0.71	%		0.69	%		0.67	%		0.67	%
Ratio of net investment income to average net assets		2.40	%		3.12	%		2.71	%		2.58	%		3.13	%
Portfolio turnover rate^c		23	%		23	%		28	%		34	%		23	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 22%, 23%, 24%, 26% and 23%, respectively. See Note 4.

See notes to financial statements.


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI Emerging Markets ETF (Consolidated)
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	36.74		$	33.79		$	45.11		$	38.44		$	39.22

Income from investment operations:
Net investment income^a		0.75			0.72			0.73			0.83			0.75
Net realized and unrealized gain (loss)^b		7.86			3.00			(11.21	)		6.55			(0.76	)

Total from investment operations		8.61			3.72			(10.48	)		7.38			(0.01	)

Less distributions from:
Net investment income		(0.59	)		(0.77	)		(0.84	)		(0.71	)		(0.77	)

Total distributions		(0.59	)		(0.77	)		(0.84	)		(0.71	)		(0.77	)

Net asset value, end of year	$	44.76		$	36.74		$	33.79		$	45.11		$	38.44


Total return		23.80	%		11.28	%		(23.46	)%		19.34	%		(0.08	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	35,891,890		$	30,866,469		$	21,000,865		$	44,336,401		$	34,804,192
Ratio of expenses to average net assets		0.69	%		0.72	%		0.69	%		0.67	%		0.67	%
Ratio of expenses to average net assets prior to waived fees		0.69	%		0.72	%		0.69	%		0.68	%		0.67	%
Ratio of expenses to average net assets excluding professional fees for foreign withholding tax claims (Note 10)		0.69	%		n/a			n/a			n/a			n/a
Ratio of net investment income to average net assets		1.92	%		2.15	%		1.79	%		1.98	%		1.78	%
Portfolio turnover rate^c		9	%		23	%		10	%		22	%		24	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units solely for cash in U.S. dollars. Excluding such transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013, were 4%, 10%, 7%, 7%, and 9%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			53

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF	Diversification Classification
Currency Hedged MSCI Emerging Markets		Non-diversified
Edge MSCI Min Vol EM Currency Hedged		Non-diversified
Edge MSCI Min Vol Emerging Markets		Diversified
MSCI Emerging Markets		Diversified

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index. The investment adviser uses a “passive” or index approach to try to achieve each Fund’s investment objective. Currently each currency hedged fund seeks to achieve its investment objective by investing a substantial portion of its assets in an iShares fund (an “underlying fund”). The financial statements and schedules of investments for the underlying funds are included in this report and should be read in conjunction with the financial statements of the currency hedged funds.

Each of the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF carries out its investment strategies associated with investment in Indian securities by investing in a wholly-owned subsidiary in the Republic of Mauritius (each, a “Subsidiary”), which in turn invests in Indian securities included in the underlying index. The investment adviser of each Fund also serves as the investment adviser to each Subsidiary. Through this investment structure, each Fund expects to obtain certain benefits under a current tax treaty between Mauritius and India. The accompanying consolidated financial statements for each Fund include the accounts of its Subsidiary. Intercompany accounts and transactions, if any, have been eliminated.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

•

Exchange-traded funds and closed-end funds traded on a recognized securities exchange are valued at that day’s last reported trade price or the official closing price, as applicable, on the exchange where the fund is primarily traded. Funds traded on a recognized exchange for which there were no sales on that day are valued at the last traded price.

•

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

•

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

•

Forward currency contracts are valued based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated forward exchange rates are used for contracts with interim settlement dates for which quotations are not available.

•

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


NOTES TO FINANCIAL STATEMENTS			55

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

However, the iShares Currency Hedged MSCI Emerging Markets ETF and iShares Edge MSCI Min Vol EM Currency Hedged ETF elected to treat realized gains (losses) from certain foreign currency contracts as capital gain (loss) for U.S. federal income tax purposes.

FOREIGN TAXES

Each of the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF conducts its investment activities in India through its Subsidiary and expects to obtain benefits under the Double Tax Avoidance Agreement (“DTAA”) between India and Mauritius. In order to be eligible to claim benefits under the DTAA, each Subsidiary must, on an annual basis, satisfy certain tests and conditions, including the establishment and maintenance of valid tax residence in Mauritius and related requirements. Each Fund has obtained a current tax residence certificate issued by the Mauritian Revenue Authorities.

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			57

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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.


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Edge MSCI Min Vol Emerging Markets
Citigroup Global Markets Inc.	$	12,559,191	$	12,559,191	$	—
Credit Suisse Securities (USA) LLC		8,853,192		8,853,192		—
Deutsche Bank AG		104,604		104,604		—
Deutsche Bank Securities Inc.		2,012,427		2,012,427		—
Goldman Sachs & Co.		10,263,237		10,263,237		—
HSBC Bank PLC		2,201,386		2,201,386		—
Jefferies LLC		279,054		279,054		—
Morgan Stanley & Co. International PLC		15,350,387		15,350,387		—
Morgan Stanley & Co. LLC		26,441,886		26,441,886		—
State Street Bank & Trust Company		58,877		58,877		—
UBS AG		384,775		384,775		—

	$	78,509,016	$	78,509,016	$	—

MSCI Emerging Markets
Barclays Capital Inc.	$	23,738	$	23,738	$	—
BMO Capital Markets		8,947,654		8,947,654		—
BNP Paribas New York Branch		105,443,024		105,443,024		—
Citigroup Global Markets Inc.		69,243,091		69,243,091		—
Citigroup Global Markets Ltd.		10,827,605		10,827,605		—
Credit Suisse Securities (Europe) Ltd.		75,436,299		75,436,299		—
Credit Suisse Securities (USA) LLC		33,924,615		33,924,615		—
Deutsche Bank AG		2,016,081		2,016,081		—
Deutsche Bank Securities Inc.		43,454,673		43,454,673		—
Goldman Sachs & Co.		558,941,858		558,941,858		—
Goldman Sachs International		19,133,419		19,133,419		—
HSBC Bank PLC		2,051,771		2,051,771		—
Jefferies LLC		37,319		37,319		—
JPMorgan Securities LLC		566,936,659		566,936,659		—
JPMorgan Securities PLC		34,528,479		34,528,479		—
Macquarie Bank Limited		885,801		885,801		—
Merrill Lynch, Pierce, Fenner & Smith		118,867,043		118,867,043		—
Morgan Stanley & Co. International PLC		105,350,203		105,350,203		—
Morgan Stanley & Co. LLC		223,781,551		223,781,551		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		12,565,813		12,565,813		—
National Financial Services LLC		46,053,667		46,053,667		—
State Street Bank & Trust Company		42,036,717		42,036,717		—
UBS AG		8,665,943		8,665,943		—
UBS Ltd.		14,954,353		14,954,353		—
UBS Securities LLC		4,512,596		4,512,596		—

	$	2,108,619,972	$	2,108,619,972	$	—


NOTES TO FINANCIAL STATEMENTS			59

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

For its investment advisory services to the iShares Currency Hedged MSCI Emerging Markets ETF, BFA is entitled to an annual investment advisory fee of 0.78%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee 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.

For its investment advisory services to the iShares Edge MSCI Min Vol EM Currency Hedged ETF, BFA is entitled to an annual investment advisory fee of 0.78%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. In addition, the Fund may incur acquired fund fees and expenses. BFA has contractually agreed reduce the investment advisory fee for the Fund through December 31, 2020 so that the investment advisory fee is equal to the acquired fund fees and expenses attributable to the Fund’s investment in the iShares Edge MSCI MinVol Emerging Markets ETF (“EEMV”), after taking into account any fee waivers by EEMV, plus 0.03%.

For its investment advisory services to each of the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF, BFA is entitled to an annual investment advisory fee, 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:


Investment Advisory Fee			Aggregate Average Daily Net Assets
	0.75	%	First $14 billion
	0.68		Over $14 billion, up to and including $28 billion
	0.61		Over $28 billion, up to and including $42 billion
	0.54		Over $42 billion, up to and including $56 billion
	0.47		Over $56 billion, up to and including $70 billion
	0.41		Over $70 billion, up to and including $84 billion
	0.35		Over $84 billion

The total of the investment advisory fee and any other fund expenses are a fund’s total annual operating expenses. For the iShares Edge MSCI Min Vol Emerging Markets ETF, BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2023 in order to limit total annual operating expenses to 0.25% of average daily net assets.


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Currency Hedged MSCI Emerging Markets	$	121,507
Edge MSCI Min Vol Emerging Markets		637,057
MSCI Emerging Markets		4,820,576

For the year ended August 31, 2017, BTC, the Funds’ securities lending agent, has agreed to voluntarily reimburse the iShares MSCI Emerging Markets ETF in the amount of $137,396, related to the foreign tax on the securities lending income. Such reimbursement is included in “Securities lending income – affiliated – net” in the Fund’s consolidated statement of operations.

For the year ended August 31, 2017, 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	$	47,525,034	$	24,590,518
MSCI Emerging Markets		112,122,910		49,073,113


NOTES TO FINANCIAL STATEMENTS			61

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
Currency Hedged MSCI Emerging Markets	$	11,046,895	$	24,835,252
Edge MSCI Min Vol EM Currency Hedged		492,369		624,218
Edge MSCI Min Vol Emerging Markets		915,304,801		1,232,237,332
MSCI Emerging Markets		2,860,426,712		3,055,379,044

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Currency Hedged MSCI Emerging Markets	$	209,617,702	$	48,592,573
Edge MSCI Min Vol EM Currency Hedged		3,595,035		3,561,578
Edge MSCI Min Vol Emerging Markets		42,098,039		322,840,040
MSCI Emerging Markets		1,256,372,161		1,808,980,515

4.	*CAPITAL SHARE TRANSACTIONS*


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

5.	*FUTURES CONTRACTS*

The following table shows the value of futures contracts held by the iShares MSCI Emerging Markets ETF as of August 31, 2017 and the related locations in the consolidated statements of assets and liabilities, presented by risk exposure category:


Assets
Equity contracts:
Variation margin / Net assets consist of – net unrealized appreciation (depreciation)	$	7,082,911	^a

Represents cumulative appreciation of futures contracts as reported in the consolidated schedule of investments. Only current day’s variation margin is reported separately within the consolidated statement of assets and liabilities.

The following table shows the realized and unrealized gains (losses) on futures contracts held by the iShares MSCI Emerging Markets ETF during the year ended August 31, 2017 and the related locations in the consolidated statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)		Net Change in Unrealized Appreciation/Depreciation
Equity contracts:
Futures contracts	$	35,180,144	$	(2,104,720	)

The following table shows the average quarter-end balances of open futures contracts for the iShares MSCI Emerging Markets ETF for the year ended August 31, 2017:


Average value of contracts purchased	$	99,315,175


NOTES TO FINANCIAL STATEMENTS			63

Notes to Financial Statements (Continued)

iSHARES^®, INC.

6.	*FORWARD CURRENCY CONTRACTS*

Each currency-hedged fund uses forward currency contracts to hedge the currency exposure of non-U.S. dollar-denominated securities held by the Fund or its underlying fund. A forward currency contract is an obligation to purchase or sell a currency against another currency at a specified future date at an agreed upon price and quantity. Forward currency contracts are traded over-the-counter (“OTC”) and not on an organized exchange.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation or depreciation. When the contract is closed, a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed is recorded. Non-deliverable forward currency contracts (“NDFs”) are settled with the counterparty in cash without the delivery of foreign currency. Losses may arise if there are unfavorable movements in the value of a foreign currency relative to the U.S. dollar or if the counterparties do not meet the terms of the agreement. A fund’s use of forward currency contracts also involves the risks of imperfect correlation between the value of its currency positions and its other investments or the fund failing to close out its position due to an illiquid market.

The following table shows the value of forward currency contracts held as of August 31, 2017 and the related locations in the statements of assets and liabilities, presented by risk exposure category:


Assets
	iShares Currency Hedged MSCI Emerging Markets ETF		iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
Unrealized appreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	1,043,121	$	14,535


Liabilities
	iShares Currency Hedged MSCI Emerging Markets ETF		iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
Unrealized depreciation on forward currency contracts/Net assets consist of – net unrealized appreciation (depreciation)	$	2,587,982	$	34,704


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table shows the realized and unrealized gains (losses) on forward currency contracts held during the year ended August 31, 2017 and the related locations in the statements of operations, presented by risk exposure category:


	Net Realized Gain (Loss)
	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
	$	(14,276,353	)	$	(155,984	)


	Net Change in Unrealized Appreciation/Depreciation
	iShares Currency Hedged MSCI Emerging Markets ETF			iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts:
	$	(540,375	)	$	7,271

The following table shows the average quarter-end balances of outstanding forward currency contracts for the year ended August 31, 2017:


	iShares Currency Hedged MSCI Emerging Markets ETF		iShares Edge MSCI Min Vol EM Currency Hedged ETF
Average amounts purchased in U.S. dollars	$	257,169,818	$	5,983,784
Average amounts sold in U.S. dollars	$	490,450,031	$	11,568,404

The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Funds. In order to better define their contractual rights and to secure rights that will help the Funds to mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Funds and a counterparty that governs OTC derivatives and foreign exchange contracts and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy or insolvency.

The collateral requirements under an ISDA Master Agreement are typically calculated by netting the mark-to-market amount for each transaction under such agreement, and comparing that amount to the value of any collateral currently pledged by the parties. Except for NDFs, the forward currency contracts held by the Funds generally do not require collateral. Cash collateral pledged to the counterparty, if any, is presented as “Cash pledged to broker for forward currency contacts” on the statement of assets and liabilities. Cash received as collateral from the counterparty may be reinvested in money market funds, including those


NOTES TO FINANCIAL STATEMENTS			65

Notes to Financial Statements (Continued)

iSHARES^®, INC.

managed by the Funds’ investment adviser, or its affiliates. Such collateral, if any, is presented in the statement of assets and liabilities as “Investments in securities – affiliated” and “Payable due to broker for collateral on forwards.” To the extent amounts due to the Funds from the counterparty are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset financial assets and financial liabilities that are subject to netting arrangements in the statements of assets and liabilities.

The following table presents the exposure of the open forward currency contracts that are subject to potential offset in the statements of assets and liabilities as of August 31, 2017:


	Derivative Assets Subject to Offsetting		Derivatives Available for Offset			Cash Collateral Received		Net Amount of Derivative Assets
iShares Currency Hedged MSCI Emerging Markets ETF
Forward currency contracts	$	1,043,121	$	(1,043,121	)	$	—	$	—

iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts	$	14,535	$	(12,055	)	$	—	$	2,480


	Derivative Liabilities Subject to Offsetting		Derivatives Available for Offset			Cash Collateral Pledged			Net Amount of Derivative Liabilities
iShares Currency Hedged MSCI Emerging Markets ETF
Forward currency contracts	$	2,587,982	$	(1,043,121	)	$	(1,530,000	)	$	14,861

iShares Edge MSCI Min Vol EM Currency Hedged ETF
Forward currency contracts	$	34,704	$	(12,055	)	$	—		$	22,649

7.	*PRINCIPAL RISKS*


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

MARKET RISK

CREDIT RISK


NOTES TO FINANCIAL STATEMENTS			67

Notes to Financial Statements (Continued)

iSHARES^®, INC.

8.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, the expiration of capital loss carryforwards, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
Currency Hedged MSCI Emerging Markets	$	922,456		$	6	$	(922,462	)
Edge MSCI Min Vol EM Currency Hedged		16,940			309		(17,249	)
Edge MSCI Min Vol Emerging Markets		48,953,580			458,956		(49,412,536	)
iShares MSCI Emerging Markets		(86,669,393	)		12,408,836		74,260,557

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
Currency Hedged MSCI Emerging Markets
Ordinary income	$	3,977,750	$	8,407,790
Long-term capital gain		—		4,214,422

	$	3,977,750	$	12,622,212

Edge MSCI Min Vol EM Currency Hedged
Ordinary income	$	184,054	$	105,245
Return of capital		—		355

	$	184,054	$	105,600

Edge MSCI Min Vol Emerging Markets
Ordinary income	$	84,793,898	$	81,549,891

MSCI Emerging Markets
Ordinary income	$	442,844,825	$	501,097,523


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

As of August 31, 2017, 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	$	56,519	$	(20,285,024	)	$	45,636,711	$	25,408,206
Edge MSCI Min Vol EM Currency Hedged		—		(264,276	)		788,763		524,487
Edge MSCI Min Vol Emerging Markets		51,873,455		(626,690,250	)		518,689,780		(56,127,015	)
MSCI Emerging Markets		334,407,079		(11,047,796,595	)		5,015,762,336		(5,697,627,180	)

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

As of August 31, 2017, 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 2018		Expiring 2019		Total
Currency Hedged MSCI Emerging Markets	$	20,285,024	$	—	$	—	$	20,285,024
Edge MSCI Min Vol EM Currency Hedged		264,276		—		—		264,276
Edge MSCI Min Vol Emerging Markets		626,690,250		—		—		626,690,250
MSCI Emerging Markets		8,973,262,771		1,201,366,175		873,167,649		11,047,796,595

Must be utilized prior to losses subject to expiration.

9.	*LINE OF CREDIT*

The iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF, along with certain other iShares funds, are parties to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.


NOTES TO FINANCIAL STATEMENTS			69

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2017, the maximum amounts borrowed, the average borrowings and the weighted average interest rates, if any, under the credit agreement were as follows:


iShares ETF	Maximum Amount Borrowed		Average Borrowings		Weighted Average Interest Rates
Edge MSCI Min Vol Emerging Markets	$	74,000,000	$	1,433,973		1.41	%
MSCI Emerging Markets		90,000,000		3,534,247		1.83	%

10.

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 on recoverable withholding taxes. 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.

11.

LEGAL PROCEEDINGS

12.

SUBSEQUENT EVENTS


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares Currency Hedged MSCI Emerging Markets ETF,

iShares Edge MSCI Min Vol EM Currency Hedged ETF, iShares Edge MSCI Min Vol Emerging Markets ETF

and iShares MSCI Emerging Markets ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Currency Hedged MSCI Emerging Markets ETF, iShares Edge MSCI Min Vol EM Currency Hedged ETF, iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			71

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
Currency Hedged MSCI Emerging Markets	$	2,519,548
Edge MSCI Min Vol EM Currency Hedged		74,773
Edge MSCI Min Vol Emerging Markets		47,150,658
MSCI Emerging Markets		506,030,480

For the fiscal year ended August 31, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Edge MSCI Min Vol Emerging Markets	$	115,072,428	$	13,828,607
MSCI Emerging Markets		881,023,403		99,262,661	^a

Amount has been reduced by the foreign withholding tax reclaims recovered from Poland in the current year. See Note 10.

For the fiscal year ended August 31, 2017, the following Funds intend to pass through to their shareholders foreign source income earned and foreign taxes paid by the underlying funds:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Currency Hedged MSCI Emerging Markets	$	4,462,092	$	870,450
Edge MSCI Min Vol EM Currency Hedged		205,848		25,131


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.

I. iShares Currency Hedged MSCI Emerging Markets ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board further noted that the Fund’s pricing reflects the use of currency hedging strategies, as compared to certain of the funds in the Peer Group, which are not currency hedged.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			73

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that to the extent that the Fund invests in an underlying iShares fund that has breakpoints, the shareholders of the Fund would benefit from such breakpoints in the underlying iShares fund’s investment advisory fee rate as the assets of the underlying iShares fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board further noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

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


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

value of research or other services that may be provided to BFA (including its affiliates) in selecting brokers for portfolio transactions for the Fund. The Board further noted that any portfolio transactions on behalf of the Fund placed through a BFA affiliate or purchased from an underwriting syndicate in which a BFA affiliate participates, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

II. iShares Edge MSCI Min Vol EM Currency Hedged ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


76		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			77

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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, including supplemental information that was responsive to requests of the 15(c) Committee. The Board noted that the 15(c) Committee had focused on the methodology and profitability presentation during its meetings. The Board discussed the sources of direct and ancillary revenue with management, including the revenues to BTC, a BFA 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 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 during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund


78		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares Edge MSCI Min Vol Emerging Markets ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			79

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.


80		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


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Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

IV. iShares MSCI Emerging Markets ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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


82		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

the detailed responses and other information provided by BFA. The Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			83

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

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

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund already provided for breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund, on an aggregated basis with the assets of certain other iShares funds, increase. The Board noted that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding new or revised breakpoints in the future.


84		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			85

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Currency Hedged MSCI Emerging Market	$	0.329356	$	—	$	0.011010	$	0.340366		97	%		—	%		3	%		100	%
Edge MSCI Min Vol EM Currency Hedged		0.531611		—		—		0.531611		100			—			—			100
Edge MSCI Min Vol Emerging Markets ETF		1.152268		—		—		1.152268		100			—			—			100
MSCI Emerging Markets		0.567076		—		0.020843		0.587919		96			—			4			100

Premium/Discount Information


86		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares Currency Hedged MSCI Emerging Markets ETF

Period Covered: September 23, 2014 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 0.5% and Less than 1.0%		5		0.72	%
Greater than 0.0% and Less than 0.5%		432		61.80
At NAV		16		2.29
Less than 0.0% and Greater than –0.5%		245		35.05
Less than –0.5% and Greater than –1.0%		1		0.14

		699		100.00	%

iShares Edge MSCI Min Vol EM Currency Hedged ETF

Period Covered: October 29, 2015 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 1.5%		3		0.71	%
Greater than 1.0% and Less than 1.5%		10		2.38
Greater than 0.5% and Less than 1.0%		59		14.01
Greater than 0.0% and Less than 0.5%		131		31.12
At NAV		14		3.33
Less than 0.0% and Greater than –0.5%		157		37.28
Less than –0.5% and Greater than –1.0%		40		9.50
Less than –1.0% and Greater than –1.5%		2		0.48
Less than –1.5%		5		1.19

		421		100.00	%


SUPPLEMENTAL INFORMATION			87

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares Edge MSCI Min Vol Emerging Markets ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		2		0.14
Greater than 2.0% and Less than 2.5%		1		0.07
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%		275		19.88
Greater than 0.0% and Less than 0.5%		463		33.49
At NAV		14		1.01
Less than 0.0% and Greater than –0.5%		350		25.32
Less than –0.5% and Greater than –1.0%		132		9.54
Less than –1.0% and Greater than –1.5%		39		2.82
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%		1		0.07

		1,383		100.00	%

iShares MSCI Emerging Markets ETF

Period Covered: January 1, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		1		0.07
Greater than 2.0% and Less than 2.5%		5		0.36
Greater than 1.5% and Less than 2.0%		22		1.59
Greater than 1.0% and Less than 1.5%		63		4.56
Greater than 0.5% and Less than 1.0%		226		16.34
Greater than 0.0% and Less than 0.5%		442		31.97
At NAV		7		0.51
Less than 0.0% and Greater than –0.5%		328		23.71
Less than –0.5% and Greater than –1.0%		191		13.81
Less than –1.0% and Greater than –1.5%		63		4.56
Less than –1.5% and Greater than –2.0%		23		1.66
Less than –2.0% and Greater than –2.5%		10		0.72
Less than –2.5% and Greater than –3.0%		1		0.07

		1,383		100.00	%


88		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares Edge MSCI Min Vol Emerging Markets ETF and iShares MSCI Emerging Markets ETF (each a “Fund”, collectively the “Funds”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to 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 each Fund is included in the aggregate figures disclosed.

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 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.


SUPPLEMENTAL INFORMATION			89

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares Edge MSCI Min Vol Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2016 was USD 385.71 thousand. This figure is comprised of fixed remuneration of USD 151.73 thousand and variable remuneration of USD 233.98 thousand. There were a total of 325 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, 2016, to its senior management was USD 53.34 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 12.85 thousand.

The amount of the total remuneration awarded by BFA to its staff which has been attributed to the iShares MSCI Emerging Markets ETF in respect of BFA’s financial year ending December 31, 2016 was USD 2.78 million. This figure is comprised of fixed remuneration of USD 1.09 million and variable remuneration of USD 1.68 million. There were a total of 325 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 the BFA’s financial year ending December 31, 2016, to its senior management was USD 383.97 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 92.50 thousand.


90		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. 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.


DIRECTOR AND OFFICER INFORMATION			91

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


92		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
John E. Martinez (56)	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 (53)	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); Director, Cavium, Inc. (since 2013).


DIRECTOR AND OFFICER INFORMATION			93

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


94		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-805-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Frontier 100 ETF | FM | NYSE Arca

^Ø

iShares MSCI World ETF | URTH | NYSE Arca

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			10
Shareholder Expenses			10
Schedules of Investments			11
iShares MSCI Frontier 100 ETF			11
iShares MSCI World ETF			15
Financial Statements			31
Financial Highlights			34
Notes to Financial Statements			36
Report of Independent Registered Public Accounting Firm			46
Tax Information			47
Board Review and Approval of Investment Advisory Contracts			48
Supplemental Information			55
Director and Officer Information			59

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI FRONTIER 100 ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		27.91%		26.68%		30.06%		27.91%		26.68%		30.06%
Since Inception		8.02%		7.88%		9.83%		46.74%		45.76%		59.28%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 9/12/12. The first day of secondary market trading was 9/13/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,133.80	$	4.30	$	1,000.00	$	1,021.20	$	4.08		0.80%

The iShares MSCI Frontier 100 ETF (the “Fund”) seeks to track the investment results of an index composed of frontier market equities, as represented by the MSCI Frontier Markets 100 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 27.91%, net of fees, while the total return for the Index was 30.06%.

Argentina contributed to the Index’s performance as the country’s economy exited recession during the reporting period. Economic indicators largely strengthened; in June 2017 inflation edged down for a third consecutive month and industrial production rose following 15 months of decline. Private consumption, traditionally the Argentine economy’s key driver, improved, but at a slower pace than forecast. The country’s stock market gained for much of the reporting period on expectations that the


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

benchmark index provider MSCI Inc. would include Argentina in its emerging market stock index; stocks then slumped following the surprise decision in June 2017 against including the country in the index.

Potential emerging-market status also positively affected Kuwait’s stock market performance for the reporting period, as the country appeared on track to be classified as a secondary emerging market by FTSE Russell by the end of September 2017. Expectations of the inclusion supported market strength and liquidity. A rebound in oil prices boosted stock market gains, as the country holds the world’s sixth-largest proven reserves of oil, and oil represents 80% of state revenues.

Stocks in Kenya contributed to the Index’s performance for the reporting period. The country’s banks performed well as the government agreed to review a law limiting interest rates, which had pressured bank revenues. An ongoing severe drought continued to dampen economic strength, however, pushing up food costs.

Moroccan stocks also contributed meaningfully to the Index’s performance for the reporting period. Abundant rainfall benefited the country’s agricultural sector, which represents approximately 15% of Morocco’s economy. Nigerian companies also contributed to the Index’s return.

From a sector standpoint, financials contributed the most to the Index’s return for the reporting period, led by gains in the banks industry. The telecommunication services sector also helped the Index’s performance, driven primarily by strength in the wireless telecommunication services industry.

Within the energy sector, the oil, gas, and consumable fuels industry performed well overall as oil prices rebounded from recent lows. The utilities sector also contributed to the Index’s return for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	44.36	%
Telecommunication Services	12.94
Consumer Staples	11.73
Energy	8.44
Real Estate	5.52
Industrials	4.97
Utilities	4.48
Health Care	2.53
Materials	2.47
Consumer Discretionary	1.72
Information Technology	0.84

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


Kuwait	20.42	%
Argentina	20.25
Vietnam	12.28
Morocco	7.97
Kenya	6.72
Bangladesh	6.40
Nigeria	5.96
Romania	5.26
Oman	3.90
Mauritius	2.69

TOTAL	91.85	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI WORLD ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		16.29%		16.01%		16.19%		16.29%		16.01%		16.19%
5 Years		11.27%		11.16%		11.10%		70.55%		69.69%		69.27%
Since Inception		11.39%		11.39%		11.23%		83.79%		83.84%		82.28%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/10/12. The first day of secondary market trading was 1/12/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,079.10	$	1.26	$	1,000.00	$	1,024.00	$	1.22		0.24%

The iShares MSCI World ETF (the “Fund”) seeks to track the investment results of an index composed of developed market equities, as represented by the MSCI World Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 16.29%, net of fees, while the total return for the Index was 16.19%.


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI WORLD ETF

U.S. stocks represented about 60% of the Index on average and made the largest contribution to the Index’s performance for the reporting period. Improving corporate earnings helped drive the equity market, despite tepid economic expansion in the U.S. Those companies that generated most of their revenues overseas generally performed well, as stronger economic growth in some international markets drove demand for U.S. goods, from technology devices and components to heavy machinery.

Japanese stocks contributed significantly to the Index’s return, largely benefiting from increases in consumer spending and exports. The country’s economy expanded during the reporting period, posting its longest span of sustained growth in a decade. Private consumption, which represented more than half of economic growth, increased. A weaker Japanese yen and a global recovery in manufacturing supported export demand for automobiles and auto parts, as well as flat panels and semiconductor manufacturing equipment, particularly to other Asian countries.

France helped the Index’s performance for the reporting period, as French stocks benefited from the strongest pace of economic growth since 2011. An increase in exports included transportation equipment and refined petroleum products. In addition, French equities rose following the presidential election of Emmanuel Macron, which eased concerns regarding nationalist sentiment in the country.

The U.K. and Germany also contributed to the Index’s return for the reporting period. Although economic growth in the U.K. was moderate overall, moves by the Bank of England to support the economy lifted the country’s equity market. Germany’s stock market strength was largely a reflection of economic growth, supported by strong domestic demand and improving industrial production.

From a sector perspective, information technology was the largest contributor to the Index’s return for the reporting period amid increased global demand for technology products. Leading contributors included the technology hardware, storage, and peripherals industry and the software industry. Banks led an advance in the financials sector, while strength in the industrials sector reflected gains within the capital goods industry. The consumer discretionary and healthcare sectors also contributed to the Index’s performance.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	17.84	%
Information Technology	16.34
Health Care	12.52
Consumer Discretionary	12.18
Industrials	11.40
Consumer Staples	9.26
Energy	5.86
Materials	5.10
Utilities	3.30
Real Estate	3.24
Telecommunication Services	2.96

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


United States	59.12	%
Japan	8.73
United Kingdom	6.57
France	3.86
Canada	3.55
Germany	3.50
Switzerland	3.07
Australia	2.66
Netherlands	1.44
Hong Kong	1.34

TOTAL	93.84	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

About Fund Performance

Shareholder Expenses


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 100.12%

ARGENTINA — 20.28%
Adecoagro SA^a		459,558	$	4,457,713
Arcos Dorados Holdings Inc. Class A^a		604,076		5,195,054
Banco Macro SA ADR		215,660		22,387,665
BBVA Banco Frances SA ADR		322,670		5,543,471
Cresud SACIF y A ADR^a		170,560		3,291,808
Empresa Distribuidora y Comercializadora Norte SA ADR^a		109,470		3,853,344
Globant SA^a,b		134,890		5,245,872
Grupo Financiero Galicia SA ADR		435,830		19,873,848
Grupo Supervielle SA ADR^b		154,570		3,157,865
IRSA Inversiones y Representaciones SA ADR^a		115,620		2,798,004
Pampa Energia SA ADR^a		284,540		17,359,785
Telecom Argentina SA ADR		356,290		10,670,885
Transportadora de Gas del Sur SA ADR^a		381,300		6,630,807
YPF SA ADR		838,440		16,819,106

				127,285,227
BAHRAIN — 1.47%
Aluminium Bahrain BSC		930,921		1,234,152
GFH Financial Group BSC		13,674,479		6,738,398
Ithmaar Holding BSC^a		8,806,390		1,240,131

				9,212,681
BANGLADESH — 6.41%
ACI Ltd.		191,756		1,329,781
Acme Laboratores Ltd. (The)		965,557		1,423,896
Bangladesh Export Import Co. Ltd.^a		4,278,441		1,686,033
Beximco Pharmaceuticals Ltd.		2,695,166		3,620,497
BRAC Bank Ltd.		3,405,326		3,620,757
City Bank Ltd. (The)		4,030,504		2,197,685
GrameenPhone Ltd.		772,320		3,728,804
International Finance Investment & Commerce Bank Ltd.^a		4,876,049		1,244,769
Islami Bank Bangladesh Ltd.		3,600,763		1,472,522
Lafarge Surma Cement Ltd.		3,114,046		2,269,111
National Bank Ltd.^a		11,150,748		1,782,572
Olympic Industries Ltd.		1,058,414		3,589,912


Security	Shares		Value
Renata Ltd.		28,544	$	403,355
Square Pharmaceuticals Ltd.		2,943,877		10,437,365
Summit Power Ltd.^a		2,717,907		1,407,875

				40,214,934
CROATIA — 0.26%
Valamar Riviera DD		214,600		1,613,650

				1,613,650
JORDAN — 1.82%
Al-Eqbal Investment Co. PLC		24,403		923,115
Arab Bank PLC		642,060		5,152,781
Bank of Jordan		271,010		1,058,812
Jordan Islamic Bank		304,220		1,626,225
Jordan Petroleum Refinery Co.		612,950		2,636,809

				11,397,742
KAZAKHSTAN — 2.44%
Halyk Savings Bank of Kazakhstan JSC GDR^a,c		421,070		4,210,700
KazMunaiGas Exploration Production JSC GDR^c		1,101,505		11,125,201

				15,335,901
KENYA — 6.74%
Co-operative Bank of Kenya Ltd. (The)		14,545,260		2,412,419
East African Breweries Ltd.		2,749,542		6,954,094
Equity Group Holdings Ltd./Kenya		15,533,300		6,610,719
KCB Group Ltd.		15,374,036		6,729,880
Safaricom Ltd.		78,879,967		19,566,529

				42,273,641
KUWAIT — 20.46%
Agility Public Warehousing Co. KSC		3,824,326		11,087,758
Al Mazaya Holding Co. KSCP		2,200,060		831,037
Alimtiaz Investment Co. KSCC		3,871,220		2,257,570
Boubyan Bank KSCP		3,594,510		5,383,428
Burgan Bank SAK		3,232,440		3,855,793
Human Soft Holding Co. KSC		202,509		2,750,445
Jazeera Airways Co. KSC		498,560		941,614
Kuwait Finance House KSCP		14,343,937		28,089,022
Kuwait International Bank KSCP		1,587,594		1,278,281
Kuwait Projects Co. Holding KSCP		2,111,508		2,462,726
Mabanee Co. SAK		2,466,848		6,465,463
Mezzan Holding Co. KSCC		632,497		1,781,387


SCHEDULES OF INVESTMENTS			11

Schedule of Investments (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2017


Security	Shares		Value
Mobile Telecommunications Co. KSC		11,944,554	$	19,749,279
National Bank of Kuwait SAKP		14,549,886		35,723,875
National Industries Group Holding SAK^a		4,802,330		2,259,546
National Real Estate Co. KPSC^a		2,600,430		1,042,585
Warba Bank KSCP^a		2,756,430		2,429,458

				128,389,267
MAURITIUS — 2.69%
Greenbay Properties Ltd.		31,147,954		5,296,171
MCB Group Ltd.		1,407,328		11,595,317

				16,891,488
MOROCCO — 7.98%
Attijariwafa Bank		289,188		13,837,482
Banque Centrale Populaire		153,129		4,770,780
Ciments du Maroc		4,920		811,935
Cosumar		141,047		4,499,346
Douja Promotion Groupe Addoha SA		917,340		4,794,222
Maroc Telecom		1,194,480		17,495,839
Societe d’Exploitation des Ports		138,563		2,254,255
Taqa Morocco		7,791		705,825
TOTAL Maroc SA		5,244		947,929

				50,117,613
NIGERIA — 5.96%
Access Bank PLC		90,391,806		2,438,183
Afriland Properties PLC^a		8,020		44
FBN Holdings PLC		111,793,870		1,777,476
Guaranty Trust Bank PLC		91,703,656		10,024,732
Lafarge Africa PLC		9,434,792		1,499,566
Nigerian Breweries PLC		22,718,662		11,408,761
Oando PLC^a		31,574,622		599,786
Transnational Corp. of Nigeria PLC^a		141,678,690		513,758
United Bank for Africa PLC		112,968,507		2,867,541
Zenith Bank PLC		98,357,393		6,310,237

				37,440,084
OMAN — 3.86%
Bank Muscat SAOG		8,354,892		8,418,902
Bank Nizwa SAOG^a		4,398,070		1,062,253
Bank Sohar SAOG		7,827,720		3,090,023
HSBC Bank Oman SAOG		2,958,150		868,124
Oman Telecommunications Co. SAOG		2,350,120		7,629,269


Security	Shares		Value
Ooredoo QSC		2,206,210	$	2,521,055
Phoenix Power Co. SAOC		2,082,800		659,918

				24,249,544
PAKISTAN — 0.49%
Fauji Cement Co. Ltd.		299,500		97,679
Habib Bank Ltd.		631,500		1,066,466
Lucky Cement Ltd.		150,098		851,792
MCB Bank Ltd.		294,466		541,515
National Bank of Pakistan		369,626		195,108
Pakistan Oilfields Ltd.		73,700		336,547

				3,089,107
ROMANIA — 5.27%
Banca Transilvania SA		19,773,389		11,726,136
BRD-Groupe Societe Generale SA		1,359,496		4,597,899
OMV Petrom SA		52,215,057		4,056,536
Societatea Energetica Electrica SA		1,089,222		3,666,892
Societatea Nationala de Gaze Naturale ROMGAZ SA		743,319		5,909,516
Transgaz SA Medias		30,646		3,095,115

				33,052,094
SLOVENIA — 0.57%
Petrol DD Ljubljana		2,818		1,246,318
Zavarovalnica Triglav DD		72,003		2,311,317

				3,557,635
SRI LANKA — 1.12%
John Keells Holdings PLC		6,629,315		7,029,612

				7,029,612
VIETNAM — 12.30%
Bank for Foreign Trade of Vietnam JSC		1,929,685		3,149,432
FLC Faros Construction JSC^a		786,410		3,840,112
Hoa Phat Group JSC		4,005,832		6,176,645
Hoa Sen Group		1,116,030		1,465,521
Hoang Huy Investment Financial Services JSC		1,157,370		827,366
Kinh Bac City Development Share Holding Corp.^a		1,505,150		999,836
Masan Group Corp.		3,614,600		7,553,109
No Va Land Investment Group Corp.^a		1,366,980		3,620,183
PetroVietnam Fertilizer & Chemicals JSC		1,103,760		1,136,220


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2017


Security	Principal or Shares		Value
PetroVietnam Technical Services Corp.		1,213,700	$	875,643
Saigon Beer Alcohol Beverage Corp.		131,600		1,453,120
Saigon Securities Inc.		2,299,520		2,534,060
Saigon Thuong Tin Commercial JSB^a		3,084,629		1,587,672
Vietnam Dairy Products JSC		4,765,860		31,113,372
Vingroup JSC^a		5,045,530		10,876,140

				77,208,431

TOTAL COMMON STOCKS
(Cost: $556,027,920)				628,358,651

CONVERTIBLE BONDS — 0.05%

OMAN — 0.05%
Bank Muscat SAOG
0.35%, 03/19/18	OMR	1,026,177		282,495

				282,495

TOTAL CONVERTIBLE BONDS
(Cost: $255,878)				282,495

SHORT-TERM INVESTMENTS — 1.34%

MONEY MARKET FUNDS — 1.34%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		4,575,839		4,577,212
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		3,859,935		3,859,935

				8,437,147

TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,436,484)				8,437,147

TOTAL INVESTMENTS IN SECURITIES — 101.51%
(Cost: $564,720,282)^g				637,078,293
Other Assets, Less Liabilities — (1.51)%				(9,452,181	)

NET ASSETS — 100.00%			$	627,626,112

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

Currency abbreviations:

OMR — Omani Rial

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $592,116,408. Net unrealized appreciation was $44,961,885, of which $120,056,137 represented gross unrealized appreciation on investments and $75,094,252 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			13

Schedule of Investments (Continued)

iSHARES^® MSCI FRONTIER 100 ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		2,940,667		1,635,172	^b		—			4,575,839	$	4,577,212	$	618	$	663	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		5,413,364		—			(1,553,429	)^b		3,859,935		3,859,935		—		—		30,087

											$	8,437,147	$	618	$	663	$	30,087

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	628,358,607	$	44	$	—	$	628,358,651
Convertible bonds		—		282,495		—		282,495
Money market funds		8,437,147		—		—		8,437,147

Total	$	636,795,754	$	282,539	$	—	$	637,078,293

During the year ended August 31, 2017, Nigerian securities in the amount of $23,389,554 transferred from Level 2 to Level 1 as the foreign exchange rate used to translate the Nigerian naira into U.S. dollars was changed from the three-month non-deliverable forward rate, a Level 2 input, to the World Market Reuters rate, a Level 1 input.

See notes to financial statements.


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.41%

AUSTRALIA — 2.65%
AGL Energy Ltd.		12,152	$	231,224
Amcor Ltd./Australia		19,592		250,340
AMP Ltd.		42,160		170,540
APA Group		19,482		136,906
ASX Ltd.		3,723		161,464
Aurizon Holdings Ltd.		33,046		130,004
Australia & New Zealand Banking Group Ltd.		36,766		857,332
Bendigo & Adelaide Bank Ltd.		10,354		98,137
BHP Billiton Ltd.		43,276		939,801
Brambles Ltd.		23,126		170,768
Cochlear Ltd.		1,674		207,405
Commonwealth Bank of Australia		21,903		1,316,825
Computershare Ltd.		8,866		98,801
Crown Resorts Ltd.		7,130		65,600
CSL Ltd.		6,510		663,601
Dexus		22,085		167,985
Fortescue Metals Group Ltd.		23,064		109,942
Goodman Group		31,620		207,908
GPT Group (The)		41,168		163,262
Incitec Pivot Ltd.		37,882		100,053
Insurance Australia Group Ltd.		37,138		188,813
James Hardie Industries PLC		9,184		128,859
LendLease Group		13,082		172,034
Macquarie Group Ltd.		4,412		303,746
Medibank Pvt Ltd.		46,378		111,825
Mirvac Group		93,310		171,700
National Australia Bank Ltd.		33,914		812,346
Newcrest Mining Ltd.		12,214		221,360
Oil Search Ltd.		21,846		116,265
Orica Ltd.		7,130		114,969
Origin Energy Ltd.^a		33,170		201,262
QBE Insurance Group Ltd.		19,778		163,771
Ramsay Health Care Ltd.		2,542		137,726
Rio Tinto Ltd.		5,766		310,253
Santos Ltd.^a		26,673		79,545
Scentre Group		79,567		243,599
Sonic Healthcare Ltd.		8,432		146,464
South32 Ltd.		83,952		194,433
Stockland		53,326		187,369
Suncorp Group Ltd.		16,695		172,538
Sydney Airport		18,106		106,270


Security	Shares		Value
Tatts Group Ltd.		30,628	$	99,843
Telstra Corp. Ltd.		53,405		155,454
Transurban Group		29,778		287,200
Vicinity Centres		61,752		128,324
Wesfarmers Ltd.		14,384		486,237
Westfield Corp.		28,148		165,879
Westpac Banking Corp.		42,846		1,062,658
Woodside Petroleum Ltd.		10,292		235,342
Woolworths Ltd.		17,174		354,160

				13,508,142
AUSTRIA — 0.10%
Andritz AG		1,798		97,711
Erste Group Bank AG		5,084		214,545
OMV AG		3,782		217,132

				529,388
BELGIUM — 0.48%
Ageas		3,844		178,281
Anheuser-Busch InBev SA/NV		9,796		1,159,056
Colruyt SA		1,984		110,096
Groupe Bruxelles Lambert SA		1,054		107,153
KBC Group NV		3,735		306,530
Proximus SADP		3,162		111,332
Solvay SA		1,061		153,704
UCB SA		2,170		149,351
Umicore SA		2,294		171,140

				2,446,643
CANADA — 3.54%
Agnico Eagle Mines Ltd.		4,154		212,082
Agrium Inc.		1,860		181,705
Alimentation Couche-Tard Inc. Class B		5,952		283,085
ARC Resources Ltd.		6,262		81,912
Bank of Montreal		8,432		602,665
Bank of Nova Scotia (The)		15,562		964,316
Barrick Gold Corp.		17,918		321,416
BCE Inc.		1,426		67,606
BlackBerry Ltd.^a,b		9,238		85,251
Brookfield Asset Management Inc. Class A		11,656		459,174
Cameco Corp.		8,122		81,107
Canadian Imperial Bank of Commerce		4,960		415,038
Canadian National Railway Co.		10,788		870,956
Canadian Natural Resources Ltd.		14,880		456,577


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
Canadian Pacific Railway Ltd.		2,108	$	326,704
Canadian Tire Corp. Ltd. Class A^b		1,364		160,797
Canadian Utilities Ltd. Class A		2,976		92,384
Cenovus Energy Inc.		15,438		120,303
CGI Group Inc. Class A^a		3,720		188,500
CI Financial Corp.		4,588		100,049
Constellation Software Inc./Canada		372		206,023
Crescent Point Energy Corp.		7,936		54,246
Enbridge Inc.		21,870		870,788
Encana Corp.		14,694		136,538
Fairfax Financial Holdings Ltd.		372		192,588
Finning International Inc.		4,402		100,311
First Quantum Minerals Ltd.		9,582		115,022
Fortis Inc./Canada		5,890		214,647
Franco-Nevada Corp.^b		2,728		222,287
George Weston Ltd.		1,550		134,175
Gildan Activewear Inc.		4,712		146,988
Goldcorp Inc.		13,578		185,841
Great-West Lifeco Inc.		3,720		102,632
Husky Energy Inc.^a,b		6,159		71,771
IGM Financial Inc.		1,798		58,640
Imperial Oil Ltd.		4,712		138,532
Intact Financial Corp.		2,294		188,350
Inter Pipeline Ltd.		6,836		124,697
Loblaw Companies Ltd.		3,472		187,564
Magna International Inc. Class A		5,394		258,525
Manulife Financial Corp.		26,040		509,481
Metro Inc.		5,580		183,456
National Bank of Canada		5,208		238,768
Onex Corp.		2,294		182,697
Open Text Corp.		4,588		147,036
Pembina Pipeline Corp.		7,564		242,832
Potash Corp. of Saskatchewan Inc.		12,524		217,066
Power Corp. of Canada		5,084		123,760
Power Financial Corp.		3,596		96,687
PrairieSky Royalty Ltd.		5,022		117,524
Restaurant Brands International Inc.		3,658		222,412
RioCan REIT		4,960		94,156
Rogers Communications Inc. Class B		5,394		280,467
Royal Bank of Canada		18,724		1,384,120
Saputo Inc.		5,208		175,130
Shaw Communications Inc. Class B		6,392		142,039
SNC-Lavalin Group Inc.		2,914		126,787


Security	Shares		Value
Sun Life Financial Inc.		7,750	$	296,401
Suncor Energy Inc.		22,392		698,863
Teck Resources Ltd. Class B		8,308		205,952
TELUS Corp.		2,450		88,347
Thomson Reuters Corp.		4,712		214,600
Toronto-Dominion Bank (The)		23,622		1,263,483
Tourmaline Oil Corp.^a		3,658		71,074
TransCanada Corp.		11,904		602,060
Valeant Pharmaceuticals International Inc.^a,b		5,146		68,914
Vermilion Energy Inc.		2,728		88,558
Wheaton Precious Metals Corp.		8,060		166,761

				18,031,223
DENMARK — 0.72%
AP Moller – Maersk A/S Class A		124		242,412
Carlsberg A/S Class B		1,838		210,655
Coloplast A/S Class B		2,356		192,632
Danske Bank A/S		10,086		391,448
DSV A/S		4,659		329,916
Genmab A/S^a		896		208,820
Novo Nordisk A/S Class B		25,172		1,199,060
Novozymes A/S Class B		4,278		217,321
Pandora A/S		1,804		191,475
Vestas Wind Systems A/S		3,364		305,967
William Demant Holding A/S^a		7,564		199,862

				3,689,568
FINLAND — 0.38%
Elisa OYJ		3,348		146,082
Fortum OYJ		3,906		70,029
Kone OYJ Class B		4,960		268,783
Metso OYJ		3,374		111,676
Nokia OYJ		79,878		494,303
Sampo OYJ Class A		5,208		274,544
Stora Enso OYJ Class R		10,044		131,832
UPM-Kymmene OYJ		8,246		214,308
Wartsila OYJ Abp		3,224		222,123

				1,933,680
FRANCE — 3.85%
Accor SA		3,224		149,104
Air Liquide SA		5,105		622,410
Airbus SE		8,060		676,622
Alstom SA		3,844		136,533
Atos SE		2,046		315,251
AXA SA		24,676		715,096


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
BNP Paribas SA		14,819	$	1,125,986
Bollore SA		29,450		136,621
Bouygues SA		3,100		140,403
Bureau Veritas SA		5,085		120,760
Capgemini SE		2,356		260,862
Carrefour SA		7,812		157,333
Casino Guichard Perrachon SA		992		56,333
Cie. de Saint-Gobain		6,448		353,212
Cie. Generale des Etablissements Michelin Class B		2,666		362,920
Credit Agricole SA		15,376		270,734
Danone SA		7,812		614,380
Dassault Systemes SE		2,356		231,787
Edenred		4,278		115,556
Engie SA		19,964		332,767
Essilor International SA		2,914		367,405
Eutelsat Communications SA		4,030		116,979
Groupe Eurotunnel SE Registered		11,718		139,524
Hermes International		505		266,755
Iliad SA		620		159,918
Ingenico Group SA		868		86,066
Kering		1,240		464,826
Klepierre SA		4,240		170,636
L’Oreal SA		3,224		679,785
Lagardere SCA		2,790		89,527
Legrand SA		4,278		299,470
LVMH Moet Hennessy Louis Vuitton SE		3,782		990,336
Orange SA		25,916		439,834
Pernod Ricard SA		3,100		423,106
Peugeot SA		7,378		155,566
Publicis Groupe SA		2,852		192,255
Renault SA		2,680		236,898
Safran SA		4,464		433,018
Sanofi		15,686		1,522,884
Schneider Electric SE		7,397		595,637
SCOR SE		2,728		114,165
SES SA		5,828		133,070
Societe BIC SA		620		74,412
Societe Generale SA		10,540		589,333
Sodexo SA		1,550		180,649
STMicroelectronics NV		12,269		212,308
Suez		6,262		118,634
Thales SA		1,984		219,366
Total SA		29,512		1,524,346


Security	Shares		Value
Unibail-Rodamco SE		1,320	$	335,134
Valeo SA		3,906		260,891
Veolia Environnement SA		7,006		164,173
Vinci SA		6,634		610,072
Vivendi SA		15,128		346,674

				19,608,322
GERMANY — 3.33%
adidas AG^b		2,790		625,426
Allianz SE Registered		5,890		1,258,721
BASF SE		12,152		1,175,594
Bayer AG Registered		11,222		1,434,247
Bayerische Motoren Werke AG		4,092		379,468
Beiersdorf AG		2,693		287,129
Brenntag AG		3,348		177,189
Commerzbank AG^a		19,407		240,882
Continental AG		1,506		339,386
Daimler AG Registered		11,116		809,204
Deutsche Bank AG Registered		29,848		478,000
Deutsche Boerse AG		2,832		302,320
Deutsche Lufthansa AG Registered		4,450		111,473
Deutsche Post AG Registered		14,198		588,183
Deutsche Telekom AG Registered		42,099		758,780
E.ON SE		31,772		358,661
Fresenius Medical Care AG & Co. KGaA		3,410		318,251
Fresenius SE & Co. KGaA^b		5,828		492,576
GEA Group AG^b		3,782		166,367
Hannover Rueck SE		1,240		150,077
HeidelbergCement AG		2,480		237,794
Henkel AG & Co. KGaA		1,798		217,398
Infineon Technologies AG^b		18,972		436,906
Lanxess AG		2,294		170,868
Linde AG^b		2,728		522,336
MAN SE		1,426		159,890
Merck KGaA		2,294		251,624
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen Registered		2,046		421,794
Osram Licht AG		2,171		178,044
ProSiebenSat.1 Media SE Registered		3,669		122,923
QIAGEN NV^b		5,254		168,374
RWE AG^a		8,432		210,070
SAP SE		13,330		1,396,211
Siemens AG Registered		10,292		1,343,530


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
thyssenkrupp AG^b		6,882	$	206,105
Vonovia SE		8,122		342,845
Zalando SE^a,b,c		2,418		114,372

				16,953,018
HONG KONG — 1.34%
AIA Group Ltd.		173,600		1,331,981
Bank of East Asia Ltd. (The)^b		49,600		227,199
BOC Hong Kong Holdings Ltd.		93,000		473,529
Cheung Kong Property Holdings Ltd.		62,000		544,231
CK Hutchison Holdings Ltd.		31,000		405,599
CLP Holdings Ltd.		31,000		327,370
Galaxy Entertainment Group Ltd.		62,000		388,963
Hang Seng Bank Ltd.		18,600		427,780
Hong Kong & China Gas Co. Ltd.^b		222,497		420,747
Hong Kong Exchanges & Clearing Ltd.		15,500		423,027
Jardine Matheson Holdings Ltd.		6,200		407,402
Li & Fung Ltd.^b		132,000		59,536
Link REIT		62,000		511,752
MTR Corp. Ltd.		62,000		362,425
New World Development Co. Ltd.		204,333		279,356
Sands China Ltd.^b		49,600		222,129

				6,813,026
IRELAND — 0.16%
Bank of Ireland Group PLC^a		12,663		105,385
CRH PLC		10,540		367,597
Kerry Group PLC Class A		2,728		253,725
Paddy Power Betfair PLC		1,252		109,836

				836,543
ISRAEL — 0.15%
Bank Hapoalim BM		33,170		223,159
Check Point Software Technologies Ltd.^a,b		2,046		228,886
Nice Ltd.		1,736		134,363
Teva Pharmaceutical Industries Ltd. ADR^b		12,710		201,580

				787,988
ITALY — 0.90%
Assicurazioni Generali SpA		16,244		290,460
Atlantia SpA		7,688		246,787
CNH Industrial NV		18,315		207,513
Enel SpA		100,832		609,585
Eni SpA		33,914		531,019


Security	Shares		Value
Ferrari NV		2,410	$	275,350
Fiat Chrysler Automobiles NV^a		15,376		231,249
Intesa Sanpaolo SpA		182,280		614,597
Leonardo SpA		3,996		67,510
Luxottica Group SpA		2,790		160,378
Saipem SpA^a,b		13,729		50,893
Snam SpA		46,788		227,511
Telecom Italia SpA/Milano^a		238,766		228,372
Tenaris SA^b		7,688		102,645
Terna Rete Elettrica Nazionale SpA		30,566		180,246
UniCredit SpA^a		26,996		548,513

				4,572,628
JAPAN — 8.69%
Aeon Co. Ltd.		12,400		182,744
Aisin Seiki Co. Ltd.		6,200		311,521
Ajinomoto Co. Inc.		12,400		244,654
ANA Holdings Inc.		62,000		229,726
Asahi Group Holdings Ltd.		12,400		539,557
Asahi Kasei Corp.		62,000		741,904
Astellas Pharma Inc.		37,200		467,620
Bridgestone Corp.		12,400		531,670
Canon Inc.		18,600		651,321
Casio Computer Co. Ltd.		6,500		91,777
Chubu Electric Power Co. Inc.		18,600		242,851
Chugai Pharmaceutical Co. Ltd.		6,200		251,808
Chugoku Electric Power Co. Inc. (The)		18,600		214,290
Concordia Financial Group Ltd.		24,800		118,502
Dai-ichi Life Holdings Inc.		15,200		244,449
Daiichi Sankyo Co. Ltd.		13,300		314,071
Daikin Industries Ltd.		6,200		619,380
Daiwa House Industry Co. Ltd.		12,400		433,425
Denso Corp.		6,200		300,592
Dentsu Inc.		6,200		259,131
East Japan Railway Co.		6,200		568,117
Eisai Co. Ltd.		6,200		320,760
FANUC Corp.		2,700		523,514
Fast Retailing Co. Ltd.		700		200,154
FUJIFILM Holdings Corp.		6,200		243,471
Fujitsu Ltd.		62,000		459,170
Hakuhodo DY Holdings Inc.		12,400		168,661
Hitachi Ltd.		62,000		426,440
Honda Motor Co. Ltd.		24,800		694,247
Hoya Corp.		6,200		354,616


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
Hulic Co. Ltd.		12,400	$	122,693
Iida Group Holdings Co. Ltd.		6,200		105,286
INPEX Corp.		24,800		236,824
ITOCHU Corp.		24,800		404,696
Japan Airlines Co. Ltd.		6,200		212,826
Japan Exchange Group Inc.		12,400		211,023
Japan Retail Fund Investment Corp.		124		227,923
Japan Tobacco Inc.		18,600		636,111
JFE Holdings Inc.		12,400		244,710
JTEKT Corp.		6,200		82,866
JXTG Holdings Inc.		55,800		269,925
Kansai Electric Power Co. Inc. (The)		18,600		260,258
Kao Corp.		6,200		386,556
KDDI Corp.		24,800		668,559
Kirin Holdings Co. Ltd.		18,600		421,905
Kobe Steel Ltd.^a		6,200		74,585
Komatsu Ltd.		18,600		502,771
Konami Holdings Corp.		6,200		322,788
Konica Minolta Inc.		18,600		148,381
Kubota Corp.		18,600		321,774
Kuraray Co. Ltd.		18,600		352,869
Kyocera Corp.		6,200		371,797
Kyushu Electric Power Co. Inc.		12,400		145,564
Kyushu Financial Group Inc.		18,600		113,229
M3 Inc.^b		6,200		160,943
Marubeni Corp.		43,400		282,104
Marui Group Co. Ltd.		6,200		86,696
Mazda Motor Corp.		12,400		182,406
Mitsubishi Chemical Holdings Corp.		43,400		403,400
Mitsubishi Corp.		24,800		573,131
Mitsubishi Electric Corp.		28,600		422,789
Mitsubishi Estate Co. Ltd.		13,600		234,040
Mitsubishi Heavy Industries Ltd.		62,000		237,105
Mitsubishi Motors Corp.		12,400		91,485
Mitsubishi UFJ Financial Group Inc.		180,400		1,104,921
Mitsubishi UFJ Lease & Finance Co. Ltd.		43,400		219,248
Mitsui & Co. Ltd.		31,100		464,692
Mitsui Fudosan Co. Ltd.		8,800		190,136
Mizuho Financial Group Inc.		378,200		649,806
MS&AD Insurance Group Holdings Inc.		8,100		267,081
Murata Manufacturing Co. Ltd.		2,400		367,218
Nagoya Railroad Co. Ltd.		62,000		277,158


Security	Shares		Value
NEC Corp.		30,000	$	79,320
Nidec Corp.		6,200		701,908
Nikon Corp.		12,400		204,263
Nintendo Co. Ltd.		1,600		532,655
Nippon Paint Holdings Co. Ltd.^b		6,200		211,248
Nippon Steel & Sumitomo Metal Corp.		12,447		296,812
Nippon Telegraph & Telephone Corp.		12,400		616,057
Nissan Motor Co. Ltd.		43,400		431,003
Nitto Denko Corp.		6,200		546,317
Nomura Holdings Inc.		68,200		379,543
Nomura Real Estate Master Fund Inc.		124		163,703
NTT DOCOMO Inc.		24,800		575,384
Olympus Corp.^b		6,200		213,783
Omron Corp.		6,200		310,958
Ono Pharmaceutical Co. Ltd.		6,200		126,242
Oriental Land Co. Ltd./Japan		6,200		465,254
ORIX Corp.		24,800		396,471
Otsuka Holdings Co. Ltd.		6,200		249,499
Panasonic Corp.		37,200		495,335
Rakuten Inc.		18,600		220,628
Recruit Holdings Co. Ltd.		18,600		370,276
Resona Holdings Inc.		43,400		216,330
Ricoh Co. Ltd.		18,600		186,068
Sekisui House Ltd.		12,400		214,516
Seven & I Holdings Co. Ltd.		12,400		491,786
Seven Bank Ltd.		37,200		140,945
Shin-Etsu Chemical Co. Ltd.		6,200		547,781
Shionogi & Co. Ltd.		6,200		326,449
Shiseido Co. Ltd.		6,200		256,822
SoftBank Group Corp.		12,400		1,005,204
Sompo Holdings Inc.		6,200		232,937
Sony Corp.		18,600		732,948
Subaru Corp.		6,200		217,220
Sumitomo Corp.		31,000		438,411
Sumitomo Electric Industries Ltd.		18,600		291,016
Sumitomo Mitsui Financial Group Inc.		18,600		695,261
Sumitomo Mitsui Trust Holdings Inc.		6,200		214,403
Sumitomo Realty & Development Co. Ltd.		5,000		151,145
Suzuki Motor Corp.		6,200		311,296


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
Sysmex Corp.		6,200	$	381,937
T&D Holdings Inc.		12,400		169,956
Takeda Pharmaceutical Co. Ltd.		12,400		684,670
Terumo Corp.		6,200		239,415
Tohoku Electric Power Co. Inc.		12,400		169,449
Tokio Marine Holdings Inc.		12,400		494,603
Tokyo Electric Power Co. Holdings Inc.^a		31,000		125,341
Tokyo Gas Co. Ltd.		62,000		328,534
Tokyu Fudosan Holdings Corp.		24,800		147,818
Toshiba Corp.^a,b		62,000		172,379
Toyota Motor Corp.		37,200		2,089,838
Unicharm Corp.		6,200		145,733
USS Co. Ltd.		6,200		121,735
Yahoo Japan Corp.		43,500		199,200
Yamada Denki Co. Ltd.		24,800		134,072
Yamaha Corp.		6,200		215,755
Yamato Holdings Co. Ltd.		6,200		132,044
Yokogawa Electric Corp.		6,200		96,498

				44,316,595
NETHERLANDS — 1.43%
Aegon NV		25,792		147,065
AerCap Holdings NV^a,b		2,666		134,100
Akzo Nobel NV		3,721		339,755
Altice NV Class A^a,b		4,244		97,735
Altice NV Class B^a		2,418		55,842
ArcelorMittal^a,b		9,072		242,031
ASML Holding NV		5,208		808,028
Gemalto NV^b		1,612		87,000
Heineken Holding NV		2,108		207,864
Heineken NV		3,286		344,300
ING Groep NV		51,336		909,397
Koninklijke Ahold Delhaize NV		18,807		337,630
Koninklijke DSM NV		3,039		230,261
Koninklijke KPN NV		54,188		191,404
Koninklijke Philips NV		13,779		520,615
NN Group NV		3,658		144,974
NXP Semiconductors NV^a		4,712		532,267
Randstad Holding NV		2,123		123,943
RELX NV		14,203		297,784
Unilever NV CVA		21,576		1,282,841
Wolters Kluwer NV		5,766		251,551

				7,286,387


Security	Shares		Value
NEW ZEALAND — 0.04%
Fletcher Building Ltd.		19,716	$	115,224
Spark New Zealand Ltd.		39,990		112,129

				227,353
NORWAY — 0.25%
DNB ASA		15,376		299,423
Norsk Hydro ASA		23,932		172,265
Orkla ASA		15,162		155,228
Statoil ASA		16,306		308,101
Telenor ASA		9,858		199,064
Yara International ASA		3,720		151,720

				1,285,801
PORTUGAL — 0.04%
EDP – Energias de Portugal SA		30,283		116,111
Galp Energia SGPS SA		3,923		64,877

				180,988
SINGAPORE — 0.47%
Ascendas REIT		101,765		199,334
CapitaLand Ltd.^b		86,800		241,608
CapitaLand Mall Trust		136,400		217,959
DBS Group Holdings Ltd.		23,400		355,308
Genting Singapore PLC		142,600		124,434
Global Logistic Properties Ltd.^b		74,400		177,508
Hutchison Port Holdings Trust^b		173,600		78,988
Oversea-Chinese Banking Corp. Ltd.		43,400		356,979
Singapore Press Holdings Ltd.^b		3,700		7,520
Singapore Telecommunications Ltd.^b		124,000		337,850
United Overseas Bank Ltd.		16,800		297,278

				2,394,766
SPAIN — 1.33%
Abertis Infraestructuras SA		12,747		257,633
ACS Actividades de Construccion y Servicios SA		4,203		158,703
Aena SA^c		1,302		253,941
Amadeus IT Group SA		6,882		426,037
Banco Bilbao Vizcaya Argentaria SA		87,919		775,798
Banco de Sabadell SA		89,661		196,886
Banco Santander SA		212,824		1,381,271
Bankia SA		25,714		125,006
Bankinter SA		16,430		156,464
CaixaBank SA		59,229		305,470
Distribuidora Internacional de Alimentacion SA^b		11,842		74,844


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
Enagas SA		537	$	15,805
Endesa SA		3,930		94,686
Ferrovial SA		8,242		187,600
Gas Natural SDG SA		4,092		99,343
Grifols SA		6,262		176,816
Iberdrola SA		72,260		589,428
Industria de Diseno Textil SA		13,950		529,315
International Consolidated Airlines Group SA		10,292		81,334
Red Electrica Corp. SA		1,519		34,069
Repsol SA		17,705		303,744
Telefonica SA		53,233		573,332

				6,797,525
SWEDEN — 1.09%
Alfa Laval AB		5,766		130,430
Assa Abloy AB Class B		15,004		323,938
Atlas Copco AB Class A		8,122		317,843
Atlas Copco AB Class B		6,944		247,484
Boliden AB		5,584		195,084
Electrolux AB Class B		4,216		153,066
Essity AB Class B^a		8,680		240,634
Hennes & Mauritz AB Class B		11,656		294,427
Hexagon AB Class B		4,402		215,693
Investor AB Class B		6,200		289,534
Kinnevik AB Class B		3,968		119,229
Lundin Petroleum AB^a,b		4,650		99,634
Millicom International Cellular SA SDR		1,366		85,095
Nordea Bank AB		38,750		520,572
Sandvik AB		20,961		345,866
Skandinaviska Enskilda Banken AB Class A		19,592		254,584
Skanska AB Class B		6,262		141,257
SKF AB Class B		6,200		123,730
Svenska Handelsbanken AB Class A		19,902		297,129
Swedbank AB Class A		10,354		279,495
Swedish Match AB		4,030		143,477
Telefonaktiebolaget LM Ericsson Class B		43,090		252,182
Telia Co. AB		25,510		121,501
Volvo AB Class B		21,711		370,247

				5,562,131


Security	Shares		Value
SWITZERLAND — 3.06%
ABB Ltd. Registered		26,722	$	617,303
Adecco Group AG Registered		2,604		188,323
Baloise Holding AG Registered		1,178		187,181
Cie. Financiere Richemont SA Class A Registered		7,378		658,339
Credit Suisse Group AG Registered		30,700		450,437
Geberit AG Registered		744		339,174
Givaudan SA Registered		124		252,903
Julius Baer Group Ltd.		3,658		204,026
Kuehne + Nagel International AG Registered		1,522		275,100
LafargeHolcim Ltd. Registered		6,696		392,632
Nestle SA Registered		41,540		3,516,419
Novartis AG Registered		29,512		2,484,413
Partners Group Holding AG		496		321,032
Roche Holding AG		9,362		2,372,161
Schindler Holding AG Participation Certificates		744		159,019
Schindler Holding AG Registered		744		156,000
SGS SA Registered		124		276,516
Sonova Holding AG Registered		1,364		230,078
Swatch Group AG (The) Bearer		682		271,665
Swiss Life Holding AG Registered		558		199,277
Swiss Prime Site AG Registered		970		87,613
Swiss Re AG		4,030		364,210
Swisscom AG Registered		414		208,336
UBS Group AG		49,052		806,474
Zurich Insurance Group AG		1,922		573,800

				15,592,431
UNITED KINGDOM — 6.54%
3i Group PLC		16,213		202,541
Admiral Group PLC		3,906		97,189
Anglo American PLC		19,654		355,185
Antofagasta PLC		9,672		128,991
Ashtead Group PLC		7,524		161,229
Associated British Foods PLC		5,270		225,586
AstraZeneca PLC		17,050		997,648
Auto Trader Group PLC^c		22,878		104,180
Aviva PLC		51,410		346,127
Babcock International Group PLC		7,316		76,595
BAE Systems PLC		46,190		361,573
Barclays PLC		225,060		554,192
BHP Billiton PLC		29,636		563,838


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
BP PLC		255,750	$	1,466,977
British American Tobacco PLC		31,051		1,932,920
British Land Co. PLC (The)		13,206		104,056
BT Group PLC		113,956		429,575
Bunzl PLC		7,254		215,919
Burberry Group PLC		7,378		170,839
Capita PLC		11,408		95,328
Carnival PLC		3,224		223,293
Centrica PLC		73,718		189,884
Cobham PLC		57,308		101,388
Compass Group PLC		22,842		486,234
Croda International PLC		2,998		148,419
Diageo PLC		33,666		1,124,418
Experian PLC		14,632		292,992
Ferguson PLC		4,041		239,680
G4S PLC		30,256		110,526
GKN PLC		28,954		118,977
GlaxoSmithKline PLC		65,906		1,302,297
Glencore PLC		167,590		776,333
Hammerson PLC		12,896		93,222
HSBC Holdings PLC		265,422		2,566,782
IMI PLC		7,253		106,075
Imperial Brands PLC		12,710		524,161
Inmarsat PLC		8,060		76,023
InterContinental Hotels Group PLC		3,453		171,567
Intertek Group PLC		3,720		244,943
Intu Properties PLC^b		22,755		72,951
Investec PLC		13,702		104,169
ITV PLC		56,730		115,936
J Sainsbury PLC		27,914		84,742
Johnson Matthey PLC		3,226		114,896
Kingfisher PLC		31,992		123,216
Land Securities Group PLC		11,470		149,275
Legal & General Group PLC		77,686		260,466
Lloyds Banking Group PLC		930,744		765,400
London Stock Exchange Group PLC		5,274		268,435
Marks & Spencer Group PLC		23,064		94,982
Meggitt PLC		16,120		107,596
National Grid PLC		45,694		573,894
Next PLC		2,294		122,051
Old Mutual PLC		73,160		195,611
Pearson PLC		11,904		93,030
Prudential PLC		35,092		820,929
Randgold Resources Ltd.		1,160		118,232


Security	Shares		Value
Reckitt Benckiser Group PLC		8,742	$	825,914
RELX PLC		16,864		367,456
Rio Tinto PLC		16,988		820,105
Rolls-Royce Holdings PLC		25,358		298,650
Royal Bank of Scotland Group PLC^a		53,940		175,082
Royal Dutch Shell PLC Class A ADR		56,884		1,559,046
Royal Dutch Shell PLC Class B		52,021		1,448,219
RSA Insurance Group PLC		19,485		167,341
Sage Group PLC (The)		20,646		184,229
Segro PLC		23,216		160,943
Severn Trent PLC		5,332		155,893
Shire PLC		12,356		610,344
Sky PLC		13,578		167,261
Smith & Nephew PLC		12,958		233,258
Smiths Group PLC		8,494		169,099
SSE PLC		12,728		233,709
Standard Chartered PLC^a		45,757		453,993
Standard Life Aberdeen PLC		39,898		220,860
Tate & Lyle PLC		14,942		131,598
Taylor Wimpey PLC		56,482		145,924
Tesco PLC^a		118,730		276,758
TUI AG		8,308		140,025
Unilever PLC		17,546		1,021,696
United Utilities Group PLC		12,834		150,489
Vodafone Group PLC		342,367		976,722
Weir Group PLC (The)		4,464		103,250
Whitbread PLC		3,224		156,118
WPP PLC		17,608		322,181

				33,349,676
UNITED STATES — 58.87%
3M Co.		7,874		1,608,816
Abbott Laboratories		22,425		1,142,330
AbbVie Inc.		21,080		1,587,324
Accenture PLC Class A		8,246		1,078,247
Activision Blizzard Inc.		9,921		650,421
Acuity Brands Inc.		682		120,571
Adobe Systems Inc.^a		6,882		1,067,811
Advance Auto Parts Inc.^b		1,240		121,396
AES Corp./VA		9,114		100,619
Aetna Inc.		4,712		743,082
Affiliated Managers Group Inc.		992		175,276
Aflac Inc.		5,270		435,039
AGCO Corp.		1,736		118,829
Agilent Technologies Inc.		5,766		373,176


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
AGNC Investment Corp.		5,938	$	127,905
Air Products & Chemicals Inc.		2,852		414,595
Akamai Technologies Inc.^a		2,666		125,702
Albemarle Corp.		1,861		216,360
Alexion Pharmaceuticals Inc.^a		3,224		459,130
Alkermes PLC^a		2,790		141,676
Alleghany Corp.^a		151		84,978
Allergan PLC		4,526		1,038,626
Alliance Data Systems Corp.		806		181,753
Alliant Energy Corp.		4,526		193,441
Allstate Corp. (The)		5,332		482,546
Alphabet Inc. Class A^a		4,030		3,849,617
Alphabet Inc. Class C^a		4,216		3,960,215
Altria Group Inc.		25,669		1,627,415
Amazon.com Inc.^a		5,456		5,350,154
Ameren Corp.		4,092		245,479
American Airlines Group Inc.		1,922		85,990
American Electric Power Co. Inc.		6,572		483,896
American Express Co.		10,106		870,127
American International Group Inc.		13,082		791,199
American Tower Corp.		5,952		881,194
American Water Works Co. Inc.		3,720		300,948
Ameriprise Financial Inc.		2,480		343,505
AmerisourceBergen Corp.		2,604		208,971
AMETEK Inc.		4,154		262,741
Amgen Inc.		9,734		1,730,413
Amphenol Corp. Class A		4,836		391,426
Anadarko Petroleum Corp.		7,502		307,057
Analog Devices Inc.		5,319		445,041
Andeavor		2,294		229,744
Annaly Capital Management Inc.		16,182		202,275
ANSYS Inc.^a		1,799		231,747
Anthem Inc.		3,596		704,960
Aon PLC		3,968		552,187
Apache Corp.		5,208		202,279
Apple Inc.		70,742		11,601,688
Applied Materials Inc.		16,521		745,428
Arch Capital Group Ltd.^a		2,542		247,438
Archer-Daniels-Midland Co.		8,060		333,039
Arconic Inc.		5,874		149,611
Arrow Electronics Inc.^a		1,860		147,740
Assurant Inc.		1,240		117,416
AT&T Inc.		80,166		3,003,018
Autodesk Inc.^a		3,348		383,212


Security	Shares		Value
Autoliv Inc.		1,364	$	148,158
Automatic Data Processing Inc.		6,138		653,513
AutoZone Inc.^a		434		229,343
AvalonBay Communities Inc.		1,984		372,456
Avery Dennison Corp.		1,984		187,012
Avnet Inc.		2,542		98,045
Axis Capital Holdings Ltd.		2,108		126,986
Baker Hughes a GE Co.		5,952		201,773
Ball Corp.		5,208		208,268
Bank of America Corp.		135,222		3,230,454
Bank of New York Mellon Corp. (The)		14,198		742,271
Baxter International Inc.		6,634		411,573
BB&T Corp.		11,409		525,841
Becton Dickinson and Co.		3,294		656,955
Bed Bath & Beyond Inc.		2,666		73,555
Berkshire Hathaway Inc. Class B^a		15,712		2,846,386
Best Buy Co. Inc.		4,340		235,488
Biogen Inc.^a		2,976		942,083
BioMarin Pharmaceutical Inc.^a		2,604		234,855
BlackRock Inc.^d		1,612		675,444
Boeing Co. (The)		7,812		1,872,224
BorgWarner Inc.		3,286		152,503
Boston Properties Inc.		2,356		284,134
Boston Scientific Corp.^a		20,212		556,841
Brighthouse Financial Inc.^a		1,341		76,531
Bristol-Myers Squibb Co.		22,692		1,372,412
Broadcom Ltd.		5,518		1,390,922
Brown-Forman Corp. Class B		3,720		197,309
Bunge Ltd.		2,170		161,947
CA Inc.		4,774		158,401
Cabot Oil & Gas Corp.		7,564		193,260
Campbell Soup Co.		3,410		157,542
Capital One Financial Corp.		6,882		547,876
Cardinal Health Inc.		4,464		301,141
CarMax Inc.^a		3,162		212,328
Carnival Corp.		5,022		348,929
Caterpillar Inc.		7,750		910,548
CBRE Group Inc. Class A^a		4,898		176,720
CBS Corp. Class B NVS		5,828		373,342
CDK Global Inc.		2,542		163,959
Celanese Corp. Series A		2,418		234,594
Celgene Corp.^a		10,478		1,455,709
Centene Corp.^a		2,914		258,909


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
CenterPoint Energy Inc.		6,510	$	192,826
CenturyLink Inc.		7,502		147,939
Cerner Corp.^a		4,216		285,760
CF Industries Holdings Inc.		3,540		102,625
CH Robinson Worldwide Inc.		2,542		179,541
Charles Schwab Corp. (The)		16,864		672,874
Charter Communications Inc. Class A^a		2,945		1,173,700
Cheniere Energy Inc.^a		3,472		148,567
Chevron Corp.		24,986		2,688,993
Chipotle Mexican Grill Inc.^a,b		434		137,452
Chubb Ltd.		5,899		834,237
Church & Dwight Co. Inc.		4,712		236,401
Cigna Corp.		3,596		654,688
Cimarex Energy Co.		1,488		148,339
Cincinnati Financial Corp.		2,356		181,035
Cintas Corp.		1,798		242,748
Cisco Systems Inc.		65,472		2,108,853
CIT Group Inc.		3,720		166,842
Citigroup Inc.		36,828		2,505,409
Citizens Financial Group Inc.		8,460		280,280
Citrix Systems Inc.^a		2,666		208,508
Clorox Co. (The)		2,109		292,160
CME Group Inc.		4,588		577,170
CMS Energy Corp.		4,960		240,758
Coach Inc.		4,216		175,807
Coca-Cola Co. (The)		52,576		2,394,837
Cognizant Technology Solutions Corp. Class A		8,308		587,957
Colgate-Palmolive Co.		11,222		803,944
Comcast Corp. Class A		63,364		2,573,212
Comerica Inc.		3,782		258,122
Conagra Brands Inc.		6,820		221,377
Concho Resources Inc.^a		2,170		240,805
ConocoPhillips		16,368		714,627
Consolidated Edison Inc.		4,464		376,181
Constellation Brands Inc. Class A		2,604		521,060
Continental Resources Inc./OK^a,b		1,620		54,950
Core Laboratories NV		992		87,475
Corning Inc.		15,004		431,515
Costco Wholesale Corp.		5,952		932,916
Coty Inc. Class A		6,718		111,384
CR Bard Inc.		1,116		358,024
Crown Castle International Corp.		5,518		598,372


Security	Shares		Value
Crown Holdings Inc.^a		2,976	$	175,673
CSX Corp.		13,392		672,278
Cummins Inc.		2,356		375,499
CVS Health Corp.		13,578		1,050,123
Danaher Corp.		8,122		677,537
Darden Restaurants Inc.		2,170		178,135
DaVita Inc.^a		2,480		145,229
Deere & Co.		3,782		438,447
Dell Technologies Inc. Class V^a		3,411		255,586
Delphi Automotive PLC		3,676		354,366
Delta Air Lines Inc.		1,632		77,014
DENTSPLY SIRONA Inc.		3,782		213,948
Devon Energy Corp.		6,820		214,148
Dick’s Sporting Goods Inc.		1,860		49,030
Digital Realty Trust Inc.		2,666		315,494
Discover Financial Services		5,642		332,596
Discovery Communications Inc. Class A^a		2,108		46,819
Discovery Communications Inc. Class C NVS^a,b		4,030		84,670
DISH Network Corp. Class A^a		3,348		191,807
Dollar General Corp.		4,092		296,916
Dollar Tree Inc.^a		3,286		261,697
Dominion Energy Inc.		7,998		630,002
Dover Corp.		2,790		236,815
Dow Chemical Co. (The)		14,756		983,487
DR Horton Inc.		5,456		197,234
Dr Pepper Snapple Group Inc.		3,224		293,545
DTE Energy Co.		2,666		299,445
Duke Energy Corp.		8,680		757,764
Duke Realty Corp.		7,688		228,487
DXC Technology Co.		4,265		362,525
Eastman Chemical Co.		2,356		203,087
Eaton Corp. PLC		6,076		436,014
Eaton Vance Corp. NVS		2,480		117,998
eBay Inc.^a		15,190		548,815
Ecolab Inc.		3,906		520,670
Edison International		4,898		392,722
Edwards Lifesciences Corp.^a		3,100		352,346
EI du Pont de Nemours & Co.		11,780		988,695
Electronic Arts Inc.^a		4,402		534,843
Eli Lilly & Co.		13,826		1,123,916
Emerson Electric Co.		8,742		516,128
Entergy Corp.		2,790		220,884


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
EOG Resources Inc.		7,502	$	637,595
EQT Corp.^b		2,560		159,590
Equifax Inc.		1,984		282,660
Equinix Inc.		1,116		522,746
Equity Residential		5,084		341,391
Essex Property Trust Inc.		1,054		280,332
Estee Lauder Companies Inc. (The) Class A		3,100		331,669
Everest Re Group Ltd.		718		181,281
Eversource Energy		4,836		304,668
Exelon Corp.		12,276		464,892
Expedia Inc.		1,798		266,751
Expeditors International of Washington Inc.		3,596		201,736
Express Scripts Holding Co.^a		8,370		525,803
Exxon Mobil Corp.		55,056		4,202,424
F5 Networks Inc.^a		1,302		155,433
Facebook Inc. Class A^a		31,930		5,491,002
Fastenal Co.		4,278		182,542
Federal Realty Investment Trust		1,550		196,742
FedEx Corp.		3,472		744,327
Fidelity National Information Services Inc.		4,464		414,795
Fifth Third Bancorp.		12,152		317,532
First Republic Bank/CA		2,976		288,821
FirstEnergy Corp.		6,448		210,076
Fiserv Inc.^a		3,596		444,861
FleetCor Technologies Inc.^a		1,303		187,332
Flex Ltd.^a		10,726		174,512
FLIR Systems Inc.		3,100		117,800
Flowserve Corp.		2,790		109,591
Fluor Corp.		2,666		102,828
FMC Corp.		2,294		197,789
FNF Group		4,216		203,380
Foot Locker Inc.		2,188		77,083
Ford Motor Co.		43,958		484,857
Fortive Corp.		4,546		295,354
Franklin Resources Inc.		5,394		233,183
Freeport-McMoRan Inc.^a		18,042		266,661
Gap Inc. (The)		3,658		86,402
Garmin Ltd.		1,922		98,983
General Dynamics Corp.		3,658		736,538
General Electric Co.		114,328		2,806,752
General Mills Inc.		7,998		425,973


Security	Shares		Value
General Motors Co.		16,864	$	616,211
Genuine Parts Co.		2,542		210,554
GGP Inc.		8,432		174,964
Gilead Sciences Inc.		17,050		1,427,255
Global Payments Inc.		2,666		254,576
Goldman Sachs Group Inc. (The)		4,774		1,068,135
Goodyear Tire & Rubber Co. (The)		4,092		123,988
H&R Block Inc.		3,472		92,841
Halliburton Co.		11,656		454,234
Hanesbrands Inc.		5,642		136,875
Harley-Davidson Inc.		2,542		119,499
Harris Corp.		2,465		302,949
Hartford Financial Services Group Inc. (The)		5,766		311,768
Hasbro Inc.		1,737		170,660
HCA Healthcare Inc.^a		4,340		341,384
HCP Inc.		6,882		205,152
Helmerich & Payne Inc.		1,612		68,252
Henry Schein Inc.^a,b		1,426		247,668
Hershey Co. (The)		2,418		253,697
Hess Corp.		3,968		154,355
Hewlett Packard Enterprise Co.		23,126		417,656
Hilton Worldwide Holdings Inc.		3,102		199,552
HollyFrontier Corp.		3,038		95,120
Hologic Inc.^a		5,580		215,388
Home Depot Inc. (The)		15,934		2,388,029
Honeywell International Inc.		9,424		1,303,056
Hormel Foods Corp.		4,898		150,565
Host Hotels & Resorts Inc.		10,168		184,244
HP Inc.		24,242		462,537
Humana Inc.		2,108		543,063
Huntington Bancshares Inc./OH		17,150		215,919
IHS Markit Ltd.^a		5,518		258,463
Illinois Tool Works Inc.		4,712		647,947
Illumina Inc.^a		2,170		443,678
Incyte Corp.^a		2,666		366,335
Ingersoll-Rand PLC		3,968		338,828
Intel Corp.		60,947		2,137,411
Intercontinental Exchange Inc.		8,308		537,278
International Business Machines Corp.		11,656		1,667,158
International Flavors & Fragrances Inc.		1,426		195,148
International Paper Co.		5,456		293,915


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
Interpublic Group of Companies Inc. (The)		6,882	$	138,603
Intuit Inc.		3,596		508,654
Intuitive Surgical Inc.^a		620		622,895
Invesco Ltd.		6,510		213,398
Iron Mountain Inc.		4,235		166,944
Jacobs Engineering Group Inc.		2,480		135,135
Jazz Pharmaceuticals PLC^a,b		992		148,165
JB Hunt Transport Services Inc.		1,612		159,411
JM Smucker Co. (The)		1,922		201,349
Johnson & Johnson		36,580		4,842,095
Johnson Controls International PLC		12,777		505,841
JPMorgan Chase & Co.		47,616		4,327,818
Juniper Networks Inc.		6,944		192,557
Kansas City Southern		1,922		198,792
Kellogg Co.		3,906		255,687
KeyCorp		16,740		288,095
Kimberly-Clark Corp.		4,774		588,586
Kimco Realty Corp.		7,276		142,755
Kinder Morgan Inc./DE		26,226		506,949
KLA-Tencor Corp.		3,410		319,483
Kohl’s Corp.		2,914		115,919
Kraft Heinz Co. (The)		7,750		625,813
Kroger Co. (The)		13,206		288,815
L Brands Inc.		3,534		128,001
L3 Technologies Inc.		1,364		247,539
Laboratory Corp. of America Holdings^a		1,674		262,600
Lam Research Corp.		2,955		490,471
Las Vegas Sands Corp.		5,518		343,275
Leggett & Platt Inc.		2,790		128,256
Leucadia National Corp.		6,200		146,816
Level 3 Communications Inc.^a		4,650		253,100
Liberty Global PLC Series A^a,b		3,844		130,696
Liberty Global PLC Series C NVS^a		7,936		262,126
Liberty Interactive Corp. QVC Group Series A^a		7,440		164,573
Liberty Media Corp.-Liberty SiriusXM Class C^a		4,774		212,968
Liberty Property Trust		3,162		134,701
Lincoln National Corp.		3,472		235,610
LKQ Corp.^a		5,332		184,754
Lockheed Martin Corp.		3,436		1,049,320
Loews Corp.		4,340		202,157


Security	Shares		Value
Lowe’s Companies Inc.		11,594	$	856,681
lululemon athletica Inc.^a,b		1,736		99,907
LyondellBasell Industries NV Class A		4,712		426,860
M&T Bank Corp.		2,294		339,191
Macerich Co. (The)		1,984		104,696
Macy’s Inc.		4,402		91,430
Mallinckrodt PLC^a		1,737		71,356
ManpowerGroup Inc.		1,240		138,272
Marathon Oil Corp.		12,649		140,657
Marathon Petroleum Corp.		7,440		390,228
Markel Corp.^a		248		260,894
Marriott International Inc./MD Class A		4,658		482,476
Marsh & McLennan Companies Inc.		6,821		532,584
Martin Marietta Materials Inc.		992		210,294
Marvell Technology Group Ltd.		7,440		133,250
Masco Corp.		5,704		209,736
MasterCard Inc. Class A		12,710		1,694,243
Mattel Inc.		4,960		80,451
Maxim Integrated Products Inc.		4,650		216,969
McCormick & Co. Inc./MD NVS		2,542		241,820
McDonald’s Corp.		10,974		1,755,511
McKesson Corp.		2,976		444,347
Medtronic PLC		17,856		1,439,551
Merck & Co. Inc.		36,828		2,351,836
MetLife Inc.		12,028		563,271
MGM Resorts International		7,254		239,092
Michael Kors Holdings Ltd.^a		2,480		104,706
Microchip Technology Inc.		4,030		349,804
Micron Technology Inc.^a		14,920		476,992
Microsoft Corp.		98,332		7,352,284
Mohawk Industries Inc.^a		992		251,095
Molson Coors Brewing Co. Class B		2,666		239,274
Mondelez International Inc. Class A		20,584		836,945
Monsanto Co.		5,890		690,308
Monster Beverage Corp.^a		5,766		321,858
Moody’s Corp.		2,914		390,563
Morgan Stanley		19,902		905,541
Mosaic Co. (The)		5,022		100,340
Motorola Solutions Inc.		2,666		234,928
Murphy Oil Corp.		2,852		64,626
Mylan NV^a		6,882		216,645
Nasdaq Inc.		2,170		163,575


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
National Oilwell Varco Inc.		5,456	$	167,336
Navient Corp.		6,944		91,661
NetApp Inc.		4,092		158,197
Netflix Inc.^a		5,890		1,029,042
New York Community Bancorp. Inc.		9,858		118,789
Newell Brands Inc.		6,596		318,455
Newfield Exploration Co.^a,b		3,136		81,944
Newmont Mining Corp.		8,122		311,397
News Corp. Class A		6,079		81,276
NextEra Energy Inc.		6,342		954,534
Nielsen Holdings PLC		4,960		192,696
NIKE Inc. Class B		17,484		923,330
Noble Energy Inc.		6,696		159,164
Nordstrom Inc.		2,170		96,825
Norfolk Southern Corp.		4,030		485,696
Northern Trust Corp.		3,224		285,324
Northrop Grumman Corp.		2,356		641,327
Nucor Corp.		4,526		249,428
NVIDIA Corp.		7,502		1,271,139
O’Reilly Automotive Inc.^a,b		1,426		279,681
Occidental Petroleum Corp.		10,230		610,731
Omnicom Group Inc.		3,534		255,791
ONEOK Inc.		5,396		292,247
Oracle Corp.		39,990		2,012,697
PACCAR Inc.		5,084		337,222
Palo Alto Networks Inc.^a		1,550		205,670
Parker-Hannifin Corp.		2,232		359,106
Patterson Companies Inc.		1,736		66,836
Paychex Inc.		4,712		268,725
PayPal Holdings Inc.^a		15,686		967,512
Pentair PLC		3,162		196,202
People’s United Financial Inc.		8,928		149,098
PepsiCo Inc.		18,414		2,131,052
Perrigo Co. PLC		2,108		166,448
Pfizer Inc.		78,430		2,660,346
PG&E Corp.		6,758		475,628
Philip Morris International Inc.		20,708		2,421,386
Phillips 66		6,262		524,818
Pinnacle West Capital Corp.		2,294		206,391
Pioneer Natural Resources Co.		2,356		305,455
Plains GP Holdings LP Class A		2,356		52,963
PNC Financial Services Group Inc. (The)^d		6,510		816,419
PPG Industries Inc.		3,844		401,006


Security	Shares		Value
PPL Corp.		9,566	$	375,370
Praxair Inc.		3,720		489,329
Priceline Group Inc. (The)^a		682		1,263,119
Principal Financial Group Inc.		4,154		259,708
Procter & Gamble Co. (The)		33,520		3,092,890
Progressive Corp. (The)		8,805		409,256
Prologis Inc.		7,564		479,255
Prudential Financial Inc.		5,890		601,251
Public Service Enterprise Group Inc.		7,626		357,202
Public Storage		2,170		445,588
PulteGroup Inc.		5,580		144,076
PVH Corp.		1,240		156,104
Qorvo Inc.^a		2,307		168,919
QUALCOMM Inc.		19,592		1,024,074
Quest Diagnostics Inc.		2,480		268,708
Ralph Lauren Corp.		992		87,187
Range Resources Corp.		3,472		60,274
Raytheon Co.		4,154		756,070
Realty Income Corp.		4,154		239,104
Red Hat Inc.^a		3,203		344,323
Regency Centers Corp.		3,162		203,380
Regeneron Pharmaceuticals Inc.^a		1,116		554,540
Regions Financial Corp.		20,026		282,567
Reinsurance Group of America Inc.		832		111,862
RenaissanceRe Holdings Ltd.		403		56,081
Republic Services Inc.		4,216		275,052
Robert Half International Inc.		2,604		117,961
Rockwell Automation Inc.		2,108		345,838
Rockwell Collins Inc.		2,480		325,004
Roper Technologies Inc.		1,674		386,125
Ross Stores Inc.		5,952		347,894
Royal Caribbean Cruises Ltd.		2,356		293,228
S&P Global Inc.		3,906		602,813
salesforce.com Inc.^a		8,866		846,614
SBA Communications Corp.^a		1,984		304,643
SCANA Corp.		2,418		145,999
Schlumberger Ltd.		17,805		1,130,796
Scripps Networks Interactive Inc. Class A		1,364		116,827
Seagate Technology PLC		4,402		138,795
SEI Investments Co.		3,348		195,724
Sempra Energy		3,162		372,895
ServiceNow Inc.^a		2,604		302,559
Sherwin-Williams Co. (The)		1,178		399,660


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
Signet Jewelers Ltd.		1,116	$	70,386
Simon Property Group Inc.		4,157		652,025
Sirius XM Holdings Inc.^b		40,424		232,438
Skyworks Solutions Inc.		2,852		300,487
SL Green Realty Corp.		1,576		151,895
Southern Co. (The)		11,718		565,511
Southwest Airlines Co.		2,108		109,911
Splunk Inc.^a		2,294		153,904
Sprint Corp.^a		14,328		118,206
Stanley Black & Decker Inc.		2,356		339,264
Staples Inc.		11,160		113,999
Starbucks Corp.		19,158		1,051,008
State Street Corp.		5,263		486,775
Stericycle Inc.^a		1,426		102,515
Stryker Corp.		4,464		631,076
SunTrust Banks Inc.		7,254		399,695
Symantec Corp.		10,501		314,820
Synchrony Financial		11,722		360,920
Synopsys Inc.^a		3,472		279,218
Sysco Corp.		7,440		391,865
T Rowe Price Group Inc.		3,596		303,359
T-Mobile U.S. Inc.^a		4,588		296,889
Target Corp.		7,316		398,941
TD Ameritrade Holding Corp.		4,030		174,580
TE Connectivity Ltd.		4,898		389,881
TechnipFMC PLC^a		7,502		193,777
Tesla Inc.^a,b		1,798		639,908
Texas Instruments Inc.		13,082		1,083,451
Textron Inc.		4,526		222,181
Thermo Fisher Scientific Inc.		5,394		1,009,433
Tiffany & Co.		2,046		187,004
Time Warner Inc.		10,292		1,040,521
TJX Companies Inc. (The)		8,928		645,494
Toll Brothers Inc.		3,844		149,762
Torchmark Corp.		2,243		172,644
Total System Services Inc.		3,100		214,272
Tractor Supply Co.		2,108		125,447
TransDigm Group Inc.		806		210,092
Travelers Companies Inc. (The)		3,844		465,816
Trimble Inc.^a		4,464		172,668
TripAdvisor Inc.^a		1,984		84,776
Twenty-First Century Fox Inc. Class A		16,988		468,699
Twenty-First Century Fox Inc. Class B		3,720		100,812


Security	Shares		Value
Twitter Inc.^a,b		10,354	$	175,086
Tyson Foods Inc. Class A		4,464		282,571
U.S. Bancorp.		21,886		1,121,658
UDR Inc.		4,898		190,140
Ulta Salon Cosmetics & Fragrance Inc.^a		930		205,539
Under Armour Inc. Class A^a,b		2,790		45,059
Under Armour Inc. Class C^a,b		2,802		42,310
Union Pacific Corp.		10,974		1,155,562
United Parcel Service Inc. Class B		8,618		985,554
United Rentals Inc.^a		1,550		182,993
United Technologies Corp.		10,168		1,217,313
UnitedHealth Group Inc.		12,834		2,552,683
Universal Health Services Inc. Class B		1,364		147,489
Unum Group		3,658		176,242
Valero Energy Corp.		6,324		430,664
Varian Medical Systems Inc.^a		2,046		217,388
Ventas Inc.		5,094		348,633
VEREIT Inc.		15,996		135,006
VeriSign Inc.^a,b		1,984		205,840
Verisk Analytics Inc. Class A^a		2,542		206,029
Verizon Communications Inc.		53,568		2,569,657
Vertex Pharmaceuticals Inc.^a		3,720		597,209
VF Corp.		5,022		315,733
Viacom Inc. Class B NVS		4,960		141,856
Visa Inc. Class A		24,428		2,528,787
VMware Inc. Class A^a,b		1,178		127,342
Vornado Realty Trust		2,604		193,972
Vulcan Materials Co.		2,170		263,134
Wal-Mart Stores Inc.		20,398		1,592,472
Walgreens Boots Alliance Inc.		11,780		960,070
Walt Disney Co. (The)		20,274		2,051,729
Waste Connections Inc.		4,557		303,906
Waste Management Inc.		6,014		463,740
Waters Corp.^a		1,612		295,770
Weatherford International PLC^a,b		15,810		60,552
WEC Energy Group Inc.		5,024		327,665
Wells Fargo & Co.		63,116		3,223,334
Welltower Inc.		5,022		367,711
Western Digital Corp.		4,170		368,086
Western Union Co. (The)		8,370		158,360
WestRock Co.		3,791		215,746
Weyerhaeuser Co.		10,788		351,797


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017


Security	Shares		Value
Whirlpool Corp.		1,178	$	202,168
Williams Companies Inc. (The)		11,780		350,219
Willis Towers Watson PLC		1,798		266,949
Workday Inc. Class A^a		1,923		210,934
WR Berkley Corp.		2,914		194,189
WW Grainger Inc.		930		151,190
Wyndham Worldwide Corp.		1,798		179,225
Wynn Resorts Ltd.		1,240		172,348
Xcel Energy Inc.		7,192		356,004
Xerox Corp.		3,208		103,522
Xilinx Inc.		4,154		274,413
XL Group Ltd.		4,154		170,148
Xylem Inc./NY		4,216		261,687
Yum! Brands Inc.		5,208		400,079
Zillow Group Inc. Class C^a,b		2,561		101,467
Zimmer Biomet Holdings Inc.		2,666		304,644
Zoetis Inc.		7,440		466,488

				300,078,906

TOTAL COMMON STOCKS
(Cost: $463,923,702)				506,782,728

PREFERRED STOCKS — 0.16%

GERMANY — 0.16%
Henkel AG & Co. KGaA, Preference Shares		2,418		323,554
Porsche Automobil Holding SE, Preference Shares		2,046		115,811
Volkswagen AG, Preference Shares		2,542		378,830

				818,195

TOTAL PREFERRED STOCKS
(Cost: $906,404)				818,195

SHORT-TERM INVESTMENTS — 1.60%

MONEY MARKET FUNDS — 1.60%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^d,e,f		7,849,531		7,851,886
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		287,312		287,312

				8,139,198

TOTAL SHORT-TERM INVESTMENTS
(Cost: $8,137,689)				8,139,198


	Value
TOTAL INVESTMENTS IN SECURITIES — 101.17%
(Cost: $472,967,795)^g	$	515,740,121
Other Assets, Less Liabilities — (1.17)%		(5,971,002	)

NET ASSETS — 100.00%	$	509,769,119

ADR — American Depositary Receipts

NVS — Non-Voting Shares

SDR — Swedish Depositary Receipts

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $475,199,620. Net unrealized appreciation was $40,540,501, of which $63,671,589 represented gross unrealized appreciation on investments and $23,131,088 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI WORLD ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss) ^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		4,756,712		3,092,819	^b		—			7,849,531	$	7,851,886	$	(411	)	$	1,509	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		204,920		82,392	^b		—			287,312		287,312		36			—		2,224
BlackRock Inc.		1,080		682			(150	)		1,612		675,444		5,742			61,535		13,907
PNC Financial Services Group Inc. (The)		4,120		2,802			(412	)		6,510		816,419		2,821			162,793		13,153

											$	9,631,061	$	8,188		$	225,837	$	29,284

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	506,468,657	$	314,071	$	—	$	506,782,728
Preferred stocks		818,195		—		—		818,195
Money market funds		8,139,198		—		—		8,139,198

Total	$	515,426,050	$	314,071	$	—	$	515,740,121

See notes to financial statements.


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Frontier 100 ETF			iShares MSCI World ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	556,283,798		$	463,592,008
Affiliated (Note 2)		8,436,484			9,375,787

Total cost of investments in securities	$	564,720,282		$	472,967,795

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	628,641,146		$	506,109,060
Affiliated (Note 2)		8,437,147			9,631,061
Foreign currency, at value^b		6,694,488			568,894
Cash		299,890			—
Receivables:
Investment securities sold		24,725,674			—
Dividends and interest		469,197			1,180,105
Tax reclaims		980			234,387

Total Assets		669,268,522			517,723,507


LIABILITIES
Payables:
Investment securities purchased		25,656,188			—
Collateral for securities on loan (Note 1)		4,575,931			7,850,788
Due to custodian		—			320
Foreign taxes		2,151,599			—
Deferred foreign capital gains taxes (Note 1)		8,845,202			—
Investment advisory fees (Note 2)		413,490			103,280

Total Liabilities		41,642,410			7,954,388


NET ASSETS	$	627,626,112		$	509,769,119


Net assets consist of:
Paid-in capital	$	673,974,723		$	469,373,305
Undistributed net investment income		4,578,443			1,667,798
Accumulated net realized loss		(114,440,558	)		(4,057,176	)
Net unrealized appreciation		63,513,504			42,785,192

NET ASSETS	$	627,626,112		$	509,769,119


Shares outstanding^c		20,500,000			6,200,000


Net asset value per share	$	30.62		$	82.22

^a	Securities on loan with values of $4,508,851 and $7,581,645, respectively. See Note 1.

^b	Cost of foreign currency: $6,686,011 and $563,249, respectively.

^c	$0.001 par value, number of shares authorized: 500 million and 500 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Frontier 100 ETF			iShares MSCI World ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	18,897,332		$	9,792,364
Dividends — affiliated (Note 2)		30,087			29,284
Interest — unaffiliated		11,531			—
Securities lending income — affiliated — net (Note 2)		25,538			48,512

		18,964,488			9,870,160
Less: Other foreign taxes (Note 1)		—			(170	)

Total investment income		18,964,488			9,869,990


EXPENSES
Investment advisory fees (Note 2)		4,353,023			950,275
Proxy fees		12,648			9,593
Commitment fees (Note 7)		5,929			—
Interest expense (Note 7)		11,360			—

Total expenses		4,382,960			959,868

Net investment income		14,581,528			8,910,122


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated^b		(15,643,309	)		(862,930	)
Investments — affiliated (Note 2)		618			328
In-kind redemptions — unaffiliated		2,451,790			4,060,500
In-kind redemptions — affiliated (Note 2)		—			7,824
Foreign currency transactions		(1,938,594	)		(7,850	)
Realized gain distributions from affiliated funds		—			36

Net realized gain (loss)		(15,129,495	)		3,197,908

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated^c		133,144,498			48,748,649
Investments — affiliated (Note 2)		663			225,837
Translation of assets and liabilities in foreign currencies		6,839			21,213

Net change in unrealized appreciation/depreciation		133,152,000			48,995,699

Net realized and unrealized gain		118,022,505			52,193,607

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	132,604,033		$	61,103,729

^a	Net of foreign withholding tax of $1,315,985 and $452,753, respectively.

^b	Net of foreign capital gains taxes of $571,529 and $ —, respectively.

^c	Net of deferred foreign capital gains taxes of $8,845,202 and $ —, respectively.

See notes to financial statements.


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Frontier 100 ETF						iShares MSCI World ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	14,581,528		$	13,480,226		$	8,910,122		$	5,617,187
Net realized gain (loss)		(15,129,495	)		(60,711,158	)		3,197,908			(540,768	)
Net change in unrealized appreciation/depreciation		133,152,000			16,637,146			48,995,699			9,321,554

Net increase (decrease) in net assets resulting from operations		132,604,033			(30,593,786	)		61,103,729			14,397,973


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(6,259,265	)		(9,930,758	)		(8,262,836	)		(5,779,653	)

Total distributions to shareholders		(6,259,265	)		(9,930,758	)		(8,262,836	)		(5,779,653	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		117,275,876			31,628,173			196,779,133			131,162,561
Cost of shares redeemed		(23,717,030	)		(86,373,632	)		(28,454,357	)		(58,019,921	)

Net increase (decrease) in net assets from capital share transactions		93,558,846			(54,745,459	)		168,324,776			73,142,640

INCREASE (DECREASE) IN NET ASSETS		219,903,614			(95,270,003	)		221,165,669			81,760,960

NET ASSETS
Beginning of year		407,722,498			502,992,501			288,603,450			206,842,490

End of year	$	627,626,112		$	407,722,498		$	509,769,119		$	288,603,450

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	4,578,443		$	(2,465,352	)	$	1,667,798		$	966,142


SHARES ISSUED AND REDEEMED
Shares sold		4,500,000			1,200,000			2,600,000			1,900,000
Shares redeemed		(850,000	)		(3,550,000	)		(400,000	)		(900,000	)

Net increase (decrease) in shares outstanding		3,650,000			(2,350,000	)		2,200,000			1,000,000

See notes to financial statements.


FINANCIAL STATEMENTS			33

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Frontier 100 ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Period from Sep. 12, 2012^a to Aug. 31, 2013
Net asset value, beginning of period	$	24.20		$	26.20		$	37.79		$	30.12		$	25.25

Income from investment operations:
Net investment income^b		0.72			0.76			0.77			1.09			0.67
Net realized and unrealized gain (loss)^c		6.00			(2.17	)		(8.78	)		7.47			4.51

Total from investment operations		6.72			(1.41	)		(8.01	)		8.56			5.18

Less distributions from:
Net investment income		(0.30	)		(0.59	)		(0.76	)		(0.89	)		(0.28	)
Net realized gain		—			—			(2.82	)		—			—
Return of capital		—			—			—			—			(0.03	)

Total distributions		(0.30	)		(0.59	)		(3.58	)		(0.89	)		(0.31	)

Net asset value, end of period	$	30.62		$	24.20		$	26.20		$	37.79		$	30.12


Total return		27.91	%		(5.45	)%		(21.70	)%		28.56	%		20.54	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	627,626		$	407,722		$	502,993		$	799,349		$	280,084
Ratio of expenses to average net assets^e		0.80	%		0.79	%		0.79	%		0.79	%		0.79	%
Ratio of net investment income to average net assets^e		2.65	%		3.03	%		2.43	%		3.07	%		2.32	%
Portfolio turnover rate^f		32	%		20	%		47	%		61	%		18	%^d

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and the period ended August 31, 2013 were 31%, 19%, 45%, 42% and 10%, respectively. See Note 4.

See notes to financial statements.


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)



	iShares MSCI World ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	72.15		$	68.95		$	73.36		$	61.76		$	53.45

Income from investment operations:
Net investment income^a		1.74			1.62			1.64			1.81			1.40
Net realized and unrealized gain (loss)^b		9.90			3.16			(4.49	)		11.16			8.03

Total from investment operations		11.64			4.78			(2.85	)		12.97			9.43

Less distributions from:
Net investment income		(1.57	)		(1.58	)		(1.56	)		(1.37	)		(1.12	)

Total distributions		(1.57	)		(1.58	)		(1.56	)		(1.37	)		(1.12	)

Net asset value, end of year	$	82.22		$	72.15		$	68.95		$	73.36		$	61.76


Total return		16.29	%		7.05	%		(3.97	)%		21.07	%		17.84	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	509,769		$	288,603		$	206,842		$	168,728		$	24,704
Ratio of expenses to average net assets		0.24	%		0.24	%		0.24	%		0.24	%		0.24	%
Ratio of net investment income to average net assets		2.25	%		2.34	%		2.25	%		2.57	%		2.34	%
Portfolio turnover rate^c		3	%		5	%		5	%		5	%		5	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


FINANCIAL HIGHLIGHTS			35

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF		Diversification Classification
MSCI Frontier 100		Diversified
MSCI World		Diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•

Fixed income investments are valued using the last available bid price or current market quotations provided by dealers or prices (including evaluated prices) supplied by approved independent third-party pricing services. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

data, credit quality information, perceived market movements, news, and other relevant information and by other methods, which may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type; indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing services generally value fixed income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller odd lot sizes.

•

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

•

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

•


NOTES TO FINANCIAL STATEMENTS			37

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

DISTRIBUTIONS TO SHAREHOLDERS

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			39

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Frontier 100
Citigroup Global Markets Inc.	$	694,620	$	694,620	$	—
Jefferies LLC		102,150		102,150		—
JPMorgan Securities LLC		1,638,350		1,638,350		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		2,073,731		2,073,731		—

	$	4,508,851	$	4,508,851	$	—

MSCI World
Barclays Capital Inc.	$	44,275	$	44,275	$	—
BNP Paribas New York Branch		148,165		147,857		(308	)
BNP Paribas Prime Brokerage Inc.		47,895		47,895		—
BNP Paribas Prime Brokerage International Ltd.		37,566		37,566		—
Citigroup Global Markets Inc.		474,600		474,600		—
Credit Suisse Securities (USA) LLC		36,874		36,874		—
Deutsche Bank Securities Inc.		201,581		201,581		—
Goldman Sachs & Co.		703,330		703,330		—
HSBC Bank PLC		17,102		17,102		—
JPMorgan Securities LLC		605,394		605,394		—
Merrill Lynch, Pierce, Fenner & Smith		477,738		477,738		—
Morgan Stanley & Co. LLC		480,671		480,671		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		403,582		403,582		—
State Street Bank & Trust Company		3,766,749		3,766,749		—
UBS AG		45,280		45,280		—
UBS Securities LLC		61,366		61,366		—
Wells Fargo Securities LLC		29,477		29,477		—

	$	7,581,645	$	7,581,337	$	(308	)

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

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


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Frontier 100	$	7,530
MSCI World		13,816

For the year ended August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
MSCI Frontier 100	$	601,870	$	750,168
MSCI World		1,099,652		1,104,539


NOTES TO FINANCIAL STATEMENTS			41

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
MSCI Frontier 100	$	260,906,035	$	174,041,843
MSCI World		17,275,339		12,270,680

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Frontier 100	$	15,022,532	$	5,862,175
MSCI World		193,812,798		28,111,576

4.	*CAPITAL SHARE TRANSACTIONS*

5.	*PRINCIPAL RISKS*


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

MARKET RISK

CREDIT RISK


NOTES TO FINANCIAL STATEMENTS			43

Notes to Financial Statements (Continued)

iSHARES^®, INC.

6.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, the characterization of expenses, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Frontier 100	$	2,158,952	$	(1,278,468	)	$	(880,484	)
MSCI World		3,697,476		54,370			(3,751,846	)

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
MSCI Frontier 100
Ordinary income	$	6,259,265	$	9,930,758


MSCI World
Ordinary income	$	8,262,836	$	5,779,653

As of August 31, 2017, 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	$	5,546,798	$	(88,012,787	)	$	36,117,378	$	(46,348,611	)
MSCI World		2,110,678		(2,268,231	)		40,553,367		40,395,814

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

As of August 31, 2017, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
MSCI Frontier 100	$	88,012,787
MSCI World		2,268,231


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

7.	*LINE OF CREDIT*

The iShares MSCI Frontier 100 ETF, along with certain other iShares funds, is a party to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

For the year ended August 31, 2017, the Fund’s maximum amount borrowed, the average borrowings and the weighted average interest rate under the credit agreement were $35,000,000, $767,123 and 1.23%, respectively.

8.	*LEGAL PROCEEDINGS*

9.	*SUBSEQUENT EVENTS*


NOTES TO FINANCIAL STATEMENTS			45

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares MSCI Frontier 100 ETF and iShares MSCI World ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Frontier 100 ETF and iShares MSCI World ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
MSCI Frontier 100	$	7,876,852
MSCI World		9,716,904

For corporate shareholders, the percentage of income dividends paid by the iShares MSCI World ETF during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction was 48.68%.

For the fiscal year ended August 31, 2017, the iShares MSCI Frontier 100 ETF earned foreign source income of $20,212,058 and paid foreign taxes of $1,887,515 which it intends to pass through to its shareholders.


TAX INFORMATION			47

Board Review and Approval of Investment Advisory

Contracts

iSHARES^®, INC.

I. iShares MSCI Frontier 100 ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:

The Board also noted that the investment advisory fee rate and overall expenses (net of waivers and reimbursements) for the Fund were higher than the median of the investment advisory fee rates and overall expenses (net of waivers and reimbursements) of the funds in its Peer Group, excluding iShares funds. The Board further noted that the Fund’s pricing reflects the additional complexity associated with investing in frontier markets, as compared to the funds in the Peer Group, which have little or no frontier market exposure.


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contracts (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACTS			49

Board Review and Approval of Investment Advisory

Contracts (Continued)

iSHARES^®, INC.

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contracts (Continued)

iSHARES^®, INC.

II. iShares MSCI World ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACTS			51

Board Review and Approval of Investment Advisory

Contracts (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contracts (Continued)

iSHARES^®, INC.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACTS			53

Board Review and Approval of Investment Advisory

Contracts (Continued)

iSHARES^®, INC.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
MSCI Frontier 100	$	0.218114	$	—	$	0.082626	$	0.300740		73	%		—	%		27	%		100	%
MSCI World		1.562360		—		0.008481		1.570841		99			—			1			100

Premium/Discount Information


SUPPLEMENTAL INFORMATION			55

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Frontier 100 ETF

Period Covered: September 12, 2012 through June 30, 2017


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%		23		1.90
Greater than 2.5% and Less than 3.0%		52		4.30
Greater than 2.0% and Less than 2.5%		92		7.62
Greater than 1.5% and Less than 2.0%		220		18.22
Greater than 1.0% and Less than 1.5%		208		17.23
Greater than 0.5% and Less than 1.0%		120		9.93
Greater than 0.0% and Less than 0.5%		76		6.29
At NAV		4		0.33
Less than 0.0% and Greater than –0.5%		73		6.04
Less than –0.5% and Greater than –1.0%		113		9.35
Less than –1.0% and Greater than –1.5%		101		8.36
Less than –1.5% and Greater than –2.0%		62		5.13
Less than –2.0% and Greater than –2.5%		40		3.31
Less than –2.5% and Greater than –3.0%		17		1.41
Less than –3.0% and Greater than –3.5%		3		0.25
Less than –3.5% and Greater than –4.0%		2		0.17
Less than –4.0%		1		0.08

		1,208		100.00	%


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI World ETF

Period Covered: January 10, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 2.5% and Less than 3.0%		2		0.15	%
Greater than 2.0% and Less than 2.5%		37		2.69
Greater than 1.5% and Less than 2.0%		49		3.56
Greater than 1.0% and Less than 1.5%		78		5.67
Greater than 0.5% and Less than 1.0%		261		18.97
Greater than 0.0% and Less than 0.5%		774		56.25
At NAV		9		0.65
Less than 0.0% and Greater than –0.5%		153		11.12
Less than –0.5% and Greater than –1.0%		11		0.80
Less than –1.0% and Greater than –1.5%		1		0.07
Less than –1.5%		1		0.07

		1,376		100.00	%

Regulation under the Alternative Investment Fund Managers Directive

BFA has registered the iShares MSCI Frontier 100 ETF (the “Fund”) for marketing to investors in the United Kingdom, the Netherlands, Finland, Sweden and Luxembourg.

Report on Remuneration

Disclosures are provided in relation to 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.


SUPPLEMENTAL INFORMATION			57

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

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, 2016 was USD 54.54 thousand. This figure is comprised of fixed remuneration of USD 21.45 thousand and variable remuneration of USD 33.08 thousand. There were a total of 325 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, 2016, to its senior management was USD 7.54 thousand, and to members of its staff whose actions have a material impact on the risk profile of the Fund was USD 1.82 thousand.


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

iSHARES^®, INC.

Interested Directors

^a	Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. 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.


DIRECTOR AND OFFICER INFORMATION			59

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


DIRECTOR AND OFFICER INFORMATION			61

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-811-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares MSCI Global Agriculture Producers ETF | VEGI | NYSE Arca

^Ø

iShares MSCI Global Energy Producers ETF | FILL | NYSE Arca

^Ø

iShares MSCI Global Gold Miners ETF | RING | NASDAQ

^Ø

iShares MSCI Global Metals & Mining Producers ETF | PICK | BATS

^Ø

iShares MSCI Global Silver Miners ETF | SLVP | BATS

Table of Contents


Management's Discussions of Fund Performance			5
About Fund Performance			16
Shareholder Expenses			16
Schedules of Investments			17
iShares MSCI Global Agriculture Producers ETF			17
iShares MSCI Global Energy Producers ETF			21
iShares MSCI Global Gold Miners ETF			26
iShares MSCI Global Metals & Mining Producers ETF			28
iShares MSCI Global Silver Miners ETF			33
Financial Statements			35
Financial Highlights			42
Notes to Financial Statements			47
Report of Independent Registered Public Accounting Firm			60
Tax Information			61
Board Review and Approval of Investment Advisory Contract			62
Supplemental Information			66
Director and Officer Information			70

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		13.53%		13.88%		13.74%		13.53%		13.88%		13.74%
5 Years		3.64%		3.56%		3.72%		19.58%		19.14%		20.02%
Since Inception		3.43%		3.44%		3.53%		20.73%		20.83%		21.40%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,049.30	$	1.91	$	1,000.00	$	1,023.30	$	1.89		0.37%


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

The iShares MSCI Global Agriculture Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of agriculture, as represented by the MSCI ACWI Select Agriculture Producers Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 13.53%, net of fees, while the total return for the Index was 13.74%.

The Index posted a solid gain for the reporting period despite generally lower prices for most agricultural commodities. After near-record crop yields in 2016, crop production surveys indicated a slowdown in 2017, but not enough to meaningfully reduce agricultural inventories. Consequently, the prices for many agricultural crops declined for the reporting period. Other food-related commodity prices also eased, resulting in a 5% decline in a broad global food price index for the reporting period.

Within the Index, the agricultural and farm machinery industry contributed the most to the Index’s return for the reporting period. Agricultural machinery companies benefited from signs of stabilization after several years of declining demand, as well as an increase in merger and acquisition activity.

Fertilizer and agricultural chemicals stocks were also meaningful contributors to the Index’s return for the reporting period, amid a significant increase in mergers and acquisitions, particularly among some of the largest companies in the industry. The food products industry was another contributor to the Index’s performance, led by packaged food and meats producers.

On a country basis, agricultural producers in the U.S., the largest country weight at about 48% of the Index on average, contributed the most to the Index’s return for the reporting period. Agricultural stocks in Japan, Norway, and Italy were also significant contributors to the Index’s performance. On the downside, small Index weights in China and Indonesia detracted modestly from the Index’s performance.

With regard to currency effects, an approximate 6% gain in the euro and 5% gain in the Canadian dollar relative to the U.S. dollar contributed to the Index’s return for the reporting period, while an approximate 6% decline in the Japanese yen against the U.S. dollar detracted from the Index’s performance.

ALLOCATION BY SECTOR

As of 8/31/17


Sector/Investment Type		Percentage of Total Investments*


Materials	40.44	%
Food, Beverage & Tobacco	34.72
Capital Goods	22.01
Investment Companies	2.83

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


United States	50.92	%
Canada	8.53
Japan	8.15
Norway	6.47
Italy	3.31
India	2.83
Hong Kong	2.41
Singapore	2.11
Germany	2.00
Malaysia	1.95

TOTAL	88.68	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		2.26%		2.43%		1.87%		2.26%		2.43%		1.87%
5 Years		(2.02)%		(1.94)%		(2.15)%		(9.68)%		(9.35)%		(10.30)%
Since Inception		(2.48)%		(2.47)%		(2.60)%		(13.09)%		(13.06)%		(13.68)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	972.40	$	1.94	$	1,000.00	$	1,023.20	$	1.99		0.39%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

The iShares MSCI Global Energy Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of energy exploration and production, as represented by the MSCI ACWI Select Energy Producers Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 2.26%, net of fees, while the total return for the Index was 1.87%.

The relatively flat return for the Index during the reporting period masked some meaningful volatility. The Index rose sharply in late 2016 along with the price of oil after OPEC members responded to record global crude oil inventories by agreeing to reduce their daily output levels. However, the Index declined steadily over the remainder of the reporting period as rising oil and gas production in the U.S., led by a resurgence in U.S. shale oil production, kept inventories high. In addition, many OPEC countries failed to fully comply with the reduced output agreement. The end result was an ongoing excess of supply that kept the price of oil below $50 per barrel, down from a peak of more than $110 per barrel in 2013.

Oil prices below $50 per barrel continued to pressure the profitability of oil and gas exploration and production companies, which detracted from the Index’s return for the reporting period. In contrast, oil and gas refining and marketing companies contributed the most to the Index’s return as relatively lower input costs led to higher refining profit margins.

Integrated oil and gas companies, which have both production and refining businesses, contributed meaningfully to the Index’s return as strength in refining more than offset weakness on the production side.

On a country basis, energy producers in the U.K. contributed the most to the Index’s performance for the reporting period, followed by energy producers in India, France, and Russia. On the downside, North American energy producers detracted from performance as rising energy output in the U.S. and Canada led to excess supply and record-high U.S. oil inventories.

Currency fluctuations had a mixed effect on the Index’s performance for the reporting period due to the approximately 6% gain in the euro, 5% gain in the Canadian dollar, and 2% decline in the British pound relative to the U.S. dollar.

ALLOCATION BY SECTOR

As of 8/31/17


Sector	Percentage of Total Investments*
Integrated Oil & Gas		62.24	%
Oil & Gas Exploration & Production		26.26
Oil & Gas Refining & Marketing		9.66
Coal & Consumable Fuels		1.84

TOTAL		100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country	Percentage of Total Investments*
United States		48.48	%
United Kingdom		16.83
Canada		8.25
France		5.87
Russia		2.62
China		2.38
India		2.08
Italy		2.01
Australia		1.60
Japan		1.54

TOTAL		91.66	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(4.30)%		(3.81)%		(3.61)%		(4.30)%		(3.81)%		(3.61)%
5 Years		(12.10)%		(12.13)%		(11.97)%		(47.53)%		(47.61)%		(47.13)%
Since Inception		(14.29)%		(14.20)%		(14.16)%		(57.74)%		(57.49)%		(57.36)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,054.60	$	2.02	$	1,000.00	$	1,023.20	$	1.99		0.39%


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

The iShares MSCI Global Gold Miners ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of gold mining, as represented by the MSCI ACWI Select Gold Miners Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was -4.30%, net of fees, while the total return for the Index was -3.61%.

The decline in the Index for the reporting period mirrored a similar decline in the price of gold, which declined by approximately 4%. Gold has traditionally served as a hedge against rising inflation and economic and political uncertainty. During the reporting period, global inflation generally remained low, falling to its lowest level in eight years, even as global economic conditions improved. Low inflation and increased confidence in the global economy weighed on demand for gold.

Gold also faced competition from cryptocurrencies such as bitcoin, which some investors view as an alternative to gold. In times of political upheaval during the reporting period — such as the U.S. presidential election in November 2016, or escalating tensions between the U.S. and North Korea in August 2017 — the prices of both gold and bitcoin rose simultaneously.

Gold production declined in the first half of 2017, for the first time since 2008. Changes to mining policies in several countries contributed to the slowdown in gold supply, which helped limit the gold price decline.

From a country perspective, gold mining stocks in South Africa detracted the most from the Index’s return for the reporting period. A conflict between gold mining companies and the South African government over a proposed new mining charter weighed on South African gold mining stocks. Canada, the largest country weight in the Index, also detracted from the Index’s performance for the reporting period. On the positive side, Australian gold mining stocks contributed the most to the Index’s return for the reporting period.

Currency fluctuations had a mixed effect on the Index’s performance for the reporting period due to the approximately 12% gain of the South African rand, the 2% decline of the British pound, and the 5% gain of both the Australian dollar and the Canadian dollar relative to the U.S. dollar.

ALLOCATION BY COUNTRY

As of 8/31/17

Country

Percentage of

Total Investments*


Canada	53.76	%
United States	14.70
Australia	11.58
South Africa	9.88
United Kingdom	6.62
Peru	2.36
Turkey	1.10

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security

Percentage of

Total Investments*


Barrick Gold Corp. (Canada)	14.18	%
Newmont Mining Corp.	13.85
Newcrest Mining Ltd. (Australia)	9.07
Goldcorp Inc. (Canada)	7.56
Agnico Eagle Mines Ltd. (Canada)	4.61
Randgold Resources Ltd. (United Kingdom)	4.50
Kinross Gold Corp. (Canada)	4.48
AngloGold Ashanti Ltd. (South Africa)	3.20
Gold Fields Ltd. (South Africa)	3.19
IAMGOLD Corp. (Canada)	2.87

TOTAL	67.51	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		50.55%		52.12%		50.24%		50.55%		52.12%		50.24%
5 Years		0.50%		0.36%		0.57%		2.53%		1.83%		2.86%
Since Inception		(4.09)%		(4.01)%		(4.07)%		(20.81)%		(20.44)%		(20.71)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,123.00	$	2.09	$	1,000.00	$	1,023.20	$	1.99		0.39%


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

The iShares MSCI Global Metals & Mining Producers ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in mining, extraction or production of diversified metals, excluding gold and silver, as represented by the MSCI ACWI Select Metals & Mining Producers ex Gold & Silver Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 50.55%, net of fees, while the total return for the Index was 50.24%.

The Index’s strong return for the reporting period reflected improving global economic growth, which helped drive increased demand for raw materials worldwide. In particular, a recovery in the Chinese economy, one of the world’s largest consumers of raw materials, provided support for metals and minerals prices. Collectively, metals and minerals prices increased by approximately 28% in U.S. dollar terms for the reporting period, led by copper, zinc, lead, iron ore, and aluminum. The primary exception was the price of platinum, which declined modestly for the reporting period amid growing supply and weaker demand.

Within the Index, metals and mining stocks in the U.K., the largest country weight in the Index on average, contributed the most to the Index’s return for the reporting period. Australian metals and mining companies also contributed meaningfully to the Index’s performance. The mining industry represents a major component of Australia’s economy, and a significant portion of its metals exports go to China. Other leading contributors to the Index’s return included Brazil, the U.S., and Canada.

From an industry perspective, diversified metals and mining companies, the largest industry weight in the Index on average, contributed the most to the Index’s performance for the reporting period. Steel producers were also key contributors to the Index’s return as they benefited from an increase of nearly 50% in steel prices. Copper and aluminum producers were other notable contributors to the Index’s performance.

Currency fluctuations had a mixed effect on the Index’s performance for the reporting period. On the positive side, the Canadian and Australian dollars gained about 5% relative to the U.S. dollar, and the Brazilian real gained approximately 3%. However, the British pound declined by approximately 2% and the Japanese yen declined by about 6% relative to the U.S. dollar for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17

Sector

Percentage of

Total Investments*


Diversified Metals & Mining	51.06	%
Steel	35.77
Copper	7.61
Aluminum	4.00
Precious Metals & Minerals	1.56

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17

Country

Percentage of

Total Investments*


United Kingdom	26.49	%
Australia	17.44
United States	10.95
Japan	8.78
Brazil	5.60
Canada	5.19
South Korea	4.33
Russia	2.58
Netherlands	2.40
Germany	2.03

TOTAL	85.79	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			13

Management’s Discussion of Fund Performance

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		(13.26)%		(13.98)%		(13.44)%		(13.26)%		(13.98)%		(13.44)%
5 Years		(9.85)%		(9.74)%		(9.86)%		(40.45)%		(40.08)%		(40.48)%
Since Inception		(11.51)%		(11.69)%		(11.49)%		(49.49)%		(50.07)%		(49.41)%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 1/31/12. The first day of secondary market trading was 2/2/12.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	981.10	$	1.95	$	1,000.00	$	1,023.20	$	1.99		0.39%


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

The iShares MSCI Global Silver Miners ETF (the “Fund”) seeks to track the investment results of an index composed of global equities of companies primarily engaged in the business of silver mining, as represented by the MSCI ACWI Select Silver Miners Investable Market Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was -13.26%, net of fees, while the total return for the Index was -13.44%.

The decline in the Index for the reporting period mirrored a similar decline in the price of silver, which declined by approximately 13%. Along with gold, silver has traditionally been considered a store of value, serving as a hedge against rising inflation and a hedge against economic and political uncertainty. During the reporting period, global inflation generally remained low, falling to its lowest level in eight years, even as global economic conditions improved. Low inflation and increased confidence in the global economy weighed on investor demand for silver.

However, silver also has industrial uses, ranging from consumer electronics to brazing alloys to solar panels. Currently, more than half of the demand for silver comes from the industrials sector. Industrial demand for silver was steady in 2016 as strong growth in solar panel usage offset declines in other uses.

On the supply side, global silver mine output declined modestly in 2016, for the first time in 14 years, and production is expected to decline further in 2017. The majority of mined silver is a by-product of other mining operations.

From a country perspective, silver stocks in Canada, the largest country weight in the Index on average, detracted the most from the Index’s return for the reporting period. Silver mining stocks in the U.S. were also meaningful detractors from the Index’s return. On the positive side, silver mining stocks in Mexico, Peru, and the U.K. were modest contributors to the Index’s return for the reporting period.

Currency fluctuations had a mixed effect on the Index’s performance for the reporting period due to the approximately 5% gain of the Canadian dollar, the 6% gain of the Mexican peso, and the 2% decline of the British pound relative to the U.S. dollar.

ALLOCATION BY COUNTRY

As of 8/31/17

Country

Percentage of

Total Investments*


Canada	57.57	%
United Kingdom	15.38
United States	11.91
Mexico	9.75
Peru	4.48
China	0.91

TOTAL	100.00	%

TEN LARGEST FUND HOLDINGS

As of 8/31/17

Security

Percentage of

Total Investments*


Wheaton Precious Metals Corp. (Canada)	22.96	%
Fresnillo PLC (United Kingdom)	12.39
Industrias Penoles SAB de CV (Mexico)	9.75
Hecla Mining Co.	4.52
Cia. de Minas Buenaventura SAA ADR (Peru)	4.48
Pan American Silver Corp. (Canada)	4.45
Coeur Mining Inc.	4.21
SSR Mining Inc. (Canada)	3.83
Tahoe Resources Inc. (Canada)	3.64
First Majestic Silver Corp. (Canada)	3.41

TOTAL	73.64	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			15

About Fund Performance

Shareholder Expenses


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 95.24%

AUSTRALIA — 1.61%
Australian Agricultural Co. Ltd.^a,b		24,801	$	31,375
Costa Group Holdings Ltd.		22,008		92,515
GrainCorp Ltd. Class A		17,808		121,893
Inghams Group Ltd.		13,881		40,626
Nufarm Ltd./Australia		15,771		111,453
Select Harvests Ltd.^b		5,229		17,046
Tassal Group Ltd.		13,944		43,022

				457,930
BRAZIL — 0.35%
Sao Martinho SA		12,600		69,879
SLC Agricola SA		4,200		29,633

				99,512
CANADA — 8.47%
Ag Growth International Inc.		1,407		65,258
Agrium Inc.		11,256		1,099,609
Clearwater Seafoods Inc.		2,772		24,476
Potash Corp. of Saskatchewan Inc.		68,292		1,183,637
Rogers Sugar Inc.		7,014		36,140

				2,409,120
CHINA — 1.08%
China Agri-Industries Holdings Ltd.		168,200		78,658
China BlueChemical Ltd. Class H		168,000		51,732
China Huishan Dairy Holdings Co. Ltd.^b,c		315,000		—
China Modern Dairy Holdings Ltd.^a		105,000		20,661
China Shengmu Organic Milk Ltd.^a,d		273,000		45,346
COFCO Meat Holdings Ltd.^a,b		168,000		33,701
First Tractor Co. Ltd. Class H		42,000		19,588
Hubei Sanonda Co. Ltd. Class B^a		12,900		12,692
Sinofert Holdings Ltd.^a,b		252,000		34,774
YuanShengTai Dairy Farm Ltd.^a		189,000		8,694

				305,846
FINLAND — 0.09%
Ponsse OYJ		903		25,261

				25,261
FRANCE — 0.16%
Naturex^a,b		462		46,139

				46,139
GERMANY — 1.99%
K+S AG Registered^b		15,918		378,877
KWS Saat SE		147		61,169


Security	Shares		Value
Suedzucker AG		5,880	$	124,854

				564,900
HONG KONG — 2.39%
WH Group Ltd.^d		651,000		680,408

				680,408
INDONESIA — 0.89%
Charoen Pokphand Indonesia Tbk PT		588,000		122,078
Eagle High Plantations Tbk PT^a		1,010,100		16,202
Japfa Comfeed Indonesia Tbk PT		352,800		31,731
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		268,800		27,702
PT Tunas Baru Lampung Tbk		266,700		27,985
Salim Ivomas Pratama Tbk PT		176,400		6,584
Sawit Sumbermas Sarana Tbk PT		186,900		21,013

				253,295
IRELAND — 0.26%
Origin Enterprises PLC		9,870		75,335

				75,335
ISRAEL — 0.82%
Israel Chemicals Ltd.		40,887		176,240
Israel Corp. Ltd. (The)^a		294		56,101

				232,341
ITALY — 3.29%
CNH Industrial NV		82,593		935,796

				935,796
JAPAN — 8.10%
Hokuto Corp.		2,100		37,569
Iseki & Co. Ltd.		2,100		43,332
Kubota Corp.		86,100		1,489,500
Kumiai Chemical Industry Co. Ltd.^b		4,200		25,072
Maruha Nichiro Corp.		4,200		121,734
Mitsui Sugar Co. Ltd.		2,100		71,266
NH Foods Ltd.		14,000		410,867
Nippon Beet Sugar Manufacturing Co. Ltd.		700		15,264
Sakata Seed Corp.^b		2,100		65,064
YAMABIKO Corp.		2,100		24,080

				2,303,748
MALAYSIA — 1.93%
Felda Global Ventures Holdings Bhd^b		126,000		45,732
Genting Plantations Bhd		18,900		47,090
IOI Corp. Bhd^b		174,300		185,300


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2017


Security	Shares		Value
Kuala Lumpur Kepong Bhd		35,700	$	205,146
QL Resources Bhd		58,850		66,422

				549,690
MEXICO — 0.24%
Industrias Bachoco SAB de CV Series B		12,600		67,084

				67,084
NETHERLANDS — 0.50%
ForFarmers NV		1,365		16,967
OCI NV^a,b		6,615		125,322

				142,289
NORWAY — 6.43%
Austevoll Seafood ASA		7,203		74,300
Bakkafrost P/F		3,360		156,429
Grieg Seafood ASA		5,250		51,961
Leroy Seafood Group ASA		24,507		162,543
Marine Harvest ASA		32,718		648,064
Norway Royal Salmon ASA		1,360		29,718
Salmar ASA		4,095		118,431
Yara International ASA		14,406		587,546

				1,828,992
PAKISTAN — 0.48%
Engro Corp. Ltd./Pakistan		23,100		62,254
Engro Fertilizers Ltd.		31,967		17,591
Fauji Fertilizer Bin Qasim Ltd.		31,500		10,040
Fauji Fertilizer Co. Ltd.		33,600		22,632
Millat Tractors Ltd.		2,100		23,246

				135,763
POLAND — 0.25%
Grupa Azoty SA		3,738		72,074

				72,074
RUSSIA — 0.47%
PhosAgro PJSC GDR^e		9,618		133,690

				133,690
SINGAPORE — 2.10%
Bumitama Agri Ltd.		39,900		21,742
China XLX Fertiliser Ltd.		42,000		11,270
First Resources Ltd.^b		46,200		63,449
Golden Agri-Resources Ltd.		571,200		166,144
Indofood Agri Resources Ltd.		12,600		4,407
Japfa Ltd.^b		27,300		11,057
Wilmar International Ltd.		130,200		318,309

				596,378


Security	Shares		Value
SOUTH AFRICA — 0.46%
Astral Foods Ltd.		3,276	$	39,067
Oceana Group Ltd.		3,045		21,947
Tongaat Hulett Ltd.		7,770		70,912

				131,926
SOUTH KOREA — 0.40%
Dongwon Industries Co. Ltd.		126		32,181
Easy Bio Inc.		2,835		16,769
Farmsco		1,302		14,318
Harim Co. Ltd.		3,066		13,011
Namhae Chemical Corp.		2,856		23,986
Sajo Industries Co. Ltd.		189		12,638

				112,903
SWEDEN — 0.08%
Scandi Standard AB		3,024		22,327

				22,327
TAIWAN — 0.36%
Charoen Pokphand Enterprise		21,000		45,647
Taiwan Fertilizer Co. Ltd.		42,000		56,016

				101,663
THAILAND — 0.90%
Charoen Pokphand Foods PCL NVDR		221,600		181,858
GFPT PCL NVDR		51,500		29,779
Khon Kaen Sugar Industry PCL NVDR		153,454		20,611
Thaifoods Group PCL NVDR^a		121,800		22,559

				254,807
TURKEY — 0.12%
Gubre Fabrikalari TAS^a		12,726		18,541
Turk Traktor ve Ziraat Makineleri AS		651		15,650

				34,191
UNITED KINGDOM — 0.41%
Sirius Minerals PLC^a		332,556		116,942

				116,942
UNITED STATES — 50.61%
AGCO Corp.		5,208		356,488
AgroFresh Solutions Inc.^a		2,394		17,045
American Vanguard Corp.		2,247		45,502
Archer-Daniels-Midland Co.		45,885		1,895,968
Bunge Ltd.		11,256		840,035
Cal-Maine Foods Inc.^a,b		2,415		88,027
CF Industries Holdings Inc.		19,215		557,043
Darling Ingredients Inc.^a		12,873		223,990


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2017


Security	Shares		Value
Deere & Co.		21,987	$	2,548,953
FMC Corp.		11,046		952,386
Fresh Del Monte Produce Inc.		2,667		125,322
Ingredion Inc.		5,670		702,059
Lindsay Corp.^b		924		79,991
Monsanto Co.		35,616		4,174,195
Mosaic Co. (The)		27,321		545,873
Omega Protein Corp.		1,806		28,535
Sanderson Farms Inc.		1,680		247,834
Scotts Miracle-Gro Co. (The) Class A		3,864		369,360
Titan International Inc.		4,578		39,279
Toro Co. (The)		8,946		551,789

				14,389,674

TOTAL COMMON STOCKS
(Cost: $28,277,036)				27,080,024

INVESTMENT COMPANIES — 2.82%

INDIA — 2.82%
iShares India 50 ETF^b,f		22,680		800,604

				800,604

TOTAL INVESTMENT COMPANIES
(Cost: $667,409)				800,604

PREFERRED STOCKS — 1.33%

CHILE — 1.33%
Sociedad Quimica y Minera de Chile SA Series B, Preference Shares		8,106		378,806

				378,806

TOTAL PREFERRED STOCKS
(Cost: $225,393)				378,806

SHORT-TERM INVESTMENTS — 6.76%

MONEY MARKET FUNDS — 6.76%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^f,g,h		1,885,655		1,886,221
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^f,g		37,102		37,102

				1,923,323

TOTAL SHORT-TERM INVESTMENTS
(Cost: $1,923,196)				1,923,323


	Value
TOTAL INVESTMENTS IN SECURITIES — 106.15%
(Cost: $31,093,034)ⁱ	$	30,182,757
Other Assets, Less Liabilities — (6.15)%		(1,748,430	)

NET ASSETS — 100.00%	$	28,434,327


GDR		— Global Depositary Receipts
NVDR		— Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

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

^f	Affiliated issuer. See Schedule 1.

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

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

ⁱ

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $31,325,816. Net unrealized depreciation was $1,143,059, of which $3,677,488 represented gross unrealized appreciation on investments and $4,820,547 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL AGRICULTURE PRODUCERS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		202,370		1,683,285	^b		—			1,885,655	$	1,886,221	$	(46	)	$	128	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		11,859		25,243	^b		—			37,102		37,102		3			—		1,148
iShares India 50 ETF		18,711		9,155			(5,186	)		22,680		800,604		34,049			88,891		1,556

											$	2,723,927	$	34,006		$	89,019	$	2,704

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3			Total
Investments:
Assets:
Common stocks	$	27,080,024	$	—	$	0	^a	$	27,080,024
Investment companies		800,604		—		—			800,604
Preferred stocks		378,806		—		—			378,806
Money market funds		1,923,323		—		—			1,923,323

Total	$	30,182,757	$	—	$	0	^a	$	30,182,757

Rounds to less than $1.

See notes to financial statements.


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.36%

AUSTRALIA — 1.59%
Beach Energy Ltd.		18,786	$	9,983
Karoon Gas Australia Ltd.^a,b		4,454		4,010
Oil Search Ltd.		21,335		113,546
Santos Ltd.^a		27,914		83,246
Whitehaven Coal Ltd.^a		8,619		23,926
Woodside Petroleum Ltd.		11,679		267,058

				501,769
AUSTRIA — 0.42%
OMV AG		2,329		133,712

				133,712
BRAZIL — 0.66%
Petroleo Brasileiro SA^a		45,900		203,792
QGEP Participacoes SA		1,700		4,074

				207,866
CANADA — 8.19%
Advantage Oil & Gas Ltd.^a,b		2,941		18,672
ARC Resources Ltd.		5,394		70,558
Athabasca Oil Corp.^a		4,862		3,606
Baytex Energy Corp.^a,b		3,266		8,232
Birchcliff Energy Ltd.^b		3,060		14,424
Bonavista Energy Corp.		3,434		7,532
Bonterra Energy Corp.		476		6,181
Cameco Corp.		6,392		63,831
Canacol Energy Ltd.^a		1,258		4,214
Canadian Natural Resources Ltd.		17,085		524,235
Cardinal Energy Ltd.		2,720		9,090
Cenovus Energy Inc.		15,640		121,877
Crescent Point Energy Corp.		8,177		55,894
Crew Energy Inc.^a		3,009		10,008
Denison Mines Corp.^a,b		8,466		4,119
Encana Corp.		15,334		142,485
Enerplus Corp.		3,570		31,578
Freehold Royalties Ltd.		1,241		13,828
Husky Energy Inc.^a		5,457		63,591
Imperial Oil Ltd.		4,386		128,948
Kelt Exploration Ltd.^a		2,149		10,319
MEG Energy Corp.^a,b		3,264		13,043
NexGen Energy Ltd.^a		5,033		11,722
NuVista Energy Ltd.^a		2,482		13,145
Obsidian Energy Ltd.^a		6,460		6,441
Painted Pony Energy Ltd.^a		1,649		4,393
Paramount Resources Ltd. Class A^a,b		663		11,322


Security	Shares		Value
Parex Resources Inc.^a		2,176	$	22,337
Pengrowth Energy Corp.^a,b		9,555		5,944
Peyto Exploration & Development Corp.		2,771		47,364
PrairieSky Royalty Ltd.		3,128		73,201
Raging River Exploration Inc.^a		3,281		17,115
Seven Generations Energy Ltd. Class A^a		3,952		59,922
Spartan Energy Corp.^a		1,615		7,278
Suncor Energy Inc.		25,364		791,620
Surge Energy Inc.		4,624		7,339
TORC Oil & Gas Ltd.		1,326		5,394
Tourmaline Oil Corp.^a		3,638		70,685
Trilogy Energy Corp.^a		510		2,327
Vermilion Energy Inc.		2,006		65,120
Whitecap Resources Inc.		5,202		37,259

				2,586,193
CHINA — 2.37%
China Coal Energy Co. Ltd. Class H^b		34,000		17,116
China Shenhua Energy Co. Ltd. Class H		51,000		131,305
CNOOC Ltd.		272,000		325,297
Inner Mongolia Yitai Coal Co. Ltd. Class B		15,300		19,921
MIE Holdings Corp.^a		32,000		2,862
PetroChina Co. Ltd. Class H		340,000		217,212
Yanzhou Coal Mining Co. Ltd. Class H		34,000		34,146

				747,859
COLOMBIA — 0.12%
Ecopetrol SA		83,470		38,833

				38,833
FINLAND — 0.28%
Neste OYJ		1,989		87,589

				87,589
FRANCE — 5.83%
Esso SA Francaise^a		119		7,937
Etablissements Maurel et Prom^a,b		1,088		4,579
Total SA		35,394		1,828,162

				1,840,678
GREECE — 0.10%
Hellenic Petroleum SA		739		6,695
Motor Oil Hellas Corinth Refineries SA		1,065		23,931

				30,626
HUNGARY — 0.20%
MOL Hungarian Oil & Gas PLC		680		63,023

				63,023


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2017


Security	Shares		Value
INDIA — 2.06%
Reliance Industries Ltd. GDR^c		13,175	$	651,504

				651,504
INDONESIA — 0.43%
Adaro Energy Tbk PT		227,800		31,160
Bumi Resources Tbk PT^a		411,400		7,030
Harum Energy Tbk PT^a		13,600		2,365
Indo Tambangraya Megah Tbk PT		6,800		9,913
Medco Energi Internasional Tbk PT^a		23,800		5,887
PT Delta Dunia Makmur Tbk^a		76,500		5,504
Sugih Energy Tbk PT^a		618,000		2,316
Tambang Batubara Bukit Asam Persero Tbk PT		11,900		11,038
United Tractors Tbk PT		27,200		61,772

				136,985
ISRAEL — 0.15%
Jerusalem Oil Exploration^a		68		3,509
Naphtha Israel Petroleum Corp. Ltd.^a		1,038		7,000
Oil Refineries Ltd.		31,263		14,522
Paz Oil Co. Ltd.		136		21,621

				46,652
ITALY — 2.00%
Eni SpA		39,202		613,817
Saras SpA		6,562		16,149

				629,966
JAPAN — 1.53%
Cosmo Energy Holdings Co. Ltd.		1,700		35,140
Idemitsu Kosan Co. Ltd.		1,700		41,488
INPEX Corp.		15,300		146,105
Japan Petroleum Exploration Co. Ltd.		100		1,917
JXTG Holdings Inc.		45,900		222,035
Showa Shell Sekiyu KK		3,400		37,225

				483,910
NEW ZEALAND — 0.02%
New Zealand Refining Co. Ltd. (The)		2,550		4,621

				4,621
NORWAY — 1.20%
Aker BP ASA		1,904		34,752
DNO ASA^a		9,690		15,158
Statoil ASA		17,323		327,318

				377,228


Security	Shares		Value
PAKISTAN — 0.07%
Oil & Gas Development Co. Ltd.		10,200	$	13,681
Pakistan Oilfields Ltd.		1,776		8,110

				21,791
PHILIPPINES — 0.02%
Petron Corp.		34,000		6,512

				6,512
POLAND — 0.58%
Grupa Lotos SA^a		1,649		27,162
Lubelski Wegiel Bogdanka SA		127		2,701
Polski Koncern Naftowy ORLEN SA		4,641		153,124

				182,987
PORTUGAL — 0.33%
Galp Energia SGPS SA		6,324		104,584

				104,584
RUSSIA — 2.43%
Lukoil PJSC		4,029		203,271
Lukoil PJSC ADR		2,380		119,595
Novatek PJSC GDR^d		1,418		149,882
Rosneft Oil Co. PJSC		9,280		48,833
Rosneft Oil Co. PJSC GDR		9,003		46,815
Surgutneftegas OJSC		49,300		22,806
Surgutneftegas OJSC ADR		4,496		20,565
Tatneft PJSC Class S		23,290		153,997

				765,764
SOUTH AFRICA — 0.11%
Exxaro Resources Ltd.		3,553		35,775

				35,775
SOUTH KOREA — 0.80%
S-Oil Corp.		748		83,251
SK Innovation Co. Ltd.		1,020		170,513

				253,764
SPAIN — 1.01%
Repsol SA		18,655		320,042

				320,042
SWEDEN — 0.21%
Lundin Petroleum AB^a,b		3,026		64,837

				64,837
THAILAND — 0.53%
Bangchak Corp. PCL NVDR		8,500		9,727
Banpu PCL NVDR		28,900		15,318
Esso Thailand PCL NVDR^a		23,800		8,673


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2017


Security	Shares		Value
IRPC PCL NVDR		195,500	$	35,032
PTT Exploration & Production PCL NVDR		22,131		58,318
Thai Oil PCL NVDR		13,600		38,603

				165,671
TURKEY — 0.21%
Tupras Turkiye Petrol Rafinerileri AS		1,940		65,911

				65,911
UNITED ARAB EMIRATES — 0.03%
Dana Gas PJSC^a		47,413		8,261

				8,261
UNITED KINGDOM — 16.72%
Amerisur Resources PLC^a,b		21,046		4,068
BP PLC		295,920		1,697,392
Cairn Energy PLC^a		9,945		21,977
EnQuest PLC ADR^a,b		21,505		6,997
Faroe Petroleum PLC^a		6,018		6,669
Hurricane Energy PLC^a,b		20,179		7,215
Nostrum Oil & Gas PLC^a		1,139		5,560
Ophir Energy PLC^a,b		12,954		12,936
Pantheon Resources PLC^a,b		2,193		1,243
Premier Oil PLC^a,b		10,506		7,513
Royal Dutch Shell PLC Class A ADR		67,014		1,836,684
Royal Dutch Shell PLC Class B		57,341		1,596,323
SOCO International PLC		3,706		5,683
Sound Energy PLC^a,b		8,772		5,482
Stobart Group Ltd.		5,423		20,474
Tullow Oil PLC^a,b		21,539		43,324

				5,279,540
UNITED STATES — 48.16%
Anadarko Petroleum Corp.		8,568		350,688
Andeavor		2,329		233,249
Antero Resources Corp.^a,b		3,298		64,938
Apache Corp.		5,814		225,816
Arch Coal Inc. Class A		340		27,156
Bill Barrett Corp.^a,b		799		2,389
Cabot Oil & Gas Corp.		6,970		178,084
California Resources Corp.^a,b		649		5,062
Callon Petroleum Co.^a,b		3,077		31,878
Carrizo Oil & Gas Inc.^a,b		1,190		15,994
Centennial Resource Development Inc./DE Class A^a,b		1,377		23,808
Chesapeake Energy Corp.^a,b		13,430		48,885
Chevron Corp.		28,696		3,088,264


Security	Shares		Value
Cimarex Energy Co.		1,513	$	150,831
Concho Resources Inc.^a		2,312		256,563
ConocoPhillips		18,802		820,895
CONSOL Energy Inc.^a		2,924		42,544
Continental Resources Inc./OK^a,b		1,496		50,744
CVR Energy Inc.		340		7,283
Delek U.S. Holdings Inc.		1,303		32,210
Denbury Resources Inc.^a		6,188		6,559
Devon Energy Corp.		7,582		238,075
Diamondback Energy Inc.^a,b		1,394		126,561
Eclipse Resources Corp.^a,b		1,071		2,495
Energen Corp.^a		1,547		79,330
Energy XXI Gulf Coast Inc.^a		340		3,553
EOG Resources Inc.		8,806		748,422
EQT Corp.		2,669		166,385
Extraction Oil & Gas Inc.^a		1,513		19,881
Exxon Mobil Corp.		63,699		4,862,145
Gran Tierra Energy Inc.^a,b		5,491		11,147
Gulfport Energy Corp.^a		2,329		29,182
Halcon Resources Corp.^a		1,479		9,155
Hess Corp.		4,420		171,938
HollyFrontier Corp.		2,686		84,099
Jagged Peak Energy Inc.^a		204		2,613
Kosmos Energy Ltd.^a,b		3,400		23,936
Laredo Petroleum Inc.^a		2,414		29,982
Marathon Oil Corp.		13,158		146,317
Marathon Petroleum Corp.		7,565		396,784
Matador Resources Co.^a,b		1,394		32,871
Murphy Oil Corp.		2,737		62,020
Newfield Exploration Co.^a,b		3,196		83,512
Noble Energy Inc.		7,225		171,738
Oasis Petroleum Inc.^a		3,383		24,696
Occidental Petroleum Corp.		11,543		689,117
Par Pacific Holdings Inc.^a		425		7,569
Parsley Energy Inc. Class A^a		3,349		83,892
PBF Energy Inc. Class A		1,683		39,853
PDC Energy Inc.^a		935		36,774
Pioneer Natural Resources Co.		2,601		337,220
QEP Resources Inc.^a		3,519		26,568
Range Resources Corp.		3,723		64,631
Resolute Energy Corp.^a		255		7,535
Ring Energy Inc.^a		816		9,727
RSP Permian Inc.^a		1,802		56,547
Sanchez Energy Corp.^a,b		705		3,088
SandRidge Energy Inc.^a		323		5,562


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2017


Security	Shares		Value
SM Energy Co.		1,581	$	21,122
Southwestern Energy Co.^a		7,531		41,044
SRC Energy Inc.^a		2,822		22,266
Tellurian Inc.^a,b		850		7,854
Valero Energy Corp.		6,885		468,869
Whiting Petroleum Corp.^a		5,355		23,937
WPX Energy Inc.^a		6,069		60,629

				15,204,481

TOTAL COMMON STOCKS
(Cost: $35,050,585)				31,048,934

PREFERRED STOCKS — 0.99%

BRAZIL — 0.82%
Petroleo Brasileiro SA, Preference Shares		59,500		258,124

				258,124

RUSSIA — 0.17%
Surgutneftegas OJSC, Preference Shares		112,200		55,390

				55,390

TOTAL PREFERRED STOCKS
(Cost: $240,375)				313,514

SHORT-TERM INVESTMENTS — 2.16%

MONEY MARKET FUNDS — 2.16%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		656,714		656,911
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		25,717		25,717

				682,628

TOTAL SHORT-TERM INVESTMENTS
(Cost: $682,534)				682,628

TOTAL INVESTMENTS IN SECURITIES — 101.51%
(Cost: $35,973,494)^h				32,045,076
Other Assets, Less Liabilities — (1.51)%				(476,989	)

NET ASSETS — 100.00%			$	31,568,087


ADR		— American Depositary Receipts
GDR		— Global Depositary Receipts
NVDR		— Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $36,433,997. Net unrealized depreciation was $4,388,921, of which $1,577,346 represented gross unrealized appreciation on investments and $5,966,267 represented gross unrealized depreciation on investments.


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL ENERGY PRODUCERS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		379,615		277,099	^b		—			656,714	$	656,911	$	(17	)	$	94	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		25,744		—			(27	)^b		25,717		25,717		8			—		227

											$	682,628	$	(9	)	$	94	$	227

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	31,048,934	$	—	$	—	$	31,048,934
Preferred stocks		313,514		—		—		313,514
Money market funds		682,628		—		—		682,628

Total	$	32,045,076	$	—	$	—	$	32,045,076

See notes to financial statements.


SCHEDULES OF INVESTMENTS			25

Schedule of Investments

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.94%

AUSTRALIA — 11.58%
Newcrest Mining Ltd.		1,956,539	$	35,459,278
Resolute Mining Ltd.		2,729,302		2,619,342
St. Barbara Ltd.^a,b		2,248,270		5,028,666
Westgold Resources Ltd.^a		1,535,806		2,192,623

				45,299,909
CANADA — 53.73%
Agnico Eagle Mines Ltd.		352,715		18,007,806
Alacer Gold Corp.^a		1,910,430		3,337,062
Alamos Gold Inc. Class A^b		921,679		7,645,433
Asanko Gold Inc.^a,b		1,108,879		1,362,053
Barrick Gold Corp.		3,091,096		55,448,653
Centerra Gold Inc.		918,346		5,493,595
China Gold International Resources Corp. Ltd.^a,b		1,654,153		2,981,763
Eldorado Gold Corp.		2,831,527		5,804,207
Endeavour Mining Corp.^a,b		230,812		4,565,613
Goldcorp Inc.		2,160,051		29,564,487
Guyana Goldfields Inc.^a,b		643,591		2,566,664
IAMGOLD Corp.^a		1,695,018		11,207,736
Kinross Gold Corp.^a		3,860,917		17,522,327
Kirkland Lake Gold Ltd.^b		730,921		9,485,212
New Gold Inc.^a,b		2,244,218		8,359,321
Richmont Mines Inc.^a,b		414,291		3,790,164
SEMAFO Inc.^a		1,571,197		4,411,257
SSR Mining Inc.^a,b		398,224		4,141,847
Tahoe Resources Inc.		985,833		4,686,393
Yamana Gold Inc.		3,336,405		9,819,609

				210,201,202
PERU — 2.35%
Cia. de Minas Buenaventura SAA ADR		686,310		9,217,143

				9,217,143
SOUTH AFRICA — 9.87%
AngloGold Ashanti Ltd.		1,235,593		12,516,113
Gold Fields Ltd.		2,798,492		12,487,981
Harmony Gold Mining Co. Ltd.		1,901,992		3,781,302
Sibanye Gold Ltd.		6,153,315		9,832,995

				38,618,391
TURKEY — 1.10%
Koza Altin Isletmeleri AS^a		464,013		4,319,526

				4,319,526


Security	Shares		Value
UNITED KINGDOM — 6.62%
Acacia Mining PLC		236,978	$	618,045
Centamin PLC		3,930,215		7,672,383
Randgold Resources Ltd.		172,775		17,609,974

				25,900,402
UNITED STATES — 14.69%
McEwen Mining Inc.		1,285,871		3,304,689
Newmont Mining Corp.		1,412,869		54,169,397

				57,474,086


TOTAL COMMON STOCKS (Cost: $379,919,005)				391,030,659

SHORT-TERM INVESTMENTS — 1.32%

MONEY MARKET FUNDS — 1.32%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		5,122,703		5,124,240
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		27,472		27,472

				5,151,712

TOTAL SHORT-TERM INVESTMENTS (Cost: $5,150,875)				5,151,712

TOTAL INVESTMENTS IN SECURITIES — 101.26%
(Cost: $385,069,880)^f				396,182,371
Other Assets, Less Liabilities — (1.26)%				(4,935,702	)

NET ASSETS — 100.00%			$	391,246,669


ADR		— American Depositary Receipts

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $399,621,049. Net unrealized depreciation was $3,438,678, of which $32,778,377 represented gross unrealized appreciation on investments and $36,217,055 represented gross unrealized depreciation on investments.


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL GOLD MINERS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		2,229,494		2,893,209	^b		—			5,122,703	$	5,124,240	$	(3,210	)	$	837	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		352,827		—			(325,355	)^b		27,472		27,472		6			—		1,845

											$	5,151,712	$	(3,204	)	$	837	$	1,845

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	391,030,659	$	—	$	—	$	391,030,659
Money market funds		5,151,712		—		—		5,151,712

Total	$	396,182,371	$	—	$	—	$	396,182,371

See notes to financial statements.


SCHEDULES OF INVESTMENTS			27

Schedule of Investments

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 98.56%

AUSTRALIA — 17.36%
A.C.N. 004 410 833 Ltd.^a,b,c		727,228	$	6
Alumina Ltd.		1,096,976		1,844,540
BHP Billiton Ltd.		1,430,734		31,070,448
BlueScope Steel Ltd.		252,008		2,172,696
Fortescue Metals Group Ltd.		684,738		3,264,030
Galaxy Resources Ltd.^a,b		175,810		264,943
Iluka Resources Ltd.		191,404		1,437,660
Independence Group NL		230,208		615,326
Jacana Minerals Ltd.^a,b,c		6,808		—
Mineral Resources Ltd.		68,452		805,160
Orocobre Ltd.^a,b		90,252		276,312
OZ Minerals Ltd.		134,724		866,605
Pilbara Minerals Ltd.^a,b		629,148		177,148
Rio Tinto Ltd.		189,878		10,216,818
Sandfire Resources NL		76,082		357,239
Sims Metal Management Ltd.		72,594		857,911
South32 Ltd.		2,383,830		5,520,944
Syrah Resources Ltd.^a,b		117,066		278,553
Western Areas Ltd.^a,b		128,620		275,440

				60,301,779
AUSTRIA — 0.74%
Voestalpine AG		49,486		2,564,569

				2,564,569
BELGIUM — 0.30%
Bekaert SA		15,914		757,563
Nyrstar NV^a,b		39,240		281,967

				1,039,530
BRAZIL — 4.59%
Cia. Siderurgica Nacional SA^b		261,600		722,498
Vale SA		1,365,463		15,223,644

				15,946,142
CANADA — 5.16%
Altius Minerals Corp.^a		20,056		195,641
Dominion Diamond Corp.		38,150		537,980
First Quantum Minerals Ltd.		308,252		3,700,253
HudBay Minerals Inc.		106,166		922,152
Imperial Metals Corp.^b		29,212		90,170
Ivanhoe Mines Ltd. Class A^a,b		282,964		1,022,394
Labrador Iron Ore Royalty Corp.		26,160		417,517
Lucara Diamond Corp.		145,188		324,248
Lundin Mining Corp.		293,428		2,209,340
Major Drilling Group International Inc.^b		40,984		253,995


Security	Shares		Value
Nevsun Resources Ltd.^a		134,288	$	284,910
Stornoway Diamond Corp.^b		242,852		147,212
Teck Resources Ltd. Class B		254,188		6,301,227
Turquoise Hill Resources Ltd.^b		454,966		1,527,742

				17,934,781
CHILE — 0.11%
CAP SA		33,182		389,536

				389,536
CHINA — 1.02%
Aluminum Corp. of China Ltd. Class H^b		1,744,000		1,290,210
Chiho Environmental Group Ltd.^a,b		436,000		250,688
China Daye Non-Ferrous Metals Mining Ltd.^b		3,924,000		70,193
China Metal Recycling Holdings Ltd.^b,c		132,000		—
Inner Mongolia Eerduosi Resourses Co. Ltd. Class B		91,074		101,365
Jiangxi Copper Co. Ltd. Class H		436,000		756,522
MMG Ltd.^a,b		878,000		428,542
North Mining Shares Co. Ltd.^a,b		6,540,000		115,317
Shougang Concord International Enterprises Co. Ltd.^b		4,360,000		161,555
Shougang Fushan Resources Group Ltd.		1,308,000		295,812
Xinjiang Xinxin Mining Industry Co. Ltd. Class H^b		436,000		61,279

				3,531,483
EGYPT — 0.02%
Ezz Steel^b		73,188		69,582

				69,582
FINLAND — 0.41%
Outokumpu OYJ		137,340		1,417,300

				1,417,300
FRANCE — 0.38%
APERAM SA		19,693		1,038,015
Eramet^a,b		4,360		288,260

				1,326,275
GERMANY — 2.02%
Aurubis AG		15,914		1,420,335
Salzgitter AG^a		16,786		753,372
thyssenkrupp AG^a		161,538		4,837,801

				7,011,508


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2017


Security	Shares		Value
INDIA — 1.11%
Tata Steel Ltd. GDR^a,d		390,520	$	3,854,432

				3,854,432
INDONESIA — 0.14%
Aneka Tambang Persero Tbk PT^b		4,076,638		226,106
Krakatau Steel Persero Tbk PT^b		1,678,753		69,833
Pelat Timah Nusantara Tbk PT^b		244,400		63,014
Timah Persero Tbk PT		1,684,667		120,586

				479,539
JAPAN — 8.74%
Asahi Holdings Inc.		4,900		102,488
Daido Steel Co. Ltd.		98,000		582,337
Dowa Holdings Co. Ltd.		71,000		535,435
Hitachi Metals Ltd.		109,000		1,454,852
JFE Holdings Inc.		243,100		4,797,503
Kobe Steel Ltd.^b		152,600		1,835,748
Kyoei Steel Ltd.		21,800		333,358
Maruichi Steel Tube Ltd.		32,300		955,265
Mitsubishi Materials Corp.		45,100		1,616,568
Mitsui Mining & Smelting Co. Ltd.		218,000		1,156,751
Nakayama Steel Works Ltd.		43,600		281,661
Neturen Co. Ltd.		43,600		425,066
Nippon Denko Co. Ltd.		65,400		270,371
Nippon Light Metal Holdings Co. Ltd.		370,600		1,090,990
Nippon Steel & Sumitomo Metal Corp.		348,840		8,318,468
Nisshin Steel Co. Ltd.		43,600		566,491
OSAKA Titanium Technologies Co. Ltd.^a		1,800		26,135
Sumitomo Metal Mining Co. Ltd.		218,000		3,753,498
Toho Titanium Co. Ltd.^a		21,800		161,826
Tokyo Steel Manufacturing Co. Ltd.		43,600		368,813
Topy Industries Ltd.		4,400		148,919
Toyo Kohan Co. Ltd.		43,600		213,128
UACJ Corp.		43,386		117,078
Yamato Kogyo Co. Ltd.		21,800		616,010
Yodogawa Steel Works Ltd.		21,800		609,077

				30,337,836
MEXICO — 1.77%
Grupo Mexico SAB de CV Series B		1,700,400		5,623,239
Industrias CH SAB de CV Series B^a,b		65,400		313,849
Minera Frisco SAB de CV Series A1^a,b		327,000		226,223

				6,163,311


Security	Shares		Value
NETHERLANDS — 2.39%
AMG Advanced Metallurgical Group NV		12,208	$	438,543
ArcelorMittal^a,b		294,736		7,863,234

				8,301,777
NORWAY — 1.26%
Norsk Hydro ASA		607,130		4,370,172

				4,370,172
PAKISTAN — 0.04%
International Steels Ltd.		109,000		127,733

				127,733
PERU — 0.48%
Southern Copper Corp.		41,420		1,685,794

				1,685,794
PHILIPPINES — 0.02%
Nickel Asia Corp.		619,400		87,396

				87,396
POLAND — 0.88%
Boryszew SA^b		55,808		161,642
Jastrzebska Spolka Weglowa SA^b		23,436		682,080
KGHM Polska Miedz SA		62,348		2,200,169

				3,043,891
RUSSIA — 2.57%
Alrosa PJSC		1,177,200		1,636,830
Mechel PJSC^b		35,970		204,310
MMC Norilsk Nickel PJSC		27,958		4,708,209
Novolipetsk Steel PJSC		490,500		1,161,321
Raspadskaya OAO^b		50,140		74,319
Severstal PJSC		71,940		1,128,495

				8,913,484
SINGAPORE — 0.04%
Midas Holdings Ltd.^a,b		959,200		151,862

				151,862
SOUTH AFRICA — 0.86%
African Rainbow Minerals Ltd.		48,832		412,898
Anglo American Platinum Ltd.^b		24,198		656,264
ArcelorMittal South Africa Ltd.^b		90,034		34,497
Assore Ltd.		16,132		344,621
Impala Platinum Holdings Ltd.^b		284,272		879,226
Northam Platinum Ltd.^b		154,562		584,951
Royal Bafokeng Platinum Ltd.^b		36,188		89,791

				3,002,248


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2017


Security	Shares		Value
SOUTH KOREA — 4.31%
Dongkuk Steel Mill Co. Ltd.		26,230	$	294,262
Hyundai Steel Co.		35,316		1,807,142
Jenax Inc.^a,b		6,758		169,909
KISCO Corp.		2,186		81,035
KISWIRE Ltd.		2,707		92,906
Korea Zinc Co. Ltd.		3,924		1,795,658
Poongsan Corp.		11,336		573,033
Poongsan Holdings Corp.		3,052		162,668
POSCO		31,826		9,695,132
Seah Besteel Corp.		5,668		178,193
SeAH Steel Corp.		1,335		109,869

				14,959,807
SPAIN — 0.34%
Acerinox SA		70,964		1,010,741
Tubacex SA^a,b		44,472		159,676

				1,170,417
SWEDEN — 1.79%
Boliden AB		124,478		4,348,795
Granges AB		37,278		413,427
SSAB AB Class A^a,b		96,605		489,863
SSAB AB Class B^b		233,478		958,870

				6,210,955
SWITZERLAND — 0.06%
Schmolz + Bickenbach AG Registered^b		206,228		195,283

				195,283
TAIWAN — 1.85%
China Metal Products		218,011		228,276
China Steel Corp.		5,668,612		4,752,175
Feng Hsin Steel Co. Ltd.		218,000		379,959
Gloria Material Technology Corp.		436,000		321,449
TA Chen Stainless Pipe		257,934		162,389
Ton Yi Industrial Corp.		70,000		33,169
Tung Ho Steel Enterprise Corp.		436,000		348,176
Yieh Phui Enterprise Co. Ltd.		460,706		187,769

				6,413,362
THAILAND — 0.02%
STP & I PCL NVDR^a		268,760		55,444

				55,444
TURKEY — 0.51%
Borusan Mannesmann Boru Sanayi ve Ticaret AS^a		25,070		86,918


Security	Shares		Value
Eregli Demir ve Celik Fabrikalari TAS		612,580	$	1,458,460
Kardemir Karabuk Demir Celik Sanayi ve Ticaret AS Class D^b		320,701		221,074

				1,766,452
UNITED KINGDOM — 26.37%
Anglo American PLC		595,140		10,755,320
Antofagasta PLC		178,542		2,381,124
BHP Billiton PLC		941,760		17,917,402
Evraz PLC		155,434		671,354
Ferrexpo PLC		129,710		500,244
Glencore PLC		5,453,924		25,264,419
Hill & Smith Holdings PLC		33,572		555,881
KAZ Minerals PLC^b		111,180		1,204,109
Lonmin PLC^a,b		115,976		127,025
Petra Diamonds Ltd.^a,b		246,558		299,117
Rio Tinto PLC		551,976		26,646,936
Vedanta Ltd. ADR		247,430		4,849,628
Vedanta Resources PLC		37,496		411,889

				91,584,448
UNITED STATES — 10.90%
AK Steel Holding Corp.^b		138,430		775,208
Alcoa Corp.		74,624		3,274,501
Allegheny Technologies Inc.		47,524		989,925
Carpenter Technology Corp.		20,056		812,870
Century Aluminum Co.^b		23,980		468,090
Cleveland-Cliffs Inc.^b		169,168		1,414,244
Commercial Metals Co.		50,358		951,263
Compass Minerals International Inc.		16,132		1,077,618
Freeport-McMoRan Inc.^b		613,670		9,070,042
Haynes International Inc.		5,014		153,178
Kaiser Aluminum Corp.		8,502		818,913
Materion Corp.		11,118		424,708
Nucor Corp.		140,392		7,737,003
Reliance Steel & Aluminum Co.		31,610		2,289,196
Ryerson Holding Corp.^b		6,976		59,994
Schnitzer Steel Industries Inc. Class A		11,336		304,938
Steel Dynamics Inc.		107,038		3,687,459
SunCoke Energy Inc.^b		26,160		243,811
TimkenSteel Corp.^b		16,132		239,237
U.S. Steel Corp.		76,300		2,030,343
Worthington Industries Inc.		20,928		1,045,563

				37,868,104
TOTAL COMMON STOCKS (Cost: $300,907,806)				342,276,232


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2017


Security	Shares		Value
PREFERRED STOCKS — 0.99%

BRAZIL — 0.99%
Bradespar SA, Preference Shares		109,000	$	931,182
Gerdau SA, Preference Shares		414,200		1,559,939
Metalurgica Gerdau SA, Preference Shares		283,400		509,795
Usinas Siderurgicas de Minas Gerais SA Class A, Preference Shares		196,200		429,633

				3,430,549

TOTAL PREFERRED STOCKS (Cost: $1,666,225)				3,430,549

SHORT-TERM INVESTMENTS — 3.64%

MONEY MARKET FUNDS — 3.64%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		10,837,677		10,840,928
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		1,803,747		1,803,747

				12,644,675

TOTAL SHORT-TERM INVESTMENTS (Cost: $12,643,415)				12,644,675


	Value
TOTAL INVESTMENTS IN SECURITIES —103.19%
(Cost: $315,217,446)^h	$	358,351,456
Other Assets, Less Liabilities — (3.19)%		(11,092,299	)

NET ASSETS — 100.00%	$	347,259,157


ADR		— American Depositary Receipts
GDR		— Global Depositary Receipts
NVDR		— Non-Voting Depositary Receipts

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

^b	Non-income earning security.

^c	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	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $323,658,091. Net unrealized appreciation was $34,693,365, of which $48,906,330 represented gross unrealized appreciation on investments and $14,212,965 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		3,818,084		7,019,593	^b		—		10,837,677	$	10,840,928	$	1,599	$	1,260	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		377,671		1,426,076	^b		—		1,803,747		1,803,747		4		—		1,941

										$	12,644,675	$	1,603	$	1,260	$	1,941

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


SCHEDULES OF INVESTMENTS			31

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL METALS & MINING PRODUCERS ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	342,276,226	$	—	$	6	$	342,276,232
Preferred stocks		3,430,549		—		—		3,430,549
Money market funds		12,644,675		—		—		12,644,675

Total	$	358,351,450	$	—	$	6	$	358,351,456

See notes to financial statements.


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 99.99%

CANADA — 57.56%
Alexco Resource Corp.^a,b		364,871	$	637,342
Americas Silver Corp.^a		157,088		667,820
Dalradian Resources Inc.^a,b		665,186		859,502
Dundee Precious Metals Inc.^a		387,417		893,029
Endeavour Silver Corp.^a,b		302,972		746,707
Excellon Resources Inc.^a,b		332,056		540,294
First Majestic Silver Corp.^a,b		311,167		2,189,027
Fortuna Silver Mines Inc.^a		338,672		1,628,867
GoGold Resources Inc.^a,b		803,051		352,286
Great Panther Silver Ltd.^a,b		489,231		675,070
Klondex Mines Ltd.^a,b		379,356		1,270,824
Levon Resources Ltd.^a		1,158,278		323,348
MAG Silver Corp.^a,b		148,853		1,861,627
Mandalay Resources Corp.^b		1,238,845		350,780
Minco Silver Corp.^a,b		435,567		361,308
Pan American Silver Corp.		153,841		2,856,565
Silvercorp Metals Inc.		392,081		1,219,634
SSR Mining Inc.^a,b		236,665		2,461,505
Tahoe Resources Inc.		491,851		2,338,131
Wheaton Precious Metals Corp.		713,123		14,754,465

				36,988,131
CHINA — 0.91%
China Silver Group Ltd.		2,874,000		587,546

				587,546
MEXICO — 9.75%
Industrias Penoles SAB de CV		240,292		6,262,942

				6,262,942
PERU — 4.48%
Cia. de Minas Buenaventura SAA ADR		214,427		2,879,755

				2,879,755
UNITED KINGDOM — 15.38%
Fresnillo PLC		382,297		7,960,559
Hochschild Mining PLC		525,711		1,923,153

				9,883,712
UNITED STATES — 11.91%
Coeur Mining Inc.^a		309,010		2,703,837
Golden Minerals Co.^a		620,190		336,763
Hecla Mining Co.		550,521		2,906,751
McEwen Mining Inc.		507,173		1,303,435
Solitario Exploration & Royalty Corp.^a		571,613		400,129

				7,650,915

TOTAL COMMON STOCKS (Cost: $63,149,193)				64,253,001


Security	Shares		Value
SHORT-TERM INVESTMENTS — 11.82%

MONEY MARKET FUNDS — 11.82%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^c,d,e		7,553,574	$	7,555,840
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^c,d		37,449		37,449

				7,593,289

TOTAL SHORT-TERM INVESTMENTS (Cost: $7,591,572)				7,593,289

TOTAL INVESTMENTS IN SECURITIES — 111.81%
(Cost: $70,740,765)^f				71,846,290
Other Assets, Less Liabilities — (11.81)%				(7,588,240	)

NET ASSETS — 100.00%			$	64,258,050


ADR		— American Depositary Receipts

^a	Non-income earning security.

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

^c	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $74,207,535. Net unrealized depreciation was $2,361,245, of which $7,676,011 represented gross unrealized appreciation on investments and $10,037,256 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			33

Schedule of Investments (Continued)

iSHARES^® MSCI GLOBAL SILVER MINERS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold			Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional,
SL Agency Shares		7,889,139		—			(335,565	)^b		7,553,574	$	7,555,840	$	229	$	1,717	$	—	^c
BlackRock Cash Funds: Treasury,
SL Agency Shares		34,480		2,969	^b		—			37,449		37,449		2		—		235

											$	7,593,289	$	231	$	1,717	$	235

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	64,253,001	$	—	$	—	$	64,253,001
Money market funds		7,593,289		—		—		7,593,289

Total	$	71,846,290	$	—	$	—	$	71,846,290

See notes to financial statements.


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Global Agriculture Producers ETF			iShares MSCI Global Energy Producers ETF			iShares MSCI Global Gold Miners ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	28,502,429		$	35,290,960		$	379,919,005
Affiliated (Note 2)		2,590,605			682,534			5,150,875

Total cost of investments in securities	$	31,093,034		$	35,973,494		$	385,069,880

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	27,458,830		$	31,362,448		$	391,030,659
Affiliated (Note 2)		2,723,927			682,628			5,151,712
Foreign currency, at value^b		54,799			76,449			272,195
Cash		57			—			—
Receivables:
Investment securities sold		112,671			118,333			5,365,245
Dividends and interest		45,989			209,208			211,808
Tax reclaims		46,301			1,302			2,753

Total Assets		30,442,574			32,450,368			402,034,372


LIABILITIES
Payables:
Investment securities purchased		113,232			142,829			5,053,367
Collateral for securities on loan (Note 1)		1,886,139			656,834			5,126,612
Capital shares redeemed		—			71,514			484,019
Investment advisory fees (Note 2)		8,876			11,104			123,705

Total Liabilities		2,008,247			882,281			10,787,703


NET ASSETS	$	28,434,327		$	31,568,087		$	391,246,669


Net assets consist of:
Paid-in capital	$	31,348,472		$	37,209,904		$	422,942,941
Undistributed net investment income		61,073			251,539			562,406
Accumulated net realized loss		(2,065,933	)		(1,966,850	)		(43,374,099	)
Net unrealized appreciation (depreciation)		(909,285	)		(3,926,506	)		11,115,421

NET ASSETS	$	28,434,327		$	31,568,087		$	391,246,669


Shares outstanding^c		1,050,000			1,700,000			19,600,000	^d


Net asset value per share	$	27.08		$	18.57		$	19.96	^d

^a	Securities on loan with values of $1,820,358, $630,263 and $5,032,489, respectively. See Note 1.

^b	Cost of foreign currency: $54,125, $74,696 and $269,962, respectively.

^c	$0.001 par value, number of shares authorized: 500 million, 500 million and 500 million, respectively.

^d	Shares outstanding and net asset value per share reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


FINANCIAL STATEMENTS			35

Statements of Assets and Liabilities (Continued)

iSHARES^®, INC.

August 31, 2017


	iShares MSCI Global Metals & Mining Producers ETF			iShares MSCI Global Silver Miners ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	302,574,031		$	63,149,193
Affiliated (Note 2)		12,643,415			7,591,572

Total cost of investments in securities	$	315,217,446		$	70,740,765

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	345,706,781		$	64,253,001
Affiliated (Note 2)		12,644,675			7,593,289
Foreign currency, at value^b		539,536			37,103
Cash		10,294			2,003
Receivables:
Investment securities sold		3,531			1,507,523
Due from custodian (Note 4)		511,262			—
Dividends and interest		1,207,941			127,668
Capital shares sold		1,418,676			—
Tax reclaims		26,653			—

Total Assets		362,069,349			73,520,587


LIABILITIES
Payables:
Investment securities purchased		3,577,028			1,688,455
Due to custodian		292,196			—
Collateral for securities on loan (Note 1)		10,838,068			7,553,893
Foreign taxes (Note 1)		1,604			—
Investment advisory fees (Note 2)		101,296			20,189

Total Liabilities		14,810,192			9,262,537


NET ASSETS	$	347,259,157		$	64,258,050


Net assets consist of:
Paid-in capital	$	330,475,733		$	74,577,703
Undistributed (distributions in excess of) net investment income		1,573,871			(670,207	)
Accumulated net realized loss		(27,924,498	)		(10,754,583	)
Net unrealized appreciation		43,134,051			1,105,137

NET ASSETS	$	347,259,157		$	64,258,050


Shares outstanding^c		10,900,000	^d		5,600,000


Net asset value per share	$	31.86	^d	$	11.47

^a	Securities on loan with values of $10,228,975 and $7,492,653, respectively. See Note 1.

^b	Cost of foreign currency: $537,465 and $37,119, respectively.

^c	$0.001 par value, number of shares authorized: 500 million and 500 million, respectively.

^d	Shares outstanding and net asset value per share reflect a one-for-two reverse stock split effective after the close of trading on November 4, 2016. See Note 4.

See notes to financial statements.


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Global Agriculture Producers ETF			iShares MSCI Global Energy Producers ETF			iShares MSCI Global Gold Miners ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	585,543		$	1,150,439		$	1,838,673
Dividends — affiliated (Note 2)		2,704			227			1,845
Securities lending income — affiliated — net (Note 2)		23,675			9,435			105,754
Non-cash dividends — unaffiliated		—			91,962			—

Total investment income		611,922			1,252,063			1,946,272


EXPENSES
Investment advisory fees (Note 2)		111,939			139,680			977,649
Proxy fees		594			741			4,649

Total expenses		112,533			140,421			982,298
Less investment advisory fees waived (Note 2)		(5,765	)		—			—

Net expenses		106,768			140,421			982,298

Net investment income		505,154			1,111,642			963,974


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(46,979	)		(462,330	)		(23,467,454	)
Investments — affiliated (Note 2)		(46	)		(17	)		(3,210	)
In-kind redemptions — unaffiliated		950,331			952,416			11,088,384
In-kind redemptions — affiliated (Note 2)		34,049			—			—
Foreign currency transactions		(1,739	)		(159	)		87,482
Realized gain distributions from affiliated funds		3			8			6

Net realized gain (loss)		935,619			489,918			(12,294,792	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		2,185,008			(736,615	)		(1,701,366	)
Investments — affiliated (Note 2)		89,019			94			837
Translation of assets and liabilities in foreign currencies		4,898			2,244			12,132

Net change in unrealized appreciation/depreciation		2,278,925			(734,277	)		(1,688,397	)

Net realized and unrealized gain (loss)		3,214,544			(244,359	)		(13,983,189	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	3,719,698		$	867,283		$	(13,019,215	)

^a	Net of foreign withholding tax of $36,269, $51,937 and $174,911, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			37

Statements of Operations (Continued)

iSHARES^®, INC.

Year ended August 31, 2017


	iShares MSCI Global Metals & Mining Producers ETF			iShares MSCI Global Silver Miners ETF

NET INVESTMENT INCOME
Dividends — unaffiliated^a	$	7,158,602		$	561,652
Dividends — affiliated (Note 2)		1,941			235
Securities lending income — affiliated — net (Note 2)		127,386			243,355

		7,287,929			805,242
Less: Other foreign taxes (Note 1)		(2,023	)		—

Total investment income		7,285,906			805,242


EXPENSES
Investment advisory fees (Note 2)		1,053,471			266,110
Proxy fees		6,090			1,343

Total expenses		1,059,561			267,453

Net investment income		6,226,345			537,789


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(5,853,686	)		(4,364,024	)
Investments — affiliated (Note 2)		1,599			229
In-kind redemptions — unaffiliated		33,348,293			4,947,538
Foreign currency transactions		(28,153	)		(99	)
Realized gain distributions from affiliated funds		4			2

Net realized gain		27,468,057			583,646

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		62,026,687			(13,354,877	)
Investments — affiliated (Note 2)		1,260			1,717
Translation of assets and liabilities in foreign currencies		1,775			(49	)

Net change in unrealized appreciation/depreciation		62,029,722			(13,353,209	)

Net realized and unrealized gain (loss)		89,497,779			(12,769,563	)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	95,724,124		$	(12,231,774	)

^a	Net of foreign withholding tax of $355,780 and $54,502, respectively.

See notes to financial statements.


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares MSCI Global Agriculture Producers ETF						iShares MSCI Global Energy Producers ETF
	Year ended August 31, 2017			Year ended August 31, 2016			Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	505,154		$	611,355		$	1,111,642		$	1,064,512
Net realized gain (loss)		935,619			(965,789	)		489,918			(1,072,422	)
Net change in unrealized appreciation/depreciation		2,278,925			1,179,886			(734,277	)		3,444,630

Net increase in net assets resulting from operations		3,719,698			825,452			867,283			3,436,720


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(561,907	)		(596,259	)		(1,091,944	)		(1,004,806	)

Total distributions to shareholders		(561,907	)		(596,259	)		(1,091,944	)		(1,004,806	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		4,945,056			1,137,540			513			10,268,692
Cost of shares redeemed		(7,619,400	)		(1,055,827	)		(5,647,790	)		—

Net increase (decrease) in net assets from capital share transactions		(2,674,344	)		81,713			(5,647,277	)		10,268,692

INCREASE (DECREASE) IN NET ASSETS		483,447			310,906			(5,871,938	)		12,700,606

NET ASSETS
Beginning of year		27,950,880			27,639,974			37,440,025			24,739,419

End of year	$	28,434,327		$	27,950,880		$	31,568,087		$	37,440,025

Undistributed net investment income included in net assets at end of year	$	61,073		$	115,569		$	251,539		$	226,240


SHARES ISSUED AND REDEEMED
Shares sold		200,000			50,000			—			600,000
Shares redeemed		(300,000	)		(50,000	)		(300,000	)		—

Net increase (decrease) in shares outstanding		(100,000	)		—			(300,000	)		600,000

See notes to financial statements.


FINANCIAL STATEMENTS			39

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Global Gold Miners ETF						iShares MSCI Global Metals & Mining Producers ETF
	Year ended August 31, 2017^a			Year ended August 31, 2016^a			Year ended August 31, 2017^a			Year ended August 31, 2016^a

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	963,974		$	64,262		$	6,226,345		$	2,544,584
Net realized gain (loss)		(12,294,792	)		(7,802,775	)		27,468,057			(5,727,606	)
Net change in unrealized appreciation/depreciation		(1,688,397	)		43,607,604			62,029,722			18,667,008

Net increase (decrease) in net assets resulting from operations		(13,019,215	)		35,869,091			95,724,124			15,483,986


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(2,501,502	)		(300,013	)		(5,470,440	)		(2,206,034	)

Total distributions to shareholders		(2,501,502	)		(300,013	)		(5,470,440	)		(2,206,034	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		302,448,527			191,934,458			181,847,994			159,613,046
Cost of shares redeemed		(161,789,520	)		(7,321,308	)		(148,024,373	)		(18,927,748	)

Net increase in net assets from capital share transactions		140,659,007			184,613,150			33,823,621			140,685,298

INCREASE IN NET ASSETS		125,138,290			220,182,228			124,077,305			153,963,250

NET ASSETS
Beginning of year		266,108,379			45,926,151			223,181,852			69,218,602

End of year	$	391,246,669		$	266,108,379		$	347,259,157		$	223,181,852

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	562,406		$	(6,914	)	$	1,573,871		$	640,757


SHARES ISSUED AND REDEEMED
Shares sold		16,300,000			8,775,000			7,300,000			8,050,000
Shares redeemed		(9,250,000	)		(350,000	)		(6,700,000	)		(1,000,000	)

Net increase in shares outstanding		7,050,000			8,425,000			600,000			7,050,000

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

See notes to financial statements.


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


	iShares MSCI Global Silver Miners ETF
	Year ended August 31, 2017			Year ended August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	537,789		$	155,283
Net realized gain (loss)		583,646			(1,145,451	)
Net change in unrealized appreciation/depreciation		(13,353,209	)		20,735,242

Net increase (decrease) in net assets resulting from operations		(12,231,774	)		19,745,074


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(1,593,868	)		(80,025	)

Total distributions to shareholders		(1,593,868	)		(80,025	)


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		3,458,260			58,622,345
Cost of shares redeemed		(12,452,605	)		(3,488,063	)

Net increase (decrease) in net assets from capital share transactions		(8,994,345	)		55,134,282

INCREASE (DECREASE) IN NET ASSETS		(22,819,987	)		74,799,331

NET ASSETS
Beginning of year		87,078,037			12,278,706

End of year	$	64,258,050		$	87,078,037

Undistributed (distributions in excess of) net investment income included in net assets at end of year	$	(670,207	)	$	38,940


SHARES ISSUED AND REDEEMED
Shares sold		300,000			4,700,000
Shares redeemed		(1,100,000	)		(300,000	)

Net increase (decrease) in shares outstanding		(800,000	)		4,400,000

See notes to financial statements.


FINANCIAL STATEMENTS			41

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Global Agriculture Producers ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	24.31		$	24.03		$	27.29		$	24.63		$	24.91

Income from investment operations:
Net investment income^a		0.45			0.54			0.50			0.58			0.50
Net realized and unrealized gain (loss)^b		2.81			0.27			(3.21	)		2.63			(0.46	)

Total from investment operations		3.26			0.81			(2.71	)		3.21			0.04

Less distributions from:
Net investment income		(0.49	)		(0.53	)		(0.55	)		(0.55	)		(0.32	)

Total distributions		(0.49	)		(0.53	)		(0.55	)		(0.55	)		(0.32	)

Net asset value, end of year	$	27.08		$	24.31		$	24.03		$	27.29		$	24.63


Total return		13.53	%		3.55	%		(10.11	)%		13.05	%		0.10	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	28,434		$	27,951		$	27,640		$	46,395		$	35,716
Ratio of expenses to average net assets		0.37	%		0.38	%		0.38	%		0.38	%		0.38	%
Ratio of expenses to average net assets prior to waived fees		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets		1.76	%		2.38	%		1.87	%		2.17	%		1.87	%
Portfolio turnover rate^c		16	%		7	%		10	%		14	%		6	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but include portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 15%, 7%, 10%, 13% and 6%, respectively. See Note 4.

See notes to financial statements.


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Global Energy Producers ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	18.72		$	17.67		$	28.06		$	24.06		$	23.51

Income from investment operations:
Net investment income^a		0.60			0.59			0.68			0.68			0.63
Net realized and unrealized gain (loss)^b		(0.16	)		1.00			(10.61	)		3.96			0.55

Total from investment operations		0.44			1.59			(9.93	)		4.64			1.18

Less distributions from:
Net investment income		(0.59	)		(0.54	)		(0.46	)		(0.64	)		(0.63	)

Total distributions		(0.59	)		(0.54	)		(0.46	)		(0.64	)		(0.63	)

Net asset value, end of year	$	18.57		$	18.72		$	17.67		$	28.06		$	24.06


Total return		2.26	%		9.31	%		(35.63	)%		19.44	%		5.10	%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	31,568		$	37,440		$	24,739		$	8,419		$	4,811
Ratio of expenses to average net assets		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets		3.10	%		3.36	%		3.23	%		2.57	%		2.61	%
Portfolio turnover rate^c		4	%		6	%		4	%		8	%		6	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the years ended August 31, 2017, August 31, 2016, August 31, 2015, August 31, 2014 and August 31, 2013 were 4%, 6%, 4%, 8% and 6%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			43

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Global Gold Miners ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	21.20		$	11.13		$	22.53		$	23.20		$	40.11

Income from investment operations:
Net investment income^b		0.06			0.02			0.14			0.16			0.42
Net realized and unrealized gain (loss)^c		(1.04	)		10.11			(11.42	)		(0.67	)		(16.95	)

Total from investment operations		(0.98	)		10.13			(11.28	)		(0.51	)		(16.53	)

Less distributions from:
Net investment income		(0.26	)		(0.06	)		(0.12	)		(0.16	)		(0.38	)

Total distributions		(0.26	)		(0.06	)		(0.12	)		(0.16	)		(0.38	)

Net asset value, end of year	$	19.96		$	21.20		$	11.13		$	22.53		$	23.20


Total return		(4.30	)%		91.17	%		(50.16	)%		(2.01	)%		(41.28	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	391,247		$	266,108		$	45,926		$	70,976		$	38,285
Ratio of expenses to average net assets		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets		0.38	%		0.06	%		0.88	%		0.81	%		1.37	%
Portfolio turnover rate^d		26	%		30	%		20	%		22	%		19	%

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

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Global Metals & Mining Producers ETF
	Year ended Aug. 31, 2017^a			Year ended Aug. 31, 2016^a			Year ended Aug. 31, 2015^a			Year ended Aug. 31, 2014^a			Year ended Aug. 31, 2013^a
Net asset value, beginning of year	$	21.67		$	21.30		$	40.37		$	36.23		$	38.01

Income from investment operations:
Net investment income^b		0.53			0.42			1.62			1.00			1.00
Net realized and unrealized gain (loss)^c		10.26			0.41			(17.91	)		4.44			(2.01	)

Total from investment operations		10.79			0.83			(16.29	)		5.44			(1.01	)

Less distributions from:
Net investment income		(0.60	)		(0.46	)		(2.78	)		(1.30	)		(0.77	)

Total distributions		(0.60	)		(0.46	)		(2.78	)		(1.30	)		(0.77	)

Net asset value, end of year	$	31.86		$	21.67		$	21.30		$	40.37		$	36.23


Total return		50.55	%		4.52	%		(41.94	)%		15.32	%		(2.68	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	347,259		$	223,182		$	69,219		$	183,699		$	222,808
Ratio of expenses to average net assets		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of expenses to average net assets prior to waived fees		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets		2.31	%		2.16	%		5.18	%		2.53	%		2.51	%
Portfolio turnover rate^d		12	%		8	%		17	%		18	%		11	%

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

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			45

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


	iShares MSCI Global Silver Miners ETF
	Year ended Aug. 31, 2017			Year ended Aug. 31, 2016			Year ended Aug. 31, 2015			Year ended Aug. 31, 2014			Year ended Aug. 31, 2013
Net asset value, beginning of year	$	13.61		$	6.14		$	12.70		$	13.92		$	20.94

Income from investment operations:
Net investment income^a		0.09			0.05			0.05			0.08			0.16
Net realized and unrealized gain (loss)^b		(1.94	)		7.44			(6.42	)		(1.15	)		(6.90	)

Total from investment operations		(1.85	)		7.49			(6.37	)		(1.07	)		(6.74	)

Less distributions from:
Net investment income		(0.29	)		(0.02	)		(0.19	)		(0.15	)		(0.28	)

Total distributions		(0.29	)		(0.02	)		(0.19	)		(0.15	)		(0.28	)

Net asset value, end of year	$	11.47		$	13.61		$	6.14		$	12.70		$	13.92


Total return		(13.26	)%		122.11	%		(50.51	)%		(7.48	)%		(32.49	)%


Ratios/Supplemental data:
Net assets, end of year (000s)	$	64,258		$	87,078		$	12,279		$	13,975		$	6,959
Ratio of expenses to average net assets		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Ratio of net investment income to average net assets		0.79	%		0.47	%		0.57	%		0.63	%		1.03	%
Portfolio turnover rate^c		14	%		27	%		31	%		22	%		13	%

^a	Based on average shares outstanding throughout each period.

^b	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

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

See notes to financial statements.


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF		Diversification Classification
MSCI Global Agriculture Producers		Non-diversified
MSCI Global Energy Producers		Non-diversified
MSCI Global Gold Miners		Non-diversified
MSCI Global Metals & Mining Producers		Non-diversified
MSCI Global Silver Miners		Non-diversified

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


NOTES TO FINANCIAL STATEMENTS			47

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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

•


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS


NOTES TO FINANCIAL STATEMENTS			49

Notes to Financial Statements (Continued)

iSHARES^®, INC.

LOANS OF PORTFOLIO SECURITIES


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Global Agriculture Producers
Barclays Capital Inc.	$	1,021	$	1,021	$	—
Credit Suisse Securities (USA) LLC		11,012		11,012		—
Deutsche Bank AG		85,952		85,952		—
Deutsche Bank Securities Inc.		53,982		53,982		—
Goldman Sachs & Co.		32,719		32,719		—
JPMorgan Securities LLC		843,902		843,902		—
Macquarie Bank Limited		17,046		17,046		—
Merrill Lynch, Pierce, Fenner & Smith		63,283		63,283		—
Morgan Stanley & Co. International PLC		12,758		12,758		—
Morgan Stanley & Co. LLC		542,661		542,661		—
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		109		109		—
Scotia Capital (USA) Inc.		34,989		34,989		—
SG Americas Securities LLC		24,658		24,658		—
State Street Bank & Trust Company		65,065		65,065		—
UBS Securities LLC		31,201		31,201		—

	$	1,820,358	$	1,820,358	$	—

MSCI Global Energy Producers
Barclays Capital Inc.	$	412	$	400	$	(12	)
BNP Paribas New York Branch		5,387		5,387		—
BNP Paribas Prime Brokerage Inc.		50,744		50,744		—
Citigroup Global Markets Inc.		20,156		20,156		—
Credit Suisse Securities (USA) LLC		55,183		55,183		—
Deutsche Bank Securities Inc.		72,453		72,453		—
Goldman Sachs & Co.		134,972		134,972		—
JPMorgan Securities LLC		106,848		106,848		—
Merrill Lynch, Pierce, Fenner & Smith		37,095		37,095		—
Morgan Stanley & Co. LLC		15,699		15,682		(17	)
Morgan Stanley & Co. LLC (U.S. Equity Securities Lending)		7,451		7,439		(12	)
Scotia Capital (USA) Inc.		23,936		23,936		—
State Street Bank & Trust Company		99,927		99,927		—

	$	630,263	$	630,222	$	(41	)


NOTES TO FINANCIAL STATEMENTS			51

Notes to Financial Statements (Continued)

iSHARES^®, INC.


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount^b
MSCI Global Gold Miners
Credit Suisse Securities (USA) LLC	$	1,175,855	$	1,175,855	$	—
Goldman Sachs & Co.		5,489		5,489		—
JPMorgan Securities LLC		89,013		89,013		—
Merrill Lynch, Pierce, Fenner & Smith		1,290,125		1,290,125		—
Morgan Stanley & Co. LLC		6,053		6,053		—
Scotia Capital (USA) Inc.		95,656		95,656		—
State Street Bank & Trust Company		2,350,517		2,350,517		—
UBS AG		19,781		19,781		—

	$	5,032,489	$	5,032,489	$	—

MSCI Global Metals & Mining Producers
BMO Capital Markets	$	9,870	$	9,870	$	—
Credit Suisse Securities (USA) LLC		516,766		516,766		—
Deutsche Bank Securities Inc.		67,557		67,557		—
HSBC Bank PLC		467,400		467,400		—
JPMorgan Securities LLC		737,531		737,531		—
Merrill Lynch, Pierce, Fenner & Smith		542,020		542,020		—
Morgan Stanley & Co. LLC		1,876,099		1,876,099		—
SG Americas Securities LLC		84,017		84,017		—
State Street Bank & Trust Company		5,768,976		5,768,976		—
UBS AG		138,100		138,100		—
UBS Securities LLC		20,639		20,639		—

	$	10,228,975	$	10,228,975	$	—

MSCI Global Silver Miners
Barclays Capital Inc.	$	977,699	$	977,699	$	—
BMO Capital Markets		342,365		342,365		—
Credit Suisse Securities (USA) LLC		1,644,592		1,644,592		—
JPMorgan Securities LLC		926,135		926,135		—
Merrill Lynch, Pierce, Fenner & Smith		809,795		809,795		—
Morgan Stanley & Co. LLC		1,913,753		1,895,960		(17,793	)
Scotia Capital (USA) Inc.		57,816		57,816		—
State Street Bank & Trust Company		253,648		253,648		—
UBS AG		566,850		564,058		(2,792	)

	$	7,492,653	$	7,472,068	$	(20,585	)


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

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

For its investment advisory services to 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.

In addition, each of the iShares MSCI Global Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to waive a portion of its investment advisory fees for each Fund through December 31, 2023 in an amount equal to the acquired fund fees and expenses, if any, attributable to each Fund’s investments in other iShares funds.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
MSCI Global Agriculture Producers	$	5,690
MSCI Global Energy Producers		2,321
MSCI Global Gold Miners		26,359
MSCI Global Metals & Mining Producers		31,232
MSCI Global Silver Miners		58,141


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (Continued)

iSHARES^®, INC.

For the year ended August 31, 2017, 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	$	543,047	$	74,717
MSCI Global Energy Producers		81,152		166,818
MSCI Global Gold Miners		2,339,945		2,794,744
MSCI Global Metals & Mining Producers		429,659		1,186,175
MSCI Global Silver Miners		230,000		45,234

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

The iShares MSCI Global Agriculture Producers and iShares MSCI Global Metals & Mining Producers ETFs, in order to improve their portfolio liquidity and their ability to track their respective underlying index, may invest in shares of other iShares funds that invest in securities in each Fund’s respective underlying index.

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
MSCI Global Agriculture Producers	$	4,369,332	$	4,625,102
MSCI Global Energy Producers		1,505,665		1,651,358
MSCI Global Gold Miners		72,165,256		66,473,867
MSCI Global Metals & Mining Producers		38,047,181		33,031,956
MSCI Global Silver Miners		9,657,955		11,009,218


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
MSCI Global Agriculture Producers	$	4,674,827	$	7,148,290
MSCI Global Energy Producers		—		5,440,208
MSCI Global Gold Miners		280,803,060		149,125,016
MSCI Global Metals & Mining Producers		157,179,920		128,592,472
MSCI Global Silver Miners		3,453,163		12,115,140

4.	*CAPITAL SHARE TRANSACTIONS*

The Board authorized a one-for-two reverse stock split for each of the iShares MSCI Global Gold Miners ETF and iShares Global Metals & Mining Producers ETF, effective after the close of trading on November 4, 2016. The impact of the stock split was to decrease the number of shares outstanding by a factor of two, while increasing the NAV per share by a factor of two, resulting in no effect on the net assets of the Funds. The financial statements for the Fund have been adjusted to reflect the reverse stock split.

5.	*PRINCIPAL RISKS*


NOTES TO FINANCIAL STATEMENTS			55

Notes to Financial Statements (Continued)

iSHARES^®, INC.

MARKET RISK

When a fund concentrates its investments in securities within a single or limited number of market sectors, it assumes the risk that economic, political and social conditions affecting those market sectors may have a significant impact on its investment performance.


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

CREDIT RISK

6.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of August 31, 2017, attributable to the characterization of corporate actions, passive foreign investment companies, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital			Undistributed Net Investment Income/Distributions in Excess of Net Investment Income		Undistributed Net Realized Gain/Accumulated Net Realized Loss
MSCI Global Agriculture Producers	$	804,010		$	2,257	$	(806,267	)
MSCI Global Energy Producers		781,179			5,601		(786,780	)
MSCI Global Gold Miners		(5,604,073	)		2,106,848		3,497,225
MSCI Global Metals & Mining Producers		29,842,872			177,209		(30,020,081	)
MSCI Global Silver Miners		3,755,922			346,932		(4,102,854	)


NOTES TO FINANCIAL STATEMENTS			57

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
MSCI Global Agriculture Producers
Ordinary income	$	561,907	$	596,259


MSCI Global Energy Producers
Ordinary income	$	1,091,944	$	1,004,806


MSCI Global Gold Miners
Ordinary income	$	2,501,502	$	300,013


MSCI Global Metals & Mining Producers
Ordinary income	$	5,470,440	$	2,206,034


MSCI Global Silver Miners
Ordinary income	$	1,593,868	$	80,025

As of August 31, 2017, 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	$	92,566	$	(1,864,644	)	$	(1,142,067	)	$	(2,914,145	)
MSCI Global Energy Producers		261,028		(1,515,836	)		(4,387,009	)		(5,641,817	)
MSCI Global Gold Miners		562,288		(28,822,930	)		(3,435,630	)		(31,696,272	)
MSCI Global Metals & Mining Producers		2,769,798		(20,679,780	)		34,693,406			16,783,424
MSCI Global Silver Miners		153,975		(8,112,033	)		(2,361,595	)		(10,319,653	)

As of August 31, 2017, the Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
MSCI Global Agriculture Producers	$	1,864,644
MSCI Global Energy Producers		1,515,836
MSCI Global Gold Miners		28,822,930
MSCI Global Metals & Mining Producers		20,679,780
MSCI Global Silver Miners		8,112,033


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

7.	*LEGAL PROCEEDINGS*

lack standing to assert their claims. On October 11, 2017, the Court entered final judgment dismissing all of Plaintiffs’ claims with prejudice.

8.	*SUBSEQUENT EVENTS*

At a meeting held on September 14-15, 2017, the Board approved a line of credit for the iShares MSCI Global Agriculture Producers, iShares MSCI Global Energy Producers and iShares MSCI Global Metals & Mining Producers ETFs. The Funds, along with certain other iShares funds, will be parties to a $275 million credit agreement with State Street Bank and Trust Company, which will expire 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 is expected to be effective on or around October 25, 2017.


NOTES TO FINANCIAL STATEMENTS			59

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the 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

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares MSCI Global Agriculture Producers ETF, iShares MSCI Global Energy Producers ETF, iShares MSCI Global Gold Miners ETF, iShares MSCI Global Metals & Mining Producers ETF and iShares MSCI Global Silver Miners ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
MSCI Global Agriculture Producers	$	558,716
MSCI Global Energy Producers		1,282,190
MSCI Global Gold Miners		2,776,393
MSCI Global Metals & Mining Producers		6,713,020
MSCI Global Silver Miners		595,737

For corporate shareholders, the percentage of income dividends paid during the fiscal year ended August 31, 2017 that qualified for the dividends-received deduction were as follows:


iShares ETF	Dividends- Received Deduction
MSCI Global Agriculture Producers		55.59	%
MSCI Global Energy Producers		43.77
MSCI Global Gold Miners		5.02
MSCI Global Metals & Mining Producers		6.06

For the fiscal year ended August 31, 2017, the following Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
MSCI Global Gold Miners	$	3,362,527	$	173,956
MSCI Global Metals & Mining Producers		7,051,338		343,295
MSCI Global Silver Miners		614,235		54,502


TAX INFORMATION			61

Board Review and Approval of Investment Advisory

Contract

iSHARES^®, INC.


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			63

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

existence or size of scale benefits. The Board noted that the Advisory Contract for the Funds did not provide for any breakpoints in the Funds’ investment advisory fee rates as the assets of the Funds increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Funds may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			65

Supplemental Information (Unaudited)

iSHARES^®, INC.


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
MSCI Global Agriculture Producers	$	0.491458	$	—	$	—	$	0.491458		100	%		—	%		—	%		100	%
MSCI Global Energy Producers		0.590445		—		—		0.590445		100			—			—			100
MSCI Global Metals & Mining Producers		0.596772		—		—		0.596772		100			—			—			100
MSCI Global Silver Miners		0.288645		—		—		0.288645		100			—			—			100

Premium/Discount Information


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Agriculture Producers ETF

Period Covered: January 31, 2012 through June 30, 2017


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%		21		1.54
Greater than 0.5% and Less than 1.0%		361		26.47
Greater than 0.0% and Less than 0.5%		496		36.36
At NAV		14		1.03
Less than 0.0% and Greater than -0.5%		393		28.81
Less than -0.5% and Greater than -1.0%		72		5.28
Less than -1.0% and Greater than -1.5%		6		0.44

		1,364		100.00	%

iShares MSCI Global Energy Producers ETF

Period Covered: January 31, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 3.0%		1		0.07	%
Greater than 2.5% and Less than 3.0%		3		0.22
Greater than 2.0% and Less than 2.5%		9		0.66
Greater than 1.5% and Less than 2.0%		20		1.47
Greater than 1.0% and Less than 1.5%		68		4.99
Greater than 0.5% and Less than 1.0%		215		15.76
Greater than 0.0% and Less than 0.5%		416		30.50
At NAV		21		1.54
Less than 0.0% and Greater than -0.5%		517		37.90
Less than -0.5% and Greater than -1.0%		84		6.16
Less than -1.0% and Greater than -1.5%		9		0.66
Less than -1.5% and Greater than -2.0%		1		0.07

		1,364		100.00	%


SUPPLEMENTAL INFORMATION			67

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Gold Miners ETF

Period Covered: January 31, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.0%		1		0.07	%
Greater than 3.5% and Less than 4.0%		2		0.15
Greater than 3.0% and Less than 3.5%		2		0.15
Greater than 2.5% and Less than 3.0%		4		0.29
Greater than 2.0% and Less than 2.5%		3		0.22
Greater than 1.5% and Less than 2.0%		12		0.88
Greater than 1.0% and Less than 1.5%		43		3.15
Greater than 0.5% and Less than 1.0%		261		19.13
Greater than 0.0% and Less than 0.5%		602		44.13
At NAV		12		0.88
Less than 0.0% and Greater than -0.5%		322		23.61
Less than -0.5% and Greater than -1.0%		68		4.99
Less than -1.0% and Greater than -1.5%		21		1.54
Less than -1.5% and Greater than -2.0%		3		0.22
Less than -2.0% and Greater than -2.5%		5		0.37
Less than -2.5% and Greater than -3.0%		1		0.07
Less than -3.0%		2		0.15

		1,364		100.00	%

iShares MSCI Global Metals & Mining Producers ETF

Period Covered: January 31, 2012 through June 30, 2017


Premium/Discount Range	Number of Days		Percentage of Total Days
Greater than 4.5%		3		0.22	%
Greater than 4.0% and Less than 4.5%		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%		7		0.51
Greater than 2.0% and Less than 2.5%		13		0.95
Greater than 1.5% and Less than 2.0%		58		4.25
Greater than 1.0% and Less than 1.5%		207		15.18
Greater than 0.5% and Less than 1.0%		339		24.85
Greater than 0.0% and Less than 0.5%		369		27.06
At NAV		11		0.81
Less than 0.0% and Greater than -0.5%		238		17.45
Less than -0.5% and Greater than -1.0%		81		5.94
Less than -1.0% and Greater than -1.5%		26		1.91
Less than -1.5% and Greater than -2.0%		5		0.37
Less than -2.0%		4		0.29

		1,364		100.00	%


68		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares MSCI Global Silver Miners ETF

Period Covered: January 31, 2012 through June 30, 2017


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		0.15
Greater than 2.5% and Less than 3.0%		6		0.44
Greater than 2.0% and Less than 2.5%		14		1.03
Greater than 1.5% and Less than 2.0%		33		2.42
Greater than 1.0% and Less than 1.5%		101		7.40
Greater than 0.5% and Less than 1.0%		291		21.33
Greater than 0.0% and Less than 0.5%		451		33.06
At NAV		10		0.73
Less than 0.0% and Greater than –0.5%		280		20.53
Less than –0.5% and Greater than –1.0%		95		6.96
Less than –1.0% and Greater than –1.5%		41		3.01
Less than –1.5% and Greater than –2.0%		29		2.13
Less than –2.0% and Greater than –2.5%		8		0.59
Less than –2.5% and Greater than –3.0%		2		0.15

		1,364		100.00	%


SUPPLEMENTAL INFORMATION			69

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.

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.


70		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


DIRECTOR AND OFFICER INFORMATION			71

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)


72		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

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


DIRECTOR AND OFFICER INFORMATION			73

Notes:


74		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-812-0817

AUGUST 31, 2017


2017 ANNUAL REPORT

iShares, Inc.

^Ø

iShares Edge MSCI Multifactor Emerging Markets ETF | EMGF | BATS

^Ø

iShares MSCI EM ESG Optimized ETF | ESGE | NASDAQ

^Ø

iShares MSCI Emerging Markets ex China ETF | EMXC | NASDAQ

Table of Contents


Management’s Discussions of Fund Performance			5
About Fund Performance			12
Shareholder Expenses			12
Schedules of Investments			13
iShares Edge MSCI Multifactor Emerging Markets ETF			13
iShares MSCI EM ESG Optimized ETF			17
iShares MSCI Emerging Markets ex China ETF			23
Financial Statements			31
Financial Highlights			35
Notes to Financial Statements			38
Report of Independent Registered Public Accounting Firm			49
Tax Information			50
Board Review and Approval of Investment Advisory Contract			51
Supplemental Information			60
Director and Officer Information			62

Management’s Discussion of Fund Performance

iSHARES^®, INC.

GLOBAL EQUITY MARKET OVERVIEW


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			5

Management’s Discussion of Fund Performance

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		25.80%		26.07%		27.74%		25.80%		26.07%		27.74%
Since Inception		21.33%		21.54%		22.51%		39.84%		40.26%		42.03%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 12/8/15. The first day of secondary market trading was 12/10/15.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,180.40	$	2.20	$	1,000.00	$	1,023.20	$	2.04		0.40%

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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 25.80%, net of fees, while the total return for the Index was 27.74%.

Stocks in China, which represented about 47% of the Index on average, contributed the most to the Index’s return for the reporting period. As a major global exporter, China capitalized on strengthening economic growth in many regions of the world.


6		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

Chinese stocks also benefited from government stimulus efforts focused primarily on infrastructure and real estate expansion, which drove property prices higher and supported a surge in industrial output.

Stocks in South Korea and India were also meaningful contributors to the Index’s return for the reporting period. South Korea’s equity market reached an all-time high during the reporting period, benefiting from strong growth in technology-related companies. The stock market in India also reached all-time highs, amid government-driven economic reforms that are expected to stimulate economic activity. In contrast, stocks in Mexico, Qatar, and Pakistan detracted from the Index’s return for the reporting period.

From a sector perspective, the information technology sector contributed the most to the Index’s return for the reporting period. The consumer discretionary and financials sectors also contributed meaningfully to the Index’s return, as did the materials and energy sectors. The utilities sector detracted fractionally from the Index’s performance for the reporting period.

For the reporting period, the Index outperformed the broader market, as represented by the MSCI Emerging Markets Index. The Index’s research-based selection process focuses on four investment factors: value, quality, momentum, and size. Of the four target style factors, momentum was the most significant contributor to the Index’s performance relative to the performance of the broader market for the reporting period. Value and quality were also contributors, while size detracted modestly from the Index’s relative return.

In addition to the net contribution from the target style factors, country allocation generated mixed performance, while industry allocation detracted from the Index’s performance relative to that of the broader market for the reporting period. From a country standpoint, an underweight allocation in the Index to Indian stocks and an overweight allocation to Chinese stocks benefited the Index’s relative performance for the reporting period, while overweight allocations in the Index to Russian and Brazilian stock detracted. On a sector basis, underweight allocations in the Index to banks and the software and services industry detracted from the Index’s relative performance for the reporting period, while an underweight allocation in the Index to the telecommunication services sector benefited relative performance.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	22.31	%
Financials	16.24
Consumer Discretionary	12.45
Materials	7.78
Real Estate	7.64
Investment Companies	7.51
Industrials	5.80
Energy	5.15
Health Care	5.02
Consumer Staples	4.68
Utilities	3.13
Telecommunication Services	2.29

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


China	36.38	%
South Korea	17.80
Taiwan	10.21
India	7.50
Russia	6.28
Brazil	6.05
South Africa	4.16
Indonesia	2.61
United Arab Emirates	1.93
Turkey	1.03

TOTAL	93.95	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			7

Management’s Discussion of Fund Performance

iSHARES^® MSCI EM ESG OPTIMIZED ETF

Performance as of August 31, 2017


	Average Annual Total Returns						Cumulative Total Returns
	NAV		MARKET		INDEX		NAV		MARKET		INDEX
1 Year		23.75%		24.43%		25.48%		23.75%		24.43%		25.48%
Since Inception		32.01%		32.63%		34.33%		38.71%		39.47%		41.33%

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSET VALUE)

LOGO

The inception date of the Fund was 6/28/16. The first day of secondary market trading was 6/30/16.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^a		Annualized Expense Ratio
$	1,000.00	$	1,177.80	$	2.25	$	1,000.00	$	1,023.10	$	2.09		0.41%


8		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

The iShares MSCI EM ESG Optimized ETF (the “Fund”) 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 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. For the 12-month reporting period ended August 31, 2017, the total return for the Fund was 23.75%, net of fees, while the total return for the Index was 25.48%.

The robust performance of emerging markets stocks with positive environmental, social, and governance (“ESG”) characteristics were led by stocks in several Asian countries, including China, South Korea, and Taiwan. Many emerging economies in Asia have begun to focus on greater transparency regarding ESG disclosure as ESG investing expands in the region. China is increasingly addressing environmental protection issues in the country and has become a leader in “green bonds,” which are debt instruments issued to help finance sustainable development projects. In Taiwan, many of the largest public companies have led the way in greater ESG data reporting, while South Korea has set ambitious goals to increase renewable energy generation.

An improving global economic environment was also beneficial for ESG stocks in these three countries. As a major global exporter, China benefited from strengthening economic growth in many regions of the world. South Korea and Taiwan were beneficiaries of strong growth in technology-related companies. South Korea’s equity market reached an all-time high during the reporting period, benefiting from a surge in semiconductor exports. Taiwan’s technology-heavy stock market rose to its highest level in 27 years, led by component suppliers that benefited from robust smartphone production.

In contrast, ESG stocks in Qatar detracted from the Index’s return for the reporting period amid the country’s growing diplomatic crisis with Saudi Arabia and other neighboring countries in the Middle East.

From a sector perspective, the information technology sector contributed the most to the Index’s return for the reporting period, benefiting from growing demand for a range of technological devices. The financials and consumer discretionary sectors also contributed meaningfully to the Index’s return for the reporting period, as did the energy and materials sectors.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Information Technology	28.14	%
Financials	27.10
Consumer Discretionary	10.24
Energy	7.13
Materials	5.79
Consumer Staples	5.45
Telecommunication Services	5.18
Industrials	5.15
Utilities	2.87
Health Care	1.75
Real Estate	1.20

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


China	27.87	%
South Korea	14.53
Taiwan	11.50
India	8.30
South Africa	7.68
Brazil	7.60
Mexico	3.26
Russia	3.17
Thailand	3.03
Malaysia	2.92

TOTAL	89.86	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			9

Management’s Discussion of Fund Performance

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

Performance as of August 31, 2017

Cumulative Total Returns

NAV

MARKET

INDEX

Since Inception

1.83%

2.63%

1.93%

The inception date of the Fund was 7/18/17. The first day of secondary market trading was 7/20/17.

For the fiscal period ended 8/31/17, the Fund did not have six months of performance and therefore line graphs are not presented.


Shareholder Expenses
Actual						Hypothetical 5% Return
Beginning Account Value^a (7/18/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^b		Beginning Account Value (3/1/17)		Ending Account Value (8/31/17)		Expenses Paid During Period^b		Annualized Expense Ratio
$	1,000.00	$	1,018.30	$	0.50	$	1,000.00	$	1,023.10	$	2.09		0.41%

The beginning of the period (commencement of operations) is July 18, 2017.

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 (44 days for actual and 184 days for hypothetical expenses) and divided by the number of days in the year (365 days). See “Shareholder Expenses” on page 12 for more information.


10		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Management’s Discussion of Fund Performance (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

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. For the period from July 18, 2017 (inception date of the Fund) through August 31, 2017, the total return for the Fund was 1.83%, net of fees, while the total return for the Index was 1.93%.

The modest advance in the Index for the reporting period reflected improving global economic growth and increased geopolitical tensions. On the economic front, strengthening growth in Europe and a recovery in the Chinese economy contributed to a better economic environment for many emerging markets. Exports are a key component of many emerging economies, so stronger economic growth in developed countries and large emerging markets such as China typically lead to increased demand for exports.

Many of the leading contributors to the Index’s return for the reporting period benefited from stronger export growth, including stocks in Brazil, South Africa, and Russia. Brazil and Russia both emerged from recession in 2017, driven in large part by increased exports, while South Africa’s economy continued to rebound as the end of a drought in the country led to a recovery in agricultural production.

However, positive performance in the Index for the reporting period was impacted by geopolitical conflicts around the globe. Stocks in South Korea, which detracted the most from the Index’s return for the reporting period, declined amid rising tensions between the U.S. and neighboring North Korea. Stocks in Qatar, another notable detractor from the Index for the reporting period, declined amid the country’s growing diplomatic crisis with Saudi Arabia and other countries in the Middle East.

From a sector perspective, the financials sector contributed the most to the Index’s return for the reporting period, led by strong performance from the banking industry. The materials and energy sectors also contributed meaningfully to the Index’s performance, benefiting from stronger commodities prices during the reporting period. In contrast, the information technology sector detracted the most from the Index’s return for the reporting period.

ALLOCATION BY SECTOR

As of 8/31/17


Sector		Percentage of Total Investments*


Financials	20.59	%
Information Technology	19.96
Investment Companies	13.05
Consumer Discretionary	9.02
Materials	8.73
Consumer Staples	7.42
Energy	5.87
Industrials	4.89
Telecommunication Services	4.65
Utilities	2.34
Real Estate	1.89
Health Care	1.59

TOTAL	100.00	%

TEN LARGEST COUNTRIES

As of 8/31/17


Country		Percentage of Total Investments*


South Korea	20.66	%
Taiwan	16.78
India	12.18
Brazil	10.17
South Africa	9.56
Mexico	5.08
Russia	4.60
Indonesia	3.24
Malaysia	3.17
Thailand	3.04

TOTAL	88.48	%

Excludes money market funds.


MANAGEMENT’S DISCUSSIONS OF FUND PERFORMANCE			11

About Fund Performance

Shareholder Expenses

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of fund shares and (2) ongoing costs, including management fees and other fund expenses. The expense example, which is based on an investment of $1,000 invested on March 1, 2017 (or commencement of operations, as applicable) and held through August 31, 2017, is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.


12		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 86.87%

BRAZIL — 3.13%
BB Seguridade Participacoes SA		21,600	$	190,295
Centrais Eletricas Brasileiras SA^a		38,600		216,159
Cia. de Saneamento Basico do Estado de Sao Paulo		46,800		478,196
EDP – Energias do Brasil SA		43,200		209,242
M. Dias Branco SA		14,800		230,952
Odontoprev SA		34,600		162,968
Porto Seguro SA		19,900		219,779
Qualicorp SA		34,200		378,798
Sul America SA		36,178		206,735
Transmissora Alianca de Energia Eletrica SA Units		41,500		296,763

				2,589,887
CHINA — 36.30%
AAC Technologies Holdings Inc.^b		114,000		2,078,567
Alibaba Group Holding Ltd. ADR^a		5,579		958,137
ANTA Sports Products Ltd.		149,000		586,371
China Communications Services Corp. Ltd. Class H		576,000		312,049
China Conch Venture Holdings Ltd.		171,000		311,130
China Construction Bank Corp. Class H		1,404,000		1,230,627
China Everbright Ltd.		144,000		328,977
China Medical System Holdings Ltd.		148,000		272,307
China Resources Land Ltd.		434,000		1,355,825
China State Construction International Holdings Ltd.		92,000		133,302
Chongqing Changan Automobile Co. Ltd. Class B		195,600		255,920
Chongqing Rural Commercial Bank Co. Ltd. Class H		576,000		401,101
COSCO SHIPPING Ports Ltd.		262,000		309,655
Country Garden Holdings Co. Ltd.^b		954,000		1,267,701
CSPC Pharmaceutical Group Ltd.		720,000		1,124,188
Dongfeng Motor Group Co. Ltd. Class H		360,000		467,338
Fuyao Glass Industry Group Co. Ltd. Class H^c		52,400		167,046
Geely Automobile Holdings Ltd.		810,000		1,991,248
Guangzhou Automobile Group Co. Ltd. Class H		396,000		781,228
Haitian International Holdings Ltd.		144,000		432,380


Security	Shares		Value
Jiangsu Expressway Co. Ltd. Class H		126,000	$	193,191
Longfor Properties Co. Ltd.		288,000		691,808
NetEase Inc. ADR		6,300		1,737,792
New Oriental Education & Technology Group Inc. ADR		23,076		1,886,463
Nine Dragons Paper (Holdings) Ltd.		342,000		570,696
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		184,000		146,938
Shanghai Industrial Holdings Ltd.		46,000		139,885
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		72,800		179,152
Sihuan Pharmaceutical Holdings Group Ltd.		864,000		332,289
Sino Biopharmaceutical Ltd.		745,000		653,955
Sino-Ocean Group Holding Ltd.		654,000		451,239
Sinopec Engineering Group Co. Ltd. Class H		279,000		251,677
Sunac China Holdings Ltd.		360,000		1,080,950
Sunny Optical Technology Group Co. Ltd.		114,000		1,634,304
TAL Education Group Class A ADR		49,896		1,518,335
Tencent Holdings Ltd.		46,800		1,967,329
TravelSky Technology Ltd. Class H		114,000		311,712
Yum China Holdings Inc.^a		44,424		1,570,833

				30,083,645
CZECH REPUBLIC — 0.67%
Moneta Money Bank AS^c		112,518		393,863
O2 Czech Republic AS		13,140		164,485

				558,348
EGYPT — 0.37%
Commercial International Bank Egypt SAE		63,909		304,889

				304,889
HUNGARY — 0.91%
MOL Hungarian Oil & Gas PLC		2,990		277,116
Richter Gedeon Nyrt		18,198		473,199

				750,315
INDONESIA — 2.60%
Adaro Energy Tbk PT		3,283,200		449,096
Bank Danamon Indonesia Tbk PT		838,800		342,637
Bank Negara Indonesia Persero Tbk PT		986,400		543,400
United Tractors Tbk PT		325,800		739,900


SCHEDULES OF INVESTMENTS			13

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Waskita Karya Persero Tbk PT		489,600	$	81,465

				2,156,498
MALAYSIA — 0.91%
AirAsia Bhd		394,200		306,461
Alliance Financial Group Bhd		282,600		254,112
PPB Group Bhd		48,600		189,825

				750,398
MEXICO — 1.02%
Gentera SAB de CV		189,300		291,341
Grupo Aeroportuario del Pacifico SAB de CV Series B		50,400		557,680

				849,021
PAKISTAN — 0.13%
Lucky Cement Ltd.		18,200		103,283

				103,283
POLAND — 0.79%
Jastrzebska Spolka Weglowa SA^a		14,580		424,335
Tauron Polska Energia SA^a		213,125		233,797

				658,132
QATAR — 0.72%
Qatar Electricity & Water Co. QSC		3,854		196,868
Qatar Insurance Co. SAQ		22,014		399,018

				595,886
RUSSIA — 5.74%
Alrosa PJSC		451,900		628,341
Inter RAO UES PJSC		5,886,000		392,130
Lukoil PJSC		597		30,120
Mobile TeleSystems PJSC ADR		78,357		782,786
Novolipetsk Steel PJSC		252,360		597,495
PhosAgro PJSC GDR^d		15,501		215,464
RusHydro PJSC		19,804,000		281,877
Surgutneftegas OJSC		1,118,100		517,223
Tatneft PJSC Class S		198,900		1,315,155

				4,760,591
SOUTH AFRICA — 4.15%
Bidvest Group Ltd. (The)		59,400		783,545
Capitec Bank Holdings Ltd.		4,788		331,725
Coronation Fund Managers Ltd.		52,932		286,499
Exxaro Resources Ltd.		49,284		496,234
Liberty Holdings Ltd.		32,436		258,540
Mondi Ltd.		20,448		558,054
Netcare Ltd.		91,602		169,919
Pick n Pay Stores Ltd.		33,858		166,665
SPAR Group Ltd. (The)		26,892		349,767


Security	Shares		Value
Tiger Brands Ltd.		1,325	$	41,083

				3,442,031
SOUTH KOREA — 15.77%
BGF retail Co. Ltd.		4,464		361,047
BNK Financial Group Inc.		42,048		367,678
DGB Financial Group Inc.		27,270		266,025
Dongbu Insurance Co. Ltd.		8,028		535,390
E-MART Inc.		3,402		675,814
GS Retail Co. Ltd.		5,688		203,539
Hana Financial Group Inc.		45,486		1,976,600
Hanwha Chemical Corp.		15,912		498,837
Hanwha Life Insurance Co. Ltd.		25,500		165,537
Hyosung Corp.		4,086		574,345
Hyundai Department Store Co. Ltd.		2,456		210,402
Hyundai Engineering & Construction Co. Ltd.		15,372		554,161
Hyundai Marine & Fire Insurance Co. Ltd.		10,080		412,997
Hyundai Steel Co.		14,004		716,593
KT&G Corp.		13,194		1,339,760
Kumho Petrochemical Co. Ltd.		2,496		174,428
LG Display Co. Ltd.		16,399		453,023
Lotte Chemical Corp.		2,862		1,013,985
Samsung Electronics Co. Ltd.		813		1,669,837
SK Telecom Co. Ltd.		2,837		637,797
Yuhan Corp.		1,296		259,752

				13,067,547
TAIWAN — 10.19%
Chicony Electronics Co. Ltd.		114,621		287,891
China Life Insurance Co. Ltd./Taiwan		614,000		677,498
Feng TAY Enterprise Co. Ltd.		29,880		141,583
Foxconn Technology Co. Ltd.		114,720		364,166
Highwealth Construction Corp.		165,000		262,434
Innolux Corp.		1,350,000		657,576
Inventec Corp.		461,000		365,849
Lite-On Technology Corp.		288,718		427,160
Micro-Star International Co. Ltd.		144,000		327,804
Nien Made Enterprise Co. Ltd.		30,000		322,575
Novatek Microelectronics Corp.		114,000		443,852
Phison Electronics Corp.		12,000		161,834
Powertech Technology Inc.		131,000		397,614
Realtek Semiconductor Corp.		108,000		418,702
Ruentex Development Co. Ltd.^a		34,800		34,075
Ruentex Industries Ltd.		162,000		260,615


14		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2017


Security	Shares		Value
Shin Kong Financial Holding Co. Ltd.		918,000	$	266,770
Taiwan Business Bank		999,504		276,214
Taiwan Semiconductor Manufacturing Co. Ltd.		165,000		1,183,687
Teco Electric and Machinery Co. Ltd.		216,000		201,836
Transcend Information Inc.		46,000		137,182
Vanguard International Semiconductor Corp.		29,000		52,371
Wistron Corp.		389,906		368,214
WPG Holdings Ltd.		313,000		407,598

				8,445,100
THAILAND — 0.52%
KCE Electronics PCL NVDR		61,400		161,798
Robinson PCL NVDR		77,900		134,897
Thai Union Group PCL NVDR		222,300		132,556

				429,251
TURKEY — 1.03%
Aselsan Elektronik Sanayi ve TAS		33,840		264,639
Turkiye Halk Bankasi AS		72,126		309,599
Turkiye Sise ve Cam Fabrikalari AS		215,219		276,773

				851,011
UNITED ARAB EMIRATES — 1.92%
Aldar Properties PJSC		370,530		233,025
DAMAC Properties Dubai Co. PJSC		433,260		476,538
Dubai Islamic Bank PJSC		250,259		414,929
Emaar Properties PJSC		202,338		468,235

				1,592,727
TOTAL COMMON STOCKS
(Cost: $61,406,242)				71,988,560

PREFERRED STOCKS — 5.43%

BRAZIL — 2.92%
Braskem SA Class A, Preference Shares		29,900		362,151
Cia. Paranaense de Energia Class B, Preference Shares		30,600		279,504
Itausa-Investimentos Itau SA, Preference Shares		547,280		1,774,144

				2,415,799
RUSSIA — 0.52%
Surgutneftegas OJSC, Preference Shares		880,200		434,530

				434,530


Security	Shares		Value
SOUTH KOREA — 1.99%
LG Household & Health Care Ltd., Preference Shares		330	$	175,594
Samsung Electronics Co. Ltd., Preference Shares		883		1,476,104

				1,651,698
TOTAL PREFERRED STOCKS
(Cost: $3,789,711)				4,502,027

INVESTMENT COMPANIES — 7.49%

INDIA — 7.49%
iShares MSCI India ETF^e		181,962		6,206,724

				6,206,724

TOTAL INVESTMENT COMPANIES
(Cost: $5,506,383)				6,206,724

SHORT-TERM INVESTMENTS — 3.07%

MONEY MARKET FUNDS — 3.07%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		2,360,187		2,360,895
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		184,901		184,901

				2,545,796

TOTAL SHORT-TERM INVESTMENTS
(Cost: $2,545,796)				2,545,796

TOTAL INVESTMENTS IN SECURITIES — 102.86%
(Cost: $73,248,132)^h				85,243,107
Other Assets, Less Liabilities — (2.86)%				(2,370,192	)

NET ASSETS — 100.00%			$	82,872,915

ADR — American Depositary Receipts

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $73,503,920. Net unrealized appreciation was $11,739,187, of which $12,639,388 represented gross unrealized appreciation on investments and $900,201 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			15

Schedule of Investments (Continued)

iSHARES^® EDGE MSCI MULTIFACTOR EMERGING MARKETS ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the year ended August 31, 2017, for purposes of Section 2(a)3 of the 1940 Act, and/or related parties of the Fund were as follows:


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a		Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		160,740		2,199,447	^b		—		2,360,187	$	2,360,895	$	64	$	—	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		—		184,901	^b		—		184,901		184,901		2		—		447
iShares MSCI India ETF		46,118		135,844			—		181,962		6,206,724		—		616,602		21,588

										$	8,752,520	$	66	$	616,602	$	22,035

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	71,988,560	$	—	$	—	$	71,988,560
Preferred stocks		4,502,027		—		—		4,502,027
Investment companies		6,206,724		—		—		6,206,724
Money market funds		2,545,796		—		—		2,545,796

Total	$	85,243,107	$	—	$	—	$	85,243,107

See notes to financial statements.


16		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 95.20%

BRAZIL — 4.21%
Ambev SA		64,800	$	409,010
B3 SA – Brasil Bolsa Balcao		64,400		452,741
Banco Bradesco SA		12,520		128,326
Banco do Brasil SA		22,400		218,557
Banco Santander Brasil SA Units		25,200		224,573
Cielo SA		12,600		89,821
Cosan SA Industria e Comercio		18,000		220,763
CPFL Energia SA		36,400		313,393
Duratex SA		33,600		91,837
EDP – Energias do Brasil SA		73,600		356,486
Engie Brasil Energia SA		11,200		128,500
Localiza Rent A Car SA		25,910		490,375
Lojas Renner SA		8,610		83,734
Natura Cosmeticos SA		31,200		292,520
Ultrapar Participacoes SA		4,400		102,713
WEG SA		73,100		475,338

				4,078,687
CHILE — 1.36%
Aguas Andinas SA Series A		123,760		79,045
Banco de Credito e Inversiones		4,939		320,292
Banco Santander Chile		4,877,069		356,599
Cia. Cervecerias Unidas SA		9,017		122,920
Empresas COPEC SA		34,559		441,160

				1,320,016
CHINA — 27.78%
58.com Inc. ADR^a		1,877		117,556
AAC Technologies Holdings Inc.		22,000		401,127
Agricultural Bank of China Ltd. Class H		409,000		192,312
Air China Ltd. Class H		144,000		128,058
Alibaba Group Holding Ltd. ADR^a,b		19,657		3,375,893
Alibaba Health Information Technology Ltd.^a,b		196,000		91,408
Alibaba Pictures Group Ltd.^a		1,120,000		196,053
Aluminum Corp. of China Ltd. Class H^a		224,000		165,715
ANTA Sports Products Ltd.		17,000		66,901
Baidu Inc. ADR^a		5,074		1,157,126
Bank of China Ltd. Class H		993,000		522,735
Bank of Communications Co. Ltd. Class H		290,000		221,582
Beijing Enterprises Holdings Ltd.		22,000		122,840


Security	Shares		Value
Beijing Enterprises Water Group Ltd.		196,000	$	166,538
Brilliance China Automotive Holdings Ltd.		142,000		367,408
Byd Co. Ltd. Class H		77,000		458,471
China CITIC Bank Corp. Ltd. Class H		420,000		277,444
China Conch Venture Holdings Ltd.		63,000		114,627
China Construction Bank Corp. Class H		1,400,000		1,227,121
China Everbright Bank Co. Ltd. Class H		728,000		349,747
China Everbright International Ltd.		252,000		332,933
China Everbright Ltd.		88,000		201,041
China Galaxy Securities Co. Ltd. Class H		224,000		202,922
China Life Insurance Co. Ltd. Class H		98,000		314,293
China Longyuan Power Group Corp. Ltd.		364,000		272,542
China Medical System Holdings Ltd.		126,000		231,829
China Merchants Bank Co. Ltd. Class H		157,000		591,775
China Minsheng Banking Corp. Ltd. Class H		336,000		335,294
China Mobile Ltd.		62,000		657,514
China Oilfield Services Ltd. Class H		34,000		27,890
China Overseas Land & Investment Ltd.		34,000		118,815
China Pacific Insurance Group Co. Ltd. Class H		98,600		464,248
China Shenhua Energy Co. Ltd. Class H		129,500		333,411
China Southern Airlines Co. Ltd. Class H		142,000		110,857
China Vanke Co. Ltd. Class H		78,400		234,906
Chongqing Changan Automobile Co. Ltd. Class B		72,326		94,630
CRRC Corp. Ltd. Class H		211,000		190,337
CSPC Pharmaceutical Group Ltd.		144,000		224,838
Ctrip.com International Ltd. ADR^a,b		4,095		210,688
Dongfeng Motor Group Co. Ltd. Class H		88,000		114,238
Fosun International Ltd.		49,000		85,022
GCL-Poly Energy Holdings Ltd.^a,b		840,000		94,449
Geely Automobile Holdings Ltd.		289,000		710,457


SCHEDULES OF INVESTMENTS			17

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2017


Security	Shares		Value
Guangzhou Automobile Group Co. Ltd. Class H		224,000	$	441,907
Haier Electronics Group Co. Ltd.		44,000		116,937
Huaneng Renewables Corp. Ltd. Class H		728,000		223,243
Industrial & Commercial Bank of China Ltd. Class H		735,000		550,326
JD.com Inc. ADR^a		12,936		542,148
Lenovo Group Ltd.		560,000		306,244
Momo Inc. ADR^a		1,792		69,046
NetEase Inc. ADR		952		262,600
New Oriental Education & Technology Group Inc. ADR		2,128		173,964
People’s Insurance Co. Group of China Ltd. (The) Class H		655,000		308,818
Ping An Insurance Group Co. of China Ltd. Class H		157,000		1,246,740
Shandong Weigao Group Medical Polymer Co. Ltd. Class H		68,000		54,303
Shanghai Fosun Pharmaceutical Group Co. Ltd. Class H		90,000		338,084
Shanghai Pharmaceuticals Holding Co. Ltd. Class H		110,400		271,682
Shenzhou International Group Holdings Ltd.		17,000		136,192
Sino-Ocean Group Holding Ltd.		260,000		179,392
Sinopharm Group Co. Ltd. Class H		67,200		303,525
Sun Art Retail Group Ltd.		157,000		144,634
Tencent Holdings Ltd.		120,400		5,061,247
Weibo Corp. ADR^a,b		1,484		150,032
Zhejiang Expressway Co. Ltd. Class H		112,000		140,099

				26,896,754
COLOMBIA — 0.65%
Cementos Argos SA		155,696		632,344

				632,344
CZECH REPUBLIC — 0.46%
Komercni Banka AS		9,996		439,770

				439,770
EGYPT — 0.11%
Global Telecom Holding SAE^a		254,828		101,585

				101,585
GREECE — 0.20%
Hellenic Telecommunications Organization SA		8,481		107,889
OPAP SA		7,616		85,023

				192,912


Security	Shares		Value
HUNGARY — 0.86%
MOL Hungarian Oil & Gas PLC		9,026	$	836,538

				836,538
INDIA — 8.27%
Axis Bank Ltd. GDR^c		26,916		1,037,612
ICICI Bank Ltd. ADR		129,866		1,216,844
Infosys Ltd. ADR		116,816		1,752,240
Mahindra & Mahindra Ltd. GDR		50,456		1,052,008
Reliance Industries Ltd. GDR^d		31,640		1,564,598
Wipro Ltd. ADR		232,960		1,383,782

				8,007,084
INDONESIA — 2.24%
Astra International Tbk PT		412,200		243,298
Bank Central Asia Tbk PT		174,200		247,421
Bank Mandiri Persero Tbk PT		414,900		407,374
Bank Negara Indonesia Persero Tbk PT		212,800		117,230
Bank Rakyat Indonesia Persero Tbk PT		264,000		299,281
Perusahaan Gas Negara Persero Tbk PT		529,200		84,088
Telekomunikasi Indonesia Persero Tbk PT		375,400		131,961
Unilever Indonesia Tbk PT		60,100		227,706
United Tractors Tbk PT		132,000		299,775
XL Axiata Tbk PT^a		409,500		110,493

				2,168,627
MALAYSIA — 2.91%
Astro Malaysia Holdings Bhd		540,400		339,134
Axiata Group Bhd		190,400		219,804
CIMB Group Holdings Bhd		123,900		205,412
DiGi.Com Bhd^b		219,100		248,318
Maxis Bhd		110,400		149,423
Petronas Dagangan Bhd		25,200		143,983
Public Bank Bhd		159,600		769,877
Sime Darby Bhd		255,900		539,305
Telekom Malaysia Bhd		132,000		198,750

				2,814,006
MEXICO — 3.25%
Arca Continental SAB de CV		42,200		309,703
Cemex SAB de CV CPO^a		232,640		218,115
Coca-Cola Femsa SAB de CV Series L		84,700		696,362
Fomento Economico Mexicano SAB de CV		31,000		311,222


18		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2017


Security	Shares		Value
Gentera SAB de CV		216,400	$	333,049
Grupo Financiero Banorte SAB de CV Series O		76,300		521,945
Grupo Financiero Santander Mexico SAB de CV Series B		129,300		267,193
Industrias Penoles SAB de CV		6,300		164,203
Infraestructura Energetica Nova SAB de CV		14,000		76,313
Kimberly-Clark de Mexico SAB de CV Series A		126,600		249,325

				3,147,430
PHILIPPINES — 0.73%
Aboitiz Equity Ventures Inc.		50,200		73,039
Energy Development Corp.		1,492,400		197,742
SM Prime Holdings Inc.		663,700		433,214

				703,995
POLAND — 1.08%
Bank Millennium SA^a		29,853		62,239
Bank Zachodni WBK SA		1,347		139,322
KGHM Polska Miedz SA		13,137		463,585
mBank SA^a		655		80,285
Polski Koncern Naftowy ORLEN SA		9,115		300,738

				1,046,169
QATAR — 0.48%
Commercial Bank PQSC (The)^a		23,979		196,310
Ooredoo QSC		11,212		269,704

				466,014
RUSSIA — 3.16%
Alrosa PJSC		106,400		147,943
Gazprom PJSC		101,210		205,156
Gazprom PJSC ADR		46,606		185,958
Inter RAO UES PJSC		4,060,000		270,480
Lukoil PJSC		1,521		76,737
Lukoil PJSC ADR		4,598		231,049
Magnit PJSC GDR^c		2,940		122,863
Novatek PJSC GDR^c		2,999		316,994
Novolipetsk Steel PJSC		56,896		134,709
Rosneft Oil Co. PJSC		2,040		10,735
RusHydro PJSC		11,060,000		157,421
Sberbank of Russia PJSC		73,710		233,397
Sberbank of Russia PJSC ADR		55,371		755,814
Tatneft PJSC Class S		32,270		213,374

				3,062,630


Security	Shares		Value
SOUTH AFRICA — 7.66%
Barclays Africa Group Ltd.		23,942	$	273,323
Coronation Fund Managers Ltd.		38,808		210,051
Exxaro Resources Ltd.		12,555		126,415
FirstRand Ltd.		75,516		322,632
Foschini Group Ltd. (The)		4,508		53,160
Gold Fields Ltd.		47,103		210,192
Imperial Holdings Ltd.		14,560		233,699
Investec Ltd.		90,754		691,748
Massmart Holdings Ltd.		8,344		78,102
Mondi Ltd.		10,732		292,891
Mr. Price Group Ltd.		11,900		165,945
MTN Group Ltd.		20,593		204,750
Naspers Ltd. Class N		7,984		1,806,556
Nedbank Group Ltd.		5,280		89,318
NEPI Rockcastle PLC^a		13,243		192,060
Netcare Ltd.		92,484		171,555
RMB Holdings Ltd.		16,049		82,051
Sanlam Ltd.		58,889		325,311
Sasol Ltd.		9,753		294,057
SPAR Group Ltd. (The)		287		3,733
Standard Bank Group Ltd.		39,822		512,975
Vodacom Group Ltd.		62,952		879,512
Woolworths Holdings Ltd./South Africa		42,644		194,691

				7,414,727
SOUTH KOREA — 13.67%
AmorePacific Corp.		925		236,254
AmorePacific Group		1,607		190,970
BNK Financial Group Inc.		17,612		154,003
CJ CheilJedang Corp.		449		144,344
DGB Financial Group Inc.		25,093		244,788
Doosan Heavy Industries & Construction Co. Ltd.		5,124		81,795
GS Engineering & Construction Corp.^a		2,072		52,370
GS Holdings Corp.		5,837		365,460
Hana Financial Group Inc.		5,862		254,734
Hankook Tire Co. Ltd.		4,773		249,740
Hanwha Chemical Corp.		4,037		126,559
Hyosung Corp.		996		140,002
Hyundai Heavy Industries Co. Ltd.^a		784		103,249
Hyundai Marine & Fire Insurance Co. Ltd.		3,640		149,138
Hyundai Motor Co.		206		25,668
Kangwon Land Inc.		8,232		251,866
KB Financial Group Inc.		6,020		295,768


SCHEDULES OF INVESTMENTS			19

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2017


Security	Shares		Value
LG Chem Ltd.		1,820	$	611,724
LG Corp.		5,656		421,341
LG Display Co. Ltd.		13,496		372,828
LG Electronics Inc.		4,984		360,231
LG Household & Health Care Ltd.		343		292,018
LG Innotek Co. Ltd.		1,906		311,863
NAVER Corp.		420		281,217
NCsoft Corp.		308		105,025
POSCO		2,016		614,133
S-Oil Corp.		3,057		340,239
Samsung C&T Corp.		969		110,856
Samsung Card Co. Ltd.		4,490		147,729
Samsung Electro-Mechanics Co. Ltd.		2,272		203,505
Samsung Electronics Co. Ltd.		1,889		3,879,854
Samsung Fire & Marine Insurance Co. Ltd.		1,104		270,713
Samsung SDI Co. Ltd.		1,517		264,358
Samsung SDS Co. Ltd.		601		89,276
Shinhan Financial Group Co. Ltd.		18,032		831,557
SK Hynix Inc.		7,349		447,092
SK Telecom Co. Ltd.		925		207,953

				13,230,220
TAIWAN — 11.46%
Acer Inc.		577,000		290,613
Advanced Semiconductor Engineering Inc.		260,372		314,044
AU Optronics Corp.		206,000		84,642
Cathay Financial Holding Co. Ltd.		140,000		228,470
Chailease Holding Co. Ltd.		98,000		266,927
China Steel Corp.		532,000		445,992
Chunghwa Telecom Co. Ltd.		287,000		998,542
Delta Electronics Inc.		44,000		241,294
EVA Airways Corp.		231,441		120,402
Far Eastern New Century Corp.		420,000		336,095
Fubon Financial Holding Co. Ltd.		448,000		719,971
Hiwin Technologies Corp.		17,380		154,053
Hotai Motor Co. Ltd.		17,000		200,255
Innolux Corp.		206,000		100,341
Inventec Corp.		206,000		163,481
Lite-On Technology Corp.		180,039		266,369
MediaTek Inc.		17,000		152,374
Micro-Star International Co. Ltd.		38,000		86,504
President Chain Store Corp.		72,000		602,406
Siliconware Precision Industries Co. Ltd.		125,000		197,985


Security	Shares		Value
Taiwan Business Bank		759,400	$	209,861
Taiwan Mobile Co. Ltd.		125,000		447,331
Taiwan Semiconductor Manufacturing Co. Ltd.		588,000		4,218,231
Wistron Corp.		266,529		251,701

				11,097,884
THAILAND — 3.02%
BTS Group Holdings PCL NVDR		2,161,600		563,103
Kasikornbank PCL NVDR		78,400		474,579
Minor International PCL NVDR		392,300		469,626
PTT Exploration & Production PCL NVDR		60,100		158,372
PTT PCL NVDR		31,400		377,311
Siam Cement PCL (The) Foreign		4,400		66,255
Siam Cement PCL (The) NVDR		39,200		590,272
Siam Commercial Bank PCL (The) NVDR		49,300		223,450

				2,922,968
TURKEY — 1.04%
Anadolu Efes Biracilik ve Malt Sanayii AS		17,052		104,706
Arcelik AS		63,318		440,148
Coca-Cola Icecek AS		11,487		133,550
KOC Holding AS		42,840		223,844
Ulker Biskuvi Sanayi AS		17,276		103,279

				1,005,527
UNITED ARAB EMIRATES — 0.60%
Abu Dhabi Commercial Bank PJSC		146,496		291,150
First Abu Dhabi Bank PJSC		101,040		286,084

				577,234

TOTAL COMMON STOCKS
(Cost: $80,611,028)				92,163,121

PREFERRED STOCKS — 4.49%

BRAZIL — 3.37%
Banco Bradesco SA, Preference Shares		75,650		807,363
Cia. Brasileira de Distribuicao, Preference Shares		15,100		345,484
Cia. Energetica de Minas Gerais, Preference Shares		81,200		216,262
Cia. Paranaense de Energia Class B, Preference Shares		25,200		230,179
Itau Unibanco Holding SA, Preference Shares		96,840		1,241,874


20		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2017


Security	Shares		Value
Itausa-Investimentos Itau SA, Preference Shares		107,772	$	349,370
Telefonica Brasil SA, Preference Shares		4,400		68,298

				3,258,830
CHILE — 0.14%
Embotelladora Andina SA Class B, Preference Shares		29,937		141,067

				141,067
COLOMBIA — 0.16%
Bancolombia SA, Preference Shares		13,755		156,944

				156,944
SOUTH KOREA — 0.82%
LG Chem Ltd., Preference Shares		763		177,961
Samsung Electronics Co. Ltd., Preference Shares		368		615,183

				793,144

TOTAL PREFERRED STOCKS
(Cost: $3,646,820)				4,349,985

RIGHTS — 0.00%

CHINA — 0.00%
Fosun International Ltd. (Expires 09/07/17)^a		31		—

				—

TOTAL RIGHTS
(Cost: $0)				—

SHORT-TERM INVESTMENTS — 4.24%

MONEY MARKET FUNDS — 4.24%
BlackRock Cash Funds: Institutional, SL Agency Shares
1.32%^e,f,g		3,986,796		3,987,993
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^e,f		113,313		113,313

				4,101,306

TOTAL SHORT-TERM INVESTMENTS
(Cost: $4,101,247)				4,101,306


	Value
TOTAL INVESTMENTS IN SECURITIES — 103.93%
(Cost: $88,359,095)^h	$	100,614,412
Other Assets, Less Liabilities — (3.93)%		(3,801,954	)

NET ASSETS — 100.00%	$	96,812,458

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

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

^e	Affiliated issuer. See Schedule 1.

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

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $88,662,119. Net unrealized appreciation was $11,952,293, of which $12,534,573 represented gross unrealized appreciation on investments and $582,280 represented gross unrealized depreciation on investments.


SCHEDULES OF INVESTMENTS			21

Schedule of Investments (Continued)

iSHARES^® MSCI EM ESG OPTIMIZED ETF

August 31, 2017

Schedule 1 — Affiliates (Note 2)


Affiliated issuer	Shares held at 08/31/16		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^a			Change in unrealized appreciation (depreciation)		Income
BlackRock Cash Funds: Institutional, SL Agency Shares		6,846		3,979,950	^b		—		3,986,796	$	3,987,993	$	(272	)	$	59	$	—	^c
BlackRock Cash Funds: Treasury, SL Agency Shares		8,895		104,418	^b		—		113,313		113,313		—			—		415

										$	4,101,306	$	(272	)	$	59	$	415

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.

Schedule 2 — Fair Value Measurements


	Level 1		Level 2			Level 3		Total
Investments:
Assets:
Common stocks	$	92,163,121	$	—		$	—	$	92,163,121
Preferred stocks		4,349,985		—			—		4,349,985
Rights		—		0	^a		—		0	^a
Money market funds		4,101,306		—			—		4,101,306

Total	$	100,614,412	$	0	^a	$	—	$	100,614,412

Rounds to less than $1.

See notes to financial statements.


22		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017


Security	Shares		Value
COMMON STOCKS — 81.55%

BRAZIL — 6.39%
Ambev SA		14,000	$	88,366
B3 SA – Brasil Bolsa Balcao		6,400		44,993
Banco Bradesco SA		2,200		22,549
Banco do Brasil SA		2,600		25,368
Banco Santander Brasil SA Units		1,200		10,694
BB Seguridade Participacoes SA		2,200		19,382
BR Malls Participacoes SA		3,000		12,967
BRF SA^a		1,400		18,919
CCR SA		4,000		22,196
Cia. de Saneamento Basico do Estado de Sao Paulo		600		6,131
Cielo SA		3,000		21,386
Cosan SA Industria e Comercio		600		7,359
CPFL Energia SA		1,000		8,610
Embraer SA		2,400		13,676
Engie Brasil Energia SA		800		9,179
Equatorial Energia SA		800		15,540
Fibria Celulose SA		800		10,625
Hypermarcas SA		1,000		9,379
JBS SA		3,200		8,817
Klabin SA Units		1,800		9,794
Kroton Educacional SA		3,200		18,276
Localiza Rent A Car SA		600		11,356
Lojas Renner SA		2,400		23,341
Multiplan Empreendimentos Imobiliarios SA		400		9,292
Petroleo Brasileiro SA^a		7,800		34,631
Qualicorp SA		600		6,646
Raia Drogasil SA		800		17,632
Rumo SA^a		3,000		9,849
TIM Participacoes SA		2,600		9,321
Ultrapar Participacoes SA		1,000		23,344
Vale SA		8,271		92,214
WEG SA		1,800		11,705

				653,537
CHILE — 1.57%
AES Gener SA		760		266
Banco de Chile		36,924		5,378
Banco de Credito e Inversiones		100		6,485
Banco Santander Chile		119,992		8,774
Cencosud SA		3,790		11,393
Cia. Cervecerias Unidas SA		388		5,289


Security	Shares		Value
Colbun SA		44,700	$	10,768
Empresas CMPC SA		2,794		7,293
Empresas COPEC SA		1,722		21,982
Enel Americas SA		108,040		23,307
Enel Chile SA		57,028		6,714
Enel Generacion Chile SA		8,716		7,388
Itau CorpBanca		956,646		9,141
LATAM Airlines Group SA		1,260		15,799
SACI Falabella		2,030		20,410

				160,387
COLOMBIA — 0.51%
Bancolombia SA		704		7,889
Cementos Argos SA		1,302		5,288
Ecopetrol SA		24,920		11,593
Grupo Argos SA/Colombia		1,030		7,338
Grupo de Inversiones Suramericana SA		988		13,924
Interconexion Electrica SA ESP		1,354		6,143

				52,175
CZECH REPUBLIC — 0.25%
CEZ AS		746		14,126
Komercni Banka AS		260		11,439

				25,565
EGYPT — 0.16%
Commercial International Bank Egypt SAE		3,370		16,077

				16,077
GREECE — 0.55%
Alpha Bank AE^a		4,416		11,183
Eurobank Ergasias SA^a		5,956		6,422
Hellenic Telecommunications Organization SA		904		11,500
JUMBO SA		434		7,224
National Bank of Greece SA^a		15,724		6,375
OPAP SA		896		10,002
Piraeus Bank SA^a		620		3,472

				56,178
HUNGARY — 0.50%
MOL Hungarian Oil & Gas PLC		138		12,790
OTP Bank PLC		680		27,636
Richter Gedeon Nyrt		416		10,817

				51,243
INDONESIA — 3.23%
Adaro Energy Tbk PT		54,200		7,414
Astra International Tbk PT		63,600		37,539


SCHEDULES OF INVESTMENTS			23

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017


Security	Shares		Value
Bank Central Asia Tbk PT		31,200	$	44,314
Bank Mandiri Persero Tbk PT		29,600		29,063
Bank Negara Indonesia Persero Tbk PT		26,000		14,323
Bank Rakyat Indonesia Persero Tbk PT		35,400		40,131
Charoen Pokphand Indonesia Tbk PT		26,000		5,398
Gudang Garam Tbk PT		2,000		10,373
Hanjaya Mandala Sampoerna Tbk PT		38,800		10,586
Indocement Tunggal Prakarsa Tbk PT		6,600		9,795
Indofood Sukses Makmur Tbk PT		17,800		11,173
Kalbe Farma Tbk PT		67,400		8,639
Matahari Department Store Tbk PT		10,400		7,795
Perusahaan Gas Negara Persero Tbk PT		42,400		6,737
Semen Indonesia Persero Tbk PT		11,400		8,950
Telekomunikasi Indonesia Persero Tbk PT		136,800		48,088
Unilever Indonesia Tbk PT		5,000		18,944
United Tractors Tbk PT		5,000		11,355

				330,617
MALAYSIA — 3.16%
AMMB Holdings Bhd		4,800		4,811
Astro Malaysia Holdings Bhd		12,800		8,033
Axiata Group Bhd		8,600		9,928
CIMB Group Holdings Bhd		8,800		14,589
DiGi.Com Bhd		9,200		10,427
Gamuda Bhd		5,600		7,002
Genting Bhd		6,800		15,461
Genting Malaysia Bhd		10,000		13,746
Hong Leong Bank Bhd		2,000		7,231
IHH Healthcare Bhd		6,000		8,416
IJM Corp. Bhd		8,000		6,257
IOI Corp. Bhd		8,200		8,718
IOI Properties Group Bhd		14,600		6,803
Kuala Lumpur Kepong Bhd		2,200		12,642
Malayan Banking Bhd		12,400		27,468
Maxis Bhd		6,800		9,204
MISC Bhd		4,000		6,969
Petronas Chemicals Group Bhd		5,200		8,718
Petronas Gas Bhd		1,800		7,756
PPB Group Bhd		2,600		10,155
Public Bank Bhd		8,400		40,520
Sapura Energy Bhd		14,800		4,783
Sime Darby Bhd		5,000		10,537
Telekom Malaysia Bhd		6,200		9,335


Security	Shares		Value
Tenaga Nasional Bhd		11,200	$	37,451
UMW Holdings Bhd^a		5,000		7,119
YTL Corp. Bhd		27,000		9,041

				323,120
MEXICO — 5.06%
Alfa SAB de CV		9,800		13,763
America Movil SAB de CV Series L		98,400		91,760
Arca Continental SAB de CV		1,200		8,807
Cemex SAB de CV CPO^a		38,800		36,378
Coca-Cola Femsa SAB de CV Series L		1,400		11,510
Fibra Uno Administracion SA de CV		6,400		11,451
Fomento Economico Mexicano SAB de CV		5,800		58,229
Gruma SAB de CV Series B		840		12,359
Grupo Aeroportuario del Pacifico SAB de CV Series B		1,200		13,278
Grupo Aeroportuario del Sureste SAB de CV Series B		770		15,757
Grupo Bimbo SAB de CV Series A		6,000		14,590
Grupo Carso SAB de CV Series A1		1,400		5,675
Grupo Financiero Banorte SAB de CV Series O		7,000		47,885
Grupo Financiero Inbursa SAB de CV Series O		7,000		11,743
Grupo Financiero Santander Mexico SAB de CV Series B		4,200		8,679
Grupo Mexico SAB de CV Series B		11,200		37,038
Grupo Televisa SAB		7,600		39,418
Industrias Penoles SAB de CV		400		10,426
Infraestructura Energetica Nova SAB de CV		600		3,270
Kimberly-Clark de Mexico SAB de CV Series A		4,400		8,665
Mexichem SAB de CV		3,600		9,619
Promotora y Operadora de Infraestructura SAB de CV		670		7,365
Wal-Mart de Mexico SAB de CV		16,200		39,530

				517,195
PERU — 0.52%
Cia. de Minas Buenaventura SAA ADR		538		7,225
Credicorp Ltd.		176		35,700
Southern Copper Corp.		258		10,501

				53,426
PHILIPPINES — 1.56%
Aboitiz Equity Ventures Inc.		6,160		8,962


24		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017


Security	Shares		Value
Ayala Corp.		700	$	12,585
Ayala Land Inc.		27,200		22,326
BDO Unibank Inc.		7,400		18,381
DMCI Holdings Inc.		28,000		8,591
GT Capital Holdings Inc.		360		7,866
JG Summit Holdings Inc.		9,680		13,583
Jollibee Foods Corp.		1,820		8,472
Metro Pacific Investments Corp.		53,600		6,652
PLDT Inc.		300		10,143
SM Investments Corp.		720		11,404
SM Prime Holdings Inc.		32,400		21,148
Universal Robina Corp.		3,340		9,536

				159,649
POLAND — 1.97%
Alior Bank SA^a		432		7,979
Bank Pekao SA		562		20,123
Bank Zachodni WBK SA		122		12,619
CCC SA		158		11,593
KGHM Polska Miedz SA		454		16,021
LPP SA		6		14,662
mBank SA^a		56		6,864
PGE Polska Grupa Energetyczna SA		3,406		13,601
Polski Koncern Naftowy ORLEN SA		982		32,400
Polskie Gornictwo Naftowe i Gazownictwo SA		6,568		12,554
Powszechna Kasa Oszczednosci Bank Polski SA^a		3,014		30,938
Powszechny Zaklad Ubezpieczen SA		1,644		22,313

				201,667
QATAR — 0.00%
Masraf Al Rayan QSC		1		10

				10
RUSSIA — 4.48%
Alrosa PJSC		8,600		11,958
Gazprom PJSC		30,600		62,027
Inter RAO UES PJSC		134,000		8,927
Lukoil PJSC		1,262		63,670
Magnit PJSC GDR^b		772		32,262
MMC Norilsk Nickel PJSC		168		28,292
Mobile TeleSystems PJSC ADR		1,268		12,667
Moscow Exchange MICEX-RTS PJSC		5,600		10,144
Novatek PJSC GDR^b		228		24,100
Novolipetsk Steel PJSC		4,620		10,939
Rosneft Oil Co. PJSC GDR^b		3,482		18,106
RusHydro PJSC		500,000		7,117


Security	Shares		Value
Sberbank of Russia PJSC ADR		7,606	$	103,822
Severstal PJSC		400		6,275
Surgutneftegas OJSC		20,000		9,252
Tatneft PJSC Class S		4,720		31,209
VTB Bank PJSC GDR^b		7,912		17,675

				458,442
SOUTH AFRICA — 9.52%
AngloGold Ashanti Ltd.		1,376		13,938
Aspen Pharmacare Holdings Ltd.		1,204		26,855
Barclays Africa Group Ltd.		1,816		20,732
Bid Corp. Ltd.		1,168		26,549
Bidvest Group Ltd. (The)		778		10,263
Brait SE^a		1,370		6,065
Capitec Bank Holdings Ltd.		116		8,037
Discovery Ltd.		1,012		11,726
Exxaro Resources Ltd.		12		121
FirstRand Ltd.		8,600		36,742
Fortress Income Fund Ltd.		3,046		9,236
Foschini Group Ltd. (The)		688		8,113
Gold Fields Ltd.		2,766		12,343
Growthpoint Properties Ltd.		6,664		12,895
Hyprop Investments Ltd.		880		7,727
Impala Platinum Holdings Ltd.^a		2,018		6,242
Imperial Holdings Ltd.		504		8,090
Investec Ltd.		800		6,098
Life Healthcare Group Holdings Ltd.		4,634		9,402
Mondi Ltd.		360		9,825
Mr. Price Group Ltd.		766		10,682
MTN Group Ltd.		5,190		51,603
Naspers Ltd. Class N		1,256		284,198
Nedbank Group Ltd.		510		8,627
NEPI Rockcastle PLC^a		610		8,847
Netcare Ltd.		4,040		7,494
Pick n Pay Stores Ltd.		22		108
PSG Group Ltd.		276		5,364
Rand Merchant Investment Holdings Ltd.		2,062		6,604
Redefine Properties Ltd.		14,472		11,869
Remgro Ltd.		1,364		22,809
Resilient REIT Ltd.		844		8,121
RMB Holdings Ltd.		1,398		7,147
Sanlam Ltd.		4,954		27,367
Sappi Ltd.		1,684		11,324
Sasol Ltd.		1,758		53,004
Shoprite Holdings Ltd.		1,232		21,364


SCHEDULES OF INVESTMENTS			25

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017


Security	Shares		Value
Sibanye Gold Ltd.		6,002	$	9,591
SPAR Group Ltd. (The)		838		10,899
Standard Bank Group Ltd.		4,136		53,279
Steinhoff International Holdings NV Class H		9,486		45,877
Tiger Brands Ltd.		526		16,309
Truworths International Ltd.		1,526		9,748
Vodacom Group Ltd.		1,166		16,290
Woolworths Holdings Ltd./South Africa		3,244		14,811

				974,335
SOUTH KOREA — 19.64%
AmorePacific Corp.		94		24,008
AmorePacific Group		96		11,408
BGF retail Co. Ltd.		86		6,956
BNK Financial Group Inc.		788		6,890
Celltrion Inc.^a		220		22,457
CJ CheilJedang Corp.		32		10,287
CJ Corp.		58		9,104
Coway Co. Ltd.		160		14,019
Daelim Industrial Co. Ltd.		116		8,621
DGB Financial Group Inc.		506		4,936
Dongbu Insurance Co. Ltd.		170		11,337
E-MART Inc.		72		14,303
GS Holdings Corp.		154		9,642
Hana Financial Group Inc.		912		39,631
Hankook Tire Co. Ltd.		246		12,872
Hanmi Pharm Co. Ltd.^a		20		7,148
Hanon Systems		716		7,334
Hanssem Co. Ltd.		26		3,920
Hanwha Chemical Corp.		362		11,349
Hanwha Corp.		186		8,107
Hotel Shilla Co. Ltd.		102		5,599
Hyosung Corp.		72		10,121
Hyundai Development Co. Engineering & Construction		224		7,479
Hyundai Engineering & Construction Co. Ltd.		272		9,806
Hyundai Glovis Co. Ltd.		86		11,822
Hyundai Heavy Industries Co. Ltd.^a		102		13,433
Hyundai Marine & Fire Insurance Co. Ltd.		228		9,342
Hyundai Mobis Co. Ltd.		214		44,789
Hyundai Motor Co.		406		50,588
Hyundai Robotics Co. Ltd.^a		14		5,500
Hyundai Steel Co.		242		12,383


Security	Shares		Value
Industrial Bank of Korea		744	$	9,864
Kakao Corp.		122		13,308
Kangwon Land Inc.		408		12,483
KB Financial Group Inc.		1,040		51,096
KCC Corp.		26		9,131
Kia Motors Corp.		902		28,357
Korea Aerospace Industries Ltd. Class A		240		9,844
Korea Electric Power Corp.		766		29,143
Korea Investment Holdings Co. Ltd.		126		7,341
Korea Zinc Co. Ltd.		26		11,898
KT&G Corp.		340		34,525
LG Chem Ltd.		120		40,333
LG Corp.		346		25,775
LG Display Co. Ltd.		784		21,658
LG Electronics Inc.		300		21,683
LG Household & Health Care Ltd.		30		25,541
LG Innotek Co. Ltd.		58		9,490
Lotte Chemical Corp.		54		19,132
Lotte Shopping Co. Ltd.		46		10,484
Medy-Tox Inc.		18		9,085
Mirae Asset Daewoo Co. Ltd.		1,168		10,514
NAVER Corp.		80		53,565
NCsoft Corp.		58		19,777
Netmarble Games Corp.^a,c		38		5,207
NH Investment & Securities Co. Ltd.		514		6,291
POSCO		226		68,846
S-Oil Corp.		134		14,914
Samsung Biologics Co. Ltd.^a,c		58		14,557
Samsung C&T Corp.		244		27,914
Samsung Electro-Mechanics Co. Ltd.		184		16,481
Samsung Electronics Co. Ltd.		280		575,098
Samsung Fire & Marine Insurance Co. Ltd.		102		25,012
Samsung Heavy Industries Co. Ltd.^a		936		8,882
Samsung Life Insurance Co. Ltd.		230		23,559
Samsung SDI Co. Ltd.		176		30,670
Samsung SDS Co. Ltd.		116		17,231
Samsung Securities Co. Ltd.		254		8,233
Shinhan Financial Group Co. Ltd.		1,262		58,198
SK Holdings Co. Ltd.		104		24,672
SK Hynix Inc.		1,692		102,936
SK Innovation Co. Ltd.		202		33,768
SK Telecom Co. Ltd.		76		17,086
Woori Bank		800		13,196
Yuhan Corp.		32		6,414

				2,008,383


26		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017


Security	Shares		Value
TAIWAN — 16.73%
Advanced Semiconductor Engineering Inc.		20,000	$	24,123
Asia Cement Corp.		8,000		7,250
Asustek Computer Inc.		2,000		16,568
AU Optronics Corp.		30,000		12,326
Catcher Technology Co. Ltd.		2,000		25,448
Cathay Financial Holding Co. Ltd.		26,000		42,430
Chailease Holding Co. Ltd.		4,000		10,895
Chang Hwa Commercial Bank Ltd.		16,800		9,185
Cheng Shin Rubber Industry Co. Ltd.		6,000		12,068
China Development Financial Holding Corp.		48,000		14,983
China Life Insurance Co. Ltd./Taiwan		10,000		11,034
China Steel Corp.		40,000		33,533
Chunghwa Telecom Co. Ltd.		12,000		41,751
Compal Electronics Inc.		18,000		12,943
CTBC Financial Holding Co. Ltd.		44,000		28,503
Delta Electronics Inc.		6,000		32,904
E.Sun Financial Holding Co. Ltd.		30,074		18,535
Far Eastern New Century Corp.		12,000		9,603
Far EasTone Telecommunications Co. Ltd.		6,000		14,553
Feng TAY Enterprise Co. Ltd.		2,000		9,477
First Financial Holding Co. Ltd.		26,520		17,224
Formosa Chemicals & Fibre Corp.		10,000		31,446
Formosa Petrochemical Corp.		4,000		14,116
Formosa Plastics Corp.		12,000		37,337
Foxconn Technology Co. Ltd.		4,000		12,698
Fubon Financial Holding Co. Ltd.		20,000		32,142
Highwealth Construction Corp.		4,000		6,362
Hon Hai Precision Industry Co. Ltd.		44,000		171,311
Hotai Motor Co. Ltd.		600		7,068
Hua Nan Financial Holdings Co. Ltd.		23,100		12,898
Innolux Corp.		32,000		15,587
Inventec Corp.		10,000		7,936
Largan Precision Co. Ltd.		288		55,636
Lite-On Technology Corp.		8,000		11,836
MediaTek Inc.		4,000		35,853
Mega Financial Holding Co. Ltd.		32,000		25,713
Micro-Star International Co. Ltd.		2,000		4,553
Nan Ya Plastics Corp.		14,000		35,349
Novatek Microelectronics Corp.		2,000		7,787
Pegatron Corp.		6,000		18,887
Pou Chen Corp.		8,000		10,378


Security	Shares		Value
Powertech Technology Inc.		2,000	$	6,070
President Chain Store Corp.		2,000		16,733
Quanta Computer Inc.		8,000		18,211
Realtek Semiconductor Corp.		2,000		7,754
Shin Kong Financial Holding Co. Ltd.		20,000		5,812
Siliconware Precision Industries Co. Ltd.		6,000		9,503
SinoPac Financial Holdings Co. Ltd.		42,000		13,499
Taishin Financial Holding Co. Ltd.		35,460		15,745
Taiwan Cement Corp.		10,000		11,548
Taiwan Cooperative Financial Holding Co. Ltd.		24,720		13,024
Taiwan High Speed Rail Corp.		6,000		5,288
Taiwan Mobile Co. Ltd.		6,000		21,472
Taiwan Semiconductor Manufacturing Co. Ltd.		70,000		502,170
Teco Electric and Machinery Co. Ltd.		10,000		9,344
Uni-President Enterprises Corp.		16,000		34,037
United Microelectronics Corp.		42,000		20,945
Vanguard International Semiconductor Corp.		2,000		3,612
Wistron Corp.		10,296		9,723
WPG Holdings Ltd.		8,000		10,418
Yuanta Financial Holding Co. Ltd.		36,000		15,627

				1,710,764
THAILAND — 3.03%
Advanced Info Service PCL NVDR		3,800		21,458
Airports of Thailand PCL NVDR		12,400		20,352
Bangkok Dusit Medical Services PCL NVDR		9,000		5,665
Bangkok Expressway & Metro PCL NVDR		44,000		10,336
Banpu PCL NVDR		11,000		5,830
BEC World PCL NVDR		11,200		5,835
Berli Jucker PCL NVDR		7,000		10,382
Bumrungrad Hospital PCL NVDR		1,400		9,191
Central Pattana PCL NVDR		2,800		6,071
Charoen Pokphand Foods PCL NVDR		8,000		6,565
CP ALL PCL NVDR		12,200		22,780
Energy Absolute PCL NVDR		5,200		5,912
Indorama Ventures PCL NVDR		4,800		5,638
Kasikornbank PCL Foreign		3,800		24,147
Kasikornbank PCL NVDR		2,400		14,528
Krung Thai Bank PCL NVDR		10,400		5,857
Minor International PCL NVDR		5,200		6,225


SCHEDULES OF INVESTMENTS			27

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017


Security	Shares		Value
PTT Exploration & Production PCL NVDR		5,800	$	15,284
PTT Global Chemical PCL NVDR		5,200		11,980
PTT PCL NVDR		3,000		36,049
Siam Cement PCL (The) Foreign		1,000		15,058
Siam Cement PCL (The) NVDR		600		9,035
Siam Commercial Bank PCL (The) NVDR		5,400		24,475
Thai Oil PCL NVDR		2,200		6,245
True Corp. PCL NVDR^a		28,400		4,790

				309,688
TURKEY — 1.69%
Akbank Turk AS		7,804		23,372
Arcelik AS		678		4,713
BIM Birlesik Magazalar AS		768		17,017
Eregli Demir ve Celik Fabrikalari TAS		5,232		12,457
Haci Omer Sabanci Holding AS		3,188		9,788
KOC Holding AS		2,438		12,739
Petkim Petrokimya Holding AS		2,800		5,061
Tupras Turkiye Petrol Rafinerileri AS		408		13,862
Turk Hava Yollari AO^a		3,586		10,137
Turkcell Iletisim Hizmetleri AS		3,628		13,881
Turkiye Garanti Bankasi AS		6,400		19,909
Turkiye Halk Bankasi AS		2,200		9,443
Turkiye Is Bankasi Class C		5,900		12,799
Turkiye Vakiflar Bankasi Tao Class D		3,800		7,925

				173,103
UNITED ARAB EMIRATES — 1.03%
Abu Dhabi Commercial Bank PJSC		6,136		12,195
Aldar Properties PJSC		12,000		7,547
DAMAC Properties Dubai Co. PJSC		5,400		5,939
DP World Ltd.		500		11,470
Dubai Islamic Bank PJSC		3,200		5,306
Emaar Properties PJSC		10,400		24,067
Emirates Telecommunications Group Co. PJSC		5,602		27,452
First Abu Dhabi Bank PJSC		4,000		11,326

				105,302

TOTAL COMMON STOCKS
(Cost: $8,227,206)				8,340,863

INVESTMENT COMPANIES — 13.01%

INDIA — 12.14%
iShares MSCI India ETF^d		36,404		1,241,741

				1,241,741


Security	Shares		Value
QATAR — 0.87%
iShares MSCI Qatar Capped ETF^d		5,430	$	88,943

				88,943

TOTAL INVESTMENT COMPANIES
(Cost: $1,318,912)				1,330,684

PREFERRED STOCKS — 5.10%

BRAZIL — 3.75%
Banco Bradesco SA, Preference Shares		8,800		93,917
Braskem SA Class A, Preference Shares		600		7,267
Cia. Brasileira de Distribuicao, Preference Shares		600		13,728
Cia. Energetica de Minas Gerais, Preference Shares		2,800		7,457
Gerdau SA, Preference Shares		3,000		11,299
Itau Unibanco Holding SA, Preference Shares		9,400		120,545
Itausa-Investimentos Itau SA, Preference Shares		11,800		38,253
Lojas Americanas SA, Preference Shares		2,800		15,813
Petroleo Brasileiro SA, Preference Shares		10,200		44,250
Suzano Papel e Celulose SA Class A, Preference Shares		1,600		8,899
Telefonica Brasil SA, Preference Shares		1,400		21,731

				383,159
CHILE — 0.20%
Embotelladora Andina SA Class B, Preference Shares		1,936		9,123
Sociedad Quimica y Minera de Chile SA Series B, Preference Shares		244		11,402

				20,525
COLOMBIA — 0.10%
Bancolombia SA, Preference Shares		922		10,520

				10,520
RUSSIA — 0.10%
Surgutneftegas OJSC, Preference Shares		20,000		9,873

				9,873


28		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017


Security	Shares		Value
SOUTH KOREA — 0.95%
Hyundai Motor Co., Preference Shares		56	$	4,788
Hyundai Motor Co. Series 2, Preference Shares		66		5,970
Samsung Electronics Co. Ltd., Preference Shares		52		86,928

				97,686

TOTAL PREFERRED STOCKS
(Cost: $490,036)				521,763

SHORT-TERM INVESTMENTS — 0.16%

MONEY MARKET FUNDS — 0.16%
BlackRock Cash Funds: Treasury, SL Agency Shares
0.96%^d,e		15,969		15,969

				15,969

TOTAL SHORT-TERM INVESTMENTS
(Cost: $15,969)				15,969


	Value
TOTAL INVESTMENTS IN SECURITIES — 99.82%
(Cost: $10,052,123)^f	$	10,209,279
Other Assets, Less Liabilities — 0.18%		17,909

NET ASSETS — 100.00%	$	10,227,188

ADR — American Depositary Receipts

CPO — Certificates of Participation (Ordinary)

GDR — Global Depositary Receipts

NVDR — Non-Voting Depositary Receipts

^a	Non-income earning security.

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

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

^d	Affiliated issuer. See Schedule 1.

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

The cost of investments (including short positions and derivatives, if any) for federal income tax purposes was $10,055,492. Net unrealized appreciation was $153,787, of which $363,343 represented gross unrealized appreciation on investments and $209,556 represented gross unrealized depreciation on investments.

Schedule 1 — Affiliates (Note 2)

Investments in issuers considered to be affiliates of the Fund during the period ended August 31, 2017, for purposes of Section 2(a)(3) of the 1940 Act, and/or related parties of the Fund were as follows:


Affiliated issuer	Shares held at 7/18/17^a		Shares purchased			Shares sold		Shares held at 08/31/17		Value at 08/31/17		Net realized gain (loss)^b		Change in unrealized appreciation (depreciation)			Income
BlackRock Cash Funds: Treasury, SL Agency Shares		—		15,969	^c		—		15,969	$	15,969	$	—	$	—		$	11
iShares MSCI India ETF		—		36,404			—		36,404		1,241,741		—		17,474			—
iShares MSCI Qatar Capped ETF		—		5,430			—		5,430		88,943		—		(5,702	)		—

										$	1,346,653	$	—	$	11,772		$	11

The Fund commenced operations on July 18, 2017.

Includes realized capital gain distributions from an affiliated fund, if any.

Net of shares purchased and sold.


SCHEDULES OF INVESTMENTS			29

Schedule of Investments (Continued)

iSHARES^® MSCI EMERGING MARKETS ex CHINA ETF

August 31, 2017

Schedule 2 — Fair Value Measurements


	Level 1		Level 2		Level 3		Total
Investments:
Assets:
Common stocks	$	8,340,863	$	—	$	—	$	8,340,863
Investment companies		1,330,684		—		—		1,330,684
Preferred stocks		521,763		—		—		521,763
Money market funds		15,969		—		—		15,969

Total	$	10,209,279	$	—	$	—	$	10,209,279

See notes to financial statements.


30		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Assets and Liabilities

iSHARES^®, INC.

August 31, 2017


	iShares Edge MSCI Multifactor Emerging Markets ETF			iShares MSCI EM ESG Optimized ETF			iShares MSCI Emerging Markets ex China ETF

ASSETS
Investments in securities, at cost:
Unaffiliated	$	65,195,953		$	84,257,848		$	8,717,242
Affiliated (Note 2)		8,052,179			4,101,247			1,334,881

Total cost of investments in securities	$	73,248,132		$	88,359,095		$	10,052,123

Investments in securities, at fair value (including securities on loan^a) (Note 1):
Unaffiliated	$	76,490,587		$	96,513,106		$	8,862,626
Affiliated (Note 2)		8,752,520			4,101,306			1,346,653
Foreign currency, at value^b		254,397			189,752			8,277
Cash		—			13,997			—
Receivables:
Investment securities sold		—			4,539,096			17,706
Due from custodian (Note 4)		38,549			—			—
Dividends and interest		110,283			117,228			16,550
Capital shares sold		33,545			—			—
Tax reclaims		2,996			—			18

Total Assets		85,682,877			105,474,485			10,251,830


LIABILITIES
Payables:
Investment securities purchased		423,963			4,652,589			20,732
Collateral for securities on loan (Note 1)		2,360,940			3,988,206			—
Foreign taxes (Note 1)		1,887			1,621			441
Investment advisory fees (Note 2)		23,172			19,611			3,469

Total Liabilities		2,809,962			8,662,027			24,642


NET ASSETS	$	82,872,915		$	96,812,458		$	10,227,188


Net assets consist of:
Paid-in capital	$	70,874,221		$	84,220,401		$	10,046,048
Undistributed net investment income		431,727			629,407			23,397
Undistributed net realized gain (accumulated net realized loss)		(429,937	)		(293,931	)		411
Net unrealized appreciation		11,996,904			12,256,581			157,332

NET ASSETS	$	82,872,915		$	96,812,458		$	10,227,188


Shares outstanding^c		1,800,000			1,400,000			200,000


Net asset value per share	$	46.04		$	69.15		$	51.14

^a	Securities on loan with values of $1,216,212, $3,877,685 and $ —, respectively. See Note 1.

^b	Cost of foreign currency: $253,884, $189,167 and $8,210, respectively.

^c	$0.001 par value, number of shares authorized: 25 million, 25 million and 25 million, respectively.

See notes to financial statements.


FINANCIAL STATEMENTS			31

Statements of Operations

iSHARES^®, INC.

Year ended August 31, 2017


	iShares Edge MSCI Multifactor Emerging Markets ETF			iShares MSCI EM ESG Optimized ETF			iShares MSCI Emerging Markets ex China ETF^a

NET INVESTMENT INCOME
Dividends — unaffiliated^b	$	1,032,819		$	1,249,863		$	30,537
Dividends — affiliated (Note 2)		22,035			415			11
Interest — unaffiliated		—			3			—
Securities lending income — affiliated — net (Note 2)		10,558			7,967			—

		1,065,412			1,258,248			30,548
Less: Other foreign taxes (Note 1)		(3,964	)		(2,234	)		(460	)

Total investment income		1,061,448			1,256,014			30,088


EXPENSES
Investment advisory fees (Note 2)		197,073			166,101			5,952
Proxy fees		894			1,146			—

Total expenses		197,967			167,247			5,952
Less investment advisory fees waived (Note 2)		(31,551	)		—			(1,002	)

Net expenses		166,416			167,247			4,950

Net investment income		895,032			1,088,767			25,138


NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(309,379	)		(295,218	)		411
Investments — affiliated (Note 2)		64			(272	)		—
In-kind redemptions — unaffiliated		369,036			570,973			—
Foreign currency transactions		(449	)		6,521			(1,741	)
Realized gain distributions from affiliated funds		2			—			—

Net realized gain (loss)		59,274			282,004			(1,330	)

Net change in unrealized appreciation/depreciation on:
Investments — unaffiliated		9,128,902			11,677,459			145,384
Investments — affiliated (Note 2)		616,602			59			11,772
Translation of assets and liabilities in foreign currencies		2,799			1,403			176

Net change in unrealized appreciation/depreciation		9,748,303			11,678,921			157,332

Net realized and unrealized gain		9,807,577			11,960,925			156,002

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	10,702,609		$	13,049,692		$	181,140

^a	For the period from July 18, 2017 (commencement of operations) to August 31, 2017.

^b	Net of foreign withholding tax of $130,920, $160,597 and $5,662, respectively.

See notes to financial statements.


32		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets

iSHARES^®, INC.


	iShares Edge MSCI Multifactor Emerging Markets ETF						iShares MSCI EM ESG Optimized ETF
	Year ended August 31, 2017			Period from December 8, 2015^a to August 31, 2016			Year ended August 31, 2017			Period from June 28, 2016^a to August 31, 2016

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	895,032		$	422,570		$	1,088,767		$	31,368
Net realized gain (loss)		59,274			(107,720	)		282,004			(2,734	)
Net change in unrealized appreciation/depreciation		9,748,303			2,248,601			11,678,921			577,660

Net increase in net assets resulting from operations		10,702,609			2,563,451			13,049,692			606,294


DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income		(797,610	)		(100,720	)		(499,570	)		—

Total distributions to shareholders		(797,610	)		(100,720	)		(499,570	)		—


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		47,184,280			27,506,253			81,808,084			5,039,084
Cost of shares redeemed		(4,185,348	)		—			(3,191,126	)		—

Net increase in net assets from capital share transactions		42,998,932			27,506,253			78,616,958			5,039,084

INCREASE IN NET ASSETS		52,903,931			29,968,984			91,167,080			5,645,378

NET ASSETS
Beginning of period		29,968,984			—			5,645,378			—

End of period	$	82,872,915		$	29,968,984		$	96,812,458		$	5,645,378

Undistributed net investment income included in net assets at end of period	$	431,727		$	314,129		$	629,407		$	29,307


SHARES ISSUED AND REDEEMED
Shares sold		1,100,000			800,000			1,350,000			100,000
Shares redeemed		(100,000	)		—			(50,000	)		—

Net increase in shares outstanding		1,000,000			800,000			1,300,000			100,000

^a	Commencement of operations.

See notes to financial statements.


FINANCIAL STATEMENTS			33

Statements of Changes in Net Assets (Continued)

iSHARES^®, INC.


		iShares MSCI Emerging Markets ex China ETF


	Period from July 18, 2017^a to August 31, 2017

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS:
Net investment income	$	25,138
Net realized loss		(1,330	)
Net change in unrealized appreciation/depreciation		157,332

Net increase in net assets resulting from operations		181,140


CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold		10,046,048

Net increase in net assets from capital share transactions		10,046,048

INCREASE IN NET ASSETS		10,227,188

NET ASSETS
Beginning of period		—

End of period	$	10,227,188


Undistributed net investment income included in net assets at end of period	$	23,397


SHARES ISSUED
Shares sold		200,000

Net increase in shares outstanding		200,000

^a	Commencement of operations.

See notes to financial statements.


34		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares Edge MSCI Multifactor Emerging Markets ETF


	Year ended Aug. 31, 2017			Period from Dec. 8, 2015^a to Aug. 31, 2016
Net asset value, beginning of period	$	37.46		$	33.82

Income from investment operations:
Net investment income^b		0.91			1.27
Net realized and unrealized gain^c		8.53			2.50

Total from investment operations		9.44			3.77

Less distributions from:
Net investment income		(0.86	)		(0.13	)

Total distributions		(0.86	)		(0.13	)

Net asset value, end of period	$	46.04		$	37.46


Total return		25.80	%		11.16	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	82,873		$	29,969
Ratio of expenses to average net assets^e		0.42	%		0.49	%
Ratio of expenses to average net assets prior to waived fees^e		0.50	%		0.65	%
Ratio of net investment income to average net assets^e		2.24	%		4.91	%
Portfolio turnover rate^f		36	%		11	%^d

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the year ended August 31, 2017 and the period ended August 31, 2016 were 36% and 11%, respectively. See Note 4.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			35

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout each period)


		iShares MSCI EM ESG Optimized ETF


	Year ended Aug. 31, 2017			Period from Jun. 28, 2016^a to Aug. 31, 2016
Net asset value, beginning of period	$	56.45		$	50.37

Income from investment operations:
Net investment income^b		1.70			0.31
Net realized and unrealized gain^c		11.62			5.77

Total from investment operations		13.32			6.08

Less distributions from:
Net investment income		(0.62	)		—

Total distributions		(0.62	)		—

Net asset value, end of period	$	69.15		$	56.45


Total return		23.75	%		12.09	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	96,812		$	5,645
Ratio of expenses to average net assets^e		0.42	%		0.45	%
Ratio of net investment income to average net assets^e		2.73	%		3.26	%
Portfolio turnover rate^f		29	%		9	%^d

^a	Commencement of operations.

^b	Based on average shares outstanding throughout each period.

^c	The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

Portfolio turnover rates exclude portfolio securities received or delivered in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rates for the year ended August 31, 2017 and the period ended August 31, 2016 were 29% and 9%, respectively. See Note 4.

See notes to financial statements.


36		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (Continued)

iSHARES^®, INC.

(For a share outstanding throughout the period)


		iShares MSCI Emerging Markets ex China ETF


	Period from Jul. 18, 2017^a to Aug. 31, 2017
Net asset value, beginning of period	$	50.22

Income from investment operations:
Net investment income^b		0.13
Net realized and unrealized gain^c		0.79

Total from investment operations		0.92

Net asset value, end of period	$	51.14


Total return		1.83	%^d


Ratios/Supplemental data:
Net assets, end of period (000s)	$	10,227
Ratio of expenses to average net assets^e		0.41	%
Ratio of expenses to average net assets prior to waived fees^e		0.49	%
Ratio of net investment income to average net assets^e		2.07	%
Portfolio turnover rate^f		0	%^d,g

^a	Commencement of operations.

^b	Based on average shares outstanding throughout the period.

^c	The amount reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities.

^d	Not annualized.

^e	Annualized for periods of less than one year.

Portfolio turnover rate excludes portfolio securities received or delivered in Creation Units but includes portfolio transactions that are executed as a result of the Fund processing capital share transactions in Creation Units partially for cash in U.S. dollars. Excluding such cash transactions, the portfolio turnover rate for the period ended August 31, 2017 was 0%. See Note 4.

^g	Rounds to less than 1%.

See notes to financial statements.


FINANCIAL HIGHLIGHTS			37

Notes to Financial Statements

iSHARES^®, INC.

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


iShares ETF	Diversification Classification
Edge MSCI Multifactor Emerging Markets		Non-diversified
MSCI EM ESG Optimized		Non-diversified
MSCI Emerging Markets ex China^a		Non-diversified

The Fund commenced operations on July 18, 2017.

1.	*SIGNIFICANT ACCOUNTING POLICIES*

SECURITY VALUATION

•


38		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

•

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

•

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

•


NOTES TO FINANCIAL STATEMENTS			39

Notes to Financial Statements (Continued)

iSHARES^®, INC.

SECURITY TRANSACTIONS AND INCOME RECOGNITION

FOREIGN CURRENCY TRANSLATION

FOREIGN TAXES

DISTRIBUTIONS TO SHAREHOLDERS


40		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

LOANS OF PORTFOLIO SECURITIES


NOTES TO FINANCIAL STATEMENTS			41

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The following table is a summary of securities lending agreements which are subject to offset under an MSLA as of August 31, 2017:


iShares ETF and Counterparty	Market Value of Securities on Loan		Cash Collateral Received^a		Net Amount
Edge MSCI Multifactor Emerging Markets
Morgan Stanley & Co. LLC	$	1,216,212	$	1,216,212	$	—

MSCI EM ESG Optimized
Citigroup Global Markets Inc.	$	1,350,735	$	1,350,735	$	—
Credit Suisse Securities (USA) LLC		89,726		89,726		—
Jefferies LLC		210,688		210,688		—
JPMorgan Securities LLC		2,146,578		2,146,578		—
UBS AG		79,958		79,958		—

	$	3,877,685	$	3,877,685	$	—

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

For its investment advisory services to the iShares Edge MSCI Multifactor Emerging Markets ETF, BFA is entitled to an annual investment advisory fee of 0.45%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. Prior to December 16, 2016, BFA was entitled to an annual investment advisory fee of 0.65% based on average daily net assets. In addition, the Fund may incur its pro rata share of fees and expenses attributable to its investments in other investment companies (“acquired fund fees and expenses”). BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2021 in an amount equal to the acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds. For the year ended August 31, 2017, BFA voluntarily waived a portion of its investment advisory fees for the Fund in the amount of $13,031. The voluntary waiver was discontinued effective December 16, 2016, and in conjunction with the annual investment advisory fee reduction from 0.65% to 0.45%.

For its investment advisory services to the iShares MSCI EM ESG Optimized ETF, BFA is entitled to an annual investment advisory fee of 0.25%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. Prior to August 4, 2017, BFA was entitled to an annual investment advisory fee of 0.45%.

For its investment advisory services to the iShares MSCI Emerging Market ex China ETF, BFA is entitled to an annual investment advisory fee of 0.49%, accrued daily and paid monthly by the Fund, based on the average daily net assets of the Fund. BFA has contractually agreed to waive a portion of its investment advisory fees for the Fund through December 31, 2022 in an amount equal to the aggregate acquired fund fees and expenses, if any, attributable to the Fund’s investments in other iShares funds.


42		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

securities lending agent, BTC bears all operational costs directly related to securities lending. Each Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money market fund managed by BFA, however, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees each Fund bears to an annual rate of 0.04% (the “collateral investment fees”). Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Funds retain a portion of securities lending income and remit the remaining portion to BTC as compensation for its services as securities lending agent.

For the year ended August 31, 2017, the total of securities lending agent services and collateral investment fees paid were as follows:


iShares ETF	Fees Paid to BTC
Edge MSCI Multifactor Emerging Markets	$	2,614
MSCI EM ESG Optimized		2,489

For the year ended August 31, 2017, transactions executed by the Funds pursuant to Rule 17a-7 under the 1940 Act were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Multifactor Emerging Markets	$	2,169,260	$	271,124
MSCI EM ESG Optimized		39,493		25,067


NOTES TO FINANCIAL STATEMENTS			43

Notes to Financial Statements (Continued)

iSHARES^®, INC.

size of the Fund, which might have an adverse effect on the Fund. As of August 31, 2017, 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

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

Certain directors and officers of the Company are also officers of BTC and/or BFA.

3.	*INVESTMENT PORTFOLIO TRANSACTIONS*

Purchases and sales of investments (excluding in-kind transactions and short-term investments) for the year ended August 31, 2017 were as follows:


iShares ETF	Purchases		Sales
Edge MSCI Multifactor Emerging Markets	$	38,537,277	$	15,012,988
MSCI EM ESG Optimized		54,048,593		11,867,010
MSCI Emerging Markets ex China		5,596,743		17,705

In-kind transactions (see Note 4) for the year ended August 31, 2017 were as follows:


iShares ETF	In-kind Purchases		In-kind Sales
Edge MSCI Multifactor Emerging Markets	$	23,408,804	$	3,925,435
MSCI EM ESG Optimized		39,551,246		2,800,123
MSCI Emerging Markets ex China		4,456,705		—

4.	*CAPITAL SHARE TRANSACTIONS*


44		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

transfer and other transaction costs associated with the issuance and redemption of Creation Units, including Creation Units for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate the relevant fund for certain transaction costs (i.e., stamp taxes, taxes on currency or other financial transactions, and brokerage costs) and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in “Proceeds from shares sold” in the statements of changes in net assets.

5.	*PRINCIPAL RISKS*

MARKET RISK


NOTES TO FINANCIAL STATEMENTS			45

Notes to Financial Statements (Continued)

iSHARES^®, INC.

and adverse trends in recent years due to concerns about economic downturns or rising government debt levels in several European countries. These events have adversely affected the exchange rate of the euro and may continue to significantly affect European countries. The occurrence of terrorist incidents throughout Europe also could impact financial markets. In addition, the United Kingdom has voted to withdraw from the European Union. The referendum may introduce significant new uncertainties and instability in the financial markets as the United Kingdom negotiates its exit from the European Union.

CREDIT RISK

6.	*INCOME TAX INFORMATION*

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. The following permanent differences as of August 31, 2017, attributable to passive foreign investment companies, foreign currency transactions and realized gains (losses) from in-kind redemptions, were reclassified to the following accounts:


iShares ETF	Paid-in Capital		Undistributed Net Investment Income/Distributions in Excess of Net Investment Income			Undistributed Net Realized Gain/Accumulated Net Realized Loss
Edge MSCI Multifactor Emerging Markets	$	369,036	$	20,176		$	(389,212	)
MSCI EM ESG Optimized		564,359		10,903			(575,262	)
MSCI Emerging Markets ex China		—		(1,741	)		1,741


46		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (Continued)

iSHARES^®, INC.

The tax character of distributions paid during the years ended August 31, 2017 and August 31, 2016 was as follows:


iShares ETF	2017		2016
Edge MSCI Multifactor Emerging Markets
Ordinary income	$	797,610	$	100,720

MSCI EM ESG Optimized
Ordinary income	$	499,570	$	N/A

As of August 31, 2017, the tax components of accumulated net earnings (losses) were as follows:


iShares ETF	Undistributed Ordinary Income		Capital Loss Carryforwards			Net Unrealized Gains (Losses)^a		Total
Edge MSCI Multifactor Emerging Markets	$	563,078	$	(305,500	)	$	11,741,116	$	11,998,694
MSCI EM ESG Optimized		745,017		(106,499	)		11,953,539		12,592,057
MSCI Emerging Markets ex China		27,177		—			153,963		181,140

As of August 31, 2017, the following Funds had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:


iShares ETF	Non- Expiring
Edge MSCI Multifactor Emerging Markets	$	305,500
MSCI EM ESG Optimized		106,499

7.	*LINE OF CREDIT*

The iShares Edge MSCI Multifactor Emerging Markets and iShares MSCI EM ESG Optimized ETFs, along with certain other iShares funds, are parties to a $250 million credit agreement with State Street Bank and Trust Company, which expires on October 25, 2017. The line of credit may be used for temporary or emergency purposes, including redemptions, settlement of trades and rebalancing of portfolio holdings. The credit agreement has the following terms: a commitment fee of 0.20% per annum on the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR (not less than zero) plus 1.00% per annum or (b) the U.S. Federal Funds rate (not less than zero) plus 1.00% per annum on amounts borrowed. The commitment fee is allocated to each fund participating in the credit agreement based on each fund’s pro-rata share of the aggregate average daily value of assets invested in local securities of certain foreign markets.

The Funds did not borrow under the credit agreement during the year ended August 31, 2017.


NOTES TO FINANCIAL STATEMENTS			47

Notes to Financial Statements (Continued)

iSHARES^®, INC.

At a meeting held on September 14-15, 2017, the Board approved the amendment of certain terms of the credit agreement including (i) increasing the maximum borrowing amount to $275 million and (ii) extending the expiration date to October 24, 2018. The Board also approved the addition of the iShares MSCI Emerging Market ex China ETF as a party to the line of credit. These changes to the credit agreement are expected to be effective on or around October 25, 2017.

8.	*LEGAL PROCEEDINGS*

9.	*SUBSEQUENT EVENTS*


48		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Board of Directors of iShares, Inc. and

Shareholders of the iShares Edge MSCI Multifactor Emerging Markets ETF,

iShares MSCI EM ESG Optimized ETF and iShares MSCI Emerging Markets ex China ETF

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of iShares Edge MSCI Multifactor Emerging Markets ETF, iShares MSCI EM ESG Optimized ETF and iShares MSCI Emerging Markets ex China ETF (constituting funds of iShares, Inc., hereafter referred to as the “Funds”) as of August 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities as of August 31, 2017 by correspondence with the custodian, transfer agent and brokers, or by other appropriate auditing procedures where replies were not received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

San Francisco, California

October 23, 2017


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			49

Tax Information (Unaudited)

iSHARES^®, INC.

The following maximum amounts are hereby designated as qualified dividend income for individuals for the fiscal year ended August 31, 2017:


iShares ETF	Qualified Dividend Income
Edge MSCI Multifactor Emerging Markets		$589,992
MSCI EM ESG Optimized		813,995
MSCI Emerging Markets ex China		10,748

For the fiscal year ended August 31, 2017, the Funds earned foreign source income and paid foreign taxes which they intend to pass through to their shareholders:


iShares ETF	Foreign Source Income Earned		Foreign Taxes Paid
Edge MSCI Multifactor Emerging Markets	$	1,163,739	$	134,884
MSCI EM ESG Optimized		1,410,463		162,831
MSCI Emerging Markets ex China		36,163		6,122


50		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract

iSHARES^®, INC.

I. iShares Edge MSCI Multifactor Emerging Markets ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			51

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


52		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^®, INC.

low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			53

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^®, INC.

II. iShares MSCI EM ESG Optimized ETF

Under Section 15(c) of the Investment Company Act of 1940 (the “1940 Act”), the Company’s Board of Directors (the “Board”), including a majority of Directors who are not “interested persons” of the Company (as that term is defined in the 1940 Act) (the “Independent Directors”), is required annually to consider and approve the Investment Advisory Contract between the Company and BFA (the “Advisory Contract”) on behalf of the Fund. The Independent Directors requested, and BFA provided, such information as the Independent Directors, with advice from independent counsel, deemed reasonably necessary to evaluate the Advisory Contract. A committee of all of the Independent Directors (the “15(c) Committee”), with independent counsel, met with management on May 5, 2017 and May 12, 2017. 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 18, 2017, management presented information to the Board relating to the continuance of the Advisory Contract, including information requested by the 15(c) Committee during its meetings. The Board, including the Independent Directors, reviewed and discussed such information at length. The Independent Directors requested from management certain additional information, which management agreed to provide. At a meeting held on June 19-21, 2017, 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 Board also noted that the Board and BFA agreed to discuss potential further enhancements to the 15(c) process for the coming year. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review. In approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and reached the following conclusions:


54		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^®, INC.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the investment advisory fee rate and 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, product design, compliance and risk management, and other services, the Board expected that there would be no diminution in the scope of services required of or provided by BFA under the Advisory Contract for the coming year as compared to the scope of services provided by BFA during prior years. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting the iShares funds and their shareholders. The Board also considered BFA’s compliance program and its compliance record with respect to the Fund. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons responsible for the day-to-day management of the Fund, as well as the resources available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided at the June 19-21, 2017 meeting and throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures. The Board noted that the Fund had met its investment objective consistently since its inception date.

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


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			55

Board Review and Approval of Investment Advisory Contract (Continued)

iSHARES^®, INC.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets, noting that the issue of economies of scale had been focused on by the 15(c) Committee during its meetings and addressed by management, including through supplemental information. The Board and the 15(c) Committee reviewed information provided by BFA regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints and waivers or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board and the 15(c) Committee received information regarding BlackRock’s historical profitability, including BFA’s and its affiliates’ costs in providing services. The cost information distinguished, among other things, between fixed and variable costs, and explained how the level of fixed and variable costs, as well as the nature of such costs, may impact the existence or size of scale benefits. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. During the June 19-21, 2017 meeting, the Board approved a permanent reduction to the advisory fee rate charged to the Fund. In addition, the Board noted that should additional material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the Fund, including in terms of the different and generally more extensive services provided to the Fund, as well as other significant differences. In that regard, the Board considered that the pricing of services to institutional clients is typically based on a number of factors beyond the nature and extent of the specific services to be provided and often depends on the overall relationship between the client and its affiliates and the adviser and its affiliates. In addition, the Board considered the relative complexity and inherent risks and challenges of managing and providing other services to the Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients, in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.


56		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Other Benefits to BFA and/or its Affiliates — The Board reviewed the “fallout” benefits or ancillary revenue received by BFA and/or its affiliates in connection with the services provided to the Fund by BFA, such as payment of revenue to BTC, the Fund’s securities lending agent, for loaning portfolio securities (which was included in the profit margins reviewed by the Board pursuant to BFA’s profitability methodology), and payment of advisory fees and/or administration fees to BFA and BTC (or their affiliates) in connection with any investments by the Fund in other funds for which BFA (or its affiliates) provides investment advisory services and/or administration services. The Board 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, are reported to the Board pursuant to Rule 17e-1 or Rule 10f-3, as applicable, under the 1940 Act. The Board concluded that any such ancillary benefits would not be disadvantageous to the Fund’s shareholders and thus would not alter the Board’s conclusion with respect to the appropriateness of approving the continuance of the Advisory Contract for the coming year.

III. iShares MSCI Emerging Markets ex China ETF

At a meeting held on June 19-21, 2017, the Board, including all of the Independent Directors, approved the selection of BFA as investment adviser and approved the proposed Advisory Contract for the Fund, based on its review of qualitative and quantitative information provided by BFA. The Board also considered information previously provided by BFA, BlackRock Institutional Trust Company, N.A. (“BTC”), and BlackRock, Inc. (“BlackRock”), as applicable, at prior Board meetings. The Independent Directors were advised by their independent counsel throughout the process, including about the legal standards applicable to their review.

In selecting BFA and approving the Advisory Contract for the Fund, the Board, including the Independent Directors, considered the following factors, no one of which was controlling, and made the following conclusions:

Expenses of the Fund — The Board reviewed statistical information prepared by Broadridge Financial Solutions Inc. (“Broadridge”), an independent provider of investment company data, regarding the expense ratio components, including gross and net total expenses, waivers/reimbursements (if any), and underlying fund fees and expenses (if any) of the Fund in comparison with the same information for other exchange traded funds (“ETFs”) (including, where applicable, funds sponsored by an “at cost” service provider) and, in the limited instances where no comparable ETFs existed and the comparison group would not otherwise be reasonable in Broadridge’s judgment, pure index institutional mutual funds, objectively selected by Broadridge as comprising the Fund’s applicable peer group pursuant to Broadridge’s proprietary ETF methodology (the “Peer Group”). The Board was provided with a detailed description of the proprietary ETF methodology used by Broadridge to determine the Fund’s


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			57

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Peer Group. The Board further noted that due to the limitations in providing comparable funds in the Peer Group, the statistical information provided in Broadridge’s report may or may not provide meaningful direct comparisons to the Fund in all instances.

Based on this review, the other factors considered at the meeting, and their general knowledge of ETF pricing, the Board concluded that the proposed investment advisory fee rate of the Fund supported the Board’s approval of the Advisory Contract.

Nature, Extent and Quality of Services to be Provided by BFA — The Board reviewed the scope of services to be provided by BFA under the Advisory Contract. In reviewing the scope of these services, the Board considered BFA’s investment philosophy and experience, noting that BFA and its affiliates have committed significant resources over time, including during the past year, to supporting iShares funds and their shareholders. The Board considered representations by BFA, BTC, and BlackRock that the scope and quality of services to be provided to the Fund would be similar to the scope and quality of services provided to other iShares funds. The Board also considered BFA’s compliance program and its compliance record with respect to other iShares funds. In that regard, the Board noted that BFA reports to the Board about portfolio management and compliance matters on a periodic basis in connection with regularly scheduled meetings of the Board, and on other occasions as necessary and appropriate, and has provided information and made appropriate officers available as needed to provide further assistance with these matters. The Board also reviewed the background and experience of the persons who will be responsible for the day-to-day management of the Fund, as well as the resources that will be available to them in managing the Fund. In addition to the above considerations, the Board reviewed and considered detailed presentations regarding BFA’s investment performance, investment and risk management processes and strategies provided throughout the previous year, and matters related to BFA’s portfolio compliance policies and procedures.

Based on the review of this information, the Board concluded that the nature, extent and quality of services to be provided by BFA to the Fund under the Advisory Contract supported the Board’s approval of the Advisory Contract.

Costs of Services to be Provided to the Fund and Profits to be Realized by BFA and Affiliates — The Board did not consider the profitability of the Fund to BFA based on the fees payable under the Advisory Contract or revenue to be received by BFA or its affiliates in connection with services to be provided to the Fund since the proposed relationship had not yet commenced. The Board noted that it expects to receive profitability information from BFA periodically following the Fund’s launch and will thus be in a position to evaluate whether any new or additional breakpoints or other adjustments in Fund fees would be appropriate.

Economies of Scale — The Board reviewed information regarding potential economies of scale or other efficiencies that may result from increases in the Fund’s assets. The Board noted that it had previously received and considered information regarding scale benefits shared with the iShares funds through relatively low fee rates established at inception, breakpoints, waivers, or other fee reductions, as well as through additional investment in the iShares business and the provision of improved or additional infrastructure and services to the iShares funds and their shareholders. The Board noted that the Advisory Contract for the Fund did not provide for any breakpoints in the Fund’s investment advisory fee rate as the assets of the Fund increase. However, the Board noted that should material economies of scale be identified in the future that are not otherwise shared, a breakpoint structure for the Fund may be appropriate, and that it would continue to monitor the sharing of economies of scale to determine the appropriateness of adding breakpoints in the future.


58		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Board Review and Approval of Investment Advisory

Contract (Continued)

iSHARES^®, INC.

Based on this review, as well as the other factors considered at the meeting, the Board, recognizing its responsibility to consider this issue periodically, determined to approve the Advisory Contract.

Fees and Services Provided for Other Comparable Funds/Accounts Managed by BFA and its Affiliates — The Board received and considered information regarding the investment advisory/management fee rates for other funds/accounts in the U.S. for which BFA (or its affiliates) provides investment advisory/management services, including open-end funds registered under the 1940 Act (including sub-advised funds), collective trust funds, and institutional separate accounts (together, the “Other Accounts”), and acknowledged BFA’s assertion that the iShares funds are fundamentally different investment vehicles from the Other Accounts. The Board noted that BFA and its affiliates do not manage Other Accounts with substantially the same investment objective and strategy as the Fund and that track the same index as the Fund. The Board further noted that BFA previously provided the Board with detailed information regarding how the Other Accounts (particularly institutional clients) generally differ from the iShares funds, including in terms of the different and generally more extensive services provided to the iShares 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 Fund, as a publicly traded ETF, as compared to the Other Accounts that are institutional clients in light of differing regulatory requirements and client-imposed mandates. The Board also acknowledged BFA’s expressed business purpose for launching a suite of iShares “Core” ETFs that generally are subject to lower investment advisory fees than iShares non-Core ETFs that may provide a similar investment exposure. The Board also considered the “all-inclusive” nature of the Fund’s advisory fee structure, and the Fund expenses borne by BFA under this arrangement. The Board noted that the investment advisory fee rate under the Advisory Contract for the Fund was generally higher than the investment advisory/management fee rates for certain of the Other Accounts (particularly institutional clients) and concluded that the differences appeared to be consistent with the factors discussed.

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

Conclusion — Based on the considerations described above, the Board determined that the Fund’s investment advisory fee rate under the Advisory Contract does not constitute a fee that is so disproportionately large as to bear no reasonable relationship to the services to be rendered and that could not have been the product of arm’s-length bargaining, and concluded to approve the Advisory Contract.


BOARD REVIEW AND APPROVAL OF INVESTMENT ADVISORY CONTRACT			59

Supplemental Information (Unaudited)

iSHARES^®, INC.

Proxy Results


Director	Votes For		Votes Withheld
Jane D. Carlin		1,911,835,929		49,339,171
Richard L. Fagnani		1,911,725,344		49,449,755
Drew E. Lawton		1,911,790,083		49,385,017
Madhav V. Rajan		1,902,999,095		58,176,004
Mark Wiedman		1,908,143,500		53,031,599

Section 19(a) Notices


	Total Cumulative Distributions for the Fiscal Year								% Breakdown of the Total Cumulative Distributions for the Fiscal Year
iShares ETF	Net Investment Income		Net Realized Capital Gains		Return of Capital		Total Per Share		Net Investment Income			Net Realized Capital Gains			Return of Capital			Total Per Share
Edge MSCI Multifactor Emerging Markets	$	0.864252	$	—	$	—	$	0.864252		100	%		—	%		—	%		100	%
MSCI EM ESG Optimized		0.621828		—		—		0.621828		100			—			—			100

Premium/Discount Information


60		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Supplemental Information (Unaudited) (Continued)

iSHARES^®, INC.

iShares Edge MSCI Multifactor Emerging Markets ETF

Period Covered: December 8, 2015 through June 30, 2017


Premium/Discount	Number of Days		Percentage of Total Days
Greater than 2.0%		1		0.25	%
Greater than 1.5% and Less than 2.0%		3		0.76
Greater than 1.0% and Less than 1.5%		2		0.51
Greater than 0.5% and Less than 1.0%		48		12.18
Greater than 0.0% and Less than 0.5%		173		43.90
At NAV		15		3.81
Less than 0.0% and Greater than –0.5%		117		29.70
Less than –0.5% and Greater than –1.0%		28		7.11
Less than –1.0% and Greater than –1.5%		5		1.27
Less than –1.5%		2		0.51

		394		100.00	%

iShares MSCI EM ESG Optimized ETF

Period Covered: June 28, 2016 through June 30, 2017


Premium/Discount	Number of Days		Percentage of Total Days
Greater than 2.0% and Less than 2.5%		1		0.39	%
Greater than 1.5% and Less than 2.0%		3		1.18
Greater than 1.0% and Less than 1.5%		16		6.30
Greater than 0.5% and Less than 1.0%		100		39.37
Greater than 0.0% and Less than 0.5%		99		38.98
At NAV		3		1.18
Less than 0.0% and Greater than –0.5%		24		9.45
Less than –0.5% and Greater than –1.0%		5		1.97
Less than –1.0% and Greater than –1.5%		3		1.18

		254		100.00	%


SUPPLEMENTAL INFORMATION			61

Director and Officer Information

iSHARES^®, INC.

Interested Directors

Robert S. Kapito is deemed to be an “interested person” (as defined in the 1940 Act) of the Company due to his affiliations with BlackRock, Inc. and its affiliates.

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.


62		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director
Cecilia H. Herbert (68)	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 (61)	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 (62)	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).

Charles A. Hurty (73)	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 (62)	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 (58)	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).


DIRECTOR AND OFFICER INFORMATION			63

Director and Officer Information (Continued)

iSHARES^®, INC.

Independent Directors (Continued)



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years	Other Directorships Held by Director

John E. Martinez (56)	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 (53)	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); Director, Cavium, Inc. (since 2013).


64		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (Continued)

iSHARES^®, INC.

Officers^c



Name (Age)	Position(s)	Principal Occupation(s) During the Past 5 Years
Martin Small (42)	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 (57)	Treasurer and Chief Financial Officer (since 2008).	Managing Director, BlackRock, Inc. (since 2009); Senior Director of Fund Administration of Intermediary Investor Business, BGI (2009).

Benjamin Archibald (42)	Secretary (since 2015).	Managing Director, BlackRock, Inc. (since 2014); Director, BlackRock, Inc. (2010-2013); Secretary of the BlackRock-advised Mutual Funds (since 2012).

Alan Mason (56)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (since 2009).

Steve Messinger (55)	Executive Vice President (since 2016).	Managing Director, BlackRock, Inc. (2007-2014 and since 2016); Managing Director, Beacon Consulting Group (2014-2016).

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

Scott Radell (48)	Executive Vice President (since 2012).	Managing Director, BlackRock, Inc. (since 2009); Head of Portfolio Solutions, BlackRock, Inc. (since 2009).

Manish Mehta served as President until October 15, 2016.


DIRECTOR AND OFFICER INFORMATION			65

Notes:


66		2017 iSHARES ANNUAL REPORT TO SHAREHOLDERS

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

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

Investing involves risk, including possible loss of principal.

The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

iS-AR-816-0817

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-nine series of the registrant for which the fiscal year-end is August 31, 2017 (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 $760,740 for the fiscal year ended August 31, 2016 and $762,300 for the fiscal year ended August 31, 2017.

(b)

Audit-Related Fees – There were no fees billed for the fiscal years ended August 31, 2016 and August 31, 2017 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 $181,488 for the fiscal year ended August 31, 2016 and $185,269 for the fiscal year ended August 31, 2017. 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, 2016 and August 31, 2017 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, 2017 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 $181,488 for the fiscal year ended August 31, 2016 and $185,269 for the fiscal year ended August 31, 2017. The aggregate non-audit fees for the fiscal year ended August 31, 2016 included in this report are different from those included in the previously filed report covering the 12-month period ended August 31, 2016 as this report excludes non-audit fees for services that were rendered to the registrant’s investment adviser or any Adviser Affiliate that provides ongoing services to the registrant but that were not related to the registrant.

(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 31, 2017

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 31, 2017

By: /s/ Jack Gee

Jack Gee, Treasurer and Chief Financial Officer (Principal Financial Officer)

Date: October 31, 2017