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iShares S&P Series
SEMIANNUAL REPORT
September 30, 2000
iShares The way you invest now
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BARCLAYS GLOBAL INVESTORS Only better
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TABLE OF CONTENTS
<TABLE>
<S> <C>
Shareholder Letter............................................... 1
Market Overview.................................................. 2
Managers' Discussion & Analysis.................................. 4
Schedules of Investments......................................... 14
iShares S&P 500 Index Fund.................................... 14
iShares S&P 500/BARRA Growth Index Fund....................... 20
iShares S&P 500/BARRA Value Index Fund........................ 22
iShares S&P MidCap 400 Index Fund............................. 27
iShares S&P MidCap 400/BARRA Growth Index Fund................ 32
iShares S&P MidCap 400/BARRA Value Index Fund................. 34
iShares S&P SmallCap 600 Index Fund........................... 37
iShares S&P SmallCap 600/BARRA Growth Index Fund.............. 44
iShares S&P SmallCap 600/BARRA Value Index Fund............... 46
iShares S&P Europe 350 Index Fund............................. 51
iShares S&P/TSE 60 Index Fund................................. 56
Financial Statements............................................. 57
Financial Highlights............................................. 66
Notes to Financial Statements.................................... 69
</TABLE>
<PAGE>
To Our Shareholders
The iShares Funds' semiannual period ended September 30, 2000 was one of
continued market volatility. Significant events during this period include:
. The Federal Reserve Board raised rates 0.50% at its May 16 meeting. This
increase was the sixth in 12 months and brought the Federal Funds rate to
6.5%. This is the rate's highest level since it was 6.75% in January of 1991.
. The price of crude oil rose to $37.20 a barrel, the highest level since
November of 1990.
. The euro sank to a 21-month low since its introduction in January 1999.
. More than 50 IPOs occurred in August, representing 25% of the IPOs launched
so far in 2000.
As you read through this report and review the performance of the funds in your
portfolio, we encourage you to keep long-term goals in mind when making
investment decisions. While one fund's recent performance may be better than
another's, it is important to remember that past performance is no guarantee of
future results. Even as market conditions change, you should maintain your
investment strategy as long as it remains appropriate for your short- or long-
term objectives. One trait many successful investors share is the ability to
stay focused on their personal financial goals and fundamental long term market
opinions, while ignoring temporary market swings.
We trust that the Funds are fulfilling your expectations as a simple, cost-
effective way for you to invest in your future, and will continue to do so. We
also encourage you to consider the appropriateness of other iShares Funds as
part of your long-term investment program. iShares Funds offer investors a wide
range of indexed investment choices based on market capitalization, investment
style, and sector exposure.
We appreciate your confidence and look forward to helping you meet your
investment goals.
iShares Funds November 2000
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iShares Shareholder Letter page 1
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Market Overview
Domestic Markets
Despite a bumpy ride, US equity markets delivered positive returns during the
six-months ended September 30, 2000. Mid-capitalization stocks were the
performance leaders for the period: The S&P MidCap 400 Index returned 16.82% for
the period. Small-capitalization stocks also fared well, advancing 11.20% and
11.02% in the S&P 600 Index and the Russell 2000 Index, respectively.
Conversely, large-capitalization stocks were flatter: the S&P 500 Index and the
Russell 1000 Index returned (0.68)% and 1.15%, respectively.
Value stocks outperformed growth stocks across all indices in this period. The
S&P 500/BARRA Value Index increased by 5.10%, and the S&P 600 Value/BARRA Index
increased by 5.68%. Both the S&P 500/BARRA Growth Index and the S&P 600/BARRA
Growth Index were relatively flat, returning 0.83% and 1.37%, respectively.
Interest rate concerns dominated investors' attention at the beginning of the
period. On May 16, the Federal reserve instituted its sixth interest rate hike
in 12 months, amid continued signs of an overheated economy. However, by the end
of May, economic figures began to reveal signs of a slowing economy. Lower
durable goods orders and new home sales suggested that the economy might be
approaching the Fed's desired "soft landing", and the Fed chose to leave rates
unchanged at its June meeting.
Less optimistic news arrived in July, however, in the form of higher-than-
expected figures for both the Gross Domestic Product (GDP) and Consumer Price
Index (CPI). Investors responded by selling off technology stocks and other
high-valuation shares, and buying more defensive stocks. August brought more
encouraging economic reports: US factory orders (excluding transportation
equipment) had fallen 4.8% in July, compared with a 0.5% increase in June.
Meanwhile, both the CPI and the core rate, which exclude food and energy, had
risen 0.2% in July, reflecting no acceleration in inflation. Finally, a record
drop in durable goods orders and an increase in jobless claims in July suggested
that the demand for workers and goods was slowing enough to relieve inflationary
pressures. The positive data led to another pause in Fed tightening, and markets
welcomed the news with a strong rally.
With concerns about inflation apparently behind them, investors began to focus
on new areas for worry. The price of crude oil, which had been climbing during
the year, reached a 10-year high in September. At the same time, the euro dipped
to an all-time low since its introduction in January 1999. Investors' concerns
about the impact that these factors would have on corporate earnings were
realized when Intel announced that it would fail to meet its third quarter
earnings expectations, citing the weakness of the euro. Investors began to shift
from growth stocks, particularly technology companies, and buy shares of more
value-oriented stocks.
International Markets
Many of the same concerns that affected the US markets also impacted the
international ones. Volatility, too, was a common theme. As the reporting period
began, the international markets were generally weak. Like in the US, investors
abroad remained concerned about the possibility that central banks would raise
interest rates substantially to ward off inflation. As a result, shares in "new
economy" sectors such as telecommunications and technology generally declined.
Stocks traditionally considered defensive, such as the value-oriented "old
economy" companies in the utilities and financial sectors, took the lead. This
trend would continue for much of the reporting period.
Not surprisingly, countries whose markets are dominated by technology and
telecommunications companies, such as Sweden and Finland with companies like
Ericsson and Nokia, were the hardest hit by the decline. But they were not
alone; U.K. and German markets were also dragged down by their respective
telecommunications companies. Besides concerns about potentially higher interest
rates, these markets were further impacted by the unexpectedly high prices paid
at auction for third-generation wireless licenses. As a result of the near-term
uncertainty, telecommunications stocks remained weak through the rest of the
reporting period.
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page 2 iShares
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The concurrent downturn in technology stocks affected almost every international
market, though some were harder hit than others. The stock exchanges of export-
oriented economies such as South Korea and Taiwan, for example, posted severe
losses in July, August and September. The weakness of the euro relative to the
US dollar was another strike against Asian exporters. Meanwhile, Latin American
markets held up relatively well; for instance, oil exporter Mexico was buoyed by
higher crude oil prices.
During September, a new market consensus appeared to be emerging. Investors
seemed less concerned about the possibility of higher interest rates but instead
were focused on the potential for a significant slowdown in global economic
growth. In this environment, stocks in utilities and financial-services
industries continued to outperform.
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iShares Market Overview page 3
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Managers' Discussion & Analysis
iShares S&P 500 Index Funds
Performance As Of 9/30/00
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Total Returns
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Inception to
Fund Inception Date September 30, 2000
---- -------------- ------------------
iShares S&P 500 Index Fund 05/15/00 (0.70)%
iShares S&P 500/BARRA Growth Index Fund 05/22/00 0.76%
iShares S&P 500/BARRA Value Index Fund 05/22/00 5.04%
--------------------------------------------------------------------------------
Total returns represent the iShares Funds' change in value during the time
periods noted above. These figures assume that dividends and capital gains
distributions have been reinvested in the Funds at net asset value. The Funds'
past performance is no guarantee of future results. The investment return and
principal value of shares of the Funds will vary with changes in market
conditions. Shares of the Funds may be worth more or less than their original
cost when they are redeemed or sold in the market.
[PIE CHART]
Sector Breakout
S&P 500 Index
Basic Materials 1.75%
Capital Goods 8.56%
Communications Services 6.35%
Consumer Cyclicals 6.91%
Consumer Staples 10.22%
Energy 5.85%
Financials 15.68%
Health Care 11.41%
Technology 29.47%
Transportation 0.53%
Utilities 3.27%
[PIE CHART]
S&P 500/BARRA Growth Index
Basic Materials 0.02%
Capital Goods 9.02%
Communications Services 2.28%
Consumer Cyclicals 7.24%
Consumer Staples 10.25%
Financials 1.30%
Health Care 18.94%
Technology 50.92%
Transportation 0.03%
[PIE CHART]
S&P 500/BARRA Value Index
Basic Materials 3.58%
Capital Goods 8.08%
Communications Services 10.67%
Consumer Cyclicals 6.56%
Consumer Staples 10.19%
Energy 12.04%
Financials 30.93%
Health Care 3.42%
Technology 6.74%
Transportation 1.06%
Utilities 6.73%
The Standard & Poor's (S&P) 500 Index showed moderate growth for the semiannual
reporting period ended September 30, 2000. The iSHARES S&P 500 INDEX FUND, which
commenced operations on May 15, seeks to track the S&P 500 Index. For the period
May 15
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page 4 iShares
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through September 30, the Index returned (0.68)%. The iShares S&P 500/BARRA
Growth Index Fund and the iShares S&P 500/BARRA Value Index Fund, which
commenced operations on May 22, seek to track the growth and value components of
the S&P 500 Index, respectively. From May 22 through September 30, the S&P
500/BARRA Growth Index returned 0.83%, and the S&P 500/BARRA Value Index
returned 5.10%.
The period began with the Federal Reserve's 0.5% interest rate hike on May 16.
This increase marked the sixth in a year. In July, investor concerns were
reinforced by the news that the Consumer Price Index had risen 0.6% in June and
the Gross Domestic Product had jumped 5.2% in the second quarter, above the
anticipated 3.8%. These increases, combined with profit warnings from major
technology firms, sparked a sell-off in the technology sector.
Stocks rallied in August in response to encouraging reports about the US
economy. July saw a drop in orders for durable goods, an increase in jobless
claims, and a decline in factory orders (excluding transportation equipment) of
4.8%. These factors, combined with growing optimism that interest rates had
stabilized, relieved inflationary pressures.
However, investors' concerns about inflation were soon replaced by pessimism
about rising oil prices and the weak euro. Intel's profit warning, which the
company reported was due to the weak euro's effect on its European sales,
triggered a sharp drop in technology stocks. The sell-off spread to the broader
market and even some blue chip stalwarts were dragged down. Companies such as
DuPont and Eastman Kodak saw significant declines.
Between May 15 and September 30, four stocks in the S&P 500 Index's top 10
holdings: Cisco, Microsoft, Intel, and Oracle realized losses that ranged from
6.5% to 32.0%. Since technology stocks made up 29.4% of the Index's weighting
during the period, the losses this sector sustained had the most profound impact
on overall returns.
However, declines in the technology sector were offset by the strong performance
of stocks in the financial and utilities sectors. Merger and acquisition
activity, most notably Chase Manhattan Bank's $34 billion bid for J.P. Morgan,
contributed to the 15.79% rise in the financial sector for the third quarter,
July to September.
For most of the period between the Funds' inception and September 30, growth and
value stocks fell alternately in and out of favor. However, for the overall
period, value stocks strongly outpaced growth, with the S&P 500/BARRA Value and
Growth Indexes returning 5.10% and 0.83%, respectively. Value stocks' lead was
largely due to the weakness of technology stocks and investors' retreat to more
the defensive issues of "old economy" value stocks.
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iShares Managers' Discussion & Analyses page 5
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Managers' Discussion & Analysis
iShares S&P MidCap 400 Index Funds
Performance as Of 9/30/00
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Total Returns
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Inception to
Fund Inception Date September 30, 2000
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iShares S&P MidCap 400 Index Fund 05/22/00 16.71%
iShares S&P MidCap 400/BARRA Growth
Index Fund 07/24/00 7.58%
iShares S&P MidCap 400/BARRA Value Index
Fund 07/24/00 8.83%
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Total returns represent the iShares Funds' change in value during the time
periods noted above. These figures assume that dividends and capital gains
distributions have been reinvested in the Funds at net asset value. The Funds'
past performance is no guarantee of future results. The investment return and
principal value of shares of the Funds will vary with changes in market
conditions. Shares of the Funds may be worth more or less than their original
cost when they are redeemed or sold in the market.
[PIE CHART]
Sector Breakout
S&P Midcap 400
Index
Basic Materials 3.39%
Capital Goods 7.15%
Communications Services 1.49%
Consumer Cyclicals 11.86%
Consumer Staples 6.67%
Energy 6.94%
Financials 11.73%
Health Care 13.18%
Technology 24.59%
Transportation 1.27%
Utilities 11.73%
[PIE CHART]
S&P MidCap 400/BARRA Growth Index
Basic Materials 0.99%
Capital Goods 7.71%
Communications Services 0.44%
Consumer Cyclicals 9.27%
Consumer Staples 5.13%
Energy 8.34%
Financials 3.37%
Health Care 19.22%
Technology 37.36%
Transportation 0.75%
Utilities 7.42%
[PIE CHART]
S&P MidCap 400/BARRA Value Index
Basic Materials 6.27%
Capital Goods 6.47%
Communications Services 2.75%
Consumer Cyclicals 14.98%
Consumer Staples 8.52%
Energy 5.25%
Financials 21.80%
Health Care 5.92%
Technology 9.20%
Transportation 1.90%
Utilities 16.94%
The Standard & Poor's (S&P) MidCap 400 Index showed strong growth for the
semiannual reporting period ended September 30, 2000. The iShares S&P MidCap 400
Index Fund, which commenced operations on May 22, seeks to track the S&P MidCap
400 Index.
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page 6 iShares
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For the period May 22 through September 30, the Index rose 16.82%. The iShares
S&P MidCap 400/BARRA Growth Index Fund and the ishares S&P MidCap 400/BARRA
Value Index Fund, which commenced operations on July 24, seek to track the
growth and value components of the S&P MidCap 400 Index, respectively. From July
24 through September 30, the S&P MidCap 400/BARRA Growth Index returned 7.68%,
and the S&P MidCap 400/BARRA Value Index returned 8.90%.
The overall positive performance of the S&P MidCap 400 Index between May 22 and
September 30 conceals the wide swings the market experienced in the first
several months following the Funds' inceptions.
As economic data released in June pointed to a rosy economy with no signs of
inflation, investor optimism was high. The mood was reflected in market
performance: technology and health care stocks, which represent the two largest
sectors of the S&P MidCap 400 Index (approximately 25% and 13%) returned 9.0%
and 11.9%, respectively.
However, July brought discouraging news. Higher-than-expected figures for both
the June Consumer Price Index and the second quarter Gross Domestic Product
suggested a rapidly growing economy, and investor sentiment turned negative.
Growth companies were sold off as investors sought safety in more defensive
sectors. Technology stocks declined 1.8%, while basic materials, transportation,
and financial stocks, gained 5.3%, 9.7%, and 7.2%, respectively. The energy
sector was the worst performer for the month, returning (7.1)%.
Almost every sector responded well to positive economic news in August. A rise
in retail sales figures (0.2% instead of the 0.4% that had been expected) was
announced, and popular sentiment held that interest rates would remain flat for
the remainder of the year. The increase in jobless claims in July and a record
drop in orders of durable goods also contributed to increased investor
confidence.
Unfortunately, the recovery in August was short-lived. Investor concern over
corporate profit growth caused a profound downswing in the market in September.
The concern stemmed from rising crude oil prices, which had reached a 10-year
high by the end of third quarter 2000. In addition, a weakened euro, which
reached an historic low of $0.85 to the US dollar in September, compounded
concerns and helped to drive stock prices lower.
In general, market performance reflected investor confidence in the US economy
between May 22 and September 30: when economic reports were promising, equities
performed well; when the reports looked less optimistic, the market dropped
accordingly.
For most of the time between the Funds' inceptions and September 30, growth and
value stocks fell in and out of favor inversely. Only during the market rally in
August did they experience positive returns in the same month: 14.9% for growth
and 7.2% for value.
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iShares Managers' Discussion & Analyses page 7
<PAGE>
Managers' Discussion & Analysis
iShares S&P SmallCap 600 Index Funds
Performance As Of 9/30/00
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Total Returns
--------------------------------------------------------------------------------
Inception to
Fund Inception Date September 30, 2000
---- -------------- ------------------
iShares S&P SmallCap 600 Index Fund 05/22/00 11.08%
iShares S&P SmallCap 600/BARRA Growth
Index Fund 07/24/00 1.24%
iShares S&P SmallCap 600/BARRA Value
Index Fund 07/24/00 5.66%
--------------------------------------------------------------------------------
Total returns represent the iShares Funds' change in value during the time
periods noted above. These figures assume that dividends and capital gains
distributions have been reinvested in the Funds at net asset value. The Funds'
past performance is no guarantee of future results. The investment return and
principal value of shares of the Funds will vary with changes in market
conditions. Shares of the Funds may be worth more or less than their original
cost when they are redeemed or sold in the market.
[PIE CHART]
Sector Breakout
S&P SmallCap 600 Index
Basic Materials 3.49%
Capital Goods 13.67%
Communications Services 0.19%
Consumer Cyclicals 17.25%
Consumer Staples 7.83%
Energy 5.49%
Financials 12.20%
Health Care 14.24%
Technology 18.99%
Transportation 3.16%
Utilities 3.49%
[PIE CHART]
S&P SmallCap 600/BARRA Growth Index
Basic Materials 1.84%
Capital Goods 15.19%
Communications Services 0.19%
Consumer Cyclicals 11.34%
Consumer Staples 7.16%
Energy 5.76%
Financials 5.11%
Health Care 22.20%
Technology 27.39%
Transportation 3.82%
[PIE CHART]
S&P SmallCap 600/BARRA Value Index
Basic Materials 4.95%
Capital Goods 12.33%
Communications Services 0.18%
Consumer Cyclicals 22.47%
Consumer Staples 8.42%
Energy 5.26%
Financials 18.45%
Health Care 7.21%
Technology 11.58%
Transportation 2.58%
Utilities 6.57%
The Standard & Poor's (S&P) SmallCap 600 Index showed solid growth for the
semiannual reporting period ended September 30, 2000. The iShares S&P SnallCap
600 Index Fund, which commenced operations on May 22, seeks to track the S&P
SmallCap 600 Index. For the period May 22 through September 30, the Index rose
11.20%. The iShares S&P SmallCap 600/BARRA Growth Index Fund
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page 8 iShares
<PAGE>
and the iShares S&P SmallCap 600/BARRA Value Index Fund, which commenced
operations on July 24, seek to track the growth and value components of the S&P
SmallCap 600 Index, respectively. From July 24 through September 30, the S&P
SmallCap 600/BARRA Growth Index returned 1.37%, and the S&P SmallCap 600/BARRA
Value Index returned 5.68%.
Small-cap stocks performed well in the months following the Funds' inceptions.
There was significant volatility in this segment of the market, however, and
different sectors went dramatically in and out of favor between May 22 and
September 30. In general, the volatility in sector performance was attributable
to investor sentiment about the state of the economy. As economic news released
during the period was alternately positive and negative, investors' enthusiasm
rose and fell accordingly. Sector performance reflected these changes in
sentiment, experiencing wide swings from month to month.
In June the health care sector gained 25.9%, and the technology sector rose
10.5%. The only significant loss this month was the (8.4)% return in the
communications services sector. Other sectors of the small-cap market remained
relatively flat.
The communications services sector rose slightly early in July, but closed the
month with a (6.0)% return. The energy sector also fell, ending with a
performance of (14.2)%. Technology lost its June gain, returning (10.2)% in
July. Conversely, the transportation and financial sectors were solid
performers, closing up 10.3% and 9.6%, respectively.
In August, encouraging economic news and the Fed's corresponding decision not to
raise interest rates sparked a rally across market sectors. By month-end, the
communications services sector was up 45.8%; the energy sector rose 23.4%; and
the health care, technology, and financial sectors made contributions of 16.0%,
9.8%, and 9.2%, respectively. The IPO market was also active in August: 53
companies were listed, representing 25% of the IPOs launched to date in 2000.
In September, three issues that had been brewing for more than a year (rising
interest rates, a weakening euro, and increasing oil prices) shook investors'
confidence and ultimately drove down stock prices. Technology companies were
among the hardest hit, as investors abandoned them in favor of more defensive
stocks. September brought flat returns in the energy, health care, and utilities
sectors but losses in other sectors. Communications services led the losing
sectors with a return of (26.8)%, followed by (11.7)% in technology, and (10.7)%
in basic materials.
Although growth and value stocks fell in and out of favor alternately between
May 22 and September 30, value stocks outperformed their growth counterparts for
the period overall.
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iShares Managers' Discussion & Analyses page 9
<PAGE>
Managers' Discussion & Analysis
iShares S&P Europe 350 Index Fund
Performance As Of 9/30/00
--------------------------------------------------------------------------------
Total Return
--------------------------------------------------------------------------------
Inception to
Fund Inception Date September 30, 2000
---- -------------- ------------------
iShares S&P Europe 350 Index Fund 07/25/00 (7.31)%
--------------------------------------------------------------------------------
Total return represent the iShares Fund's change in value during the time
periods noted above. These figures assume that dividends and capital gains
distributions have been reinvested in the Fund at net asset value. The Fund's
past performance is no guarantee of future results. The investment return and
principal value of shares of the Fund will vary with changes in market
conditions. Shares of the Fund may be worth more or less than their original
cost when they are redeemed or sold in the market.
Edgar Representation Of Data Points Used In Printed Graphic
[PIE CHART]
Country Breakout
S&P Europe 350 Index
Austria 0.0810%
Belgium 0.8833%
Denmark 0.5216%
Finland 3.6841%
France 14.1441%
Germany 9.7744%
Italy 4.8014%
Netherlands 8.2863%
Norway 0.2160%
Portugal 0.5562%
Spain 4.4141%
Sweden 3.7201%
Switzerland 8.2863%
United Kingdom 40.6311%
The total return of the S&P Europe 350 Index was (7.11)% for the period from
July 25, 2000, through September 30, 2000. The iShares S&P Europe 350 Index Fund
returned (7.31)% for the same period. The S&P Europe 350 Index measures the
performance of equities in the UK, and 14 countries in the Euro Zone, which
include the EMU countries plus Denmark, Norway, Sweden and Switzerland.
Due in part to the ongoing weakness of the euro, US dollar returns from many
European markets fell into negative territory over the reporting period. July
was particularly volatile. That month, telecom bellwethers Nokia and Ericsson
(respectively 3.4% and 2.1% of the Index as of September 30, 2000) announced
that they were expecting slower growth over at least the next quarter. This news
created a domino effect, affecting other communications stocks such as Vodafone,
which was the Index's largest stock as of September 30, 2000. Communications
stocks were also depressed by persistent concerns about the auction of
third-generation (3G) wireless licenses in several European markets. These
licenses have commanded much higher prices than investors had been expecting,
prompting credit agencies to review the ratings of firms that won the bidding
and leaving investors concerned about the long-term costs of building 3G
networks across Europe.
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page 10 iShares
<PAGE>
As the outlook for communications stocks and other growth-oriented issues became
less certain, investors retreated to sectors traditionally viewed as defensive,
such as utilities and financials. HSBC Holdings was one of the standouts in the
financials sector. Higher crude oil prices also benefited energy stocks in the
Europe 350 Index, such as BP Amoco and Royal Dutch Petroleum. As of September
30, 2000, those stocks were respectively the Index's second- and fifth-largest
holdings, at 3.7% and 2.3% of the portfolio.
Although the euro's weakness has diminished returns for US dollar-based
investors, the trend has been positive for European exporters. Yet the euro's
weakness was one factor the European Central Bank cited for its decision to
raise interest rates shortly after the reporting period ended. It was the sixth
such rate increase this year. The Bank also pointed to signs that higher-than-
expected second quarter labor costs were creating inflationary pressures.
Indeed, consumer price inflation in the euro zone clocked in at an annualized
rate of 2.3% in August, outpacing the Bank's target rate of 2%. The Bank of
England, meanwhile, left interest rates unchanged for the eighth straight month.
Bank officials said that inflation in Britain appeared to be under control, due
in part to a weakening of the pound versus other currencies.
As the period ended, higher crude oil prices were another concern, both in
heightening inflationary pressures and lowering consumer confidence across
Europe.
--------------------------------------------------------------------------------
iShares Managers' Discussion & Analyses page 11
<PAGE>
Managers' Discussion & Analysis
iShares S&P/TSE 60 Index Fund
Performance as of 9/30/00
--------------------------------------------------------------------------------
Total Return
--------------------------------------------------------------------------------
Inception to
Fund Inception Date September 30, 2000
---- -------------- ------------------
iShares S&P/TSE 60 Index Fund 06/12/00 5.30%
--------------------------------------------------------------------------------
Total return represent the iShares Fund's change in value during the time
periods noted above. These figures assume that dividends and capital gains
distributions have been reinvested in the Fund at net asset value. The Fund's
past performance is no guarantee of future results. The investment return and
principal value of shares of the Fund will vary with changes in market
conditions. Shares of the Fund may be worth more or less than their original
cost when they are redeemed or sold in the market.
[PIE CHART]
Sector Breakout
---------------
S&P/TSE 60 Index
Consumer Discretionary 8.58%
Consumer Staples 0.60%
Energy 8.32%
Financials 19.17%
Health Care 0.47%
Industrials 7.06%
Information Technology 41.30%
Materials 7.38%
Telecommunications Services 4.46%
Utilities 2.66%
The total return of the Standard & Poor's/Toronto Stock Exchange 60 Index
(S&P/TSE 60) was 3.33% for the period from June 12, 2000 through September 30,
2000. The S&P/TSE 60 tracks the sixty largest securities in the Canadian market.
The iShares S&P/ TSE 60 Index Fund, which seeks to track the S&P/TSE 60,
returned 5.30% over the period from the Fund's inception on June 12, 2000,
through September 30, 2000.
Regulatory restrictions can adversely affect the Investment Adviser's ability to
optimize the portfolio of an iShares Fund. The Single-Issue Rule generally
requires that no more than 25% of the value of a Fund's total assets may be
invested in the securities of one single issuer. In the case of the S&P/TSE 60,
the Fund was obligated to underweight Nortel Networks over the reporting period,
while overweighting other securities to compensate. The performance of Nortel
Networks, which accounted for 22.4% of the Fund and 37.9% of the Index as of
September 30, 2000, heavily influenced the performance of the Toronto Stock
Exchange (TSE) this period.
After having declined over the spring along with other telecommunications
stocks, Nortel's shares rebounded during the summer. It encountered renewed
turbulence in September, driven down primarily by investors' sector-wide
concerns. The Fund's underweighting in Nortel put it at a disadvantage over the
summer months as shares of Nortel continued to advance. It was beneficial in
September, however, when Nortel declined significantly along with other
communications stocks. The underweighting of Nortel helped the Fund to
outperform the Index by 1.97%.
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page 12 iShares
<PAGE>
Technology stocks in the TSE also remained volatile. For example, Celestica,
which was 2.4% of the Index as of September 30, 2000, rebounded from a drop in
the spring to achieve positive returns over the summer. Toward the end of the
reporting period, several earnings warnings released from technology companies
including Intel led investors to sell off other technology stocks such as
Celestica.
With the outlook for technology and telecommunications stocks becoming less
certain, investors turned to more defensive issues in the utilities and
financial services areas. As a result, several banks in the TSE, including
Canadian Imperial Bank and Toronto Dominion Bank, performed well over the
reporting period. The apparent stabilization of US and Canadian interest rates
created a more positive backdrop for financial services companies in general.
As the reporting period ended, investors continued to be concerned about several
issues. These include slowing economic growth in the United States and other
countries, the impact of higher crude-oil prices, and the adverse effect of the
euro's weakness on Canadian exporters.
--------------------------------------------------------------------------------
iShares Managers' Discussion & Analyses page 13
<PAGE>
iShares S&P 500 Index Fund
Schedule of Investments
September 30, 2000 (unaudited)
Security Shares Value
--------------------------------------------------------------------
COMMON STOCKS - 99.89%
--------------------------------------------------------------------
General Electric Co. 1,307,397 $ 75,420,460
Cisco Systems Inc.+ 936,745 51,755,161
Microsoft Corp.+ 694,675 41,854,169
Exxon Mobil Corp. 459,899 40,988,498
Pfizer Inc. 833,469 37,454,013
Intel Corp. 886,296 36,892,071
Citigroup Inc. 593,896 32,107,502
Oracle Corp.+ 371,616 29,264,760
American International Group Inc. 305,471 29,229,756
EMC Corporation+ 287,588 28,507,161
Wal-Mart Stores Inc. 589,625 28,375,703
International Business Machines Corp. 232,444 26,149,950
Sun Microsystems Inc.+ 209,444 24,452,587
Nortel Networks Corp. 393,863 23,459,465
Merck & Co. Inc. 303,728 22,608,753
SBC Communications Inc. 447,518 22,375,900
Coca-Cola Co. 327,041 18,028,135
Verizon Communications 358,898 17,384,122
Johnson & Johnson 183,575 17,244,577
Royal Dutch Petroleum Co. 283,130 16,970,104
America Online Inc.+ 304,478 16,365,692
Home Depot Inc. 305,790 16,225,982
Bristol-Myers Squibb Co. 259,514 14,824,737
AT&T Corp. 495,986 14,569,589
Time Warner Inc. 174,404 13,647,113
Morgan Stanley Dean Witter & Co. 148,573 13,585,144
Lucent Technologies Inc. 439,376 13,428,429
Hewlett-Packard Co. 131,686 12,773,542
Lilly (Eli) and Company 149,163 12,100,848
Viacom Inc. "B"+ 200,292 11,717,082
JDS Uniphase Corp.+ 123,453 11,689,456
Procter & Gamble Co. 172,727 11,572,709
Tyco International Ltd. 222,522 $ 11,543,329
Corning Inc. 38,824 11,530,728
WorldCom Inc.+ 379,473 11,526,492
Bank of America Corp. 216,934 11,361,918
Texas Instruments Inc. 228,271 10,771,538
American Express Co. 175,904 10,686,168
Disney (Walt) Co. 275,318 10,530,913
Dell Computer Corp.+ 341,240 10,514,458
Qwest Communications International Inc.+ 217,910 10,473,299
Pharmacia & Upjohn Inc. 170,132 10,239,820
BellSouth Corp. 247,536 9,963,324
Wells Fargo & Company 215,890 9,917,447
American Home Products Corp. 172,183 9,739,101
Abbott Laboratories 204,717 9,736,852
Fannie Mae 133,063 9,514,004
Amgen Inc.+ 135,818 9,483,916
Schering-Plough Corp. 193,499 8,997,704
PepsiCo Inc. 190,621 8,768,566
Philip Morris Companies Inc. 297,491 8,757,391
Enron Corp. 97,033 8,502,517
Medtronic Inc. 158,259 8,199,794
Motorola Inc. 285,953 8,078,172
Chase Manhattan Corp. 172,697 7,976,443
Boeing Co. 118,537 7,467,831
Veritas Software Corp.+ 52,547 7,461,674
Chevron Corp. 86,225 7,350,681
Broadcom Corp.+ 29,084 7,089,225
QUALCOMM Inc.+ 98,228 6,998,745
Merrill Lynch & Co. Inc. 105,075 6,934,950
Yahoo! Inc.+ 72,034 6,555,094
Schwab (Charles) Corp. 180,408 6,404,484
Applied Materials Inc.+ 107,031 6,348,276
Ford Motor Company+ 248,308 6,285,296
Schlumberger Ltd. 75,322 6,199,942
Compaq Computer Corp. 224,614 6,194,854
Siebel Systems Inc.+ 54,242 6,037,813
Bank One Corp. 151,977 5,870,112
Du Pont (E.I.) de Nemours 137,785 5,709,466
Automatic Data Processing Inc. 82,893 5,543,469
Bank of New York Co. Inc. 97,571 5,470,074
McDonald's Corp. 174,554 5,269,349
Network Appliance Inc.+ 40,627 5,174,864
Walgreen Co. 133,471 5,063,556
Anheuser-Busch Companies Inc. 119,646 5,062,521
Freddie Mac 91,883 4,967,425
Comcast Corp. "A"+ 118,885 4,866,855
Minnesota Mining & Manufacturing Co. 52,252 4,761,464
Marsh & McLennan Companies Inc. 35,700 4,739,175
Nextel Communications Inc. "A"+ 100,427 4,694,962
FleetBoston Financial Corp. 119,281 4,651,959
General Motors Corp. "A" 70,852 4,605,380
Clear Channel Communications Inc.+ 77,415 4,373,947
MBNA Corp. 112,602 4,335,177
United Technologies Corp. 61,896 4,286,298
Gillette Co. 138,247 4,268,376
Sprint Corp. (PCS Group)+ 121,298 4,253,011
First Union Corp. 129,866 4,180,062
Duke Energy Corp. 48,667 4,173,195
--------------------------------------------------------------------------------
page 14 iShares
<PAGE>
iShares S&P 500 Index Fund
Schedule of Investments (Continued)
September 30, 2000 (Unaudited)
Security Shares Value
----------------------------------------------------------------------
COMMON STOCKS (continued)
----------------------------------------------------------------------
AES Corp.+ 60,393 $ 4,136,920
Kimberly-Clark Corp. 71,158 3,971,506
Palm Inc.+ 74,696 3,954,220
Analog Devices Inc.+ 46,856 3,868,549
Texaco Inc. 72,897 3,827,093
Emerson Electric Co. 56,485 3,784,495
Honeywell International Inc. 105,705 3,765,741
Associates First Capital Corp. 96,324 3,660,312
Unilever NV 75,591 3,647,266
Xilinx Inc.+ 42,557 3,643,943
Solectron Corp.+ 78,969 3,642,445
Global Crossing Ltd.+ 116,447 3,609,857
Colgate-Palmolive Co. 75,965 3,585,548
Household International Inc. 62,479 3,537,873
Morgan (J.P.) & Co. Inc. 21,033 3,436,266
Sprint Corp. (FON Group) 116,102 3,403,240
Micron Technology Inc.+ 73,473 3,379,758
Allstate Corp. 97,118 3,374,850
Seagram Co. Ltd. 57,736 3,316,212
Fifth Third Bancorp 61,518 3,314,282
Cardinal Health Inc. 36,467 3,215,934
PE Corp. (Biosystems Group) 27,553 3,209,925
Target Corporation 120,372 3,084,533
Safeway Inc.+ 65,751 3,069,750
Baxter International Inc. 38,447 3,068,551
Maxim Integrated Products Inc.+ 37,400 3,008,362
Mellon Financial Corp. 64,582 2,994,990
Agilent Technologies Inc.+ 59,861 2,929,448
Alcoa Inc. 114,432 2,896,560
Halliburton Co. 58,801 2,877,574
Guidant Corp.+ 40,589 2,869,135
Washington Mutual Inc. 71,311 2,839,069
Firstar Corp. 126,785 2,836,814
Southern Co. 85,833 2,784,208
State Street Corp. 21,311 2,770,430
HCA - The Healthcare Company 73,844 2,741,459
Linear Technology Corp. 41,172 2,665,887
Bestfoods 36,366 2,645,626
Northern Trust Corp. 29,358 2,609,192
Tellabs Inc.+ 54,236 2,589,769
Paychex Inc. 49,191 2,582,528
American General Corp. 32,905 2,566,590
Electronic Data Systems Corp. 61,698 2,560,467
Altera Corp.+ 52,731 2,517,905
Kohls Corp.+ 43,215 $ 2,492,965
PNC Bank Corp. 38,258 2,486,770
Williams Companies Inc. 58,516 2,472,301
Kroger Co.+ 109,325 2,466,645
Adobe Systems Inc. 15,846 2,460,091
ADC Telecommunications Inc.+ 90,946 2,445,595
Providian Financial Corp. 18,882 2,398,014
CVS Corp. 51,696 2,394,171
Lehman Brothers Holdings Inc. 16,006 2,364,886
Sara Lee Corp. 115,118 2,338,334
Lowe's Companies Inc. 50,642 2,272,560
Gap Inc. 112,514 2,264,344
AFLAC Inc. 35,113 2,249,427
US Bancorp Inc. 98,763 2,246,858
Dow Chemical Co. 89,555 2,233,278
Illinois Tool Works Inc. 39,942 2,231,759
Conoco Inc. 82,478 2,221,751
Comverse Technology Inc.+ 20,231 2,184,948
Alltel Corp. 41,772 2,179,976
CIGNA Corp. 20,869 2,178,724
Anadarko Petroleum Corp. 32,165 2,137,686
MedImmune Inc.+ 27,643 2,135,422
Phillips Petroleum Co. 33,635 2,110,596
UnitedHealth Group Inc. 21,279 2,101,301
Coastal Corp. 28,335 2,100,332
First Data Corp. 53,679 2,096,836
Seagate Technology Inc.+ 30,109 2,077,521
Hartford Financial Services Group Inc. 28,469 2,076,458
Costco Wholesale Corp.+ 59,189 2,067,916
Sysco Corp. 44,143 2,044,373
Gateway Inc.+ 42,625 1,992,719
SunTrust Banks Inc. 39,487 1,966,946
Computer Associates International Inc. 77,944 1,963,215
Carnival Corp. "A" 78,069 1,922,449
Harley-Davidson Inc. 40,073 1,918,495
El Paso Energy Corp. 30,645 1,888,498
Lockheed Martin Corp. 56,574 1,864,679
Gannett Co. Inc. 34,941 1,851,873
Sanmina Corp.+ 19,642 1,838,982
International Paper Co. 63,994 1,835,828
Chubb Corp. 23,158 1,832,377
Dominion Resources Inc. 31,536 1,831,059
Capital One Financial Corp. 25,946 1,817,842
Reliant Energy Inc. 38,972 1,812,198
Tribune Co. 40,855 1,782,299
National City Corp. 80,325 1,777,191
--------------------------------------------------------------------------------
iShares Schedules of Investments Page 15
<PAGE>
iShares S&P 500 Index Fund
Schedule of Investments (Continued)
September 30, 2000 (Unaudited)
Security Shares Value
----------------------------------------------------------------------
COMMON STOCKS (Continued)
----------------------------------------------------------------------
Best Buy Co. Inc.+ 27,076 $ 1,722,711
Omnicom Group Inc. 23,536 1,716,657
Heinz (H.J.) Co. 46,050 1,706,728
FedEx Corp.+ 37,768 1,674,633
American Electric Power Inc. 42,635 1,668,094
Eastman Kodak Co. 40,760 1,666,065
General Dynamics Corp. 26,303 1,652,157
Mercury Interactive Corp.+ 10,512 1,647,756
Computer Sciences Corp.+ 22,171 1,646,197
McGraw-Hill Companies Inc. 25,765 1,637,688
Transocean Sedco Forex Inc. 27,878 1,634,348
Baker Hughes Inc. 43,749 1,624,182
Southwest Airlines Co. 65,761 1,594,704
RadioShack Corp. 24,619 1,591,003
BB&T Corp. 51,902 1,563,548
FPL Group Inc. 23,578 1,550,253
Caterpillar Inc. 45,830 1,546,762
Wachovia Corp. 26,826 1,520,699
Tenet Healthcare Corp. 41,447 1,507,635
Sears, Roebuck and Co. 45,465 1,473,975
Allergan Inc. 17,168 1,449,623
KeyCorp 57,108 1,445,546
Campbell Soup Co. 55,858 1,445,326
Waste Management Inc. 82,296 1,435,036
Franklin Resources Inc. 32,294 1,434,822
Nike Inc. "B" 35,773 1,433,156
ConAgra Inc. 70,619 1,416,794
Molex Inc. 25,991 1,414,885
St. Paul Companies Inc. 28,098 1,385,583
TXU Corporation 34,952 1,384,973
Quaker Oats Co. 17,346 1,372,502
PECO Energy Co. 22,499 1,362,596
Interpublic Group of Companies Inc. 39,985 1,361,989
General Mills Inc. 37,875 1,344,562
Scientific-Atlanta Inc. 21,098 1,342,360
Pitney Bowes Inc. 33,873 1,335,866
Xerox Corp. 88,294 1,329,928
AON Corp. 33,840 1,328,220
ALZA Corp.+ 15,302 1,323,623
Paine Webber Group Inc. 19,303 1,315,017
Unicom Corp. 23,342 1,311,529
Kellogg Co. 53,749 1,300,054
Avon Products Inc. 31,469 1,286,295
Stilwell Financial Inc.+ 29,535 1,284,773
Raytheon Co. "B" 45,043 1,280,910
Union Pacific Corp. 32,842 $ 1,276,733
Public Service Enterprise Group Inc. 28,463 1,271,940
Dover Corp. 26,901 1,262,666
Limited Inc. 56,951 1,256,481
PG&E Corp. 51,066 1,235,159
Nabisco Group Holdings Corp. "A" 43,269 1,233,167
Clorox Co. 31,130 1,231,581
Xcel Energy Inc. 44,762 1,230,955
Lincoln National Corp. 25,315 1,218,284
Comerica Inc. 20,723 1,211,000
Conexant Systems Inc.+ 28,811 1,206,461
Biogen Inc.+ 19,648 1,198,528
LSI Logic Corp.+ 40,682 1,189,948
Weyerhaeuser Co. 29,237 1,180,444
Albertson's Inc. 56,191 1,180,011
USX-Marathon Group Inc. 41,344 1,173,136
Burlington Northern Santa Fe Corp. 53,681 1,157,497
Marriott International Inc. 31,755 1,157,073
McKesson HBOC Inc. 37,388 1,142,671
Unocal Corp. 32,188 1,140,662
Wrigley (William Jr.) Co. 15,098 1,130,463
Delphi Automotive Systems Corp. 74,372 1,124,877
Golden West Financial Corp. 20,947 1,123,283
Apple Computer Inc.+ 43,024 1,107,868
Masco Corp. 59,475 1,107,722
Entergy Corp. 29,623 1,103,457
Air Products & Chemicals Inc. 30,396 1,094,256
Loews Corp. 13,049 1,087,960
Aetna Inc. 18,681 1,084,666
Occidental Petroleum Corp. 48,862 1,065,802
Burlington Resources Inc. 28,555 1,051,181
Cendant Corp.+ 95,568 1,039,302
Deere & Co. 31,028 1,031,681
PeopleSoft Inc.+ 36,584 1,022,066
KLA-Tencor Corp.+ 24,646 1,015,107
Devon Energy Corp. 16,790 1,009,918
USA Education Inc. 20,634 994,301
Constellation Energy Group Inc. 19,839 986,990
Hershey Foods Corp. 18,166 983,235
Starbucks Corp.+ 24,352 975,602
Ralston Purina Co. 40,670 963,371
Advanced Micro Devices Inc.+ 40,601 959,199
Consolidated Edison Inc. 28,105 959,083
Apache Corp. 16,164 955,697
National Semiconductor Corp.+ 23,422 942,736
--------------------------------------------------------------------------------
Page 16 iShares
<PAGE>
iShares S&P 500 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------------
Danaher Corp. 18,781 $ 934,355
Jefferson-Pilot Corp. 13,669 927,783
MBIA Inc. 13,029 926,688
PPG Industries Inc. 23,091 916,424
Bed Bath & Beyond Inc.+ 37,202 907,380
Bear Stearns Companies Inc. 14,322 902,286
Boston Scientific Corp.+ 54,050 888,447
Coca-Cola Enterprises Inc. 55,648 886,890
Becton Dickinson & Co. 33,465 884,731
CP&L Energy Inc. 21,155 881,899
Textron Inc. 19,100 880,988
TJX Companies Inc. 38,913 875,543
Watson Pharmaceutical Inc.+ 13,469 873,801
New York Times Co. "A" 22,216 873,367
UNUMProvident Corp. 31,901 869,302
May Department Stores Co. 42,293 867,007
MGIC Investment Corp. 14,037 858,012
Staples Inc.+ 60,409 857,053
Northrop Grumman Corp. 9,267 842,139
Alcan Aluminium Ltd. 29,018 839,708
Rohm & Haas Co. "A" 28,841 838,192
Edison International 43,304 836,309
Fort James Corp. 27,249 832,798
Kerr-McGee Corp. 12,481 826,866
Biomet Inc. 23,532 823,620
FirstEnergy Corp. 30,443 820,058
IMS Health Inc. 39,415 817,861
Novellus Systems Inc.+ 17,311 806,043
Newell Rubbermaid Inc. 35,333 806,034
Teradyne Inc.+ 22,946 803,110
Amerada Hess Corp. 11,997 803,049
Summit Bancorp 23,206 800,607
Barrick Gold Corp. 52,480 800,320
PP&L Resources Inc. 19,101 797,467
Synovus Financial Corp. 37,505 794,637
Progressive Corporation 9,687 793,123
Convergys Corp.+ 20,353 791,223
Wellpoint Health Networks Inc.+ 8,230 790,080
Praxair Inc. 20,906 781,362
Ameren Corp. 18,171 760,911
Cincinnati Financial Corp. 21,333 757,321
Price (T. Rowe) Associates 16,029 752,361
Columbia Energy Group 10,591 751,961
Rockwell International Corp. 24,672 746,328
Norfolk Southern Corp. 50,808 $ 743,067
Tiffany & Co. 19,228 741,480
Dun & Bradstreet Corp. 21,449 738,650
Dollar General Corp. 43,628 730,769
Ingersoll-Rand Co. 21,461 726,991
Federated Department Stores Inc.+ 27,703 723,741
DTE Energy Co. 18,919 723,652
Archer-Daniels-Midland Co. 83,881 723,471
Delta Air Lines Inc. 16,229 720,162
KeySpan Corp. 17,740 711,817
Cabletron Systems Inc.+ 24,173 710,082
Dow Jones & Co. Inc. 11,654 705,067
SouthTrust Corp. 22,291 700,773
Cinergy Corp. 21,111 697,982
Florida Progress Corp. 13,066 691,681
Avery Dennison Corp. 14,854 688,854
Charter One Financial Inc. 28,019 682,974
PerkinElmer Inc. 6,512 679,690
Union Carbide Corp. 17,846 673,687
TRW Inc. 16,357 664,503
Regions Financial Corp. 29,191 662,271
AMR Corp.+ 19,854 648,978
Lexmark International Group Inc. "A"+ 16,954 635,775
Sapient Corp.+ 15,605 634,928
CSX Corp. 28,990 632,344
Mattel Inc. 56,494 632,027
Amsouth Bancorp 50,276 628,450
Circuit City Stores Inc. 26,976 620,448
BMC Software Inc.+ 32,418 619,994
Ecolab Inc. 17,091 616,344
CIT Group Inc. (The) 34,914 610,995
Johnson Controls Inc. 11,384 605,487
Tosco Corp. 19,204 598,925
Tricon Global Restaurants Inc.+ 19,483 596,667
Thermo Electron Corp.+ 22,935 596,310
Union Planters Corp. 17,920 592,480
Eaton Corp. 9,589 590,922
Pinnacle West Capital Corp. 11,199 569,749
St. Jude Medical Inc.+ 11,154 568,854
Countrywide Credit Industries Inc. 15,034 567,533
Hilton Hotels Corp. 48,948 565,961
Sempra Energy 27,163 565,330
Harcourt General Inc. 9,524 561,916
Fortune Brands Inc. 21,008 556,712
Ceridian Corp.+ 19,231 539,670
Vulcan Materials Co. 13,364 537,066
--------------------------------------------------------------------------------
iShares Schedules of Investments page 17
<PAGE>
iShares S&P 500 Index Fund
Schedule of Investments (Continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------------
COMMON STOCKS (Continued)
--------------------------------------------------------------------
Georgia-Pacific Corp. 22,639 $ 532,016
Old Kent Financial Corp. 18,258 528,341
Goodrich (B.F.) Co. 13,471 527,895
GPU Inc. 16,087 521,822
Knight Ridder Inc. 10,120 514,222
CenturyTel Inc. 18,591 506,605
Equifax Inc. 18,749 505,051
Sealed Air Corp.+ 11,107 502,592
Parker Hannifin Corp. 14,839 500,816
Brown-Forman Corp. "B" 9,094 497,896
Sabre Holdings Corp. 17,149 496,249
American Power Conversion Corp.+ 25,732 493,733
Citrix Systems Inc.+ 24,593 493,397
UST Inc. 21,550 492,956
Tektronix Inc. 6,400 491,600
Block (H & R) Inc. 13,034 483,073
NCR Corp.+ 12,603 476,551
Huntington Bancshares Inc. 32,413 476,066
Torchmark Corp. 16,983 472,340
Young & Rubicam Inc. 9,537 472,082
Toys R Us Inc.+ 28,703 466,424
Unisys Corp.+ 41,380 465,525
Sherwin-Williams Co. 21,746 464,821
SAFECO Corp. 16,939 461,588
Genuine Parts Co. 23,494 447,854
Phelps Dodge Corp. 10,459 436,663
Cooper Industries Inc. 12,339 434,950
Novell Inc.+ 43,651 433,782
Dana Corp. 20,037 430,795
Harrah's Entertainment Inc.+ 15,648 430,320
Healthsouth Corp.+ 51,296 416,780
Leggett & Platt Inc. 26,086 412,485
Placer Dome Inc. 43,587 411,352
Willamette Industries Inc. 14,681 411,068
Penney (J.C.) Company Inc. 34,668 409,516
Mallinckrodt Group Inc. 8,889 405,561
Compuware Corp.+ 47,871 400,920
Parametric Technology Corp.+ 36,629 400,630
Donnelley (R.R.) & Sons Co. 16,193 397,741
CMS Energy Corp. 14,578 392,695
Inco Ltd.+ 24,168 389,709
AutoZone Inc.+ 17,133 388,705
Kmart Corp.+ 63,884 383,304
Black & Decker Corp. 11,202 382,968
Newmont Mining Corp. 22,332 $ 379,644
ITT Industries Inc. 11,666 378,416
PACCAR Inc. 10,184 377,445
Eastman Chemical Co. 10,184 376,172
Goodyear Tire & Rubber Co. 20,759 373,662
VF Corp. 15,133 373,596
Whirlpool Corp. 9,582 372,500
Rowan Companies Inc.+ 12,472 361,688
Sigma-Aldrich Corp. 10,868 358,644
Westvaco Corp. 13,301 354,970
Darden Restaurants Inc. 16,493 343,261
Niagara Mohawk Holdings Inc.+ 21,622 340,547
Nucor Corp. 10,942 329,628
Conseco Inc. 43,226 329,598
Pall Corp. 16,456 328,092
Grainger (W.W.) Inc. 12,457 327,775
Maytag Corp. 10,416 323,547
Office Depot Inc.+ 41,237 322,164
Mead Corp. 13,684 319,864
Sunoco Inc. 11,752 316,570
Ashland Inc. 9,349 314,944
Coors (Adolph) Company "B" 4,855 306,775
Fluor Corp. 10,162 304,860
Wendy's International Inc. 15,159 304,127
Millipore Corp. 6,091 295,033
Bard (C.R.) Inc. 6,685 282,441
Andrew Corp.+ 10,704 280,311
Liz Claiborne Inc. 7,204 277,354
Engelhard Corp. 16,989 276,071
Winn-Dixie Stores Inc. 19,096 274,505
Nordstrom Inc. 17,631 274,382
Bausch & Lomb Inc. 7,023 273,458
FMC Corp.+ 4,045 271,268
US Airways Group Inc.+ 8,873 270,072
Adaptec Inc.+ 13,431 268,620
Stanley Works (The) 11,639 268,424
Super Value Inc. 17,483 263,338
Temple-Inland Inc. 6,929 262,436
Hasbro Inc. 22,878 261,667
Visteon Corp. 17,285 261,436
Centex Corp. 7,915 254,269
Pactiv Corp.+ 22,568 252,480
International Flavors & Fragrances Inc. 13,522 246,776
Quintiles Transnational Corp.+ 15,309 243,987
Navistar International Corp.+ 8,040 240,698
Humana Inc.+ 22,376 240,542
--------------------------------------------------------------------------------
page 18 iShares
<PAGE>
iShares S&P 500 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------------
Allied Waste Industries Inc.+ 25,251 $ 231,994
Eastern Enterprises 3,620 231,001
Bemis Co. 7,100 228,088
NICOR Inc. 6,205 224,543
Manor Care Inc.+ 13,652 214,166
Alberto-Culver Co. "B" 7,424 213,904
Brunswick Corp. 11,687 213,288
Great Lakes Chemical Corp. 7,150 209,584
Hercules Inc. 14,304 202,044
Boise Cascade Corp. 7,590 201,609
Allegheny Technologies Inc. 11,065 200,553
Consolidated Stores Corp.+ 14,791 199,678
Meredith Corp. 6,707 197,857
Autodesk Inc. 7,767 197,088
Deluxe Corp. 9,635 195,711
Freeport-McMoRan Copper & Gold Inc.+ 20,961 184,719
Crane Co. 8,064 184,464
Snap-On Inc. 7,820 184,259
Crown Cork & Seal Co. Inc. 16,990 181,581
Pulte Corp. 5,495 181,335
Owens-Illinois Inc.+ 19,573 181,050
Homestake Mining Company 34,559 179,275
USX-U.S. Steel Group Inc. 11,737 178,256
Kaufman & Broad Home Corp. 6,440 173,477
Cummins Engine Company Inc. 5,520 165,255
Peoples Energy Corp. 4,714 157,330
ONEOK Inc. 3,935 156,416
American Greetings Corp. "A" 8,637 151,147
Ryder System Inc. 7,947 146,523
Reebok International Ltd.+ 7,540 141,846
Tupperware Corp. 7,725 139,050
Thomas & Betts Corp. 7,725 134,705
Dillards Inc. "A" 12,433 132,101
Louisiana-Pacific Corp. 13,913 127,826
Ball Corp. 3,935 124,690
Potlatch Corp. 3,830 121,124
Briggs & Stratton Corp. 2,990 113,059
Timken Co. 8,167 111,786
Worthington Industries Inc. 11,603 108,778
National Service Industries Inc. 5,425 106,127
Longs Drug Stores Inc. 5,290 101,171
Cooper Tire & Rubber Co. 9,773 98,341
McDermott International Inc. 8,077 88,847
---------------------------------------------------------------------
Shares or
Security Principal Value
---------------------------------------------------------------------
Polaroid Corp. 5,980 80,356
Russell Corp. 4,370 69,374
Springs Industries Inc. "A" 2,330 65,677
Armstrong Holdings Inc. 5,342 63,770
Grace (W.R.) & Company+ 9,096 62,535
Bethlehem Steel Corp.+ 17,837 53,511
Owens Corning 7,362 19,325
--------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $1,691,380,585) 1,666,566,562
--------------------------------------------------------------------
SHORT TERM INSTRUMENTS - 1.63%
--------------------------------------------------------------------
Freddie Mac Discount Note
6.46%, 10/24/00++ $1,744,635 1,744,635
Goldman Sachs Financial Square Prime
Obligation Fund++ 3,097,340 3,097,340
Providian Temp Cash Money Market Fund++ 4,599,762 4,599,762
Short Term Investment Company Liquid
Assets Portfolio++ 17,769,020 17,769,020
--------------------------------------------------------------------
TOTAL SHORT TERM INSTRUMENTS
(Cost: $27,210,757) 27,210,757
--------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.04%
--------------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$596,920 and an effective yield of
6.25%. 596,609 596,609
--------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $596,609) 596,609
--------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 101.56%
(Cost $1,719,187,951) 1,694,373,928
--------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.56%) (25,950,704)
--------------------------------------------------------------------
NET ASSETS -- 100.00% $1,668,423,224
====================================================================
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending
transactions. See Note 5.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Schedules of Investments page 19
<PAGE>
iShares S&P 500/BARRA Growth Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------------------------
COMMON STOCKS - 99.94%
--------------------------------------------------------------------------------
General Electric Co. 119,605 $ 6,899,713
Cisco Systems Inc.+ 85,667 4,733,102
Microsoft Corp.+ 63,553 3,829,068
Pfizer Inc. 76,249 3,426,439
Intel Corp. 81,078 3,374,872
Oracle Corp.+ 33,999 2,677,421
EMC Corporation+ 26,324 2,609,366
Wal-Mart Stores Inc. 53,944 2,596,055
International Business Machines Corp. 21,265 2,392,312
Sun Microsystems Inc.+ 19,162 2,237,164
Nortel Networks Corp. 36,030 2,146,037
Merck & Co. Inc. 27,784 2,068,172
Coca-Cola Co. 29,923 1,649,505
Johnson & Johnson 16,795 1,577,680
America Online Inc.+ 27,869 1,497,959
Home Depot Inc. 27,981 1,484,742
Bristol-Myers Squibb Co. 23,745 1,356,433
Time Warner Inc. 15,965 1,249,261
Lucent Technologies Inc. 40,240 1,229,835
Lilly (Eli) and Company 13,643 1,106,788
Viacom Inc. "B"+ 18,323 1,071,896
JDS Uniphase Corp.+ 11,300 1,069,969
Corning Inc. 3,552 1,054,944
Texas Instruments Inc. 20,881 985,322
Dell Computer Corp.+ 31,233 962,367
Qwest Communications International Inc.+ 19,987 960,625
American Home Products Corp. 15,751 890,916
Abbott Laboratories 18,730 890,846
Amgen Inc.+ 12,429 867,894
Schering-Plough Corp. 17,711 823,562
PepsiCo Inc. 17,453 802,838
Medtronic Inc. 14,478 750,141
Veritas Software Corp.+ 4,822 684,724
Broadcom Corp.+ 2,673 651,544
QUALCOMM Inc.+ 8,994 640,823
Yahoo! Inc.+ 6,598 600,418
Schwab (Charles) Corp. 16,570 588,235
Applied Materials Inc.+ 9,806 581,618
Siebel Systems Inc.+ 4,996 556,117
Automatic Data Processing Inc. 7,589 507,514
Network Appliance Inc.+ 3,741 476,510
Anheuser-Busch Companies Inc. 10,948 463,237
Walgreen Co. 12,192 462,534
Nextel Communications Inc. "A"+ 9,200 430,100
Gillette Co. 12,674 $ 391,310
Sprint Corp. (PCS Group)+ 11,113 389,650
Palm Inc.+ 6,760 357,858
Analog Devices Inc.+ 4,298 354,854
Xilinx Inc.+ 3,921 335,736
Colgate-Palmolive Co. 6,967 328,842
Micron Technology Inc.+ 6,763 311,098
PE Corp. (Biosystems Group) 2,517 293,231
Maxim Integrated Products Inc.+ 3,427 275,659
Agilent Technologies Inc.+ 5,487 268,520
Guidant Corp.+ 3,715 262,604
Linear Technology Corp. 3,773 244,302
Bestfoods 3,326 241,966
Paychex Inc. 4,526 237,615
Tellabs Inc.+ 4,975 237,556
Altera Corp.+ 4,824 230,346
Kohls Corp.+ 3,962 228,558
ADC Telecommunications Inc.+ 8,416 226,312
Adobe Systems Inc. 1,449 224,957
Providian Financial Corp. 1,724 218,948
Sara Lee Corp. 10,592 215,150
Gap Inc. 10,328 207,851
Comverse Technology Inc.+ 1,861 200,988
MedImmune Inc.+ 2,531 195,520
Sysco Corp. 4,040 187,103
Computer Associates International Inc. 7,164 180,443
Harley-Davidson Inc. 3,689 176,611
Omnicom Group Inc. 2,163 157,764
Best Buy Co. Inc.+ 2,478 157,663
Heinz (H.J.) Co. 4,218 156,330
Mercury Interactive Corp.+ 965 151,264
RadioShack Corp. 2,256 145,794
Allergan Inc. 1,581 133,496
Campbell Soup Co. 5,118 132,428
Quaker Oats Co. 1,599 126,521
Interpublic Group of Companies Inc. 3,685 125,520
General Mills Inc. 3,488 123,824
Scientific-Atlanta Inc. 1,943 123,623
ALZA Corp.+ 1,405 121,532
Kellogg Co. 4,905 118,640
Avon Products Inc. 2,902 118,619
Stilwell Financial Inc.+ 2,670 116,145
Conexant Systems Inc.+ 2,680 112,225
Biogen Inc.+ 1,809 110,349
LSI Logic Corp.+ 3,741 109,424
Wrigley (William Jr.) Co. 1,389 104,001
--------------------------------------------------------------------------------
page 20 iShares
<PAGE>
iShares S&P 500/BARRA Growth Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Shares or
Security Principal Value
-----------------------------------------------------------------
COMMON STOCKS (continued)
-----------------------------------------------------------------
USA Education Inc. 1,910 $ 92,038
Bed Bath & Beyond Inc.+ 3,434 83,757
IMS Health Inc. 3,598 74,658
Teradyne Inc.+ 2,097 73,395
Convergys Corp.+ 1,869 72,657
Dun & Bradstreet Corp. 1,974 67,980
Dow Jones & Co. Inc. 1,080 65,340
Avery Dennison Corp. 1,373 63,673
Sapient Corp.+ 1,434 58,346
Lexmark International Group Inc. "A"+ 1,537 57,637
Tricon Global Restaurants Inc.+ 1,791 54,849
Equifax Inc. 1,726 46,494
Sealed Air Corp.+ 1,017 46,019
UST Inc. 1,986 45,430
American Power Conversion Corp.+ 2,366 45,398
Citrix Systems Inc.+ 2,216 44,458
Young & Rubicam Inc. 883 43,709
Millipore Corp. 564 27,319
US Airways Group Inc.+ 813 24,746
Freeport-McMoRan Copper & Gold Inc.+ 1,933 17,035
Tupperware Corp. 673 12,114
Owens Corning 584 1,533
-----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $77,185,060) 78,503,953
-----------------------------------------------------------------
SHORT TERM INSTRUMENTS - 3.09%
-----------------------------------------------------------------
Freddie Mac Discount Note
6.46%, 10/24/00++ $ 334,343 334,343
Goldman Sachs Financial Square Prime
Obligation Fund++ 564,432 564,432
Providian Temp Cash Money Market Fund++ 410,695 410,695
Short Term Investment Company Liquid
Assets Portfolio++ 1,120,081 1,120,081
-----------------------------------------------------------------
TOTAL SHORT TERM INSTRUMENTS
(Cost: $2,429,551) 2,429,551
-----------------------------------------------------------------
Security Principal Value
-----------------------------------------------------------------
REPURCHASE AGREEMENT - 0.04%
-----------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$30,253 and an effective yield of
6.25%. $ 30,237 $ 30,237
-----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $30,237) 30,237
-----------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 103.07%
(Cost $79,644,848) 80,963,741
-----------------------------------------------------------------
Other Assets, Less Liabilities -- (3.07%) (2,409,860)
-----------------------------------------------------------------
NET ASSETS -- 100.00% $78,553,881
=================================================================
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending
transactions. See Note 5.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Schedules of Investments Page 21
<PAGE>
iShares S&P 500/BARRA Value Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS - 99.93%
--------------------------------------------------------------
Exxon Mobil Corp. 33,997 $ 3,029,982
Citigroup Inc. 43,913 2,374,047
American International Group Inc. 22,584 2,161,007
SBC Communications Inc. 33,052 1,652,600
Verizon Communications 26,545 1,285,773
Royal Dutch Petroleum Co. 20,933 1,254,672
AT&T Corp. 36,674 1,077,299
Morgan Stanley Dean Witter & Co. 10,972 1,003,252
Hewlett-Packard Co. 9,742 944,974
Procter & Gamble Co. 12,754 854,518
Tyco International Ltd. 16,447 853,188
WorldCom Inc.+ 28,054 852,140
Bank of America Corp. 16,023 839,205
American Express Co. 13,005 790,054
Disney (Walt) Co. 20,357 778,655
Pharmacia & Upjohn Inc. 12,668 762,455
Wells Fargo & Company 16,078 738,583
BellSouth Corp. 18,281 735,810
Fannie Mae 9,825 702,487
Philip Morris Companies Inc. 21,965 646,595
Enron Corp. 7,217 632,390
Motorola Inc. 21,297 601,640
Chase Manhattan Corp. 12,770 589,814
Boeing Co. 8,748 551,124
Chevron Corp. 6,378 543,724
Merrill Lynch & Co. Inc. 7,835 517,110
Ford Motor Company+ 18,455 467,142
Compaq Computer Corp. 16,612 458,159
Schlumberger Ltd. 5,564 457,987
Bank One Corp. 11,267 435,188
Du Pont (E.I.) de Nemours 10,167 421,295
Bank of New York Co. Inc. 7,202 403,762
McDonald's Corp. 12,879 388,785
Freddie Mac 6,779 366,490
Comcast Corp. "A"+ 8,813 360,782
Minnesota Mining & Manufacturing Co. 3,857 351,469
Marsh & McLennan Companies Inc. 2,642 350,725
FleetBoston Financial Corp. 8,811 343,629
General Motors Corp. "A" 5,230 339,950
Clear Channel Communications Inc.+ 5,720 323,180
MBNA Corp. 8,329 320,666
United Technologies Corp. 4,564 316,057
First Union Corp. 9,610 309,322
Duke Energy Corp. 3,584 307,328
AES Corp.+ 4,451 $ 304,893
Kimberly-Clark Corp. 5,250 293,016
Texaco Inc. 5,383 282,608
Emerson Electric Co. 4,159 278,653
Honeywell International Inc. 7,807 278,124
Associates First Capital Corp. 7,119 270,522
Solectron Corp.+ 5,851 269,877
Unilever NV 5,565 268,511
Global Crossing Ltd.+ 8,589 266,259
Household International Inc. 4,608 260,928
Morgan (J.P.) & Co. Inc. 1,549 253,068
Sprint Corp. (FON Group) 8,629 252,938
Allstate Corp. 7,160 248,810
Fifth Third Bancorp 4,541 244,646
Seagram Co. Ltd. 4,254 244,339
Cardinal Health Inc. 2,709 238,900
Target Corporation 8,883 227,627
Baxter International Inc. 2,846 227,146
Safeway Inc.+ 4,850 226,434
Mellon Financial Corp. 4,782 221,765
Alcoa Inc. 8,461 214,169
Halliburton Co. 4,333 212,046
Firstar Corp. 9,351 209,229
Washington Mutual Inc. 5,253 209,135
Southern Co. 6,312 204,746
State Street Corp. 1,574 204,620
HCA - The Healthcare Company 5,439 201,923
Northern Trust Corp. 2,164 192,326
American General Corp. 2,456 191,568
Electronic Data Systems Corp. 4,545 188,617
PNC Bank Corp. 2,818 183,170
Williams Companies Inc. 4,308 182,013
Kroger Co.+ 8,059 181,831
CVS Corp. 3,813 176,590
Lehman Brothers Holdings Inc. 1,186 175,231
Lowe's Companies Inc. 3,737 167,698
US Bancorp Inc. 7,278 165,575
AFLAC Inc. 2,584 165,537
Dow Chemical Co. 6,618 165,036
Illinois Tool Works Inc. 2,952 164,943
Conoco Inc. 6,103 164,400
CIGNA Corp. 1,538 160,567
Alltel Corp. 3,075 160,477
Hartford Financial Services Group Inc. 2,192 159,879
Anadarko Petroleum Corp. 2,382 158,308
Phillips Petroleum Co. 2,486 155,997
--------------------------------------------------------------------------------
Page 22 iShares
<PAGE>
iShares S&P 500/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
Coastal Corp. 2,084 $ 154,477
First Data Corp. 3,951 154,336
UnitedHealth Group Inc. 1,559 153,951
Seagate Technology Inc.+ 2,230 153,870
Costco Wholesale Corp.+ 4,364 152,467
Gateway Inc.+ 3,154 147,449
SunTrust Banks Inc. 2,909 144,905
Carnival Corp. "A" 5,753 141,668
El Paso Energy Corp. 2,274 140,135
Lockheed Martin Corp. 4,197 138,333
Gannett Co. Inc. 2,596 137,588
Sanmina Corp.+ 1,468 137,442
International Paper Co. 4,705 134,975
Chubb Corp. 1,705 134,908
Dominion Resources Inc. 2,318 134,589
Reliant Energy Inc. 2,882 134,013
Capital One Financial Corp. 1,905 133,469
Tribune Co. 3,017 131,617
National City Corp. 5,915 130,869
FedEx Corp.+ 2,775 123,043
Eastman Kodak Co. 3,006 122,870
American Electric Power Inc. 3,134 122,618
Computer Sciences Corp.+ 1,650 122,512
General Dynamics Corp. 1,935 121,542
McGraw-Hill Companies Inc. 1,895 120,451
Transocean Sedco Forex Inc. 2,050 120,181
Baker Hughes Inc. 3,215 119,357
Southwest Airlines Co. 4,892 118,631
BB&T Corp. 3,902 117,548
FPL Group Inc. 1,733 113,945
Caterpillar Inc. 3,376 113,940
Wachovia Corp. 1,992 112,922
Tenet Healthcare Corp. 3,085 112,217
Sears, Roebuck and Co. 3,345 108,445
St. Paul Companies Inc. 2,197 108,340
KeyCorp 4,202 106,363
Waste Management Inc. 6,062 105,706
Nike Inc. "B" 2,632 105,445
Franklin Resources Inc. 2,373 105,432
ConAgra Inc. 5,198 104,285
Molex Inc. 1,913 104,139
TXU Corporation 2,568 101,757
PECO Energy Co. 1,653 100,110
Pitney Bowes Inc. 2,514 99,146
Paine Webber Group Inc. 1,441 $ 98,168
Xerox Corp. 6,500 97,906
AON Corp. 2,491 97,772
Unicom Corp. 1,711 96,137
Public Service Enterprise Group Inc. 2,108 94,201
Raytheon Co. "B" 3,310 94,128
Union Pacific Corp. 2,413 93,805
Dover Corp. 1,977 92,795
Limited Inc. 4,184 92,310
Xcel Energy Inc. 3,331 91,603
PG&E Corp. 3,756 90,848
Nabisco Group Holdings Corp. "A" 3,179 90,601
Clorox Co. 2,284 90,361
Lincoln National Corp. 1,866 89,801
Comerica Inc. 1,523 89,000
Weyerhaeuser Co. 2,147 86,685
Albertson's Inc. 4,108 86,268
USX-Marathon Group Inc. 3,038 86,203
McKesson HBOC Inc. 2,789 85,239
Marriott International Inc. 2,335 85,082
Burlington Northern Santa Fe Corp. 3,944 85,043
Unocal Corp. 2,368 83,916
Delphi Automotive Systems Corp. 5,497 83,142
Masco Corp. 4,446 82,807
Golden West Financial Corp. 1,540 82,583
Apple Computer Inc.+ 3,169 81,602
Entergy Corp. 2,172 80,907
Air Products & Chemicals Inc. 2,236 80,496
Loews Corp. 963 80,290
Aetna Inc. 1,371 79,604
Occidental Petroleum Corp. 3,591 78,329
Cendant Corp.+ 7,134 77,582
Burlington Resources Inc. 2,095 77,122
Deere & Co. 2,280 75,810
PeopleSoft Inc.+ 2,711 75,739
KLA-Tencor Corp.+ 1,809 74,508
Devon Energy Corp. 1,235 74,285
Starbucks Corp.+ 1,821 72,954
Constellation Energy Group Inc. 1,460 72,635
Hershey Foods Corp. 1,335 72,257
Apache Corp. 1,201 71,009
Advanced Micro Devices Inc.+ 2,996 70,780
Ralston Purina Co. 2,980 70,589
Consolidated Edison Inc. 2,067 70,536
National Semiconductor Corp.+ 1,716 69,069
Danaher Corp. 1,382 68,754
--------------------------------------------------------------------------------
iShares Schedules of Investments page 23
<PAGE>
iShares S&P 500/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
MBIA Inc. 962 $ 68,422
Jefferson-Pilot Corp. 1,005 68,214
PPG Industries Inc. 1,695 67,270
Bear Stearns Companies Inc. 1,050 66,150
Coca-Cola Enterprises Inc. 4,110 65,503
Boston Scientific Corp.+ 3,971 65,273
New York Times Co. "A" 1,655 65,062
Becton Dickinson & Co. 2,457 64,957
Textron Inc. 1,405 64,806
CP&L Energy Inc. 1,554 64,782
Watson Pharmaceutical Inc.+ 994 64,486
TJX Companies Inc. 2,856 64,260
UNUMProvident Corp. 2,349 64,010
Northrop Grumman Corp. 702 63,794
May Department Stores Co. 3,102 63,591
Staples Inc.+ 4,443 63,035
MGIC Investment Corp. 1,030 62,959
Rohm & Haas Co. "A" 2,122 61,671
Alcan Aluminium Ltd. 2,131 61,666
Edison International 3,186 61,530
Fort James Corp. 2,009 61,400
FirstEnergy Corp. 2,254 60,717
Kerr-McGee Corp. 916 60,685
Biomet Inc. 1,730 60,550
Newell Rubbermaid Inc. 2,599 59,290
Novellus Systems Inc.+ 1,273 59,274
Summit Bancorp 1,714 59,133
PP&L Resources Inc. 1,414 59,035
Barrick Gold Corp. 3,871 59,033
Amerada Hess Corp. 880 58,905
Synovus Financial Corp. 2,755 58,372
Wellpoint Health Networks Inc.+ 606 58,176
Progressive Corporation 709 58,049
Praxair Inc. 1,537 57,445
Ameren Corp. 1,336 55,945
Cincinnati Financial Corp. 1,570 55,735
Columbia Energy Group 784 55,664
Price (T. Rowe) Associates 1,172 55,011
Norfolk Southern Corp. 3,747 54,800
Tiffany & Co. 1,410 54,373
Rockwell International Corp. 1,790 54,148
Dollar General Corp. 3,209 53,751
Ingersoll-Rand Co. 1,577 53,421
Archer-Daniels-Midland Co. 6,178 53,284
DTE Energy Co. 1,391 $ 53,206
Federated Department Stores Inc.+ 2,036 53,191
Delta Air Lines Inc. 1,195 53,028
KeySpan Corp. 1,305 52,363
Cabletron Systems Inc.+ 1,780 52,287
SouthTrust Corp. 1,634 51,369
Cinergy Corp. 1,542 50,982
Florida Progress Corp. 956 50,608
Charter One Financial Inc. 2,049 49,938
TRW Inc. 1,228 49,888
PerkinElmer Inc. 475 49,578
Union Carbide Corp. 1,312 49,528
Regions Financial Corp. 2,140 48,551
AMR Corp.+ 1,469 48,018
Mattel Inc. 4,164 46,585
CSX Corp. 2,130 46,461
Amsouth Bancorp 3,682 46,025
BMC Software Inc.+ 2,402 45,938
Ecolab Inc. 1,267 45,691
Circuit City Stores Inc. 1,980 45,540
CIT Group Inc. (The) 2,565 44,887
Tosco Corp. 1,429 44,567
Johnson Controls Inc. 830 44,146
Union Planters Corp. 1,323 43,742
Eaton Corp. 707 43,569
Thermo Electron Corp.+ 1,672 43,472
Harcourt General Inc. 718 42,362
Pinnacle West Capital Corp. 815 41,463
Countrywide Credit Industries Inc. 1,098 41,449
St. Jude Medical Inc.+ 811 41,361
Hilton Hotels Corp. 3,559 41,151
Sempra Energy 1,974 41,084
Fortune Brands Inc. 1,544 40,916
Ceridian Corp.+ 1,418 39,793
Goodrich (B.F.) Co. 1,007 39,462
Georgia-Pacific Corp. 1,666 39,151
Vulcan Materials Co. 973 39,102
Old Kent Financial Corp. 1,342 38,834
GPU Inc. 1,183 38,374
Knight Ridder Inc. 735 37,347
CenturyTel Inc. 1,362 37,114
Parker Hannifin Corp. 1,083 36,551
Tektronix Inc. 475 36,486
Sabre Holdings Corp. 1,259 36,432
Brown-Forman Corp. "B" 664 36,354
Huntington Bancshares Inc. 2,457 36,087
--------------------------------------------------------------------------------
page 24 iShares
<PAGE>
iShares S&P 500/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
Block (H & R) Inc. 948 $ 35,135
NCR Corp.+ 929 35,128
Torchmark Corp. 1,252 34,821
Toys R Us Inc.+ 2,127 34,564
Unisys Corp.+ 3,057 34,391
Sherwin-Williams Co. 1,598 34,157
SAFECO Corp. 1,247 33,981
Genuine Parts Co. 1,722 32,826
Cooper Industries Inc. 909 32,042
Phelps Dodge Corp. 766 31,981
Dana Corp. 1,486 31,949
Novell Inc.+ 3,182 31,621
Harrah's Entertainment Inc.+ 1,136 31,240
Placer Dome Inc. 3,283 30,983
Leggett & Platt Inc. 1,919 30,344
Healthsouth Corp.+ 3,701 30,071
Willamette Industries Inc. 1,070 29,960
Compuware Corp.+ 3,572 29,916
Penney (J.C.) Company Inc. 2,531 29,897
Mallinckrodt Group Inc. 651 29,702
Donnelley (R.R.) & Sons Co. 1,193 29,303
Parametric Technology Corp.+ 2,661 29,105
CMS Energy Corp. 1,076 28,985
Inco Ltd.+ 1,790 28,864
ITT Industries Inc. 874 28,350
AutoZone Inc.+ 1,248 28,314
Kmart Corp.+ 4,687 28,122
Newmont Mining Corp. 1,628 27,676
Eastman Chemical Co. 747 27,592
VF Corp. 1,117 27,576
PACCAR Inc. 744 27,575
Black & Decker Corp. 802 27,418
Goodyear Tire & Rubber Co. 1,514 27,252
Rowan Companies Inc.+ 931 26,999
Whirlpool Corp. 685 26,629
Sigma-Aldrich Corp. 794 26,202
Westvaco Corp. 967 25,807
Darden Restaurants Inc. 1,200 24,975
Niagara Mohawk Holdings Inc.+ 1,569 24,712
Grainger (W.W.) Inc. 931 24,497
Conseco Inc. 3,182 24,263
Office Depot Inc.+ 3,082 24,078
Nucor Corp. 792 23,859
Pall Corp. 1,184 23,606
Maytag Corp. 757 $ 23,514
Sunoco Inc. 868 23,382
Mead Corp. 987 23,071
Ashland Inc. 683 23,009
Coors (Adolph) Company "B" 361 22,811
Fluor Corp. 760 22,800
Wendy's International Inc. 1,106 22,189
Bausch & Lomb Inc. 532 20,715
Engelhard Corp. 1,273 20,686
Bard (C.R.) Inc. 488 20,618
FMC Corp.+ 304 20,387
Andrew Corp.+ 777 20,348
Stanley Works (The) 878 20,249
Liz Claiborne Inc. 522 20,097
Super Value Inc. 1,326 19,973
Nordstrom Inc. 1,279 19,904
Winn-Dixie Stores Inc. 1,383 19,881
Adaptec Inc.+ 978 19,560
Visteon Corp. 1,290 19,511
Temple-Inland Inc. 513 19,430
Hasbro Inc. 1,688 19,307
Pactiv Corp.+ 1,704 19,064
Centex Corp. 589 18,922
Quintiles Transnational Corp.+ 1,144 18,233
Allied Waste Industries Inc.+ 1,900 17,456
International Flavors & Fragrances Inc. 955 17,429
Navistar International Corp.+ 576 17,244
Bemis Co. 532 17,090
Humana Inc.+ 1,581 16,996
Eastern Enterprises 266 16,974
NICOR Inc. 445 16,103
Manor Care Inc.+ 1,026 16,095
Alberto-Culver Co. "B" 551 15,876
Brunswick Corp. 853 15,567
Great Lakes Chemical Corp. 528 15,477
Allegheny Technologies Inc. 851 15,424
Meredith Corp. 515 15,192
Boise Cascade Corp. 570 15,141
Consolidated Stores Corp.+ 1,121 15,133
Hercules Inc. 1,014 14,323
Deluxe Corp. 691 14,036
Autodesk Inc. 547 13,880
Snap-On Inc. 589 13,878
Homestake Mining Company 2,662 13,809
Pulte Corp. 416 13,728
Crane Co. 593 13,565
--------------------------------------------------------------------------------
iShares Schedules of Investments page 25
<PAGE>
iShares S&P 500/BARRA Value Index Fund
Schedule Of Investments (continued)
September 30, 2000 (Unaudited)
Shares Or
Security Principal Value
----------------------------------------------------------------
COMMON STOCKS (continued)
----------------------------------------------------------------
USX-U.S. Steel Group Inc. 893 $ 13,562
Crown Cork & Seal Co. Inc. 1,237 13,220
Owens-Illinois Inc.+ 1,388 12,839
Kaufman & Broad Home Corp. 475 12,795
Cummins Engine Company Inc. 418 12,514
Peoples Energy Corp. 361 12,048
American Greetings Corp. "A" 646 11,305
ONEOK Inc. 274 10,892
Ryder System Inc. 589 10,860
Reebok International Ltd.+ 555 10,441
Thomas & Betts Corp. 589 10,271
Dillards Inc. "A" 935 9,934
Louisiana-Pacific Corp. 1,064 9,776
Ball Corp. 304 9,633
Potlatch Corp. 285 9,013
Briggs & Stratton Corp. 228 8,621
Worthington Industries Inc. 893 8,372
National Service Industries Inc. 418 8,177
Timken Co. 572 7,829
Cooper Tire & Rubber Co. 760 7,648
Longs Drug Stores Inc. 399 7,631
McDermott International Inc. 589 6,479
Polaroid Corp. 456 6,128
Russell Corp. 323 5,128
Springs Industries Inc. "A" 171 4,820
Armstrong Holdings Inc. 399 4,763
Grace (W.R.) & Company+ 642 4,414
Bethlehem Steel Corp.+ 1,311 3,932
----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $57,785,503) 59,772,234
----------------------------------------------------------------
REPURCHASE AGREEMENT - 0.05%
----------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$29,678 and an effective yield of
6.25%. $29,663 29,663
----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $29,663) 29,663
----------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 99.98%
(Cost $57,815,166) $59,801,897
----------------------------------------------------------------
Other Assets, Less Liabilities -- 0.02% 12,995
----------------------------------------------------------------
NET ASSETS -- 100.00% $59,814,892
================================================================
+ Non-income earning securities.
See notes to financial statements.
--------------------------------------------------------------------------------
page 26 iShares
<PAGE>
iShares S&P MidCap 400 Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
------------------------------------------------------------------
COMMON STOCKS - 99.92%
------------------------------------------------------------------
Dynegy Inc. 80,966 $ 4,615,062
Vitesse Semiconductor Corp.+ 46,909 4,171,969
Calpine Corp.+ 36,014 3,758,961
Millennium Pharmaceuticals Inc.+ 24,503 3,578,969
Rational Software Corp.+ 48,745 3,381,684
Intuit Inc.+ 53,135 3,028,695
Waters Corp.+ 33,394 2,972,066
Jabil Circuit Inc.+ 49,618 2,815,821
Forest Laboratories Inc. "A"+ 22,786 2,613,269
Integrated Device Technology Inc.+ 27,187 2,460,423
Sepracor Inc.+ 19,116 2,345,294
Stryker Corp. 51,035 2,191,315
Chiron Corp.+ 47,731 2,147,895
QLogic Corp.+ 23,437 2,062,456
IDEC Pharmaceuticals Corp.+ 11,714 2,054,160
Univision Communications Inc.+ 53,820 2,011,523
Nabors Industries Inc.+ 38,143 1,998,693
Concord EFS Inc.+ 55,554 1,973,035
Fiserv Inc.+ 32,183 1,926,957
DST Systems Inc.+ 16,385 1,925,237
IVAX Corporation+ 41,426 1,905,596
Cintas Corp. 43,734 1,905,162
Atmel Corp.+ 120,423 1,828,924
3Com Corp.+ 92,323 1,771,448
Noble Drilling Corp.+ 34,834 1,750,409
Telephone & Data Systems Inc. 15,668 1,734,448
Electronic Arts Inc.+ 33,933 1,675,442
Cadence Design Systems Inc.+ 64,321 1,652,246
Robert Half International Inc.+ 46,688 1,619,490
CDW Computer Centers Inc.+ 22,832 1,575,408
SCI Systems Inc.+ 37,831 1,551,071
Genzyme General Division+ 22,543 1,537,151
Minimed Inc.+ 16,726 1,494,886
SunGard Data Systems Inc.+ 34,458 1,475,233
Micrel Inc.+ 21,980 1,472,660
Broadwing Inc.+ 56,336 1,440,089
Global Marine Inc.+ 45,824 1,414,816
ENSCO International Inc. 36,091 1,380,481
NVIDIA Corp.+ 16,823 1,377,383
Quest Diagnostics Inc.+ 11,929 1,368,853
Marshall & Ilsley Corp. 27,154 1,361,094
Transwitch Corp.+ 21,343 1,360,616
Gilead Sciences Inc.+ 12,203 1,338,517
Ambac Financial Group Inc. 18,242 1,336,226
BJ Services Co.+ 21,694 $ 1,326,046
Health Management Associates Inc. "A"+ 63,413 1,319,783
Cypress Semiconductor Corp.+ 31,499 1,309,177
Washington Post Company (The) "B" 2,463 1,300,156
Symbol Technologies Inc. 35,844 1,288,144
E*trade Group Inc.+ 78,342 1,287,747
Polycom Inc.+ 18,524 1,240,529
Kinder Morgan Inc. 29,856 1,222,230
Weatherford International Inc.+ 28,352 1,219,136
Park Place Entertainment Corp.+ 78,425 1,186,178
SPX Corp.+ 8,264 1,172,972
Zions Bancorp 22,689 1,160,330
Dollar Tree Stores Inc.+ 28,049 1,137,738
Edwards (A.G.) Inc. 21,502 1,124,823
Vishay Intertechnology Inc.+ 36,058 1,108,784
Macromedia Inc.+ 13,643 1,102,525
Allegheny Energy Inc. 28,844 1,101,480
Smith International Inc.+ 13,157 1,073,118
National Commerce Bancorp 53,061 1,057,904
DPL Inc. 34,547 1,027,773
Microchip Technology Inc.+ 31,014 1,025,400
Cooper Cameron Corp.+ 13,848 1,020,425
North Fork Bancorp 45,440 982,640
SEI Investment Co. 13,886 982,435
Readers Digest Association Inc. (The)
"A" 27,485 970,564
TECO Energy Inc. 32,789 942,684
Legg Mason Inc. 15,924 925,583
Montana Power Co. 27,616 921,684
Wind River Systems Inc.+ 18,902 906,115
Allmerica Financial Corp. 13,854 885,790
Mylan Laboratories Inc. 32,571 877,381
Arrow Electronics Inc.+ 25,587 871,557
Family Dollar Stores Inc. 44,757 861,572
R.J. Reynolds Tobacco Holdings Inc. 26,657 859,688
SCANA Corp. 27,380 845,358
First Security Corp. 51,645 842,459
Northeast Utilities 38,825 842,017
LG&E Energy Corp. 33,912 828,725
Jones Apparel Group Inc.+ 31,003 821,579
CheckFree Corp.+ 19,541 818,585
Network Associates Inc.+ 36,020 814,953
American Standard Companies Inc.+ 18,267 811,740
International Rectifier Corp.+ 16,037 810,871
Hispanic Broadcasting Corp.+ 28,400 791,650
TCF Financial Corp. 20,994 789,899
Greenpoint Financial Corp. 26,652 789,566
--------------------------------------------------------------------------------
iShares Schedules of Investments page 27
<PAGE>
iShares S&P MidCap 400 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
------------------------------------------------------------------
COMMON STOCKS (Continued)
------------------------------------------------------------------
Apollo Group Inc.+ 19,628 $ 782,667
PMI Group Inc. (The) 11,545 782,174
NiSource Inc. 31,694 772,541
Energy East Corp. 34,139 772,395
Murphy Oil Corp. 11,770 762,843
Comdisco Inc. 39,794 758,573
Chris-Craft Industries Inc.+ 9,125 751,672
Potomac Electric Power Co. 29,656 746,961
TriQuint Semiconductor Inc.+ 20,429 744,382
Old Republic International Corp. 30,632 737,083
Semtech Corp.+ 17,042 734,936
Acxiom Corp.+ 23,070 732,472
Hillenbrand Industries Inc. 16,342 731,304
Express Scripts Inc. "A"+ 9,919 716,648
Synopsys Inc.+ 18,663 706,861
American Water Works Inc. 25,641 706,730
Symantec Corp.+ 15,952 701,888
Cirrus Logic Inc.+ 17,233 694,705
Lattice Semiconductor Corp.+ 12,906 693,698
First Tennessee National Corp. 33,913 693,097
ICN Pharmaceuticals Inc. 20,728 689,206
Incyte Pharmaceuticals Inc.+ 16,720 687,610
DeVry Inc.+ 18,159 683,232
Avnet Inc. 23,870 677,311
Banknorth Group Inc. 37,801 675,693
Ocean Energy Inc.+ 43,635 673,615
Oxford Health Plans Inc.+ 21,895 672,929
Southdown Inc. 9,370 667,613
Mercantile Bankshares Corp. 18,356 666,265
Waddell & Reed Financial Inc. "A" 21,474 665,694
Tidewater Inc. 14,538 661,479
Miller (Herman) Inc. 20,572 659,590
Sybron International Corp.+ 27,449 658,776
BJ's Wholesale Club Inc.+ 19,103 651,890
Viad Corp. 24,503 650,861
Affiliated Computer Services Inc.+ 12,923 644,535
International Game Technology Inc.+ 18,946 637,059
Wisconsin Energy Corp. 31,870 635,408
Manpower Inc. 19,817 632,906
Utilicorp United Inc. 24,226 626,848
Westwood One Inc.+ 29,217 626,339
CH Robinson Worldwide Inc. 11,048 622,658
Grant Prideco Inc.+ 28,308 621,007
DQE Inc. 15,453 620,052
Avocent Corporation+ 11,231 $ 619,109
Compass Bancshares Inc. 31,614 616,473
Dime Bancorp Inc. 28,547 615,545
MarchFirst Inc.+ 39,200 614,950
Shaw Industries Inc. 33,114 612,609
Energizer Holdings Inc.+ 24,978 611,961
Powerwave Technologies Inc.+ 16,092 610,993
Hormel Foods Corp. 36,602 610,796
Bowater Inc. 13,108 608,703
Alliant Energy Corp. 20,615 605,566
MCN Energy Group Inc. 23,589 604,468
Beckman Coulter Inc. 7,725 595,791
Tech Data Corp.+ 13,872 593,028
Everest Re Group Ltd. 11,978 592,905
Tyson Foods Inc. "A" 58,871 588,710
Quantum DLT & Storage Group+ 38,953 586,730
Questar Corp. 20,905 581,420
Ultramar Diamond Shamrock Corp. 22,730 576,774
National Fuel Gas Co. 10,264 575,426
Fastenal Co. 9,900 570,488
NSTAR 14,095 567,324
Belo (A.H.) Corp. 30,725 566,492
Puget Sound Energy Inc. 22,300 565,863
Valero Energy Corp. 16,065 565,287
Unitrin Inc. 17,832 565,052
Georgia-Pacific (Timber Group) 20,858 560,559
Outback Steakhouse Inc.+ 20,344 551,831
Cabot Corp. 17,335 549,303
Sovereign Bancorp Inc. 59,081 546,499
International Speedway Corp. "A" 13,883 541,437
Noble Affiliates Inc. 14,575 541,097
Sybase Inc.+ 23,228 534,244
McCormick & Co. Inc. 17,883 532,019
Foundation Health Systems Inc.+ 31,941 531,019
FirstMerit Corp. 23,098 529,810
Litton Industries Inc.+ 11,814 527,938
Mandalay Resort Group Inc.+ 20,384 522,340
Infocus Corp.+ 9,855 522,315
GATX Corporation 12,417 519,962
Trigon Healthcare Inc.+ 9,836 517,005
First Virginia Banks Inc. 12,067 514,356
Harris Corp. 18,079 514,122
Brinker International Inc.+ 17,051 513,661
Astoria Financial Corp. 13,280 512,940
IPALCO Enterprises Inc. 22,394 512,263
Hibernia Corp. "A" 41,567 509,196
--------------------------------------------------------------------------------
page 28 iShares
<PAGE>
iShares S&P MidCap 400 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
------------------------------------------------------------------
COMMON STOCKS (continued)
------------------------------------------------------------------
Flowers Industries Inc. 26,089 $ 508,735
Varco International Inc.+ 24,275 505,223
IBP Inc. 27,579 505,040
Protective Life Corp. 16,873 504,081
Williams-Sonoma Inc.+ 14,501 503,910
Hanover Compressor Co.+ 15,294 503,746
Abercrombie & Fitch Co.+ 26,341 502,125
Precision Castparts Corp. 12,928 496,112
Diebold Inc. 18,608 494,275
L-3 Communications Holdings Inc.+ 8,696 491,324
Harte-Hanks Inc. 17,707 482,516
City National Corp. 12,459 481,229
MONY Group Inc. 12,062 480,972
Lennar Corp. 16,095 477,820
Dentsply International Inc. 13,520 472,355
Helmerich & Payne Inc. 13,034 470,853
Associated Bancorp 17,914 470,243
Sonoco Products Co. 26,006 469,733
Martin Marietta Materials Inc. 12,224 467,935
Quanta Services Inc.+ 16,797 461,918
IDACorp Inc. 9,827 454,499
Wilmington Trust Corp. 8,435 452,327
United Rentals Inc.+ 18,360 442,935
IMC Global Inc. 29,987 434,811
OGE Energy Corp. 20,336 433,411
Kansas City Power & Light Co. 16,153 431,083
ADTRAN Inc.+ 10,110 430,149
ALLETE 19,393 429,070
Sawtek Inc.+ 11,112 427,986
VISX Inc.+ 15,807 425,801
Atlas Air Inc.+ 9,958 420,725
Conectiv Inc. 23,217 415,004
Whitman Corp. 35,618 411,833
Bergen Brunswig Corp. "A" 35,196 411,353
First Health Group Corp.+ 12,660 408,285
Neiman-Marcus Group Inc. "A"+ 12,401 402,257
Credence Systems Corp.+ 13,339 400,170
Lincare Holdings Inc.+ 13,923 399,416
Reynolds & Reynolds Co. "A" 20,025 397,997
Hubbell Inc. "B" 15,842 397,040
CSG Systems International Inc.+ 13,680 396,720
Mentor Graphics Corp.+ 16,761 394,931
Western Resources Inc. 18,117 391,780
Omnicare Inc. 24,072 388,161
HON Industries Inc. 15,713 $ 386,933
American Eagle Outfitters Inc.+ 12,193 384,079
Sotheby's Holdings Inc. 15,385 382,702
Roslyn Bancorp Inc. 16,918 378,540
Provident Financial Group Inc. 12,734 374,061
Webster Financial Corp. 13,881 373,919
Sierra Pacific Resources Corp. 20,488 368,784
Suiza Foods Corp.+ 7,272 368,600
Pioneer Natural Resources Co.+ 25,927 367,839
Saks Inc.+ 36,911 364,496
Lyondell Chemical Co. 30,707 362,726
Galileo International Inc. 23,392 362,576
Clayton Homes Inc. 36,036 360,360
Greater Bay Bancorp 5,188 360,242
Storage Technology Corp.+ 26,531 359,827
ACNielsen Corp.+ 15,102 359,616
Lear Corp.+ 17,274 355,197
Pacific Century Financial Corp. 20,741 355,190
American Financial Group Inc. 15,290 354,537
Cytec Industries Inc.+ 10,591 354,137
Scholastic Corp.+ 4,429 352,382
Newport News Shipbuilding Inc. 7,974 345,872
Teleflex Inc. 9,984 343,200
Pentair Inc. 12,673 339,003
Edwards Lifesciences Corp.+ 15,260 332,859
Lee Enterprises Inc. 11,456 330,792
Barnes & Noble Inc.+ 16,763 330,022
Commscope Inc.+ 13,421 328,814
Carlisle Companies Inc. 7,921 328,721
Payless Shoesource Inc.+ 5,822 326,032
Washington Gas Light Co. 12,127 325,913
Investment Technology Group Inc.+ 8,129 324,652
Vectren Corporation 15,970 324,391
Six Flags Inc.+ 20,545 318,448
PacifiCare Health Systems Inc. "A"+ 9,119 317,455
Solutia Inc. 27,814 316,384
Keane Inc.+ 18,169 316,141
Valassis Communications Inc.+ 14,160 315,060
Westamerica Bancorp 9,409 314,613
Houghton Mifflin Co. 8,009 314,353
NOVA Corporation+ 18,301 313,405
Ross Stores Inc. 21,653 311,262
Dean Foods Co. 9,261 307,928
Informix Corp.+ 74,145 305,848
Legato Systems Inc.+ 22,698 305,004
HSB Group Inc. 7,601 304,990
--------------------------------------------------------------------------------
iShares Schedules of Investments page 29
<PAGE>
iShares S&P MidCap 400 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
------------------------------------------------------------------
COMMON STOCKS (continued)
------------------------------------------------------------------
Mohawk Industries Inc.+ 13,893 $ 303,041
Callaway Golf Co. 19,704 302,949
Sensormatic Electronics Corp.+ 20,108 301,620
Hawaiian Electric Industries Inc. 8,536 297,693
Blyth Industries Inc. 12,508 293,156
ANTEC Corp.+ 9,900 292,050
USG Corp. 11,606 290,875
Carter-Wallace Inc. 11,808 288,558
Dial Corp. 24,760 287,835
Borders Group Inc.+ 20,531 286,151
AGL Resources Inc. 14,137 283,624
CNF Transportation Inc. 12,674 281,996
Jacobs Engineering Group Inc.+ 6,844 275,899
Alexander & Baldwin Inc. 10,596 275,496
Keystone Financial Inc. 12,614 274,355
Cleco Corp. 5,856 273,768
Lubrizol Corp. 13,899 273,637
ArvinMeritor Inc. 18,509 271,851
AK Steel Holding Corp. 28,619 268,303
Public Service Company of New Mexico 10,321 267,056
DSP Group Inc.+ 7,000 261,625
Donaldson Co. Inc. 11,831 260,282
Universal Foods Corp. 12,752 259,822
Media General Inc. "A" 6,028 259,204
Valspar Corp. 11,130 255,879
Rayonier Inc. 7,093 254,905
Interstate Bakeries Corp. 17,261 252,442
Lancaster Colony Corp. 10,226 251,176
RPM Inc. 27,445 248,720
York International Corp. 9,920 246,760
Minerals Technologies Inc. 5,345 245,870
Gartner Group Inc. "B"+ 22,479 244,459
Quorum Health Group Inc.+ 18,656 242,528
Overseas Shipholding Group Inc. 8,856 242,433
Albemarle Corp. 12,003 242,311
Claire's Stores Inc. 13,428 241,704
Nordson Corp. 8,409 239,131
Federal Signal Corp. 11,867 235,857
Crompton Corp. 29,725 234,084
Trinity Industries Inc. 9,912 231,693
Titan Corp. (The)+ 14,020 231,330
Harsco Corp. 10,425 230,002
Borg-Warner Automotive Inc. 6,854 227,039
Kelly Services Inc. "A" 9,364 221,225
Dole Food Co. 14,631 $ 219,465
Universal Corporation 7,392 217,140
Swift Transportation Co. Inc.+ 16,567 216,406
Furniture Brands International Inc.+ 13,005 216,208
Pennzoil-Quaker State Co. 20,464 214,872
Modine Manufacturing Co. 7,625 214,811
CBRL Group Inc. 14,941 214,777
Steris Corp.+ 17,672 212,064
Pittston Brink's Group 13,566 210,273
Tecumseh Products Co. "A" 4,995 209,166
Kennametal Inc. 7,926 204,095
Superior Industries International Inc. 6,778 203,340
Bandag Inc. 5,428 195,069
Apria Healthcare Group Inc.+ 13,710 191,083
Olin Corp. 11,757 190,316
AGCO Corp. 15,512 184,205
Church & Dwight Co. Inc. 9,969 183,180
Kaydon Corp. 7,841 180,343
AMETEK Inc. 8,340 176,704
Ogden Corp.+ 12,922 175,255
Granite Construction Inc. 7,145 173,266
Horace Mann Educators Corp. 10,578 173,215
Imation Corp.+ 9,252 172,319
Ferro Corp. 9,025 172,039
Bob Evans Farms Inc. 9,233 170,810
Black Hills Corp. 6,004 168,487
Carpenter Technology Corp. 5,752 167,527
Ruddick Corp. 12,030 166,916
Lands' End Inc.+ 7,932 166,572
Alaska Air Group Inc.+ 6,924 166,176
Acuson Corp.+ 7,225 164,369
Longview Fibre Co. 13,450 161,400
Wallace Computer Services Inc. 10,505 160,201
Flowserve Corp. 9,746 160,200
Banta Corp. 6,534 159,266
Dreyer's Grand Ice Cream Inc. 7,371 158,937
Papa John's International Inc.+ 6,337 158,821
Westpoint Stevens Inc. 12,925 158,331
Structural Dynamics Research Corp.+ 9,433 154,465
Smucker (J.M) Company (The)+ 6,304 153,266
Unifi Inc.+ 14,903 151,824
GTECH Holdings Corp.+ 9,113 150,934
UCAR International Inc.+ 11,828 150,068
Sylvan Learning Systems Inc.+ 9,597 142,156
Transaction Systems Architects Inc. "A"+ 8,667 140,839
Wisconsin Central Transportation Corp.+ 12,879 136,034
--------------------------------------------------------------------------------
page 30 iShares
<PAGE>
iShares S&P MidCap 400 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
------------------------------------------------------------------
COMMON STOCKS (continued)
------------------------------------------------------------------
Glatfelter (P.H.) Co. 11,100 $ 134,588
Perrigo Co.+ 19,219 131,530
Modis Professional Services Inc.+ 25,262 131,047
Airborne Freight Corp. 12,753 129,921
Stewart & Stevenson Services Inc. 7,334 127,887
Mynd Corp.+ 9,208 124,308
Covance Inc.+ 15,013 122,919
Wellman Inc. 8,311 119,990
Airgas Inc.+ 17,361 118,272
Hunt (J.B.) Transport Services Inc. 9,204 117,351
Rollins Inc. 7,864 116,486
Finova Group Inc. 16,060 116,435
Sequa Corp. "A"+ 2,717 115,473
Standard Register Co. 7,168 114,688
Arnold Industries Inc. 6,437 108,624
Fuller (H. B.) Co. 3,695 106,231
OfficeMax Inc.+ 29,588 105,407
Wausau-Mosinee Paper Corp. 13,456 104,284
Federal-Mogul Corp. 18,471 100,436
Ohio Casualty Corp. 15,738 99,838
Albany International Corp.+ 8,024 96,288
Georgia Gulf Corp. 8,247 94,325
International Multifoods Corp. 4,905 85,224
Schulman (A.) Inc. 7,726 84,986
NCO Group Inc.+ 6,705 79,622
Chesapeake Corp. 4,012 77,231
Lance Inc. 7,581 73,678
Cambridge Technology Partners Inc.+ 16,520 72,275
PSS World Medical Inc.+ 18,619 67,494
Magnetek Inc.+ 6,095 64,759
Cleveland-Cliffs Inc. 2,761 63,158
Ryerson Tull Inc. 6,487 61,221
Sykes Enterprises Inc.+ 10,840 58,265
Warnaco Group Inc. "A" 13,754 55,016
Stewart Enterprises Inc. "A" 27,953 54,159
NCH Corp. 1,386 48,943
Lone Star Steakhouse & Saloon Inc. 6,630 48,896
Navigant Consulting Co.+ 10,598 36,431
MAXXAM Inc.+ 1,766 35,099
Ethyl Corp. 22,111 31,785
------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $242,967,816) 253,175,179
------------------------------------------------------------------
Security Principal Value
------------------------------------------------------------------
SHORT TERM INSTRUMENTS - 5.49%
------------------------------------------------------------------
Freddie Mac Discount Note
6.46%, 10/24/00++ $1,914,200 $ 1,914,200
Goldman Sachs Financial Square Prime
Obligation Fund++ 3,650,785 3,650,785
Providian Temp Cash Money Market Fund++ 2,351,328 2,351,328
Short Term Investment Company Liquid
Assets Portfolio++ 5,993,412 5,993,412
------------------------------------------------------------------
TOTAL SHORT TERM INSTRUMENTS
(Cost: $13,909,725) 13,909,725
------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.04%
------------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$103,563 and an effective yield of
6.25%. 103,509 103,509
------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $103,509) 103,509
------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 105.45%
(Cost $256,981,050) 267,188,413
------------------------------------------------------------------
Other Assets, Less Liabilities -- (5.45%) (13,799,405)
------------------------------------------------------------------
NET ASSETS -- 100.00% $253,389,008
==================================================================
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending
transactions. See Note 5.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Schedules of Investments page 31
<PAGE>
iShares S&P MidCap 400/BARRA Growth Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS - 100.00%
--------------------------------------------------------------
Dynegy Inc. 21,480 $ 1,224,359
Vitesse Semiconductor Corp.+ 12,424 1,104,960
Calpine Corp.+ 9,536 995,320
Millennium Pharmaceuticals Inc.+ 6,484 947,069
Rational Software Corp.+ 12,918 896,186
Intuit Inc.+ 14,091 803,187
Waters Corp.+ 8,840 786,760
Jabil Circuit Inc.+ 13,149 746,206
Forest Laboratories Inc. "A"+ 6,040 692,713
Integrated Device Technology Inc.+ 7,206 652,143
Sepracor Inc.+ 5,060 620,799
Stryker Corp. 13,521 580,558
Chiron Corp.+ 12,659 569,655
QLogic Corp.+ 6,216 547,008
IDEC Pharmaceuticals Corp.+ 3,101 543,789
Univision Communications Inc.+ 14,258 532,893
Nabors Industries Inc.+ 10,110 529,764
Concord EFS Inc.+ 14,716 522,648
Fiserv Inc.+ 8,526 510,494
IVAX Corporation+ 10,974 504,804
Cintas Corp. 11,584 504,628
Atmel Corp.+ 31,932 484,967
3Com Corp.+ 24,460 469,326
Noble Drilling Corp.+ 9,235 464,059
Electronic Arts Inc.+ 8,982 443,486
Cadence Design Systems Inc.+ 17,044 437,818
Robert Half International Inc.+ 12,374 429,223
CDW Computer Centers Inc.+ 6,044 417,036
SCI Systems Inc.+ 10,025 411,025
Genzyme General Division+ 5,969 407,011
Minimed Inc.+ 4,438 396,646
Micrel Inc.+ 5,826 390,342
Global Marine Inc.+ 12,139 374,792
ENSCO International Inc. 9,564 365,823
NVIDIA Corp.+ 4,456 364,835
Quest Diagnostics Inc.+ 3,161 362,725
Transwitch Corp.+ 5,632 359,040
Gilead Sciences Inc.+ 3,231 354,400
BJ Services Co.+ 5,744 351,102
Cypress Semiconductor Corp.+ 8,350 347,047
Symbol Technologies Inc. 9,500 341,406
Polycom Inc.+ 4,908 328,683
SPX Corp.+ 2,184 309,992
Dollar Tree Stores Inc.+ 7,421 301,014
Vishay Intertechnology Inc.+ 9,554 293,786
Macromedia Inc.+ 3,616 292,218
Smith International Inc.+ 3,499 $ 285,387
National Commerce Bancorp 14,059 280,301
DPL Inc. 9,145 272,064
Microchip Technology Inc.+ 8,192 270,831
Cooper Cameron Corp.+ 3,670 270,433
SEI Investment Co. 3,680 260,360
Readers Digest Association Inc. (The) "A" 7,285 257,252
Legg Mason Inc. 4,221 245,346
Montana Power Co. 7,305 243,804
Wind River Systems Inc.+ 5,010 240,167
Family Dollar Stores Inc. 11,894 228,959
CheckFree Corp.+ 5,176 216,826
Network Associates Inc.+ 9,540 215,842
American Standard Companies Inc.+ 4,840 215,077
International Rectifier Corp.+ 4,250 214,891
Hispanic Broadcasting Corp.+ 7,531 209,927
Apollo Group Inc.+ 5,200 207,350
TriQuint Semiconductor Inc.+ 5,386 196,252
Semtech Corp.+ 4,508 194,408
Acxiom Corp.+ 6,075 192,881
Synopsys Inc.+ 4,920 186,345
Cirrus Logic Inc.+ 4,585 184,833
Symantec Corp.+ 4,200 184,800
ICN Pharmaceuticals Inc. 5,530 183,872
Lattice Semiconductor Corp.+ 3,420 183,825
DeVry Inc.+ 4,831 181,766
Oxford Health Plans Inc.+ 5,766 177,214
Waddell & Reed Financial Inc. "A" 5,681 176,111
Sybron International Corp.+ 7,280 174,720
Miller (Herman) Inc. 5,445 174,580
BJ's Wholesale Club Inc.+ 5,065 172,843
International Game Technology Inc.+ 5,020 168,797
Manpower Inc. 5,246 167,544
Westwood One Inc.+ 7,790 166,998
CH Robinson Worldwide Inc. 2,926 164,908
Grant Prideco Inc. + 7,511 164,773
Avocent Corporation+ 2,974 163,942
Powerwave Technologies Inc.+ 4,270 162,127
Beckman Coulter Inc. 2,039 157,258
Fastenal Co. 2,624 151,208
Georgia-Pacific (Timber Group) 5,535 148,753
McCormick & Co. Inc. 4,735 140,866
Infocus Corp.+ 2,610 138,330
Williams-Sonoma Inc.+ 3,870 134,483
Varco International Inc.+ 6,416 133,533
Hanover Compressor Co.+ 4,030 132,738
Dentsply International Inc. 3,580 125,076
Quanta Services Inc.+ 4,480 123,200
--------------------------------------------------------------------------------
page 32 iShares
<PAGE>
iShares S&P MidCap 400/BARRA Growth Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
United Rentals Inc.+ 4,790 $ 115,559
ADTRAN Inc.+ 2,686 114,281
VISX Inc.+ 4,216 113,569
Sawtek Inc.+ 2,945 113,429
Atlas Air Inc.+ 2,616 110,526
Credence Systems Corp.+ 3,590 107,700
First Health Group Corp.+ 3,334 107,521
CSG Systems International Inc.+ 3,615 104,835
Mentor Graphics Corp.+ 4,435 104,500
Galileo International Inc. 6,265 97,107
Newport News Shipbuilding Inc. 2,095 90,871
Commscope Inc.+ 3,559 87,195
Investment Technology Group Inc.+ 2,155 86,065
Payless Shoesource Inc.+ 1,536 86,016
Solutia Inc. 7,456 84,812
Valassis Communications Inc.+ 3,790 84,328
Keane Inc.+ 4,841 84,233
Westamerica Bancorp 2,515 84,095
Ross Stores Inc. 5,796 83,318
NOVA Corporation+ 4,844 82,954
Informix Corp.+ 19,656 81,081
ANTEC Corp.+ 2,664 78,588
Blyth Industries Inc. 3,349 78,492
Dial Corp. 6,656 77,376
DSP Group Inc.+ 1,880 70,265
Donaldson Co. Inc. 3,135 68,970
Valspar Corp. 2,980 68,510
Gartner Group Inc. "B"+ 5,990 65,141
Nordson Corp. 2,262 64,326
Titan Corp. (The)+ 3,734 61,611
Apria Healthcare Group Inc.+ 3,640 50,732
Papa John's International Inc.+ 1,710 42,857
Dreyer's Grand Ice Cream Inc. 1,975 42,586
Westpoint Stevens Inc. 3,455 42,324
UCAR International Inc.+ 3,160 40,093
Rollins Inc. 2,145 31,773
Georgia Gulf Corp. 2,150 24,591
Sykes Enterprises Inc.+ 3,000 16,125
--------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $33,282,312) 36,505,901
--------------------------------------------------------------
Security Principal Value
----------------------------------------------------------------
REPURCHASE AGREEMENT - 0.04%
----------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$12,807 and an effective yield of
6.25%. $12,800 $ 12,800
----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $12,800) 12,800
----------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 100.04%
(Cost $33,295,112) 36,518,701
----------------------------------------------------------------
Other Assets, Less Liabilities -- (0.04%) (14,250)
----------------------------------------------------------------
NET ASSETS -- 100.00% $36,504,451
================================================================
+ Non-income earning securities.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Schedules of Investments page 33
<PAGE>
iShares S&P MidCap 400/BARRA Value Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS - 99.86%
---------------------------------------------------------------
DST Systems Inc.+ 2,785 $ 327,236
Telephone & Data Systems Inc. 2,665 295,016
SunGard Data Systems Inc.+ 5,840 250,025
Broadwing Inc.+ 9,565 244,505
Marshall & Ilsley Corp. 4,620 231,577
Ambac Financial Group Inc. 3,105 227,441
Health Management Associates Inc. "A"+ 10,760 223,943
Washington Post Company (The) "B" 420 221,708
E*trade Group Inc.+ 13,290 218,454
Kinder Morgan Inc. 5,085 208,167
Weatherford International Inc.+ 4,830 207,690
Park Place Entertainment Corp.+ 13,310 201,314
Zions Bancorp 3,850 196,891
Edwards (A.G.) Inc. 3,655 191,202
Allegheny Energy Inc. 4,890 186,737
North Fork Bancorp 7,740 167,377
TECO Energy Inc. 5,575 160,281
Allmerica Financial Corp. 2,345 149,933
Mylan Laboratories Inc. 5,525 148,830
Arrow Electronics Inc.+ 4,335 147,661
R.J. Reynolds Tobacco Holdings Inc. 4,515 145,609
Northeast Utilities 6,620 143,571
SCANA Corp. 4,630 142,951
First Security Corp. 8,760 142,898
LG&E Energy Corp. 5,730 140,027
Jones Apparel Group Inc.+ 5,281 139,946
TCF Financial Corp. 3,580 134,698
Greenpoint Financial Corp. 4,515 133,757
PMI Group Inc. (The) 1,950 132,113
Energy East Corp. 5,815 131,564
NiSource Inc. 5,360 130,650
Murphy Oil Corp. 1,990 128,977
Comdisco Inc. 6,730 128,291
Potomac Electric Power Co. 5,070 127,701
Chris-Craft Industries Inc.+ 1,545 127,269
Old Republic International Corp. 5,200 125,125
Hillenbrand Industries Inc. 2,775 124,181
Express Scripts Inc. "A"+ 1,680 121,380
American Water Works Inc. 4,360 120,173
First Tennessee National Corp. 5,745 117,413
Incyte Pharmaceuticals Inc.+ 2,830 116,384
Avnet Inc. 4,050 114,919
Banknorth Group Inc. 6,410 114,579
Ocean Energy Inc.+ 7,410 114,392
Southdown Inc. 1,590 113,288
Mercantile Bankshares Corp. 3,110 112,883
Tidewater Inc. 2,465 112,158
Viad Corp. 4,150 110,234
Affiliated Computer Services Inc.+ 2,190 $ 109,226
Wisconsin Energy Corp. 5,390 107,463
Utilicorp United Inc. 4,105 106,217
Dime Bancorp Inc. 4,895 105,548
DQE Inc. 2,625 105,328
Hormel Foods Corp. 6,275 104,714
Compass Bancshares Inc. 5,350 104,325
Bowater Inc. 2,245 104,252
MarchFirst Inc.+ 6,640 104,165
Shaw Industries Inc. 5,620 103,970
Energizer Holdings Inc.+ 4,240 103,880
Alliant Energy Corp. 3,490 102,519
MCN Energy Group Inc. 3,990 102,244
Tech Data Corp.+ 2,350 100,463
Everest Re Group Ltd. 2,025 100,237
Tyson Foods Inc. "A" 9,985 99,850
Quantum DLT & Storage Group+ 6,610 99,563
Questar Corp. 3,540 98,456
Ultramar Diamond Shamrock Corp. 3,875 98,328
National Fuel Gas Co. 1,735 97,268
NSTAR 2,410 97,002
Puget Sound Energy Inc. 3,790 96,171
Belo (A.H.) Corp. 5,215 96,152
Unitrin Inc. 3,020 95,696
Valero Energy Corp. 2,715 95,534
Cabot Corp. 2,970 94,112
Outback Steakhouse Inc.+ 3,445 93,446
Sovereign Bancorp Inc. 10,010 92,593
International Speedway Corp. "A" 2,370 92,430
Noble Affiliates Inc. 2,470 91,699
Sybase Inc.+ 3,970 91,310
Foundation Health Systems Inc.+ 5,420 90,107
Litton Industries Inc.+ 2,015 90,045
FirstMerit Corp. 3,905 89,571
Mandalay Resort Group Inc.+ 3,470 88,919
GATX Corporation 2,105 88,147
Trigon Healthcare Inc.+ 1,665 87,517
Brinker International Inc.+ 2,890 87,061
Harris Corp. 3,055 86,877
First Virginia Banks Inc. 2,035 86,742
IPALCO Enterprises Inc. 3,790 86,696
Hibernia Corp. "A" 7,075 86,669
Astoria Financial Corp. 2,240 86,520
Flowers Industries Inc. 4,420 86,190
IBP Inc. 4,680 85,703
Protective Life Corp. 2,850 85,144
Abercrombie & Fitch Co.+ 4,465 85,114
Precision Castparts Corp. 2,190 84,041
L-3 Communications Holdings Inc.+ 1,485 83,902
Diebold Inc. 3,150 83,672
--------------------------------------------------------------------------------
page 34 iShares
<PAGE>
iShares S&P MidCap 400/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------
Harte-Hanks Inc. 3,016 $ 82,186
City National Corp. 2,125 82,078
MONY Group Inc. 2,040 81,345
Lennar Corp. 2,720 80,750
Associated Bancorp 3,055 80,194
Martin Marietta Materials Inc. 2,085 79,814
Helmerich & Payne Inc. 2,200 79,475
Sonoco Products Co. 4,400 79,475
IDACorp Inc. 1,680 77,700
Wilmington Trust Corp. 1,425 76,416
IMC Global Inc. 5,100 73,950
OGE Energy Corp. 3,440 73,315
Kansas City Power & Light Co. 2,730 72,857
ALLETE 3,270 72,349
Conectiv Inc. 3,940 70,427
Whitman Corp. 6,070 70,184
Bergen Brunswig Corp. "A" 5,990 70,008
Neiman-Marcus Group Inc. "A"+ 2,125 68,930
Lincare Holdings Inc.+ 2,380 68,276
Reynolds & Reynolds Co. "A" 3,400 67,575
Hubbell Inc. "B" 2,690 67,418
Omnicare Inc. 4,120 66,435
Western Resources Inc. 3,070 66,389
HON Industries Inc. 2,660 65,502
American Eagle Outfitters Inc.+ 2,060 64,890
Sotheby's Holdings Inc. 2,605 64,799
Roslyn Bancorp Inc. 2,870 64,216
Provident Financial Group Inc. 2,170 63,744
Webster Financial Corp. 2,355 63,438
Pioneer Natural Resources Co.+ 4,435 62,922
Sierra Pacific Resources Corp. 3,475 62,550
Saks Inc.+ 6,320 62,410
Suiza Foods Corp.+ 1,230 62,346
Storage Technology Corp.+ 4,545 61,642
Clayton Homes Inc. 6,150 61,500
ACNielsen Corp.+ 2,576 61,341
Lyondell Chemical Co. 5,190 61,307
Greater Bay Bancorp 880 61,105
Cytec Industries Inc.+ 1,825 61,023
American Financial Group Inc. 2,610 60,519
Pacific Century Financial Corp. 3,525 60,366
Lear Corp.+ 2,930 60,248
Scholastic Corp.+ 755 60,070
Teleflex Inc. 1,690 58,094
Pentair Inc. 2,160 57,780
Lee Enterprises Inc. 1,975 57,028
Edwards Lifesciences Corp.+ 2,590 56,494
Barnes & Noble Inc.+ 2,845 56,011
Washington Gas Light Co. 2,075 $ 55,766
Carlisle Companies Inc. 1,340 55,610
Vectren Corporation 2,715 55,148
Six Flags Inc.+ 3,515 54,483
PacifiCare Health Systems Inc. "A"+ 1,550 53,959
Houghton Mifflin Co. 1,345 52,791
Dean Foods Co. 1,580 52,535
Legato Systems Inc.+ 3,845 51,667
HSB Group Inc. 1,285 51,561
Sensormatic Electronics Corp.+ 3,425 51,375
Mohawk Industries Inc.+ 2,355 51,368
Callaway Golf Co. 3,340 51,352
Hawaiian Electric Industries Inc. 1,460 50,917
USG Corp. 2,000 50,125
Carter-Wallace Inc. 1,990 48,631
AGL Resources Inc. 2,410 48,351
CNF Transportation Inc. 2,170 48,282
Borders Group Inc.+ 3,445 48,015
Lubrizol Corp. 2,405 47,348
Keystone Financial Inc. 2,175 47,306
Jacobs Engineering Group Inc.+ 1,170 47,166
Alexander & Baldwin Inc. 1,790 46,540
ArvinMeritor Inc. 3,160 46,413
Public Service Company of New Mexico 1,770 45,799
Cleco Corp. 975 45,581
AK Steel Holding Corp. 4,850 45,469
Media General Inc. "A" 1,040 44,720
Universal Foods Corp. 2,185 44,519
Rayonier Inc. 1,220 43,844
Interstate Bakeries Corp. 2,955 43,217
Lancaster Colony Corp. 1,740 42,739
RPM Inc. 4,670 42,322
Minerals Technologies Inc. 915 42,090
Quorum Health Group Inc.+ 3,165 41,145
Overseas Shipholding Group Inc. 1,500 41,062
York International Corp. 1,650 41,044
Claire's Stores Inc. 2,270 40,860
Albemarle Corp. 2,015 40,678
Trinity Industries Inc. 1,720 40,205
Federal Signal Corp. 2,015 40,048
Crompton Corp. 5,055 39,808
Harsco Corp. 1,770 39,051
Borg-Warner Automotive Inc. 1,145 37,928
Kelly Services Inc. "A" 1,600 37,800
Dole Food Co. 2,505 37,575
Universal Corporation 1,265 37,159
Modine Manufacturing Co. 1,315 37,046
Furniture Brands International Inc.+ 2,215 36,824
Pennzoil-Quaker State Co. 3,475 36,488
CBRL Group Inc. 2,535 36,441
--------------------------------------------------------------------------------
iShares Schedules of Investments page 35
<PAGE>
iShares S&P MidCap 400/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------
Swift Transportation Co. Inc.+ 2,770 $ 36,183
Pittston Brink's Group 2,305 35,728
Steris Corp.+ 2,955 35,460
Superior Industries International Inc. 1,180 35,400
Tecumseh Products Co. "A" 845 35,384
Kennametal Inc. 1,360 35,020
Olin Corp. 2,035 32,942
Bandag Inc. 915 32,883
Church & Dwight Co. Inc. 1,720 31,605
AGCO Corp. 2,605 30,934
AMETEK Inc. 1,445 30,616
Kaydon Corp. 1,315 30,245
Ogden Corp.+ 2,225 30,177
Bob Evans Farms Inc. 1,615 29,877
Ferro Corp. 1,555 29,642
Horace Mann Educators Corp. 1,790 29,311
Granite Construction Inc. 1,195 28,979
Imation Corp.+ 1,550 28,869
Alaska Air Group Inc.+ 1,190 28,560
Lands' End Inc.+ 1,355 28,455
Carpenter Technology Corp. 965 28,106
Black Hills Corp. 1,000 28,062
Ruddick Corp. 2,020 28,028
Acuson Corp.+ 1,230 27,982
Wallace Computer Services Inc. 1,805 27,526
Longview Fibre Co. 2,260 27,120
Banta Corp. 1,110 27,056
Flowserve Corp. 1,635 26,875
Structural Dynamics Research Corp.+ 1,585 25,954
Smucker (J.M) Company (The)+ 1,050 25,528
Unifi Inc.+ 2,490 25,367
GTECH Holdings Corp.+ 1,515 25,092
Sylvan Learning Systems Inc.+ 1,660 24,589
Transaction Systems Architects Inc. "A"+ 1,445 23,481
Wisconsin Central Transportation Corp.+ 2,160 22,815
Glatfelter (P.H.) Co. 1,880 22,795
Airborne Freight Corp. 2,200 22,413
Perrigo Co.+ 3,225 22,071
Modis Professional Services Inc.+ 4,205 21,813
Stewart & Stevenson Services Inc. 1,245 21,710
Mynd Corp.+ 1,575 21,262
Wellman Inc. 1,415 20,429
Covance Inc.+ 2,495 20,428
Hunt (J.B.) Transport Services Inc. 1,570 20,017
Airgas Inc.+ 2,925 19,927
Sequa Corp. "A"+ 465 19,763
Shares or
Security Principal Value
----------------------------------------------------------------
Finova Group Inc. 2,715 $ 19,684
Standard Register Co. 1,230 19,680
Arnold Industries Inc. 1,105 18,647
Fuller (H. B.) Co. 620 17,825
Wausau-Mosinee Paper Corp. 2,280 17,670
OfficeMax Inc.+ 4,950 17,634
Federal-Mogul Corp. 3,165 17,210
Ohio Casualty Corp. 2,675 16,970
Albany International Corp.+ 1,355 16,260
Schulman (A.) Inc. 1,340 14,740
International Multifoods Corp. 845 14,682
NCO Group Inc.+ 1,135 13,478
Chesapeake Corp. 675 12,994
Lance Inc. 1,325 12,877
Cambridge Technology Partners Inc.+ 2,760 12,075
Magnetek Inc.+ 1,080 11,475
PSS World Medical Inc.+ 3,145 11,401
Cleveland-Cliffs Inc. 490 11,209
Ryerson Tull Inc. 1,150 10,853
Warnaco Group Inc. "A" 2,445 9,780
Stewart Enterprises Inc. "A" 4,815 9,329
Lone Star Steakhouse & Saloon Inc. 1,085 8,002
NCH Corp. 225 7,945
Navigant Consulting Co.+ 1,735 5,964
MAXXAM Inc.+ 290 5,764
Ethyl Corp. 3,510 5,046
----------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $18,145,147) 19,604,652
----------------------------------------------------------------
REPURCHASE AGREEMENT - 0.03%
----------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$7,016 and an effective yield of
6.25%. $ 7,012 7,012
----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $7,012) 7,012
----------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 99.89%
(Cost $18,152,159) 19,611,664
----------------------------------------------------------------
Other Assets, Less Liabilities -- 0.11% 20,802
----------------------------------------------------------------
NET ASSETS -- 100.00% $19,632,466
================================================================
+ Non-income earning securities.
See notes to financial statements.
--------------------------------------------------------------------------------
page 36 iShares
<PAGE>
iShares S&P SmallCap 600 Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS - 99.96%
---------------------------------------------------------------
Protein Design Labs Inc.+ 7,860 $ 947,130
Vertex Pharmaceuticals Inc.+ 9,855 832,748
COR Therapeutics Inc.+ 9,823 612,096
Silicon Valley Bancshares+ 8,862 516,073
HNC Software Inc.+ 5,865 479,830
Plexus Corp.+ 6,757 476,368
Universal Health Services Inc. "B"+ 5,484 469,568
Radian Group Inc. 6,931 467,843
Alpharma Inc. 7,311 446,885
KEMET Corp.+ 16,062 443,713
Expeditors International Washington Inc. 9,409 423,993
Techne Corp.+ 3,773 422,576
Vicor Corp.+ 7,781 422,119
Barr Laboratories Inc.+ 6,346 420,819
Gallagher (Arthur J.) & Co. 6,963 411,687
National Instruments Corp.+ 9,266 408,862
AmeriCredit Corp.+ 13,938 401,589
Bisys Group Inc.+ 5,098 394,139
Catalina Marketing Corp.+ 10,141 381,555
Dallas Semiconductor Corp. 11,124 365,701
Newfield Exploration Co.+ 7,826 365,376
APW Ltd.+ 7,204 351,195
Investors Financial Services Corp. 5,469 345,231
Gentex Corp.+ 13,652 341,300
Plantronics Inc.+ 8,959 340,442
ChoicePoint Inc.+ 7,412 340,026
Coherent Inc.+ 4,919 334,492
Medicis Pharmaceutical Corp. "A"+ 5,404 332,346
Eaton Vance Corp. 6,488 330,888
Commerce Bancorp Inc. 5,666 329,690
True North Communications Inc. 9,141 326,791
Jack Henry & Associates Inc. 7,503 325,443
Pride International Inc.+ 12,047 319,246
Dycom Industries Inc.+ 7,646 318,265
RSA Security Inc.+ 7,298 314,726
Priority Healthcare Corp. "B"+ 4,124 314,455
Cognex Corp.+ 7,945 313,331
Louis Dreyfus Natural Gas Corp.+ 7,857 311,334
Cullen/Frost Bankers Inc. 9,572 311,090
99 Cents Only Stores+ 6,190 310,661
Cephalon Inc.+ 6,371 308,993
Fidelity National Financial Inc. 12,383 306,479
Technitrol Inc. 3,008 303,808
Timberland Co.+ 7,405 303,605
Orthodontic Centers of America+ 8,943 297,914
Dura Pharmaceuticals Inc.+ 8,204 $ 290,217
Methode Electronics Inc. "A" 6,548 290,158
Cerner Corp.+ 6,229 289,259
Centura Banks Inc. 7,334 280,984
Raymond James Financial Corp. 8,476 279,178
Patterson Dental Co.+ 12,394 278,865
Smithfield Foods Inc.+ 10,390 272,738
C&D Technologies Inc. 4,802 272,513
Zebra Technologies Corp. "A"+ 5,601 269,198
Alpha Industries Inc.+ 7,881 268,447
Vintage Petroleum Inc. 11,553 262,831
Varian Medical Systems Inc.+ 5,778 261,093
Aeroflex Inc.+ 5,360 260,630
Whole Foods Market Inc.+ 4,827 259,150
CTS Corp. 5,100 258,188
SkyWest Inc. 5,018 257,173
Hudson United Bancorp 8,944 247,078
Harman International Industries Inc. 6,284 245,704
Michaels Stores Inc.+ 6,121 244,840
Cross Timbers Oil Co. 12,728 244,209
Cheesecake Factory (The)+ 5,638 243,843
First American Financial Corp. 11,670 243,611
Pier 1 Imports Inc. 17,575 238,361
Toll Brothers Inc.+ 6,706 230,519
Shaw Group Inc.+ 3,267 230,324
Barrett Resources Corp.+ 6,047 228,652
Enzo Biochem Inc.+ 4,686 227,271
FactSet Research Systems Inc. 5,973 224,585
Dain Rauscher Corp. 2,355 219,015
Washington Federal Inc. 9,620 218,855
Pioneer Group Inc. (The)+ 4,968 218,437
Aspen Technology Inc.+ 4,808 216,961
Regeneron Pharmaceuticals Inc.+ 6,639 216,597
Men's Wearhouse Inc. (The)+ 7,616 215,628
DMC Stratex Networks Inc.+ 13,350 214,434
D.R. Horton Inc. 12,411 213,310
Zale Corp.+ 6,489 210,487
Proxim Inc.+ 4,665 207,593
Tetra Tech Inc.+ 7,255 207,221
Ethan Allen Interiors Inc. 7,281 206,143
Verity Inc.+ 5,757 205,453
Downey Financial Corp. 5,187 204,886
AnnTaylor Stores Corp.+ 5,300 203,719
Beringer Wine Estates Holdings Inc. "B"+ 3,649 202,748
Insight Enterprises Inc.+ 7,439 202,699
Bindley Western Industries Inc. 6,305 201,760
First Midwest Bancorp Inc. 7,558 201,232
--------------------------------------------------------------------------------
iShares Schedules of Investments page 37
<PAGE>
iShares S&P SmallCap 600 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------
Artesyn Technologies Inc.+ 6,894 $ 200,788
NYFIX Inc.+ 4,470 200,032
Commercial Federal Corp. 10,398 198,862
National Data Corp. 6,032 197,925
Anixter International Inc.+ 6,734 196,128
Avista Corp. 8,690 195,525
Advance Paradigm Inc.+ 4,626 195,155
Aspect Communications Corp.+ 9,449 194,886
Dendrite International Inc.+ 7,242 194,176
Stillwater Mining Co.+ 7,096 192,089
OM Group Inc. 4,392 191,601
Cable Design Technologies Corp.+ 7,875 191,461
Administaff Inc.+ 2,492 188,644
Pogo Producing Co. 7,434 188,638
Hain Celestial Group Inc.+ 5,354 188,059
Stone Energy Corp.+ 3,395 186,725
Linens 'N Things Inc.+ 7,319 186,634
Roper Industries Inc. 5,599 185,817
Heidrick & Struggles International Inc.+ 3,565 183,152
Benchmark Electronics Inc.+ 3,508 182,416
C-Cube Microsystems Inc.+ 8,884 182,122
Delta & Pine Land Co. 7,084 181,970
Constellation Brands Inc.+ 3,348 181,838
Southern Union Co.+ 9,163 181,542
Invacare Corp. 5,547 178,197
Piedmont Natural Gas Co. 5,811 177,962
Resmed Inc.+ 5,625 175,781
Philadelphia Suburban Corp. 7,562 175,344
S3 Inc.+ 16,899 174,271
Electro Scientific Industries Inc.+ 4,910 172,464
Scotts Co. (The) "A"+ 5,148 172,458
Southwest Bancorp of Texas Inc.+ 5,251 171,642
Noven Pharmaceuticals Inc.+ 4,004 171,171
IDEXX Laboratories Inc.+ 6,397 171,120
Cambrex Corp. 4,585 169,645
Swift Energy Co.+ 4,070 169,159
Anchor Gaming+ 2,117 168,434
United Stationers Inc.+ 6,264 168,345
Mutual Risk Management Ltd. 7,588 166,462
Teledyne Technologies Inc.+ 5,694 165,838
Cal Dive International Inc.+ 2,888 165,158
Silicon Valley Group Inc.+ 6,250 164,453
Energen Corp. 5,523 164,309
Coventry Health Care Inc.+ 10,856 164,197
La-Z-Boy Chair Co. 11,236 163,624
Syncor International Corp.+ 4,411 $ 162,380
Penton Media Inc. 5,859 161,122
Black Box Corp.+ 3,451 160,903
Aware Inc.+ 4,145 159,582
EGL Inc.+ 5,264 159,236
AXT Inc.+ 3,800 158,888
RadiSys Corp.+ 3,129 158,210
CEC Entertainment Inc.+ 4,938 158,016
BARRA Inc.+ 2,543 157,825
AptarGroup Inc. 6,576 157,413
Imperial Bancorp+ 8,165 156,156
Polaris Industries Partners LP "A" 4,409 155,417
Actel Corp.+ 4,317 155,142
Hyperion Solutions Corp.+ 5,991 155,017
Renal Care Group Inc.+ 8,307 154,718
Insituform Technologies Inc. "A"+ 4,574 153,801
Idex Corp. 5,462 152,595
Jack in the Box Inc.+ 7,096 152,121
United Bancshares Inc. 7,724 151,584
Whitney Holding Corp. 4,169 151,387
Alliance Semiconductor Corp.+ 7,575 150,553
Delphi Financial Group Inc.+ 3,701 149,890
Corn Products International Inc. 6,474 147,283
Seacor Smit Inc.+ 3,133 146,076
Community First Bankshares Inc. 8,278 145,382
Earthgrains Company (The) 7,789 143,610
Mueller Industries Inc.+ 6,346 142,388
Spherion Corporation+ 11,748 140,242
Xircom Inc.+ 5,495 138,749
O'Reilly Automotive Inc.+ 9,458 138,323
Copart Inc.+ 9,906 137,446
Alliant Techsystems Inc.+ 1,669 137,067
MascoTech Inc. 8,269 136,955
UIL Holdings Corporation 2,650 136,309
Forward Air Corp.+ 3,850 135,472
Diagnostic Products Corp. 2,518 135,028
Florida Rock Industries Inc. 3,421 134,916
Adaptive Broadband Corp.+ 6,893 134,413
Central Parking Corp. 6,781 134,349
Pre-Paid Legal Services Inc.+ 4,156 134,291
Staten Island Bancorp Inc. 6,695 133,900
Buckeye Technologies Inc.+ 6,431 133,443
NVR Inc.+ 1,640 132,840
Alliance Pharmaceutical Corp.+ 8,693 132,568
New Jersey Resources Corp. 3,261 132,478
Veritas DGC Inc.+ 4,566 132,129
Avant! Corp.+ 7,235 132,039
--------------------------------------------------------------------------------
page 38 iShares
<PAGE>
iShares S&P SmallCap 600 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------
Mid Atlantic Medical Services Inc.+ 8,715 $ 131,814
American Management Systems Inc.+ 7,666 131,759
PolyOne Corp.+ 17,843 130,477
On Assignment Inc.+ 4,098 128,575
Ruby Tuesday Inc. 11,338 127,553
Dril-Quip Inc.+ 3,185 127,002
Brady Corp. "A" 4,182 126,505
Baldor Electric Co. 6,225 126,445
Lilly Industries Inc. "B" 4,286 126,437
Chittenden Corp. 4,908 126,074
Atlantic Coast Airlines Holdings+ 3,889 125,177
Texas Industries Inc. 3,916 124,823
Kent Electronics Corp.+ 5,227 124,795
Read-Rite Corp.+ 11,033 124,121
Helix Technology Corp. 4,150 123,981
CH Energy Group Inc. 3,105 123,812
ADVO Inc.+ 3,720 122,760
TrustCo Bank Corp. 9,940 122,386
Wesley Jessen VisionCare Inc.+ 3,182 122,308
Pharmaceutical Product Development Inc.+ 4,578 121,603
MacDermid Inc. 5,785 121,485
Tredegar Corporation 6,994 121,084
Southwest Gas Co. 5,768 120,768
Graco Inc. 3,744 120,744
UGI Corp. 4,976 120,668
Firstbank Corp. 4,927 120,404
Atmos Energy Corp. 5,820 120,037
National Discounts Brokers Group Inc.+ 3,876 119,914
Jeffries Group Inc. 4,458 119,809
Kulicke & Soffa Industries Inc.+ 8,958 119,253
Oshkosh Truck Corp. 3,066 118,807
Casey's General Store Inc. 9,112 118,456
Valence Technology Inc.+ 6,782 116,990
Footstar Inc.+ 3,612 116,713
Hooper Holmes Inc. 12,256 116,555
eLoyalty Corp.+ 9,050 115,387
Aztar Corp.+ 7,498 115,282
Bio-Technology General Corp.+ 10,023 114,638
FileNET Corp.+ 6,301 114,599
Cost Plus Inc.+ 3,802 114,535
Three-Five Systems Inc.+ 3,896 113,958
HS Resources Inc.+ 3,383 113,753
Burlington Coat Factory Warehouse Corp. 7,940 113,641
SPS Technologies Inc.+ 2,336 113,296
Photronics Inc.+ 5,186 113,120
Fair Isaac and Co. Inc. 2,648 $ 113,037
Applebee's International Inc. 4,903 112,769
Dionex Corp.+ 4,078 112,655
Regis Corp. 7,510 112,650
ABM Industries Inc. 4,143 112,638
ESS Technology Inc.+ 7,750 110,922
Susquehanna Bancshares Inc. 7,237 110,364
Washington Group International Inc.+ 9,642 110,280
Pacific Sunwear of California Inc.+ 5,876 110,175
US Freightways Corp. 4,853 110,102
Queens County Bancorp Inc. 3,797 109,638
Remedy Corp.+ 5,783 109,154
Mercury Computer Systems Inc.+ 3,924 109,136
Chico's FAS Inc.+ 3,200 108,800
Trenwick Group Ltd. 5,684 107,996
Reliance Steel & Aluminum Co. 5,122 107,882
Park Electrochemical Corp. 1,924 107,023
Cabot Oil & Gas Corp. "A" 5,249 106,948
MAF Bancorp Inc. 4,279 106,440
Pinnacle Entertainment Inc.+ 4,888 106,314
G&K Services Inc. "A" 3,785 106,217
Atwood Oceanics Inc.+ 2,546 106,136
Belden Inc. 4,481 105,864
Northwest Natural Gas Co. 4,641 105,583
Tucker Anthony Sutro Corporation 4,145 105,179
Systems & Computer Technology Corp.+ 5,982 105,059
Pinnacle Systems Inc.+ 9,228 103,815
FYI Inc.+ 2,769 103,491
Great Plains Software Inc.+ 3,666 103,106
Sonic Corp.+ 3,262 102,753
Polymedica Industries Inc.+ 2,390 102,471
M.D.C. Holdings Inc. 3,927 102,102
Werner Enterprises Inc. 8,669 101,861
Hilb Rogal & Hamilton Co. 2,427 101,176
South Financial Group Inc. (The) 7,928 100,091
Triarc Companies Inc.+ 4,059 99,953
Simpson Manufacturing Co. Inc.+ 2,232 99,743
Circle International Group Inc. 3,278 99,159
Memberworks Inc.+ 2,999 98,592
JLG Industries Inc. 8,005 97,561
UniSource Energy Corp. 5,947 97,382
Lennox International Inc. 10,360 97,125
St. Mary Land & Exploration Co. 4,182 96,447
Hutchinson Technology Inc.+ 4,574 96,340
C-COR Electronics Inc.+ 6,236 95,489
Trimble Navigation Ltd.+ 4,264 95,407
Standard-Pacific Corp. 5,291 95,238
--------------------------------------------------------------------------------
iShares Schedules of Investments page 39
<PAGE>
iShares S&P SmallCap 600 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------
Performance Food Group Co.+ 2,531 $ 95,229
Owens & Minor Inc. 6,043 95,177
Fleming Companies Inc. 7,237 94,533
American Freightways Corp.+ 5,939 94,282
P-Com Inc.+ 14,196 94,048
Morgan Keegan Inc. 5,308 92,890
SCP Pool Corp.+ 3,133 92,815
ZixIt Corp.+ 3,042 92,781
Cooper Companies Inc. 2,613 92,435
Organogenesis Inc.+ 6,275 92,242
Enhance Financial Services Group Inc. 7,092 92,196
Datascope Corp. 2,730 91,455
Analogic Corp. 2,375 91,289
Ciber Inc.+ 10,961 90,428
Respironics Inc.+ 5,417 90,396
Profit Recovery Group International
Inc. (The)+ 9,137 90,228
Input/Output Inc.+ 9,358 90,071
Progress Software Corp.+ 6,578 89,625
Kirby Corp.+ 4,520 88,705
Pegasus Systems Inc.+ 4,494 87,914
Libbey Inc. 2,819 87,741
Manitowoc Co. Inc. 4,552 87,626
Specialty Equipment Co.+ 3,536 87,295
Allen Telecom Inc.+ 5,146 87,160
CLARCOR Inc. 4,451 86,794
Viasat Inc.+ 3,875 86,703
Stein Mart Inc.+ 7,941 85,862
MAXIMUS Inc.+ 3,876 85,757
Milacron Inc. 6,440 85,733
Southwest Securities Group Inc. 2,925 85,556
Provident Bankshares Corp. 5,095 85,341
Hughes Supply Inc. 4,338 85,112
Valmont Industries Inc. 4,275 84,966
Selective Insurance Group Inc. 4,750 84,906
General Semiconductor Inc.+ 6,951 84,715
Prime Hospitality Corp.+ 8,268 83,714
NorthWestern Corp. 4,260 83,070
THQ Inc.+ 3,551 82,561
Advanced Tissue Sciences Inc.+ 11,061 82,266
Fleetwood Enterprises Inc. 6,058 82,162
Tower Automotive Inc.+ 8,667 81,253
Heartland Express Inc.+ 4,667 81,089
Fritz Companies Inc.+ 6,745 80,940
NBTY Inc.+ 12,376 80,831
Kellwood Co. 4,405 80,391
Harland (John H.) Co. 5,241 $ 80,253
Concord Communications Inc.+ 3,018 79,977
Quiksilver Inc.+ 4,135 79,599
ADAC Laboratories Inc.+ 3,818 79,462
Steel Dynamics Inc.+ 8,622 79,215
Agribrands International Inc.+ 1,812 79,049
Michael Foods Inc. 3,376 78,914
Fossil Inc.+ 5,911 78,690
Great Atlantic & Pacific Tea Co. 7,070 78,212
Ralcorp Holdings Inc.+ 5,501 77,702
Phoenix Technologies Ltd.+ 4,795 76,420
US Oncology Inc.+ 16,753 75,912
Biomatrix Inc.+ 4,327 75,722
Interface Inc. 9,479 75,536
Laclede Gas Co. 3,486 75,385
Nautica Enterprises Inc.+ 5,796 74,986
Startek Inc.+ 2,583 74,907
Arch Chemicals Inc. 4,091 74,661
Brooktrout Technology Inc.+ 2,260 74,439
BE Aerospace Inc.+ 4,602 74,207
Toro Co. 2,349 73,994
Ryland Group Inc. 2,372 73,532
Landstar System Inc.+ 1,630 72,739
Paxar Corp.+ 8,126 72,626
Russ Berrie & Co. Inc. 3,670 72,483
NUI Corp. 2,390 72,148
GBC Bancorp 2,100 71,531
Wolverine World Wide Inc. 7,624 70,999
Offshore Logistics Inc.+ 3,939 70,410
Oceaneering International Inc.+ 4,225 70,241
Dress Barn Inc.+ 3,339 70,119
Factory 2-U Stores Inc.+ 2,290 69,988
IHOP Corp.+ 3,642 69,653
RLI Corp. 1,805 69,605
Yellow Corporation+ 4,592 69,454
Zenith National Insurance Corp. 3,170 69,344
Kronos Inc.+ 2,288 68,640
School Specialty Inc.+ 3,205 68,307
Mentor Corp. 4,323 68,087
Salton/Maxim Corp.+ 2,104 67,986
Pioneer-Standard Electronics Inc. 5,003 67,853
Rollins Truck Leasing Corp. 10,749 67,853
Coca-Cola Bottling Co. 1,612 67,603
Auspex Systems Inc.+ 5,460 67,568
General Communication Inc. "A"+ 9,440 67,555
Anchor Bancorp Wisconsin Inc. 4,284 67,205
Intermagnetics General Corp.+ 2,522 67,148
--------------------------------------------------------------------------------
page 40 iShares
<PAGE>
iShares S&P Smallcap 600 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------
Cuno Inc.+ 3,016 $ 67,106
Commercial Metals Co. 2,628 67,014
Applied Industrial Technologies Inc. 3,779 65,424
Regal-Beloit Corp. 3,853 65,347
Electroglas Inc.+ 3,821 65,196
Brush Wellman Inc. 3,014 65,178
Morrison Management Specialist Inc. 2,200 65,010
Symmetricom Inc.+ 4,155 64,922
American Italian Pasta Co.+ 3,380 64,854
Avid Technology Inc.+ 4,585 64,190
Roadway Express Inc. 3,575 64,127
Talk.com Inc.+ 14,521 63,983
Riggs National Corp. 5,213 63,859
Ionics Inc.+ 2,995 63,831
Friede Goldman Halter Inc.+ 8,972 63,365
GenCorp. Inc. 7,770 63,131
Esterline Corp.+ 3,196 62,921
Audiovox Corp. "A"+ 4,169 62,796
Seitel Inc.+ 4,368 62,790
Standard Microsystems Corp.+ 2,871 62,624
Ultratech Stepper Inc.+ 3,896 62,580
SpeedFam-IPEC Inc.+ 5,471 62,575
Barnes Group Inc. 3,402 62,512
Project Software & Development Inc.+ 4,017 62,452
Plains Resource Inc.+ 3,307 62,420
Patina Oil & Gas Corp. 3,120 62,400
InterVoice Inc.+ 5,876 61,698
Meade Instruments Corp.+ 3,025 61,067
Bowne & Co. Inc. 6,229 60,733
Nuevo Energy Co.+ 3,300 60,637
Vital Sign Inc. 2,284 60,526
WD-40 Company 2,843 60,414
Volt Information Sciences Inc.+ 2,780 59,770
ChemFirst Inc. 2,832 58,941
Chemed Corp. 1,831 58,249
Orbital Sciences Corp.+ 6,940 58,122
Monaco Coach Corp.+ 3,521 58,096
Thomas Industries Inc. 2,848 57,672
Cato Corp. "A" 4,613 57,662
Marcus Corp. 5,456 57,288
AAR Corp. 4,988 57,050
Cohu Inc. 3,720 56,963
Arctic Cat Inc. 4,498 56,787
Shopko Stores Inc.+ 5,462 56,668
Saga Systems Inc.+ 5,380 56,490
CDI Corp.+ 3,500 $ 56,000
Arkansas Best Corp.+ 3,642 55,996
Inter-Tel Inc. 4,884 55,556
RTI International Metals Inc.+ 3,837 55,397
Scott Technologies Inc.+ 3,107 55,052
Foster Wheeler Corp. 7,590 55,027
AO Smith Corp. "B" 4,342 54,546
Kaman Corp. "A" 4,251 53,669
Caraustar Industries Inc. 4,771 52,779
Phillips-Van Heusen Corporation 5,111 52,707
Telxon Corp.+ 3,001 52,518
Cygnus Inc.+ 4,754 52,294
Elcor Corp. 3,596 52,142
Midwest Express Holdings Inc.+ 2,589 52,104
Thor Industries Inc. 2,238 51,754
Brightpoint Inc.+ 10,259 51,616
Watsco Inc. 4,981 51,254
Myers Industries Inc. 4,032 51,156
E.W. Blanch Holdings Inc. 2,417 50,153
Telcom Semiconductor Inc.+ 3,365 50,054
American States Water Co. 1,651 49,943
Pep Boys-Manny Moe & Jack Inc. 9,960 49,800
Quanex Corp. 2,575 49,086
Midway Games Inc.+ 6,994 48,958
Winnebago Industries Inc. 3,901 48,763
Watts Industries Inc. "A" 4,853 48,530
MICROS Systems Inc.+ 3,213 48,396
Exabyte Corp.+ 4,300 48,375
Robbins & Myers Inc. 2,017 47,652
Ha-Lo Industries Inc.+ 11,832 47,328
Aaron Rents Inc. "B" 3,653 47,032
Panera Bread Co. "A"+ 2,238 46,718
Ryan's Family Steak Houses Inc.+ 5,954 45,771
SLI Inc. 6,249 45,696
New England Business Service Inc. 2,520 45,675
Gardner Denver Inc.+ 2,805 45,581
CACI International Inc. "A"+ 2,110 45,233
SPSS Inc.+ 1,670 44,777
Fremont General Corp. 13,015 44,739
Standex International Corp. 2,302 44,457
Consolidated Products Inc.+ 5,495 43,960
Group 1 Automotive Inc.+ 4,025 43,772
Lawson Products Inc. 1,798 43,489
Network Equipment Technologies Inc.+ 4,041 43,188
QRS Corp.+ 2,847 42,883
Universal Forest Products Inc. 3,746 42,786
K Swiss Inc. "A" 1,898 42,705
--------------------------------------------------------------------------------
iShares Schedules of Investments page 41
<PAGE>
iShares S&P Smallcap 600 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------
Checkpoint Systems Inc.+ 5,573 $ 42,146
Griffon Corporation+ 5,551 41,979
Sturm Ruger & Co. Inc. 5,081 41,601
Remington Oil & Gas Corp.+ 3,980 41,541
United Natural Foods Inc.+ 3,352 41,481
Lindsay Manufacturing Co. 2,217 41,292
Omnova Solutions Inc. 7,315 40,690
Southwestern Energy Company 4,625 40,469
Simpson Industries Inc. 3,298 40,401
Stride Rite Corp. 7,952 40,257
Parexel International Corp.+ 4,702 39,967
Republic Group Inc. 2,173 39,929
Wet Seal Inc. "A"+ 2,544 39,909
Midas Inc. 2,831 39,634
URS Corp.+ 2,953 39,127
Astec Industries Inc.+ 3,573 39,080
National Presto Industries Inc. 1,300 38,919
Deltic Timber Corp. 2,277 38,567
Chiquita Brands International Inc. 12,259 38,309
Tetra Technologies Inc.+ 2,522 38,303
Wabash National Corp. 4,184 38,179
Schweitzer-Mauduit International Inc. 2,852 38,146
Conmed Corp.+ 2,782 38,079
Pediatrix Medical Group Inc.+ 2,936 37,985
Innovex Inc. 2,786 37,959
Robotic Vision Systems Inc.+ 6,340 37,842
Pope & Talbot Inc. 2,642 37,814
Visual Networks Inc.+ 5,705 37,439
4Kids Entertainment Inc.+ 2,210 37,294
Champion Enterprises Inc.+ 8,745 37,166
Information Resources Inc.+ 5,352 36,461
Cascade Natural Gas Corp. 2,043 35,752
Department 56 Inc.+ 2,706 35,685
BMC Industries Inc. 5,189 35,674
Gerber Scientific Inc. 4,099 35,354
Immune Response Corp.+ 5,137 35,317
Theragenics Corp.+ 5,416 35,204
Cash American Investments Inc. 4,808 35,159
SCPIE Holdings Inc. 1,740 35,018
X-Rite Inc. 3,980 34,825
Skyline Corp. 1,627 34,675
Oshkosh B'gosh Inc. "A" 2,275 34,623
Insurance Auto Auctions Inc.+ 2,134 34,544
Intermet Corp. 4,708 34,133
Wolverine Tube Inc.+ 2,247 33,424
Mesa Air Group Inc.+ 6,006 $ 32,845
Jakks Pacific Inc.+ 3,486 32,790
Lydall Inc.+ 2,862 32,734
AVT Corp.+ 5,848 32,530
Tenneco Automotive Inc. 6,227 32,303
Bangor Hydro-Electric Co. 1,330 32,169
Labor Ready Inc.+ 7,659 32,072
M.S. Carriers Inc.+ 2,049 32,016
Material Sciences Corp.+ 2,797 31,816
Brown Shoe Company Inc. 3,402 31,256
Ames Department Stores Inc.+ 5,406 31,253
Bassett Furniture Industries Inc. 2,171 30,801
CPI Corp. 1,439 30,579
Analysts International Corp. 4,234 30,564
Apogee Enterprises Inc. 5,319 30,252
Coachmen Industries Inc. 2,847 29,716
ePresence Inc.+ 4,374 29,524
Flow International Corp.+ 2,693 29,286
Consolidated Graphics Inc.+ 2,492 29,281
Sola International Inc.+ 4,520 29,098
K2 Inc.+ 3,252 29,065
CKE Restaurant Inc. 9,427 28,870
Edgewater Technology Inc.+ 5,448 28,602
Landry's Seafood Restaurants Inc. 4,174 28,435
Franklin Covey Co.+ 3,788 27,700
Butler Manufacturing Co. 1,198 27,479
Epicor Software Corp.+ 7,776 27,216
Quaker Chemical Corp. 1,586 26,962
Dimon Inc. 8,266 26,864
Applica Inc.+ 4,229 26,167
Kroll-O'Gara Co. (The)+ 4,314 25,884
Billing Concepts Corp.+ 8,032 25,602
Davox Corp.+ 2,535 25,508
Gymboree Co.+ 4,676 25,426
Fedders Corp. 6,495 25,168
Castle (A.M.) & Co. 2,576 24,794
Osteotech Inc.+ 2,589 24,757
Oxford Industries Inc. 1,382 24,703
Sierra Health Services Inc.+ 5,263 24,670
Sunrise Medical Inc.+ 4,079 24,474
Goody's Family Clothing Inc.+ 6,121 24,101
Jo-Ann Stores Inc.+ 3,259 23,628
Discount Auto Parts Inc.+ 3,044 23,401
Natures Sunshine Products Inc. 3,142 23,369
Digi International Inc.+ 2,925 23,034
Titan International Inc. 3,911 22,488
Cone Mills Corp.+ 4,949 22,270
--------------------------------------------------------------------------------
page 42 iShares
<PAGE>
iShares S&P Smallcap 600 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------------
Nash Finch Co. 2,095 $ 21,867
Luby's Inc. 4,078 21,664
Penford Corp. 1,393 21,591
Central Vermont Public Service Corporation 2,118 21,577
Nelson (Thomas) Inc. 2,602 21,304
Hologic Inc.+ 2,820 20,974
J & J Snack Foods Corp.+ 1,599 20,687
Building Materials Holdings Corp.+ 2,329 20,670
Laser Vision Centers Inc.+ 4,682 20,337
Ashworth Inc.+ 2,511 19,774
Huffy Corp. 1,872 19,656
Mississippi Chemical Corp. 4,798 19,192
TBC Corp.+ 3,882 18,925
Standard Motor Products Inc. 2,336 18,688
Spacelabs Medical Inc.+ 1,872 18,486
Cross (A.T.) Company+ 3,251 17,474
Royal Appliance Manufacturing Co.+ 2,895 17,189
IMCO Recycling Inc. 2,858 17,148
Hancock Fabrics Inc. 3,417 17,085
Itron Inc.+ 2,787 17,070
Commonwealth Industries 3,031 16,860
Hartmarx Corp.+ 5,568 16,704
Bombay Co. Inc. (The)+ 6,615 16,124
Lillian Vernon Corporation 1,651 16,097
Birmingham Steel Corp. 5,917 15,902
Angelica Corp. 1,614 15,636
Haggar Corp. 1,222 15,275
Enesco Group Inc. 2,572 15,110
Gottschalks Inc.+ 2,418 14,810
Amcast Industrial Corp. 1,541 14,543
Hanger Orthopedic Group Inc.+ 3,655 13,706
Mayor's Jewelers Inc.+ 3,616 13,560
Damark International Inc. "A"+ 1,055 12,924
Steel Technologies Inc. 1,937 12,227
Computer Task Group Inc. 3,770 11,781
Baker (J.) Inc. 2,511 11,299
Cyrk Inc.+ 3,050 10,484
Action Performance Companies Inc.+ 2,992 10,285
Taco Cabana Inc. "A"+ 2,247 9,690
Nashua Corp. 1,120 9,450
Curative Health Services Inc.+ 1,734 9,429
Dixie Group Inc.+ 2,264 8,773
Books-A-Million Inc.+ 3,213 8,434
Green Mountain Power Corp. 1,029 7,782
Frozen Food Express Industries Inc.+ 2,901 7,434
Shares or
Security Principal Value
-------------------------------------------------------------------
Spartan Motors Inc. 2,238 $ 6,994
Guilford Mills Inc. 3,696 6,930
Insteel Industries Inc. 1,495 6,073
-------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $67,292,408) 70,602,912
-------------------------------------------------------------------
SHORT TERM INSTRUMENTS - 3.03%
-------------------------------------------------------------------
Freddie Mac Discount Note
6.46%, 10/24/00++ $294,909 294,909
Goldman Sachs Financial Square Prime
Obligation Fund ++ 497,855 497,855
Providian Temp Cash Money Market Fund ++ 362,255 362,255
Short Term Investment Company Liquid
Assets Portfolio++ 987,967 987,967
-------------------------------------------------------------------
TOTAL SHORT TERM INSTRUMENTS
(Cost: $2,142,986) 2,142,986
-------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.00%
-------------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$1,356 and an effective yield of
6.25%. 1,355 1,355
-------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $1,355) 1,355
-------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 102.99%
(Cost $69,436,749) 72,747,253
-------------------------------------------------------------------
Other Assets, Less Liabilities -- (2.99%) (2,113,625)
-------------------------------------------------------------------
NET ASSETS -- 100.00% $70,633,628
===================================================================
+ Non-income earning securities.
++ Represents investment of collateral received from securities lending
transactions. See Note 5.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Schedules of Investments page 43
<PAGE>
iShares S&P SmallCap 600/BARRA Growth Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
-----------------------------------------------------------------
COMMON STOCKS - 99.99%
-----------------------------------------------------------------
Protein Design Labs Inc.+ 3,926 $ 473,082
Vertex Pharmaceuticals Inc.+ 4,916 415,402
COR Therapeutics Inc.+ 4,906 305,705
Silicon Valley Bancshares+ 4,425 257,687
Plexus Corp.+ 3,376 238,008
Alpharma Inc. 3,647 222,923
KEMET Corp.+ 7,998 220,945
Expeditors International Washington Inc. 4,710 212,244
Techne Corp.+ 1,877 210,224
Barr Laboratories Inc.+ 3,167 210,012
Vicor Corp.+ 3,868 209,839
Gallagher (Arthur J.) & Co. 3,490 206,346
National Instruments Corp.+ 4,624 204,034
Bisys Group Inc.+ 2,542 196,528
Catalina Marketing Corp.+ 5,071 190,796
Dallas Semiconductor Corp. 5,537 182,029
Newfield Exploration Co.+ 3,890 181,614
APW Ltd.+ 3,590 175,012
Investors Financial Services Corp. 2,729 172,268
Plantronics Inc.+ 4,493 170,734
ChoicePoint Inc.+ 3,710 170,196
Gentex Corp.+ 6,786 169,650
Coherent Inc.+ 2,482 168,776
Commerce Bancorp Inc. 2,856 166,184
Eaton Vance Corp. 3,246 165,546
Medicis Pharmaceutical Corp. "A"+ 2,691 165,497
True North Communications Inc. 4,572 163,449
Jack Henry & Associates Inc. 3,736 162,049
Dycom Industries Inc.+ 3,827 159,299
Priority Healthcare Corp. "B"+ 2,086 159,058
RSA Security Inc.+ 3,654 157,579
Cognex Corp.+ 3,976 156,804
99 Cents Only Stores+ 3,102 155,682
Cephalon Inc.+ 3,192 154,812
Technitrol Inc. 1,502 151,702
Timberland Co.+ 3,692 151,372
Orthodontic Centers of America+ 4,446 148,107
Methode Electronics Inc. "A" 3,270 144,902
Patterson Dental Co.+ 6,180 139,050
C&D Technologies Inc. 2,407 136,597
Zebra Technologies Corp. "A"+ 2,790 134,094
Alpha Industries Inc.+ 3,919 133,491
Aeroflex Inc.+ 2,689 130,753
Varian Medical Systems Inc.+ 2,889 130,547
SkyWest Inc. 2,528 129,560
CTS Corp. 2,545 128,841
Cross Timbers Oil Co. 6,398 122,752
Cheesecake Factory (The)+ 2,833 122,527
Barrett Resources Corp.+ 3,030 $ 114,572
Enzo Biochem Inc.+ 2,348 113,878
FactSet Research Systems Inc. 2,980 112,048
Aspen Technology Inc.+ 2,419 109,157
Pioneer Group Inc. (The)+ 2,480 109,043
Regeneron Pharmaceuticals Inc.+ 3,335 108,804
DMC Stratex Networks Inc.+ 6,687 107,410
Proxim Inc.+ 2,326 103,507
Tetra Tech Inc.+ 3,622 103,453
Verity Inc.+ 2,893 103,244
Insight Enterprises Inc.+ 3,735 101,779
NYFIX Inc.+ 2,260 101,135
Artesyn Technologies Inc.+ 3,458 100,714
Beringer Wine Estates Holdings Inc. "B"+ 1,805 100,290
Aspect Communications Corp.+ 4,749 97,948
Advance Paradigm Inc.+ 2,301 97,073
Dendrite International Inc.+ 3,618 97,008
Pogo Producing Co. 3,694 93,735
Administaff Inc.+ 1,236 93,565
Hain Celestial Group Inc.+ 2,656 93,292
Stone Energy Corp.+ 1,689 92,895
Roper Industries Inc. 2,787 92,494
Heidrick & Struggles International Inc.+ 1,781 91,499
Delta & Pine Land Co. 3,515 90,292
Resmed Inc.+ 2,799 87,469
Noven Pharmaceuticals Inc.+ 2,019 86,312
Electro Scientific Industries Inc.+ 2,446 85,916
Cambrex Corp. 2,304 85,248
Cal Dive International Inc.+ 1,453 83,093
Teledyne Technologies Inc.+ 2,843 82,802
Syncor International Corp.+ 2,186 80,472
AXT Inc.+ 1,913 79,987
Black Box Corp.+ 1,713 79,869
BARRA Inc.+ 1,281 79,502
EGL Inc.+ 2,617 79,164
Aware Inc.+ 2,052 79,002
Renal Care Group Inc.+ 4,205 78,318
Actel Corp.+ 2,177 78,236
RadiSys Corp.+ 1,546 78,170
Polaris Industries Partners LP "A" 2,191 77,233
Hyperion Solutions Corp.+ 2,974 76,952
Insituform Technologies Inc. "A"+ 2,274 76,463
Jack in the Box Inc.+ 3,503 75,096
Alliant Techsystems Inc.+ 836 68,656
Forward Air Corp.+ 1,947 68,510
Copart Inc.+ 4,932 68,432
Adaptive Broadband Corp.+ 3,420 66,690
Buckeye Technologies Inc.+ 3,203 66,462
On Assignment Inc.+ 2,113 66,295
Pre-Paid Legal Services Inc.+ 2,050 66,241
--------------------------------------------------------------------------------
page 44 iShares
<PAGE>
iShares S&P SmallCap 600/BARRA Growth Index Fund
Schedule of Investments (Continued)
September 30, 2000 (Unaudited)
Security Shares Value
-------------------------------------------------------------
COMMON STOCKS (Continued)
-------------------------------------------------------------
Alliance Pharmaceutical Corp.+ 4,325 $ 65,956
Mid Atlantic Medical Services Inc.+ 4,360 65,945
American Management Systems Inc.+ 3,812 65,519
Dril-Quip Inc.+ 1,585 63,202
Atlantic Coast Airlines Holdings+ 1,933 62,218
Helix Technology Corp. 2,074 61,961
Wesley Jessen VisionCare Inc.+ 1,608 61,808
ADVO Inc.+ 1,845 60,885
TrustCo Bank Corp. 4,905 60,393
MacDermid Inc. 2,854 59,934
Graco Inc. 1,857 59,888
Valence Technology Inc.+ 3,429 59,150
Kulicke & Soffa Industries Inc.+ 4,420 58,841
Three-Five Systems Inc.+ 1,983 58,003
eLoyalty Corp.+ 4,524 57,681
Hooper Holmes Inc. 6,058 57,612
Cost Plus Inc.+ 1,903 57,328
FileNET Corp.+ 3,150 57,291
Bio-Technology General Corp.+ 4,988 57,050
HS Resources Inc.+ 1,686 56,692
Fair Isaac and Co. Inc. 1,317 56,219
Dionex Corp.+ 2,030 56,079
Applebee's International Inc. 2,437 56,051
Remedy Corp.+ 2,914 55,002
Chico's FAS Inc.+ 1,610 54,740
Mercury Computer Systems Inc.+ 1,955 54,373
Cabot Oil & Gas Corp. "A" 2,653 54,055
Atwood Oceanics Inc.+ 1,264 52,693
Systems & Computer Technology Corp.+ 2,980 52,336
Sonic Corp.+ 1,642 51,723
Pinnacle Systems Inc.+ 4,583 51,559
Great Plains Software Inc.+ 1,811 50,934
Triarc Companies Inc.+ 2,034 50,087
Hilb Rogal & Hamilton Co. 1,201 50,067
Memberworks Inc.+ 1,500 49,313
Trimble Navigation Ltd.+ 2,130 47,659
C-COR Electronics Inc.+ 3,104 47,530
P-Com Inc.+ 7,087 46,951
ZixIt Corp.+ 1,518 46,299
SCP Pool Corp.+ 1,554 46,037
Organogenesis Inc.+ 3,123 45,908
Progress Software Corp.+ 3,275 44,622
Specialty Equipment Co.+ 1,797 44,363
Viasat Inc.+ 1,966 43,989
Libbey Inc. 1,399 43,544
Manitowoc Co. Inc. 2,262 43,544
General Semiconductor Inc.+ 3,538 43,119
Advanced Tissue Sciences Inc.+ 5,495 $ 40,869
Heartland Express Inc.+ 2,352 40,866
NBTY Inc.+ 6,158 40,219
ADAC Laboratories Inc.+ 1,909 39,731
Concord Communications Inc.+ 1,494 39,591
Fossil Inc.+ 2,949 39,259
Biomatrix Inc.+ 2,146 37,555
Startek Inc.+ 1,281 37,149
Landstar System Inc.+ 790 35,254
Factory 2-U Stores Inc.+ 1,127 34,444
Mentor Corp. 2,166 34,115
Kronos Inc.+ 1,137 34,110
Coca-Cola Bottling Co. 806 33,802
Morrison Management Specialist Inc. 1,133 33,480
Cuno Inc.+ 1,498 33,331
Talk.com Inc.+ 7,254 31,963
Plains Resource Inc.+ 1,669 31,502
InterVoice Inc.+ 2,968 31,164
Project Software & Development Inc.+ 2,003 31,140
Meade Instruments Corp.+ 1,500 30,281
WD-40 Company 1,418 30,133
Cohu Inc. 1,855 28,405
Saga Systems Inc.+ 2,687 28,214
Scott Technologies Inc.+ 1,574 27,889
Cygnus Inc.+ 2,387 26,257
Brightpoint Inc.+ 5,143 25,876
SPSS Inc.+ 890 23,863
Midas Inc. 1,388 19,432
Robotic Vision Systems Inc.+ 3,146 18,778
Visual Networks Inc.+ 2,845 18,670
4Kids Entertainment Inc.+ 1,100 18,562
Immune Response Corp.+ 2,562 17,614
X-Rite Inc. 2,005 17,544
Oshkosh B'gosh Inc. "A" 1,117 16,999
Labor Ready Inc.+ 3,809 15,950
Davox Corp.+ 1,201 12,085
Damark International Inc. "A"+ 519 6,358
-------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $16,464,289) 16,872,340
-------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 99.99%
(Cost $16,464,289) 16,872,340
-------------------------------------------------------------
Other Assets, Less Liabilities -- 0.01% 2,232
-------------------------------------------------------------
NET ASSETS -- 100.00% $16,874,572
=============================================================
+ Non-income earning securities.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Schedules of Investments page 45
<PAGE>
iShares S&P SmallCap 600/BARRA Value Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
-------------------------------------------------------------
COMMON STOCKS - 99.93%
-------------------------------------------------------------
HNC Software Inc.+ 2,314 $ 189,314
Universal Health Services Inc. "B"+ 2,148 183,923
Radian Group Inc. 2,715 183,263
AmeriCredit Corp.+ 5,473 157,691
Pride International Inc.+ 4,710 124,815
Louis Dreyfus Natural Gas Corp.+ 3,107 123,115
Cullen/Frost Bankers Inc. 3,747 121,777
Fidelity National Financial Inc. 4,839 119,765
Dura Pharmaceuticals Inc.+ 3,219 113,872
Cerner Corp.+ 2,436 113,122
Centura Banks Inc. 2,873 110,072
Raymond James Financial Corp. 3,339 109,978
Smithfield Foods Inc.+ 4,086 107,258
Vintage Petroleum Inc. 4,518 102,785
Whole Foods Market Inc.+ 1,887 101,308
Harman International Industries Inc. 2,474 96,733
Hudson United Bancorp 3,491 96,439
First American Financial Corp. 4,582 95,649
Michaels Stores Inc.+ 2,382 95,280
Pier 1 Imports Inc. 6,949 94,246
Toll Brothers Inc.+ 2,641 90,784
Shaw Group Inc.+ 1,286 90,663
Dain Rauscher Corp. 933 86,769
Washington Federal Inc. 3,733 84,926
Men's Wearhouse Inc. (The)+ 2,995 84,796
D.R. Horton Inc. 4,872 83,743
Zale Corp.+ 2,538 82,326
Downey Financial Corp. 2,052 81,054
Ethan Allen Interiors Inc. 2,855 80,832
Bindley Western Industries Inc. 2,508 80,256
First Midwest Bancorp Inc. 2,987 79,529
AnnTaylor Stores Corp.+ 2,066 79,412
Commercial Federal Corp. 4,090 78,221
National Data Corp. 2,374 77,897
Anixter International Inc.+ 2,670 77,764
Avista Corp. 3,381 76,072
OM Group Inc. 1,728 75,384
Cable Design Technologies Corp.+ 3,085 75,004
Stillwater Mining Co.+ 2,762 74,767
Linens 'N Things Inc.+ 2,847 72,598
C-Cube Microsystems Inc.+ 3,525 72,262
Benchmark Electronics Inc.+ 1,381 71,812
Southern Union Co.+ 3,583 70,988
Constellation Brands Inc.+ 1,305 70,878
Piedmont Natural Gas Co. 2,292 $ 70,193
Invacare Corp. 2,152 69,133
Philadelphia Suburban Corp. 2,934 68,032
S3 Inc.+ 6,592 67,980
Southwest Bancorp of Texas Inc.+ 2,054 67,140
Scotts Co. (The) "A"+ 2,000 67,000
IDEXX Laboratories Inc.+ 2,503 66,955
Swift Energy Co.+ 1,600 66,500
United Stationers Inc.+ 2,443 65,656
Mutual Risk Management Ltd. 2,985 65,483
Anchor Gaming+ 820 65,241
Energen Corp. 2,180 64,855
Coventry Health Care Inc.+ 4,238 64,100
La-Z-Boy Chair Co. 4,379 63,769
Silicon Valley Group Inc.+ 2,419 63,650
Penton Media Inc. 2,283 62,783
CEC Entertainment Inc.+ 1,946 62,272
AptarGroup Inc. 2,569 61,495
Imperial Bancorp+ 3,211 61,410
Idex Corp. 2,164 60,457
United Bancshares Inc. 3,033 59,523
Whitney Holding Corp. 1,639 59,516
Delphi Financial Group Inc.+ 1,459 59,089
Alliance Semiconductor Corp.+ 2,947 58,572
Corn Products International Inc. 2,543 57,853
Seacor Smit Inc.+ 1,231 57,395
Earthgrains Company (The) 3,089 56,953
Community First Bankshares Inc. 3,216 56,481
Mueller Industries Inc.+ 2,494 55,959
Spherion Corporation+ 4,614 55,080
Xircom Inc.+ 2,172 54,843
O'Reilly Automotive Inc.+ 3,691 53,981
MascoTech Inc. 3,231 53,513
Florida Rock Industries Inc. 1,348 53,162
UIL Holdings Corporation 1,031 53,032
Diagnostic Products Corp. 983 52,713
Staten Island Bancorp Inc. 2,619 52,380
New Jersey Resources Corp. 1,287 52,284
Central Parking Corp. 2,609 51,691
Avant! Corp.+ 2,831 51,666
NVR Inc.+ 636 51,516
Veritas DGC Inc.+ 1,768 51,162
PolyOne Corp.+ 6,974 50,997
Brady Corp. "A" 1,654 50,033
Ruby Tuesday Inc. 4,441 49,961
Read-Rite Corp.+ 4,415 49,669
--------------------------------------------------------------------------------
page 46 iShares
<PAGE>
iShares S&P SmallCap 600/BARRA Value Index Fund
schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
-----------------------------------------------------------------
COMMON STOCKS (continued)
-----------------------------------------------------------------
Baldor Electric Co. 2,423 $ 49,217
Chittenden Corp. 1,906 48,960
Kent Electronics Corp.+ 2,045 48,824
Lilly Industries Inc. "B" 1,653 48,763
Pharmaceutical Product Development Inc.+ 1,819 48,317
CH Energy Group Inc. 1,201 47,890
Southwest Gas Co. 2,286 47,863
Texas Industries Inc. 1,501 47,844
Jeffries Group Inc. 1,778 47,784
Atmos Energy Corp. 2,310 47,644
National Discounts Brokers Group Inc.+ 1,524 47,149
Firstbank Corp. 1,926 47,067
Tredegar Corporation 2,712 46,952
UGI Corp. 1,934 46,900
Casey's General Store Inc. 3,557 46,241
Oshkosh Truck Corp. 1,185 45,919
Aztar Corp.+ 2,953 45,402
Footstar Inc.+ 1,397 45,141
Burlington Coat Factory Warehouse Corp. 3,150 45,084
ESS Technology Inc.+ 3,125 44,727
ABM Industries Inc. 1,637 44,506
Regis Corp. 2,949 44,235
Photronics Inc.+ 2,006 43,756
SPS Technologies Inc.+ 901 43,699
Susquehanna Bancshares Inc. 2,855 43,539
Washington Group International Inc.+ 3,787 43,314
Trenwick Group Ltd. 2,262 42,978
US Freightways Corp. 1,894 42,970
Queens County Bancorp Inc. 1,478 42,677
Pacific Sunwear of California Inc.+ 2,264 42,450
Reliance Steel & Aluminum Co. 1,988 41,872
Pinnacle Entertainment Inc.+ 1,923 41,825
Belden Inc. 1,770 41,816
Park Electrochemical Corp. 745 41,441
MAF Bancorp Inc. 1,653 41,118
FYI Inc.+ 1,099 41,075
G&K Services Inc. "A" 1,461 40,999
Tucker Anthony Sutro Corporation 1,610 40,854
Northwest Natural Gas Co. 1,790 40,723
Werner Enterprises Inc. 3,411 40,079
Polymedica Industries Inc.+ 925 39,659
M.D.C. Holdings Inc. 1,520 39,520
South Financial Group Inc. (The) 3,123 39,428
Circle International Group Inc. 1,287 38,932
UniSource Energy Corp. 2,366 $ 38,743
Simpson Manufacturing Co. Inc.+ 857 38,297
JLG Industries Inc. 3,139 38,257
Performance Food Group Co.+ 1,007 37,888
Lennox International Inc. 4,038 37,856
Owens & Minor Inc. 2,398 37,769
Standard-Pacific Corp. 2,096 37,728
American Freightways Corp.+ 2,358 37,433
Hutchinson Technology Inc.+ 1,776 37,407
St. Mary Land & Exploration Co. 1,620 37,361
Fleming Companies Inc. 2,855 37,293
Datascope Corp. 1,087 36,414
Morgan Keegan Inc. 2,080 36,400
Enhance Financial Services Group Inc. 2,775 36,075
Cooper Companies Inc. 1,005 35,552
Profit Recovery Group International Inc.
(The)+ 3,591 35,461
Ciber Inc.+ 4,296 35,442
Input/Output Inc.+ 3,675 35,372
Analogic Corp. 913 35,093
Respironics Inc.+ 2,090 34,877
Pegasus Systems Inc.+ 1,776 34,743
CLARCOR Inc. 1,776 34,632
Kirby Corp.+ 1,736 34,069
Stein Mart Inc.+ 3,137 33,919
Southwest Securities Group Inc. 1,159 33,901
Hughes Supply Inc. 1,724 33,825
Milacron Inc. 2,537 33,774
Allen Telecom Inc.+ 1,986 33,638
Provident Bankshares Corp. 1,998 33,467
MAXIMUS Inc.+ 1,501 33,210
Selective Insurance Group Inc. 1,857 33,194
Prime Hospitality Corp.+ 3,255 32,957
Valmont Industries Inc. 1,653 32,853
Fleetwood Enterprises Inc. 2,386 32,360
NorthWestern Corp. 1,645 32,078
Fritz Companies Inc.+ 2,667 32,004
Tower Automotive Inc.+ 3,407 31,941
THQ Inc.+ 1,362 31,667
Harland (John H.) Co. 2,068 31,666
Agribrands International Inc.+ 720 31,410
Kellwood Co. 1,701 31,043
Ralcorp Holdings Inc.+ 2,186 30,877
Steel Dynamics Inc.+ 3,359 30,861
Quiksilver Inc.+ 1,597 30,742
Great Atlantic & Pacific Tea Co. 2,740 30,311
--------------------------------------------------------------------------------
iShares Schedules of Investments page 47
<PAGE>
iShares S&P SmallCap 600/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
-------------------------------------------------------------
COMMON STOCKS (continued)
-------------------------------------------------------------
Michael Foods Inc. 1,295 $ 30,271
US Oncology Inc.+ 6,599 29,902
Interface Inc. 3,748 29,867
BE Aerospace Inc.+ 1,830 29,509
Nautica Enterprises Inc.+ 2,276 29,446
Phoenix Technologies Ltd.+ 1,846 29,421
Laclede Gas Co. 1,345 29,086
Ryland Group Inc. 929 28,799
Arch Chemicals Inc. 1,577 28,780
Russ Berrie & Co. Inc. 1,454 28,717
Brooktrout Technology Inc.+ 869 28,623
GBC Bancorp 840 28,613
Paxar Corp.+ 3,197 28,573
Toro Co. 905 28,508
Wolverine World Wide Inc. 3,019 28,114
NUI Corp. 930 28,074
Dress Barn Inc.+ 1,297 27,237
Yellow Corporation+ 1,797 27,180
IHOP Corp.+ 1,417 27,100
Pioneer-Standard Electronics Inc. 1,998 27,098
Oceaneering International Inc.+ 1,621 26,949
Auspex Systems Inc.+ 2,174 26,903
RLI Corp. 697 26,878
Offshore Logistics Inc.+ 1,502 26,848
Zenith National Insurance Corp. 1,221 26,709
School Specialty Inc.+ 1,251 26,662
Rollins Truck Leasing Corp. 4,216 26,614
Anchor Bancorp Wisconsin Inc. 1,696 26,606
General Communication Inc. "A"+ 3,712 26,564
Salton/Maxim Corp.+ 808 26,109
Intermagnetics General Corp.+ 973 25,906
Commercial Metals Co. 1,013 25,831
Riggs National Corp. 2,084 25,529
Regal-Beloit Corp. 1,494 25,338
Symmetricom Inc.+ 1,615 25,234
Brush Wellman Inc. 1,165 25,193
Electroglas Inc.+ 1,470 25,082
Seitel Inc.+ 1,742 25,041
Applied Industrial Technologies Inc. 1,445 25,017
American Italian Pasta Co.+ 1,302 24,982
Friede Goldman Halter Inc.+ 3,527 24,909
GenCorp. Inc. 3,047 24,757
Roadway Express Inc. 1,378 24,718
Avid Technology Inc.+ 1,761 24,654
Ionics Inc.+ 1,153 $ 24,573
Esterline Corp.+ 1,234 24,294
Patina Oil & Gas Corp. 1,210 24,200
Standard Microsystems Corp.+ 1,109 24,190
SpeedFam-IPEC Inc.+ 2,114 24,179
Audiovox Corp. "A"+ 1,602 24,130
Barnes Group Inc. 1,313 24,126
Ultratech Stepper Inc.+ 1,502 24,126
Volt Information Sciences Inc.+ 1,103 23,715
Bowne & Co. Inc. 2,397 23,371
Vital Sign Inc. 881 23,347
Nuevo Energy Co.+ 1,253 23,024
Orbital Sciences Corp.+ 2,723 22,805
AAR Corp. 1,978 22,622
Shopko Stores Inc.+ 2,176 22,576
ChemFirst Inc. 1,083 22,540
Chemed Corp. 708 22,523
Thomas Industries Inc. 1,105 22,376
Monaco Coach Corp.+ 1,345 22,193
Arctic Cat Inc. 1,751 22,106
Cato Corp. "A" 1,762 22,025
Marcus Corp. 2,086 21,903
Inter-Tel Inc. 1,924 21,885
CDI Corp.+ 1,357 21,712
Arkansas Best Corp.+ 1,409 21,663
Telxon Corp.+ 1,228 21,490
Foster Wheeler Corp. 2,959 21,453
RTI International Metals Inc.+ 1,485 21,440
Caraustar Industries Inc. 1,894 20,952
AO Smith Corp. "B" 1,666 20,929
Kaman Corp. "A" 1,649 20,819
Phillips-Van Heusen Corporation 2,002 20,646
Watsco Inc. 1,982 20,395
Elcor Corp. 1,397 20,256
Midwest Express Holdings Inc.+ 997 20,065
Thor Industries Inc. 861 19,911
E.W. Blanch Holdings Inc. 949 19,692
Telcom Semiconductor Inc.+ 1,320 19,635
Myers Industries Inc. 1,546 19,615
Watts Industries Inc. "A" 1,948 19,480
American States Water Co. 637 19,269
Pep Boys-Manny Moe & Jack Inc. 3,844 19,220
Midway Games Inc.+ 2,743 19,201
Winnebago Industries Inc. 1,534 19,175
Quanex Corp. 1,001 19,082
Exabyte Corp.+ 1,693 19,046
--------------------------------------------------------------------------------
page 48 iShares
<PAGE>
ishares S&P SmallCap 600/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
----------------------------------------------------------------
COMMON STOCKS (continued)
----------------------------------------------------------------
MICROS Systems Inc.+ 1,229 $ 18,512
Robbins & Myers Inc. 780 18,428
Ha-Lo Industries Inc.+ 4,596 18,384
Ryan's Family Steak Houses Inc.+ 2,370 18,219
Panera Bread Co. "A"+ 872 18,203
Aaron Rents Inc. "B" 1,410 18,154
SLI Inc. 2,470 18,062
CACI International Inc. "A"+ 830 17,793
Gardner Denver Inc.+ 1,089 17,696
New England Business Service Inc. 961 17,418
Group 1 Automotive Inc.+ 1,597 17,367
Fremont General Corp. 5,045 17,342
Lawson Products Inc. 713 17,246
Standex International Corp. 893 17,246
Consolidated Products Inc.+ 2,142 17,136
Checkpoint Systems Inc.+ 2,210 16,713
K Swiss Inc. "A" 740 16,650
Remington Oil & Gas Corp.+ 1,589 16,585
Griffon Corporation+ 2,186 16,532
Universal Forest Products Inc. 1,433 16,368
Network Equipment Technologies Inc.+ 1,526 16,309
QRS Corp.+ 1,081 16,283
Sturm Ruger & Co. Inc. 1,974 16,162
Southwestern Energy Company 1,842 16,118
United Natural Foods Inc.+ 1,301 16,100
Omnova Solutions Inc. 2,883 16,037
Parexel International Corp.+ 1,875 15,938
Stride Rite Corp. 3,139 15,891
Simpson Industries Inc. 1,273 15,594
Republic Group Inc. 841 15,453
Wet Seal Inc. "A"+ 981 15,389
Wabash National Corp. 1,677 15,303
Lindsay Manufacturing Co. 817 15,217
URS Corp.+ 1,137 15,065
National Presto Industries Inc. 501 14,999
Chiquita Brands International Inc. 4,793 14,978
Astec Industries Inc.+ 1,366 14,941
Conmed Corp.+ 1,089 14,906
Deltic Timber Corp. 877 14,854
Pope & Talbot Inc. 1,037 14,842
Schweitzer-Mauduit International Inc. 1,101 14,726
Tetra Technologies Inc.+ 965 14,656
Pediatrix Medical Group Inc.+ 1,125 14,555
Champion Enterprises Inc.+ 3,423 14,548
Information Resources Inc.+ 2,130 $ 14,511
Innovex Inc. 1,057 14,402
Gerber Scientific Inc. 1,641 14,154
Theragenics Corp.+ 2,162 14,053
Cash American Investments Inc. 1,898 13,879
BMC Industries Inc. 2,010 13,819
Cascade Natural Gas Corp. 785 13,737
Department 56 Inc.+ 1,029 13,570
Intermet Corp. 1,866 13,528
SCPIE Holdings Inc. 669 13,464
Insurance Auto Auctions Inc.+ 825 13,355
Skyline Corp. 617 13,150
M.S. Carriers Inc.+ 833 13,016
Mesa Air Group Inc.+ 2,370 12,961
Lydall Inc.+ 1,125 12,867
Wolverine Tube Inc.+ 865 12,867
Tenneco Automotive Inc. 2,478 12,855
Bangor Hydro-Electric Co. 524 12,674
Jakks Pacific Inc.+ 1,345 12,651
Material Sciences Corp.+ 1,093 12,433
Ames Department Stores Inc.+ 2,134 12,337
CPI Corp. 574 12,197
Analysts International Corp. 1,669 12,048
Bassett Furniture Industries Inc. 844 11,974
Brown Shoe Company Inc. 1,301 11,953
AVT Corp.+ 2,114 11,759
ePresence Inc.+ 1,722 11,623
Coachmen Industries Inc. 1,109 11,575
Apogee Enterprises Inc. 2,034 11,568
Landry's Seafood Restaurants Inc. 1,676 11,418
K2 Inc.+ 1,277 11,413
Flow International Corp.+ 1,049 11,408
Edgewater Technology Inc.+ 2,162 11,350
CKE Restaurant Inc. 3,655 11,193
Franklin Covey Co.+ 1,525 11,152
Consolidated Graphics Inc.+ 923 10,845
Butler Manufacturing Co. 472 10,827
Sola International Inc.+ 1,674 10,776
Quaker Chemical Corp. 628 10,676
Epicor Software Corp.+ 3,014 10,549
Dimon Inc. 3,231 10,501
Fedders Corp. 2,587 10,025
Kroll-O'Gara Co. (The)+ 1,645 9,870
Applica Inc.+ 1,594 9,863
Sunrise Medical Inc.+ 1,642 9,852
Billing Concepts Corp.+ 3,075 9,802
--------------------------------------------------------------------------------
iShares Schedules of Investments page 49
<PAGE>
iShares S&P SmallCap 600/BARRA Value Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
---------------------------------------------------------------------
COMMON STOCKS (continued)
---------------------------------------------------------------------
Gymboree Co.+ 1,798 $ 9,777
Oxford Industries Inc. 545 9,742
Jo-Ann Stores Inc.+ 1,341 9,722
Osteotech Inc.+ 1,013 9,687
Castle (A.M.) & Co. 1,001 9,635
Goody's Family Clothing Inc.+ 2,418 9,521
Sierra Health Services Inc.+ 1,986 9,309
Discount Auto Parts Inc.+ 1,189 9,140
Natures Sunshine Products Inc. 1,209 8,992
Digi International Inc.+ 1,123 8,844
Titan International Inc. 1,534 8,821
Luby's Inc. 1,657 8,803
Nash Finch Co. 813 8,486
Cone Mills Corp.+ 1,874 8,433
Central Vermont Public Service Corporation 817 8,323
Nelson (Thomas) Inc. 1,013 8,294
Penford Corp. 529 8,200
Hologic Inc.+ 1,093 8,129
J & J Snack Foods Corp.+ 628 8,125
Laser Vision Centers Inc.+ 1,866 8,105
Ashworth Inc.+ 1,025 8,072
Building Materials Holdings Corp.+ 905 8,032
Mississippi Chemical Corp. 1,921 7,684
TBC Corp.+ 1,569 7,649
Huffy Corp. 724 7,602
Royal Appliance Manufacturing Co.+ 1,177 6,988
IMCO Recycling Inc. 1,158 6,948
Hancock Fabrics Inc. 1,389 6,945
Commonwealth Industries 1,245 6,925
Standard Motor Products Inc. 865 6,920
Itron Inc.+ 1,123 6,878
Cross (A.T.) Company+ 1,274 6,848
Spacelabs Medical Inc.+ 677 6,685
Bombay Co. Inc. (The)+ 2,643 6,442
Hartmarx Corp.+ 2,142 6,426
Lillian Vernon Corporation 640 6,240
Birmingham Steel Corp. 2,270 6,101
Angelica Corp. 617 5,977
Amcast Industrial Corp. 633 5,974
Enesco Group Inc. 1,015 5,963
Haggar Corp. 469 5,862
Gottschalks Inc.+ 947 5,800
Hanger Orthopedic Group Inc.+ 1,422 5,332
Mayor's Jewelers Inc.+ 1,302 4,882
Shares or
Security Principal Value
---------------------------------------------------------------------
Computer Task Group Inc. 1,546 $ 4,831
Steel Technologies Inc. 765 4,829
Baker (J.) Inc. 1,061 4,774
Cyrk Inc.+ 1,175 4,039
Action Performance Companies Inc.+ 1,165 4,005
Taco Cabana Inc. "A"+ 875 3,773
Nashua Corp. 424 3,578
Books-A-Million Inc.+ 1,346 3,533
Curative Health Services Inc.+ 632 3,437
Dixie Group Inc.+ 871 3,375
Frozen Food Express Industries Inc.+ 1,221 3,129
Green Mountain Power Corp. 389 2,942
Spartan Motors Inc. 900 2,813
Guilford Mills Inc. 1,426 2,674
Insteel Industries Inc. 601 2,442
---------------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $13,581,874) 14,408,064
---------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.04%
---------------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$5,545 and an effective yield of
6.25%. $5,542 5,542
---------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $5,542) 5,542
---------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 99.97%
(Cost $13,587,416) 14,413,606
---------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.03% 4,625
---------------------------------------------------------------------
NET ASSETS -- 100.00% $14,418,231
=====================================================================
+ Non-income earning securities.
See notes to financial statements.
--------------------------------------------------------------------------------
page 50 iShares
<PAGE>
iShares S&P Europe 350 Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
-----------------------------------------------------------------------------
COMMON STOCKS - 98.89%
-----------------------------------------------------------------------------
AUSTRIA - 0.08%
-----------------------------------------------------------------------------
Bank Austria AG 156 $ 8,476
OMV AG 32 2,313
VA Technologie AG 24 1,208
-----------------------------------------------------------------------------
11,997
-----------------------------------------------------------------------------
BELGIUM - 0.90%
-----------------------------------------------------------------------------
Algemene Maatschappij voor Nijverheidskredit NV 248 10,026
Credit Communal de Belgique SA 188 28,028
Electrabel SA 92 19,319
Fortis "B" 1,488 45,774
Groupe Bruxelles Lambert SA 40 9,713
KBC Bancassurance Holding NV 264 11,069
UCB SA 256 8,901
-----------------------------------------------------------------------------
132,830
-----------------------------------------------------------------------------
DENMARK - 0.15%
-----------------------------------------------------------------------------
Tele Danmark A/S 400 21,995
-----------------------------------------------------------------------------
21,995
-----------------------------------------------------------------------------
FINLAND - 3.66%
-----------------------------------------------------------------------------
Nokia OYJ 12,000 486,402
Sonera Group OYJ 800 20,337
Stora Enso OYJ 1,200 10,052
UPM-Kymmene OYJ 800 20,457
-----------------------------------------------------------------------------
537,248
-----------------------------------------------------------------------------
FRANCE - 14.14%
-----------------------------------------------------------------------------
Accor SA 548 20,345
Air Liquide 252 29,562
Alcatel SA 3,168 202,738
Alstom 308 7,109
Assurances Generales de France 252 13,569
Aventis SA 1,864 139,855
AXA UAP 864 112,872
Banque National de Paris 1,052 92,767
Bouygues SA 440 22,177
Canal Plus 180 26,963
Cap Gemini SA 240 45,124
Carrefour Supermarche SA 1,588 117,324
Castorama Dubois Investissement SA 44 9,710
Christian Dior SA 236 $ 12,718
Compagnie de Saint Gobain 232 29,182
Compagnie Generale des Etablissements Michelin "B" 376 10,455
Credit Lyonnais SA 600 21,873
Dassault Systemes SA 100 8,134
Essilor International SA 16 3,940
Etablissements Economiques du Casino
Guichard-Perrachon SA 96 9,059
France Telecom SA 1,016 108,874
Groupe Danone 364 49,995
Lafarge SA 292 20,104
Lagardere S.C.A. 380 23,027
Legrand SA 36 5,911
L'Oreal SA 864 67,075
LVMH 804 60,714
Pechiney SA "A" 180 7,198
Pinault-Printemps-Redoute SA 180 31,698
PSA Peugeot Citroen 96 17,058
Renault SA 372 15,958
Sagem SA 40 8,541
Sanofi-Synthelabo SA 916 49,241
Schneider SA 376 23,697
Societe Generale "A" 1,080 60,392
Societe Television Francaise 1 352 20,196
Sodexho Alliance SA 56 8,903
STMicroelectronics NV 1,084 53,153
Suez Lyonnaise des Eaux SA 476 73,823
Thomson CSF 160 6,742
Total SA "B" 1,976 289,190
Usinor SA 676 6,140
Valeo SA 164 7,111
Vivendi 1,660 123,377
-----------------------------------------------------------------------------
2,073,594
-----------------------------------------------------------------------------
GERMANY - 9.27%
-----------------------------------------------------------------------------
Adidas AG 200 10,945
Allianz AG 400 131,169
BASF AG 1,600 56,846
Bayer AG 2,000 73,970
Bayerische Hypo-und Vereinsbank AG 800 43,782
Bayerische Motoren Werke AG 800 27,328
Commerzbank AG 1,200 35,590
Continental AG 400 7,026
--------------------------------------------------------------------------------
iShares Schedules of Investments page 51
<PAGE>
iShares S&P Europe 350 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
GERMANY (continued)
--------------------------------------------------------------
DaimlerChrysler AG 2,200 $ 98,126
Degussa-Huels AG 200 5,455
Deutsche Bank AG 1,600 132,758
Deutsche Lufthansa AG 1,000 20,434
Deutsche Telekom AG 3,400 116,746
Dresdner Bank AG 800 34,849
EM TV & Merchandising AG 200 10,451
Epcos AG+ 200 16,242
Infineon Technologies AG+ 400 19,931
Linde AG 200 8,086
MAN AG 200 5,243
Metro AG 400 16,383
Muenchener
Rueckversicherungs-Gesellschaft AG 200 59,494
Preussag AG 200 6,126
RWE AG 1,000 35,131
SAP AG 200 38,486
Schering AG 400 25,987
Siemens AG 1,400 180,115
Thyssen Krupp AG 1,000 13,443
Veba AG 1,800 92,789
Volkswagen AG 800 36,720
--------------------------------------------------------------
1,359,651
--------------------------------------------------------------
IRELAND - 0.42%
--------------------------------------------------------------
Allied Irish Bank PLC 2,280 24,593
Bank of Ireland 2,536 20,281
CRH PLC 1,024 16,306
--------------------------------------------------------------
61,180
--------------------------------------------------------------
ITALY - 4.57%
--------------------------------------------------------------
Alitalia SpA+ 4,000 7,079
Assicurazioni Generali SpA 3,200 102,958
Banca di Roma SpA 10,000 10,637
Banca Intesa SpA 12,000 46,289
Bipop Carire SpA 4,000 35,202
Enel SpA 10,780 41,773
ENI SpA 14,000 74,147
Mediaset SpA 2,000 29,800
Mediobanca Banca SpA 1,000 10,619
Olivetti SpA 10,000 27,540
Pirelli SpA 4,000 $ 11,758
Riunione Adriatica di Sicurta SpA 1,000 13,152
Rolo Banca SpA 400 7,097
San Paolo - IMI SpA 3,000 48,778
Telecom Italia Mobile SpA 8,000 64,684
Telecom Italia SpA 6,000 32,731
Telecom Italia SpA "A" 6,000 63,766
Unicredito Italiano SpA 8,000 41,734
--------------------------------------------------------------
669,744
--------------------------------------------------------------
NETHERLANDS - 8.52%
--------------------------------------------------------------
ABN AMRO Holding NV 3,400 79,231
Aegon NV 2,376 89,659
Akzo Nobel NV 796 33,586
ASM Lithography Holding NV+ 880 29,207
Burhmann NV 160 4,025
DSM NV 188 5,436
Elsevier NV 1,708 19,147
Equant NV+ 392 14,273
Fortis Amev NV 1,368 41,901
Getronics NV 940 9,442
Gucci Group NV 76 7,688
Hagemeyer NV 252 6,695
Heineken NV 376 20,909
ING Groep NV 2,272 151,374
Koninklijke Ahold NV 1,488 42,201
Numico NV 376 19,300
Philips Electronics NV 3,655 157,345
Randstad Holding NV 192 4,813
Royal Dutch Petroleum Co. 5,540 334,926
Royal KPN NV 1,531 33,345
TNT Post Group NV 744 17,305
Unilever NV 1,588 77,095
United Pan-Europe Communications NV+ 460 9,006
VNU NV 528 26,566
Wolters Kluwer NV 772 15,673
--------------------------------------------------------------
1,250,148
--------------------------------------------------------------
NORWAY - 0.21%
--------------------------------------------------------------
Norsk Hydro ASA 400 16,740
Orkla ASA 400 7,753
Petroleum Geo-Services+ 400 6,784
--------------------------------------------------------------
31,277
--------------------------------------------------------------
--------------------------------------------------------------------------------
page 52 iShares
<PAGE>
iShares S&P Europe 350 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
PORTUGAL - 0.57%
--------------------------------------------------------------
Banco Comercial Portugues SA "R" 4,540 $ 23,845
Banco Espirito Santo e Comercial de
Lisboa SA 240 3,813
Brisa-Auto Estradas de Portugal SA 792 6,585
Cimentos De Portugal SA 248 5,681
EDP - Electricidade de Portugal SA 4,084 12,906
Portugal Telecom 2,592 26,655
Telecel-Comunicacoes Pessoais SA+ 292 3,663
--------------------------------------------------------------
83,148
--------------------------------------------------------------
SPAIN - 4.36%
--------------------------------------------------------------
Acerinox SA 128 3,390
Autopistas Concesionaria Espanola SA 372 2,922
Banco Bilbao Vizcaya SA 8,760 132,379
Banco Popular Espanol SA 572 17,545
Banco Santander Central Hispano SA 12,224 134,229
Bankinter SA 180 7,198
Endesa SA 2,940 55,276
Gas Natural SDG SA 360 6,003
Iberdrola SA 2,180 27,710
Repsol SA 2,312 42,551
Tabacalera SA "A" 820 11,834
Telefonica SA+ 9,060 179,538
Terra Networks SA+ 180 7,309
Union Electrica Fenosa SA 676 12,179
--------------------------------------------------------------
640,063
--------------------------------------------------------------
SWEDEN - 3.73%
--------------------------------------------------------------
Atlas Copco AB "B" 400 6,869
Electrolux AB "B" 800 10,044
Hennes & Mauritz AB 1,200 24,030
Nordic Baltic Holding AB 6,000 42,956
Sandvik AB 800 16,062
Securitas AB "B" 800 17,473
Skandia Forsakrings AB 2,400 47,563
Skandinaviska Enskilda Banken (SEB) 1,200 14,505
Skanska AB "B" 400 13,717
Svenska Cellulosa AB "B" 400 7,056
Svenska Handelsbanken AB "B" 1,600 25,732
Telefonakfiebolaget Ericsson AB 19,200 291,852
Telia AB+ 2,400 15,813
Volvo AB "B" 800 12,908
--------------------------------------------------------------
546,580
--------------------------------------------------------------
SWITZERLAND - 8.20%
--------------------------------------------------------------
ABB Ltd. 800 $ 77,800
Adecco SA 40 25,933
Ciba Specialty Chemicals AG 400 21,997
Cie de Financement Foncier 20 60,145
Clariant AG 40 11,531
Credit Suisse Group 680 127,143
Nestle SA 100 208,394
Novartis AG 200 306,802
Roche Holding AG 8 70,391
SAirGroup 40 5,719
Schweizerische Rueckversicherungs-
Gesellschaft 40 76,411
Union Bank of Switzerbank 1,160 154,443
Zurich Allied AG 120 55,502
--------------------------------------------------------------
1,202,211
--------------------------------------------------------------
UNITED KINGDOM - 40.11%
--------------------------------------------------------------
Abbey National PLC 3,952 52,273
Aegis Group PLC 3,000 6,628
Airtours PLC 988 3,121
Alliance & Leicester PLC 1,484 12,622
Allied Domecq PLC 2,968 14,782
Allied Zurich PLC 4,380 49,552
AMVESCAP PLC 1,652 35,646
Anglian Water PLC 756 6,491
Anglo American PLC 648 34,447
Arm Holdings PLC+ 2,316 25,876
Associated British Foods PLC 1,080 5,427
BAA PLC 2,968 23,314
Bank of Scotland 3,476 30,669
Barclays PLC 4,116 114,178
Bass PLC 2,440 23,854
BBA Group PLC 1,224 6,765
BG Group PLC 9,736 61,656
Billiton PLC 4,516 16,101
Blue Circle Industries PLC 1,992 12,077
BOC Group PLC 1,368 18,014
Bodycote International PLC 720 1,782
Boots Co. PLC 2,500 18,862
BP Amoco PLC 61,060 542,793
BPB Industries PLC 1,272 4,549
British Aerospace PLC 8,316 44,951
British Airways PLC 3,004 12,720
British American Tobacco PLC 6,048 39,038
--------------------------------------------------------------------------------
iShares Schedules of Investments page 53
<PAGE>
iShares S&P Europe 350 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
UNITED KINGDOM (continued)
--------------------------------------------------------------
British Land Co. PLC 1,440 $ 9,497
British Sky Broadcasting Group PLC+ 1,828 28,123
British Telecommunications PLC 17,596 184,895
Bunzl PLC 1,272 7,125
Cable & Wireless PLC 7,708 109,815
Cadbury Schweppes PLC 5,644 33,323
Capita Group PLC 1,812 16,001
Carlton Communications PLC 1,780 13,877
Centrica PLC 11,108 35,541
CGU PLC 6,240 88,347
CMG PLC 1,660 32,114
Cobham PLC 256 4,001
Colt Telecom PLC+ 1,408 40,244
Computacenter PLC 264 1,307
Cookson Group PLC 2,016 5,646
Corus Group PLC 8,664 6,594
Daily Mail and General Trust "A" 772 11,113
Diageo PLC 8,840 78,845
Dixons Group PLC 5,308 16,533
Electrocomponents PLC 1,204 12,927
EMAP PLC 704 9,364
EMI Group PLC 2,188 17,510
Energis PLC 2,332 16,439
Enterprise Oil PLC 1,384 11,137
Exel PLC 824 13,030
FirstGroup PLC 1,204 3,888
FKI PLC 1,596 4,187
Gallaher Group PLC 1,748 10,488
GKN PLC "B" 2,004 19,932
Glaxo Wellcome PLC 10,128 305,499
Granada Compass PLC+ 2,800 26,111
Great Universal Stores PLC 2,796 17,779
Halifax PLC 6,244 53,291
Hammerson PLC 792 4,875
Hanson PLC 2,040 11,351
Hays PLC 4,796 27,838
HSBC Holdings PLC 22,760 323,586
IMI PLC 976 3,033
Imperial Chemical Industries PLC 2,024 11,531
Imperial Tobacco Group PLC 1,448 13,803
Invensys PLC 9,720 21,368
J Sainsbury PLC 3,260 18,007
Johnson Matthey PLC 616 $ 8,576
Kingfisher PLC 3,824 24,994
Ladbroke Group PLC 4,164 11,908
Land Securities PLC 1,452 16,513
Laporte PLC 544 4,076
Laporte PLC "B"+ 4,896 44
LASMO PLC 3,472 6,709
Legal & General Group PLC 14,280 34,506
Lloyds TSB Group PLC 14,684 136,936
Logica PLC 1,116 36,516
Lonrho PLC 492 6,544
Marconi PLC 7,576 103,680
Marks & Spencer PLC 7,988 23,965
Misys PLC 1,596 15,025
National Grid Group PLC 4,124 35,746
National Power PLC 3,116 21,690
Next PLC 952 10,172
Northern Rock PLC 1,172 6,855
Nycomed Amersham PLC "A" 1,760 17,284
Old Mutual PLC 9,572 23,059
Pearson PLC 1,648 45,643
Pearson PLC Rights (Expires 10/02/00)+ 449 12,435
Peninsular & Oriental Steam Navigation
Co. PLC 1,860 16,287
Pilkington PLC 3,056 3,715
Powergen PLC 1,808 13,814
Provident Financial PLC 688 8,566
Prudential Corp. PLC 5,448 74,155
Psion PLC 888 9,685
Railtrack Group PLC 1,428 23,405
Rank Group PLC 1,948 4,765
Reckitt Benckiser PLC 1,460 17,887
Reed International PLC 3,184 25,151
Rentokil Initial PLC 6,340 14,172
Reuters Group PLC 3,956 74,894
Rio Tinto PLC 3,092 45,011
RMC Group PLC 728 6,332
Rolls Royce PLC 3,984 10,054
Royal Bank of Scotland Group PLC 6,576 138,587
Royal Sun Alliance Industries Group PLC 3,972 26,636
Safeway PLC 2,912 12,384
Sage Group PLC 3,520 26,271
Schroders PLC 376 7,624
Scottish & Southern Energy PLC 2,380 19,416
--------------------------------------------------------------------------------
page 54 iShares
<PAGE>
iShares S&P Europe 350 Index Fund
Schedule of Investments (continued)
September 30, 2000 (Unaudited)
Security Shares Value
--------------------------------------------------------------
COMMON STOCKS (continued)
--------------------------------------------------------------
UNITED KINGDOM (continued)
--------------------------------------------------------------
Scottish Newcastle Breweries PLC 1,732 $ 10,584
Scottish Power PLC 5,136 39,850
Sema Group PLC 864 14,812
Severn Trent PLC 952 10,327
Shell Transport & Trading Co. PLC 27,620 225,324
Slough Estates PLC 1,044 5,454
Smith W.H. Group PLC 696 3,250
SmithKline Beecham PLC 15,628 213,527
Smiths Industries PLC 880 9,162
South African Breweries PLC 1,568 10,637
Spirent PLC 1,728 17,034
Stagecoach Holdings PLC 3,092 3,210
Standard Chartered PLC 2,536 36,711
Tate & Lyle PLC 1,196 4,163
Telewest Communications PLC+ 3,932 7,583
Tesco PLC 19,004 69,302
Thames Water PLC 976 17,504
3i Group PLC 1,680 41,786
TI Group PLC 1,404 7,470
Tomkins PLC 2,640 6,477
Trinity Mirror PLC 804 5,846
Unilever PLC 8,088 52,385
United News & Media PLC 1,400 15,073
United Utilities PLC 1,528 15,548
Vodafone Group PLC ADR 165,468 616,865
Whitbread PLC 1,380 8,882
Williams PLC 2,032 9,760
WM Morrison Supermarkets PLC 4,024 10,095
Wolseley PLC 1,596 7,784
Woolwich PLC 4,228 23,760
WPP Group PLC 2,152 25,698
Zeneca Group PLC 4,908 257,209
--------------------------------------------------------------
5,882,862
--------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $15,590,738) 14,504,528
--------------------------------------------------------------
Shares or
Security Principal Value
----------------------------------------------------------------
PREFERRED STOCKS - 0.67%
----------------------------------------------------------------
GERMANY - 0.67%
----------------------------------------------------------------
SAP AG - Vorzug 400 $ 98,156
----------------------------------------------------------------
98,156
----------------------------------------------------------------
TOTAL PREFERRED STOCKS
(Cost: $90,522) 98,156
----------------------------------------------------------------
REPURCHASE AGREEMENT - 0.21%
----------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00, with a maturity value of
$30,822 and an effective yield of
6.25%. $30,806 30,806
----------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $30,806) 30,806
----------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 99.77%
(Cost $15,712,066) 14,633,490
----------------------------------------------------------------
Other Assets, Less Liabilities -- 0.23% 34,259
----------------------------------------------------------------
NET ASSETS -- 100.00% $14,667,749
================================================================
+ Non-income earning securities.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Schedules of Investments page 55
<PAGE>
iShares S&P/TSE 60 Index Fund
Schedule of Investments
September 30, 2000 (Unaudited)
Security Shares Value
-------------------------------------------------------------
COMMON STOCKS - 99.52%
-------------------------------------------------------------
Nortel Networks Corp. 34,500 $2,073,074
Canadian Imperial Bank of Commerce 23,700 780,228
Celestica Inc.+ 9,900 682,452
Toronto Dominion Bank 18,300 537,949
Seagrams Co. Ltd. 7,800 449,760
BCE Inc. 15,900 370,640
Bank of Nova Scotia 12,000 349,162
Bombardier Inc. "B" 19,800 342,378
Shaw Communications Inc. "B" 13,500 309,756
Canadian National Railway Company 9,600 282,203
Thomson Corp. 6,300 249,302
Rogers Communications "B"+ 9,600 227,614
Canadian Pacific Ltd. 8,700 226,237
Precision Drilling Corp.+ 6,000 214,884
Inco Ltd.+ 13,200 212,450
Mitel Corp.+ 9,900 197,526
Magna International Inc. "A" 4,500 196,029
Placer Dome Inc. 19,200 179,409
Teleglobe Inc. 7,800 164,186
United Dominion Industries Ltd. 6,900 163,598
Brascan Corp. 11,700 151,346
Quebecor World Inc. 4,500 102,055
Dofasco Inc. 6,300 96,369
Domtar Inc. 11,100 95,231
ATI Technologies Inc.+ 11,100 90,433
Potash Corp. of Saskatchewan Inc. 1,500 78,312
Suncor Energy Inc. 3,300 72,865
Alcan Aluminum Ltd. 2,100 61,033
BioChem Pharma Inc.+ 2,700 59,527
Noranda Corp. 6,000 56,864
Hudson Bay Company 5,100 52,235
Nova Chemicals Corp. 2,400 45,571
Abitibi-Consolidated Inc. 2,400 22,426
Geac Computer Corp. Ltd.+ 3,900 21,788
National Bank of Canada 1,200 18,994
Canadian Tire Corp. Ltd. "A" 1,200 15,243
Manulife Financial Corp. 300 6,305
-------------------------------------------------------------
TOTAL COMMON STOCKS
(Cost: $8,862,755) 9,255,434
-------------------------------------------------------------
REPURCHASE AGREEMENT - 0.11%
---------------------------------------------------------------
Investors Bank & Trust Tri Party
Repurchase Agreement, dated 09/29/00,
due 10/02/00 with a maturity value of
$9,782 and an effective yield of
6.25%. $ 9,776 $ 9,776
---------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(Cost: $9,776) 9,776
---------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES -- 99.63%
(Cost $8,872,531) 9,265,210
---------------------------------------------------------------
Other Assets, Less Liabilities -- 0.37% 34,618
---------------------------------------------------------------
NET ASSETS -- 100.00% $9,299,828
===============================================================
+ Non-income earning securities.
See notes to financial statements.
--------------------------------------------------------------------------------
page 56 iShares
<PAGE>
Statements of Assets and Liabilities
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
-------------------------------------------------------
500/BARRA 500/BARRA MidCap
500 Growth Value 400
Index Fund Index Fund Index Fund Index Fund
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost $1,719,187,951 $79,644,848 $57,815,166 $256,981,050
------------------------------------------------------
Investments in securities, at market value (Note 1) $1,694,373,928 $80,963,741 $59,801,897 $267,188,413
Receivables:
Investment securities sold - - - 429,149
Dividends and interest 1,518,450 44,512 68,942 205,302
------------------------------------------------------
Total Assets 1,695,892,378 81,008,253 59,870,839 267,822,864
------------------------------------------------------
LIABILITIES
Payables:
Investment securities purchased - - 41,317 443,858
Collateral for securities on loan (Note 5)
27,210,757 2,429,551 - 13,909,725
Advisory fees (Note 2) 258,397 24,821 14,630 80,273
------------------------------------------------------
Total Liabilities 27,469,154 2,454,372 55,947 14,433,856
------------------------------------------------------
NET ASSETS $1,668,423,224 $78,553,881 $59,814,892 $253,389,008
======================================================
Net assets consist of:
Paid-in capital $1,689,263,902 $77,091,045 $57,453,854 $223,569,555
Undistributed net investment income 472,767 15,780 19,055 26,373
Undistributed net realized gain 3,500,578 128,163 355,252 19,585,717
Net unrealized appreciation (depreciation)
(24,814,023) 1,318,893 1,986,731 10,207,363
------------------------------------------------------
NET ASSETS $1,668,423,224 $78,553,881 $59,814,892 $253,389,008
======================================================
iShares outstanding 11,600,000 950,000 950,000 2,350,000
======================================================
Net asset value per iShare $ 143.83 $ 82.69 $ 62.96 $ 107.83
======================================================
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Financial Statements page 57
<PAGE>
Statements of Assets and Liabilities (continued)
September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
--------------------------------------------------
MidCap MidCap SmallCap
400/BARRA 400/BARRA SmallCap 600/BARRA
Growth Value 600 Growth
Index Fund Index Fund Index Fund Index Fund
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost $33,295,112 $18,152,159 $69,436,749 $16,464,289
--------------------------------------------------
Investments in securities, at market value (Note 1) $36,518,701 $19,611,664 $72,747,253 $16,872,340
Receivables:
Investment securities sold 112,220 24,924 105,407 11,423
Dividends and interest 5,458 29,281 35,179 2,908
--------------------------------------------------
Total Assets 36,636,379 19,665,869 72,887,839 16,886,671
--------------------------------------------------
LIABILITIES
Payables:
Investment securities purchased 117,313 25,467 93,693 -
Collateral for securities on loan (Note 5) - - 2,142,986 -
Due to bank - - - 5,128
Advisory fees (Note 2) 14,615 7,936 17,532 6,971
--------------------------------------------------
Total Liabilities 131,928 33,403 2,254,211 12,099
--------------------------------------------------
NET ASSETS $36,504,451 $19,632,466 $70,633,628 $16,874,572
==================================================
Net assets consist of:
Paid-in capital $33,171,721 $18,051,201 $66,410,758 $16,395,276
Undistributed net investment income (loss) (2,042) 4,089 10,817 (2,408)
Undistributed net realized gain 111,183 117,671 901,549 73,653
Net unrealized appreciation 3,223,589 1,459,505 3,310,504 408,051
--------------------------------------------------
NET ASSETS $36,504,451 $19,632,466 $70,633,628 $16,874,572
==================================================
iShares outstanding 250,000 250,000 650,000 200,000
==================================================
Net asset value per iShare $ 146.02 $ 78.53 $ 108.67 $ 84.37
==================================================
</TABLE>
--------------------------------------------------------------------------------
See notes to financial statements.
--------------------------------------------------------------------------------
page 58 iShares
<PAGE>
Statements of Assets and Liabilities (continued)
September 30, 2000 (Unaudited)
iShares S&P
------------------------------------
SmallCap
600/BARRA
Value Europe 350 /TSE 60
Index Fund Index Fund Index Fund
------------------------------------------------------------------------------
ASSETS
Investments at cost $13,587,416 $15,712,066 $8,872,531
------------------------------------
Foreign currency, at cost $ - $ 19,689 $ 28,661
------------------------------------
Investments in securities, at market
value (Note 1) $14,413,606 $14,633,490 $9,265,210
Foreign currency, at value - 20,335 28,169
Cash - - 512
Receivables:
Investment securities sold 35,203 - 327,620
Dividends and interest 11,926 28,943 13,740
------------------------------------
Total Assets 14,460,735 14,682,768 9,635,251
------------------------------------
LIABILITIES
Payables:
Investment securities purchased 36,657 - 327,463
Advisory fees (Note 2) 5,847 15,019 7,960
------------------------------------
Total Liabilities 42,504 15,019 335,423
------------------------------------
NET ASSETS $14,418,231 $14,667,749 $9,299,828
====================================
Net Assets Consist of:
Paid-in capital $13,588,572 $15,747,904 $8,847,179
Undistributed (distributions in
excess of) net investment income 3,728 (241) 3,890
Undistributed net realized gain
(loss) (259) (1,624) 56,714
Net unrealized appreciation
(depreciation) 826,190 (1,078,290) 392,045
------------------------------------
NET ASSETS $14,418,231 $14,667,749 $9,299,828
====================================
iShares outstanding 200,000 200,000 150,000
====================================
Net asset value per iShare $ 72.09 $ 73.34 $ 62.00
====================================
------------------------------------------------------------------------------
See notes to financial statements.
------------------------------------------------------------------------------
iShares Financial Statements page 59
<PAGE>
Statements of Operations
For the period ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
-------------------------------------------------------
500/BARRA 500/BARRA Midcap
500 Growth Value 400
Index Fund* Index Fund** Index Fund** Index Fund**
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME
Dividends+ $ 4,644,284 $ 149,323 $ 280,666 $ 772,151
Interest++ 19,166 1,105 576 8,527
------------------------------------------------------
Total investment income 4,663,450 150,428 281,242 780,678
------------------------------------------------------
EXPENSES (NOTE 2)
Advisory fees 381,695 51,265 27,872 138,960
------------------------------------------------------
Total expenses 381,695 51,265 27,872 138,960
------------------------------------------------------
Net investment income 4,281,755 99,163 253,370 641,718
------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from investments 3,500,578 128,163 355,252 19,585,717
Net change in unrealized appreciation
(depreciation) on investments (24,814,023) 1,318,893 1,986,731 10,207,363
------------------------------------------------------
Net realized and unrealized gain (loss) (21,313,445) 1,447,056 2,341,983 29,793,080
------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
$ (17,031,690) $1,546,219 $2,595,353 $30,434,798
======================================================
------------------------------------------------------------------------------------------------
+Net of foreign withholding tax of: $ 21,347 $ 201 $ 1,539 $ -
++Includes securities lending income of: $ 4,532 $ 95 $ - $ 3,421
------------------------------------------------------------------------------------------------
</TABLE>
* For the period from May 15, 2000 (commencement of operations) to
September 30, 2000.
** For the period from May 22, 2000 (commencement of operations) to
September 30, 2000.
See notes to financial statements.
--------------------------------------------------------------------------------
page 60 iShares
<PAGE>
Statements of Operations (continued)
For the period ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
-----------------------------------------------------
MidCap MidCap SmallCap
400/BARRA 400/BARRA SmallCap 600/BARRA
Growth Value 600 Growth
Index Fund** Index Fund** Index Fund* Index Fund**
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME
Dividends $ 13,333 $ 76,446 $ 112,776 $ 5,103
Interest+ 186 120 2,961 39
---------------------------------------------------
Total investment income 13,519 76,566 115,737 5,142
---------------------------------------------------
EXPENSES (NOTE 2)
Advisory fees 15,561 8,457 32,470 7,550
---------------------------------------------------
Total expenses 15,561 8,457 32,470 7,550
---------------------------------------------------
Net investment income (loss) (2,042) 68,109 83,267 (2,408)
---------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
Net realized gain from investments 111,183 117,671 901,549 73,653
Net change in unrealized appreciation
on investments 3,223,589 1,459,505 3,310,504 408,051
---------------------------------------------------
Net realized and unrealized gain 3,334,772 1,577,176 4,212,053 481,704
---------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $3,332,730 $1,645,285 $4,295,320 $479,296
===================================================
-----------------------------------------------------------------------------------------------
+Includes securities lending income of: $ - $ - $ 2,323 $ -
-----------------------------------------------------------------------------------------------
</TABLE>
* For the period from May 22, 2000 (commencement of operations) to
September 30, 2000.
** For the period from July 24, 2000 (commencement of operations) to
September 30, 2000.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Financial Statements page 61
<PAGE>
Statements of Operations (continued)
For the period ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
----------------------------------------
SmallCap
600/BARRA
Value Europe 350 /TSE 60
Index Fund** Index Fund*** Index Fund*
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NET INVESTMENT INCOME
Dividends+ $ 33,219 $ 50,635 $ 37,027
Interest 107 416 838
------------------------------------
Total investment income 33,326 51,051 37,865
------------------------------------
EXPENSES (NOTE 2)
Advisory fees 6,334 16,172 14,175
------------------------------------
Total expenses 6,334 16,172 14,175
------------------------------------
Net investment income 26,992 34,879 23,690
------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (259) (303) 57,680
Foreign currency transactions - (1,321) (966)
------------------------------------
Net realized gain (loss) (259) (1,624) 56,714
------------------------------------
Net change in unrealized appreciation (depreciation) on:
Investments 826,190 (1,078,576) 392,679
Translation of assets and liabilities in foreign currencies - 286 (634)
------------------------------------
Net change in unrealized appreciation
(depreciation) 826,190 (1,078,290) 392,045
------------------------------------
Net realized and unrealized gain (loss) 825,931 (1,079,914) 448,759
------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $852,923 $ (1,045,035) $472,449
====================================
----------------------------------------------------------------------------------------------------------------
+Net of foreign withholding tax of: $ - $ 5,654 $ 6,536
----------------------------------------------------------------------------------------------------------------
</TABLE>
* For the period from June 12, 2000 (commencement of operations) to
September 30, 2000.
** For the period from July 24, 2000 (commencement of operations) to
September 30, 2000.
*** For the period from July 25, 2000 (commencement of operations) to
September 30, 2000.
See notes to financial statements.
--------------------------------------------------------------------------------
page 62 iShares
<PAGE>
Statements of Changes in Net Assets
For the period ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
---------------------------------------------------------------------------
500/BARRA 500/BARRA MIDCAP
500 Growth Value 400
Index Fund* Index Fund** Index Fund** Index Fund**
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 4,281,755 $ 99,163 $ 253,370 $ 641,718
Net realized gain 3,500,578 128,163 355,252 19,585,717
Net change in unrealized appreciation
(depreciation) (24,814,023) 1,318,893 1,986,731 10,207,363
---------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations (17,031,690) 1,546,219 2,595,353 30,434,798
---------------------------------------------------------------------------
Distributions To iShareholders:
From net investment income (3,808,988) (83,383) (234,315) (615,345)
---------------------------------------------------------------------------
Total distributions to iShareholders (3,808,988) (83,383) (234,315) (615,345)
---------------------------------------------------------------------------
iShares Transactions:
iShares sold 1,853,792,513 77,091,045 57,453,854 314,895,395
iShares redeemed (164,528,611) - - (91,325,840)
---------------------------------------------------------------------------
Net increase in net assets from iShares
transactions 1,689,263,902 77,091,045 57,453,854 223,569,555
---------------------------------------------------------------------------
Increase in net assets 1,668,423,224 78,553,881 59,814,892 253,389,008
NET ASSETS:
Beginning of period - - - -
---------------------------------------------------------------------------
End of period $1,668,423,224 $78,553,881 $59,814,892 $253,389,008
===========================================================================
Undistributed net investment income
included in net assets at end of
period $ 472,767 $ 15,780 $ 19,055 $ 26,373
===========================================================================
iSHARES ISSUED AND REDEEMED:
iShares sold 12,750,000 950,000 950,000 3,200,000
iShares redeemed (1,150,000) - - (850,000)
---------------------------------------------------------------------------
Net increase in iShares outstanding 11,600,000 950,000 950,000 2,350,000
===========================================================================
</TABLE>
--------------------------------------------------------------------------------
* For the period from May 15, 2000 (commencement of operations) to
September 30, 2000.
** For the period from May 22, 2000 (commencement of operations) to
September 30, 2000.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Financial Statements page 63
<PAGE>
Statements of Changes in Net Assets (continued)
For the period ended September 30, 2000 (unaudited)
<TABLE>
<CAPTION>
iShares S&P
---------------------------------------------------------------------------------
MidCap MidCap SmallCap
400/BARRA 400/BARRA SmallCap 600/BARRA
Growth Value 600 Growth
Index Fund** Index Fund** Index Fund* Index Fund**
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $ (2,042) $ 68,109 $ 83,267 $ (2,408)
Net realized gain 111,183 117,671 901,549 73,653
Net change in unrealized appreciation 3,223,589 1,459,505 3,310,504 408,051
---------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 3,332,730 1,645,285 4,295,320 479,296
---------------------------------------------------------------------------------
Distributions To iShareholders:
From net investment income - (64,020) (72,450) -
---------------------------------------------------------------------------------
Total distributions to iShareholders - (64,020) (72,450) -
---------------------------------------------------------------------------------
iShares Transactions:
iShares sold 33,171,721 18,051,201 66,410,758 16,395,276
---------------------------------------------------------------------------------
Net increase in net assets from iShares
transactions 33,171,721 18,051,201 66,410,758 16,395,276
---------------------------------------------------------------------------------
Increase in net assets 36,504,451 19,632,466 70,633,628 16,874,572
NET ASSETS:
Beginning of period - - - -
---------------------------------------------------------------------------------
End of period $36,504,451 $19,632,466 $70,633,628 $16,874,572
=================================================================================
Undistributed net investment income
(loss) included in net assets at end
of period $ (2,042) $ 4,089 $ 10,817 $ (2,408)
=================================================================================
iSHARES ISSUED AND REDEEMED:
iShares sold 250,000 250,000 650,000 200,000
---------------------------------------------------------------------------------
Net increase in iShares outstanding 250,000 250,000 650,000 200,000
=================================================================================
</TABLE>
--------------------------------------------------------------------------------
* For the period from May 22, 2000 (commencement of operations) to
September 30, 2000.
** For the period from July 24, 2000 (commencement of operations) to
September 30, 2000.
See notes to financial statements.
--------------------------------------------------------------------------------
page 64 iShares
<PAGE>
Statements of Changes in Net Assets (continued)
For the period ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
----------------------------------------------------------------
SmallCap
600/BARRA
Value Europe 350 /TSE 60
Index Fund** Index Fund*** Index Fund*
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income $ 26,992 $ 34,879 $ 23,690
Net realized gain (loss) (259) (1,624) 56,714
Net change in unrealized appreciation
(depreciation) 826,190 (1,078,290) 392,045
----------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 852,923 (1,045,035) 472,449
----------------------------------------------------------------
Distributions to iShareholders:
From net investment income (23,264) (35,120) (19,800)
----------------------------------------------------------------
Total distributions to iShareholders (23,264) (35,120) (19,800)
----------------------------------------------------------------
ishares Transactions:
iShares sold 13,588,572 15,747,904 8,847,179
----------------------------------------------------------------
Net increase in net assets from iShares
transactions 13,588,572 15,747,904 8,847,179
----------------------------------------------------------------
Increase in net assets 14,418,231 14,667,749 9,299,828
NET ASSETS:
Beginning of period - - -
----------------------------------------------------------------
End of period $14,418,231 $14,667,749 $9,299,828
================================================================
Undistributed (distributions in excess
of) net investment income included in
net assets at end of period $ 3,728 $ (241) $ 3,890
================================================================
iSHARES ISSUED AND REDEEMED:
iShares sold 200,000 200,000 150,000
----------------------------------------------------------------
Net increase in iShares outstanding 200,000 200,000 150,000
================================================================
</TABLE>
--------------------------------------------------------------------------------
* For the period from June 12, 2000 (commencement of operations) to
September 30, 2000.
** For the period from July 24, 2000 (commencement of operations) to
September 30, 2000.
*** For the period from July 25, 2000 (commencement of operations) to
September 30, 2000.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
iShares Financial Statements page 65
<PAGE>
Financial Highlights
(For a share outstanding throughout each period)
For the period ended september 30, 2000 (unaudited)
<TABLE>
<CAPTION>
iShares S&P
---------------------------------------------------------------------------------------
500/BARRA 500/BARRA Midcap
500 Growth Value 400
Index Fund* Index Fund** Index Fund** Index Fund**
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 145.24 $ 82.15 $ 60.20 $ 92.63
---------------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.44 0.10 0.29 0.28
Net realized and unrealized gain
(loss) (1.45) 0.53 2.74 15.19
---------------------------------------------------------------------------------------
Total from investment operations (1.01) 0.63 3.03 15.47
---------------------------------------------------------------------------------------
Less distributions from:
Net investment income (0.40) (0.09) (0.27) (0.27)
---------------------------------------------------------------------------------------
Total distributions (0.40) (0.09) (0.27) (0.27)
---------------------------------------------------------------------------------------
Net asset value, end of period $ 143.83 $ 82.69 $ 62.96 $ 107.83
=======================================================================================
Total return (not annualized) (0.70)% 0.76% 5.04% 16.71%
=======================================================================================
Ratios/supplemental Data:
Net assets, end of period (000s) $1,668,423 $78,554 $59,815 $253,389
Ratio of expenses to average net
assets+ 0.09% 0.18% 0.18% 0.20%
Ratio of net investment income to
average net assets+ 1.05% 0.35% 1.62% 0.91%
Portfolio turnover rate++ 2% 13% 12% 12%
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* For the period from May 15, 2000 (commencement of operations) to
September 30, 2000.
** For the period from May 22, 2000 (commencement of operations) to
September 30, 2000.
+ Annualized for periods of less than one year.
++ Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Units.
See Notes to Financial Statements.
--------------------------------------------------------------------------------
page 66 iShares
<PAGE>
Financial Highlights (continued)
(For a Share outstanding throughout each period)
For the period ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
iShares S&P
---------------------------------------------------------------------------------------
Midcap Midcap SmallCap
400/Barra 400/Barra SmallCap 600/Barra
Growth Value 600 Growth
Index Fund** Index Fund** Index Fund* Index Fund**
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $135.73 $ 72.40 $ 97.95 $ 83.34
---------------------------------------------------------------------------------------
Income from investment operations:
Net investment income (loss) (0.01) 0.28 0.14 (0.01)
Net realized and unrealized gain 10.30 6.11 10.71 1.04
---------------------------------------------------------------------------------------
Total from investment operations 10.29 6.39 10.85 1.03
---------------------------------------------------------------------------------------
less distributions from:
Net investment income - (0.26) (0.13) -
---------------------------------------------------------------------------------------
Total distributions - (0.26) (0.13) -
---------------------------------------------------------------------------------------
Net asset value, end of period $146.02 $ 78.53 $108.67 $ 84.37
=======================================================================================
Total return (not annualized) 7.58% 8.83% 11.08% 1.24%
=======================================================================================
Ratios/Supplemental data:
Net assets, end of period (000s) $36,504 $19,632 $70,634 $16,875
Ratio of expenses to average net
assets+ 0.25% 0.25% 0.20% 0.25%
Ratio of net investment income
(loss) to average net assets+ (0.03)% 1.98% 0.51% (0.08)%
Portfolio turnover rate++ 8% 7% 15% 11%
</TABLE>
--------------------------------------------------------------------------------
* For the period from May 22, 2000 (commencement of operations) to
September 30, 2000.
** For the period from July 24, 2000 (commencement of operations) to
September 30, 2000.
+ Annualized for periods of less than one year.
++ Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Units.
See notes to financial statements.
--------------------------------------------------------------------------------
iShares Financial Highlights page 67
<PAGE>
Financial Highlights (continued)
(For a share outstanding throughout each period)
For the period ended September 30, 2000 (Unaudited)
iShares S&P
----------------------------------------
SmallCap
600/BARRA
Value Europe 350 /TSE 60
Index Fund** Index Fund*** Index Fund*
------------------------------------------------------------------------
Net asset value, beginning of
period $ 68.34 $ 79.32 $ 59.00
----------------------------------------
Income from investment
operations:
Net investment income 0.13 0.18 0.16
Net realized and unrealized
gain (loss) 3.74 (5.98) 2.97
----------------------------------------
Total from investment
operations 3.87 (5.80) 3.13
----------------------------------------
less distributions from:
Net investment income (0.12) (0.18) (0.13)
----------------------------------------
Total distributions (0.12) (0.18) (0.13)
----------------------------------------
Net asset value, end of period $ 72.09 $ 73.34 $ 62.00
========================================
Total return (not annualized) 5.66% (7.31)% 5.30%
========================================
Ratios/Supplemental data:
Net assets, end of period
(000s) $ 14,418 $ 14,668 $ 9,300
Ratio of expenses to
average net assets+ 0.25% 0.60% 0.50%
Ratio of net investment
income to average net
assets+ 1.05% 1.28% 0.83%
Portfolio turnover rate++ 7% 0%+++ 24%
--------------------------------------------------------------------------------
* For the period from June 12, 2000 (commencement of operations) to
September 30, 2000.
** For the period from July 24, 2000 (commencement of operations) to
September 30, 2000.
*** For the period from July 25, 2000 (commencement of operations) to
September 30, 2000.
+ Annualized for periods of less than one year.
++ Excludes portfolio securities received or delivered as a result of
processing capital share transactions in Creation Units.
+++ Portfolio turnover rate rounds to less than 1%.
See notes to financial statements.
--------------------------------------------------------------------------------
page 68 iShares
<PAGE>
iShares Trust
Notes to the Financial Statements (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The iShares Trust (the "Trust") currently consists of 37 investment
portfolios or funds. Each fund in the Trust is registered under the Investment
Company Act of 1940, as amended (the "1940 Act"), as an open-end management
investment company. The Trust was established as a Delaware business trust
pursuant to a Declaration of Trust dated December 16, 1999.
The Trust currently offers the following funds:
<TABLE>
<CAPTION>
iShares S&P Series iShares Dow Jones Series iShares Russell Series
------------------ ------------------------ ----------------------
<S> <C> <C>
. iShares S&P 500 Index Fund . iShares Dow Jones U.S. Total Market . iShares Russell 3000 Index Fund
. ishares S&P 500/BARRA Growth Index Index Fund . iShares Russell 3000 Growth Index
Fund . iShares Dow Jones U.S. Basic Fund
. iShares S&P 500/BARRA Value Index Materials Sector Index Fund . iShares Russell 3000 Value Index Fund
Fund . iShares Dow Jones U.S. Consumer . iShares Russell 2000 Index Fund
. iShares S&P Midcap 400 Index Fund Cyclical Sector Index Fund . iShares Russell 2000 Growth Index
. iShares S&P Midcap 400/BARRA . iShares Dow Jones U.S. Consumer Fund
Growth Index Fund Non-Cyclical Sector Index Fund . iShares Russell 2000 Value Index Fund
. iShares S&P Midcap 400/BARRA Value . iShares Dow Jones U.S. Energy Sector . iShares Russell 1000 Index Fund
Index Fund Index Fund . iShares Russell 1000 Growth Index
. iShares S&P SmallCap 600 Index Fund . iShares Dow Jones U.S. Financial Fund
. iShares S&P SmallCap 600/BARRA Sector Index Fund . iShares Russell 1000 Value Index Fund
Growth Index Fund . iShares Dow Jones U.S. Healthcare
. iShares S&P Smallcap 600/barra Healthcare Sector Index Fund
Value Index Fund . iShares Dow Jones U.S.
. iShares S&P 100 Index Fund* Industrial Sector Index Fund
. iShares S&P Global 100 Index . iShares Dow Jones U.S.
Fund** Technology Sector Index Fund
. iShares S&P Europe 350 Index . iShares Dow Jones U.S.
Fund Telecommunications Sector Index
. iShares S&P/TSE 60 Index Fund Fund
. iShares Dow Jones U.S.
Utilities Sector Index Fund
. iShares Dow Jones U.S.
Chemicals Index Fund
. iShares Dow Jones U.S.
Financial Services Index Fund
. iShares Dow Jones U.S.
Internet Index Fund
. iShares Dow Jones U.S. Real
Estate Index Fund
</TABLE>
* Public offering date on or about October 27, 2000.
** Public offering date on or about December 1, 2000.
These financial statements relate to the iShares S&P Series of investment
portfolios (each a "Fund", collectively the "Funds"). The iShares S&P Europe 350
and TSE 60 Index Funds invest in the securities of foreign issuers, which may
subject them to investment risks not normally associated with investing in the
securities of United States corporations.
--------------------------------------------------------------------------------
iShares Notes to Financials page 69
<PAGE>
iSHARES TRUST
Notes to the Financial Statements (Unaudited) (Continued)
The following significant accounting policies are consistently followed by
the Trust in the preparation of its financial statements in conformity with
generally accepted accounting principles for investment companies. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions. Actual results could differ from those estimates.
SECURITY VALUATION
Equity securities for which quotations are readily available are valued at
the last sale price, or if no sale price, at the closing bid price in the
principal market in which such securities are primarily traded. U.S. Government
obligations are valued at the last reported bid price. Debt securities maturing
in 60 days or less are valued at amortized cost, which approximates market
value. Any securities, including restricted securities or other assets for which
market quotations are not readily available, are valued at fair value as
determined in good faith in accordance with policies approved by the Board of
Trustees.
SECURITY TRANSACTIONS AND INCOME RECOGNITION
Security transactions are accounted for on trade date. Dividend income is
recognized on the ex-dividend date, and interest income is recognized on a daily
accrual basis. Realized gains and losses on investment transactions are
determined using the specific identification method.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars.
Investment securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars at the prevailing rates of exchange
on the valuation date. Purchases and sales of securities, income receipts and
expense payments are translated into U.S. dollars at the prevailing exchange
rate 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 as a component of realized and unrealized gains and
losses from investments for financial reporting purposes.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders from net investment income are declared and
distributed quarterly by each Fund. Distributions of net realized capital gains,
if any, generally are declared and distributed once a year. Distributions are
determined on a tax basis and may differ from net investment income and realized
capital gains for financial reporting purposes.
FEDERAL INCOME TAXES
Each Fund is treated as a separate entity 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 distribute annually substantially all of its income and any 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 taxes was required at September 30, 2000.
FORWARD CURRENCY CONTRACTS
A forward currency contract is an obligation to purchase or sell a currency
against another currency at a future date and price as agreed upon by the
parties. A forward currency contract is traded over-the-counter and not on
organized commodities or securities
--------------------------------------------------------------------------------
page 70 iShares
<PAGE>
iSHARES TRUST
Notes to the Financial Statements (Unaudited) (Continued)
exchanges. Certain of the Funds may enter into foreign currency forward
contracts to facilitate local securities settlement or to protect against
currency exposure in connection with its distributions to shareholders.
Contracts are recorded at market value and marked to market daily.
Risks of entering into forward currency contracts include the possibility
that a Fund could not close out its positions because of an illiquid market and
that the Fund could experience losses if the value of its currency forwards were
poorly correlated with its other investments.
As of September 30, 2000, there were no open forward currency contracts.
FUTURES CONTRACTS
The Funds may purchase stock index futures contracts to simulate full
investment in the respective underlying index, to facilitate trading or to
reduce transaction costs. A futures contract is an agreement between two parties
to buy and sell a specified amount of a specific instrument or index at a
specified future time and at a specific price. Each Fund will only enter into
futures contracts that are traded on a U.S. or foreign exchange. Upon entering
into a futures contract, the Funds are required to pledge to the broker an
amount of cash or cash equivalents equal to the minimum "initial margin"
requirements of the exchange on which the contract is traded. Pursuant to the
contract, the Funds agree to receive from or pay to the broker an amount of cash
equal to the daily fluctuation in the value of the index underlying the futures
contract. Such receipts or payments are known as "variation margin" and are
recorded by the Funds as unrealized gains or losses. When the contract is
closed, the Funds record a gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the time it was
closed.
Pursuant to regulations and/or published positions of the Securities and
Exchange Commission, the Funds are required to segregate cash, U.S. Government
securities or high quality, liquid debt instruments in connection with long
futures transactions in an amount generally equal to the entire futures contract
amount. The primary risks associated with the use of futures contracts are that
the changes in the value of the contracts may not correlate perfectly with
changes in the market value of stocks held in the Fund, and the possibility of
an illiquid market.
As of September 30, 2000, there were no open long futures contracts
outstanding.
REPURCHASE AGREEMENTS
Each Fund may enter into repurchase agreements with banks and securities
dealers. These transactions involve the purchase of securities with a
simultaneous commitment to resell the securities to the bank or the dealer at an
agreed-upon date and price. A repurchase agreement is accounted for as a loan by
the Fund to the seller, collateralized by securities, which are delivered to the
Funds' custodian or to an agent bank under a tri-party agreement. The securities
are marked-to-market daily and additional securities are acquired as needed, to
ensure that their value equals or exceeds the repurchase price plus accrued
interest.
The repurchase agreements entered into on September 30, 2000 by the Funds
were fully collateralized by U.S. Government obligations with a rate of 8.13%, a
maturity date of 08/15/21 and an aggregate market value of $906,542.
2. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Pursuant to an Investment Advisory Agreement with the Trust, Barclays Global
Fund Advisors ("BGFA") manages the investment of each Fund's assets. BGFA is a
California corporation indirectly owned by Barclays Bank PLC. Under this
agreement, BGFA is responsible for all expenses ("Covered Expenses") of the
Trust, including the cost of transfer agency, custody, fund administration,
legal, audit and other services, except interest, taxes, brokerage commissions
and other expenses connected with the executions of portfolio transactions,
distribution fees and extraordinary expenses.
--------------------------------------------------------------------------------
iShares Notes to Financials page 71
<PAGE>
iShares Trust
Notes to the Financial Statements (Unaudited) (Continued)
For its investment management services to each Fund, BGFA is entitled to a
management fee based on the average daily net assets of each Fund as follows:
----------------------------------
Management
iShares S&P Index Fund Fee
----------------------------------
500 0.09%
500/BARRA Growth 0.18
500/BARRA Value 0.18
MidCap 400 0.20
MidCap 400/BARRA Growth 0.25
MidCap 400/BARRA Value 0.25
SmallCap 600 0.20
SmallCap 600/BARRA Growth 0.25
SmallCap 600/BARRA Value 0.25
Europe 350 0.60
/TSE 60 0.50
----------------------------------
Investors Bank & Trust Company ("IBT") serves as Administrator, Custodian,
Transfer Agent and Securities Lending Agent for the Funds. As compensation for
its services, IBT receives certain out-of-pocket costs, transaction fees, and
asset-based fees which are accrued daily and paid monthly. These fees are
Covered Expenses as defined above.
SEI Investments Distribution Company serves as the Distributor of the shares
of each Fund, pursuant to a Distribution Agreement with the Trust. The
Distributor will deliver the Prospectus and Statement of Additional Information,
if so requested, to persons purchasing Creation Unit Aggregations and will
maintain records of both orders placed with it and confirmations of acceptance
furnished by it.
Certain of the officers of the Trust are also employees of IBT, the
Administrator, Custodian, Transfer Agent and Securities Lending Agent for the
Funds.
3. INVESTMENT PORTFOLIO TRANSACTIONS
Purchases and sales of investments (excluding in-kind transactions and
short-term securities) for the period ended September 30, 2000, were as follows:
------------------------------------------------
iShares S&P Index Fund Purchases Sales
------------------------------------------------
500 $25,617,534 $21,569,248
500/BARRA Growth 10,975,047 10,998,246
500/BARRA Value 5,308,358 5,279,158
MidCap 400 24,615,582 24,264,212
MidCap 400/BARRA Growth 2,932,222 2,790,387
MidCap 400/BARRA Value 1,329,088 1,311,284
SmallCap 600 7,024,325 7,030,402
SmallCap 600/BARRA Growth 1,824,435 1,826,685
SmallCap 600/BARRA Value 1,010,346 1,009,843
Europe 350 40,675 46,922
/TSE 60 2,592,360 2,236,492
------------------------------------------------
--------------------------------------------------------------------------------
page 72 iShares
<PAGE>
iShares Trust
Notes To The Financial Statements (Unaudited) (Continued)
In-kind transactions for the period ended September 30, 2000, were as
follows:
----------------------------------------------------
In-kind In-kind
iShares S&P Index Fund Purchases Sales
----------------------------------------------------
500 $1,848,357,812 $164,526,091
500/BARRA Growth 77,080,096 -
500/BARRA Value 57,401,051 -
MidCap 400 314,615,613 91,584,884
MidCap 400/BARRA Growth 33,029,294 -
MidCap 400/BARRA Value 18,009,672 -
SmallCap 600 66,396,936 -
SmallCap 600/BARRA Growth 16,392,886 -
SmallCap 600/BARRA Value 13,581,630 -
Europe 350 15,687,810 -
/TSE 60 8,449,207 -
----------------------------------------------------
At September 30, 2000, the aggregate unrealized appreciation and
depreciation based on cost for federal income tax purposes were as follows:
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------
Net Unrealized
Tax Unrealized Unrealized Appreciation
iShares S&P Index Fund Cost Appreciation Depreciation (Depreciation)
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<S> <C> <C> <C> <C>
500 $1,719,187,951 $108,135,018 $(132,949,041) $ (24,814,023)
500/BARRA Growth 79,644,848 7,752,637 (6,433,744) 1,318,893
500/BARRA Value 57,815,166 5,039,179 (3,052,448) 1,986,731
MidCap 400 256,981,050 23,517,398 (13,310,035) 10,207,363
MidCap 400/BARRA Growth 33,295,112 5,278,006 (2,054,417) 3,223,589
MidCap 400/BARRA Value 18,152,159 2,098,404 (638,899) 1,459,505
SmallCap 600 69,436,749 7,946,847 (4,636,343) 3,310,504
SmallCap 600/BARRA Growth 16,464,289 1,813,362 (1,405,311) 408,051
SmallCap 600/BARRA Value 13,587,416 1,629,737 (803,547) 826,190
Europe 350 15,712,066 340,510 (1,419,086) (1,078,576)
/TSE 60 8,872,531 677,834 (285,155) 392,679
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</TABLE>
4. iSHARES TRANSACTIONS
At September 30, 2000, there were an unlimited number of no par value shares
of beneficial interest ("iShares") authorized. iShares are issued and redeemed
by each Fund only in large blocks of 50,000 iShares ("Creation Unit") or
multiples thereof. Except when aggregated in Creation Units, iShares are not
redeemable.
The consideration for purchase of Creation Units of a Fund generally consists
of the in-kind deposit of a designated portfolio of equity securities
constituting a substantial replication, or a portfolio sampling representation,
of the stocks involved in the relevant Fund's underlying index and an amount of
cash. A purchase transaction fee and a redemption transaction fee are charged to
offset transfer and other transaction costs associated with the issuance and
redemption of Creation Units of iShares.
-------------------------------------------------------------------------------
iShares Notes to Financials page 73
<PAGE>
iShares Trust
Notes To The Financial Statements (Unaudited) (Continued)
5. LOANS OF PORTFOLIO SECURITIES
Each Fund may lend its investment securities to approved borrowers such as
brokers, dealers and other financial institutions. The borrower pledges and
maintains with the Fund collateral consisting of cash, an irrevocable letter of
credit issued by a bank, or securities issued or guaranteed by the U.S.
Government. The collateral is maintained at a value equal to at least 100% of
the current market value of the loaned securities. The risks to the Funds of
securities lending are that the borrower may not provide additional collateral
when required or return the securities when due.
The market value of the securities on loan at September 30, 2000 and the
value of the related collateral were as follows:
------------------------------------------------
Value of Value Of
iShares S&P Index Fund Securities Collateral
------------------------------------------------
500 $26,383,199 $27,210,757
500/BARRA Growth 2,364,424 2,429,551
MidCap 400 13,513,691 13,909,725
SmallCap 600 2,059,332 2,142,986
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page 74 iShares
<PAGE>
<TABLE>
<S> <C> <C> <C>
iShares 45 Fremont Street www.ishares.com 1-800-ISHARES
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BARCLAYS GLOBAL INVESTMENT San Francisco, CA 1 800 474 2737
94105
iShares are distributed by SEI
Investments Distribution Co.
Barclays Global Fund Advisors
serves as an adviser to iShares
and is a subsidiary of Barclays
Global Investors, N.A., neither F-007-01
of which is affiliated with SEI. (C)2000 Barclays Global Investors. All
iShares are not sponsored, rights reserved. iShares is a servicemark Not FDIC insured
IBT serves as administrator, endorsed, sold or promoted of Barclays Global Investors, N.A. All Have no bank guarantee
custodian, securities lending by Standard & Poor's. Nor other trademarks, servicemarks or May lose value
agent and transfer agent for does this company make any registered trademarks are the property
the iShares S&P Series. representation regarding the of their respective owners.
advisability of investing
in iShares.
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