Fund Description: iShares MSCI Emerging Markets Small Cap ETF, formerly iShares MSCI Emerging Markets Small Cap Index Fund, is an exchange-traded index fund or Index ETF which is a separate investment portfolio of iShares Inc., an open-end investment management company. INVESTMENT OBJECTIVE: The iShares MSCI Emerging Markets Small Cap ETF seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Emerging Markets Small Cap Index. INDEX DESCRIPTION: The MSCI Emerging Markets Small Cap Index is designed to measure the performance of equity securities of small capitalization companies, whose market capitalization represents the bottom 14% of, companies in emerging market countries, as measured by market capitalization. As of July 29, 2011, the Index consisted of issuers in the following 21 emerging market countries: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand and Turkey. As of July 29, 2011, the Index’s three largest industries were industrials, consumer discretionary, and financials. FUND STRATEGY: A passive or indexing approach is used to try to achieve the Fund's investment objective. Unlike many investment companies, the Fund does not try to beat the Index and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the Fund will substantially outperform its Index but also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies. The Fund generally invests at least 90% of its assets in securities of the Index and in depositary receipts representing securities of the Index. The Fund may invest the remainder of its assets in securities not included in the Index, but which is believed will help the Fund track its Index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds. Representative sampling is an indexing strategy that is used which involves investing in a representative sample of securities that collectively has an investment profile similar to the Index. The securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. The Fund may or may not hold all of the securities in the Index. The Fund will invest all of its assets that are invested in Indian securities in a wholly-owned subsidiary located in the Republic of Mauritius FUND MANAGEMENT: BlackRock Fund Advisors (BFA), serves as the Investment Advisor to the Fund.