iShares, Inc.

· iShares MSCI Austria ETF | EWO | NYSE Arca

· iShares MSCI Belgium ETF | EWK | NYSE Arca

· iShares MSCI France ETF | EWQ | NYSE Arca

· iShares MSCI Netherlands ETF | EWN | NYSE Arca

· iShares MSCI Sweden ETF | EWD | NYSE Arca

Table of Contents

Market Overview

iShares, Inc.

Global Market Overview

Global equity markets advanced during the 12 months ended August 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 13.95% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-coronavirus pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of several key commodities, including oil, natural gas, and wheat, either stabilized or declined during the reporting period, easing pressure on the world’s economies.

The U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates seven times over the course of the reporting period. The pace of tightening decelerated as the Fed twice lowered the increment of increase before pausing entirely in June 2023, the first time it declined to take action since the tightening cycle began. However, the Fed then raised interest rates again at its July 2023 meeting and stated that it would continue to monitor economic data. The Fed also continued to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the pandemic.

Despite the tightening financial conditions, the U.S. economy demonstrated continued strength, and U.S. equities advanced. The economy returned to growth in the third quarter of 2022 and showed robust, if slightly slower, growth thereafter. Consumers powered the economy, increasing their spending in both nominal and inflation-adjusted terms. A strong labor market bolstered spending, as unemployment remained low, and the number of employed persons reached an all-time high. Tightness in the labor market drove higher wages, although wage growth slowed as the reporting period continued.

European stocks outpaced their counterparts in most other regions of the globe, advancing strongly for the reporting period despite modest economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices declined, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates eight times and beginning to reduce the size of its debt holdings.

Stocks in the Asia-Pacific region gained, albeit at a slower pace than other regions of the world. Japan returned to growth in the fourth quarter of 2022 and first half of 2023, as strong business investment and exports helped boost the economy and support Japanese equities. However, Chinese stocks were negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several pandemic-related lockdowns in December 2022, subsequent performance disappointed, and tensions with the U.S. increased. Emerging market stocks advanced modestly, as the resilient global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.

Investment Objective

The iShares MSCI Austria ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Austrian equities, as represented by the MSCI Austria IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

Portfolio Management Commentary

Austrian stocks advanced for the reporting period, as investors responded to historically low valuations, falling inflation rates, and a shift by the ECB to less restrictive monetary policy. Inflation in Austria rose to 11.2% in January 2023, the highest rate since 1958, then fell to 7.5% in August 2023. The ECB responded to the Eurozone’s highest-ever inflation with its fastest pace of interest rate increases ever, before signaling late in the reporting period that rates could be near a peak. Austria, which continued to be highly dependent on imports of Russian natural gas, also secured additional sources of energy and replenished its stockpiles, while a warm winter helped moderate consumption. Nevertheless, economic growth was flat to negative during the reporting period as higher interest rates slowed consumer spending.

The financials sector contributed the most to the Index’s performance, as the country’s largest bank advanced, as did other prominent banks. The largest bank drove the banking industry’s gains after posting higher profits, mainly from high interest income as loan volume strengthened and higher interest rates increased the gap between the rates the banks charge for loans and the lower rates they pay for deposits. Trading activity in financial markets also increased profits, while a relatively stable credit environment in Austria and neighboring countries limited the amount of loans that banks deemed potentially troubled. Stronger profits from interest income and trading offset higher expenses, mainly from growing employee salaries.

The energy sector also contributed to the Index’s performance, particularly the oil, gas, and consumable fuels industry. Despite lower natural gas prices, the stock of a prominent Austrian fuel provider climbed after securing backup sources while continuing to buy a majority of supply from Russia.

Portfolio Information

Investment Objective

The iShares MSCI Belgium ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Belgian equities, as represented by the MSCI Belgium IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

Portfolio Management Commentary

Belgian stocks advanced for the reporting period as the economy continued to grow, albeit at a slow pace, driven by strong household spending. Despite rising interest rates, Belgian unemployment remained near historic lows, and the Belgian wage system triggered automatic wage and pension increases for many public and private sector employees, encouraging spending even as prices rose.

The healthcare sector contributed the most to the Index’s performance, particularly the biotechnology industry. The stock price of one prominent biotechnology company rose sharply higher following positive results from a clinical study into the effectiveness of a drug to treat a rare autoimmune nerve disease. The study demonstrated a lower risk of relapse, and patients tolerated the drug well, raising investor optimism that regulators will approve the treatment.

The consumer staples sector further contributed to the Index’s performance, amid strength in the beverages industry. China, the world’s largest beer market, raised expectations of a rebound in beer sales as it announced plans to begin gradually easing stringent measures to contain COVID-19, including reopening businesses and allowing travel between different parts of the country. Consumers also increasingly bought premium-priced beers, raising profit margins.

The financials sector also contributed, led by the banking industry. Banks posted higher profits amid high interest income, as loan volume strengthened and higher interest rates increased the gap between the rates the banks charge for loans and the low rates they pay for deposits. Insurance sales, particularly life insurance, rose sharply, and trading activity in financial markets supported increased profits.

Conversely, the real estate sector detracted from the Index’s return. Stocks of diversified REITs declined as bond yields rose, offering income-seeking investors an alternative investment at a competitive payout.

Portfolio Information

Investment Objective

The iShares MSCI France ETF (the “Fund”) seeks to track the investment results of an index composed of French equities, as represented by the MSCI France Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

Portfolio Management Commentary

French stocks rose during the reporting period, as strong exports bolstered slow economic growth. France’s economy weathered the turbulence of 2022 relatively well due to its lower reliance on Russian gas and interventions by the French government to control energy prices. Higher interest rates helped lower inflation in 2023, but French consumers remained pessimistic and household consumption weakened.

The industrials sector contributed the most to the Index’s performance, led by the aerospace and defense industry. French manufacturers of jets and engines overcame supply chain challenges to increase deliveries of new planes, and orders rose as air travel recovered. France’s electrical equipment industry benefited from operations in the U.S., where new government incentives to encourage investment in clean energy and infrastructure projects increased demand for microgrids, industrial automation systems, and energy management software.

The French consumer discretionary sector also contributed to the Index. The textiles and apparel industry posted solid sales of luxury goods in Europe and Asia following a resurgence in international travel and the end of China’s COVID-19 lockdowns. That helped offset declining sales of luxury products in North America, as many American consumers curtailed spending or purchased expensive goods while vacationing in Europe.

The financials sector added to the Index’s gains. French banks posted stronger profits, as higher interest rates helped banks increase the gap between the interest they charge for loans and the interest they pay on customer deposits. However, government regulations that cap mortgage rates and link the interest on popular savings accounts to inflation limited the benefits of higher interest rates.

The healthcare sector also supported the Index’s performance. The stock of a French pharmaceutical company climbed after reporting of positive late-stage clinical trial results for a drug to treat a common chronic lung disease.

Portfolio Information

Investment Objective

The iShares MSCI Netherlands ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Dutch equities, as represented by the MSCI Netherlands IMI 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance through August 31, 2017 reflects the performance of the MSCI Netherlands Investable Market Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI Netherlands IMI 25/50 Index.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

Portfolio Management Commentary

Stocks in the Netherlands advanced during the reporting period, despite the weakening Dutch economy, as the market rebounded from a sharp downturn in 2022 following Russia’s invasion of Ukraine. The Netherlands fell into a technical recession during the first half of 2023, as exports weakened and household spending dropped. Although average wages climbed and the unemployment rate remained relatively low, consumers grew more pessimistic about the economic outlook amid higher interest rates and the sudden collapse of the country’s coalition government over migration policy in July 2023. The ECB’s rapid interest rate increases helped drive down inflation in the Netherlands, which fell sharply from a peak of 14.5% in September 2022 to 3% in August 2023.

The information technology sector contributed the most to the Index’s performance. The semiconductors and semiconductor equipment industry advanced strongly amid growing investor optimism over the future of artificial intelligence (“AI”) applications. A large Dutch company benefited notably as the world’s only manufacturer of extreme ultraviolet lithography machines used to make the fast microprocessors necessary for AI applications, a position that supports the firm’s pricing strength. Increased shipments to microprocessor producers strengthened earnings, and the stock climbed higher. However, the prospect of new Dutch export restrictions on shipments of advanced technology to China set to take effect in September 2023 weighed on the industry outlook.

The financials sector also added to the Index’s return. Banks reported stronger profits, as higher interest rates helped banks increase the gap between the interest they charge for loans and the interest they pay on customer deposits. Although the economy weakened in the Netherlands and across the E.U., banks were able to reduce their loan loss provisions related to Russia from 2022.

Portfolio Information

Investment Objective

The iShares MSCI Sweden ETF (the “Fund”) seeks to track the investment results of an index composed of Swedish equities, as represented by the MSCI Sweden 25/50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

Portfolio Management Commentary

Stocks in Sweden advanced during the reporting period despite weaker economic growth, reflecting the slowing rate of inflation and anticipation of less restrictive monetary policy. Sweden’s inflation peaked at 12.3% in December 2022 and subsequently declined to a low of 7.5% in August 2023 as electricity costs dropped. Declining inflation in Sweden and other countries in the Eurozone led the ECB to slow its fastest-ever pace of interest rate increases, leading to investor anticipation of less restrictive policy.

The industrials sector contributed the most to the Index’s performance. The machinery industry benefited from increased orders for industrial compressors and various industrial tools, especially from manufacturers of electric vehicles and batteries. Orders and deliveries of commercial and industrial trucks increased despite supply chain constraints on production. Sales of electric trucks were particularly strong as companies committed to reducing carbon emissions.

The financials sector also contributed to the Index’s return, led by the banking industry. Banks posted higher profits amid high interest income, as corporate loan volume strengthened and higher interest rates increased the gap between the rates banks charge for loans and the low rates they pay for deposits. Despite economic challenges in Sweden and neighboring Nordic countries, provisions for expected losses from unpaid loans continued to remain at low levels.

On the downside, the information technology sector detracted from the Index’s performance. The communications equipment industry posted lower profits as the weakening economic outlook and elevated inflation led telecommunication providers to cut budgets.

In addition, the communication services sector detracted from the Index’s return, led by the diversified telecommunication services industry. High electricity costs and increased interest expense weakened the profits of telecommunication providers.

Portfolio Information

About Fund Performance

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

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

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

For the period ended August 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

Average Quarterly Balances of Outstanding Derivative Financial Instruments

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

See notes to financial statements.