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iShares, Inc.

· iShares MSCI Brazil ETF | EWZ | NYSE Arca

· iShares MSCI Chile ETF | ECH | Cboe BZX

· iShares MSCI Israel ETF | EIS | NYSE Arca

· iShares MSCI South Africa ETF | EZA | NYSE Arca

· iShares MSCI Turkey ETF | TUR | NASDAQ

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Market Overview

iShares, Inc.

Global Market Overview

Global equity markets declined in U.S. dollar terms during the 12 months ended August 31, 2022 (“reporting period”). The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned -15.88% in U.S. dollar terms for the reporting period.

For the first third of the reporting period, economic recovery supported stocks in most regions of the world. The global economy continued to rebound from the impact of restrictions imposed at the beginning of the coronavirus pandemic, as mitigation and adaptation allowed most economic activity to continue. However, substantial challenges emerged at the beginning of 2022 which negatively affected stock prices. Inflation rose significantly in many countries, reducing consumers’ purchasing power and leading many central banks to tighten monetary policy. Russia’s invasion of Ukraine presented a further challenge to the global economy, disrupting important commodities markets.

The U.S. economy grew briskly over the final half of 2021, powered primarily by consumer spending. Record-high personal savings rates allowed consumers to spend at an elevated level, releasing pent-up demand for goods and services. Growth subsequently stalled in the first half of 2022, and the economy contracted amid lower inventories and faltering business investment. Despite the economic downturn, unemployment declined substantially, falling to 3.7% in August 2022 while the number of long-term unemployed dropped below the pre-pandemic level. Although high inflation negatively impacted consumer sentiment, which declined significantly, consumer spending continued to grow.

Rising inflation led to a shift in policy from the U.S. Federal Reserve (“the Fed”). As the reporting period began, the Fed was using accommodative monetary policy to stimulate the economy. Short-term interest rates were kept at near-zero levels, and the Fed used bond-buying programs to stabilize debt markets. However, rising prices led the Fed to tighten monetary policy during the reporting period in an attempt to prevent runaway inflation. The Fed slowed and then ended its bond-buying activities, finally reversing course as it began to reduce its balance sheet in June 2022. In March 2022, the Fed began to raise short-term interest rates, followed by three more increases for a total increase of 225 basis points, the most rapid rise in decades. Interest rates rose significantly in response, leading to higher borrowing costs for businesses. In that environment, the U.S. dollar significantly appreciated relative to most foreign currencies.

Stocks declined in Europe in U.S. dollar terms as economic growth stalled and the euro declined sharply relative to the U.S. dollar. Significantly higher inflation and Russia’s invasion of Ukraine negatively impacted equities. Russia is an important trading partner with many European countries, and new sanctions imposed limits on certain types of trade with Russia. Investors became concerned that the sharp rise in energy prices during the reporting period would constrain economic growth, as Europe relies on imported energy for much of its industrial and heating needs. The European Central Bank (“ECB”) responded to elevated inflation by raising interest rates in July 2022, the first such increase in over a decade.

Despite relatively low inflation by global standards, Asia-Pacific stocks declined significantly in U.S. dollar terms. Chinese stocks faced significant headwinds amid regulatory interventions by the Chinese government and strict lockdowns following COVID-19 outbreaks. Japanese stocks also declined amid an economic contraction in the first quarter of 2022 and a sharp decline in the Japanese yen relative to the U.S. dollar. Emerging market stocks declined substantially, as higher interest rates and a strengthening U.S. dollar raised the cost of borrowing in many emerging economies.

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Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

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

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

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Portfolio Management Commentary

Brazilian stocks declined during the reporting period, retreating from a post-coronavirus pandemic high in April 2022, amid high inflation, rising interest rates, and slowing economic growth. Rising commodities prices and a shift toward value stocks bolstered the market in early 2022 as exports rose to multi-decade highs. Prices for oil, metals, and agricultural commodities, which are Brazil’s primary exports, increased, especially after Russia invaded Ukraine. However, Brazilian equities declined late in the reporting period as slowing global growth and recessionary concerns started to weigh on commodities prices.

The materials sector was the largest detractor from the Index’s return. Metals and mining stocks declined as prices for iron ore, a key steelmaking ingredient, fell sharply amid concerns about demand from China, where a property market slump and pandemic-related restrictions drove steelmakers to reduce production. Lower prices and higher costs for logistics and fuel pressured margins and weighed on mining companies’ earnings.

The consumer discretionary sector also detracted solidly from the Index’s return amid high inflation, supply-chain disruptions, and weakening consumer sentiment. Retailers declined amid rising interest rates and high levels of consumer debt, while inflation pressured margins and profits. E-commerce sales also showed signs of slowing as customers returned to brick-and-mortar stores.

Conversely, the energy sector was the largest contributor to the Index’s return, advancing as oil, coal, and natural gas prices rose sharply in early 2022 and remained historically high as supply failed to keep pace with demand. Supply constraints following Russia’s invasion of Ukraine and the resulting international sanctions against Russia, a key exporter of natural gas and oil, further supported prices. Sharp increases in prices drove stronger margins and profits for the integrated oil and gas industry, while large dividends further supported the industry.

Portfolio Information

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Investment Objective

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

Performance

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

Index performance through February 11, 2013 reflects the performance of the MSCI Chile Investable Market Index. Index performance beginning on February 12, 2013 reflects the performance of the MSCI Chile IMI 25/50 Index.

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

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Portfolio Management Commentary

Stocks in Chile advanced modestly during the reporting period, supported by surging prices for raw materials, as exports of raw materials comprise a significant portion of Chile’s economic output. However, those higher prices also contributed to inflation, leading to interest rate increases and constraining domestic demand. Currency weakness exacerbated price pressures. In July 2022, Chile’s central bank intervened to aid the Chilean peso, which had fallen to a record low relative to the U.S. dollar. Late in the reporting period, amid heightened uncertainty regarding a scheduled constitutional referendum in September 2022, inflation reached its highest level in almost three decades and recession concerns mounted.

The Chilean materials sector contributed the most to the Index’s performance, particularly the chemicals industry. Prices for fertilizer and agricultural chemicals surged amid the imposition of economic and trade sanctions on Russia and Belarus, the world’s second- and third-largest producers of potash, a key fertilizer nutrient. Lithium prices also rose considerably, lifting profits for a large Chilean exporter of that important component of electric vehicle batteries. Prices for mineral salts reached record highs, supporting substantial revenue gains for all related products. Sales volumes of industrial chemicals also increased, as did sales and prices for iodine and associated products.

On the downside, the consumer staples, utilities, and consumer discretionary sectors detracted from the Index’s return. Profit margins declined in the beverages industry amid rising raw material and packaging costs and the depreciation of local currencies against the U.S. dollar. Rising costs also constrained margins for the electric utilities industry, as companies had to pay considerably more for raw materials to generate power. In the consumer discretionary sector, reduced consumer spending and rising costs for goods from suppliers similarly pressured margins at department stores.

Portfolio Information

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Investment Objective

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

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

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Portfolio Management Commentary

Stocks in Israel declined for the reporting period amid rising inflation, higher interest rates, and inconsistent economic growth. Israel’s economy contracted in the first quarter of 2022 but rebounded late in the reporting period. Recession fears receded as private consumption increased, and the country’s tourism and hospitality businesses bounced back from pandemic-related shutdowns. Although the country’s inflation rate remained lower than many other developed nations, the Bank of Israel joined other central banks in raising interest rates significantly.

The information technology sector detracted the most from the Index’s return. The IT services industry declined as website creators adjusted to slowing global economic growth and reduced online spending. Israel’s exit from the Russian market and the negative foreign exchange impacts of gains in the U.S. dollar led to revenue declines, prompting expense-reduction measures, including plans to reduce jobs. The application software industry also declined substantially as investors shifted away from high-valuation growth stocks. Growth stocks, which advanced during much of the coronavirus pandemic, declined as economic uncertainty intensified.

The consumer discretionary sector also weighed on the Index’s return. Within the internet and direct marketing retail industry, an online marketplace for freelance work sharply decreased its earnings expectations. Uncertainty regarding revenue from its European markets increased after Russia’s invasion of Ukraine.

On the upside, the financials sector contributed to the Index’s performance as earnings increased at the nation’s largest banks. Net interest income, the difference banks earn from making loans and paying out interest on deposits, increased amid rising interest rates. Banks also benefited from reducing asset provisions set aside during the pandemic to protect against potential loan defaults. The materials sector also contributed as earnings for fertilizer and agricultural chemicals distributors increased, reflecting sharp increases in product prices.

Portfolio Information

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Investment Objective

The iShares MSCI South Africa ETF (the “Fund”) seeks to track the investment results of an index composed of South African equities, as represented by the MSCI South Africa 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 South Africa Index. Index performance beginning on September 1, 2017 reflects the performance of the MSCI South Africa 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

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Portfolio Management Commentary

South Africa’s stock market declined substantially for the reporting period amid weak economic growth and interest rate increases targeting high inflation. The nation’s economic output fluctuated between slow growth and contraction. Exports increased, but high unemployment persisted. Power outages from the country’s severely strained electrical grid and challenging operating conditions in the country’s commodities-intensive industries further limited economic output. Meanwhile, the South African Reserve Bank raised interest rates, prompting recession concerns. The declining value of the South African rand relative to the U.S. dollar also diminished the value of South African stocks in U.S. dollar terms.

The materials sector detracted the most from the Index’s return, driven by the metals and mining industry. Prices for precious metals, used for products ranging from semiconductors to catalytic converters, advanced sharply in the wake of Russia’s invasion of Ukraine. However, rising production costs made it difficult for miners to take advantage of the price increases. In addition, labor strikes affected gold mining operations. A decline in metals prices late the reporting period further weighed on the industry’s earnings.

The consumer discretionary sector detracted meaningfully from the Index’s performance, driven by the internet and direct marketing retail industry. Earnings for a leading internet and multimedia company declined sharply, mainly due to its stake in a similar firm in China, where a regulatory crackdown on technology companies slowed online advertising growth. Rising capital costs further pressured the company.

The financials sector also detracted. Although insurance companies benefited from lower coronavirus-related claims, substantial claims from floods in April 2022 reduced earnings. The diversified financial services industry also declined. Rising interest rates prompted significant outflows from the bond market in the second quarter of 2022, adversely affecting the industry.

Portfolio Information

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Investment Objective

The iShares MSCI Turkey ETF (the “Fund”) seeks to track the investment results of a broad-based index composed of Turkish equities, as represented by the MSCI Turkey 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 May 28, 2019 reflects the performance of MSCI Turkey Investable Market Index. Index performance beginning on May 29, 2019 reflects the performance of the MSCI Turkey 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

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Portfolio Management Commentary

Stocks in Turkey declined modestly for the reporting period. While central banks around the world, led by the Fed, raised interest rates in response to rising prices, Turkey’s central bank lowered interest rates. That allowed the country’s economy to grow at a relatively strong rate despite losing some momentum in the first half of 2022. However, it also fed the nation’s soaring inflation and sharply decelerating currency. As inflation rose to 80%, Turkish citizens bought stocks as a hedge against the currency’s weakened buying power. Consequently, Turkey’s stock market advanced sharply, particularly in the latter half of the reporting period, outperforming most other global equity markets. However, the Turkish lira’s 54% decline relative to the U.S. dollar weighed notably on Turkey’s market performance in U.S. dollar terms.

The consumer staples sector detracted the most from the Index’s return due to currency effects, even as the food retail industry strengthened domestically. Ahead-of-expectations revenue and earnings propelled the stock of the nation’s leading grocery chain in local currency terms, however, it declined in U.S. dollar terms.

The Turkish lira’s decline also led the communication services sector to detract from the Index’s return. Although the country’s largest wireless telecommunication services provider reported significantly increased revenue and earnings, its stock fell as currency effects diminished the value of those gains in U.S. dollar terms.

On the upside, the industrials sector contributed as Turkey’s leading airline benefited from the currency weakness. Vacation travel increased amid the easing of coronavirus pandemic-related restrictions. The weak currency attracted foreign visitors to the country, improving the industry outlook. The energy sector also contributed as the nation’s largest refining business benefited from elevated fuel prices, significantly boosting revenue and earnings.

Portfolio Information

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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.

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Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended August 31, 2022 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:

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Derivative Financial Instruments Categorized by Risk Exposure (continued)

For the period ended August 31, 2022, 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.