Quantitative Master Series N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07899 and 811-07885

Name of Fund:  BlackRock Index Funds, Inc.

BlackRock International Index Fund

BlackRock Small Cap Index Fund

Quantitative Master Series LLC

Master Small Cap Index Series

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Index Funds, Inc. and Quantitative Master Series LLC, 55 East 52^nd Street, New York, NY 10055

Registrants’ telephone number, including area code: (800) 441-7762

Date of fiscal year end: 12/31/2016

Date of reporting period: 12/31/2016

Item 1 – Report to Stockholders

DECEMBER 31, 2016

  ANNUAL REPORT  

BlackRock Index Funds, Inc.

^Ø   BlackRock International Index Fund

^Ø   BlackRock Small Cap Index Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

	Page
The Markets in Review		3
Annual Report:
Fund Summary		4
About Fund Performance		8
Disclosure of Expenses		8
Derivative Financial Instruments		8
Fund Financial Statements:
Schedule of Investments		9
Statements of Assets and Liabilities		19
Statements of Operations		20
Statements of Changes in Net Assets		21
Fund Financial Highlights		22
Fund Notes to Financial Statements		28
Fund Report of Independent Registered Public Accounting Firm		40
Important Tax Information		40
Series Portfolio Information		41
Series Financial Statements:
Schedule of Investments		42
Statement of Assets and Liabilities		62
Statement of Operations		63
Statements of Changes in Net Assets		64
Series Financial Highlights		64
Series Notes to Financial Statements		65
Series Report of Independent Registered Public Accounting Firm		72
Disclosure of Investment Advisory Agreement		73
Officers and Directors		74
Additional Information		77

2 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

The Markets in Review

Dear Shareholder,

The year 2016 started on a fraught note with worries about slowing growth in China, plunging oil prices and sliding share prices. Then reflationary expectations in the United States helped drive a second-half global growth pick-up and big market reversals. As such, higher-quality asset classes such as Treasury bonds, municipals and investment grade credit prevailed in the first half of the year, only to struggle in the second. In contrast, risk assets sold off at the start of the year and rebounded in the latter half, with some asset classes posting strong year-end returns.

A key takeaway from 2016’s market performance is that economics can trump politics. The global reflationary theme — governments taking policy action to support growth — was the dominant driver of 2016 asset returns, outweighing significant political upheavals and uncertainty. This trend accelerated after the U.S. election on expectations for an extra boost to U.S. growth via fiscal policy.

Markets were remarkably resilient during the year. Spikes in equity volatility after big surprises such as the U.K.’s vote to leave the European Union and the outcome of the U.S. presidential election were short-lived. Instead, political surprises and initial sell-offs were seized upon as buying opportunities. We believe this reinforces the case for taking the long view rather than reacting to short-term market noise.

Asset returns varied widely in 2016. Perceived safe assets such as government bonds and low-volatility shares underperformed the higher-risk areas of the market. And the reversal of longstanding trends created opportunities, such as in the recovery of value stocks and commodities.

We expect some of these trends to extend into 2017 and see the potential for more flows into risk assets this year. Learn more by reading our market insights at blackrock.com.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of December 31, 2016
	6-month			12-month
U.S. large cap equities (S&P 500® Index)		7.82	%		11.96	%
U.S. small cap equities (Russell 2000® Index)		18.68			21.31
International equities (MSCI Europe, Australasia, Far East Index)		5.67			1.00
Emerging market equities (MSCI Emerging Markets Index)		4.49			11.19
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.18			0.33
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		(7.51	)		(0.16	)
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)		(2.53	)		2.65
Tax-exempt municipal bonds (S&P Municipal Bond Index)		(3.43	)		0.77
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		7.40			17.13
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of December 31, 2016 BlackRock International Index Fund

Investment Objective

BlackRock International Index Fund’s (the “Fund”) investment objective is to match the performance of the MSCI EAFE Index (Europe, Australasia, Far East) (the “MSCI EAFE Index”) in U.S. dollars with net dividends as closely as possible before the deduction of Fund expenses. On May 19, 2016, the Board approved the conversion of the Fund, a series of BlackRock Index Funds, Inc., from a “master-feeder” structure into a stand-alone mutual fund effective August 1, 2016.

Portfolio Management Commentary

How did the Fund perform?

• For the 12-month period ended December 31, 2016, the Fund’s Institutional Shares returned 0.99%, Investor A Shares returned 0.78% and Class K Shares returned 1.03%. The benchmark MSCI EAFE Index returned 1.00% for the same period. The MSCI EAFE Index is a free float-adjusted, market-capitalization weighted index designed to measure equity performance of developed markets, excluding the United States and Canada.

• Returns for the Fund’s respective share classes differ from the benchmark index based on individual share-class expenses.

Describe the market environment.

• The year had its worst monthly start since 2008 as the markets struggled with weakness in China and plunging oil prices. Performance declined early in the reporting period as concerns about the slowing global economy rattled developed markets globally. Oil price stability toward the end of the first quarter helped decrease global volatility and fuel the recovery as well.

• Performance of equity indexes was mixed in the second quarter amid recovering oil prices, uncertainty about a potential Federal Reserve (the “Fed”) rate hike and the U.K.’s referendum on European Union (“EU”) membership. The U.K.’s decision to leave the EU shocked investors globally and resulted in a sharp two-day selloff, after which developed markets rallied into the end of the month and recovered much of the losses.

• Global equity markets broadly rallied during the third quarter as the Fed kept rates unchanged, Japan announced additional fiscal and monetary stimulus, and the Bank of England cut rates. However, weak macro data out of China, a terrorist attack in Thailand, flooding in Louisiana, and a more hawkish tone from Fed officials hindered some performance for the quarter.

• Developed markets rallied in the last quarter of the year as global investors embraced the results of the U.S. election and strong macro data, although a stronger U.S. dollar subdued gains for U.S. investors. The year ended with a global equity rally as strong global economic data and continued optimism around president-elect Trump’s reflationary policies outweighed the effects of the European Central Bank’s decision to reduce the pace of its asset purchases and diplomatic tensions between the United States and other major powers.

Describe recent portfolio activity.

• During the period, as changes were made to the composition of the MSCI EAFE Index, the Fund purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.

Describe portfolio positioning at period end.

• The Fund remains positioned to match the risk characteristics of its benchmark index, irrespective of the future direction of international markets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Portfolio Information

Ten Largest Holdings	Percent of Net Assets
Nestlé SA, Registered Shares		2	%
Novartis AG, Registered Shares		1
HSBC Holdings PLC		1
Roche Holding AG		1
Toyota Motor Corp.		1
Royal Dutch Shell PLC, Class A		1
BP PLC		1
TOTAL SA		1
Royal Dutch Shell PLC, Class B		1
British American Tobacco PLC		1

Geographic Allocation	Percent of Net Assets
Japan		23	%
United Kingdom		15
France		10
Germany		9
Switzerland		9
Australia		7
Netherlands		5
Hong Kong		3
Spain		3
Sweden		3
Italy		2
Denmark		2
Other1		6
Other Assets Less Liabilities		3

¹  Includes holdings within countries that are 1% or less of net assets. Please refer to the Schedule of Investments for such countries.

4 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

BlackRock International Index Fund

Total Return Based on a $10,000 Investment

¹  Assuming transaction costs and other operating expenses, including administration fees, if any.

²  Prior to August 1, 2016, the Fund invested all of its assets in the Master International Index Series, a series of Quantative Master Series, LLC. The Master International Index Series invested in a statistically selected sample of equity securities included in the MSCI EAFE Index and in derivative instruments linked to the MSCI EAFE Index.

³  A free-float adjusted, market-capitalization weighted index designed to measure equity performance of developed markets, excluding the United States and Canada.

Performance Summary for the Period Ended December 31, 2016

	6-Month Total Returns			Average Annual Total Returns4
				1 Year			5 Years			10 Years
Institutional		4.53	%		0.99	%		6.24	%		0.38	%
Investor A		4.42			0.78			5.98			0.11
Class K		4.57			1.03			6.30			0.42
MSCI EAFE Index		5.67			1.00			6.53			0.75

⁴  See “About Fund Performance” on page 8 for a detailed description of share classes, including any related fees.

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical7
	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During the Period6		Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During the Period5		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,045.30	$	0.57	$	1,000.00	$	1,024.58	$	0.56		0.11	%
Investor A	$	1,000.00	$	1,044.20	$	1.90	$	1,000.00	$	1,023.28	$	1.88		0.37	%
Class K	$	1,000.00	$	1,045.70	$	0.36	$	1,000.00	$	1,024.78	$	0.36		0.07	%

⁶ For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Because the Fund invested all of its assets in Master International Index prior to August 1, 2016, the expense example reflects the net expenses of both the Fund and Master International Index.

⁷ Hypothetical 5% return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 8 for further information on how expenses were calculated.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 5

Fund Summary as of December 31, 2016 BlackRock Small Cap Index Fund

Investment Objective

BlackRock Small Cap Index Fund’s (the “Fund”) investment objective is to match the performance of the Russell 2000^® Index as closely as possible before the deduction of Fund expenses.

Portfolio Management Commentary

How did the Fund perform?

• For the 12-month period ended December 31, 2016, the Fund’s Institutional Shares returned 21.33%, Investor A Shares returned 21.04% and Class K Shares returned 21.32%. The benchmark Russell 2000^® Index returned 21.31% for the same period.

• The Fund invests all of its assets in Master Small Cap Index Series (the “Series”), a series of Quantative Master Series LLC.

Describe the market environment.

• The year started with U.S. stock prices falling due to fears of a global economic slowdown, oil prices cratering, and terrorist attacks in Istanbul, Jakarta and Pakistan. Domestic equity markets rebounded in the second quarter of 2016, despite increased volatility in June from the “Brexit”, i.e., the U.K.’s vote to leave the European Union.

• U.S. equities capitalized on the upward momentum from their second quarter rally, which continued through the second half of the reporting period, driven by a dovish Federal Reserve (the “Fed”) that kept rates unchanged and stronger-than-expected earnings releases versus analyst expectations. The U.S. economy continued to strengthen into the fourth

quarter as seen by strong macro data and tightening of the U.S. labor market. As such, the Fed’s decision to raise rates by 25 basis points at the end of the reporting period did not come as a big surprise.

• The U.S. election and the Fed were front and center in 2016. The year started with an increase in volatility as investors prepared for a possible Fed rate increase, and weighed probable outcomes of the U.S. election. While many people were shocked by the Trump win, markets did not experience the same type of volatility seen after the Brexit vote, with major U.S. indexes posting solid gains in November.

Describe recent portfolio activity.

• During the period, as changes were made to the composition of the Russell 2000^® Index, the Series purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.

Describe portfolio positioning at period end.

• The Series remains positioned to match the risk characteristics of its benchmark index, irrespective of the market’s future direction.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

6 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

BlackRock Small Cap Index Fund

Total Return Based on a $10,000 Investment

¹  Assuming transaction costs and other operating expenses, including administration fees, if any.

²  The Fund invests all of its assets in the Series. The Series may invest in a statistically selected sample of the stocks included in the Russell 2000^® Index and in derivative instruments linked to the Russell 2000^® Index.

³  An unmanaged index that is a subset of the Russell 3000^® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

Performance Summary for the Period Ended December 31, 2016

	6-Month Total Returns			Average Annual Total Returns4
				1 Year			5 Years			10 Years
Institutional		18.62	%		21.33	%		14.44	%		6.90	%
Investor A		18.49			21.04			14.18			6.63
Class K		18.61			21.32			14.51			6.96
Russell 2000® Index		18.68			21.31			14.46			7.07

⁴  See “About Fund Performance” on page 8 for a detailed description of share classes, including related fees, if any.

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical7
	Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During the Period6		Beginning Account Value July 1, 2016		Ending Account Value December 31, 2016		Expenses Paid During the Period5		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,186.20	$	0.71	$	1,000.00	$	1,024.48	$	0.66		0.13	%
Investor A	$	1,000.00	$	1,184.90	$	2.14	$	1,000.00	$	1,023.18	$	1.98		0.39	%
Class K	$	1,000.00	$	1,186.10	$	0.49	$	1,000.00	$	1,024.68	$	0.46		0.09	%

⁶  For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Because the Fund invests all of its assets in the Series, the expense example reflects the net expenses of both the Fund and the Series.

⁷  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on page 8 for further information on how expenses were calculated.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 7

About Fund Performance

• Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. Prior to March 31, 2011, Class K Shares’ performance results are those of Institutional Shares restated to reflect Class K Shares’ fees.

• Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year. These shares are generally available through financial intermediaries.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures

shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager and/or Administrator”), the Funds’ investment adviser and/or administrator, has contractually agreed to waive and/or reimburse a portion of the Funds’ expenses. Without such waiver and/or reimbursement, the Funds’ performance would have been lower. The Manager and/or administrator is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 4 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

Disclosure of Expenses

Shareholders of these Funds may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, administration fees, service fees, including 12b-1 fees, acquired fund fees and expenses and other fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on July 1, 2016 and held through December 31, 2016) 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 mutual funds.

The expense examples provide information about actual account values and actual expenses. 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 corresponding to their Fund and share class 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 these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of 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 sales charges, if any. 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.

Derivative Financial Instruments

International Index Fund and the Series may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the

counterparty to the transaction or illiquidity of the instrument. The Fund’s and Series’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund or Series can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s and Series’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

8 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments December 31, 2016 BlackRock International Index Fund (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Australia — 7.1%
AGL Energy Ltd.		269,419	$	4,286,578
Alumina Ltd.		784,345		1,025,605
Amcor Ltd.		457,153		4,920,255
AMP Ltd.		1,197,023		4,341,413
APA Group (a)		443,354		2,736,962
Aristocrat Leisure Ltd.		205,692		2,294,822
ASX Ltd.		73,533		2,634,324
Aurizon Holdings Ltd.		765,573		2,783,483
AusNet Services		804,849		916,240
Australia & New Zealand Banking Group Ltd.		1,154,945		25,283,102
Bank of Queensland Ltd.		132,943		1,136,135
Bendigo & Adelaide Bank Ltd.		159,193		1,456,259
BGP Holdings PLC (b)		783,183		8
BHP Billiton Ltd.		1,267,630		22,709,374
Boral Ltd.		482,878		1,879,882
Brambles Ltd.		619,174		5,525,557
Caltex Australia Ltd.		101,701		2,229,861
Challenger Ltd.		196,281		1,585,932
CIMIC Group Ltd.		29,853		751,135
Coca-Cola Amatil Ltd.		260,065		1,896,644
Cochlear Ltd.		21,942		1,936,613
Commonwealth Bank of Australia		672,012		39,866,478
Computershare Ltd.		159,385		1,430,013
Crown Resorts Ltd.		127,577		1,063,270
CSL Ltd.		176,694		12,778,476
Dexus Property Group		396,875		2,753,198
Domino’s Pizza Enterprises Ltd.		21,754		1,017,288
DUET Group (a)		1,064,603		2,102,412
Flight Centre Travel Group Ltd.		14,458		325,834
Fortescue Metals Group Ltd.		606,249		2,533,514
Goodman Group		759,504		3,900,528
GPT Group		747,674		2,710,722
Harvey Norman Holdings Ltd.		199,302		738,463
Healthscope Ltd.		572,674		944,025
Incitec Pivot Ltd.		699,652		1,810,409
Insurance Australia Group Ltd.		899,481		3,878,856
Lend Lease Group (a)		212,775		2,235,956
Macquarie Group Ltd.		117,228		7,343,397
Medibank Pvt Ltd.		1,167,386		2,371,733
Mirvac Group		1,395,790		2,143,504
National Australia Bank Ltd.		1,050,126		23,195,685
Newcrest Mining Ltd.		307,028		4,402,489
Oil Search Ltd.		510,559		2,627,725
Orica Ltd.		133,041		1,690,835
Origin Energy Ltd.		691,591		3,272,089
Qantas Airways Ltd.		159,123		381,184
QBE Insurance Group Ltd.		561,273		5,014,835
Ramsay Health Care Ltd.		52,761		2,594,080
REA Group Ltd.		22,709		902,458
Rio Tinto Ltd.		163,715		7,013,729
Santos Ltd.		691,335		1,991,483
Scentre Group		2,178,120		7,291,217
Seek Ltd.		139,458		1,493,616
Sonic Healthcare Ltd.		165,002		2,539,379
South32 Ltd.		2,143,612		4,219,812
Stockland		880,404		2,908,573
Suncorp Group Ltd.		510,643		4,972,196
Sydney Airport (a)		455,980		1,968,211
Tabcorp Holdings Ltd.		376,311		1,303,730
Tatts Group Ltd.		575,404		1,854,164
Telstra Corp. Ltd.		1,656,327		6,086,468
TPG Telecom Ltd.		123,145		604,539

Common Stocks	Shares		Value
Australia (continued)
Transurban Group (a)		785,110	$	5,843,022
Treasury Wine Estates Ltd.		303,772		2,336,804
Vicinity Centres		1,248,117		2,691,585
Vocus Communications Ltd.		237,370		661,010
Wesfarmers Ltd.		435,821		13,228,004
Westfield Corp.		783,860		5,300,019
Westpac Banking Corp.		1,315,164		30,872,024
Woodside Petroleum Ltd.		298,850		6,693,723
Woolworths Ltd.		490,330		8,510,966
				348,743,914
Austria — 0.2%
Andritz AG		24,967		1,251,190
Erste Group Bank AG (b)		114,141		3,337,159
Immoeast (b)		30,711		—
OMV AG		57,180		2,015,805
Raiffeisen Bank International AG (b)		39,292		716,253
Voestalpine AG		46,828		1,831,124
				9,151,531
Belgium — 1.1%
Ageas		73,375		2,900,279
Anheuser-Busch InBev SA		302,627		32,031,252
Colruyt SA		22,252		1,099,804
Groupe Bruxelles Lambert SA		30,636		2,566,743
KBC Group NV		97,074		5,997,987
Proximus		67,796		1,948,918
Solvay SA		28,104		3,285,543
Telenet Group Holding NV (b)		25,183		1,395,810
UCB SA		45,997		2,942,932
Umicore SA		39,651		2,255,801
				56,425,069
Denmark — 1.6%
A.P. Moeller — Maersk A/S, Class A		1,425		2,150,493
A.P. Moeller — Maersk A/S, Class B		2,558		4,077,358
Carlsberg A/S, Class B		38,881		3,348,787
Chr Hansen Holding A/S		40,637		2,247,443
Coloplast A/S, Class B		44,607		3,004,663
Danske Bank A/S		271,383		8,210,352
DONG Energy A/S (b)(c)		32,538		1,230,800
DSV A/S		77,597		3,446,101
Genmab A/S (b)		23,884		3,956,445
ISS A/S		62,602		2,109,868
Novo Nordisk A/S, Class B		753,443		27,027,645
Novozymes A/S, Class B		85,953		2,957,808
Pandora A/S		43,754		5,711,646
TDC A/S (b)		292,491		1,499,417
Tryg A/S		37,209		671,940
Vestas Wind Systems A/S		89,018		5,765,209
William Demant Holding A/S (b)		44,366		770,613
				78,186,588
Finland — 0.9%
Elisa OYJ		49,941		1,621,157
Fortum OYJ		184,321		2,817,561
Kone OYJ, Class B		133,486		5,964,631
Metso OYJ		37,252		1,059,779
Neste Oil OYJ		50,850		1,945,905
Nokia OYJ		2,280,655		10,938,392
Nokian Renkaat OYJ		39,688		1,475,515
Orion OYJ, Class B		45,244		2,010,274
Sampo OYJ, Class A		173,916		7,774,504

Portfolio Abbreviations

ADR	American Depositary Receipts
REIT	Real Estate Investment Trust

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 9

Schedule of Investments (continued) BlackRock International Index Fund

Common Stocks	Shares		Value
Finland (continued)
Stora Enso OYJ, Class R		241,099	$	2,579,034
UPM-Kymmene OYJ		214,163		5,237,474
Wartsila OYJ		55,993		2,510,523
				45,934,749
France — 9.8%
Accor SA		68,090		2,536,534
Aeroports de Paris		11,308		1,210,938
Air Liquide SA		153,350		17,052,325
Airbus Group SE		227,080		14,998,331
Alstom SA (b)		51,884		1,426,737
ArcelorMittal (b)		718,999		5,282,856
Arkema SA		27,637		2,701,535
AtoS SE		36,393		3,835,733
AXA SA		760,031		19,159,460
BNP Paribas SA		417,454		26,565,902
Bollore SA		354,110		1,246,849
Bouygues SA		82,799		2,964,148
Bureau Veritas SA		109,522		2,119,721
Cap Gemini SA		63,122		5,317,972
Carrefour SA		217,354		5,233,007
Casino Guichard-Perrachon SA		23,687		1,134,952
Christian Dior SE		21,662		4,538,444
Cie Generale des Etablissements Michelin		70,786		7,868,485
CNP Assurances		70,636		1,307,423
Compagnie de Saint-Gobain		200,322		9,318,450
Credit Agricole SA		459,797		5,691,681
Danone SA		234,467		14,836,733
Dassault Aviation SA		883		985,530
Dassault Systemes SA		51,722		3,936,873
Edenred		73,835		1,461,971
Eiffage SA		19,690		1,371,438
Electricite de France SA		128,170		1,304,112
Engie SA		588,499		7,490,971
Essilor International SA		82,788		9,340,823
Eurazeo		12,896		753,921
Eutelsat Communications SA		66,765		1,291,078
Fonciere Des Regions		13,150		1,146,555
Gecina SA		17,273		2,385,711
Groupe Eurotunnel SE, Registered Shares		154,181		1,464,708
Hermes International		10,463		4,292,106
ICADE		15,620		1,113,275
Iliad SA		11,019		2,116,168
Imerys SA		14,357		1,087,716
Ingenico Group SA		24,107		1,923,397
JCDecaux SA		23,090		678,935
Kering		29,420		6,599,011
Klepierre		81,313		3,190,604
L’Oreal SA		99,468		18,129,563
Lagardere SCA		51,741		1,436,093
Legrand SA		103,321		5,861,935
LVMH Moet Hennessy Louis Vuitton SE		108,146		20,620,372
Natixis SA		341,634		1,923,865
Orange SA		772,557		11,715,027
Pernod Ricard SA		80,632		8,725,999
Peugeot SA (b)		176,805		2,879,653
Publicis Groupe SA		74,265		5,117,197
Remy Cointreau SA		7,151		609,534
Renault SA		74,108		6,582,035
Rexel SA		126,208		2,073,582
Safran SA		120,431		8,661,866
Sanofi		454,848		36,781,373
Schneider Electric SE		217,551		15,112,930
SCOR SE		72,714		2,509,415
SEB SA		8,737		1,183,897
SES SA		134,167		2,952,048
SFR Group SA (b)		42,483		1,197,709

Common Stocks	Shares		Value
France (continued)
Societe BIC SA		9,961	$	1,353,467
Societe Generale SA		297,795		14,647,585
Sodexo SA		35,068		4,026,274
Suez		128,047		1,886,706
Technip SA		41,306		2,942,299
Thales SA		42,583		4,125,471
TOTAL SA		882,679		45,274,461
Unibail-Rodamco SE		38,126		9,088,245
Valeo SA		93,377		5,360,569
Veolia Environnement SA		185,322		3,148,964
Vinci SA		195,925		13,327,723
Vivendi SA		443,880		8,419,031
Wendel SA		11,895		1,431,380
Zodiac Aerospace		81,835		1,876,557
				481,265,944
Germany — 8.8%
adidas AG		73,403		11,576,987
Allianz SE, Registered Shares		179,868		29,685,034
Axel Springer AG		22,539		1,092,889
BASF SE		360,662		33,424,857
Bayer AG, Registered Shares		324,934		33,852,737
Bayerische Motoren Werke AG		127,409		11,866,366
Bayerische Motoren Werke AG, Preference Shares		21,253		1,623,094
Beiersdorf AG		37,520		3,178,239
Brenntag AG		58,093		3,220,026
Commerzbank AG		428,017		3,258,835
Continental AG		42,615		8,210,069
Covestro AG (c)		24,935		1,706,742
Daimler AG, Registered Shares		379,258		28,146,847
Deutsche Bank AG, Registered Shares (b)		545,713		9,898,871
Deutsche Boerse AG (b)		75,627		6,154,193
Deutsche Lufthansa AG, Registered Shares		105,061		1,354,313
Deutsche Post AG, Registered Shares		377,530		12,381,110
Deutsche Telekom AG, Registered Shares		1,295,928		22,234,497
Deutsche Wohnen AG, Bearer Shares		137,073		4,299,498
E.ON SE		792,718		5,576,725
Evonik Industries AG		62,158		1,852,857
Fraport AG Frankfurt Airport Services Worldwide		16,908		997,706
Fresenius Medical Care AG & Co. KGaA		83,548		7,061,554
Fresenius SE & Co. KGaA		159,232		12,421,819
Fuchs Petrolub SE, Preference Shares		28,016		1,173,571
GEA Group AG		67,017		2,689,421
Hannover Rueck SE		23,099		2,495,325
HeidelbergCement AG		57,591		5,360,568
Henkel AG & Co. KGaA		41,294		4,297,607
Henkel AG & Co. KGaA, Preference Shares		68,766		8,185,891
Hochtief AG		9,393		1,311,385
Hugo Boss AG		30,553		1,865,231
Infineon Technologies AG		441,865		7,643,147
Innogy SE (b)(c)		50,940		1,770,063
K+S AG, Registered Shares		71,063		1,692,796
Lanxess AG		37,568		2,460,074
Linde AG		72,331		11,865,002
MAN SE		12,440		1,234,748
Merck KGaA		50,677		5,276,532
Metro AG		74,504		2,476,299
Muenchener Rueckversicherungs AG, Registered Shares		62,585		11,820,926
OSRAM Licht AG		38,507		2,016,434
Porsche Automobil Holding SE, Preference Shares		56,618		3,075,488
ProSiebenSat.1 Media AG, Registered Shares		98,234		3,781,221
RWE AG (b)		181,576		2,253,112
SAP SE		386,001		33,391,035
Schaeffler AG		78,399		1,156,872
Siemens AG, Registered Shares		299,996		36,731,493
Symrise AG		45,972		2,793,153

See Notes to Financial Statements.

10 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) BlackRock International Index Fund

Common Stocks	Shares		Value
Germany (continued)
Telefonica Deutschland Holding AG		325,977	$	1,393,357
ThyssenKrupp AG		140,800		3,344,741
TUI AG		198,867		2,847,207
United Internet AG, Registered Shares		42,689		1,665,829
Volkswagen AG		13,486		1,935,578
Vonovia SE		179,507		5,828,118
Zalando SE (b)(c)		30,213		1,150,941
				432,059,030
Hong Kong — 3.1%
AIA Group Ltd.		4,745,000		26,580,727
ASM Pacific Technology Ltd.		106,704		1,128,437
Bank of East Asia Ltd.		464,932		1,774,931
BOC Hong Kong Holdings Ltd.		1,451,400		5,169,240
Cathay Pacific Airways Ltd.		704,263		924,233
Cheung Kong Infrastructure Holdings Ltd.		264,500		2,100,760
Cheung Kong Property Holdings Ltd.		1,065,939		6,509,680
CK Hutchison Holdings Ltd.		1,045,439		11,801,396
CLP Holdings Ltd.		638,687		5,857,325
First Pacific Co., Ltd.		585,250		408,272
Galaxy Entertainment Group Ltd.		875,000		3,789,730
Hang Lung Group, Ltd.		342,000		1,186,704
Hang Lung Properties Ltd.		909,000		1,916,762
Hang Seng Bank Ltd.		301,353		5,588,463
Henderson Land Development Co., Ltd.		410,742		2,176,924
HK Electric Investments & HK Electric Investments Ltd. (a)(c)		1,282,000		1,056,891
HKT Trust & HKT Ltd. (a)		928,560		1,137,348
Hong Kong & China Gas Co., Ltd.		3,057,162		5,399,535
Hong Kong Exchanges & Clearing Ltd.		447,502		10,524,519
Hongkong Land Holdings Ltd.		437,300		2,754,875
Hysan Development Co., Ltd.		206,791		852,814
Jardine Matheson Holdings Ltd.		98,500		5,435,007
Kerry Properties Ltd.		190,500		515,155
Li & Fung Ltd.		2,261,980		991,332
Link REIT		871,914		5,652,682
Melco Crown Entertainment Ltd. — ADR		83,947		1,334,757
MGM China Holdings Ltd.		440,000		908,880
MTR Corp. Ltd.		541,000		2,622,893
New World Development Co., Ltd.		2,230,968		2,350,563
NWS Holdings Ltd.		704,223		1,144,772
PCCW Ltd.		1,747,000		944,398
Power Assets Holdings Ltd.		549,500		4,833,988
Sands China Ltd.		997,000		4,301,231
Shangri-La Asia Ltd.		729,905		768,628
Sino Land Co., Ltd.		1,173,263		1,749,391
SJM Holdings Ltd.		538,000		419,819
Sun Hung Kai Properties Ltd.		563,324		7,093,645
Swire Pacific Ltd., Class A		223,077		2,122,749
Swire Properties Ltd.		456,600		1,256,970
Techtronic Industries Co., Ltd.		526,500		1,884,068
WH Group Ltd. (c)		3,031,500		2,443,682
Wharf Holdings Ltd.		562,357		3,725,038
Wheelock & Co., Ltd.		284,000		1,593,877
Wynn Macau Ltd.		694,400		1,097,721
Yue Yuen Industrial Holdings Ltd.		252,285		914,459
				154,745,271
Ireland — 0.7%
Bank of Ireland (b)		10,455,168		2,560,649
CRH PLC		324,873		11,205,693
DCC PLC		36,689		2,727,128
Experian PLC		371,888		7,200,354
James Hardie Industries PLC		180,685		2,852,191
Kerry Group PLC, Class A		63,157		4,514,144
Paddy Power Betfair PLC		33,210		3,533,770
Ryanair Holdings PLC (b)		9,354		142,824
				34,736,753

Common Stocks	Shares		Value
Israel — 0.7%
Azrieli Group Ltd.		20,626	$	895,176
Bank Hapoalim BM		385,846		2,290,195
Bank Leumi Le-Israel BM (b)		516,361		2,122,027
Bezeq The Israeli Telecommunication Corp. Ltd.		802,855		1,522,875
Check Point Software Technologies Ltd. (b)		48,849		4,125,786
Elbit Systems Ltd.		9,098		919,071
Frutarom Industries, Ltd.		14,827		756,803
Israel Chemicals Ltd.		165,989		677,664
Mizrahi Tefahot Bank Ltd.		47,961		700,453
Mobileye NV (b)		70,038		2,669,849
NICE Ltd.		22,742		1,560,385
Taro Pharmaceutical Industries Ltd. (b)		6,231		655,937
Teva Pharmaceutical Industries Ltd. — ADR		366,780		13,295,775
				32,191,996
Italy — 1.8%
Assicurazioni Generali SpA		454,599		6,738,228
Atlantia SpA		170,669		3,993,029
Enel SpA		2,979,468		13,096,840
Eni SpA		984,518		15,960,094
Ferrari NV		47,660		2,774,785
Intesa Sanpaolo SpA		5,456,989		13,727,525
Leonardo-Finmeccanica SpA (b)		99,828		1,398,118
Luxottica Group SpA		71,810		3,859,531
Mediobanca SpA		206,008		1,681,706
Poste Italiane SpA (c)		185,431		1,230,698
Prysmian SpA		69,483		1,780,872
Saipem SpA (b)		2,143,978		1,199,153
Snam SpA		1,006,314		4,138,819
Telecom Italia SpA (b)		4,174,325		3,685,670
Telecom Italia SpA, Non-Convertible Savings Shares (b)		2,263,286		1,642,677
Tenaris SA		183,350		3,272,894
Terna — Rete Elettrica Nazionale SpA		581,991		2,661,644
UniCredit SpA		2,086,974		5,993,224
UnipolSai SpA		560,158		1,194,774
				90,030,281
Japan — 23.3%
ABC-Mart, Inc.		9,600		543,088
Acom Co., Ltd. (b)		204,600		893,428
Aeon Co., Ltd.		275,200		3,889,564
AEON Financial Service Co., Ltd.		41,000		726,197
Aeon Mall Co., Ltd.		33,350		468,661
Air Water, Inc.		61,000		1,098,836
Aisin Seiki Co., Ltd.		72,400		3,132,705
Ajinomoto Co., Inc.		219,500		4,416,899
Alfresa Holdings Corp.		83,600		1,380,818
Alps Electric Co., Ltd.		68,000		1,633,901
Amada Holdings Co., Ltd.		127,600		1,421,536
ANA Holdings, Inc.		453,000		1,218,582
Aozora Bank Ltd.		507,000		1,791,360
Asahi Glass Co., Ltd.		413,100		2,802,739
Asahi Group Holdings Ltd.		152,500		4,801,475
Asahi Kasei Corp.		474,000		4,124,400
Ashikaga Holdings Co., Ltd.		357,200		1,320,186
Asics Corp.		64,300		1,281,364
Astellas Pharma, Inc.		833,500		11,563,438
Bandai Namco Holdings, Inc.		81,600		2,246,037
Bank of Kyoto Ltd.		106,000		785,731
Benesse Holdings, Inc.		19,000		522,025
Bridgestone Corp.		262,200		9,434,156
Brother Industries Ltd.		107,700		1,936,167
Calbee, Inc.		26,800		838,334
Canon, Inc.		414,900		11,684,488
Casio Computer Co., Ltd.		84,700		1,193,687
Central Japan Railway Co.		55,300		9,079,683

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 11

Schedule of Investments (continued) BlackRock International Index Fund

Common Stocks	Shares		Value
Japan (continued)
Chiba Bank Ltd.		295,000	$	1,808,388
Chubu Electric Power Co., Inc.		279,500		3,889,349
Chugai Pharmaceutical Co., Ltd.		82,700		2,372,170
Chugoku Bank Ltd.		58,000		831,813
Chugoku Electric Power Co., Inc.		105,900		1,239,518
Concordia Financial Group Ltd.		483,000		2,324,254
Credit Saison Co., Ltd.		61,200		1,089,108
CYBERDYNE, Inc. (b)(d)		29,900		421,621
Dai Nippon Printing Co., Ltd.		219,000		2,160,796
Dai-ichi Life Insurance Co., Ltd.		415,900		6,914,951
Daicel Corp.		128,600		1,413,834
Daiichi Sankyo Co., Ltd.		237,700		4,853,650
Daikin Industries Ltd.		90,200		8,263,121
Daito Trust Construction Co., Ltd.		26,300		3,953,881
Daiwa House Industry Co., Ltd.		219,800		5,994,026
Daiwa House REIT Investment Corp.		464		1,176,313
Daiwa Securities Group, Inc.		622,000		3,830,105
DeNA Co., Ltd.		40,900		893,872
Denso Corp.		188,900		8,171,144
Dentsu, Inc.		80,413		3,781,284
Don Quijote Holdings Co., Ltd.		41,300		1,524,188
East Japan Railway Co.		129,949		11,204,034
Eisai Co., Ltd.		97,100		5,564,544
Electric Power Development Co., Ltd.		50,000		1,147,578
FamilyMart UNY Holdings Co., Ltd.		28,900		1,923,007
FANUC Corp.		75,600		12,647,455
Fast Retailing Co., Ltd.		20,400		7,283,348
Fuji Electric Co., Ltd.		260,800		1,346,692
Fuji Heavy Industries Ltd.		247,700		10,092,390
FUJIFILM Holdings Corp.		167,800		6,353,877
Fujitsu Ltd.		744,000		4,119,935
Fukuoka Financial Group, Inc.		331,000		1,467,978
Hachijuni Bank Ltd.		186,400		1,078,577
Hakuhodo DY Holdings, Inc.		101,700		1,252,250
Hamamatsu Photonics KK		49,800		1,308,011
Hankyu Hanshin Holdings, Inc.		90,800		2,907,490
Hikari Tsushin, Inc.		9,100		847,101
Hino Motors Ltd.		114,900		1,167,390
Hirose Electric Co., Ltd.		13,800		1,706,586
Hiroshima Bank Ltd.		218,000		1,015,840
Hisamitsu Pharmaceutical Co., Inc.		21,600		1,078,854
Hitachi Chemical Co., Ltd.		35,600		888,087
Hitachi Construction Machinery Co., Ltd.		39,000		843,137
Hitachi High-Technologies Corp.		23,400		941,158
Hitachi Ltd.		1,926,000		10,385,262
Hitachi Metals Ltd.		89,400		1,203,629
Hokuriku Electric Power Co.		77,700		869,077
Honda Motor Co., Ltd.		633,600		18,498,137
Hoshizaki Corp.		20,000		1,583,383
Hoya Corp.		156,400		6,557,760
Hulic Co., Ltd.		121,900		1,081,545
Idemitsu Kosan Co., Ltd.		41,500		1,100,801
IHI Corp. (b)		624,000		1,616,096
Iida Group Holdings Co., Ltd.		65,000		1,232,220
Inpex Corp.		353,800		3,536,516
Isetan Mitsukoshi Holdings Ltd.		141,805		1,526,905
Isuzu Motors Ltd.		226,000		2,857,660
ITOCHU Corp.		599,700		7,940,480
J. Front Retailing Co., Ltd.		95,500		1,285,782
Japan Airlines Co., Ltd.		47,480		1,385,503
Japan Airport Terminal Co., Ltd. (d)		15,200		549,237
Japan Exchange Group, Inc.		192,900		2,751,194
Japan Post Bank Co., Ltd.		173,200		2,075,550
Japan Post Holdings Co., Ltd.		171,800		2,139,164
Japan Prime Realty Investment Corp.		351		1,384,804
Japan Real Estate Investment Corp.		497		2,714,265
Japan Retail Fund Investment Corp.		1,057		2,142,766

Common Stocks	Shares		Value
Japan (continued)
Japan Tobacco, Inc.		436,700	$	14,334,080
JFE Holdings, Inc.		208,700		3,156,050
JGC Corp.		91,700		1,661,264
JSR Corp.		66,200		1,042,011
JTEKT Corp.		77,400		1,234,204
JX Holdings, Inc.		786,760		3,324,389
Kajima Corp.		376,800		2,602,600
Kakaku.com, Inc.		58,700		969,906
Kamigumi Co., Ltd.		74,000		704,800
Kaneka Corp.		87,000		707,651
Kansai Electric Power Co., Inc. (b)		278,500		3,036,109
Kansai Paint Co., Ltd.		77,700		1,429,186
Kao Corp.		198,600		9,400,703
Kawasaki Heavy Industries Ltd.		622,000		1,946,963
KDDI Corp.		728,900		18,406,892
Keihan Holdings Co., Ltd.		199,000		1,305,323
Keikyu Corp.		208,000		2,409,300
Keio Corp.		250,000		2,053,547
Keisei Electric Railway Co., Ltd.		59,000		1,428,618
Keyence Corp.		17,792		12,174,169
Kikkoman Corp.		65,000		2,073,906
Kintetsu Group Holdings Co., Ltd.		675,000		2,572,212
Kirin Holdings Co., Ltd.		328,100		5,325,463
Kobe Steel Ltd. (b)		132,100		1,256,031
Koito Manufacturing Co., Ltd.		45,900		2,423,978
Komatsu Ltd.		357,400		8,095,160
Konami Holdings Corp.		32,300		1,303,572
Konica Minolta, Inc.		158,400		1,569,854
Kose Corp.		9,500		787,627
Kubota Corp.		405,400		5,777,278
Kuraray Co., Ltd.		152,200		2,282,324
Kurita Water Industries Ltd.		48,700		1,071,433
Kyocera Corp.		124,100		6,152,940
Kyowa Hakko Kirin Co., Ltd.		95,000		1,310,371
Kyushu Electric Power Co. Inc.		198,600		2,151,526
Kyushu Financial Group, Inc.		168,300		1,140,317
Lawson, Inc.		27,900		1,958,350
LINE Corp. (b)		16,800		573,530
Lion Corp.		93,000		1,524,397
LIXIL Group Corp.		101,300		2,295,991
M3, Inc.		72,900		1,832,780
Mabuchi Motor Co., Ltd.		20,100		1,044,478
Makita Corp.		41,300		2,759,619
Marubeni Corp.		621,700		3,516,381
Marui Group Co., Ltd.		85,100		1,239,875
Maruichi Steel Tube Ltd.		16,500		536,187
Mazda Motor Corp.		213,580		3,477,931
McDonald’s Holdings Co. Japan Ltd.		20,700		541,489
Medipal Holdings Corp.		60,200		948,277
Meiji Holdings Co., Ltd.		42,700		3,340,346
Minebea Co., Ltd.		118,300		1,103,883
Miraca Holdings, Inc.		18,800		840,848
MISUMI Group, Inc.		106,300		1,746,159
Mitsubishi Chemical Holdings Corp.		500,900		3,238,648
Mitsubishi Corp.		584,600		12,416,109
Mitsubishi Electric Corp.		758,000		10,543,144
Mitsubishi Estate Co., Ltd.		482,000		9,574,772
Mitsubishi Gas Chemical Co., Inc.		59,000		1,005,326
Mitsubishi Heavy Industries Ltd.		1,258,200		5,719,829
Mitsubishi Logistics Corp.		31,000		437,048
Mitsubishi Materials Corp.		37,900		1,159,255
Mitsubishi Motors Corp.		238,700		1,356,917
Mitsubishi Tanabe Pharma Corp.		103,700		2,030,435
Mitsubishi UFJ Financial Group, Inc.		5,008,574		30,889,486
Mitsubishi UFJ Lease & Finance Co., Ltd.		157,100		810,280
Mitsui & Co., Ltd.		684,900		9,384,712
Mitsui Chemicals, Inc.		390,000		1,747,410

See Notes to Financial Statements.

12 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) BlackRock International Index Fund

Common Stocks	Shares		Value
Japan (continued)
Mitsui Fudosan Co., Ltd.		359,000	$	8,311,028
Mitsui OSK Lines Ltd.		534,000		1,473,876
Mixi, Inc.		14,600		531,995
Mizuho Financial Group, Inc.		9,583,664		17,198,216
MS&AD Insurance Group Holdings, Inc.		196,370		6,081,098
Murata Manufacturing Co., Ltd.		76,200		10,175,498
Nabtesco Corp.		50,600		1,172,958
Nagoya Railroad Co., Ltd.		393,000		1,897,479
NEC Corp.		998,000		2,639,634
Nexon Co., Ltd.		61,100		882,967
NGK Insulators Ltd.		109,400		2,117,640
NGK Spark Plug Co., Ltd.		70,700		1,567,048
NH Foods Ltd.		64,000		1,726,499
Nidec Corp.		92,000		7,920,340
Nikon Corp.		143,700		2,231,723
Nintendo Co., Ltd.		44,400		9,229,667
Nippon Building Fund, Inc.		516		2,860,532
Nippon Electric Glass Co., Ltd.		205,500		1,108,766
Nippon Express Co., Ltd.		331,000		1,777,228
Nippon Paint Holdings Co., Ltd.		69,000		1,872,986
Nippon Prologis REIT, Inc.		531		1,085,826
Nippon Steel & Sumitomo Metal Corp.		311,000		6,888,292
Nippon Telegraph & Telephone Corp.		269,300		11,336,220
Nippon Yusen KK		646,000		1,196,319
Nissan Chemical Industries Ltd.		47,700		1,590,020
Nissan Motor Co., Ltd.		940,300		9,432,282
Nisshin Seifun Group, Inc.		69,840		1,046,475
Nissin Foods Holdings Co., Ltd.		19,900		1,043,829
Nitori Holdings Co., Ltd.		30,200		3,443,250
Nitto Denko Corp.		66,310		5,076,765
NOK Corp.		30,900		624,971
Nomura Holdings, Inc.		1,463,400		8,651,859
Nomura Real Estate Holdings, Inc.		57,800		980,863
Nomura Real Estate Master Fund, Inc.		1,513		2,289,969
Nomura Research Institute Ltd.		45,870		1,394,063
NSK Ltd.		196,600		2,270,626
NTT Data Corp.		52,400		2,531,528
NTT Docomo, Inc.		536,200		12,196,012
Obayashi Corp.		247,300		2,361,059
Obic Co., Ltd.		27,700		1,208,162
Odakyu Electric Railway Co., Ltd.		120,500		2,381,075
Oji Holdings Corp.		278,000		1,130,515
Olympus Corp.		116,100		4,000,196
Omron Corp.		73,600		2,812,621
Ono Pharmaceutical Co., Ltd.		166,600		3,630,983
Oracle Corp. Japan		12,100		608,680
Oriental Land Co., Ltd.		86,800		4,899,136
ORIX Corp.		522,000		8,124,538
Osaka Gas Co., Ltd.		739,000		2,835,586
Otsuka Corp.		23,400		1,091,476
Otsuka Holdings Co., Ltd.		153,600		6,690,876
Panasonic Corp.		848,200		8,602,574
Park24 Co., Ltd.		33,300		901,742
Pola Orbis Holdings, Inc.		7,000		577,102
Rakuten, Inc.		370,300		3,628,142
Recruit Holdings Co., Ltd.		145,300		5,823,097
Resona Holdings, Inc.		902,756		4,626,639
Ricoh Co., Ltd.		284,600		2,404,238
Rinnai Corp.		11,700		941,424
Rohm Co., Ltd.		32,300		1,853,146
Ryohin Keikaku Co., Ltd.		10,100		1,976,906
Sankyo Co., Ltd.		13,200		425,590
Santen Pharmaceutical Co., Ltd.		142,600		1,739,908
SBI Holdings, Inc.		71,440		907,712
Secom Co., Ltd.		82,100		5,998,563
Sega Sammy Holdings, Inc.		77,132		1,146,183
Seibu Holdings, Inc.		60,100		1,076,023

Common Stocks	Shares		Value
Japan (continued)
Seiko Epson Corp.		116,800	$	2,465,947
Sekisui Chemical Co., Ltd.		156,100		2,484,883
Sekisui House Ltd.		240,400		3,994,077
Seven & i Holdings Co., Ltd.		292,000		11,104,518
Seven Bank Ltd.		223,800		639,928
Sharp Corp. (b)		692,000		1,601,123
Shimadzu Corp.		95,000		1,509,263
Shimamura Co., Ltd.		10,000		1,246,828
Shimano, Inc.		30,700		4,808,626
Shimizu Corp.		198,000		1,807,337
Shin-Etsu Chemical Co., Ltd.		152,100		11,770,856
Shinsei Bank Ltd.		712,000		1,191,420
Shionogi & Co., Ltd.		115,900		5,539,199
Shiseido Co., Ltd.		152,700		3,859,337
Shizuoka Bank Ltd.		230,000		1,930,283
Showa Shell Sekiyu KK		52,700		489,606
SMC Corp.		22,500		5,353,299
Softbank Group Corp.		379,100		25,086,568
Sohgo Security Services Co., Ltd.		26,100		1,001,815
Sompo Japan Nipponkoa Holdings, Inc.		144,675		4,885,861
Sony Corp.		502,900		14,051,992
Sony Financial Holdings, Inc.		80,400		1,253,309
Stanley Electric Co., Ltd.		51,400		1,400,273
Start Today Co., Ltd.		63,000		1,085,256
Sumitomo Chemical Co., Ltd.		595,000		2,820,494
Sumitomo Corp.		469,000		5,505,783
Sumitomo Dainippon Pharma Co., Ltd.		55,600		954,336
Sumitomo Electric Industries Ltd.		313,600		4,515,624
Sumitomo Heavy Industries Ltd.		195,000		1,252,126
Sumitomo Metal Mining Co., Ltd.		187,000		2,385,687
Sumitomo Mitsui Financial Group, Inc.		522,650		19,904,060
Sumitomo Mitsui Trust Holdings, Inc.		131,382		4,700,678
Sumitomo Realty & Development Co., Ltd.		136,000		3,610,438
Sumitomo Rubber Industries Ltd.		79,300		1,254,712
Sundrug Co., Ltd.		14,800		1,023,290
Suntory Beverage & Food Ltd.		53,100		2,199,487
Suruga Bank Ltd.		59,200		1,321,787
Suzuken Co., Ltd.		24,000		783,901
Suzuki Motor Corp.		138,900		4,876,622
Sysmex Corp.		66,200		3,825,000
T&D Holdings, Inc.		216,200		2,853,278
Taiheiyo Cement Corp.		439,000		1,384,011
Taisei Corp.		406,000		2,835,084
Taisho Pharmaceutical Holdings Co., Ltd.		12,300		1,019,657
Taiyo Nippon Sanso Corp.		37,200		429,737
Takashimaya Co., Ltd.		124,000		1,020,735
Takeda Pharmaceutical Co., Ltd.		275,600		11,433,546
TDK Corp.		45,600		3,126,711
Teijin Ltd.		77,000		1,555,838
Terumo Corp.		137,400		5,065,291
THK Co., Ltd.		50,300		1,110,802
Tobu Railway Co., Ltd.		344,000		1,705,339
Toho Co., Ltd.		38,700		1,091,686
Toho Gas Co., Ltd.		165,000		1,340,102
Tohoku Electric Power Co., Inc.		175,900		2,217,385
Tokio Marine Holdings, Inc.		266,800		10,923,605
Tokyo Electric Power Co. Holdings, Inc. (b)		623,800		2,510,612
Tokyo Electron Ltd.		61,800		5,812,249
Tokyo Gas Co., Ltd.		769,000		3,471,372
Tokyo Tatemono Co., Ltd.		98,100		1,309,679
Tokyu Corp.		399,000		2,927,927
Tokyu Fudosan Holdings Corp.		209,500		1,233,863
TonenGeneral Sekiyu KK		102,000		1,074,083
Toppan Printing Co., Ltd.		203,000		1,935,646
Toray Industries, Inc.		578,700		4,673,306
Toshiba Corp. (b)		1,581,000		3,818,971
Toto Ltd.		59,100		2,334,364

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 13

Schedule of Investments (continued) BlackRock International Index Fund

Common Stocks	Shares		Value
Japan (continued)
Toyo Seikan Kaisha Ltd.		65,200	$	1,212,441
Toyo Suisan Kaisha Ltd.		34,500		1,248,186
Toyoda Gosei Co., Ltd.		28,900		674,502
Toyota Industries Corp.		61,400		2,919,277
Toyota Motor Corp.		1,046,288		61,342,187
Toyota Tsusho Corp.		81,900		2,128,761
Trend Micro, Inc.		41,400		1,469,441
Tsuruha Holdings, Inc.		12,800		1,211,425
Unicharm Corp.		151,300		3,304,430
United Urban Investment Corp.		1,325		2,021,237
USS Co., Ltd.		89,600		1,423,364
West Japan Railway Co.		66,000		4,042,890
Yahoo! Japan Corp.		548,400		2,100,350
Yakult Honsha Co., Ltd.		41,200		1,906,175
Yamada Denki Co., Ltd.		214,300		1,153,887
Yamaguchi Financial Group, Inc.		99,000		1,077,824
Yamaha Corp.		68,600		2,091,789
Yamaha Motor Co., Ltd.		115,200		2,526,226
Yamato Holdings Co., Ltd.		128,200		2,598,742
Yamazaki Baking Co., Ltd.		51,100		985,179
Yaskawa Electric Corp.		107,700		1,669,883
Yokogawa Electric Corp.		80,800		1,166,538
Yokohama Rubber Co., Ltd.		39,900		713,222
				1,148,914,278
Luxembourg — 0.1%
Eurofins Scientific SE		4,242		1,807,278
RTL Group SA (b)		14,198		1,040,190
				2,847,468
Mexico — 0.0%
Fresnillo PLC		95,911		1,424,698
Netherlands — 5.0%
ABN AMRO Group NV (c)		106,910		2,367,176
Aegon NV		682,760		3,750,842
AerCap Holdings NV (b)		64,421		2,680,558
Akzo Nobel NV		95,474		5,965,862
Altice NV Class A (b)		129,723		2,567,201
Altice NV Class B (b)		50,125		997,382
ASML Holding NV		146,538		16,422,570
CNH Industrial NV		393,676		3,415,925
EXOR NV		40,614		1,746,683
Gemalto NV		34,153		1,972,529
Heineken Holding NV		39,946		2,777,867
Heineken NV		89,178		6,682,813
ING Groep NV		1,533,531		21,590,198
Koninklijke Ahold Delhaize NV		501,778		10,568,949
Koninklijke Boskalis Westminster NV		38,152		1,323,572
Koninklijke DSM NV		75,752		4,539,609
Koninklijke KPN NV		1,365,391		4,037,628
Koninklijke Philips NV		367,067		11,221,943
Koninklijke Vopak NV		23,924		1,128,736
NN Group NV		117,296		3,970,766
NXP Semiconductor NV (b)		114,835		11,254,978
QIAGEN NV (b)		89,561		2,509,799
Randstad Holding NV		48,608		2,632,977
Royal Dutch Shell PLC, Class A		1,694,936		46,786,185
Royal Dutch Shell PLC, Class B		1,467,524		42,164,749
Unilever NV CVA		642,876		26,408,583
Wolters Kluwer NV		120,701		4,365,652
				245,851,732
New Zealand — 0.2%
Auckland International Airport Ltd.		398,759		1,729,617
Contact Energy Ltd.		333,423		1,078,190
Fletcher Building Ltd.		270,933		1,990,749
Mercury NZ Ltd.		263,786		541,911

Common Stocks	Shares		Value
New Zealand (continued)
Meridian Energy Ltd.		382,399	$	689,824
Ryman Healthcare Ltd.		173,120		974,777
Spark New Zealand Ltd.		619,457		1,465,771
				8,470,839
Norway — 0.6%
DNB ASA		378,184		5,614,253
Gjensidige Forsikring ASA		67,716		1,073,543
Marine Harvest ASA (b)		152,278		2,753,260
Norsk Hydro ASA		546,945		2,610,420
Orkla ASA		305,174		2,761,436
Schibsted ASA, Class A		36,434		833,873
Schibsted ASA, Class B		44,513		942,079
Statoil ASA		443,520		8,094,982
Telenor ASA		271,727		4,055,989
Yara International ASA		71,073		2,795,945
				31,535,780
Portugal — 0.1%
EDP — Energias de Portugal SA		838,206		2,551,119
Galp Energia SGPS SA		157,892		2,353,891
Jeronimo Martins SGPS SA		119,702		1,856,535
				6,761,545
Singapore — 1.2%
Ascendas Real Estate Investment Trust		957,546		1,497,068
CapitaLand Commercial Trust Ltd.		1,029,200		1,048,518
CapitaLand Ltd.		1,088,149		2,261,295
CapitaLand Mall Trust		943,700		1,224,029
City Developments Ltd.		148,635		848,227
ComfortDelGro Corp. Ltd.		786,516		1,336,505
DBS Group Holdings Ltd.		667,407		7,962,726
Genting Singapore PLC		2,125,227		1,322,737
Global Logistic Properties Ltd.		1,194,800		1,809,184
Golden Agri-Resources Ltd.		3,277,251		970,314
Hutchison Port Holdings Trust		1,842,900		799,669
Jardine Cycle & Carriage Ltd.		33,956		964,349
Keppel Corp. Ltd.		564,477		2,246,585
Oversea-Chinese Banking Corp. Ltd.		1,217,198		7,475,592
SATS, Ltd.		261,000		874,115
SembCorp Industries Ltd.		550,790		1,080,150
Singapore Airlines Ltd.		248,309		1,654,208
Singapore Exchange Ltd.		311,000		1,533,605
Singapore Press Holdings Ltd.		298,085		724,898
Singapore Technologies Engineering Ltd.		605,913		1,345,787
Singapore Telecommunications Ltd.		3,060,832		7,677,896
StarHub Ltd.		299,257		579,316
Suntec Real Estate Investment Trust		1,055,100		1,200,674
United Overseas Bank Ltd.		501,947		7,051,798
UOL Group Ltd.		244,199		1,006,728
Wilmar International Ltd.		706,470		1,745,304
Yangzijiang Shipbuilding Holdings Ltd.		1,357,383		761,097
				59,002,374
Spain — 3.0%
Abertis Infraestructuras SA		283,236		3,957,232
ACS Actividades de Construccion y Servicios SA		77,417		2,443,094
Aena SA (c)		28,449		3,875,923
Amadeus IT Group SA		174,738		7,925,089
Banco Bilbao Vizcaya Argentaria SA		2,583,356		17,409,042
Banco de Sabadell SA		2,070,906		2,877,678
Banco Popular Espanol SA		1,297,836		1,250,460
Banco Santander SA		5,746,410		29,894,382
Bankia SA		1,975,057		2,012,671
Bankinter SA		311,208		2,406,715
CaixaBank SA		1,285,867		4,237,929
Distribuidora Internacional de Alimentacion SA		267,745		1,313,176
Enagas SA		21,783		552,052

See Notes to Financial Statements.

14 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) BlackRock International Index Fund

Common Stocks	Shares		Value
Spain (continued)
Endesa SA		122,923	$	2,599,584
Ferrovial SA		216,906		3,868,355
Gas Natural SDG SA		135,535		2,549,858
Grifols SA		119,482		2,371,883
Iberdrola SA		2,092,844		13,703,699
Industria de Diseno Textil SA		431,555		14,701,339
International Consolidated Airlines Group SA		340,384		1,833,696
Mapfre SA		452,406		1,378,073
Red Electrica Corp. SA		65,428		1,232,674
Repsol SA		440,148		6,185,460
Telefonica SA		1,827,534		16,872,444
Zardoya Otis SA		79,739		672,902
				148,125,410
Sweden — 2.7%
Alfa Laval AB		130,565		2,153,716
Assa Abloy AB, Class B		389,921		7,214,954
Atlas Copco AB, A Shares		269,411		8,173,000
Atlas Copco AB, B Shares		157,096		4,271,037
Boliden AB		111,775		2,903,354
Electrolux AB, Class B		92,205		2,283,091
Getinge AB, Class B		69,458		1,112,925
Hennes & Mauritz AB, Class B		372,006		10,312,418
Hexagon AB, Class B		106,020		3,776,001
Husqvarna AB, Class B		152,365		1,182,215
ICA Gruppen AB		33,272		1,012,728
Industrivarden AB, Class C		72,727		1,352,556
Investor AB, Class B		173,616		6,468,955
Kinnevik AB		100,329		2,396,375
L E Lundbergforetagen AB, -B Shares		14,706		900,353
Lundin Petroleum AB (b)		67,425		1,461,209
Millicom International Cellular SA		22,529		960,060
Nordea Bank AB		1,177,336		13,045,616
Sandvik AB		423,411		5,223,225
Securitas AB, Class B		111,648		1,751,293
Skandinaviska Enskilda Banken AB, Class A		591,455		6,180,814
Skanska AB, Class B		131,261		3,090,457
SKF AB, Class B		146,220		2,681,114
Svenska Cellulosa AB, B Shares		248,535		6,995,393
Svenska Handelsbanken AB, Class A		589,127		8,159,673
Swedbank AB, Class A		350,567		8,446,726
Swedish Match AB		71,413		2,265,791
Tele2 AB, Class B		129,728		1,037,303
Telefonaktiebolaget LM Ericsson, Class B		1,214,574		7,118,582
TeliaSonera AB		1,037,695		4,168,620
Volvo AB, Class B		601,949		7,007,896
				135,107,450
Switzerland — 8.8%
ABB Ltd., Registered Shares (b)		753,197		15,848,552
Actelion Ltd., Registered Shares (b)		39,547		8,546,439
Adecco SA, Registered Shares		61,435		4,010,277
Aryzta AG (b)		30,407		1,337,187
Baloise Holding AG, Registered Shares		20,462		2,574,832
Barry Callebaut AG, Registered Shares (b)		776		948,054
Cie Financiere Richemont SA, Registered Shares		202,018		13,351,477
Coca-Cola HBC AG (b)		61,174		1,332,080
Credit Suisse Group AG, Registered Shares (b)		768,365		10,980,725
Dufry AG (b)		19,568		2,435,707
EMS-Chemie Holding AG, Registered Shares		2,905		1,475,247
Galenica AG		1,599		1,801,830
Geberit AG, Registered Shares		14,545		5,823,188
Givaudan SA, Registered Shares		3,780		6,918,049
Glencore PLC (b)		4,735,237		15,999,811
Julius Baer Group Ltd. (b)		85,865		3,803,968
Kuehne & Nagel International AG, Registered Shares		19,217		2,536,619

Common Stocks	Shares		Value
Switzerland (continued)
LafargeHolcim Ltd. (b)		181,319	$	9,517,810
Lindt & Spruengli AG		391		2,023,205
Lindt & Spruengli AG, Registered Shares		38		2,308,697
Lonza Group AG, Registered Shares (b)		19,703		3,405,251
Nestle SA, Registered Shares		1,219,380		87,353,415
Novartis AG, Registered Shares		874,933		63,628,138
Pargesa Holding SA, Bearer Shares		14,124		918,048
Partners Group Holding AG		7,430		3,478,262
Roche Holding AG		275,272		62,748,959
Schindler Holding AG, Participation Certificates		16,895		2,975,431
Schindler Holding AG, Registered Shares		7,428		1,296,545
SGS SA, Registered Shares		2,249		4,569,434
Sika AG, Bearer Shares		872		4,183,729
Sonova Holding AG, Registered Shares		19,935		2,411,927
STMicroelectronics NV		269,152		3,050,689
Swatch Group AG, Bearer Shares		11,493		3,566,997
Swatch Group AG, Registered Shares		23,157		1,413,233
Swiss Life Holding AG, Registered Shares (b)		12,402		3,503,301
Swiss Prime Site AG, Registered Shares (b)		27,660		2,263,323
Swiss Re AG		125,536		11,877,317
Swisscom AG, Registered Shares		10,466		4,678,240
Syngenta AG, Registered Shares		35,842		14,161,267
UBS Group AG, Registered Shares		1,443,042		22,562,609
Zurich Insurance Group AG (b)		58,256		16,009,903
				433,629,772
United Arab Emirates — 0.0%
Mediclinic International PLC		125,689		1,193,906
United Kingdom — 15.5%
3i Group PLC		395,655		3,422,569
Aberdeen Asset Management PLC		320,575		1,013,590
Admiral Group PLC		87,399		1,965,521
Anglo American PLC (b)		564,744		7,979,173
Antofagasta PLC		161,562		1,337,677
Ashtead Group PLC		185,181		3,599,988
Associated British Foods PLC		142,588		4,811,213
AstraZeneca PLC		498,819		27,239,374
Auto Trader Group PLC (c)		426,256		2,143,010
Aviva PLC		1,550,728		9,237,108
Babcock International Group PLC		92,563		1,085,709
BAE Systems PLC		1,283,067		9,332,440
Barclays PLC		6,642,794		18,230,125
Barratt Developments PLC		352,834		2,005,900
Berkeley Group Holdings PLC		55,587		1,921,577
BHP Billiton PLC		817,387		13,015,264
BP PLC		7,359,713		46,097,023
British American Tobacco PLC		730,465		41,399,370
British Land Co. PLC		378,540		2,937,660
BT Group PLC		3,353,950		15,140,733
Bunzl PLC		122,835		3,188,958
Burberry Group PLC		168,822		3,111,206
Capita PLC		253,120		1,655,047
Carnival PLC		70,377		3,565,960
Centrica PLC		2,147,102		6,183,744
Cobham PLC		597,887		1,203,811
Coca-Cola European Partners PLC		82,063		2,590,009
Compass Group PLC		641,184		11,850,069
Croda International PLC		50,517		1,986,811
Diageo PLC		993,292		25,775,762
Direct Line Insurance Group PLC		569,933		2,593,848
Dixons Carphone PLC		437,899		1,912,517
easyJet PLC		78,213		967,449
Fiat Chrysler Automobiles NV		373,636		3,398,901
G4S PLC		679,699		1,964,584
GKN PLC		630,516		2,569,915
GlaxoSmithKline PLC		1,912,345		36,733,250
Hammerson PLC		305,226		2,151,095

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 15

Schedule of Investments (continued) BlackRock International Index Fund

Common Stocks	Shares		Value
United Kingdom (continued)
Hargreaves Lansdown PLC		115,669	$	1,721,197
Hikma Pharmaceuticals PLC		50,179		1,169,556
HSBC Holdings PLC		7,793,963		62,886,449
IMI PLC		111,940		1,431,577
Imperial Brands PLC		375,061		16,345,358
Inmarsat PLC		155,332		1,437,224
InterContinental Hotels Group PLC		70,385		3,147,202
Intertek Group PLC		62,142		2,663,282
Intu Properties PLC		389,576		1,349,380
Investec PLC		227,765		1,493,819
ITV PLC		1,359,022		3,450,563
J. Sainsbury PLC		639,490		1,965,439
Johnson Matthey PLC		73,990		2,895,024
Kingfisher PLC		822,611		3,544,124
Land Securities Group PLC		286,183		3,759,620
Legal & General Group PLC		2,269,768		6,914,562
Lloyds Banking Group PLC		25,046,320		19,232,475
London Stock Exchange Group PLC		127,517		4,557,595
Marks & Spencer Group PLC		654,702		2,820,249
Meggitt PLC		341,331		1,927,561
Merlin Entertainments PLC (c)		248,144		1,369,876
Mondi PLC		140,924		2,877,984
National Grid PLC		1,460,438		17,063,373
NEX Group PLC		27		155
Next PLC		52,801		3,239,111
Old Mutual PLC		1,958,830		4,994,954
Pearson PLC		307,236		3,082,692
Persimmon PLC		114,776		2,504,139
Petrofac Ltd.		116,652		1,248,363
Provident Financial PLC		60,648		2,121,003
Prudential PLC		1,021,618		20,388,902
Randgold Resources Ltd.		34,302		2,635,334
Reckitt Benckiser Group PLC		250,479		21,217,555
RELX NV		388,380		6,532,505
RELX PLC		427,034		7,609,955
Rio Tinto PLC		482,505		18,421,067
Rolls-Royce Holdings PLC (b)		755,992		6,209,337
Royal Bank of Scotland Group PLC (b)		1,442,544		3,985,969
Royal Mail PLC		376,544		2,140,421
RSA Insurance Group PLC		379,711		2,738,214
Sage Group PLC		405,318		3,267,277
Schroders PLC		49,049		1,801,467
Segro PLC		287,065		1,623,643
Severn Trent PLC		95,270		2,603,612
Shire PLC		348,384		19,892,457
Sky PLC		411,612		5,017,932
Smith & Nephew PLC		356,285		5,347,558
Smiths Group PLC		149,175		2,596,704
SSE PLC		389,711		7,441,164
St. James’s Place PLC		199,892		2,493,408
Standard Chartered PLC (b)		1,287,208		10,497,069
Standard Life PLC		833,364		3,816,132
Tate & Lyle PLC		203,762		1,773,268

Common Stocks	Shares		Value
United Kingdom (continued)
Taylor Wimpey PLC		1,361,237	$	2,567,404
Tesco PLC (b)		3,284,610		8,375,089
TP ICAP PLC		98,023		523,442
Travis Perkins PLC		104,893		1,875,087
Unilever PLC		508,820		20,576,608
United Utilities Group PLC		251,822		2,791,268
Vodafone Group PLC		10,490,611		25,816,102
Weir Group PLC		77,079		1,791,254
Whitbread PLC		75,686		3,520,773
William Hill PLC		398,465		1,423,216
WM Morrison Supermarkets PLC		834,006		2,368,810
Wolseley PLC		98,961		6,041,186
Worldpay Group PLC (c)		673,397		2,235,739
WPP PLC		510,116		11,351,823
				761,840,617
Total Common Stocks — 96.3%				4,748,176,995
Total Preferred Securities
Preferred Stock — 0.2%
Germany — 0.2%
Volkswagen AG, Preference Shares, 0.00%		74,238		10,387,167
Total Preferred Securities — 0.2%				10,387,167
Rights
Spain — 0.0%
Repsol SA (Expires 01/17/22) (b)		440,148		163,089
Total Long-Term Investments (Cost — $4,744,038,231) — 96.5%				4,758,727,251
Short-Term Securities
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.36% (e)(f)		25,377,782		25,377,782
	Investment Value (000)
SL Liquidity Series, LLC, Money Market Series, 0.95% (e)(f)(g)	$	1,767		1,766,823
Total Short-Term Securities (Cost $27,144,593) — 0.6%				27,144,605
Total Investments (Cost — $4,771,182,824) — 97.1%				4,785,871,856
Other Assets Less Liabilities — 2.9%				144,414,188
Net Assets — 100.0%			$	4,930,286,044

Notes to Schedule of Investments

(a) A security contractually bound to one or more other securities to form a single saleable unit which cannot be sold separately.

(b) Non-income producing security.

(c) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(d) Security, or a portion of security, is on loan.

See Notes to Financial Statements.

16 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) BlackRock International Index Fund

(e) During the year ended December 31, 2016, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Investment Value Held at December 31, 2015			Shares/ Investment Value Purchased			Shares/ Investment Value Sold			Shares/ Investment Value Held at December 31, 2016		Value at December 31, 2016		Income			Realized Gain
BlackRock Liquidity Funds, T-Fund, Institutional Class		—			25,377,782	1		—		$	25,377,782	$	25,377,782	$	23,820		$	71
BlackRock Liquidity Funds, TempFund, Institutional Class		3,032,475	2		—			(3,032,475	)3		—		—		27,522			—
SL Liquidity Series, LLC, Money Market Series	$	5,230,513	2		—		$	(3,463,867	)3	$	1,766,646		1,766,823		364,179	4		116
iShares MSCI EAFE		—			14,141,762			(14,141,762	)		—		—		—			2,245,870
Total												$	27,144,605	$	415,521		$	2,246,057
1    Represents net shares purchased by the Fund and Master International Index. 2    Represents net shares/investment value held by Master International Index as of December 31, 2015. 3    Represents net shares/investment value sold by the Fund and Master International Index. 4    Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

(f) Current yield as of period end.

(g) Security was purchased with the cash collateral from loaned securities.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts
Contracts Long		Issue	Expiration	Notional Value		Unrealized Appreciation
	1,778	Euro STOXX 50 Index	March 2017	$	61,332,740	$	737,221
	439	FTSE 100 Index	March 2017	$	38,142,157		516,384
	467	Nikkei 225 Index	March 2017	$	38,099,209		16,041
	204	SPI 200 Index	March 2017	$	20,724,421		244,977
	Total					$	1,514,623

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:

Assets — Derivative Financial Instruments			Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts	Net unrealized appreciation	1		—		—	$	1,514,623		—		—		—	$	1,514,623

For the year ended December 31, 2016, the effect of derivative financial instruments in the Statements of Operation was as follows:

Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts		—		—	$	17,683,310	2		—		—		—	$	17,683,310
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—	$	676,991	2		—		—		—	$	676,991
1   Includes cumulative appreciation (depreciation) on futures contract, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. 2   Includes $9,032,965 and $(1,181,516) in realized gain/loss and unrealized gain/loss, respectively, allocated from Master International Index through July 31, 2016.

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	99,548,677	1

¹  The number represents the average quarterly balances of outstanding derivative financial instruments held at the Fund or Master International Index, prior to August 1, 2016.

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

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 17

Schedule of Investments (concluded) BlackRock International Index Fund

Fair Value Hierarchy as of Period End

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

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Common Stocks:
Australia		—	$	348,743,906	$	8	$	348,743,914
Austria		—		9,151,531		—		9,151,531
Belgium	$	32,031,252		24,393,817		—		56,425,069
Denmark		—		78,186,588		—		78,186,588
Finland		—		45,934,749		—		45,934,749
France		—		481,265,944		—		481,265,944
Germany		1,770,063		430,288,967		—		432,059,030
Hong Kong		1,334,757		153,410,514		—		154,745,271
Ireland		4,656,968		30,079,785		—		34,736,753
Israel		20,747,347		11,444,649		—		32,191,996
Italy		2,912,404		87,117,877		—		90,030,281
Japan		—		1,148,914,278		—		1,148,914,278
Luxembourg		—		2,847,468		—		2,847,468
Mexico		—		1,424,698		—		1,424,698
Netherlands		13,935,536		231,916,196		—		245,851,732
New Zealand		—		8,470,839		—		8,470,839
Norway		—		31,535,780		—		31,535,780
Portugal		—		6,761,545		—		6,761,545
Singapore		874,115		58,128,259		—		59,002,374
Spain		—		148,125,410		—		148,125,410
Sweden		—		135,107,450		—		135,107,450
Switzerland		—		433,629,772		—		433,629,772
United Arab Emirates		—		1,193,906		—		1,193,906
United Kingdom		523,597		761,317,020		—		761,840,617
Preferred Stock		—		10,387,167		—		10,387,167
Rights		163,089		—		—		163,089
Short-Term Securities		25,377,782		—		—		25,377,782
SubTotal	$	104,326,910	$	4,679,778,115	$	8	$	4,784,105,033
Investments Valued at NAV1								1,766,823
Total							$	4,785,871,856
	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments2
Assets:
Equity contracts	$	1,514,623		—		—	$	1,514,623
1    As of December 31, 2016, certain of the Fund’s investments were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy. 2    Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

During the year ended December 31, 2016, there were no transfers between levels.

See Notes to Financial Statements.

18 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Statements of Assets and Liabilities

December 31, 2016	BlackRock International Index Fund			BlackRock Small Cap Index Fund
Assets
Investments at value — unaffiliated (including securities loaned at value of $1,016,353)1	$	4,758,727,251			—
Investments at value — from Master Small Cap Index Series (the “Series”)2		—		$	406,357,180
Investments at value — affiliated3		27,144,605			—
Foreign currency at value4		126,780,023			—
Cash pledged for futures contracts		5,917,875			—
Receivables:
Capital shares sold		23,181,970			1,077,559
Dividends — unaffiliated		9,633,501			—
Investments sold		1,360,825			—
Variation margin on futures contracts		234,258			—
Securities lending income — affiliated		48,749			—
Dividends — affiliated		5,522			—
From the Administrator		—			6,253
Withdrawals from the Series		—			2,611,689
Prepaid expenses		147,841			43,003
Total assets		4,953,182,420			410,095,684
Liabilities
Cash collateral on securities loaned at value		1,766,695			—
Payables:
Capital shares redeemed		18,998,911			3,689,248
Variation margin on futures contracts		763,592			—
Professional fees		104,586			—
Investment advisory fees		41,559			—
Officer’s and Directors’ fees		28,049			—
Service fees		48,837			24,941
Administration fees		—			527
Other affiliates		14,395			—
Other accrued expenses		1,129,752			81,196
Total liabilities		22,896,376			3,795,912
Net Assets	$	4,930,286,044		$	406,299,772
Net Assets Consist of
Paid-in capital	$	5,151,148,156		$	333,797,516
Undistributed (distributions in excess of) net investment income		(5,856,612	)		362,733
Undistributed net realized gain (accumulated net realized loss)		(231,059,676	)		27,402,249
Net unrealized appreciation (depreciation)		16,054,176			44,737,274
Net Assets	$	4,930,286,044		$	406,299,772
Institutional:
Net assets	$	649,763,133		$	229,491,342
Shares outstanding, $0.0001 par value		55,995,334			12,921,212
Net asset value	$	11.60		$	17.76
Shares authorized		1.208 billion			208 million
Investor A:
Net assets	$	238,052,891		$	116,722,078
Shares outstanding, $0.0001 par value		20,629,304			6,566,123
Net asset value	$	11.54		$	17.78
Shares authorized		208 million			208 million
Class K:
Net assets	$	4,042,470,020		$	60,086,352
Shares outstanding, $0.0001 par value		348,173,358			3,376,971
Net asset value	$	11.61		$	17.79
Shares authorized		1.208 billion			1.208 billion
1    Investments at cost — unaffiliated	$	4,744,038,231			—
2    Investments at cost — from Master Small Cap Index Series		—		$	361,619,906
3    Investments at cost — affiliated	$	27,144,593			—
4    Foreign currency at cost	$	126,709,153			—

See Notes to Financial Statements.
	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016	19

Statements of Operations

Year Ended December 31, 2016	BlackRock International Index Fund			BlackRock Small Cap Index Fund
Investment Income
Dividends — unaffiliated	$	43,204,422			—
Securities lending — affiliated — net		112,153			—
Dividends — affiliated		24,304			—
Interest — unaffiliated		1,154			—
Foreign taxes withheld		(2,489,502	)		—
Net investment income allocated from Master International Index/the Series:
Dividends — unaffiliated		91,662,709		$	4,048,275
Securities lending — affiliated — net		252,026			558,814
Dividends — affiliated		27,038			65,004
Interest — unaffiliated		—			833
Foreign taxes withheld		(10,400,906	)		(1,519	)
Expenses		(967,751	)		(215,981	)
Fees waived		7,731			26,828
Total Investment Income		121,433,378			4,482,254
Expenses
Investment advisory		179,649			—
Administration		203,749			119,257
Service and distribution — class specific		488,401			242,591
Transfer agent — class specific		953,717			135,640
Accounting services		217,435			—
Custodian		271,190			—
Officer and Directors		70,784			21
Printing		159,118			29,308
Professional		78,592			58,712
Registration		139,996			72,588
Miscellaneous		62,013			10,590
Total expenses		2,824,644			668,707
Less:
Fees waived and/or reimbursed by the Manager		(6,761	)		—
Fees waived by the Administrator		(73,679	)		(117,740	)
Fees reimbursed by the Administrator		—			(47,044	)
Transfer agent fees waived and/or reimbursed — class specific		(355,810	)		(32,564	)
Fees paid indirectly		(46	)		—
Total expenses after fees waived and/or reimbursed and paid indirectly		2,388,348			471,359
Net investment income		119,045,030			4,010,895
Realized and Unrealized Gain (Loss)
Net realized gain (loss) allocated from the Series from:
Net realized gain (loss) on investments, futures contracts, foreign currency transactions and capital gain distributions from investment companies — affiliated		—			3,092,483
Net realized gain (loss) allocated from Master International Index Series for the period January 1, 2016 to July 31, 2016 from:
Investments — unaffiliated		(173,866,087	)		—
Futures contracts		9,032,965			—
Foreign currency transactions		4,167,690			—
		(160,665,432	)		3,092,483
Net realized gain (loss) from:
Investments — unaffiliated		1,008,420			—
Investments — affiliated		2,245,986			—
Futures contracts		8,650,345			—
Foreign currency transactions		(7,233,087	)		—
Capital gain distributions from investment companies — affiliated		71			—
		4,671,735			—
		(155,993,697	)		3,092,483
Net change in unrealized appreciation (depreciation) allocated from Master Small Cap Index Series on investments, futures contracts and foreign currency translations		—			58,844,843
Net change in unrealized appreciation (depreciation) allocated from Master International Index Series for the period January 1, 2016 to July 31, 2016 from:
Investments — unaffiliated		189,418,651			—
Futures contracts		(1,181,516	)		—
Foreign currency translations		294,718			—
		188,531,853			58,844,843
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		(32,663,289	)		—
Investments — affiliated		12			—
Futures contracts		1,858,507			—
Foreign currency translations		(345,120	)		—
		(31,149,890	)		—
		157,381,963			58,844,843
Net realized and unrealized gain (loss)		1,388,266			61,937,326
Net Increase in Net Assets Resulting from Operations	$	120,433,296		$	65,948,221

See Notes to Financial Statements.
20	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016

Statements of Changes in Net Assets

	BlackRock International Index Fund						BlackRock Small Cap Index Fund
	Year Ended December 31,						Year Ended December 31,
Increase (Decrease) in Net Assets:	2016			2015			2016			2015
Operations
Net investment income	$	119,045,030		$	74,354,152		$	4,010,895		$	2,591,228
Net realized gain (loss)		(155,993,697	)		(62,073,557	)		3,092,483			34,918,848
Net change in unrealized appreciation (depreciation)		157,381,963			(120,265,106	)		58,844,843			(49,576,309	)
Net increase (decrease) in net assets resulting from operations		120,433,296			(107,984,511	)		65,948,221			(12,066,233	)
Distributions to Shareholders1
From net investment income:
Institutional		(17,200,955	)		(63,271,021	)		(2,573,983	)		(1,402,219	)
Investor A		(5,855,782	)		(3,190,483	)		(1,110,447	)		(528,291	)
Class K		(109,944,264	)		(2,423,152	)		(571,127	)		(69,493	)
From net realized gain:
Institutional		—			—			(7,238,603	)		(3,470,794	)
Investor A		—			—			(3,836,781	)		(2,316,445	)
Class K		—			—			(1,583,983	)		(180,488	)
Decrease in net assets resulting from distributions to shareholders		(133,001,001	)		(68,884,656	)		(16,914,924	)		(7,967,730	)
Capital Share Transactions
Net increase in net assets derived from capital share transactions		1,958,596,053			1,047,843,791			112,849,771			130,987,610
Net Assets
Total increase in net assets		1,946,028,348			870,974,624			161,883,068			110,953,647
Beginning of year		2,984,257,696			2,113,283,072			244,416,704			133,463,057
End of year	$	4,930,286,044		$	2,984,257,696		$	406,299,772		$	244,416,704
Undistributed (distributions in excess of) net investment income, end of year	$	(5,856,612	)	$	700,709		$	362,733		$	600,536
1    Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.
	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016	21

Financial Highlights BlackRock International Index Fund

	Institutional
	Year Ended December 31,
	2016			2015			2014			2013			2012
Per Share Operating Performance
Net asset value, beginning of year	$	11.81		$	12.21		$	13.11		$	11.06		$	9.63
Net investment income1		0.28			0.34			0.24			0.32			0.33
Net realized and unrealized gain (loss)		(0.16	)		(0.46	)		(1.04	)		2.04			1.45
Net increase (decrease) from investment operations		0.12			(0.12	)		(0.80	)		2.36			1.78
Distributions from net investment income2		(0.33	)		(0.28	)		(0.10	)		(0.31	)		(0.35	)
Net asset value, end of year	$	11.60		$	11.81		$	12.21		$	13.11		$	11.06
Total Return3
Based on net asset value		0.99%			(0.91	)%		(6.13	)%		21.52%			18.58%
Ratios to Average Net Assets4,5
Total expenses		0.15%			0.12%			0.16%			0.40%			0.42%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.11%			0.09%			0.11%			0.35%			0.34%
Net investment income		2.44%			2.68%			1.91%			2.64%			3.22%
Supplemental Data
Net assets, end of year (000)	$	649,763		$	2,702,936		$	1,764,794		$	71,826		$	52,589
Portfolio turnover rate		42%	6		9%	7		6%	7		8%	7		21%	7

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Includes the Fund’s share of Master International Index’s allocated expenses and/or net investment income.

⁵  Includes the Fund’s share of Master International Index’s allocated fees waived of less than 0.01%.

⁶  Portfolio turnover rate includes transactions from Master International Index prior to August 1, 2016.

⁷  Portfolio turnover rate of Master International Index.

See Notes to Financial Statements.
22	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016

Financial Highlights (continued) BlackRock International Index Fund

	Investor A
	Year Ended December 31,
	2016			2015			2014			2013			2012
Per Share Operating Performance
Net asset value, beginning of year	$	11.75		$	12.12		$	13.02		$	10.99		$	9.57
Net investment income1		0.32			0.32			0.41			0.29			0.30
Net realized and unrealized gain (loss)		(0.23	)		(0.46	)		(1.25	)		2.02			1.45
Net increase (decrease) from investment operations		0.09			(0.14	)		(0.84	)		2.31			1.75
Distributions from net investment income2		(0.30	)		(0.23	)		(0.06	)		(0.28	)		(0.33	)
Net asset value, end of year	$	11.54		$	11.75		$	12.12		$	13.02		$	10.99
Total Return3
Based on net asset value		0.78%			(1.14	)%		(6.45	)%		21.20%			18.33%
Ratios to Average Net Assets4,5
Total expenses		0.38%			0.42%			0.52%			0.69%			0.69%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.37%			0.37%			0.43%			0.60%			0.60%
Net investment income		2.78%			2.54%			3.13%			2.41%			2.90%
Supplemental Data
Net assets, end of year (000)	$	238,053		$	168,008		$	332,475		$	308,624		$	223,754
Portfolio turnover rate		42%	6		9%	7		6%	7		8%	7		21%	7

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Includes the Fund’s share of Master International Index’s allocated expenses and/or net investment income.

⁵  Includes the Fund’s share of Master International Index’s allocated fees waived of less than 0.01%.

⁶  Portfolio turnover rate includes transactions from Master International Index prior to August 1, 2016.

⁷  Portfolio turnover rate of Master International Index.

See Notes to Financial Statements.
	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016	23

Financial Highlights (concluded) BlackRock International Index Fund

	Class K
	Year Ended December 31,
	2016			2015			2014			2013			2012
Per Share Operating Performance
Net asset value, beginning of year	$	11.82		$	12.21		$	13.11		$	11.06		$	9.63
Net investment income1		0.38			0.28			0.34			0.28			0.22
Net realized and unrealized gain (loss)		(0.26	)		(0.38	)		(1.14	)		2.09			1.57
Net increase (decrease) from investment operations		0.12			(0.10	)		(0.80	)		2.37			1.79
Distributions from net investment income2		(0.33	)		(0.29	)		(0.10	)		(0.32	)		(0.36	)
Net asset value, end of year	$	11.61		$	11.82		$	12.21		$	13.11		$	11.06
Total Return3
Based on net asset value		1.03%			(0.81	)%		(6.12	)%		21.57%			18.65%
Ratios to Average Net Assets4,5
Total expenses		0.07%			0.12%			0.15%			0.36%			0.33%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.07%			0.07%			0.11%			0.30%			0.29%
Net investment income		3.25%			2.25%			2.65%			2.29%			2.11%
Supplemental Data
Net assets, end of year (000)	$	4,042,470		$	113,314		$	16,014		$	2,336		$	710
Portfolio turnover rate		42%	6		9%	7		6%	7		8%	7		21%	7

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Includes the Fund’s share of Master International Index’s allocated expenses and/or net investment income.

⁵  Includes the Fund’s share of Master International Index’s allocated fees waived of less than 0.01%.

⁶  Portfolio turnover rate includes transactions from Master International Index prior to August 1, 2016.

⁷  Portfolio turnover rate of Master International Index.

See Notes to Financial Statements.
24	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016

Financial Highlights BlackRock Small Cap Index Fund

	Institutional
	Year Ended December 31,
	2016			2015			2014			2013			2012
Per Share Operating Performance
Net asset value, beginning of year	$	15.32		$	16.60		$	17.51		$	12.99		$	11.51
Net investment income1		0.23			0.24			0.20			0.22			0.24
Net realized and unrealized gain (loss)		3.03			(0.97	)		0.56			4.83			1.61
Net increase (decrease) from investment operations		3.26			(0.73	)		0.76			5.05			1.85
Distributions:2
From net investment income		(0.22	)		(0.14	)		(0.26	)		(0.19	)		(0.37	)
From net realized gain		(0.60	)		(0.41	)		(1.41	)		(0.34	)		—
Total distributions		(0.82	)		(0.55	)		(1.67	)		(0.53	)		(0.37	)
Net asset value, end of year	$	17.76		$	15.32		$	16.60		$	17.51		$	12.99
Total Return3
Based on net asset value		21.33%			(4.43	)%		4.81%			39.14%			16.10%
Ratios to Average Net Assets4,5
Total expenses		0.19%	6		0.22%			0.35%			0.51%			0.60%
Total expenses after fees waived and/or reimbursed		0.14%	6		0.16%			0.23%			0.29%			0.28%
Net investment income		1.44%	6		1.47%			1.17%			1.45%			1.88%
Supplemental Data
Net assets, end of year (000)	$	229,491		$	148,148		$	46,988		$	60,707		$	44,328
Portfolio turnover rate of the Series		39%			37%			21%			22%			68%

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.

⁵  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

⁶  Excludes expenses incurred indirectly of 0.01% as a result of the Series’ investments in underlying funds.

See Notes to Financial Statements.
	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016	25

Financial Highlights (continued) BlackRock Small Cap Index Fund

	Investor A
	Year Ended December 31,
	2016			2015			2014			2013			2012
Per Share Operating Performance
Net asset value, beginning of year	$	15.34		$	16.61		$	17.52		$	13.01		$	11.51
Net investment income1		0.18			0.18			0.16			0.19			0.21
Net realized and unrealized gain (loss)		3.03			(0.95	)		0.56			4.82			1.62
Net increase (decrease) from investment operations		3.21			(0.77	)		0.72			5.01			1.83
Distributions:2
From net investment income		(0.17	)		(0.09	)		(0.22	)		(0.16	)		(0.33	)
From net realized gain		(0.60	)		(0.41	)		(1.41	)		(0.34	)		—
Total distributions		(0.77	)		(0.50	)		(1.63	)		(0.50	)		(0.33	)
Net asset value, end of year	$	17.78		$	15.34		$	16.61		$	17.52		$	13.01
Total Return3
Based on net asset value		21.04%			(4.66	)%		4.54%			38.72%			15.96%
Ratios to Average Net Assets4,5
Total expenses		0.49%	6		0.53%			0.63%			0.77%			0.88%
Total expenses after fees waived and/or reimbursed		0.41%	6		0.43%			0.48%			0.55%			0.55%
Net investment income		1.14%	6		1.09%			0.95%			1.20%			1.64%
Supplemental Data
Net assets, end of year (000)	$	116,722		$	87,930		$	83,859		$	83,118		$	49,303
Portfolio turnover rate of the Series		39%			37%			21%			22%			68%

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.

⁵  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

⁶  Excludes expenses incurred indirectly of 0.01% as a result of the Series’ investments in underlying funds.

See Notes to Financial Statements.
26	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016

Financial Highlights (concluded) BlackRock Small Cap Index Fund

	Class K
	Year Ended December 31,
	2016			2015			2014			2013			2012
Per Share Operating Performance
Net asset value, beginning of year	$	15.35		$	16.62		$	17.53		$	13.01		$	11.51
Net investment income1		0.24			0.25			0.23			0.25			0.25
Net realized and unrealized gain (loss)		3.02			(0.97	)		0.54			4.81			1.62
Net increase (decrease) from investment operations		3.26			(0.72	)		0.77			5.06			1.87
Distributions:2
From net investment income		(0.22	)		(0.14	)		(0.27	)		(0.20	)		(0.37	)
From net realized gain		(0.60	)		(0.41	)		(1.41	)		(0.34	)		—
Total distributions		(0.82	)		(0.55	)		(1.68	)		(0.54	)		(0.37	)
Net asset value, end of year	$	17.79		$	15.35		$	16.62		$	17.53		$	13.01
Total Return3
Based on net asset value		21.32%			(4.41	)%		4.87%			39.14%			16.30%
Ratios to Average Net Assets4,5
Total expenses		0.17%	6		0.21%			0.32%			0.49%			0.68%
Total expenses after fees waived and/or reimbursed		0.10%	6		0.13%			0.18%			0.25%			0.25%
Net investment income		1.48%	6		1.50%			1.35%			1.57%			1.99%
Supplemental Data
Net assets, end of year (000)	$	60,086		$	8,338		$	2,617		$	1,196		$	40
Portfolio turnover rate of the Series		39%			37%			21%			22%			68%

¹  Based on average shares outstanding.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

³  Where applicable, assumes the reinvestment of distributions.

⁴  Includes the Fund’s share of the Series’ allocated expenses and/or net investment income.

⁵  Includes the Fund’s share of the Series’ allocated fees waived of less than 0.01%.

⁶  Excludes expenses incurred indirectly of 0.01% as a result of the Series’ investments in underlying funds.

See Notes to Financial Statements.
	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016	27

Notes to Financial Statements BlackRock Index Funds, Inc.

1. Organization:

BlackRock International Index Fund and BlackRock Small Cap Index Fund are each a series of BlackRock Index Funds, Inc. (the “Corporation”), which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Corporation is organized as a Maryland corporation. The following are referred to herein collectively as the “Funds” or individually, a “Fund”:

Fund Name	Herein Referred To As	Diversification Classification
BlackRock International Index Fund	International Index	Diversified
BlackRock Small Cap Index Fund	Small Cap Index	Diversified

Small Cap Index seeks to achieve its investment objectives by investing all of its assets in Master Small Cap Index Series (the “Series”), a series of Quantitative Master Series LLC (the “Master LLC”), an affiliate of Small Cap Index, which has the same investment objectives and strategies as Small Cap Index. The value of Small Cap Index’s investment in the Series reflects Small Cap Index’s proportionate interest in the net assets of the Series. The performance of Small Cap Index is directly affected by the performance of the Series. At December 31, 2016, the percentage of the Series owned by the Small Cap Index was 61.0%. The financial statements of the Series, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Small Cap Index’s financial statements.

Prior to August 1, 2016, International Index invested all of its assets in Master International Index Series (“Master International Index”), an affiliate of International Index, which had the same investment objective and strategies as International Index. The value of International Index’s investment in Master International Index reflected International Index’s proportionate interest in the net assets of Master International Index. The performance of International Index was directly affected by the performance of Master International Index. As of July 31, 2016, International Index owned 100% of Master International Index. For the period January 1, 2016 to July 31, 2016, Master International Index allocated $80,580,847, $(160,665,432) and $188,531,853 from net investment income, net realized losses and net change in unrealized appreciation (depreciation), respectively, to International Index.

On August 1, 2016, International Index ceased to invest in Master International Index as part of a “master-feeder” structure and began to operate as a stand-alone fund. In connection with this change, International Index entered into a management agreement with BlackRock Advisors, LLC (the “Manager”), the terms of which are substantially the same as the management agreement between BlackRock Advisors, LLC and Master International Index, including the management fee rate. International Index received net assets of $3,542,759,348, which included net unrealized appreciation of $47,204,065, in exchange for its ownership in Master International Index which included net unrealized appreciation of $60,197,540. The cost basis for the investments received from Master International Index was carried forward to align ongoing reporting of International Index’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The change into a stand-alone structure did not result in a change in net assets of International Index and did not create a taxable event for International Index.

The Funds offer multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional and Class K Shares are sold only to certain eligible investors. Investor A Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures. The Board of Directors of the Corporation and Board of Directors of the Master LLC are referred to throughout this report as the “Board of Directors” or the “Board” and the members are referred to as “Directors.”

Share Class	Initial Sales Charge		CDSC		Conversion Privilege
Institutional Shares		No		No		None
Investor A Shares		No		No		None
Class K Shares		No		No		None

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager” and/or the “Administrator”) or its affiliates, are included in a complex of open-end funds referred to as the Equity-Liquidity Complex.

2. Significant Accounting Policies:

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Foreign Currency: International Index’s books and records are maintained in U.S. dollars. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

28 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

International Index does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. International Index reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases where International Index enters into certain investments (e.g., futures contracts) that would be treated as “senior securities” for 1940 Act purposes, International Index may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, International Index may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For International Index, for financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when International Index is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. For Small Cap Index, for financial reporting purposes, contributions to and withdrawals from the Series are accounted for on a trade date basis. Small Cap Index records its proportionate share of the Series’ income, expenses and realized and unrealized gains and losses on a daily basis. Prior to August 1, 2016, International Index, for financial reporting purposes, contributions to and withdrawals from Master International Index were accounted for on a trade date basis. International Index recorded its proportionate share of Master International Index’s income, expenses and realized and unrealized gains and losses on a daily basis. In addition, the Funds accrue their own expenses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Distributions: Distributions paid by the Funds are recorded on the ex-dividend date. The character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Recent Accounting Standard: In April 2015, the Financial Accounting Standards Board issued “Disclosures for Investments in Certain Entities that Calculate Net Asset Value (“NAV”) per Share” which eliminates the requirement to categorize investments within the fair value hierarchy when fair value is based on the NAV per share and no quoted market value is available and have been excluded from the fair value hierarchy. As of December 31, 2016, certain investments of International Index were valued using NAV per share as no quoted market value is available and have been excluded from the fair value hierarchy.

In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update “Restricted Cash” which will require entities to include the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the beginning and ending cash balances in the Statement of Cash Flows. The guidance will be applied retrospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Management is evaluating the impact, if any, of this guidance on the International Index’s presentation in the Statement of Cash Flows.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager and/or Administrator, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on its relative net assets or other appropriate methods.

Through May 31, 2016, the Funds had an arrangement with their custodian whereby credits were earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. Credits previously earned may have been utilized until December 31, 2016. Under current arrangements effective June 1, 2016, the Funds no longer earn credits on uninvested cash, and may incur charges on uninvested cash balances and overdrafts, subject to certain conditions.

3. Investment Valuation and Fair Value Measurements:

Investment Valuation Policies: U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. Small Cap Index’s policy is to value its financial instruments at fair value. Small Cap Index records its investment in the Series at fair value based on Small Cap Index’s proportionate interest in the net assets of the Series. Prior to August 1, 2016, International Index recorded its investment in Master International Index at fair value based on International Index’s proportionate interest in the net

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 29

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

assets of Master International Index. Valuation of securities held by the Series is discussed in Note 3 of the Series’ Notes to Financial Statements, which are included elsewhere in this report. International Index’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. International Index determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the International Index’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price. Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of International Index’s net assets. Each business day, International Index uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• International Index values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act.

• Investments in open-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

• Futures contracts traded on exchanges are valued at their last sale price.

• Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the NYSE. Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include Market approach, Income approach and the Cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that International Index might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement.

The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of Corporation’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis. As a result of the inherent uncertainty in valuation of these investments, the fair values may differ from the values that would have been used had an active market existed.

For investments in equity or debt issued by privately-held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by third party pricing services utilize one or a combination of, but not limited to, the following inputs.

30 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)   recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii)   recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach	(i)   future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii)   quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)   audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii)   changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by International Index. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date International Index is calculating its NAV. This factor may result in a difference between the value of the investment and the price International Index could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that International Index has the ability to access

• Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including International Index’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Corporation’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. Securities and Other Investments:

Preferred Stock: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 31

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

Securities Lending: International Index may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with International Index collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by International Index is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of International Index and any additional required collateral is delivered to International Index, or excess collateral returned by International Index, on the next business day. During the term of the loan, International Index is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in International Index’s Schedule of Investments, and the value of any related collateral are shown separately in the Statements of Assets and Liabilities as a component of investments at value-unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by International Index under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, International Index, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and International Index can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of International Index’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Credit Suisse Securities (USA) LLC	$	233,446	$	(233,446	)		—
Morgan Stanley & Co. LLC		417,391		(417,391	)		—
SG Americas Securities LLC		365,516		(365,516	)		—
Total	$	1,016,353	$	(1,016,353	)		—

¹  Cash collateral with a value of $1,766,695 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty is not shown for financial reporting purposes.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, International Index benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value on the securities loaned in the event of borrower default. International Index could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. Derivative Financial Instruments:

International Index engages in various portfolio investment strategies using derivative contracts both to increase its returns and/or to manage its exposure to certain risks such as equity risk. Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: International Index invests in long and/or short positions in futures and options on futures contracts to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between International Index and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, International Index is required to deposit

32 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, International Index agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations 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. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

6. Investment Advisory and Administration Agreements and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

Investment Advisory and Administration: Effective August 1, 2016, the Corporation, on behalf of International Index, entered into an Investment Advisory Agreement with the Manager, International Index’s investment adviser, an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of International Index’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of International Index. For such services, International Index pays the Manager a monthly fee at an annual rate equal to 0.01% of the average daily value of the Fund’s net assets. Prior to August 1, 2016, International Index paid an administration fee of 0.01% of the average daily value of International Index’s net assets.

The Corporation, on behalf of Small Cap Index, entered into an Administration Agreement with the Administrator, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services (other than investment advice and related portfolio activities). For such services, Small Cap Index pays the Administrator a monthly fee at an annual rate of 0.04% of the average daily net assets of Small Cap Index. Small Cap Index does not pay an investment advisory fee or investment management fee.

Service Fees: The Corporation, on behalf of the Funds, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

	International Index		Small Cap Index
Investor A		0.25%		0.25%

BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing to the Funds. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing related services to the shareholders.

For the year ended December 31, 2016, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

	International Index		Small Cap Index
Investor A	$	488,401	$	242,591

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide Small Cap Index with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended December 31, 2016, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional		Investor A		Class K		Total
Small Cap Index	$	403		—		—	$	403

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 33

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

The Manager and/or Administrator maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing subscriptions and redemptions based upon instructions from shareholders. For the year ended December 31, 2016, each Fund reimbursed the Manager and/or Administrator the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional		Investor A		Class K		Total
International Index	$	5,486	$	2,709	$	6,722	$	14,917
Small Cap Index		—	$	2,959	$	162	$	3,121

For the year ended December 31, 2016, the following table shows the class specific transfer agent fees borne directly by each class of each Fund:

	Institutional		Investor A		Class K		Total
International Index	$	509,725	$	137,275	$	306,717	$	953,717
Small Cap Index	$	55,004	$	76,756	$	3,880	$	135,640

Expense Limitations, Waivers and Reimbursements: With respect to each Fund, the Manager and/or Administrator contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The current expense limitations as a percentage of each Fund’s average daily net assets are as follows:

Institutional	0.12%
Investor A	0.37%
Class K	0.07%

Prior to October 5, 2016, for Small Cap Index, the expense limitations as a percentage of average daily net assets were as follows:

Institutional	0.17%
Investor A	0.42%
Class K	0.12%

The Manager and/or Administrator has agreed not to reduce or discontinue these contractual expense limitations prior to May 1, 2018, unless approved by the Board, including a majority of the Directors who are not “interested persons” of the Funds, as defined in the 1940 Act (“Independent Directors”) or by a vote of a majority of the outstanding voting securities of the Funds. For the year ended December 31, 2016, the Manager and/or Administrator waived and/or reimbursed the following amounts, which are shown as fees waived by the Administrator, fees reimbursed by the Administrator, fees waived and/or reimbursed by the Manager and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statements of Operations.

	Institutional		Investor A		Class K		Total
International Index	$	37,722	$	4,128	$	31,829	$	73,679
Small Cap Index	$	97,017	$	53,841	$	13,926	$	164,784

For the year ended December 31, 2016, for International Index, the Manager waived and/or reimbursed $146, which is included in fees waived and/or reimbursed by the Manager in the Statements of Operations.

For the year ended December 31, 2016, the amounts shown as transfer agent fees waived and/or reimbursed-class specific were as follows:

	Institutional		Investor A		Class K		Total
International Index	$	242,739	$	23,323	$	89,748	$	355,810
Small Cap Index		—	$	28,696	$	3,868	$	32,564

With respect to International Index, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds. This amount is included in fees waived by the Manager in the Statements of Operations. For the year ended December 31, 2016, the amount waived was $6,181.

Effective September 1, 2016, the Manager voluntarily agreed to waive its advisory fee payable by International Index with respect to any portion of the Fund’s assets invested in equity or fixed-income mutual funds or exchange-traded funds that have a contractual management fee. Prior to September 1, 2016, the Manager did not waive such fees. This voluntary waiver may be reduced or discontinued at any time without notice. International Index waived $434 pursuant to these arrangements.

Securities Lending: The U.S. Securities and Exchange Commission has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for International Index, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. International Index is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by International Index.

34 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. International Index retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent. Pursuant to a securities lending agreement, BIM may lend securities only when the difference between the borrower rebate rate and the risk free rate exceeds a certain level (such securities, the “specials only securities”).

Pursuant to such agreement, International Index retains 80% of securities lending income. In addition, commencing the business day following the date that the aggregate securities lending income earned across certain funds in the Equity-Liquidity Complex in a calendar year exceeds a specified threshold, International Index, pursuant to the securities lending agreement, will retain for the remainder of the calendar year securities lending income in an amount equal to 85% of securities lending income.

The share of securities lending income earned by International Index is shown as securities lending — affiliated — net in the Statements of Operations. For the year ended December 31, 2016, International Index paid BIM the following amounts in total for securities lending agent services and collateral investment fees:

International Index $ 91,048

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow and lend under the Interfund Lending Program.

A Fund may lend in aggregate up to 15% of its net assets, but no more than 5% of its net assets, to any one borrowing fund through the Interfund Lending Program. A Fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets or any lower threshold provided for by the Fund’s investment restrictions. If a Fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended December 31, 2016, the Funds did not participate in the Interfund Lending Program.

Officers and Directors: Certain officers and/or directors of the Corporation are officers and/or directors of BlackRock or its affiliates. The Funds reimburse the Manager and/or Administrator for a portion of the compensation paid to the Corporations’ Chief Compliance Officer, which is included in Officer in the Statements of Operations.

Other Transactions: International Index may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the year ended December 31, 2016, the purchase and sale transactions which resulted in net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

Purchases	Sales	Net Realized Loss
$99,083,288	$450,528	$(49,570)

7. Purchases and Sales:

For International Index, for the year ended December 31, 2016, purchases and sales of investments, excluding short-term securities were $3,422,611,379 and $1,587,879,095, respectively, including purchases and sales of investments of $1,185,893,972 and $718,874,015, respectively, from Master International Index prior to August 1, 2016.

8. Income Tax Information:

It is the Funds’ policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of their taxable income to their shareholders. Therefore, no federal income tax provision is required.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2016. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of December 31, 2016, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 35

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of period end, the following permanent differences attributable to the income recognized from partnership interests, foreign currency transactions, the character of proceeds from redeemed shares, and the expiration of capital loss carryforwards were reclassified to the following accounts:

	International Index			Small Cap Index
Paid in capital	$	(18,669,139	)	$	2,572,596
Undistributed net investment income	$	7,398,650		$	6,859
Accumulated net realized loss	$	11,270,489		$	(2,579,455	)

The tax character of distributions paid was as follows:

		International Index		Small Cap Index
Ordinary income1	12/31/16	$	133,001,001	$	7,403,968
	12/31/15	$	68,884,656	$	2,021,900
Long-term capital gains1	12/31/16		—		12,080,673
	12/31/15		—		5,945,830
Total	12/31/16	$	133,001,001	$	19,484,641
	12/31/15	$	68,884,656	$	7,967,730

¹  Distribution amounts may include a portion of the proceeds from redeemed shares.

As of period ended, the tax components of accumulated net earnings (losses) were as follows:

	International Index				Small Cap Index
Undistributed net investment income			—		$	362,733
Capital loss carryforwards		$	(166,665,666	)		—
Net unrealized gains (losses)1			(50,462,143	)		72,139,523
Qualified late-year losses2			(3,734,303	)		—
Total		$	(220,862,112	)	$	72,502,256

¹  The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the timing of income recognition on partnership interests, the tax deferral of losses on wash sales, and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

²  The Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

As of period end, International Index had a capital loss carryforward available to offset future realized capital gains through the indicated expiration dates as follows:

Expires December 31,	International Index
No expiration date1		$	160,069,480
2017			6,596,186
Total		$	166,665,666

¹  Must be utilized prior to losses subject to expiration.

As of December 31, 2016, International Index’s gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	4,836,429,129
Gross unrealized appreciation	$	221,202,248
Gross unrealized depreciation		(271,759,521	)
Net unrealized depreciation	$	(50,557,273	)

9. Bank Borrowings:

International Index, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.1 billion credit agreement with a group of lenders. Under this agreement, International Index may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including International Index, can borrow up to an aggregate commitment amount of $1.6 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.12% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2017 unless extended or renewed. Prior to April 21, 2016, the credit agreement had a fee per annum of 0.06% on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which, if

36 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

applicable, are included in miscellaneous expenses in the Statements of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended December 31, 2016, International Index did not borrow under the credit agreement.

10. Principal Risks:

In the normal course of business, International Index invests in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer to meet all its obligations, including the ability to pay principal and interest when due (issuer credit risk). The value of securities held by International Index may decline in response to certain events, including those directly involving the issuers of securities owned by International Index. Changes arising from the general economy, the overall market and local, regional or global political and/or social instability, as well as currency, interest rate and price fluctuations, may also affect the securities’ value.

On October 11, 2016, BlackRock implemented certain changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. International Index may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. International Index may invest in illiquid investments and may experience difficulty in selling those investments in a timely manner at the price that they believe the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause International Index’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of International Index may lose value, regardless of the individual results of the securities and other instruments in which International Index invests.

The price a Fund could receive upon the sale of any particular portfolio investment may differ from International Index’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore International Index’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by International Index, and International Index could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. International Index’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: Similar to issuer credit risk, International Index may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: International Index invests a significant portion of its assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Fund’s investments.

The United Kingdom voted on June 23, 2016 to withdraw from the European Union, which may introduce significant new uncertainties and instability in the financial markets across Europe.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 37

Notes to Financial Statements (continued) BlackRock Index Funds, Inc.

International Index invests a significant portion of its assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Fund’s investments.

As of period end, International Index’s investments had the following industry classifications:

Industry	Percent of Net Assets
Bank		12	%
Pharmaceuticals		8
Insurance		6
Oil, Gas & Consumable Fuels		5
Other1		69

¹ All other industries held was less than 5% of net assets.

11. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Year Ended December 31, 2016						Year Ended December 31, 2015
International Index	Shares			Amount			Shares			Amount
Institutional
Shares sold		46,940,980		$	539,320,569			129,253,779		$	1,676,077,062
Shares issued in reinvestment of distributions		1,417,534			16,387,510			5,397,919			62,660,086
Shares redeemed		(221,253,679	)		(2,359,024,651	)		(50,322,944	)		(632,293,953	)
Net increase (decrease)		(172,895,165	)	$	(1,803,316,572	)		84,328,754		$	1,106,443,195
Investor A
Shares sold		12,259,774		$	140,963,736			10,737,540		$	135,131,083
Shares issued in reinvestment of distributions		506,036			5,814,683			272,793			3,158,559
Shares redeemed		(6,435,224	)		(74,118,861	)		(24,137,174	)		(298,272,532	)
Net increase (decrease)		6,330,586		$	72,659,558			(13,126,841	)	$	(159,982,890	)
Class K
Shares sold		470,599,166		$	5,227,329,648			9,109,639		$	111,769,916
Shares issued in reinvestment of distributions		7,791,229			90,071,735			145,522			1,687,623
Shares redeemed		(139,807,306	)		(1,628,148,316	)		(976,141	)		(12,074,053	)
Net increase		338,583,089		$	3,689,253,067			8,279,020		$	101,383,486
Total Net Increase		172,018,510		$	1,958,596,053			79,480,933		$	1,047,843,791
Small Cap Index
Institutional
Shares sold		9,719,997		$	152,952,403			10,457,624		$	172,750,723
Shares issued in reinvestment of distributions		548,537			9,697,642			309,095			4,805,308
Shares redeemed		(7,016,158	)		(110,173,690	)		(3,928,047	)		(64,210,331	)
Net increase		3,252,376		$	52,476,355			6,838,672		$	113,345,700
Investor A
Shares sold		2,332,975		$	36,799,680			2,588,913		$	43,034,640
Shares issued in reinvestment of distributions		269,661			4,760,921			172,798			2,734,164
Shares redeemed		(1,768,237	)		(28,054,830	)		(2,077,241	)		(34,522,308	)
Net increase		834,399		$	13,505,771			684,470		$	11,246,496

38 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (concluded) BlackRock Index Funds, Inc.

	Year Ended December 31, 2016						Year Ended December 31, 2015
Small Cap Index (concluded)	Shares			Amount			Shares			Amount
Class K
Shares sold		3,338,773		$	54,919,479			437,622		$	7,261,825
Shares issued in reinvestment of distributions		121,360			2,155,111			15,971			249,981
Shares redeemed		(626,556	)		(10,206,945	)		(67,612	)		(1,116,392	)
Net increase		2,833,577		$	46,867,645			385,981		$	6,395,414
Total Net Increase		6,920,352		$	112,849,771			7,909,123		$	130,987,610

12. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 39

Report of Independent Registered Public Accounting Firm BlackRock Index Funds, Inc.

To the Shareholders of BlackRock International Index Fund and BlackRock Small Cap Index Fund and Board of Directors of BlackRock Index Funds, Inc.:

We have audited the accompanying statements of assets and liabilities of BlackRock International Index Fund and BlackRock Small Cap Index Fund, each a series included in BlackRock Index Funds, Inc., (the “Funds”) including the schedule of investments of International Index Fund as of December 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of BlackRock International Index Fund and BlackRock Small Cap Index Fund, each of BlackRock Index Funds, Inc., as of December 31, 2016, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 23, 2017

Important Tax Information (Unaudited)

During the fiscal year ended December 31, 2016, the following information is provided with respect to the ordinary income distributions paid by the Funds.

	Payable Date		International Index		Small Cap Index
Qualified Dividend Income for Individuals1,2		7/21/2016 12/16/2016		100.00% 85.33%		73.79% 47.09%
Dividends Qualifying for the Dividend Received Deduction for Corporations1		7/21/2016 12/16/2016		— —		69.36% 44.84%
Foreign Source Income2		7/21/2016 12/16/2016		100.00% 100.00%		— —
Foreign Taxes Paid Per Share3		7/21/2016 12/16/2016		$0.000291 $0.031728		— —

¹  The Fund hereby designates the percentage indicated above or the maximum amount allowable by law.

²  Expressed as a percentage of the cash distribution grossed-up for foreign taxes.

³  The foreign taxes paid represent taxes incurred by the Funds on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax advisor regarding the appropriate treatment of foreign taxes paid.

Additionally, Small Cap Index Fund distributed long-term capital gains of $0.074233 and $0.46844 per share to shareholders of record on July 20, 2016 and December 15, 2016, respectively.

40 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Series Portfolio Information as of December 31, 2016 Quantitative Master Series LLC

Master Small Cap Index Series

Ten Largest Holdings	Percent of Net Assets
Advanced Micro Devices, Inc.		0.4	%
Microsemi Corp.		0.3
Webster Financial Corp.		0.3
Prosperity Bancshares, Inc.		0.3
Bank of the Ozarks, Inc.		0.2
RSP Permian, Inc.		0.2
Curtiss-Wright Corp.		0.2
Aspen Technology, Inc.		0.2
EMCOR Group, Inc.		0.2
XPO Logistics, Inc.		0.2

Sector Allocation	Percent of Net Assets
Financials		19	%
Information Technology		16
Industrials		14
Consumer Discretionary		12
Health Care		12
Real Estate		8
Materials		5
Energy		4
Utilities		3
Consumer Staples		3
Telecommunication Services		1
Short-Term Securities		7
Liabilities in Excess of Other Assets		(4	)

For Series compliance purposes, the Series’ sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 41

Schedule of Investments December 31, 2016 Master Small Cap Index Series (Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Advertising Agencies — 0.1%
Cogint, Inc. (a)		4,766	$	16,443
Marchex, Inc., Class B (a)		9,758		25,859
MDC Partners, Inc., Class A		16,915		110,793
National CineMedia, Inc.		21,290		313,602
QuinStreet, Inc. (a)		13,109		49,290
Trade Desk, Inc., Class A (a)		2,011		55,644
Viad Corp.		6,956		306,759
				878,390
Aerospace — 1.2%
AAR Corp.		11,197		370,061
Aerojet Rocketdyne Holdings, Inc. (a)		20,213		362,823
Aerovironment, Inc. (a)		6,728		180,512
Astronics Corp. (a)		6,643		224,799
Cubic Corp.		8,613		412,993
Curtiss-Wright Corp.		15,031		1,478,449
Ducommun, Inc. (a)		3,426		87,569
Esterline Technologies Corp. (a)		10,232		912,695
Kaman Corp.		9,076		444,089
KLX, Inc. (a)		18,848		850,233
Kratos Defense & Security Solutions, Inc. (a)		19,781		146,379
Moog, Inc., Class A (a)		11,205		735,944
Teledyne Technologies, Inc. (a)		11,621		1,429,383
Triumph Group, Inc.		16,681		442,047
				8,077,976
Agriculture, Fishing & Ranching — 0.5%
Alico, Inc.		1,015		27,557
Andersons, Inc.		9,201		411,285
Cal-Maine Foods, Inc. (b)		10,489		463,352
Calavo Growers, Inc.		5,290		324,806
Fresh Del Monte Produce, Inc.		11,156		676,388
Limoneira Co.		3,873		83,308
Sanderson Farms, Inc.		6,948		654,780
Seaboard Corp. (a)		90		355,679
				2,997,155
Air Transport — 0.5%
Air Transport Services Group, Inc. (a)		16,645		265,654
Allegiant Travel Co.		4,520		752,128
Atlas Air Worldwide Holdings, Inc. (a)		8,310		433,367
Bristow Group, Inc.		11,655		238,694
Era Group, Inc. (a)		6,888		116,889
Hawaiian Holdings, Inc. (a)		17,995		1,025,715
PHI, Inc. (a)		3,821		68,855
SkyWest, Inc.		17,365		632,954
				3,534,256
Alternative Energy — 0.3%
Ameresco, Inc., Class A (a)		7,361		40,486
Atlantica Yield PLC		20,264		392,109
Cobalt International Energy, Inc. (a)		133,900		163,358
EnerNOC, Inc. (a)		8,865		53,190
EP Energy Corp., Class A (a)		12,255		80,270
Green Brick Partners, Inc. (a)		7,300		73,365
Green Plains, Inc.		12,359		344,198
REX American Resources Corp. (a)		2,072		204,610
TerraForm Global, Inc., Class A (a)		30,295		119,665
TerraForm Power, Inc., Class A (a)		29,469		377,498
Vivint Solar, Inc. (a)(b)		7,937		20,239
				1,868,988

Common Stocks	Shares		Value
Aluminum — 0.1%
Century Aluminum Co. (a)		17,144	$	146,753
Kaiser Aluminum Corp.		6,015		467,305
				614,058
Asset Management & Custodian — 0.6%
Arlington Asset Investment Corp., Class A		4,608		68,291
B. Riley Financial, Inc.		3,026		55,830
Calamos Asset Management, Inc., Class A		6,201		53,019
Cohen & Steers, Inc.		7,282		244,675
Cowen Group, Inc., Class A (a)		8,523		132,106
Diamond Hill Investment Group, Inc.		1,240		260,871
Fifth Street Asset Management, Inc.		1,579		10,579
Financial Engines, Inc.		18,957		696,670
GAMCO Investors, Inc., Class A		1,534		47,385
KCG Holdings, Inc., Class A (a)		18,231		241,561
Manning & Napier, Inc.		5,048		38,112
Medley Management, Inc. (b)		1,457		14,424
OM Asset Management PLC		14,728		213,556
Oppenheimer Holdings, Inc., Class A		3,469		64,523
PJT Partners, Inc., Class A		5,835		180,185
Pzena Investment Management, Inc., Class A		4,681		52,006
Silvercrest Asset Management Group, Inc., Class A		2,757		36,255
Virtus Investment Partners, Inc.		1,563		184,512
Waddell & Reed Financial, Inc., Class A		28,525		556,523
Westwood Holdings Group, Inc.		2,807		168,392
Wins Finance Holdings, Inc. (a)(b)		443		79,740
WisdomTree Investments, Inc.		38,726		431,408
				3,830,623
Auto Parts — 0.9%
American Axle & Manufacturing Holdings, Inc. (a)		26,887		518,919
Dana, Inc.		51,384		975,268
Dorman Products, Inc. (a)		9,137		667,549
Federal-Mogul Holdings Corp. (a)		10,078		103,904
Fox Factory Holding Corp. (a)		8,496		235,764
Gentherm, Inc. (a)		12,390		419,402
Horizon Global Corp. (a)		6,394		153,456
Meritor, Inc. (a)		27,868		346,121
Metaldyne Performance Group, Inc.		4,940		113,373
Standard Motor Products, Inc.		7,270		386,909
Stoneridge, Inc. (a)		8,789		155,477
Superior Industries International, Inc.		8,644		227,769
Tenneco, Inc. (a)		19,267		1,203,610
Tower International, Inc.		8,047		228,133
Unique Fabricating, Inc.		1,757		25,652
Workhorse Group, Inc. (a)(b)		3,137		22,147
				5,783,453
Auto Services — 0.1%
Cooper Tire & Rubber Co.		19,061		740,520
Back Office Support, HR & Consulting — 1.8%
Advisory Board Co. (a)		13,972		464,569
Angie’s List, Inc. (a)		13,247		109,023
Barrett Business Services, Inc.		2,316		148,456
CBIZ, Inc. (a)		16,729		229,187
CEB, Inc.		11,441		693,325
Convergys Corp.		31,045		762,465
CRA International, Inc.		2,703		98,930
DHI Group, Inc. (a)		16,605		103,781
ExlService Holdings, Inc. (a)		11,123		561,044
Forrester Research, Inc.		3,346		143,711
FTI Consulting, Inc. (a)		14,756		665,200

Portfolio Abbreviations

REIT	Real Estate Investment Trust
CVR	Contingent Value Rights

See Notes to Financial Statements.

42 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Back Office Support, HR & Consulting (continued)
GP Strategies Corp. (a)		4,113	$	117,632
Hackett Group, Inc.		8,055		142,251
Heidrick & Struggles International, Inc.		6,010		145,141
Huron Consulting Group, Inc. (a)		7,435		376,583
ICF International, Inc. (a)		6,229		343,841
Insperity, Inc.		5,306		376,461
Kelly Services, Inc., Class A		10,311		236,328
Kforce, Inc.		9,917		229,083
Korn/Ferry International		19,441		572,149
Liquidity Services, Inc. (a)		8,361		81,520
MAXIMUS, Inc.		22,188		1,237,869
Navigant Consulting, Inc. (a)		16,258		425,634
NV5 Global Inc. (a)		2,457		82,064
On Assignment, Inc. (a)		17,780		785,165
Patriot National, Inc. (a)(b)		3,725		17,321
Paylocity Holding Corp. (a)		7,479		224,445
PFSweb, Inc. (a)		5,043		42,865
Resources Connection, Inc.		14,920		287,210
RPX Corp. (a)		21,229		229,273
ServiceSource International, Inc. (a)		20,208		114,781
Sykes Enterprises, Inc. (a)		13,366		385,743
TeleTech Holdings, Inc.		6,755		206,027
TriNet Group, Inc. (a)		14,485		371,106
TrueBlue, Inc. (a)		14,423		355,527
WageWorks, Inc. (a)		12,568		911,180
				12,276,890
Banks: Diversified — 11.0%
1st Source Corp.		5,430		242,504
Access National Corp. (b)		2,690		74,674
ACNB Corp.		2,027		63,344
Allegiance Bancshares, Inc. (a)		3,666		132,526
Ambac Financial Group, Inc. (a)		11,687		262,957
American National Bankshares, Inc.		2,668		92,846
Ameris Bancorp		11,535		502,926
Ames National Corp.		2,643		87,219
Arrow Financial Corp.		3,684		149,202
Atlantic Capital Bancshares, Inc. (a)		5,755		109,345
Bancfirst Corp.		2,683		249,653
Banco Latinoamericano de Comercio Exterior SA		10,387		305,793
Bancorp, Inc. (a)		17,555		137,982
BancorpSouth, Inc.		29,865		927,308
Bank of Marin Bancorp		1,993		139,012
Bank of NT Butterfield & Son Ltd.		4,116		129,407
Bank of the Ozarks, Inc.		30,347		1,595,949
Bankwell Financial Group, Inc.		1,910		62,075
Banner Corp.		10,189		568,648
Bar Harbor Bankshares		2,022		95,701
Beneficial Bancorp, Inc.		23,819		438,270
BNC Bancorp		13,786		439,773
Boston Private Financial Holdings, Inc.		27,834		460,653
Bridge Bancorp, Inc.		6,352		240,741
Bryn Mawr Bank Corp.		5,484		231,151
C&F Financial Corp.		1,151		57,377
Camden National Corp.		5,324		236,652
Capital City Bank Group, Inc.		3,482		71,311
Capitol Federal Financial, Inc.		43,901		722,610
Capstar Financial Holdings, Inc. (a)		1,440		31,622
Cardinal Financial Corp.		10,730		351,837
Carolina Financial Corp.		3,378		104,009
Cascade Bancorp (a)		10,653		86,502
Cathay General Bancorp		25,709		977,713
Centerstate Banks, Inc.		15,803		397,762
Central Pacific Financial Corp.		10,366		325,700
Central Valley Community Bancorp		3,041		60,698
Century Bancorp, Inc., Class A		976		58,560
Charter Financial Corp.		4,092		68,214

Common Stocks	Shares		Value
Banks: Diversified (continued)
Chemical Financial Corp.		22,481	$	1,217,796
Chemung Financial Corp. (b)		813		29,553
Citizens & Northern Corp.		3,803		99,639
City Holding Co.		5,006		338,406
CNB Financial Corp.		4,658		124,555
CoBiz Financial, Inc.		12,258		207,038
Codorus Valley Bancorp, Inc.		2,725		77,935
Columbia Banking System, Inc.		20,235		904,100
Community Bank System, Inc.		14,774		912,885
Community Trust Bancorp, Inc.		6,146		304,842
ConnectOne Bancorp, Inc.		11,383		295,389
County Bancorp, Inc.		1,834		49,463
CU Bancorp (a)		5,413		193,785
Customers Bancorp, Inc. (a)		8,421		301,640
CVB Financial Corp.		35,136		805,668
Eagle Bancorp, Inc. (a)		10,681		651,007
Enterprise Bancorp, Inc.		3,058		114,858
Enterprise Financial Services Corp.		6,623		284,789
Equity Bancshares, Inc., Class A (a)		1,693		56,953
EverBank Financial Corp.		35,605		692,517
Farmers Capital Bank Corp.		2,385		100,289
Farmers National Banc Corp.		8,299		117,846
FB Financial Corp. (a)		2,494		64,719
Fidelity Southern Corp.		6,842		161,950
Financial Institutions, Inc.		4,574		156,431
First Bancorp, Inc.		3,341		110,587
First Bancorp, North Carolina		6,487		176,057
First BanCorp, Puerto Rico (a)		41,126		271,843
First Busey Corp.		10,619		326,853
First Business Financial Services, Inc.		2,613		61,980
First Citizens BancShares, Inc., Class A		2,591		919,805
First Commonwealth Financial Corp.		30,226		428,605
First Community Bancshares, Inc.		5,156		155,402
First Community Financial Partners, Inc. (a)		4,742		55,481
First Connecticut Bancorp, Inc.		4,683		106,070
First Financial Bancorp		20,779		591,163
First Financial Bankshares, Inc.		22,085		998,242
First Financial Corp.		3,533		186,542
First Foundation, Inc. (a)		4,449		126,797
First Internet Bancorp		1,767		56,544
First Interstate Bancsystem, Inc., Class A		6,683		284,362
First Merchants Corp.		13,860		521,829
First Mid-Illinois Bancshares, Inc.		2,632		89,488
First Midwest Bancorp, Inc.		28,399		716,507
First NBC Bank Holding Co. (a)		5,355		39,092
First Northwest Bancorp (a)		3,960		61,776
First of Long Island Corp.		7,056		201,449
Flagstar Bancorp, Inc. (a)		7,364		198,386
FNB Corp.		72,063		1,155,170
Franklin Financial Network, Inc. (a)		4,016		168,070
Fulton Financial Corp.		59,066		1,110,441
German American Bancorp, Inc.		5,516		290,197
Glacier Bancorp, Inc.		26,370		955,385
Great Western Bancorp, Inc.		20,432		890,631
Guaranty Bancorp		6,103		147,693
Hancock Holding Co.		26,085		1,124,263
Hanmi Financial Corp.		10,751		375,210
HarborOne Bancorp, Inc. (a)		4,861		94,012
Heartland Financial USA, Inc.		7,976		382,848
Heritage Commerce Corp.		8,470		122,222
Heritage Oaks Bancorp		8,133		100,280
Home BancShares, Inc.		41,529		1,153,260
Hope Bancorp, Inc.		44,564		975,506
Horizon Bancorp		6,467		181,076
Iberiabank Corp.		15,278		1,279,532
Independent Bank Corp.		15,333		759,922
Independent Bank Group, Inc.		3,838		239,491

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 43

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Banks: Diversified (continued)
International Bancshares Corp.		19,092	$	778,954
Janus Capital Group, Inc.		50,113		665,000
Lake Sunapee Bank Group		2,726		64,306
Lakeland Bancorp, Inc.		15,016		292,812
Lakeland Financial Corp.		8,233		389,915
LCNB Corp.		2,841		66,053
Live Oak Bancshares, Inc.		6,669		123,377
Macatawa Bank Corp. (b)		8,561		89,120
MainSource Financial Group, Inc.		8,932		307,261
MB Financial, Inc.		25,922		1,224,296
MBT Financial Corp.		6,131		69,587
Mercantile Bank Corp.		5,252		198,000
Merchants Bancshares, Inc.		1,879		101,842
Middleburg Financial Corp.		1,526		53,029
Midland States Bancorp, Inc.		1,302		47,106
National Bank Holdings Corp., Class A		8,298		264,623
National Bankshares, Inc.		2,225		96,676
National Commerce Corp. (a)		2,881		107,029
NBT Bancorp, Inc.		14,363		601,522
Nicolet Bankshares, Inc. (a)		2,554		121,800
Northrim BanCorp, Inc.		2,202		69,583
OFG Bancorp		14,216		186,230
Old Line Bancshares, Inc.		2,828		67,815
Old National Bancorp		46,524		844,411
Old Second Bancorp, Inc.		9,377		103,616
Opus Bank		5,640		169,482
Orrstown Financial Services, Inc.		2,428		54,387
Pacific Continental Corp.		6,721		146,854
Pacific Mercantile Bancorp (a)		5,653		41,267
Pacific Premier Bancorp, Inc. (a)		9,416		332,856
Paragon Commercial Corp. (a)		497		21,729
Park National Corp.		4,494		537,752
Park Sterling Corp.		17,053		184,002
Peapack Gladstone Financial Corp.		5,209		160,854
Penns Woods Bancorp, Inc.		1,510		76,255
People’s Utah Bancorp		4,235		113,710
Peoples Bancorp, Inc.		5,674		184,178
Peoples Financial Services Corp.		2,292		111,620
Pinnacle Financial Partners, Inc.		14,809		1,026,264
Preferred Bank		4,204		220,374
Premier Financial Bancorp, Inc.		3,144		63,194
PrivateBancorp, Inc.		26,717		1,447,794
Prosperity Bancshares, Inc.		22,821		1,638,091
Provident Financial Services, Inc.		21,225		600,667
QCR Holdings, Inc.		3,939		170,559
Renasant Corp.		13,852		584,831
Republic Bancorp, Inc., Class A		3,255		128,703
Republic First Bancorp, Inc. (a)(b)		17,710		147,878
S&T Bancorp, Inc.		11,643		454,543
Sandy Spring Bancorp, Inc.		8,088		323,439
Seacoast Banking Corp. of Florida (a)		9,766		215,438
ServisFirst Bancshares, Inc.		15,622		584,888
Shore Bancshares, Inc.		4,291		65,438
Sierra Bancorp		3,656		97,213
Simmons First National Corp., Class A		9,948		618,268
South State Corp.		8,284		724,022
Southern First Bancshares, Inc. (a)		2,023		72,828
Southern National Bancorp of Virginia, Inc.		3,786		61,863
Southside Bancshares, Inc.		9,030		340,160
Southwest Bancorp, Inc.		5,990		173,710
State Bank Financial Corp.		12,017		322,777
Stock Yards Bancorp, Inc.		7,284		341,984
Stonegate Bank		3,995		166,711
Suffolk Bancorp		3,760		161,003
Summit Financial Group, Inc. (b)		2,784		76,644
Texas Capital Bancshares, Inc. (a)		17,101		1,340,718
Tompkins Financial Corp.		4,918		464,948

Common Stocks	Shares		Value
Banks: Diversified (continued)
TowneBank		18,909	$	628,724
Trico Bancshares		8,219		280,925
Tristate Capital Holdings, Inc. (a)		7,232		159,827
Triumph Bancorp, Inc. (a)		5,086		132,999
TrustCo Bank Corp. NY		30,185		264,119
Trustmark Corp.		23,433		835,386
UMB Financial Corp.		15,309		1,180,630
Umpqua Holdings Corp.		76,268		1,432,313
Union Bankshares Corp.		14,730		526,450
Union Bankshares, Inc. (b)		1,355		61,585
United Bankshares, Inc.		22,543		1,042,614
United Community Banks, Inc.		24,657		730,340
United Community Financial Corp.		15,098		134,976
Univest Corp. of Pennsylvania		9,618		297,196
Valley National Bancorp		85,581		996,163
Veritex Holdings, Inc. (a)		2,890		77,192
Washington Trust Bancorp, Inc.		5,090		285,294
WashingtonFirst Bankshares, Inc.		2,803		81,259
Webster Financial Corp.		31,159		1,691,311
WesBanco, Inc.		13,631		586,951
West BanCorp., Inc.		5,052		124,784
Westamerica BanCorp		8,358		525,969
Wintrust Financial Corp.		17,566		1,274,765
Xenith Bankshares, Inc. (a)		2,497		70,415
Yadkin Financial Corp.		16,920		579,679
				73,450,073
Banks: Savings, Thrift & Mortgage Lending — 1.9%
Astoria Financial Corp.		32,306		602,507
Banc of California, Inc.		16,897		293,163
Bank Mutual Corp.		13,836		130,750
BankFinancial Corp.		5,048		74,811
Bear State Financial, Inc.		6,083		61,742
Berkshire Hills Bancorp, Inc.		11,389		419,685
BofI Holding, Inc. (a)(b)		20,834		594,811
Brookline Bancorp, Inc.		23,609		387,188
BSB Bancorp, Inc. (a)		2,871		83,115
Clifton Bancorp, Inc.		7,376		124,802
Dime Community Bancshares, Inc.		10,415		209,342
ESSA Bancorp, Inc.		3,002		47,191
First Defiance Financial Corp.		2,917		148,009
First Financial Northwest, Inc.		2,488		49,113
Flushing Financial Corp.		9,536		280,263
Great Southern Bancorp, Inc.		3,542		193,570
Greene County Bancorp, Inc.		637		14,587
Heritage Financial Corp.		11,836		304,777
Hingham Institution for Savings		464		91,306
Home Bancorp, Inc.		1,905		73,552
HomeStreet, Inc. (a)		8,162		257,919
Investors Bancorp, Inc.		101,061		1,409,801
Kearny Financial Corp.		29,490		458,569
Ladder Capital Corp.		13,770		188,924
LegacyTexas Financial Group, Inc.		15,484		666,741
Meridian Bancorp, Inc.		17,745		335,380
MutualFirst Financial, Inc.		1,789		59,216
Northfield Bancorp, Inc.		14,413		287,828
Northwest Bancshares, Inc.		33,263		599,732
OceanFirst Financial Corp.		8,886		266,847
Ocwen Financial Corp. (a)		33,078		178,290
Oritani Financial Corp.		13,250		248,438
Provident Bancorp, Inc. (a)(b)		1,130		20,227
Provident Financial Holdings, Inc.		2,316		46,830
SI Financial Group, Inc.		3,707		57,088
Southern Missouri Bancorp, Inc.		2,000		70,760
Sterling Bancorp		43,804		1,025,014
Territorial Bancorp, Inc.		2,476		81,312
United Financial Bancorp, Inc.		17,184		312,061

See Notes to Financial Statements.

44 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Banks: Savings, Thrift & Mortgage Lending (continued)
Washington Federal, Inc.		31,041	$	1,066,258
Waterstone Financial, Inc.		8,405		154,652
Western New England Bancorp, Inc.		9,468		88,526
WSFS Financial Corp.		9,700		449,595
				12,514,292
Beverage: Brewers & Distillers — 0.1%
Boston Beer Co., Inc., Class A (a)		3,069		521,269
Craft Brew Alliance, Inc. (a)		4,113		69,510
Primo Water Corp. (a)		6,882		84,511
				675,290
Beverage: Soft Drinks — 0.1%
Coca-Cola Bottling Co. Consolidated		1,616		289,021
Farmer Bros. Co. (a)		2,654		97,402
National Beverage Corp.		4,072		207,998
				594,421
Biotechnology — 4.0%
Acceleron Pharma, Inc. (a)		9,396		239,786
Acorda Therapeutics, Inc. (a)		14,752		277,338
Aduro Biotech, Inc. (a)(b)		11,700		133,380
Advaxis, Inc. (a)(b)		11,756		84,173
Adverum Biotechnologies, Inc. (a)		8,807		25,540
Aevi Genomic Medicine, Inc. (a)		8,340		43,201
Agenus, Inc. (a)		23,899		98,464
Aimmune Therapeutics, Inc. (a)		8,626		176,402
Akebia Therapeutics, Inc. (a)		11,907		123,952
Albany Molecular Research, Inc. (a)		8,632		161,936
Alder Biopharmaceuticals, Inc. (a)		15,940		331,552
AMAG Pharmaceuticals, Inc. (a)		11,822		411,406
Amicus Therapeutics, Inc. (a)		56,414		280,378
Anavex Life Sciences Corp. (a)(b)		10,887		43,112
ANI Pharmaceuticals, Inc. (a)		2,606		157,976
Anthera Pharmaceuticals, Inc. (a)		11,872		7,706
Applied Genetic Technologies Corp. (a)		4,350		40,672
Aptevo Therapeutics, Inc. (a)		5,222		12,742
Ardelyx, Inc. (a)		10,279		145,962
Arena Pharmaceuticals, Inc. (a)		80,342		114,086
Ariad Pharmaceuticals, Inc. (a)		62,647		779,329
Array BioPharma, Inc. (a)		56,774		499,043
Asterias Biotherapeutics, Inc. (a)(b)		7,440		34,224
Atara Biotherapeutics, Inc. (a)		7,616		108,147
Athersys, Inc. (a)(b)		26,234		40,138
Audentes Therapeutics, Inc. (a)		2,160		39,463
Avexis, Inc. (a)		2,051		97,894
Axovant Sciences Ltd. (a)		8,093		100,515
Bellicum Pharmaceuticals, Inc. (a)		6,890		93,842
Bio-Path Holdings, Inc. (a)(b)		29,597		39,956
BioCryst Pharmaceuticals, Inc. (a)		24,558		155,452
BioTelemetry, Inc. (a)		8,889		198,669
Biotime, Inc. (a)(b)		23,807		85,943
Bluebird Bio, Inc. (a)		14,448		891,442
Blueprint Medicines Corp. (a)		6,546		183,615
Celldex Therapeutics, Inc. (a)		31,478		111,432
Cellular Biomedicine Group, Inc. (a)(b)		3,833		50,212
ChemoCentryx, Inc. (a)		7,164		53,014
Cidara Therapeutics, Inc. (a)(b)		3,911		40,674
Clearside Biomedical, Inc. (a)		2,671		23,879
Clovis Oncology, Inc. (a)		10,773		478,537
Codexis, Inc. (a)		10,854		49,928
Coherus Biosciences, Inc. (a)		10,078		283,696
Collegium Pharmaceutical, Inc. (a)		5,729		89,200
Curis, Inc. (a)		37,654		115,974
Cytokinetics, Inc. (a)		11,754		142,811
CytomX Therapeutics, Inc. (a)		6,827		75,029
CytRx Corp. (a)(b)		31,752		11,818

Common Stocks	Shares		Value
Biotechnology (continued)
Dermira, Inc. (a)		8,404	$	254,893
Dimension Therapeutics, Inc. (a)		4,685		20,380
Dynavax Technologies Corp. (a)(b)		13,438		53,080
Edge Therapeutics, Inc. (a)		5,635		70,437
Editas Medicine, Inc. (a)		2,356		38,238
Eiger Biopharmaceuticals, Inc. (a)		1,304		15,192
Emergent Biosolutions, Inc. (a)		11,114		364,984
Enzo Biochem, Inc. (a)		12,893		89,477
Epizyme, Inc. (a)		13,248		160,301
Exact Sciences Corp. (a)		35,811		478,435
Exelixis, Inc. (a)		79,654		1,187,641
FibroGen, Inc. (a)		17,861		382,225
Five Prime Therapeutics, Inc. (a)		9,165		459,258
Flex Pharma, Inc. (a)		3,846		20,307
Fortress Biotech, Inc. (a)(b)		13,017		35,146
Foundation Medicine, Inc. (a)		4,744		83,969
Galena Biopharma, Inc. (a)(b)		3,917		7,599
GenMark Diagnostics, Inc. (a)		14,960		183,110
Genomic Health, Inc. (a)		6,155		180,895
Geron Corp. (a)(b)		49,876		103,243
Global Blood Therapeutics, Inc. (a)		5,474		79,099
GlycoMimetics, Inc. (a)		4,006		24,437
Halozyme Therapeutics, Inc. (a)		37,147		367,012
Heron Therapeutics, Inc. (a)		10,393		136,148
Idera Pharmaceuticals, Inc. (a)(b)		30,859		46,288
Ignyta, Inc. (a)		10,274		54,452
ImmunoGen, Inc. (a)		27,176		55,439
Immunomedics, Inc. (a)(b)		33,949		124,593
INC Research Holdings, Inc., Class A (a)		14,313		752,864
Inovio Pharmaceuticals, Inc. (a)		21,806		151,334
Insmed, Inc. (a)		21,209		280,595
Insys Therapeutics, Inc. (a)(b)		7,986		73,471
Intellia Therapeutics, Inc. (a)(b)		2,361		30,953
Invitae Corp. (a)		10,077		80,011
Kadmon Holdings, Inc. (a)		3,349		17,917
Karyopharm Therapeutics, Inc. (a)		9,569		89,949
Keryx Biopharmaceuticals, Inc. (a)(b)		25,899		151,768
Lexicon Pharmaceuticals, Inc. (a)		14,524		200,867
Ligand Pharmaceuticals, Inc. (a)		6,753		686,172
Lion Biotechnologies, Inc. (a)		18,439		128,151
Loxo Oncology, Inc. (a)		4,394		141,113
MacroGenics, Inc. (a)		10,963		224,084
MannKind Corp. (a)(b)		103,344		65,799
MediciNova, Inc. (a)		10,073		60,740
Merrimack Pharmaceuticals, Inc. (a)(b)		40,047		163,392
Minerva Neurosciences, Inc. (a)		6,269		73,661
Mirati Therapeutics, Inc. (a)		3,599		17,095
Momenta Pharmaceuticals, Inc. (a)		22,277		335,269
Myovant Sciences, Ltd. (a)		3,866		48,093
Myriad Genetics, Inc. (a)		22,953		382,626
NantKwest, Inc. (a)(b)		5,219		29,853
Natera, Inc. (a)		8,631		101,069
Nektar Therapeutics (a)		48,185		591,230
Neos Therapeutics, Inc. (a)		3,801		22,236
NewLink Genetics Corp. (a)		6,978		71,734
Novan, Inc. (a)		1,741		47,042
Novavax, Inc. (a)(b)		87,507		110,259
Omeros Corp. (a)(b)		13,313		132,065
OncoMed Pharmaceuticals, Inc. (a)		6,848		52,798
Ophthotech Corp. (a)		10,032		48,454
Organovo Holdings, Inc. (a)		33,798		114,575
Osiris Therapeutics, Inc. (a)		5,696		27,967
Pacific Biosciences of California, Inc. (a)		26,307		99,967
PDL BioPharma, Inc.		55,912		118,533
Penumbra, Inc. (a)		8,617		549,765
Pfenex, Inc. (a)		6,080		55,146
PharmAthene, Inc. (a)		21,732		70,629

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 45

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Biotechnology (continued)
PRA Health Sciences, Inc. (a)		8,181	$	450,937
Progenics Pharmaceuticals, Inc. (a)		27,764		239,881
Protagonist Therapeutics, Inc. (a)(b)		2,522		55,459
Proteostasis Therapeutics, Inc. (a)		2,810		34,451
Prothena Corp. PLC (a)		11,771		579,015
PTC Therapeutics, Inc. (a)		10,931		119,257
Puma Biotechnology, Inc. (a)		9,481		291,067
Ra Pharmaceuticals, Inc. (a)		3,195		48,532
RadNet, Inc. (a)		11,753		75,807
REGENXBIO, Inc. (a)		6,649		123,339
Regulus Therapeutics, Inc. (a)		12,087		27,196
Repligen Corp. (a)		11,499		354,399
Retrophin, Inc. (a)		12,443		235,546
Rigel Pharmaceuticals, Inc. (a)		35,625		84,787
Rockwell Medical, Inc. (a)(b)		15,863		103,903
RTI Surgical, Inc. (a)		18,144		58,968
Sage Therapeutics, Inc. (a)		10,227		522,191
Sangamo Biosciences, Inc. (a)		22,835		69,647
Sarepta Therapeutics, Inc. (a)		16,948		464,884
Selecta Biosciences, Inc. (a)		1,874		32,139
Seres Therapeutics, Inc. (a)		5,962		59,024
Sorrento Therapeutics, Inc. (a)		8,559		41,939
Spark Therapeutics, Inc. (a)		6,534		326,047
Stemline Therapeutics, Inc. (a)		5,745		61,471
Sucampo Pharmaceuticals, Inc., Class A (a)		7,792		105,582
Synergy Pharmaceuticals, Inc. (a)		62,066		377,982
Synthetic Biologics, Inc. (a)(b)		27,513		20,981
Syros Pharmaceuticals, Inc. (a)		1,755		21,341
TESARO, Inc. (a)		10,020		1,347,490
Tokai Pharmaceuticals, Inc. (a)(b)		2,533		2,477
Trevena, Inc. (a)		14,533		85,454
Trovagene, Inc. (a)(b)		8,835		18,553
Vanda Pharmaceuticals, Inc. (a)		12,020		191,719
Veracyte, Inc. (a)		4,544		35,171
Versartis, Inc. (a)		10,917		162,663
Vital Therapies, Inc. (a)(b)		7,428		32,312
vTv Therapeutics, Inc., Class A (a)		1,667		8,052
XBiotech, Inc. (a)(b)		6,242		63,169
Xencor, Inc. (a)		12,327		324,447
ZIOPHARM Oncology, Inc. (a)(b)		41,825		223,764
				26,740,207
Building Materials — 1.0%
Armstrong Flooring, Inc. (a)		7,643		152,172
Builders FirstSource, Inc. (a)		28,588		313,610
Caesarstone Sdot-Yam Ltd. (a)		8,174		234,185
Continental Building Products, Inc. (a)		12,058		278,540
Gibraltar Industries, Inc. (a)		10,723		446,613
Griffon Corp.		10,383		272,035
Headwaters, Inc. (a)		25,442		598,396
Louisiana-Pacific Corp. (a)		49,963		945,800
LSI Industries, Inc.		7,679		74,793
Masonite International Corp. (a)		10,682		702,876
NCI Building Systems, Inc. (a)		8,894		139,191
Patrick Industries, Inc. (a)		4,912		374,786
PGT Innovations, Inc. (a)		15,664		179,353
Quanex Building Products Corp.		13,221		268,386
Simpson Manufacturing Co., Inc.		14,347		627,681
Summit Materials, Inc., Class A (a)		26,909		640,165
Trex Co., Inc. (a)		10,218		658,039
				6,906,621
Building: Climate Control — 0.1%
AAON, Inc.		13,666		451,662
Comfort Systems USA, Inc.		12,574		418,714
				870,376

Common Stocks	Shares		Value
Building: Roofing, Wallboard & Plumbing — 0.2%
Beacon Roofing Supply, Inc. (a)		20,641	$	950,931
Forterra, Inc. (a)		6,421		139,079
				1,090,010
Casinos & Gambling — 0.3%
Boyd Gaming Corp. (a)		27,929		563,328
Caesars Acquisition Co., Class A (a)		16,493		222,655
Caesars Entertainment Corp. (a)(b)		18,387		156,290
Century Casinos, Inc. (a)		7,490		61,643
Eldorado Resorts, Inc. (a)		9,395		159,245
Isle of Capri Casinos, Inc. (a)		8,701		214,828
Monarch Casino & Resort, Inc. (a)		3,496		90,127
Penn National Gaming, Inc. (a)		25,479		351,355
Scientific Games Corp., Class A (a)		18,782		262,948
				2,082,419
Cement — 0.1%
US Concrete, Inc. (a)		4,915		321,933
Chemicals: Diversified — 1.5%
Aceto Corp.		11,474		252,084
AgroFresh Solutions, Inc. (a)		8,262		21,894
American Vanguard Corp.		9,257		177,272
Chemours Co.		62,795		1,387,141
Chemtura Corp. (a)		22,013		730,832
CSW Industrials, Inc. (a)		4,753		175,148
GCP Applied Technologies, Inc. (a)		24,959		667,653
Hawkins, Inc.		3,159		170,428
Ingevity Corp. (a)		14,866		815,549
Innophos Holdings, Inc.		6,570		343,348
KMG Chemicals, Inc.		2,977		115,775
Landec Corp. (a)		8,836		121,937
LSB Industries, Inc. (a)		6,859		57,753
Olin Corp.		56,749		1,453,342
OMNOVA Solutions, Inc. (a)		14,022		140,220
PolyOne Corp.		29,095		932,204
Rayonier Advanced Materials, Inc.		14,959		231,266
Sensient Technologies Corp.		15,192		1,193,787
TerraVia Holdings, Inc. (a)(b)		27,252		31,340
Tronox Ltd., Class A		22,200		228,882
Univar, Inc. (a)		14,590		413,918
				9,661,773
Chemicals: Specialty — 0.5%
Balchem Corp.		11,123		933,442
Calgon Carbon Corp.		17,231		292,927
FutureFuel Corp.		8,238		114,508
Innospec, Inc.		8,015		549,028
Kraton Corp. (a)		10,085		287,221
Quaker Chemical Corp.		4,375		559,737
Stepan Co.		6,654		542,168
Valhi, Inc.		9,498		32,863
				3,311,894
Coal — 0.0%
Westmoreland Coal Co. (a)		5,945		105,048
Commercial Banks — 0.1%
Blue Hills Bancorp, Inc.		8,153		152,869
Green Bancorp, Inc. (a)		6,862		104,302
HomeTrust Bancshares, Inc. (a)		5,451		141,181
Sun Bancorp, Inc.		3,582		93,132
				491,484
Commercial Finance & Mortgage Companies — 0.3%
Capital Bank Financial Corp., Class A		8,438		331,192
Federal Agricultural Mortgage Corp., Class C		2,867		164,193
Impac Mortgage Holdings, Inc. (a)(b)		3,524		49,407
Meta Financial Group, Inc.		2,830		291,207

See Notes to Financial Statements.

46 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Commercial Finance & Mortgage Companies (continued)
Nationstar Mortgage Holdings, Inc. (a)		11,273	$	203,590
NewStar Financial, Inc. (a)		8,053		74,490
On Deck Capital, Inc. (a)		16,046		74,293
PennyMac Financial Services, Inc. (a)(c)		3,162		52,647
RE/MAX Holdings, Inc., Class A		6,066		339,696
Walker & Dunlop, Inc. (a)		9,438		294,466
				1,875,181
Commercial Services & Supplies — 0.2%
Aqua Metals, Inc. (a)(b)		4,390		57,553
ARC Document Solutions, Inc. (a)		14,227		72,273
Collectors Universe, Inc.		2,595		55,092
Hill International, Inc. (a)		11,007		47,880
Information Services Group, Inc. (a)		11,737		42,723
LifeLock, Inc. (a)		29,467		704,851
National Research Corp., Class A		2,738		52,022
National Research Corp., Class B		262		10,917
Weight Watchers International, Inc. (a)(b)		9,218		105,546
				1,148,857
Commercial Services: Rental & Leasing — 0.6%
Aircastle Ltd.		16,239		338,583
CAI International, Inc. (a)		5,470		47,425
GATX Corp.		14,009		862,674
GMS, Inc. (a)		2,255		66,026
H&E Equipment Services, Inc.		10,923		253,960
Marlin Business Services Corp.		2,944		61,530
McGrath RentCorp		8,041		315,127
Mobile Mini, Inc.		15,052		455,323
Neff Corp., Class A (a)		3,212		45,289
NOW, Inc. (a)		37,524		768,116
PHH Corp. (a)		18,115		274,624
Rush Enterprises, Inc., Class B (a)		2,370		73,162
SiteOne Landscape Supply, Inc. (a)		3,816		132,530
Triton International, Ltd.		13,825		218,435
Willis Lease Finance Corp. (a)		1,223		31,284
				3,944,088
Commercial Vehicles & Parts — 0.4%
Blue Bird Corp. (a)(b)		1,689		26,095
Cooper-Standard Holding, Inc. (a)		5,157		533,131
Miller Industries, Inc.		3,561		94,188
Modine Manufacturing Co. (a)		16,232		241,857
Motorcar Parts of America, Inc. (a)		5,985		161,116
Navistar International Corp. (a)		16,705		524,036
Rush Enterprises, Inc., Class A (a)		9,884		315,299
Spartan Motors, Inc.		10,847		100,335
Strattec Security Corp.		1,119		45,096
Wabash National Corp. (a)		22,143		350,302
				2,391,455
Communications Equipment — 0.0%
Aerohive Networks, Inc. (a)		8,081		46,062
Communications Technology — 1.7%
ADTRAN, Inc.		16,781		375,055
Anixter International, Inc. (a)		10,160		823,468
Bel Fuse, Inc., Class B		2,994		92,515
Black Box Corp.		4,851		73,978
Calix, Inc. (a)		13,629		104,943
Ciena Corp. (a)		47,711		1,164,626
Comtech Telecommunications Corp.		7,307		86,588
Datalink Corp. (a)		6,624		74,586
Digi International, Inc. (a)		8,512		117,040
DigitalGlobe, Inc. (a)		21,920		628,008
Extreme Networks, Inc. (a)		35,776		179,953
Finisar Corp. (a)		36,848		1,115,389
General Cable Corp.		16,545		315,182

Common Stocks	Shares		Value
Communications Technology (continued)
Harmonic, Inc. (a)		25,096	$	125,480
Infinera Corp. (a)		47,779		405,644
Intelsat SA (a)		9,061		24,193
InterDigital, Inc.		11,947		1,091,358
Ixia (a)		21,877		352,220
KVH Industries, Inc. (a)		4,697		55,425
Loral Space & Communications, Inc. (a)		4,215		173,026
Lumentum Holdings, Inc. (a)		17,481		675,641
NeoPhotonics Corp. (a)		10,098		109,159
NETGEAR, Inc. (a)		11,409		620,079
Numerex Corp., Class A (a)		4,427		32,760
Plantronics, Inc.		11,252		616,160
Quantenna Communications, Inc. (a)		2,498		45,289
Rightside Group Ltd. (a)		3,730		30,847
RingCentral, Inc., Class A (a)		19,892		409,775
ShoreTel, Inc. (a)		22,102		158,029
Sonus Networks, Inc. (a)		15,610		98,343
TeleNav, Inc. (a)		10,859		76,556
ViaSat, Inc. (a)		17,943		1,188,185
				11,439,500
Computer Services Software & Systems — 4.9%
A10 Networks, Inc. (a)		14,438		119,980
ACI Worldwide, Inc. (a)		40,752		739,649
Acxiom Corp. (a)		27,394		734,159
Alarm.com Holdings, Inc. (a)		3,371		93,815
ALJ Regional Holdings, Inc. (a)		6,657		29,224
American Software, Inc., Class A		8,532		88,136
Appfolio, Inc., Class A (a)(b)		2,431		57,979
Aspen Technology, Inc. (a)		26,973		1,474,884
Autobytel, Inc. (a)		2,405		32,347
Avid Technology, Inc. (a)		10,710		47,124
Bankrate, Inc. (a)		15,553		171,861
Barracuda Networks, Inc. (a)		7,183		153,932
Bazaarvoice, Inc. (a)		26,889		130,412
Benefitfocus, Inc. (a)		4,216		125,215
Blackbaud, Inc.		16,341		1,045,824
Blackline, Inc. (a)		3,469		95,848
Blucora, Inc. (a)		14,836		218,831
Bottomline Technologies, Inc. (a)		13,780		344,776
Box, Inc., Class A (a)		16,870		233,818
Brightcove, Inc. (a)		10,007		80,556
BroadSoft, Inc. (a)		9,995		412,294
CACI International, Inc., Class A (a)		8,403		1,044,493
Callidus Software, Inc. (a)		20,778		349,070
CommVault Systems, Inc. (a)		13,615		699,811
ComScore, Inc. (a)		16,271		513,838
Cornerstone OnDemand, Inc. (a)		17,796		752,949
Coupa Software, Inc. (a)		3,005		75,155
CSG Systems International, Inc.		10,954		530,174
Digimarc Corp. (a)		3,165		94,950
EarthLink Holdings Corp.		43,519		245,447
Ebix, Inc.		8,537		487,036
Endurance International Group Holdings, Inc. (a)		23,842		221,731
Envestnet, Inc. (a)		14,096		496,884
EPAM Systems, Inc. (a)		16,772		1,078,607
ePlus, Inc. (a)		2,172		250,214
Everbridge, Inc. (a)		3,198		59,003
Evolent Health, Inc., Class A (a)		5,187		76,768
Exa Corp. (a)		4,666		71,670
Guidance Software, Inc. (a)		7,561		53,532
Hortonworks, Inc. (a)		14,725		122,365
HubSpot, Inc. (a)		9,808		460,976
Imperva, Inc. (a)		9,733		373,747
IntraLinks Holdings, Inc. (a)		13,532		182,953
Jive Software, Inc. (a)		19,275		83,846
KEYW Holding Corp. (a)		12,416		146,385

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 47

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Computer Services Software & Systems (continued)
LendingClub Corp. (a)		111,499	$	585,370
Limelight Networks, Inc. (a)		21,125		53,235
Lionbridge Technologies, Inc. (a)		19,268		111,754
LivePerson, Inc. (a)		17,440		131,672
LogMeIn, Inc.		8,720		841,916
Majesco (a)(b)		1,856		11,284
Mantech International Corp., Class A		8,457		357,308
Mentor Graphics Corp.		36,738		1,355,265
Mercury Systems, Inc. (a)		13,190		398,602
MicroStrategy, Inc., Class A (a)		3,338		658,921
MINDBODY, Inc., Class A (a)		4,771		101,622
Mitek Systems, Inc. (a)		9,921		61,014
Monotype Imaging Holdings, Inc.		13,883		275,578
NCI, Inc.		1,697		23,673
Netscout Systems, Inc. (a)		31,478		991,557
New Relic, Inc. (a)		7,511		212,186
NIC, Inc.		21,604		516,336
Nimble Storage, Inc. (a)		20,659		163,619
PDF Solutions, Inc. (a)		9,372		211,339
Pegasystems, Inc.		12,208		439,488
Perficient, Inc. (a)		12,292		214,987
Progress Software Corp.		16,988		542,427
Proofpoint, Inc. (a)		14,243		1,006,268
PROS Holdings, Inc. (a)		8,244		177,411
Q2 Holdings, Inc. (a)		8,793		253,678
QAD, Inc., Class A		3,088		93,875
Rapid7, Inc. (a)		6,552		79,738
RealNetworks, Inc. (a)		7,404		35,983
RealPage, Inc. (a)		18,298		548,940
Reis, Inc.		2,951		65,660
Sapiens International Corp. NV		7,965		114,218
Science Applications International Corp.		14,541		1,233,077
SecureWorks Corp. (a)		1,643		17,399
Shutterstock, Inc. (a)		6,458		306,884
SPS Commerce, Inc. (a)		5,651		394,948
Synchronoss Technologies, Inc. (a)		13,975		535,242
SYNNEX Corp.		10,023		1,212,983
Syntel, Inc.		11,343		224,478
Tangoe, Inc. (a)(b)		9,552		75,270
TechTarget, Inc. (a)		5,621		47,947
TiVo Corp. (a)		40,829		853,326
Unisys Corp. (a)		17,286		258,426
Varonis Systems, Inc. (a)		3,521		94,363
VASCO Data Security International, Inc. (a)		9,883		134,903
Verint Systems, Inc. (a)		22,017		776,099
VirnetX Holding Corp. (a)(b)		16,588		36,494
Virtusa Corp. (a)		9,667		242,835
Web.com Group, Inc. (a)		14,680		310,482
Workiva, Inc. (a)		7,219		98,539
Xactly Corp. (a)		7,584		83,424
Zix Corp. (a)		17,716		87,517
				32,561,828
Computer Technology — 0.6%
3D Systems Corp. (a)		36,155		480,500
Cray, Inc. (a)		13,787		285,391
Diebold Nixdorf, Inc.		24,418		614,113
Immersion Corp. (a)		9,671		102,803
Impinj, Inc. (a)		2,241		79,197
Insight Enterprises, Inc. (a)		12,456		503,720
PC Connection, Inc.		3,686		103,540
Pure Storage, Inc., Class A (a)		25,396		287,229
Radisys Corp. (a)		12,325		54,600
Safeguard Scientifics, Inc. (a)		6,807		91,554
Silicom Ltd.		1,892		77,742
Stratasys Ltd. (a)		16,695		276,135
Super Micro Computer, Inc. (a)		13,093		367,258

Common Stocks	Shares		Value
Computer Technology (continued)
Synaptics, Inc. (a)		12,371	$	662,838
USA Technologies, Inc. (a)		12,406		53,346
				4,039,966
Construction — 0.5%
Aegion Corp. (a)		11,944		283,073
EMCOR Group, Inc.		20,593		1,457,161
Granite Construction, Inc.		13,620		749,100
Great Lakes Dredge & Dock Corp. (a)		19,186		80,581
Orion Group Holdings, Inc. (a)		8,755		87,112
Primoris Services Corp.		13,717		312,473
Tutor Perini Corp. (a)		12,857		359,996
				3,329,496
Consumer Electronics — 0.1%
Universal Electronics, Inc. (a)		4,812		310,614
XO Group, Inc. (a)		8,293		161,299
ZAGG, Inc. (a)		9,149		64,958
				536,871
Consumer Lending — 0.6%
Encore Capital Group, Inc. (a)		7,852		224,960
Enova International, Inc. (a)		9,183		115,247
Ezcorp, Inc., Class A (a)		16,576		176,534
FirstCash, Inc.		16,529		776,863
LendingTree, Inc. (a)(b)		2,206		223,578
Marcus & Millichap, Inc. (a)		4,860		129,859
MGIC Investment Corp. (a)		117,872		1,201,116
MoneyGram International, Inc. (a)		9,886		116,754
Nelnet, Inc., Class A		6,890		349,667
PRA Group, Inc. (a)		16,405		641,435
Regional Management Corp. (a)		3,527		92,690
World Acceptance Corp. (a)		2,127		136,724
				4,185,427
Consumer Services: Miscellaneous — 0.3%
Chuy’s Holdings, Inc. (a)		5,357		173,835
Core-Mark Holding Co., Inc.		15,533		669,006
CPI Card Group, Inc. (b)		6,933		28,772
Del Frisco’s Restaurant Group, Inc. (a)		7,790		132,430
Nutrisystem, Inc.		9,892		342,758
Sotheby’s		17,119		682,363
				2,029,164
Containers & Packaging — 0.2%
AEP Industries, Inc.		1,321		153,368
Greif, Inc., Class A		8,693		446,038
Greif, Inc., Class B		1,881		127,062
Multi Packaging Solutions International Ltd. (a)		7,082		100,989
Myers Industries, Inc.		7,171		102,545
UFP Technologies, Inc. (a)		2,228		56,703
Veritiv Corp. (a)		2,731		146,791
				1,133,496
Cosmetics — 0.2%
Avon Products, Inc. (a)		152,184		767,007
elf Beauty, Inc. (a)		3,310		95,792
Inter Parfums, Inc.		6,411		209,960
Revlon, Inc., Class A (a)		3,902		113,743
				1,186,502
Diversified Financial Services — 1.0%
Altisource Portfolio Solutions SA (a)		4,056		107,849
Associated Capital Group, Inc., Class A		1,596		52,429
Blackhawk Network Holdings, Inc. (a)		19,418		731,573
California First National Bancorp		691		10,814
Evercore Partners, Inc., Class A		13,412		921,404
FBR & Co.		2,203		28,639

See Notes to Financial Statements.

48 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Diversified Financial Services (continued)
FCB Financial Holdings, Inc., Class A (a)		10,186	$	485,872
FNFV Group (a)		22,873		313,360
Greenhill & Co., Inc.		9,654		267,416
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		15,412		292,674
Hennessy Advisors, Inc.		1,136		36,068
Houlihan Lokey, Inc.		4,265		132,727
HRG Group, Inc. (a)		41,042		638,614
Liberty Tax, Inc.		2,255		30,217
MBIA, Inc. (a)		44,914		480,580
MidWestOne Financial Group, Inc.		2,807		105,543
Moelis & Co., Class A		6,181		209,536
Piper Jaffray Cos. (a)		4,932		357,570
Planet Payment, Inc. (a)		14,493		59,131
Real Industry, Inc. (a)		8,745		53,345
Stifel Financial Corp. (a)		22,077		1,102,746
Tiptree Financial, Inc., Class A		7,855		48,308
				6,466,415
Diversified Manufacturing Operations — 0.5%
Barnes Group, Inc.		17,275		819,180
Federal Signal Corp.		20,454		319,287
Harsco Corp.		27,415		372,844
Lydall, Inc. (a)		5,630		348,216
OSI Systems, Inc. (a)		5,940		452,153
Raven Industries, Inc.		12,370		311,724
Standex International Corp.		4,311		378,721
TriMas Corp. (a)		15,360		360,960
				3,363,085
Diversified Materials & Processing — 0.6%
Belden, Inc.		14,478		1,082,520
Cabot Microelectronics Corp.		7,968		503,339
CLARCOR, Inc.		16,203		1,336,261
Encore Wire Corp.		6,924		300,155
Energous Corp. (a)(b)		4,685		78,942
Insteel Industries, Inc.		6,065		216,157
Koppers Holdings, Inc. (a)		6,980		281,294
NL Industries, Inc. (a)		1,868		15,224
Tredegar Corp.		8,316		199,584
				4,013,476
Diversified Media — 0.1%
EW Scripps Co., Class A (a)		20,387		394,081
Hemisphere Media Group, Inc. (a)		2,092		23,430
				417,511
Diversified Retail — 0.4%
Big Lots, Inc.		15,342		770,322
Duluth Holdings, Inc., Class B (a)(b)		3,182		80,823
Etsy, Inc. (a)		35,668		420,169
Fred’s, Inc., Class A (b)		11,597		215,240
Gaia, Inc. (a)		2,142		18,528
HSN, Inc.		10,660		365,638
Ollie’s Bargain Outlet Holdings, Inc. (a)		7,196		204,726
Overstock.com, Inc. (a)		4,348		76,090
PriceSmart, Inc.		6,954		580,659
Sears Holdings Corp. (a)(b)		3,869		35,943
Tuesday Morning Corp. (a)		16,090		86,886
Winmark Corp.		798		100,668
				2,955,692
Drug & Grocery Store Chains — 0.2%
Diplomat Pharmacy, Inc. (a)		15,925		200,655
Ingles Markets, Inc., Class A		4,858		233,670
PetMed Express, Inc.		6,468		149,217
Smart & Final Stores, Inc. (a)		7,682		108,316
Supervalu, Inc. (a)		90,475		422,518

Common Stocks	Shares		Value
Drug & Grocery Store Chains (continued)
Village Super Market, Inc., Class A		2,267	$	70,050
Weis Markets, Inc.		3,308		221,107
				1,405,533
Education Services — 0.8%
2U, Inc. (a)		12,448		375,307
American Public Education, Inc. (a)		5,118		125,647
Apollo Education Group, Inc. (a)		29,244		289,516
Bridgepoint Education, Inc. (a)		5,948		60,253
Bright Horizons Family Solutions, Inc. (a)		15,025		1,052,051
Cambium Learning Group, Inc. (a)		3,388		16,906
Capella Education Co.		3,853		338,293
Career Education Corp. (a)		23,063		232,706
Chegg, Inc. (a)		31,420		231,880
DeVry Education Group, Inc.		21,820		680,784
Franklin Covey Co. (a)		3,421		68,933
Grand Canyon Education, Inc. (a)		15,463		903,812
HealthStream, Inc. (a)		8,898		222,895
Houghton Mifflin Harcourt Co. (a)		42,209		457,968
K12, Inc. (a)		12,759		218,944
Rosetta Stone, Inc. (a)		6,701		59,706
Strayer Education, Inc. (a)		3,607		290,832
				5,626,433
Electronic Components — 0.9%
Acacia Research Corp.		15,133		98,364
American Superconductor Corp. (a)		3,180		23,437
AVX Corp.		15,963		249,502
Babcock & Wilcox Enterprises, Inc. (a)		15,669		259,949
InvenSense, Inc. (a)		28,018		358,350
Methode Electronics, Inc.		12,364		511,251
Novanta, Inc. (a)		12,440		261,240
NVE Corp.		1,558		111,288
Park Electrochemical Corp.		6,344		118,316
Rogers Corp. (a)		6,106		469,002
Sanmina Corp. (a)		25,550		936,407
ScanSource, Inc. (a)		8,605		347,212
Sparton Corp. (a)		3,108		74,126
Tech Data Corp. (a)		12,183		1,031,656
TTM Technologies, Inc. (a)		24,796		337,969
Universal Display Corp. (a)		14,466		814,436
				6,002,505
Electronic Entertainment — 0.2%
Glu Mobile, Inc. (a)		34,679		67,277
Take-Two Interactive Software, Inc. (a)		28,661		1,412,701
				1,479,978
Electronics — 0.4%
Agilysys, Inc. (a)		5,140		53,250
Coherent, Inc. (a)		8,300		1,140,296
Control4 Corp. (a)		6,462		65,912
Daktronics, Inc.		12,000		128,400
II-VI, Inc. (a)		20,816		617,194
Integer Holdings Corp. (a)		10,464		308,165
iRobot Corp. (a)		9,062		529,674
				2,842,891
Energy Equipment — 0.2%
Dynegy, Inc. (a)		39,907		337,613
FuelCell Energy, Inc. (a)(b)		9,276		16,233
Matador Resources Co. (a)		29,168		751,368
Silver Spring Networks, Inc. (a)		12,425		165,377
Sunrun, Inc. (a)(b)		20,959		111,292
TPI Composites, Inc. (a)		2,220		35,609
				1,417,492

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 49

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Energy Equipment & Services — 0.0%
Geospace Technologies Corp. (a)		4,208	$	85,675
Pioneer Energy Services Corp. (a)		25,600		175,360
				261,035
Engineering & Contracting Services — 0.7%
Argan, Inc.		4,530		319,591
Dycom Industries, Inc. (a)		10,507		843,607
Engility Holdings, Inc. (a)		6,903		232,631
Exponent, Inc.		8,729		526,359
HC2 Holdings, Inc. (a)		10,928		64,803
IES Holdings, Inc. (a)		2,553		48,890
Layne Christensen Co. (a)		6,239		67,818
MasTec, Inc. (a)		22,730		869,422
Mistras Group, Inc. (a)		5,928		152,231
MYR Group, Inc. (a)		5,689		214,362
Power Solutions International, Inc. (a)(b)		1,853		13,898
Tetra Tech, Inc.		19,801		854,413
VSE Corp.		2,915		113,219
				4,321,244
Entertainment — 0.3%
AMC Entertainment Holdings, Inc., Class A		10,315		347,100
Ascent Capital Group, Inc., Class A (a)		3,253		52,894
Empire Resorts, Inc. (a)(b)		1,122		25,525
Golden Entertainment, Inc.		3,405		41,235
IMAX Corp. (a)		20,549		645,239
Pinnacle Entertainment, Inc. (a)		21,137		306,486
Reading International, Inc., Class A (a)		5,585		92,711
World Wrestling Entertainment, Inc., Class A (b)		12,346		227,166
				1,738,356
Environmental, Maintenance, & Security Service — 0.7%
ABM Industries, Inc.		19,224		785,108
Brink’s Co.		15,634		644,903
G&K Services, Inc., Class A		6,780		653,931
Healthcare Services Group, Inc.		24,194		947,679
MSA Safety, Inc.		10,968		760,411
SP Plus Corp. (a)		5,701		160,483
UniFirst Corp.		5,212		748,704
				4,701,219
Financial Data & Systems — 0.5%
Cardtronics PLC, Class A (a)		15,661		854,621
Cass Information Systems, Inc.		3,794		279,125
EVERTEC, Inc.		21,719		385,512
Fair Isaac Corp.		10,656		1,270,408
Green Dot Corp., Class A (a)		14,491		341,263
				3,130,929
Food & Staples Retailing — 0.0%
Natural Grocers by Vitamin Cottage, Inc. (a)		3,384		40,236
Foods — 1.2%
AdvancePierre Foods Holdings, Inc.		8,022		238,895
Amplify Snack Brands, Inc. (a)(b)		9,566		84,276
B&G Foods, Inc.		22,499		985,456
Chefs’ Warehouse, Inc. (a)		6,435		101,673
Dean Foods Co.		32,207		701,468
Freshpet, Inc. (a)		7,642		77,566
Inventure Foods, Inc. (a)		6,609		65,099
J&J Snack Foods Corp.		5,208		694,903
John B Sanfilippo & Son, Inc.		3,199		225,178
Lancaster Colony Corp.		6,430		909,138
Lifeway Foods, Inc. (a)		1,252		14,411
Medifast, Inc.		3,633		151,242
Natural Health Trends Corp. (b)		2,480		61,628
Nature’s Sunshine Products, Inc.		2,785		41,775
Nutraceutical International Corp.		2,719		95,029
Omega Protein Corp. (a)		7,195		180,235

Common Stocks	Shares		Value
Foods (continued)
Performance Food Group Co. (a)		12,839	$	308,136
Seneca Foods Corp., Class A (a)		2,227		89,191
Snyders-Lance, Inc.		27,643		1,059,833
SpartanNash Co.		12,584		497,571
Synutra International, Inc. (a)		7,297		39,039
Tootsie Roll Industries, Inc.		5,925		235,519
United Natural Foods, Inc. (a)		17,417		831,139
				7,688,400
Forest Products — 0.2%
Boise Cascade Co. (a)		13,344		300,240
Deltic Timber Corp.		3,642		280,689
Universal Forest Products, Inc.		6,902		705,246
				1,286,175
Forms & Bulk Printing Services — 0.3%
Deluxe Corp.		16,710		1,196,603
Ennis, Inc.		8,419		146,070
InnerWorkings, Inc. (a)		12,750		125,587
Multi-Color Corp.		4,667		362,159
Quad/Graphics, Inc.		9,943		267,268
				2,097,687
Fruit & Grain Processing — 0.0%
MGP Ingredients, Inc.		4,444		222,111
Funeral Parlors & Cemeteries — 0.3%
Carriage Services, Inc.		5,029		144,031
Hillenbrand, Inc.		20,365		780,998
Matthews International Corp., Class A		11,031		847,732
				1,772,761
Gas Pipeline — 0.1%
SemGroup Corp., Class A		23,302		972,859
Glass — 0.1%
Apogee Enterprises, Inc.		9,647		516,693
Gold — 0.1%
Coeur Mining, Inc. (a)		60,699		551,754
Gold Resource Corp.		16,332		71,044
				622,798
Health Care Equipment & Supplies — 0.1%
Inogen, Inc. (a)		5,558		373,331
Health Care Facilities — 0.6%
AAC Holdings, Inc. (a)(b)		3,366		24,370
Adeptus Health, Inc., Class A (a)		4,832		36,916
Capital Senior Living Corp. (a)		9,503		152,523
Ensign Group, Inc.		17,458		387,742
Genesis Healthcare, Inc. (a)		12,972		55,131
HealthSouth Corp.		31,278		1,289,905
Kindred Healthcare, Inc.		28,961		227,344
National Healthcare Corp.		3,755		284,591
Select Medical Holdings Corp. (a)		36,188		479,491
Surgical Care Affiliates, Inc. (a)		9,125		422,214
U.S. Physical Therapy, Inc.		4,374		307,055
				3,667,282
Health Care Management Services — 0.3%
BioScrip, Inc. (a)		35,967		37,406
Computer Programs & Systems, Inc. (b)		3,679		86,824
Magellan Health, Inc. (a)		7,919		595,905
Molina Healthcare, Inc. (a)		14,980		812,815
Triple-S Management Corp., Class B (a)		7,810		161,667
Universal American Corp. (a)		14,177		141,061
				1,835,678
Health Care Services — 1.8%
Accelerate Diagnostics, Inc. (a)		7,529		156,227

See Notes to Financial Statements.

50 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Health Care Services (continued)
Addus HomeCare Corp. (a)		2,497	$	87,520
Air Methods Corp. (a)		12,104		385,513
Almost Family, Inc. (a)		2,756		121,540
Amedisys, Inc. (a)		9,508		405,326
AMN Healthcare Services, Inc. (a)		16,409		630,926
Argos Therapeutics, Inc. (a)(b)		5,592		27,401
Cara Therapeutics, Inc. (a)		6,891		64,017
Care.com, Inc. (a)		4,960		42,507
Catalent, Inc. (a)		35,549		958,401
Chemed Corp.		5,537		888,190
Civitas Solutions, Inc. (a)		5,217		103,818
Corvel Corp. (a)		3,257		119,206
Cross Country Healthcare, Inc. (a)		10,530		164,373
Flexion Therapeutics, Inc. (a)		9,230		175,555
Globus Medical, Inc., Class A (a)		23,743		589,064
HealthEquity, Inc. (a)		14,618		592,321
Healthways, Inc. (a)		11,421		259,828
HMS Holdings Corp. (a)		28,524		517,996
LHC Group, Inc. (a)		4,996		228,317
Medidata Solutions, Inc. (a)		19,136		950,485
MiMedx Group, Inc. (a)		34,897		309,188
NantHealth, Inc. (a)(b)		2,407		23,926
NeoGenomics, Inc. (a)		17,679		151,509
Nobilis Health Corp. (a)(b)		18,014		37,829
Omnicell, Inc. (a)		12,080		409,512
OvaScience, Inc. (a)		10,956		16,763
PharMerica Corp. (a)		11,135		280,045
Phibro Animal Health Corp., Class A		6,177		180,986
Quality Systems, Inc.		17,647		232,058
Ryman Hospitality Properties, Inc.		14,915		939,794
Surgery Partners, Inc. (a)		6,178		97,921
T2 Biosystems, Inc. (a)(b)		4,473		23,528
Tabula Rasa HealthCare, Inc. (a)		2,132		31,937
Team Health Holdings, Inc. (a)		23,291		1,011,994
Teladoc, Inc. (a)(b)		6,935		114,428
Tetraphase Pharmaceuticals, Inc. (a)		11,468		46,216
WebMD Health Corp. (a)		12,939		641,386
				12,017,551
Health Care: Miscellaneous — 0.0%
Medpace Holdings, Inc. (a)		2,707		97,641
Providence Service Corp. (a)		4,320		164,376
				262,017
Home Building — 0.6%
Beazer Homes USA, Inc. (a)		10,407		138,413
Century Communities, Inc. (a)		5,044		105,924
Hovnanian Enterprises, Inc., Class A (a)		41,597		113,560
Installed Building Products, Inc. (a)		6,895		284,763
KB Home		29,391		464,672
LGI Homes, Inc. (a)		5,064		145,489
M/I Homes, Inc. (a)		8,267		208,163
MDC Holdings, Inc.		14,095		361,678
Meritage Homes Corp. (a)		12,959		450,973
New Home Co., Inc. (a)		4,484		52,508
Taylor Morrison Home Corp., Class A (a)		12,567		242,040
Tile Shop Holdings, Inc. (a)		12,081		236,184
TopBuild Corp. (a)		13,059		464,900
TRI Pointe Group, Inc. (a)		53,175		610,449
UCP, Inc., Class A (a)		2,828		34,077
WCI Communities, Inc. (a)		8,500		199,325
William Lyon Homes, Class A (a)		7,884		150,033
				4,263,151
Hotel/Motel — 0.2%
Belmond Ltd., Class A (a)		28,406		379,220
Intrawest Resorts Holdings, Inc. (a)		5,210		92,998

Common Stocks	Shares		Value
Hotel/Motel (continued)
La Quinta Holdings, Inc. (a)		28,919	$	410,939
Marcus Corp.		7,241		228,091
Red Lion Hotels Corp. (a)		4,916		41,049
Red Rock Resorts, Inc., Class A		10,383		240,782
				1,393,079
Household Appliances — 0.0%
National Presto Industries, Inc.		1,606		170,878
Household Equipment & Products — 0.2%
Central Garden & Pet Co. (a)		3,329		110,157
Central Garden and Pet Co., Class A (a)		11,418		352,816
CSS Industries, Inc.		2,793		75,606
Helen of Troy Ltd. (a)		9,820		829,299
Libbey, Inc.		7,276		141,591
Novocure Ltd. (a)(b)		16,642		130,640
Sears Hometown and Outlet Stores, Inc. (a)		2,721		12,789
				1,652,898
Household Furnishings — 0.4%
American Woodmark Corp. (a)		4,683		352,396
Bassett Furniture Industries, Inc.		3,404		103,481
Ethan Allen Interiors, Inc.		8,915		328,518
Flexsteel Industries, Inc.		2,150		132,590
Hooker Furniture Corp.		3,666		139,125
Kirkland’s, Inc. (a)		4,826		74,851
La-Z-Boy, Inc.		16,623		516,144
Lifetime Brands, Inc.		3,753		66,616
RH (a)		13,129		403,060
Select Comfort Corp. (a)		15,743		356,107
				2,472,888
Insurance: Life — 0.6%
American Equity Investment Life Holding Co.		28,101		633,397
Citizens, Inc. (a)(b)		19,355		190,066
CNO Financial Group, Inc.		58,675		1,123,626
FBL Financial Group, Inc., Class A		3,483		272,197
Fidelity & Guaranty Life		4,649		110,181
Independence Holding Co.		2,509		49,051
National Western Life Group, Inc., Class A		822		255,478
Primerica, Inc.		15,369		1,062,766
Third Point Reinsurance Ltd. (a)		23,284		268,930
Trupanion, Inc. (a)(b)		4,656		72,261
				4,037,953
Insurance: Multi-Line — 0.3%
Atlas Financial Holdings, Inc. (a)		3,971		71,677
Crawford & Co., Class B		3,680		46,221
eHealth, Inc. (a)		5,891		62,739
Horace Mann Educators Corp.		13,933		596,332
James River Group Holdings Ltd.		5,126		212,985
Kemper Corp.		13,602		602,569
Maiden Holdings Ltd.		23,155		404,055
PICO Holdings, Inc. (a)		7,275		110,216
				2,106,794
Insurance: Property-Casualty — 1.8%
AMERISAFE, Inc.		6,272		391,059
Argo Group International Holdings Ltd.		9,931		654,453
Baldwin & Lyons, Inc., Class B		3,136		79,027
Blue Capital Reinsurance Holdings Ltd.		2,490		45,941
Donegal Group, Inc., Class A		3,409		59,589
EMC Insurance Group, Inc.		3,007		90,240
Employers Holdings, Inc.		10,980		434,808
Enstar Group Ltd. (a)		3,879		766,878
Essent Group Ltd. (a)		26,001		841,652
Federated National Holding Co.		4,352		81,339
Genworth Financial, Inc., Class A (a)		163,659		623,541
Global Indemnity, Ltd. (a)		2,955		112,911

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 51

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Insurance: Property-Casualty (continued)
Greenlight Capital Re Ltd., Class A (a)		10,430	$	237,804
Hallmark Financial Services, Inc. (a)		4,957		57,650
HCI Group, Inc.		2,767		109,241
Heritage Insurance Holdings, Inc.		8,976		140,654
Hilltop Holdings, Inc.		25,919		772,386
Infinity Property & Casualty Corp.		3,834		337,009
Investors Title Co.		522		82,570
Kinsale Capital Group, Inc.		2,387		81,182
National General Holdings Corp.		16,736		418,233
Navigators Group, Inc.		3,740		440,385
NMI Holdings, Inc., Class A (a)		16,620		177,003
OneBeacon Insurance Group Ltd., Class A		7,947		127,549
Radian Group, Inc.		73,824		1,327,356
RLI Corp.		13,226		834,957
Safety Insurance Group, Inc.		4,808		354,350
Selective Insurance Group, Inc.		16,390		705,589
State Auto Financial Corp.		5,345		143,299
State National Cos., Inc.		10,407		144,241
Stewart Information Services Corp.		8,311		382,971
United Fire Group, Inc.		7,192		353,631
United Insurance Holdings Corp.		5,642		85,420
Universal Insurance Holdings, Inc.		11,315		321,346
WMIH Corp. (a)		66,733		103,436
				11,919,700
International Trade & Diversified Logistic — 0.0%
Global Sources Ltd. (a)		2,183		19,319
Radiant Logistics, Inc. (a)		10,744		41,902
Vectrus, Inc. (a)		3,581		85,407
				146,628
Internet Software & Services — 0.4%
Amber Road, Inc. (a)		5,840		53,027
ChannelAdvisor Corp. (a)		7,626		109,433
Global Eagle Entertainment, Inc. (a)		15,398		99,471
Gogo, Inc. (a)(b)		18,460		170,201
GrubHub, Inc. (a)		27,841		1,047,379
MeetMe, Inc. (a)		13,581		66,955
Quotient Technology, Inc. (a)		21,996		236,457
TrueCar, Inc. (a)		18,734		234,175
Zendesk, Inc. (a)		27,471		582,385
				2,599,483
Leisure Time — 0.9%
Acushnet Holdings Corp. (a)		7,695		151,668
American Outdoor Brands Corp. (a)		18,560		391,245
Callaway Golf Co.		32,081		351,608
Churchill Downs, Inc.		4,685		704,858
ClubCorp Holdings, Inc.		22,034		316,188
Escalade, Inc.		3,599		47,507
ILG, Inc.		39,287		713,845
International Speedway Corp., Class A		8,613		316,958
Johnson Outdoors, Inc., Class A		1,557		61,797
Liberty TripAdvisor Holdings, Inc., Series A (a)		24,759		372,623
Lindblad Expeditions Holdings, Inc. (a)		4,879		46,107
Marriott Vacations Worldwide Corp.		7,763		658,690
Nautilus, Inc. (a)		11,292		208,902
Planet Fitness, Inc., Class A		8,960		180,096
SeaWorld Entertainment, Inc.		22,618		428,159
Speedway Motorsports, Inc.		3,839		83,191
Sturm Ruger & Co., Inc.		6,284		331,167
Travelport Worldwide Ltd.		41,291		582,203
West Marine, Inc. (a)		6,251		65,448
				6,012,260
Life Sciences Tools & Services — 0.0%
WaVe Life Sciences Ltd. (a)		2,433		63,623

Common Stocks	Shares		Value
Luxury Items — 0.0%
Movado Group, Inc.		5,071	$	145,791
Machinery: Agricultural — 0.1%
Alamo Group, Inc.		3,261		248,162
Lindsay Corp.		3,609		269,268
Titan International, Inc.		14,510		162,657
Titan Machinery, Inc. (a)		5,862		85,409
				765,496
Machinery: Construction & Handling — 0.1%
Astec Industries, Inc.		6,550		441,863
Douglas Dynamics, Inc.		7,879		265,128
NACCO Industries, Inc., Class A		1,240		112,282
				819,273
Machinery: Engines — 0.1%
Briggs & Stratton Corp.		14,398		320,499
Machinery: Industrial — 1.5%
Actuant Corp., Class A		20,654		535,971
Altra Industrial Motion Corp.		8,615		317,894
Applied Industrial Technologies, Inc.		12,530		744,282
Chart Industries, Inc. (a)		10,397		374,500
Columbus McKinnon Corp.		6,720		181,709
DXP Enterprises, Inc. (a)		5,335		185,338
EnPro Industries, Inc.		7,290		491,054
ExOne Co. (a)(b)		3,344		31,233
Gencor Industries, Inc. (a)		2,098		32,939
Graham Corp.		3,072		68,045
Hardinge, Inc.		4,240		46,979
Hyster-Yale Materials Handling, Inc.		3,273		208,719
John Bean Technologies Corp.		9,992		858,812
Joy Global, Inc.		33,784		945,952
Kadant, Inc.		3,711		227,113
Kennametal, Inc.		27,284		852,898
Manitowoc Co., Inc. (a)		43,701		261,332
Milacron Holdings Corp. (a)		4,987		92,908
MTS Systems Corp.		5,737		325,288
Omega Flex, Inc.		1,029		57,377
Proto Labs, Inc. (a)		8,352		428,875
SPX Corp. (a)		15,767		373,993
SPX FLOW, Inc. (a)		11,727		375,968
Supreme Industries, Inc., Class A		4,316		67,761
Tennant Co.		5,932		422,358
Woodward, Inc.		18,034		1,245,248
				9,754,546
Machinery: Specialty — 0.1%
Albany International Corp., Class A		9,731		450,545
Hurco Cos., Inc.		2,129		70,470
				521,015
Manufactured Housing — 0.0%
Cavco Industries, Inc. (a)		2,885		288,067
Medical & Dental Instruments & Supplies — 2.0%
American Renal Associates Holdings, Inc. (a)		2,980		63,414
AngioDynamics, Inc. (a)		8,889		149,957
Anika Therapeutics, Inc. (a)		4,893		239,561
AtriCure, Inc. (a)		10,331		202,178
Atrion Corp.		447		226,718
Avinger, Inc. (a)		7,088		26,226
AxoGen, Inc. (a)		8,280		74,520
Cantel Medical Corp.		12,353		972,799
Cardiovascular Systems, Inc. (a)		10,922		264,422
Cerus Corp. (a)		33,315		144,920
Community Health Systems, Inc. (a)		38,086		212,901
CONMED Corp.		9,374		414,050
Cotiviti Holdings, Inc. (a)		4,232		145,581
CryoLife, Inc.		10,337		197,954

See Notes to Financial Statements.

52 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Medical & Dental Instruments & Supplies (continued)
Cutera, Inc. (a)		3,811	$	66,121
Endologix, Inc. (a)		26,470		151,408
Entellus Medical, Inc. (a)		2,684		50,915
Exactech, Inc. (a)		3,386		92,438
Halyard Health, Inc. (a)		15,872		586,947
ICU Medical, Inc. (a)		5,108		752,664
Insulet Corp. (a)		20,558		774,625
Integra LifeSciences Holdings Corp. (a)		10,446		896,162
Intersect ENT, Inc. (a)		8,468		102,463
Invacare Corp.		10,430		136,112
InVivo Therapeutics Holdings Corp. (a)(b)		10,661		44,776
IRIDEX Corp. (a)		2,518		35,403
K2M Group Holdings, Inc. (a)		8,443		169,198
Landauer, Inc.		3,189		153,391
LeMaitre Vascular, Inc.		4,323		109,545
Meridian Bioscience, Inc.		14,392		254,738
Merit Medical Systems, Inc. (a)		14,672		388,808
NanoString Technologies, Inc. (a)		5,464		121,847
Neogen Corp. (a)		12,971		856,086
NuVasive, Inc. (a)		17,208		1,159,131
Ocular Therapeutix, Inc. (a)(b)		5,922		49,567
OraSure Technologies, Inc. (a)		17,848		156,705
Orthofix International NV (a)		6,027		218,057
Owens & Minor, Inc.		22,515		794,554
Quidel Corp. (a)		8,843		189,417
Quorum Health Corp. (a)		9,733		70,759
Second Sight Medical Products, Inc. (a)		3,830		7,545
Senseonics Holdings, Inc. (a)		8,663		23,130
Staar Surgical Co. (a)		13,202		143,242
SurModics, Inc. (a)		4,318		109,677
TransEnterix, Inc. (a)(b)		21,069		27,390
Utah Medical Products, Inc.		1,146		83,372
Vascular Solutions, Inc. (a)		5,761		323,192
ViewRay, Inc. (a)(b)		2,026		6,341
Wright Medical Group NV (a)		36,580		840,608
				13,281,535
Medical Equipment — 0.9%
Abaxis, Inc.		7,497		395,617
Accuray, Inc. (a)		26,285		120,911
Analogic Corp.		4,246		352,206
ConforMIS, Inc. (a)		12,595		102,019
Corindus Vascular Robotics, Inc. (a)(b)		14,191		9,911
Cynosure, Inc., Class A (a)		8,063		367,673
Fluidigm Corp. (a)		9,529		69,371
Glaukos Corp. (a)		6,319		216,742
Haemonetics Corp. (a)		18,069		726,374
iRadimed Corp. (a)		1,212		13,453
iRhythm Technologies, Inc. (a)		2,584		77,520
Luminex Corp. (a)		13,615		275,431
Masimo Corp. (a)		14,173		955,260
Natus Medical, Inc. (a)		11,053		384,644
Nevro Corp. (a)		8,358		607,292
NxStage Medical, Inc. (a)		21,603		566,215
Obalon Therapeutics, Inc. (a)(b)		2,089		18,488
Oxford Immunotec Global PLC (a)		7,498		112,095
Spectranetics Corp. (a)		14,567		356,891
Tactile Systems Technology, Inc. (a)		1,621		26,601
Tandem Diabetes Care, Inc. (a)		6,602		14,194
Zeltiq Aesthetics, Inc. (a)		12,015		522,893
				6,291,801
Medical Services — 0.2%
Fulgent Genetics, Inc. (a)(b)		2,014		23,302
PAREXEL International Corp. (a)		18,154		1,193,081
				1,216,383

Common Stocks	Shares		Value
Metal Fabricating — 0.8%
Advanced Drainage Systems, Inc.		11,924	$	245,634
Ampco-Pittsburgh Corp.		2,898		48,542
DMC Global, Inc.		4,513		71,531
Global Brass & Copper Holdings, Inc.		7,326		251,282
Haynes International, Inc.		4,071		175,012
Lawson Products, Inc. (a)		1,881		44,768
MRC Global, Inc. (a)		31,727		642,789
Mueller Industries, Inc.		19,961		797,642
Mueller Water Products, Inc., Series A		53,794		715,998
NN, Inc.		8,629		164,383
RBC Bearings, Inc. (a)		7,890		732,271
Rexnord Corp. (a)		29,321		574,398
Worthington Industries, Inc.		15,519		736,221
				5,200,471
Metals & Minerals: Diversified — 0.9%
Cliffs Natural Resources, Inc. (a)		76,272		641,448
Commercial Metals Co.		39,872		868,412
Ferroglobe PLC		47,704		267,133
Hecla Mining Co.		132,748		695,599
Materion Corp.		6,858		271,577
Minerals Technologies, Inc.		11,986		925,918
Oil-Dri Corp. of America		1,622		61,977
Ring Energy, Inc. (a)		14,300		185,757
SunCoke Energy, Inc. (a)		22,218		251,952
U.S. Silica Holdings, Inc.		25,470		1,443,640
United States Lime & Minerals, Inc.		648		49,086
				5,662,499
Office Supplies & Equipment — 0.7%
ACCO Brands Corp. (a)		35,971		469,422
Eastman Kodak Co. (a)		5,712		88,536
Electronics for Imaging, Inc. (a)		16,625		729,173
Essendant, Inc.		12,813		267,792
Herman Miller, Inc.		20,920		715,464
HNI Corp.		15,674		876,490
Kimball International, Inc., Class B		12,145		213,266
Knoll, Inc.		16,293		455,063
Steelcase, Inc., Class A		29,189		522,483
				4,337,689
Offshore Drilling & Other Services — 0.1%
Atwood Oceanics, Inc.		21,032		276,150
Seadrill Ltd. (a)(b)		128,450		438,015
				714,165
Oil Well Equipment & Services — 0.7%
Dawson Geophysical Co. (a)		6,925		55,677
Fairmount Santrol Holdings, Inc. (a)		30,801		363,144
Flotek Industries, Inc. (a)		17,909		168,165
Forum Energy Technologies, Inc. (a)		20,296		446,512
Helix Energy Solutions Group, Inc. (a)		38,228		337,171
Hornbeck Offshore Services, Inc. (a)		9,405		67,904
Independence Contract Drilling, Inc. (a)		10,591		70,960
Mammoth Energy Services, Inc. (a)		2,902		44,110
Matrix Service Co. (a)		10,665		242,095
McDermott International, Inc. (a)		81,768		604,266
Natural Gas Services Group, Inc. (a)		3,991		128,311
Newpark Resources, Inc. (a)		27,184		203,880
Oil States International, Inc. (a)		18,437		719,043
Parker Drilling Co. (a)		39,751		103,353
RigNet, Inc. (a)		4,052		93,804
SEACOR Holdings, Inc. (a)		5,410		385,625
Smart Sand, Inc. (a)		4,316		71,430
Tesco Corp.		15,112		124,674
TETRA Technologies, Inc. (a)		29,667		148,928
Willbros Group, Inc. (a)		16,055		52,018
				4,431,070

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 53

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Oil, Gas & Consumable Fuels — 0.4%
Archrock, Inc.		23,640	$	312,048
Ardmore Shipping Corp.		9,092		67,281
CARBO Ceramics, Inc. (a)		7,882		82,446
DHT Holdings, Inc.		30,474		126,162
Dorian LPG Ltd. (a)		7,639		62,716
EXCO Resources, Inc. (a)		44,510		38,888
Exterran Corp. (a)		10,954		261,800
Frontline Ltd.		21,315		151,550
Navios Maritime Acquisition Corp.		27,958		47,529
Pacific Ethanol, Inc. (a)		9,442		89,699
Plug Power, Inc. (a)(b)		60,153		72,184
RSP Permian, Inc. (a)		33,634		1,500,749
				2,813,052
Oil: Crude Producers — 1.3%
Abraxas Petroleum Corp. (a)		40,565		104,252
Bill Barrett Corp. (a)		15,726		109,925
California Resources Corp. (a)(b)		11,760		250,370
Callon Petroleum Co. (a)		50,307		773,218
Carrizo Oil & Gas, Inc. (a)		21,768		813,035
Clayton Williams Energy, Inc. (a)		2,058		245,437
Contango Oil & Gas Co. (a)		7,317		68,341
CVR Energy, Inc.		5,230		132,790
Denbury Resources, Inc. (a)		119,173		438,557
Earthstone Energy, Inc. (a)		280		3,847
Eclipse Resources Corp. (a)		18,737		50,028
Erin Energy Corp. (a)(b)		3,671		11,196
Evolution Petroleum Corp.		8,985		89,850
Isramco, Inc. (a)		229		28,465
Jones Energy, Inc., Class A (a)		18,965		94,825
Northern Oil and Gas, Inc. (a)		16,222		44,610
Oasis Petroleum, Inc. (a)		80,531		1,219,239
ONE Gas, Inc.		17,756		1,135,674
Overseas Shipholding Group, Inc., Class A		13,547		51,885
Panhandle Oil and Gas, Inc., Class A		5,092		119,917
PDC Energy, Inc. (a)		19,228		1,395,568
Sanchez Energy Corp. (a)		18,635		168,274
Synergy Resources Corp. (a)		62,903		560,466
Unit Corp. (a)		17,162		461,143
W&T Offshore, Inc. (a)		9,465		26,218
				8,397,130
Oil: Refining & Marketing — 0.3%
Adams Resources & Energy, Inc.		562		22,283
Alon USA Energy, Inc.		10,418		118,557
Clean Energy Fuels Corp. (a)		33,568		96,004
Delek U.S. Holdings, Inc.		20,949		504,242
Par Pacific Holdings, Inc. (a)		10,177		147,974
Renewable Energy Group, Inc. (a)		12,671		122,909
Trecora Resources (a)		6,709		92,920
Western Refining, Inc.		27,996		1,059,649
				2,164,538
Paints & Coatings — 0.2%
Chase Corp.		2,660		222,243
Ferro Corp. (a)		28,318		405,797
HB Fuller Co.		17,431		842,092
Kronos Worldwide, Inc.		6,875		82,087
				1,552,219
Paper — 0.4%
Clearwater Paper Corp. (a)		5,747		376,716
KapStone Paper and Packaging Corp.		30,332		668,820
Neenah Paper, Inc.		5,789		493,223
PH Glatfelter Co.		14,765		352,736
Schweitzer-Mauduit International, Inc.		10,260		467,138
				2,358,633

Common Stocks	Shares		Value
Personal Care — 0.1%
Lifevantage Corp. (a)		4,334	$	35,322
Orchids Paper Products Co.		2,936		76,864
USANA Health Sciences, Inc. (a)		3,629		222,095
WD-40 Co.		4,753		555,626
				889,907
Pharmaceuticals — 1.9%
AcelRx Pharmaceuticals, Inc. (a)		10,893		28,322
Achillion Pharmaceuticals, Inc. (a)		38,585		159,356
Aclaris Therapeutics, Inc. (a)		3,917		106,307
Adamas Pharmaceuticals, Inc. (a)		5,557		93,913
Aerie Pharmaceuticals, Inc. (a)		9,784		370,324
Agile Therapeutics, Inc. (a)		4,444		25,331
Amphastar Pharmaceuticals, Inc. (a)		12,299		226,548
Ampio Pharmaceuticals, Inc. (a)(b)		12,123		10,913
Aratana Therapeutics, Inc. (a)		10,979		78,829
Arrowhead Pharmaceuticals, Inc. (a)(b)		19,637		30,437
Axsome Therapeutics, Inc. (a)(b)		3,526		23,801
Biospecifics Technologies Corp. (a)		1,816		101,151
Cambrex Corp. (a)		11,419		616,055
Cempra, Inc. (a)(b)		14,762		41,334
Chimerix, Inc. (a)		13,640		62,744
ChromaDex Corp. (a)		8,281		27,410
Concert Pharmaceuticals, Inc. (a)		5,645		58,087
Corcept Therapeutics, Inc. (a)		24,500		177,870
Corvus Pharmaceuticals, Inc. (a)		869		12,427
Depomed, Inc. (a)		20,680		372,654
Durect Corp. (a)		42,874		57,451
Eagle Pharmaceuticals, Inc. (a)		3,069		243,494
Egalet Corp. (a)(b)		7,464		57,100
Enanta Pharmaceuticals, Inc. (a)		5,174		173,329
Endocyte, Inc. (a)		13,580		34,629
Esperion Therapeutics, Inc. (a)		4,555		57,029
Heska Corp. (a)		1,976		141,482
Horizon Pharma PLC (a)		57,760		934,557
Immune Design Corp. (a)		4,834		26,587
Impax Laboratories, Inc. (a)		25,100		332,575
Infinity Pharmaceuticals, Inc. (a)		15,613		21,078
Innoviva, Inc. (a)		27,678		296,155
Inotek Pharmaceuticals Corp. (a)		5,954		36,319
Intra-Cellular Therapies, Inc. (a)		11,313		170,713
Ironwood Pharmaceuticals, Inc. (a)		43,777		669,350
Kite Pharma, Inc. (a)(b)		13,277		595,341
La Jolla Pharmaceutical Co. (a)		4,499		78,867
Lannett Co., Inc. (a)(b)		9,621		212,143
Lipocine, Inc. (a)(b)		4,616		16,987
Medicines Co. (a)		24,130		818,972
MyoKardia, Inc. (a)		4,716		61,072
Otonomy, Inc. (a)		7,920		125,928
Pacira Pharmaceuticals, Inc. (a)		12,392		400,262
Paratek Pharmaceuticals, Inc. (a)		6,071		93,493
Portola Pharmaceuticals, Inc. (a)		16,879		378,765
Prestige Brands Holdings, Inc. (a)		18,256		951,138
Radius Health, Inc. (a)		10,697		406,807
Reata Pharmaceuticals, Inc. (a)		1,898		41,433
Revance Therapeutics, Inc. (a)		6,774		140,222
Sciclone Pharmaceuticals, Inc. (a)		16,513		178,340
Spectrum Pharmaceuticals, Inc. (a)		25,700		113,851
Supernus Pharmaceuticals, Inc. (a)		15,974		403,344
Syndax Pharmaceuticals, Inc. (a)		1,279		9,170
Teligent, Inc. (a)		13,803		91,238
TG Therapeutics, Inc. (a)		11,718		54,489
TherapeuticsMD, Inc. (a)(b)		51,352		296,301
Theravance Biopharma, Inc. (a)		13,610		433,887
Titan Pharmaceuticals, Inc. (a)(b)		6,079		24,316
Ultragenyx Pharmaceutical, Inc. (a)		12,898		906,858
Voyager Therapeutics, Inc. (a)		4,083		52,017

See Notes to Financial Statements.

54 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Pharmaceuticals (continued)
Zafgen, Inc. (a)		6,536	$	20,784
Zogenix, Inc. (a)		7,997		97,164
				12,878,850
Photography — 0.0%
GoPro, Inc., Class A (a)(b)		34,328		298,997
Plastics — 0.2%
A. Schulman, Inc.		9,822		328,546
Ply Gem Holdings, Inc. (a)		7,278		118,268
Trinseo SA		9,435		559,495
				1,006,309
Power Transmission Equipment — 0.3%
Advanced Energy Industries, Inc. (a)		13,641		746,845
Generac Holdings, Inc. (a)		22,418		913,309
Maxwell Technologies, Inc. (a)		10,738		54,979
Powell Industries, Inc.		2,926		114,114
Vicor Corp. (a)		5,494		82,959
				1,912,206
Precious Metals & Minerals — 0.1%
Stillwater Mining Co. (a)		42,747		688,654
Printing & Copying Services — 0.1%
Casella Waste Systems, Inc., Class A (a)		12,728		157,955
Cimpress NV (a)		8,684		795,541
				953,496
Producer Durables: Miscellaneous — 0.0%
Advanced Disposal Services, Inc. (a)		7,497		166,583
Park-Ohio Holdings Corp.		2,759		117,534
				284,117
Production Technology Equipment — 0.7%
Axcelis Technologies, Inc. (a)		9,547		138,909
Brooks Automation, Inc.		23,127		394,778
Cohu, Inc.		8,643		120,138
Electro Scientific Industries, Inc. (a)		9,057		53,617
Entegris, Inc. (a)		49,132		879,463
MKS Instruments, Inc.		18,305		1,087,317
Nanometrics, Inc. (a)		9,412		235,865
Photronics, Inc. (a)		22,524		254,521
Rudolph Technologies, Inc. (a)		11,288		263,575
Tessera Holding Corp.		17,077		754,803
Ultra Clean Holdings, Inc. (a)		10,472		101,578
Ultratech, Inc. (a)		7,075		169,659
Veeco Instruments, Inc. (a)		13,503		393,612
				4,847,835
Publishing — 0.5%
Daily Journal Corp. (a)		360		87,048
Eros International PLC (a)(b)		9,675		126,259
Media General, Inc. (a)		38,170		718,741
Meredith Corp.		12,573		743,693
New Media Investment Group, Inc.		15,671		250,579
New York Times Co., Class A		44,126		586,876
Scholastic Corp.		9,276		440,517
Time, Inc.		34,848		622,037
				3,575,750
Radio & TV Broadcasters — 0.6%
Central European Media Enterprises Ltd., Class A (a)		23,953		61,080
Entercom Communications Corp., Class A		8,576		131,213
Entravision Communications Corp., Class A		21,454		150,178
Formula One Group, Class A (a)		7,925		248,449
Formula One Group, Class C (a)		15,556		487,370
Gannett Co., Inc.		40,149		389,847
Gray Television, Inc. (a)		22,298		241,933
Liberty Braves Group, Class A (a)		3,275		67,105

Common Stocks	Shares		Value
Radio & TV Broadcasters (continued)
Liberty Braves Group, Class C (a)		10,373	$	213,580
MSG Networks, Inc., Class A (a)		20,262		435,633
Nexstar Broadcasting Group, Inc., Class A		10,438		660,725
Radio One, Inc., Class D (a)		6,576		19,070
Saga Communications, Inc., Class A		1,177		59,203
Salem Media Group, Inc., Class A		2,902		18,138
Sinclair Broadcast Group, Inc., Class A		23,101		770,418
Townsquare Media, Inc. (a)		3,245		33,780
TRONC, Inc.		8,793		121,959
				4,109,681
Railroad Equipment — 0.1%
American Railcar Industries, Inc.		2,575		116,622
FreightCar America, Inc.		4,000		59,720
Greenbrier Cos., Inc.		9,179		381,387
				557,729
Real Estate — 0.3%
AV Homes, Inc. (a)		4,186		66,139
Consolidated-Tomoka Land Co.		1,365		72,918
Forestar Group, Inc. (a)		11,262		149,785
HFF, Inc., Class A		12,244		370,381
Kennedy-Wilson Holdings, Inc.		29,038		595,279
RMR Group, Inc., Class A		2,368		93,536
St. Joe Co. (a)		16,500		313,500
Stratus Properties, Inc. (a)		2,165		70,904
Tejon Ranch Co. (a)		4,623		117,563
Trinity Place Holdings, Inc. (a)		6,302		58,419
				1,908,424
Real Estate Investment Trusts (REITs) — 8.1%
Acadia Realty Trust		27,650		903,602
AG Mortgage Investment Trust, Inc.		9,274		158,678
Agree Realty Corp.		8,636		397,688
Alexander & Baldwin, Inc.		16,513		740,938
Alexander’s, Inc.		739		315,457
Altisource Residential Corp.		17,454		192,692
American Assets Trust, Inc.		14,266		614,579
Anworth Mortgage Asset Corp.		30,717		158,807
Apollo Commercial Real Estate Finance, Inc.		24,830		412,675
Ares Commercial Real Estate Corp.		9,493		130,339
Armada Hoffler Properties, Inc.		11,384		165,865
ARMOUR Residential REIT, Inc.		12,755		276,656
Ashford Hospitality Prime, Inc.		7,928		108,217
Ashford Hospitality Trust, Inc.		26,296		204,057
Bluerock Residential Growth REIT, Inc.		6,705		91,993
Capstead Mortgage Corp.		33,400		340,346
CareTrust REIT, Inc.		22,429		343,612
Catchmark Timber Trust, Inc., Class A		13,045		146,887
CBL & Associates Properties, Inc.		59,726		686,849
Cedar Realty Trust, Inc.		27,882		182,069
Chatham Lodging Trust		12,574		258,396
Chesapeake Lodging Trust		20,381		527,053
City Office REIT, Inc.		7,341		96,681
Colony Capital, Inc., Class A		37,911		767,698
Colony Starwood Homes		23,081		664,964
Community Healthcare Trust, Inc.		4,381		100,894
CorEnergy Infrastructure Trust, Inc.		4,017		140,113
Coresite Realty Corp.		11,517		914,104
Cousins Properties, Inc.		117,402		999,091
CYS Investments, Inc.		52,536		406,103
DiamondRock Hospitality Co.		71,461		823,945
DuPont Fabros Technology, Inc.		25,492		1,119,864
Dynex Capital, Inc.		15,567		106,167
Easterly Government Properties, Inc.		11,730		234,835
EastGroup Properties, Inc.		10,385		766,828
Education Realty Trust, Inc.		25,139		1,063,380

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 55

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Real Estate Investment Trusts (REITs) (continued)
Farmland Partners, Inc. (b)		6,283	$	70,118
FelCor Lodging Trust, Inc.		46,878		375,493
First Industrial Realty Trust, Inc.		40,494		1,135,857
First Potomac Realty Trust		19,581		214,804
Four Corners Property Trust, Inc.		11,641		238,873
Franklin Street Properties Corp.		35,976		466,249
Geo Group, Inc.		25,698		923,329
Getty Realty Corp.		9,350		238,331
Gladstone Commercial Corp.		9,046		181,825
Global Medical REIT, Inc.		5,648		50,380
Global Net Lease, Inc.		58,696		459,590
Government Properties Income Trust		17,876		340,806
Gramercy Property Trust		148,115		1,359,696
Great Ajax Corp.		5,343		70,902
Healthcare Realty Trust, Inc.		39,017		1,182,995
Hersha Hospitality Trust		14,468		311,062
Hudson Pacific Properties, Inc.		36,678		1,275,661
Independence Realty Trust, Inc.		20,718		184,805
InfraREIT, Inc.		14,187		254,089
Invesco Mortgage Capital, Inc.		40,146		586,132
Investors Real Estate Trust		42,185		300,779
iStar, Inc. (a)		23,954		296,311
Kite Realty Group Trust		28,258		663,498
LaSalle Hotel Properties		36,876		1,123,612
Lexington Realty Trust		80,998		874,778
LTC Properties, Inc.		13,440		631,411
Mack-Cali Realty Corp.		32,213		934,821
MedEquities Realty Trust, Inc.		7,805		86,635
Medical Properties Trust, Inc.		100,870		1,240,701
Monmouth Real Estate Investment Corp.		23,128		352,471
Monogram Residential Trust, Inc.		57,508		622,237
MTGE Investment Corp.		15,275		239,817
National Health Investors, Inc.		12,801		949,450
National Storage Affiliates Trust		11,717		258,594
New Residential Investment Corp.		83,512		1,312,809
New Senior Investment Group, Inc.		26,510		259,533
New York Mortgage Trust, Inc.		37,147		245,170
New York REIT, Inc.		56,647		573,268
NexPoint Residential Trust, Inc.		6,048		135,112
NorthStar Realty Europe Corp.		18,797		236,278
One Liberty Properties, Inc.		4,637		116,481
Orchid Island Capital, Inc.		8,473		91,763
Owens Realty Mortgage, Inc.		3,428		63,487
Parkway, Inc. (a)		14,780		328,855
Pebblebrook Hotel Trust		25,635		762,641
Pennsylvania Real Estate Investment Trust		23,015		436,364
PennyMac Mortgage Investment Trust (c)		22,641		370,633
Physicians Realty Trust		47,948		909,094
Potlatch Corp.		13,910		579,351
Preferred Apartment Communities, Inc., Class A		9,271		138,231
PS Business Parks, Inc.		6,777		789,656
QTS Realty Trust, Inc., Class A		16,552		821,807
RAIT Financial Trust		22,437		75,388
Ramco-Gershenson Properties Trust		27,192		450,843
Redwood Trust, Inc.		26,313		400,221
Resource Capital Corp.		10,203		84,991
Retail Opportunity Investments Corp.		36,246		765,878
Rexford Industrial Realty, Inc.		22,488		521,497
RLJ Lodging Trust		42,848		1,049,347
Sabra Health Care REIT, Inc.		22,046		538,363
Saul Centers, Inc.		3,414		227,406
Select Income REIT		21,761		548,377
Seritage Growth Properties, Class A (b)		8,156		348,343
Silver Bay Realty Trust Corp.		11,211		192,157
STAG Industrial, Inc.		26,005		620,739
Summit Hotel Properties, Inc.		28,625		458,859
Sunstone Hotel Investors, Inc.		74,824		1,141,066

Common Stocks	Shares		Value
Real Estate Investment Trusts (REITs) (continued)
Terreno Realty Corp.		15,743	$	448,518
Tier REIT, Inc.		15,947		277,318
UMH Properties, Inc.		8,478		127,594
Universal Health Realty Income Trust		2,701		177,159
Urban Edge Properties		30,245		832,040
Urstadt Biddle Properties, Inc., Class A		6,772		163,273
Walter Investment Management Corp. (a)(b)		5,571		26,462
Washington Prime Group, Inc.		68,041		708,307
Washington Real Estate Investment Trust		26,155		855,007
Western Asset Mortgage Capital Corp.		13,498		135,925
Whitestone REIT		10,270		147,683
Xenia Hotels & Resorts, Inc.		35,456		688,555
				54,240,083
Recreational Vehicles & Boats — 0.2%
Arctic Cat, Inc.		4,473		67,184
Camping World Holdings, Inc.		4,188		136,487
LCI Industries		8,134		876,438
Malibu Boats, Inc. (a)		6,072		115,854
Marine Products Corp.		3,962		54,953
MCBC Holdings, Inc.		2,293		33,432
Winnebago Industries, Inc.		9,170		290,231
				1,574,579
Rental & Leasing Services: Consumer — 0.0%
Rent-A-Center, Inc., Class A		16,972		190,935
Restaurants — 2.0%
Biglari Holdings, Inc. (a)		340		160,888
BJ’s Restaurants, Inc. (a)		8,004		314,557
Bloomin’ Brands, Inc.		35,509		640,227
Bob Evans Farms, Inc.		6,779		360,711
Bojangles’, Inc. (a)		3,272		61,023
Buffalo Wild Wings, Inc. (a)		6,175		953,420
Carrols Restaurant Group, Inc. (a)		11,266		171,807
Cheesecake Factory, Inc.		15,579		932,871
Cracker Barrel Old Country Store, Inc.		6,555		1,094,554
Dave & Buster’s Entertainment, Inc. (a)		13,110		738,093
Del Taco Restaurants, Inc. (a)		8,201		115,798
Denny’s Corp. (a)		25,987		333,413
DineEquity, Inc.		6,183		476,091
El Pollo Loco Holdings, Inc. (a)		6,798		83,615
Ellie Mae, Inc. (a)		11,237		940,312
Fiesta Restaurant Group, Inc. (a)		9,160		273,426
Fogo De Chao, Inc. (a)		1,664		23,878
Habit Restaurants, Inc., Class A (a)		4,521		77,987
J Alexander’s Holdings, Inc. (a)		4,381		47,096
Jack in the Box, Inc.		11,147		1,244,451
Jamba, Inc. (a)(b)		4,221		43,476
Kona Grill, Inc. (a)		2,435		30,559
Luby’s, Inc. (a)		5,241		22,432
Nathan’s Famous, Inc. (a)		1,059		68,729
Noodles & Co. (a)(b)		3,790		15,539
Papa John’s International, Inc.		9,372		802,056
Popeyes Louisiana Kitchen, Inc. (a)		7,263		439,266
Potbelly Corp. (a)		7,842		101,162
Red Robin Gourmet Burgers, Inc. (a)		4,480		252,672
Ruby Tuesday, Inc. (a)		20,067		64,816
Ruth’s Hospitality Group, Inc.		12,365		226,280
Shake Shack, Inc., Class A (a)		5,868		210,016
Sonic Corp.		15,739		417,241
Texas Roadhouse, Inc.		22,670		1,093,601
Wingstop, Inc.		5,192		153,631
Zoe’s Kitchen, Inc. (a)		6,282		150,705
				13,136,399
Scientific Instruments: Control & Filter — 0.4%
Brady Corp., Class A		15,929		598,134

See Notes to Financial Statements.

56 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Scientific Instruments: Control & Filter (continued)
CIRCOR International, Inc.		5,591	$	362,744
Energy Recovery, Inc. (a)		11,244		116,375
ESCO Technologies, Inc.		8,607		487,587
Gorman-Rupp Co.		5,778		178,829
Sun Hydraulics Corp.		7,943		317,482
Thermon Group Holdings, Inc. (a)		10,565		201,686
Watts Water Technologies, Inc., Class A		9,652		629,310
				2,892,147
Scientific Instruments: Electrical — 0.6%
Allied Motion Technologies, Inc.		2,225		47,593
Atkore International Group, Inc. (a)		4,035		96,477
AZZ, Inc.		8,772		560,531
EnerSys		14,861		1,160,644
Franklin Electric Co., Inc.		16,142		627,924
Littelfuse, Inc.		7,587		1,151,479
Preformed Line Products Co.		866		50,332
Taser International, Inc. (a)		17,635		427,472
				4,122,452
Scientific Instruments: Gauges & Meters — 0.2%
Badger Meter, Inc.		9,567		353,501
FARO Technologies, Inc. (a)		6,546		235,656
Itron, Inc. (a)		11,690		734,716
Mesa Laboratories, Inc.		977		119,927
Vishay Precision Group, Inc. (a)		4,022		76,016
				1,519,816
Scientific Instruments: Pollution Control — 0.3%
Ceco Environmental Corp.		9,626		134,283
Darling Ingredients, Inc. (a)		57,532		742,738
Heritage-Crystal Clean, Inc. (a)		4,350		68,295
Team, Inc. (a)		9,853		386,730
TRC Cos., Inc. (a)		6,550		69,430
U.S. Ecology, Inc.		7,391		363,268
				1,764,744
Securities Brokerage & Services — 0.2%
BGC Partners, Inc., Class A		76,011		777,592
Gain Capital Holdings, Inc.		12,505		82,283
INTL. FCStone, Inc. (a)		5,278		209,009
Investment Technology Group, Inc.		10,047		198,328
Ladenburg Thalmann Financial Services, Inc. (a)		34,978		85,346
Virtu Financial, Inc., Class A		8,779		140,025
				1,492,583
Semiconductors & Components — 2.8%
Acacia Communications, Inc. (a)(b)		1,712		105,716
Advanced Micro Devices, Inc. (a)		257,681		2,922,103
Alpha & Omega Semiconductor Ltd. (a)		5,915		125,812
Amkor Technology, Inc. (a)		33,850		357,118
Applied Micro Circuits Corp. (a)		29,607		244,258
Cavium, Inc. (a)		22,336		1,394,660
CEVA, Inc. (a)		6,871		230,522
Cirrus Logic, Inc. (a)		21,373		1,208,429
Diodes, Inc. (a)		12,990		333,453
DSP Group, Inc. (a)		6,999		91,337
Emcore Corp.		8,298		72,193
Exar Corp. (a)		14,185		152,914
FormFactor, Inc. (a)		23,485		263,032
GigPeak, Inc. (a)		18,816		47,416
Inphi Corp. (a)		13,991		624,278
Integrated Device Technology, Inc. (a)		46,522		1,096,058
Intersil Corp., Class A		46,030		1,026,469
IXYS Corp.		8,052		95,819
Kopin Corp. (a)		20,545		58,348
Lattice Semiconductor Corp. (a)		40,952		301,407
MACOM Technology Solutions Holdings, Inc. (a)		7,894		365,334

Common Stocks	Shares		Value
Semiconductors & Components (continued)
MaxLinear, Inc., Class A (a)		18,929	$	412,652
Microsemi Corp. (a)		38,950		2,102,132
Monolithic Power Systems, Inc.		13,303		1,089,915
Power Integrations, Inc.		9,591		650,749
Rambus, Inc. (a)		36,840		507,287
Semtech Corp. (a)		22,726		717,005
Sigma Designs, Inc. (a)		11,772		70,632
Silicon Laboratories, Inc. (a)		14,316		930,540
Vishay Intertechnology, Inc.		47,683		772,465
				18,370,053
Semiconductors & Semiconductor Equipment — 0.1%
Ambarella, Inc. (a)		11,126		602,250
Xcerra Corp. (a)		17,414		133,043
				735,293
Shipping — 0.4%
GasLog Ltd.		13,475		216,948
Gener8 Maritime, Inc. (a)		13,182		59,055
Golar LNG Ltd.		33,628		771,426
International Seaways, Inc. (a)		5,814		81,629
Matson, Inc.		14,601		516,729
Nordic American Tankers Ltd.		33,416		280,694
Scorpio Tankers, Inc.		56,088		254,079
Ship Finance International Ltd.		21,824		324,086
Teekay Corp.		16,219		130,239
Teekay Tankers Ltd., Class A		38,877		87,862
Tidewater, Inc.		17,312		59,034
				2,781,781
Software — 0.4%
Actua Corp. (a)		11,742		164,388
Castlight Health, Inc., Class B (a)		12,975		64,226
Five9, Inc. (a)		10,756		152,628
Gigamon, Inc. (a)		10,982		500,230
Globant SA (a)		8,756		292,013
Instructure, Inc. (a)		3,489		68,210
MobileIron, Inc. (a)		14,122		52,957
Model N, Inc. (a)		7,511		66,472
Park City Group, Inc. (a)		4,300		54,610
Paycom Software, Inc. (a)		15,322		696,998
pdvWireless, Inc. (a)(b)		3,396		76,580
Qualys, Inc. (a)		9,304		294,471
Rubicon Project, Inc. (a)		12,297		91,244
				2,575,027
Specialty Retail — 2.6%
1-800-Flowers.com, Inc., Class A (a)		8,661		92,673
Aaron’s, Inc.		22,730		727,133
Abercrombie & Fitch Co., Class A		23,264		279,168
America’s Car-Mart, Inc. (a)		2,590		113,313
American Eagle Outfitters, Inc.		57,064		865,661
Asbury Automotive Group, Inc. (a)		6,783		418,511
Ascena Retail Group, Inc. (a)		58,880		364,467
At Home Group, Inc. (a)		3,032		44,358
Barnes & Noble Education, Inc. (a)		13,192		151,312
Barnes & Noble, Inc.		21,561		240,405
Big 5 Sporting Goods Corp.		5,771		100,127
Blue Nile, Inc.		3,827		155,491
BMC Stock Holdings, Inc. (a)		18,794		366,483
Boot Barn Holdings, Inc. (a)		4,129		51,695
Buckle, Inc.		9,883		225,332
Build-A-Bear Workshop, Inc., Class A (a)		4,129		56,774
Caleres, Inc.		14,483		475,332
Cato Corp., Class A		8,776		263,982
Chico’s FAS, Inc.		45,418		653,565
Children’s Place Retail Stores, Inc.		6,468		652,945
Citi Trends, Inc.		4,668		87,945

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 57

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Specialty Retail (continued)
Conn’s, Inc. (a)		6,618	$	83,718
Container Store Group, Inc. (a)		5,891		37,408
Destination XL Group, Inc. (a)		11,563		49,143
DSW, Inc., Class A		23,501		532,298
Express, Inc. (a)		25,377		273,057
Finish Line, Inc., Class A		14,282		268,644
Five Below, Inc. (a)		18,589		742,816
Francesca’s Holdings Corp. (a)		13,119		236,536
FTD Cos., Inc. (a)		5,725		136,484
Genesco, Inc. (a)		6,949		431,533
GNC Holdings, Inc., Class A		23,380		258,115
Group 1 Automotive, Inc.		7,042		548,853
Guess?, Inc.		21,117		255,516
Haverty Furniture Cos., Inc.		6,073		143,930
Hibbett Sports, Inc. (a)		7,776		290,045
Lands’ End, Inc. (a)(b)		4,832		73,205
Lithia Motors, Inc., Class A		8,250		798,847
Lumber Liquidators Holdings, Inc. (a)(b)		8,628		135,805
MarineMax, Inc. (a)		8,150		157,702
Monro Muffler Brake, Inc.		11,065		632,918
Office Depot, Inc.		194,442		878,878
Party City Holdco, Inc. (a)		8,842		125,556
Pier 1 Imports, Inc.		30,142		257,413
Regis Corp. (a)		12,212		177,318
RetailMeNot, Inc. (a)		12,654		117,682
Shoe Carnival, Inc.		4,671		126,024
Shutterfly, Inc. (a)		11,696		586,905
Sonic Automotive, Inc., Class A		11,117		254,579
Sportsman’s Warehouse Holdings, Inc. (a)		8,591		80,669
Stage Stores, Inc.		8,255		36,074
Stamps.com, Inc. (a)		5,617		643,989
Stein Mart, Inc.		9,911		54,312
Systemax, Inc.		3,784		33,186
Tailored Brands, Inc.		16,520		422,086
Tilly’s, Inc., Class A (a)		4,177		55,095
Vitamin Shoppe, Inc. (a)		8,344		198,170
Wayfair, Inc., Class A (a)(b)		10,682		374,404
Zumiez, Inc. (a)		6,319		138,070
				17,033,655
Steel — 0.4%
AK Steel Holding Corp. (a)		107,451		1,097,075
Allegheny Technologies, Inc.		36,732		585,141
Carbonite, Inc. (a)		5,911		96,940
Carpenter Technology Corp.		15,657		566,314
Handy & Harman Ltd. (a)		1,051		26,853
Olympic Steel, Inc.		3,045		73,780
Ryerson Holding Corp. (a)		4,016		53,614
Schnitzer Steel Industries, Inc., Class A		8,962		230,323
TimkenSteel Corp. (a)		15,216		235,544
				2,965,584
Technology: Miscellaneous — 0.3%
Apptio Inc., Class A (a)		2,581		47,826
Benchmark Electronics, Inc. (a)		16,818		512,949
CTS Corp.		10,795		241,808
Fabrinet (a)		11,798		475,459
Kimball Electronics, Inc. (a)		9,201		167,458
Plexus Corp. (a)		11,310		611,193
				2,056,693
Telecommunications Equipment — 0.4%
Applied Optoelectronics, Inc. (a)		5,400		126,576
CalAmp Corp. (a)		11,768		170,636
Clearfield, Inc. (a)		3,630		75,141
Inteliquent, Inc.		11,197		256,635
Knowles Corp. (a)		29,943		500,347

Common Stocks	Shares		Value
Telecommunications Equipment (continued)
Oclaro, Inc. (a)		37,926	$	339,438
Ubiquiti Networks, Inc. (a)		9,047		522,917
Viavi Solutions, Inc. (a)		79,462		649,999
Vocera Communications, Inc. (a)		8,134		150,398
				2,792,087
Textile Products — 0.1%
Culp, Inc.		3,500		130,025
Interface, Inc.		21,996		408,026
Unifi, Inc. (a)		5,125		167,229
				705,280
Textiles Apparel & Shoes — 0.7%
Columbia Sportswear Co.		9,353		545,280
Crocs, Inc. (a)		24,136		165,573
Deckers Outdoor Corp. (a)		11,254		623,359
Delta Apparel, Inc. (a)		2,401		49,773
Fossil Group, Inc. (a)		14,257		368,686
G-III Apparel Group Ltd. (a)		14,596		431,458
Iconix Brand Group, Inc. (a)		14,113		131,815
Oxford Industries, Inc.		5,167		310,692
Perry Ellis International, Inc. (a)		4,188		104,323
Sequential Brands Group, Inc. (a)		13,152		61,551
Steven Madden Ltd. (a)		21,339		762,869
Superior Uniform Group, Inc.		2,476		48,579
Vera Bradley, Inc. (a)		6,586		77,188
Vince Holding Corp. (a)		6,862		27,791
Weyco Group, Inc.		2,072		64,854
Wolverine World Wide, Inc.		33,561		736,664
				4,510,455
Tobacco — 0.2%
Alliance One International, Inc. (a)		2,927		56,198
Turning Point Brands, Inc. (a)		1,734		21,242
Universal Corp.		7,547		481,121
Vector Group Ltd.		32,053		728,885
				1,287,446
Toys — 0.0%
JAKKS Pacific, Inc. (a)		4,759		24,509
Transportation Miscellaneous — 0.4%
Costamare, Inc.		10,970		61,432
Echo Global Logistics, Inc. (a)		10,000		250,500
Hub Group, Inc., Class A (a)		11,354		496,738
Scorpio Bulkers, Inc. (a)		17,709		89,430
Textainer Group Holdings Ltd.		7,632		56,858
Wesco Aircraft Holdings, Inc. (a)		19,069		285,082
XPO Logistics, Inc. (a)		33,748		1,456,564
				2,696,604
Truckers — 0.6%
ArcBest Corp.		8,445		233,504
Celadon Group, Inc.		9,272		66,295
Covenant Transportation Group, Inc., Class A (a)		3,907		75,561
Forward Air Corp.		10,072		477,211
FRP Holdings, Inc. (a)		1,989		74,985
Heartland Express, Inc.		15,586		317,331
Knight Transportation, Inc.		22,963		758,927
Marten Transport Ltd.		7,461		173,841
PAM Transportation Services, Inc. (a)		846		21,979
Roadrunner Transportation Systems, Inc. (a)		10,373		107,776
Saia, Inc. (a)		8,518		376,070
Swift Transportation Co. (a)		25,829		629,194
Universal Logistics Holdings, Inc.		2,888		47,219
USA Truck, Inc. (a)		2,812		24,493
Werner Enterprises, Inc.		15,028		405,005
YRC Worldwide, Inc. (a)		10,674		141,751
				3,931,142

See Notes to Financial Statements.

58 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (continued) Master Small Cap Index Series

Common Stocks	Shares		Value
Utilities: Electrical — 1.7%
ALLETE, Inc.		16,971	$	1,089,368
Atlantic Power Corp.		40,171		100,428
Avista Corp.		21,594		863,544
Black Hills Corp.		17,625		1,081,117
El Paso Electric Co.		13,712		637,608
Empire District Electric Co.		14,910		508,282
Genie Energy Ltd. (a)		3,302		18,987
IDACORP, Inc.		17,159		1,382,157
MGE Energy, Inc.		12,234		798,880
NorthWestern Corp.		16,818		956,440
NRG Yield, Inc., Class A		12,306		189,020
NRG Yield, Inc., Class C		21,456		339,005
Otter Tail Corp.		12,890		525,912
Pattern Energy Group, Inc.		22,547		428,168
PNM Resources, Inc.		27,967		959,268
Portland General Electric Co.		30,506		1,321,825
Spark Energy, Inc., Class A		1,581		47,904
Unitil Corp.		4,600		208,564
				11,456,477
Utilities: Gas Distributors — 1.0%
Chesapeake Utilities Corp.		5,317		355,973
Delta Natural Gas Co., Inc.		2,148		63,001
New Jersey Resources Corp.		29,241		1,038,056
Northwest Natural Gas Co.		9,428		563,794
South Jersey Industries, Inc.		27,445		924,622
Southwest Gas Corp.		16,093		1,233,046
Spire, Inc.		15,242		983,871
WGL Holdings, Inc.		17,173		1,309,956
				6,472,319
Utilities: Miscellaneous — 0.1%
Ormat Technologies, Inc.		13,220		708,856
Utilities: Telecommunications — 1.1%
8x8, Inc. (a)		29,900		427,570
ATN International, Inc.		3,601		288,548
Boingo Wireless, Inc. (a)		11,830		144,208
Cincinnati Bell, Inc. (a)		14,621		326,779
Cogent Communications Group, Inc.		14,552		601,725
Consolidated Communications Holdings, Inc.		16,727		449,120
Fairpoint Communications, Inc. (a)		6,998		130,863
General Communication, Inc., Class A (a)		9,539		185,534
Globalstar, Inc. (a)		141,259		223,189
GTT Communications, Inc. (a)		9,096		261,510
Hawaiian Telcom Holdco, Inc. (a)		1,864		46,190
IDT Corp., Class B		5,733		106,290
Iridium Communications, Inc. (a)		28,551		274,090
j2 Global, Inc.		16,174		1,323,033
Lumos Networks Corp. (a)		6,219		97,141
NeuStar, Inc., Class A (a)		5,171		172,711
NII Holdings, Inc. (a)		19,047		40,951
ORBCOMM, Inc. (a)		21,223		175,514
Shenandoah Telecommunications Co.		15,717		429,074
Spok Holdings, Inc.		6,730		139,647
Straight Path Communications, Inc., Class B (a)(b)		3,062		103,832
Vonage Holdings Corp. (a)		64,805		443,914

Common Stocks	Shares		Value
Utilities: Telecommunications (continued)
West Corp.		14,893	$	368,751
Windstream Holdings, Inc. (b)		32,787		240,329
				7,000,513
Utilities: Water — 0.3%
American States Water Co.		12,374		563,760
AquaVenture Holdings, Ltd. (a)		2,652		65,054
Artesian Resources Corp., Class A		2,420		77,295
California Water Service Group		16,227		550,095
Connecticut Water Service, Inc.		3,544		197,932
Consolidated Water Co. Ltd.		4,660		50,561
Global Water Resources, Inc. (b)		2,173		19,774
Middlesex Water Co.		5,187		222,730
SJW Corp.		5,562		311,361
York Water Co.		4,206		160,669
				2,219,231
Total Common Stocks — 96.9%				645,829,321
Other Interests — 0.0%	Investment Value     (000)
Gerber Scientific, Inc. (d)	$	13		129
Rights — 0.0%	Shares
Biotechnology — 0.0%
Dyax Corp., CVR, (Expires 12/31/19) (a)		39,009		43,300
Utilities: Telecommunications — 0.0%
Leap Wireless, CVR, (Expires 07/16/18) (a)		28,200		89,535
Total Rights — 0.0%				132,835
Total Long-Term Investments (Cost — $491,379,037) — 96.9%				645,962,285
Short-Term Securities	Shares
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.36% (c)(e)		37,279,916		37,279,916
	Investment Value     (000)
SL Liquidity Series, LLC, Money Market Series, 0.95% (c)(e)(f)	$	8,715		8,715,424
Total Short-Term Securities (Cost $45,994,760) — 6.9%				45,995,340
Total Investments (Cost — $537,373,797) — 103.8%				691,957,625
Liabilities in Excess of Other Assets — (3.8)%				(25,267,618	)
Net Assets — 100.0%			$	666,690,007

Notes to Schedule of Investments

(a) Non-income producing security.

(b) Security, or a portion of security, is on loan.

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 59

Schedule of Investments (continued) Master Small Cap Index Series

(c) During the year ended December 31, 2016, investments in issuers considered to be affiliates of the Series for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares/ Investment Value Held at December 31, 2015		Shares/ Investment Value Purchased			Shares/ Investment Value Sold			Shares/ Investment Value Held at December 31, 2016		Value at December 31, 2016		Income			Realized Gain (Loss)
BlackRock Liquidity Funds, T-Fund, Institutional Class		—		37,279,916	1		—			37,279,916	$	37,279,916	$	18,841		$	207
BlackRock Liquidity Funds, TempFund, Institutional Class		232,669		—			(232,669	)2		—		—		56,505			—
PennyMac Financial Services, Inc.		3,162		—			—			3,162		52,647		—			—
PennyMac Mortgage Investment Trust		15,395		8,050			(804	)		22,641		370,633		38,673			(5,115	)
SL Liquidity Series, LLC, Money Market Series	$	10,324,484		—		$	(1,609,931	)2	$	8,714,553		8,715,424		1,016,450	3		235
Total											$	46,418,620	$	1,130,469		$	(4,673	)
1  Represents net shares purchased.
2  Represents net shares/investment value sold.
3  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

(d) Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

(e) Current yield as of period end.

(f) Security was purchased with the cash collateral from loaned securities.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Contracts Long		Issue	Expiration	Notional Value	Unrealized Depreciation
	265	Russell 2000 E-Mini Index	March 2017	$17,978,925	$	(66,231	)

Derivative Financial Instruments Categorized by Risk Exposure

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

Liabilities — Derivative Financial Instruments			Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts	Net unrealized depreciation	1		—		—	$	66,231		—		—		—	$	66,231

For the year ended December 31, 2016, the effect of derivative financial instruments in the Statement of Operation was as follows:

Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Futures contracts		—		—	$	5,797,384			—		—		—	$	5,797,384
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—	$	(43,878	)		—		—		—	$	(43,878	)
1    Includes cumulative appreciation (depreciation) on futures contract, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	12,056,671

See Notes to Financial Statements.

60 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Schedule of Investments (concluded) Master Small Cap Index Series

For more information about the Series’ 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 investments and derivative financial instruments. For information about the Series’ policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Series’ investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1			Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:1
Common Stocks	$	645,829,321			—	$	—	$	645,829,321
Other Interests		—			—		129		129
Rights		—			—		132,835		132,835
Short-Term Securities		37,279,916			—		—		37,279,916
SubTotal	$	683,109,237			—	$	132,964	$	683,242,201
Investments Valued at NAV2									8,715,424
Total								$	691,957,625
Derivative Financial Instruments 3
Liabilities:
Equity contracts	$	(66,231	)		—		—	$	(66,231	)
1    See above Schedule of Investments for values in each industry.
2    As of December 31, 2016, certain of the Series’ investments were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.
3   Derivative financial instruments are futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

During the year ended December 31, 2016, there were no transfers between levels.

See Notes to Financial Statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 61

Statement of Assets and Liabilities Master Small Cap Index Series

December 31, 2016
Assets
Investments at value — unaffiliated (including securities loaned at value of $8,085,571) (cost — $490,874,426)	$	645,539,005
Investments at value — affiliated (cost — $46,499,371)		46,418,620
Cash pledged for futures contracts		1,804,000
Receivables:
Contributions from investors		9,141,322
Dividends — unaffiliated		785,476
Securities lending income — affiliated		75,686
Dividends — affiliated		18,499
Prepaid expenses		2,269
Total assets		703,784,877
Liabilities
Cash collateral on securities loaned at value		8,714,610
Payables:
Investments purchased		11,032,316
Withdrawals to investors		16,880,056
Other accrued expenses		259,959
Variation margin on futures contracts		190,552
Investment advisory fees		7,804
Directors’ fees		5,495
Other affiliates		4,078
Total liabilities		37,094,870
Net Assets	$	666,690,007
Net Assets Consist of
Investors’ capital	$	512,172,410
Net unrealized appreciation (depreciation)		154,517,597
Net Assets	$	666,690,007

See Notes to Financial Statements.
62	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016

Statement of Operations Master Small Cap Index Series

Year Ended December 31, 2016
Investment Income
Dividends — unaffiliated	$	7,295,061
Securities lending — affiliated — net		1,016,450
Dividends — affiliated		114,019
Interest — unaffiliated		1,367
Foreign taxes withheld		(2,833	)
Total investment income		8,424,064
Expenses
Custodian		119,196
Accounting services		105,167
Professional		55,737
Investment advisory		54,232
Directors		23,855
Pricing		19,532
Printing		14,650
Miscellaneous		4,039
Total expenses		396,408
Less:
Fees waived and/or reimbursed by the Manager		(50,118	)
Fees paid indirectly		(325	)
Total expenses after fees waived and/or reimbursed and paid indirectly		345,965
Net investment income		8,078,099
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		(3,070,434	)
Investments — affiliated		(4,880	)
Futures contracts		5,797,384
Foreign currency transactions		(21	)
Capital gain distributions from investment companies—affiliated		207
		2,722,256
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		108,593,255
Investments — affiliated		41,615
Futures contracts		(43,878	)
Foreign currency translations		19
		108,591,011
Net realized and unrealized gain		111,313,267
Net Increase in Net Assets Resulting from Operations	$	119,391,366

See Notes to Financial Statements.
	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016	63

Statements of Changes in Net Assets Master Small Cap Index Series

	Year Ended December 31,
Increase (Decrease) in Net Assets:	2016			2015
Operations
Net investment income	$	8,078,099		$	11,709,468
Net realized gain		2,722,256			170,580,210
Net change in unrealized appreciation (depreciation)		108,591,011			(219,673,337	)
Net increase (decrease) in net assets resulting from operations		119,391,366			(37,383,659	)
Capital Transactions
Proceeds from contributions		368,640,654			561,488,890
Value of withdrawals		(286,783,928	)		(759,598,222	)
Net increase (decrease) in net assets derived from capital transactions		81,856,726			(198,109,332	)
Net Assets
Total increase (decrease) in net assets		201,248,092			(235,492,991	)
Beginning of year		465,441,915			700,934,906
End of year	$	666,690,007		$	465,441,915

Financial Highlights Master Small Cap Index Series

	Year Ended December 31,
	2016			2015			2014		2013		2012
Total Return
Total return		21.49%			(4.33	)%		5.05%		39.11%		16.52%
Ratios to Average Net Assets
Total expenses		0.07%	1		0.08%			0.09%		0.07%		0.14%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.06%	1		0.07%			0.08%		0.06%		0.08%
Net investment income		1.49%	1		1.39%			1.45%		1.46%		2.13%
Supplemental Data
Net assets, end of year (000)	$	666,690		$	465,442		$	700,935	$	859,398	$	581,771
Portfolio turnover rate		39%			37%			21%		22%		68%

¹  Excludes expenses incurred indirectly of 0.01% as a result of the Series’ investments in underlying funds.

See Notes to Financial Statements.
64	BLACKROCK INDEX FUNDS, INC.	DECEMBER 31, 2016

Notes to Financial Statements Master Small Cap Index Series

1. Organization:

Master Small Cap Index Series (“Master Small Cap Index”) (the “Series”) is a series of Quantitative Master Series LLC (the “Master LLC”) which is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Master LLC is classified as diversified. The Master LLC’s Limited Liability Company Agreement permits the Board of Directors of the Master LLC (the “Board”) to issue non-transferable interests, subject to certain limitations.

The Series, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of open-end funds referred to as the Equity-Liquidity Complex.

2. Significant Accounting Policies:

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Series is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Foreign Currency: The Series’ books and records are maintained in U.S. dollars. Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Series does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Series reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases where the Series enters into certain investments (e.g., futures contracts), that would be treated as “senior securities” for 1940 Act purposes, the Series may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Series may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Series is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.

Recent Accounting Standard: In April 2015, the Financial Accounting Standards Board issued “Disclosures for Investments in Certain Entities that Calculate Net Asset Value (“NAV”) per Share” which eliminates the requirement to categorize investments within the fair value hierarchy when fair value is based on the NAV per share and no quoted market value is available. As of December 31, 2016, certain investments of the Series were valued using NAV per share as no quoted market value is available and have been excluded from the fair value hierarchy.

In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update “Restricted Cash” which will require entities to include the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the beginning and ending cash balances in the Statement of Cash Flows. The guidance will be applied retrospectively and is effective for fiscal years beginning after December 15, 2017, and interim periods within those years. Management is evaluating the impact, if any, of this guidance on the Series’ presentation in the Statement of Cash Flows.

Indemnifications: In the normal course of business, the Series enters into contracts that contain a variety of representations that provide general indemnification. The Series’ maximum exposure under these arrangements is unknown because it involves future potential claims against the Series, which cannot be predicted with any certainty.

Other: Expenses directly related to the Series are charged to the Series. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 65

Notes to Financial Statements (continued) Master Small Cap Index Series

Through May 31, 2016, the Series had an arrangement with its custodian whereby credits were earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. Credits previously earned may have been utilized until December 31, 2016. Under current arrangements effective June 1, 2016, the Series no longer earns credits on uninvested cash, and may incur charges on uninvested cash balances and overdrafts, subject to certain conditions.

3. Investment Valuation and Fair Value Measurements:

Investment Valuation Policies: The Series’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time)(or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end.) U.S. GAAP defines fair value as the price the Series would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Series determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of Series’s assets and liabilities:

• Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price. Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Series’ net assets. Each business day, the Series uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

• Investments in open-end U.S. mutual funds are valued at net asset value (“NAV”) or each business day.

• The Series values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon their pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act.

• Futures contracts traded on exchanges are valued at their last sale price.

• Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the NYSE. Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include Market approach, Income approach and the Cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Series might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement.

The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Series’ pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis. As a result of the inherent uncertainty in valuation of these investments, the fair values may differ from the values that would have been used had an active market existed.

66 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (continued) Master Small Cap Index Series

For investments in equity or debt issued by privately-held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by third party pricing services utilize one or a combination of, but not limited to, the following inputs.

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)   recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii)   recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach	(i)   future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii)   quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)   audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii)   changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by the Series. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Series is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Series could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Series has the ability to access

• Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

• Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Series’ own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued investments. Level 3 investments include equity or debt issued by private companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Series’ policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. Securities and Other Investments:

Securities Lending: The Series may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Series collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Series is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 67

Notes to Financial Statements (continued) Master Small Cap Index Series

least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Series and any additional required collateral is delivered to the Series, or excess collateral returned by the Series, on the next business day. During the term of the loan, the Series is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

The market value of any securities on loan, all of which were classified as common stocks in the Series’ Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value-unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”) if any, is disclosed in the Schedule of Investments.

Securities lending transactions are entered into by the Series under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Series, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Series can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Series’ securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received1			Net Amount
Barclays Capital, Inc.	$	379,353	$	(379,353	)		—
BNP Paribas S.A.		286,997		(286,997	)		—
Citigroup Global Markets, Inc.		207,175		(207,175	)		—
Credit Suisse Securities (USA) LLC.		374,827		(374,827	)		—
Deutsche Bank AG.		1,033,131		(1,033,131	)		—
Goldman Sachs & Co.		1,100,854		(1,100,854	)		—
JP Morgan Securities LLC		219,304		(219,304	)		—
Merrill Lynch, Pierce, Fenner & Smith, Inc.		1,046,587		(1,046,587	)		—
Morgan Stanley		1,507,776		(1,507,776	)		—
National Financial Services LLC		295,537		(295,537	)		—
SG Americas Securities LLC		900,027		(900,027	)		—
UBS Securities LLC		734,003		(734,003	)		—
Total	$	8,085,571	$	(8,085,571	)		—

¹ Cash collateral with a value of $8,714,610 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty is not shown for financial reporting purposes.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Series benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned if the collateral received does not cover the value on the securities loaned in the event of borrower default. The Series could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received.

5. Derivative Financial Instruments:

The Series engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Series and/or to manage its exposure to certain risks such as equity risk. Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: The Series invests in long and/or short positions in futures and options on futures contracts to gain exposure to, or manage exposure to changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk).

Futures contracts are agreements between the Series and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Series is required to deposit initial margin with the

68 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (continued) Master Small Cap Index Series

broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Series agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations 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. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

6. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

Investment Advisory: The Master LLC, on behalf of the Series, entered into an Investment Advisory Agreement with the Manager, the Series’ investment adviser, an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of the Series’ portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Series.

For such services, the Series pays the Manager a monthly fee at an annual rate equal to 0.01% of the average daily value of the Series’ net assets.

Waivers and Reimbursements: With respect to the Series, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Series’ business (“expense limitation”). The current expense limitation as a percentage of average daily net assets is 0.07%. Prior to October 5, 2016, the expense limitation as a percentage of average daily net assets was 0.08%. The Manager has agreed not to reduce or discontinue this contractual expense limitation prior to May 1, 2018, unless approved by the Board, including a majority of the directors who are not “interested persons” of the Series, as defined in the 1940 Act (“Independent Directors”) or by a vote of a majority of the outstanding voting securities of the Series. For the year ended December 31, 2016, the Manager waived $35,656, which is included in fees waived and/or reimbursed by the Manager in the Statement of Operations.

With respect to the Series, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Series pays to the Manager indirectly through its investment in affiliated money market funds. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2016, the amount waived was $14,462.

Effective September 1, 2016, the Manager voluntarily agreed to waive its investment advisory fee with respect to any portion of the Series’ assets invested in equity or fixed-income mutual funds or exchange-traded funds that have a contractual management fee. Prior to September 1, 2016, the Manager did not waive such fees. This voluntary waiver may be reduced or discontinued at any time without notice.

For the year ended December 31, 2016, the Series reimbursed the Manager for certain accounting services, which is included in accounting services in the Statement of Operations. The reimbursement was $6,023.

Securities Lending: The U.S. Securities and Exchange Commission has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Series, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Series is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the Series.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. The Series retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent. Pursuant to a securities lending agreement, BIM may lend securities only when the difference between the borrower rebate rate and the risk free rate exceeds a certain level (such securities, the “specials only securities”).

Pursuant to such agreement, the Series retains 80% of securities lending income. In addition, commencing the business day following the date that the aggregate securities lending income earned across certain funds in the Equity-Liquidity Complex in a calendar year exceeds a specified threshold, the Series, pursuant to the securities lending agreement, will retain for the remainder of the calendar year securities lending income in an amount equal to 85% of securities lending income.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 69

Notes to Financial Statements (continued) Master Small Cap Index Series

The share of securities lending income earned by the Series is shown as securities lending — affiliated – net in the Statement of Operations. For the year ended December 31, 2016, the Series paid BIM the following amounts in total for securities lending agent services and collateral investment fees:

Amounts $ 254,126

Officers and Directors: Certain officers and/or directors of the Master LLC are officers and/or directors of BlackRock or its affiliates.

Other Transactions: The Series may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the year ended December 31, 2016, the purchase and sale transactions and any resulted in net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

Purchases	Sales		Net Realized Gain (Loss)
$33,673,951	$	19,880,873	$	7,272,873

7. Purchases and Sales:

For the year ended December 31, 2016, purchases and sales of investments, excluding short-term securities were $290,533,232 and $208,020,566, respectively.

8. Income Tax Information:

The Series is classified as a partnership for federal income tax purposes. As such, each investor in the Series is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Series. Therefore, no federal income tax provision is required. It is intended that the Series’ assets will be managed so an investor in the Series can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Series files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Series’ U.S. federal tax returns generally remains open for each of the four years ended December 31, 2016. The statutes of limitations on the Series’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Series as of December 31, 2016, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Series’ financial statements.

As of December 31, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	541,983,666
Gross unrealized appreciation	$	181,403,678
Gross unrealized depreciation		(31,429,719	)
Net unrealized appreciation	$	149,973,959

9. Bank Borrowings:

The Master LLC, on behalf of the Series, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.1 billion credit agreement with a group of lenders. Under this agreement, the Series may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Series can borrow up to an aggregate commitment amount of $1.6 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.12% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2017 unless extended or renewed. Prior to April 21, 2016, the credit agreement had a fee per annum of 0.06% on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which, if applicable, are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended December 31, 2016, the Series did not borrow under the credit agreement.

10. Principal Risks:

In the normal course of business, the Series invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer to meet all its obligations, including the ability to pay principal and interest when due (issuer credit risk). The value of securities

70 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Notes to Financial Statements (concluded) Master Small Cap Index Series

held by the Series may decline in response to certain events, including those directly involving the issuers of securities owned by the Series. Changes arising from the general economy, the overall market and local, regional or global political and/or social instability, as well as currency, interest rate and price fluctuations, may also affect the securities’ value.

On October 11, 2016, BlackRock implemented certain changes required by amendments to Rule 2a-7 under the 1940 Act, which governs the operations of U.S. money market funds. The Series may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00 and which may be subject to redemption gates or liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Series may invest in illiquid investments and may experience difficulty in selling those investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Series’ NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Series may lose value, regardless of the individual results of the securities and other instruments in which the Series invests.

The price the Series could receive upon the sale of any particular portfolio investment may differ from the Series’ valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Series’ results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Series, and the Series could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Series’ ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: Similar to issuer credit risk, the Series may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Series manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Series to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Series’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Series.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures there is less counterparty credit risk to the Series since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Series does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Series.

As of period end, the Series’ investments had the following industry classifications:

Industry	Percent of Net Assets
Banks.		11%
Real Estate Investment Trusts		7
Other1		82

¹ All other industries held was less than 5% of net assets.

11. Subsequent Events:

Management has evaluated the impact of all subsequent events on the Series through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 71

Report of Independent Registered Public Accounting Firm Master Small Cap Opinion

To the Board of Directors of Quantitative Master Series LLC and the Investors of Master Small Cap Index Series:

We have audited the accompanying statement of assets and liabilities, including the schedule of investments of Master Small Cap Index Series, one of the series included in the Quantitative Master Series LLC, (the “Series”) as of December 31, 2016, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Series’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Series is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Series’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2016, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Master Small Cap Index Series of Quantitative Master Series LLC, as of December 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP

Boston, Massachusetts

February 23, 2017

72 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Disclosure of Investment Advisory Agreement

At an in-person meeting on May 19, 2016 (the “May 19 Meeting”), the Board of Directors of BlackRock Index Funds, Inc. (the “Corporation”), with respect to BlackRock International Index Fund (the “Fund”), a series of the Corporation, and the Board of Directors of Quantitative Master Series LLC (the “Master LLC”), with respect to Master International Index Series (the “Master Fund”), a series of the Master LLC, approved the conversion of the Fund from a feeder fund that invests its assets into the Master Fund into a stand-alone fund that makes direct investments. In connection with the conversion, the Board of Directors of the Master LLC also approved the termination of the Master Fund.

At the May 19 Meeting, the Board of Directors of the Corporation considered the initial approval of the proposed investment advisory agreement between BlackRock Advisors, LLC (the “Manager”) and the Corporation, on behalf of the Fund (the “Agreement”). The Board of the Corporation was informed that the Agreement was substantively the same as the investment advisory agreement in place at that time between the Manager and the Master LLC with respect to the Master Fund (the “Existing Agreement”).

On the date of the May 19 Meeting, the Board of the Corporation consisted of fifteen individuals, thirteen of whom were not “interested persons” of the Corporation as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). Pursuant to the 1940 Act, the Board of the Corporation is required to consider the initial approval of the Agreement.

The Board of the Master LLC met in person on April 21, 2016 (the “April Meeting”) and on May 18-20, 2016 (the “May Meeting”) to consider the approval of the Existing Agreement on behalf of the Master Fund. Because the Fund was a “feeder” fund that invested all of its investable assets in the Master Fund, the Board of the Corporation also considered the approval of the Existing Agreement with respect to the Master Fund. At the May Meeting, the Board of the Master LLC, including the independent board members, approved the continuation of the Existing Agreement with respect to the Master Fund for a one-year term ending June 30, 2017. The Board of the Corporation, including the Independent Board Members, also considered the continuation of the Existing Agreement with respect to the Master Fund and found the Existing Agreement to be satisfactory.

The materials reviewed and the factors considered by the Board of the Corporation at the May 19 Meeting in connection with approval of the proposed Agreement were substantially the same as the materials reviewed and the factors the Board of the Corporation considered at the April Meeting and the May Meeting with respect to consideration of the approval of the Existing Agreement. A discussion of the basis for the Board of the Master LLC’s approval and the Board of the Corporation’s consideration of the Existing Agreement at the May Meeting is included in the semi-annual shareholder report of the Fund for the period ended June 30, 2016.

Following discussion, at the May 19 Meeting the Board of the Corporation, including the Independent Board Members, approved the Agreement between the Manager and the Corporation with respect to the Fund for a two-year term beginning on the effective date of the Agreement. Based upon its evaluation of all of the aforementioned factors in their totality, the Board of the Corporation, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board of the Corporation did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 73

Officers and Directors¹

Name, Address2 and Year of Birth	Position(s) Held with the Corporation/ Master LLC	Length of Time Served4	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Independent Directors3
Rodney D. Johnson 1941	Chair of the Board and Director	Since 2007	President, Fairmount Capital Advisors, Inc. from 1987 to 2013; Member of the Archdiocesan Investment Committee of the Archdiocese of Philadelphia from 2004 to 2012; Director, The Committee of Seventy (civic) from 2006 to 2012; Director, Fox Chase Cancer Center from 2004 to 2011; Director, The Mainstay (non-profit) since 2016.	26 RICs consisting of 146 Portfolios	None
Susan J. Carter 1956	Director	Since 2016	Director, Pacific Pension Institute since 2014; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business since 1997; Senior Advisor, Commonfund Capital, Inc. (“CCI”) (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest since 2015; Advisory Board Member, Bridges Ventures since 2016; Trustee, Financial Accounting Foundation since 2017.	26 RICs consisting of 146 Portfolios	None
Collette Chilton 1958	Director	Since 2015	Chief Investment Officer, Williams College since 2006; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006.	26 RICs consisting of 146 Portfolios	None
Neil A. Cotty 1954	Director	Since 2016	Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer, from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002.	26 RICs consisting of 146 Portfolios	None
Cynthia A. Montgomery 1952	Director	Since 2007	Professor, Harvard Business School since 1989; Director, McLean Hospital from 2005 to 2012.	26 RICs consisting of 146 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Joseph P. Platt 1947	Director	Since 2007	General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Chair, Basic Health International (non-profit) since 2015.	26 RICs consisting of 146 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company); Consol Energy Inc.
Robert C. Robb, Jr. 1945	Director	Since 2007	Partner, Lewis, Eckert, Robb and Company (management and financial consulting firm) since 1981 and Principal since 2010.	26 RICs consisting of 146 Portfolios	None
Mark Stalnecker 1951	Director	Since 2015	Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee, Winterthur Museum and Country Estate from 2001 to 2015; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System since 2009; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director, SEI Private Trust Co. from 2001 to 2014.	26 RICs consisting of 146 Portfolios	None
Kenneth L. Urish 1951	Director	Since 2007	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since founding in 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	26 RICs consisting of 146 Portfolios	None
Claire A. Walton 1957	Director	Since 2016	Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; General Partner of Neon Liberty Capital Management, LLC since 2003; Director, Boston Hedge Fund Group since 2009; Director, Woodstock Ski Runners since 2013; Director, Massachusetts Council on Economic Education from 2013 to 2015.	26 RICs consisting of 146 Portfolios	None

74 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Officers and Directors¹ (continued)

Name, Address2 and Year of Birth	Position(s) Held with the Corporation/ Master LLC	Length of Time Served4	Principal Occupation(s) During Past Five Years	Number of BlackRock- Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Independent Directors3 (concluded)
Frederick W. Winter 1945	Director	Since 2007	Director, Alkon Corporation since 1992; Dean Emeritus of the Joseph M. Katz School of Business, University of Pittsburgh, Dean and Professor from 1997 to 2005, Professor until 2013.	26 RICs consisting of 146 Portfolios	None
Interested Directors5
Barbara G. Novick 1960	Director	Since 2015	Vice Chairman of BlackRock, Inc. since 2006; Chair of BlackRock’s Government Relations Steering Committee since 2009; Head of the Global Client Group of BlackRock, Inc. from 1988 to 2008.	100 RICs consisting of 220 Portfolios	None
John M. Perlowski 1964	Director, President and Chief Executive Officer	Since 2015 (Director); Since 2010 (President and Chief Executive Officer)	Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Fund & Accounting Services since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Advisory Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009.	128 RICs consisting of 318 Portfolios	None
	1    As of February 23, 2017.
	2    The address of each Director is c/o BlackRock, Inc., 55 East 52nd Street, New York, NY 10055.
	3    Independent Directors serve until their resignation, retirement, removal or death, or until December 31 of the year in which they turn 75. The Board has determined to extend the terms of Independent Directors on a case-by-case basis, as appropriate.
	4    Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. As a result, although the chart shows certain Independent Directors as joining the Board in 2007, those Independent Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Rodney D. Johnson, 1995; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Robert C. Robb, Jr., 1999; Kenneth L. Urish, 1999; and Frederick W. Winter, 1999.
	5    Ms. Novick and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Corporation/Master LLC based on their positions with BlackRock and its affiliates. Mr. Perlowski and Ms. Novick are also board members of certain complexes of BlackRock registered open-end and closed-end funds. Mr. Perlowski is also a board member of the BlackRock Equity-Bond Complex and the BlackRock Closed-End Complex, and Ms. Novick is a board member of the BlackRock Closed-End Complex.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 75

Officers and Directors (concluded)

Name, Address1 and Year of Birth	Position(s) Held with the Corporation/ Master LLC	Length of Time Served as an Officer	Principal Occupation(s) During Past Five Years
Officers Who Are Not Directors2
Thomas Callahan 1968	Vice President	Since 2016	Managing Director of BlackRock, Inc. since 2013; Head of BlackRock’s Global Cash Management Business since 2016; Co-Head of the Global Cash Management Business from 2014 to 2016; Deputy Head of the Global Cash Management Business from 2013 to 2014; Member of the Cash Management Group Executive Committee since 2013; Chief Executive Officer of NYSE Liffe U.S. from 2008 to 2013.
Jennifer McGovern 1977	Vice President	Since 2014	Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group since 2013; Vice President of BlackRock, Inc. from 2008 to 2010.
Neal J. Andrews 1966	Chief Financial Officer	Since 2007	Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.
Jay M. Fife 1970	Treasurer	Since 2007	Managing Director of BlackRock, Inc. since 2007; Director of BlackRock, Inc. in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.
Charles Park 1967	Chief Compliance Officer	Since 2014	Anti-Money Laundering Compliance Officer for the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the Equity-Bond Complex, the Equity-Liquidity Complex and the Closed-End Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Fernanda Piedra 1969	Anti-Money Laundering Compliance Officer	Since 2015	Director of BlackRock, Inc. since 2014; Anti-Money Laundering Compliance Officer and Regional Head of Financial Crime for the Americas at BlackRock, Inc. since 2014; Head of Regulatory Changes and Remediation for the Asset Wealth Management Division of Deutsche Bank from 2010 to 2014; Vice President of Goldman Sachs (Anti-Money Laundering/Suspicious Activities Group) from 2004 to 2010.
Benjamin Archibald 1975	Secretary	Since 2012	Managing Director of BlackRock, Inc. since 2014; Director of BlackRock, Inc. from 2010 to 2013; Secretary of the iShares® exchange traded funds since 2015; Secretary of the BlackRock-advised mutual funds since 2012.
	1    The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, NY 10055.
	2    Officers of the Corporation/Master LLC serve at the pleasure of the Board.
	Further information about the Corporation’s/Master LLC’s Officers and Directors is available in the Fund’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Effective December 31, 2016, David O. Beim and Dr. Matina S. Horner resigned as Directors of the Corporation/Master LLC.

Investment Adviser and Administrator BlackRock Advisors, LLC Wilmington, DE 19809	Accounting Agent and Custodian State Street Bank and Trust Company Boston, MA 02110	Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116	Distributor BlackRock Investments, LLC New York, NY 10022	Address of the Funds 100 Bellevue Parkway Wilmington, DE 19809
	Transfer Agent BNY Mellon Investment Servicing (US) Inc. Wilmington, DE 19809		Legal Counsel Sidley Austin LLP New York, NY 10019

76 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

Additional Information

General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Funds/Series file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’/Series’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room or how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’/Series’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds/Series use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds/Series voted proxies relating to securities held in the Funds’/Series’ portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762; and (2) on the SEC’s website at http://www.sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing. Visit http://www.blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016 77

Additional Information (concluded)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

78 BLACKROCK INDEX FUNDS, INC. DECEMBER 31, 2016

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a Fund unless preceded or accompanied by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

Index2-12/16-AR

Item 2 – Code of Ethics – Each registrant (or “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. Each registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, by calling 1-800-441-7762.

Item 3 – Audit Committee Financial Expert – Each registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial expert serving on its audit committee and (ii) each audit committee financial expert is independent: Kenneth L. Urish

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Funds:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other  Fees3
Entity Name	Current Fiscal Year End	Previous  Fiscal Year End	Current  Fiscal Year End	Previous  Fiscal Year End	Current  Fiscal Year End	Previous  Fiscal Year End	Current  Fiscal Year End	Previous Fiscal Year End
BlackRock International Index Fund of BlackRock Index Funds, Inc.	$7,538	$7,538	$0	$0	$9,282	$9,282	$0	$0
BlackRock Small Cap Index Fund of BlackRock Index Funds, Inc.	$7,538	$7,538	$0	$0	$11,424	$11424	$0	$0
Master Small Cap Index Series of Quantitative Master Series LLC	$30,000	$39,463	$0	$0	$17,340	$17,340	$0	$0

The following table presents fees billed by D&T that were required to be approved by each registrant’s audit committee (each a “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Fund Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0

2

(d) All Other Fees³ $2,129,000 $2,391,000

¹ The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

² The nature of the services includes tax compliance, tax advice and tax planning.

³ Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

    Each Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the registrant’s Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrants which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

    Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the registrant’s Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by either Committee pursuant to the de minimus exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were:

Entity Name	Current Fiscal Year  End	Previous Fiscal Year  End
BlackRock International Index Fund of BlackRock Index Funds, Inc.	$9,282	$9,282
BlackRock Small Cap Index Fund of BlackRock Index Funds, Inc.	$11,424	$11424
Master Small Cap Index Series of Quantitative Master Series LLC	$17,340	$17,340

Additionally, SSAE 16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal years of $2,129,000 and $2,391,000, respectively, were billed by D&T to the Investment Adviser.

3

(h) Each Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 – Audit Committee of Listed Registrants – Not Applicable

Item 6 – Investments

(a) The registrants’ Schedules of Investments are included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) –   The registrants’ principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants’ disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15(d)-15(b) under the Securities Exchange Act of 1934, as amended.

(b) –   There were no changes in the registrants’ internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrants’ internal control over financial reporting.

Item 12 – Exhibits attached hereto

(a)(1) – Code of Ethics – See Item 2

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) –     Certifications – Attached hereto

4

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, each registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Index Funds, Inc. and Quantitative Master Series LLC

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC

Date: March 6, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of each registrant and in the capacities and on the dates indicated.

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC

Date: March 6, 2017

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Index Funds, Inc. and Quantitative Master Series LLC

Date: March 6, 2017

5