Average Daily Volume
16.45M
Fund Overview
The iShares MSCI EAFE ETF (EFA) is designed to track the investment results of the MSCI EAFE Index, which represents the performance of large- and mid-cap equities across developed markets outside of the U.S. and Canada. The fund provides exposure to companies in Europe, Australasia, and the Far East, offering investors a way to diversify their portfolios internationally. EFA is one of the largest and most liquid international equity ETFs, making it a popular choice for investors seeking broad exposure to developed international markets. The fund holds a diversified basket of stocks across various sectors, including financials, healthcare, industrials, and consumer discretionary, reflecting the composition of the underlying index.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 2.33 %
- Currency Hedged
-
No
- Portfolio Turnover
-
3 %
- Dividend Date
-
Why Invest in the EFA ETF?
Potential Benefits
- Provides diversified exposure to developed international markets outside the U.S. and Canada.
- Offers liquidity and low expense ratios compared to actively managed international funds.
- Tracks a well-established and widely followed benchmark, the MSCI EAFE Index.
- Helps mitigate country-specific risks through broad geographic diversification.
- Suitable for long-term investors seeking international equity exposure.
Potential Risks
- Exposed to currency fluctuations, as the fund holds non-U.S. denominated assets.
- Sensitive to economic and political risks in the regions it covers (Europe, Australasia, Far East).
- May underperform U.S. equities during periods of dollar strength or U.S. market outperformance.
- Higher expense ratio compared to some competing international ETFs.
- Limited exposure to emerging markets, which may offer higher growth potential.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+4.9%
|
+4.6%
|
-7.8%
|
+5.3%
|
+2.4%
|
+0.7%
|
+1.6%
|
+1.8%
|
-3.3%
|
+0.1%
|
-
|
-
|
| 2025 |
+4.8%
|
+3.0%
|
+0.2%
|
+3.7%
|
+4.8%
|
+2.4%
|
-2.1%
|
+4.5%
|
+2.1%
|
+1.2%
|
+0.7%
|
+2.7%
|
| 2024 |
-0.5%
|
+3.0%
|
+3.4%
|
-3.2%
|
+5.1%
|
-1.8%
|
+2.6%
|
+3.3%
|
+0.8%
|
-5.3%
|
-0.3%
|
-2.9%
|
| 2023 |
+9.0%
|
-3.1%
|
+3.1%
|
+2.9%
|
-4.0%
|
+4.5%
|
+2.7%
|
-3.9%
|
-3.6%
|
-2.9%
|
+8.2%
|
+5.4%
|
| 2022 |
-3.6%
|
-3.4%
|
+0.5%
|
-6.7%
|
+2.0%
|
-8.7%
|
+5.2%
|
-6.1%
|
-9.2%
|
+5.9%
|
+13.2%
|
-1.8%
|
| 2021 |
-0.8%
|
+2.2%
|
+2.5%
|
+3.0%
|
+3.5%
|
-1.1%
|
+0.8%
|
+1.4%
|
-3.3%
|
+3.2%
|
-4.5%
|
+4.4%
|
| 2020 |
-2.8%
|
-7.8%
|
-14.1%
|
+5.8%
|
+5.4%
|
+3.5%
|
+1.9%
|
+4.7%
|
-2.0%
|
-3.6%
|
+14.3%
|
+5.0%
|
| 2019 |
+6.6%
|
+2.5%
|
+0.9%
|
+2.9%
|
-5.0%
|
+5.9%
|
-1.9%
|
-1.9%
|
+3.2%
|
+3.4%
|
+1.1%
|
+3.0%
|
| 2018 |
+5.0%
|
-4.8%
|
-0.8%
|
+1.5%
|
-1.9%
|
-1.6%
|
+2.9%
|
-2.2%
|
+1.0%
|
-8.1%
|
+0.5%
|
-5.4%
|
| 2017 |
+3.3%
|
+1.2%
|
+3.2%
|
+2.4%
|
+3.5%
|
+0.3%
|
+2.7%
|
0.0%
|
+2.4%
|
+1.7%
|
+0.7%
|
+1.4%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
RACE
|
FERRARI NV |
0.3 % |
|
ALC
|
ALCON INC |
0.3 % |
|
SE
|
SEA LTD ADR |
0.2 % |
|
WDS
|
WOODSIDE ENERGY GROUP LTD |
0.1 % |
|
CHKP
|
CHECK POINT SOFTWARE TECHNOLOGIES LTD |
0.1 % |
|
TEF
|
TELEFONICA SA |
0.1 % |
|
AER
|
AERCAP HOLDINGS NV |
0.1 % |
|
CCEP
|
COCA-COLA EUROPACIFIC PARTNERS PLC |
0.1 % |
|
TEVA
|
TEVA PHARMACEUTICAL INDUSTRIES LTD ADR |
0.1 % |
|
CYBR
|
CYBERARK SOFTWARE LTD |
0.1 % |
Top 10 holdings shown, out of 697 total holdings.
Related ETFs: EFA vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
EFA tracks the MSCI EAFE Index, a market-cap-weighted benchmark comprising large- and mid-cap stocks from developed markets outside North America. The index methodology emphasizes free-float-adjusted market capitalization, ensuring investability and liquidity. The fund holds physical securities to replicate the index, with quarterly rebalancing to align with index changes. Sector allocations reflect the underlying market composition, with financials, healthcare, and industrials typically representing significant weights. EFA's passive approach aims to deliver returns closely matching its benchmark before fees.
Frequently Asked Questions
What countries does EFA cover?
EFA provides exposure to developed markets in Europe (e.g., UK, France, Germany), Australasia (Australia, New Zealand), and the Far East (Japan, Hong Kong, Singapore).
How often does EFA pay dividends?
EFA typically distributes dividends quarterly, reflecting the dividend payments from its underlying international holdings.
Does EFA hedge currency risk?
No, EFA does not hedge currency exposure, so its returns are affected by fluctuations in foreign exchange rates between local currencies and the U.S. dollar.
What is EFA's expense ratio?
As of 2025, EFA's expense ratio is 0.32%, which is competitive among broad international equity ETFs but higher than some newer alternatives.
How does EFA differ from emerging markets ETFs?
EFA focuses exclusively on developed markets, which tend to have more stable economies and political systems compared to emerging markets. Emerging markets ETFs typically offer higher growth potential but come with greater volatility and risk.
Industry Overview
The iShares MSCI EAFE ETF (EFA) provides exposure to developed international markets, a key segment for investors seeking geographic diversification beyond U.S. equities. Investing in developed markets offers access to mature economies with established regulatory frameworks and stable political environments, though growth rates may be slower than in emerging markets. EFA's focus on Europe, Australasia, and the Far East captures a mix of cyclical and defensive sectors, making it a core holding for many globally diversified portfolios. The fund's broad market coverage helps reduce single-country risk while providing exposure to multinational corporations with global revenue streams.
Alternative Comparison
Compared to VEA (Vanguard FTSE Developed Markets ETF), EFA has a slightly higher expense ratio but offers similar broad international exposure. EFA's MSCI EAFE Index excludes Canada and South Korea, while VEA's FTSE benchmark includes them. IEFA (iShares Core MSCI EAFE ETF) is a lower-cost alternative from the same issuer, tracking a similar but broader index that includes small-cap stocks. For investors seeking more targeted exposure, single-country ETFs like EWU (U.K.) or EWJ (Japan) offer concentrated bets within EFA's geographic scope.
Issuer Overview
iShares, a division of BlackRock, is the world's largest ETF provider with a reputation for offering low-cost, transparent, and liquid investment products. The firm's extensive resources and expertise in index-tracking ETFs make it a trusted choice for investors. iShares' global reach and robust infrastructure ensure efficient management of international ETFs like EFA.
Conclusion
EFA remains a cornerstone ETF for investors seeking diversified exposure to developed international markets. Its liquidity, established track record, and broad market coverage make it a practical choice for core international equity allocations. While newer, lower-cost alternatives exist, EFA's size and trading volume continue to attract institutional and individual investors alike. As with any international investment, investors should consider currency risks and their overall portfolio objectives when evaluating EFA.
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