The iShares Core MSCI EAFE ETF holds $169.6 billion in assets, offering broad developed-market exposure but trailing U.S. benchmarks due to low tech weighting.
The iShares Core MSCI EAFE ETF (IEFA) has amassed $169.6 billion in net assets, charging a 0.07% fee to track 2,590 stocks across Japan, the U.K., France, and Switzerland. The fund yields 3.4% and returned 19% over the past year but underperforms the S&P 500 over five and ten-year periods.
IEFA’s structural underweight in technology (8.4% vs. over 30% in U.S. indexes) and unhedged currency exposure limit its relative performance. The fund is widely used by U.S. investors to diversify beyond domestic equities, though its returns depend on strength in European and Japanese markets and the euro/yen.
With a 0.07% expense ratio, IEFA remains a low-cost option for international developed-market exposure, contrasting with actively managed funds that typically charge ten times more.