The iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA) is designed to track the investment results of the MSCI EAFE Adaptive Hedge to USD Index, offering exposure to international equities while dynamically hedging against U.S. dollar fluctuations. With an AUM of $0.01 billion and an expense ratio of 0.35%, DEFA aims to provide investors with a potentially less volatile international equity investment. The fund's adaptive hedging strategy seeks to mitigate the impact of currency movements on returns, differentiating it from non-hedged international equity ETFs. Past performance does not guarantee future results.
The iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA) is designed to track the investment results of the MSCI EAFE Adaptive Hedge to USD Index, offering exposure to international equities while dynamically hedging against U.S. dollar fluctuations. With an AUM of $0.01 billion and an expense ratio of 0.35%, DEFA aims to provide investors with a potentially less volatile international equity investment. The fund's adaptive hedging strategy seeks to mitigate the impact of currency movements on returns, differentiating it from non-hedged international equity ETFs. Past performance does not guarantee future results.
ETF Overview
The investment seeks to track the investment results of the MSCI EAFE Adaptive Hedge to USD Index. The fund generally will invest at least 80% of its assets in the component securities and other instruments of the index and in investments that have economic characteristics that are substantially identical to the component securities of the index. The index is an equity benchmark for international stock performance with the foreign currency exposure of the securities included in the underlying index dynamically hedged against the U.S. dollar.
DEFA aims to replicate the MSCI EAFE Adaptive Hedge to USD Index, providing exposure to developed market equities, excluding the U.S. and Canada, while mitigating currency risk. The fund invests at least 80% of its assets in the component securities of the index. By adaptively hedging its currency exposure, DEFA seeks to reduce the impact of fluctuations between the U.S. dollar and the currencies of the underlying securities. This approach can be attractive to investors seeking international equity exposure without the full volatility associated with currency movements. The ETF's top holdings include Nestle SA (2.12%), ASML Holding NV (1.85%), and Roche Holding AG (1.58%). Sector allocations are diverse, with significant exposure to Financial Services (16.7%), Industrials (15.1%), and Healthcare (13.0%). DEFA may be suitable for investors looking for international diversification with a focus on currency risk management. Past performance does not guarantee future results.
Risk Metrics
DEFA's risk profile is influenced by its international equity exposure and currency hedging strategy. While the adaptive hedging aims to reduce currency risk, it does not eliminate it entirely, and the hedging process itself can introduce complexities and costs. The fund's beta of 0.91 (3Y) suggests it is slightly less volatile than the broader market. Sector concentration, with approximately 16.7% in Financial Services and 15.1% in Industrials, could expose the fund to sector-specific risks. The expense ratio of 0.35% will create a drag on performance over time. The fund's relatively small AUM of $0.01 billion could impact liquidity and trading costs. Investors should carefully consider these factors when assessing DEFA's suitability for their portfolios. Past performance does not guarantee future results.
The iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA) seeks to track the investment results of the MSCI EAFE Adaptive Hedge to USD Index. This index is designed to represent the performance of developed market equities, excluding the U.S. and Canada, while dynamically hedging the currency exposure back to the U.S. dollar. The fund invests primarily in the component securities of the index, aiming to provide investors with international equity exposure while mitigating the impact of currency fluctuations on returns. The adaptive hedging strategy adjusts the hedge ratio based on market conditions, seeking to optimize currency risk management. As of 2026-03-15, DEFA's top holdings include Nestle SA, ASML Holding NV, and Roche Holding AG.
What is the expense ratio for DEFA?
The expense ratio for the iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA) is 0.35%. This means that for every $10,000 invested in the fund, investors will pay $35 in annual expenses to cover the costs of managing the ETF. While 0.35% is the stated expense ratio, investors should also consider brokerage commissions and other trading costs when evaluating the overall cost of investing in DEFA. This expense ratio is relatively competitive within the currency-hedged international equity ETF category.
What are the top holdings in DEFA?
As of 2026-03-15, the top holdings in the iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA) are: Nestle SA (2.12%), ASML Holding NV (1.85%), Roche Holding AG (1.58%), LVMH Moet Hennessy Louis Vuitton SE (1.29%), and Novartis AG (1.20%). These holdings represent a significant portion of the fund's overall portfolio and reflect its exposure to large-cap companies in developed markets outside of the United States and Canada. Investors should review the complete list of holdings periodically, as they may change over time due to index rebalancing and market fluctuations.
Is DEFA a good long-term investment?
Whether DEFA is a suitable long-term investment depends on an individual investor's specific financial goals, risk tolerance, and investment horizon. DEFA offers exposure to international equities with a currency hedging strategy, which may be attractive to investors seeking to mitigate currency risk. The fund's expense ratio of 0.35% should be considered as a factor impacting long-term returns. With a 3-year beta of 0.91, DEFA has demonstrated slightly less volatility than the broader market. Investors should carefully evaluate DEFA's investment strategy, holdings, and risk profile in the context of their overall portfolio before making any investment decisions. Past performance does not guarantee future results.
How does DEFA compare to similar ETFs?
DEFA differentiates itself through its adaptive currency hedging strategy, which aims to dynamically adjust the hedge ratio based on market conditions. Other currency-hedged international equity ETFs may employ different hedging strategies or track different indices. DEFA's expense ratio of 0.35% is a key factor to compare against similar ETFs, as lower expenses can lead to higher net returns over time. The fund's AUM of $0.01 billion may be smaller than some of its competitors, which could impact liquidity and trading costs. Investors should carefully compare the investment strategies, expense ratios, and performance of DEFA and other similar ETFs to determine which fund best aligns with their investment objectives.
Does DEFA pay dividends?
Yes, the iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA) distributes dividends. As of 2026-03-15, DEFA has a dividend yield of 2.23%. The dividend yield represents the annual dividend income an investor can expect to receive as a percentage of the fund's share price. Dividend payments can vary over time depending on the performance of the underlying securities and the fund's distribution policy. Investors seeking income may find DEFA's dividend yield attractive, but should also consider the fund's overall investment strategy and risk profile.