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iShares MSCI EAFE ETF (EFA) ETF Analysis

The iShares MSCI EAFE ETF (EFA) provides broad exposure to developed market equities outside of the United States and Canada, tracking the MSCI EAFE Index. With a substantial $77.26 billion in assets under management, EFA is one of the largest funds in its category, offering a diversified portfolio of 675 holdings. Its expense ratio stands at 0.32%, positioning it as a cost-effective option for investors seeking international developed market equity exposure without North American companies.

iShares MSCI EAFE ETF (EFA) ETF — Price, Holdings & Analysis

The iShares MSCI EAFE ETF (EFA) provides broad exposure to developed market equities outside of the United States and Canada, tracking the MSCI EAFE Index. With a substantial $77.26 billion in assets under management, EFA is one of the largest funds in its category, offering a diversified portfolio of 675 holdings. Its expense ratio stands at 0.32%, positioning it as a cost-effective option for investors seeking international developed market equity exposure without North American companies.

ETF Overview

This exchange-traded fund aims to mirror the financial returns of a specific benchmark. This index includes shares from major and mid-sized corporations operating in economically advanced nations, with the deliberate exclusion of those headquartered in the United States and Canada.
The iShares MSCI EAFE ETF (EFA) is designed to replicate the performance of the MSCI EAFE Index, which encompasses large and mid-capitalization companies across developed markets, specifically excluding those based in the United States and Canada. This strategy offers investors targeted exposure to established economies in Europe, Australasia, and the Far East. As of 2026-06-30, the fund holds 675 distinct securities, providing significant diversification within its mandate. Its top holdings reflect this international focus, with companies like ASML HOLDING NV (3.25%), HSBC HOLDINGS PLC (1.50%), and ROCHE PS PAR AG (1.36%) representing key positions. The ETF's sector allocation is heavily weighted towards Financial Services at 24.7%, followed by Industrials at 18.6% and Technology at 12.9%, indicating a focus on mature industries and a significant portion of the global economy. Geographically, Japan constitutes the largest country exposure at 23.7%, with the United Kingdom (13.6%) and Switzerland (10.2%) also holding substantial allocations. This structure makes EFA suitable for investors aiming to diversify their portfolios beyond North America into a basket of developed international equities, seeking growth and income opportunities from established global companies.

Risk Metrics

Investing in the iShares MSCI EAFE ETF (EFA) involves specific considerations related to its underlying market exposure and operational structure. The fund's 3-year Beta of 0.87 suggests it has historically exhibited lower volatility compared to the broader market, which could appeal to investors seeking a more stable international equity component. However, its significant allocation to Financial Services (24.7%) and Industrials (18.6%) introduces sector-specific risks, as these industries can be sensitive to economic cycles and interest rate fluctuations. While EFA holds 675 securities, its top holding, ASML HOLDING NV, accounts for 3.25% of the portfolio, indicating a moderate level of individual stock concentration. Furthermore, the fund's substantial exposure to Japan (23.7%), the United Kingdom (13.6%), and Switzerland (10.2%) means that economic or political developments in these specific countries could disproportionately impact the ETF's performance. The expense ratio of 0.32% represents a recurring cost that will incrementally reduce returns over time, a factor to consider in long-term investment planning. Past performance does not guarantee future results, and the inherent risks of international equity investing, such as currency fluctuations and geopolitical events, remain relevant.

Expense Ratio

0.32%

Top Holdings

Sector Allocation

  • Financial Services: 24.7%
  • Industrials: 18.6%
  • Technology: 12.9%
  • Healthcare: 10.4%
  • Consumer Cyclical: 7.2%
  • Consumer Defensive: 6.7%
  • Basic Materials: 5.9%
  • Communication Services: 4.4%
  • Utilities: 3.7%
  • Energy: 3.3%
  • Real Estate: 1.6%
  • Cash & Others: 0.6%
  • Japan: 23.7%
  • United Kingdom: 13.6%
  • Switzerland: 10.2%
  • France: 8.9%
  • Germany: 8.6%
  • Netherlands: 6.9%
  • Australia: 6.5%
  • Spain: 3.8%
  • Sweden: 3.3%
  • Italy: 3.2%

Dividend Yield

1.72%

Risk Metrics

  • Beta: 0.87

Questions & Answers

What is EFA and what does it track?

The iShares MSCI EAFE ETF (EFA) is an exchange-traded fund that aims to replicate the investment results of the MSCI EAFE Index. This benchmark is composed of large and mid-capitalization companies located in developed markets around the world, specifically excluding those based in the United States and Canada. As of 2026-06-30, EFA provides exposure to 675 holdings across various sectors and countries, with significant allocations to Japan, the United Kingdom, and Switzerland. Its strategy is designed for investors seeking diversified equity exposure to established international economies.

What is the expense ratio for EFA?

The iShares MSCI EAFE ETF (EFA) has an expense ratio of 0.32%. This figure represents the annual fee charged by the fund to cover its operational costs. When compared to the category average for international developed market equity ETFs, which often hovers around 0.44%, EFA's expense ratio is notably lower. This competitive fee structure means that a smaller portion of an investor's returns is eroded by costs over time, making EFA a cost-efficient option for gaining broad exposure to non-North American developed markets.

What are the top holdings in EFA?

As of 2026-06-30, the iShares MSCI EAFE ETF (EFA) holds a diversified portfolio of 675 companies. Its top holdings include prominent international corporations. The largest allocation is to ASML HOLDING NV, representing 3.25% of the fund. Following this, HSBC HOLDINGS PLC accounts for 1.50% of the portfolio, while ROCHE PS PAR AG makes up 1.36%. Other significant holdings include NOVARTIS AG at 1.33% and ASTRAZENECA PLC, also at 1.33%. These top positions highlight the fund's focus on established companies across various sectors in developed international markets.

Is EFA a good long-term investment?

The iShares MSCI EAFE ETF (EFA) offers broad, diversified exposure to developed international equity markets, excluding the U.S. and Canada, which can be a valuable component of a long-term investment strategy. With an inception date of August 14, 2001, the fund has a substantial track record through various market cycles. Its 3-year Beta of 0.87 suggests it has historically exhibited lower volatility than the overall market. However, like all investments, EFA carries inherent risks, including market fluctuations, currency risk, and geopolitical events impacting its underlying countries and sectors. their may be worth researching individual financial goals and risk tolerance when evaluating EFA for long-term portfolio inclusion. Past performance does not guarantee future results.

How does EFA compare to similar ETFs?

The iShares MSCI EAFE ETF (EFA) stands as a prominent option within the international developed market equity ETF category. Its substantial assets under management of $77.26 billion make it one of the largest and most liquid funds in this space, often a key consideration for institutional and large retail investors. With an expense ratio of 0.32%, EFA is competitively priced, often lower than many peers that track similar international indices. Its strategy specifically excludes U.S. and Canadian equities, differentiating it from global equity funds and making it a pure play on developed markets in Europe, Australasia, and the Far East. This focused geographic mandate and large scale are key comparative advantages.

Does EFA pay dividends?

Yes, the iShares MSCI EAFE ETF (EFA) does pay dividends. As of 2026-06-30, the fund has a dividend yield of 1.72%. This yield is derived from the dividends paid by the underlying companies within the MSCI EAFE Index, which are then passed on to EFA shareholders. The dividend income can be a component of the overall return for investors, particularly those seeking income generation from their international equity exposure. However, dividend yields can fluctuate based on the performance of the underlying holdings and market conditions.