Stock Expert AI

iShares MSCI EAFE ETF (EFA) ETF Analysis

The iShares MSCI EAFE ETF (EFA) is a large-cap equity ETF with $69.36 billion in assets under management. It tracks the MSCI EAFE Index, providing exposure to large- and mid-cap developed market equities, excluding the U.S. and Canada. With an expense ratio of 0.32%, EFA offers a relatively cost-effective way to access a diversified portfolio of international stocks, with a focus on developed markets in Europe and Asia.

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

The iShares MSCI EAFE ETF (EFA) is a large-cap equity ETF with $69.36 billion in assets under management. It tracks the MSCI EAFE Index, providing exposure to large- and mid-cap developed market equities, excluding the U.S. and Canada. With an expense ratio of 0.32%, EFA offers a relatively cost-effective way to access a diversified portfolio of international stocks, with a focus on developed markets in Europe and Asia.

ETF Overview

The iShares MSCI EAFE ETF seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada.
The iShares MSCI EAFE ETF (EFA) aims to replicate the investment results of the MSCI EAFE Index, offering investors exposure to a broad range of developed market equities outside of the U.S. and Canada. This ETF is designed for investors seeking diversification beyond North American markets and looking to participate in the growth of developed economies in Europe and Asia. EFA's portfolio comprises 691 holdings, with significant allocations to Financial Services (23.3%), Industrials (19.3%), and Healthcare (11.6%) sectors. Top holdings include companies like ASML Holding NV (2.50%), Roche Holding AG (1.48%), and AstraZeneca PLC (1.43%). By focusing on developed markets, EFA provides a different risk/return profile compared to emerging market ETFs. The fund's country exposure is heavily weighted towards Japan (23.1%), the United Kingdom (14.4%), France (10.0%), Switzerland (9.8%), and Germany (8.8%).

Risk Metrics

EFA's risk profile is influenced by its geographic and sector concentrations. The fund's significant allocation to Financial Services (23.3%) and Industrials (19.3%) makes it susceptible to sector-specific downturns. Country concentration, with 23.1% in Japan and 14.4% in the United Kingdom, also introduces geographic risk. With a beta of 1.01, EFA's volatility is similar to the broader market. The expense ratio of 0.32% will create a slight drag on performance over time, but is relatively competitive. Investors should be aware that international investing involves currency risk and potential political instability in the countries represented in the index. Past performance does not guarantee future results.

Expense Ratio

0.32%

Top Holdings

Sector Allocation

  • Financial Services: 23.3%
  • Industrials: 19.3%
  • Healthcare: 11.6%
  • Technology: 10.3%
  • Consumer Cyclical: 7.6%
  • Consumer Defensive: 7.3%
  • Basic Materials: 5.6%
  • Energy: 4.4%
  • Communication Services: 4.1%
  • Utilities: 3.8%
  • Real Estate: 1.9%
  • Cash & Others: 0.8%
  • Japan: 23.1%
  • United Kingdom: 14.4%
  • France: 10.0%
  • Switzerland: 9.8%
  • Germany: 8.8%
  • Australia: 6.4%
  • Netherlands: 6.0%
  • Sweden: 3.1%
  • Italy: 3.0%
  • Spain: 2.9%

Dividend Yield

1.88%
  • <a href="/etf/rwde">Direxion MSCI Developed Over Emerging Markets ETF (RWDE)</a> — 0.53% expense ratio
  • <a href="/etf/fine">Themes European Luxury ETF (FINE)</a> — 0.35% expense ratio
  • <a href="/etf/mj">Amplify Alternative Harvest ETF (MJ)</a> — 0.75% expense ratio
  • <a href="/etf/defa">iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA)</a> — 0.35% expense ratio
  • <a href="/etf/psmm">Invesco Moderately Conservative Multi-Asset Allocation ETF (PSMM)</a> — 0.35% expense ratio
  • <a href="/etf/gxg">Global X - MSCI Colombia ETF (GXG)</a> — 0.62% expense ratio
  • <a href="/etf/omfs">Invesco Russell 2000 Dynamic Multifactor ETF (OMFS)</a> — 0.39% expense ratio
  • <a href="/etf/xhb">State Street SPDR S&P Homebuilders ETF (XHB)</a> — 0.35% expense ratio
  • <a href="/etf/defa">iShares Adaptive Currency Hedged MSCI EAFE ETF (DEFA)</a> (Equity) — 0.35% ER
  • <a href="/etf/uae">iShares MSCI UAE ETF (UAE)</a> (Equity) — 0.59% ER
  • <a href="/etf/amca">iShares Russell 1000 Pure U.S. Revenue ETF (AMCA)</a> (Equity) — 0.15% ER
  • <a href="/etf/iblc">iShares Blockchain and Tech ETF (IBLC)</a> (Equity) — 0.47% ER
  • <a href="/etf/irtr">iShares LifePath Retirement ETF (IRTR)</a> (Multi-Asset) — 0.08% ER
  • <a href="/etf/jkk">iShares Morningstar Small-Cap Growth ETF (JKK)</a> (Equity) — 0.06% ER

Risk Metrics

  • Beta: 1.01

Questions & Answers

What is EFA and what does it track?

The iShares MSCI EAFE ETF (EFA) is an exchange-traded fund designed to track the investment results of the MSCI EAFE Index. This index is composed of large- and mid-capitalization equities from developed markets, excluding the United States and Canada. EFA provides investors with a convenient way to gain exposure to a diversified portfolio of international stocks, with its top holdings including companies like ASML Holding NV, Roche Holding AG, and AstraZeneca PLC. As of March 31, 2026, EFA has $69.36 billion in assets under management and holds 691 different stocks.

What is the expense ratio for EFA?

The expense ratio for the iShares MSCI EAFE ETF (EFA) is 0.32%. This means that for every $10,000 invested in the fund, investors will pay $32 in annual fees. While this is not the lowest expense ratio available in the equity ETF category, it is still relatively competitive. The category average expense ratio is 0.44%, making EFA a slightly more cost-effective option than some of its peers.

What are the top holdings in EFA?

As of March 31, 2026, the top holdings in the iShares MSCI EAFE ETF (EFA) are: ASML Holding NV (2.50%), Roche Holding AG (1.48%), AstraZeneca PLC (1.43%), Novartis AG Registered Shares (1.43%), and HSBC Holdings PLC (1.43%). These companies represent a significant portion of the fund's overall portfolio and reflect the fund's focus on developed market equities in Europe and Asia. The fund's diversification strategy helps to mitigate risk, but the performance of these top holdings can have a notable impact on the fund's overall returns.

Is EFA a good long-term investment?

Whether EFA is a good long-term investment depends on an individual's investment goals and risk tolerance. EFA offers exposure to developed international markets, which can provide diversification benefits. The fund's expense ratio of 0.32% is reasonable, and its dividend yield of 1.88% provides some income. However, the may be worth researching potential risks associated with international investing, such as currency fluctuations and political instability. Past performance does not guarantee future results.

How does EFA compare to similar ETFs?

EFA is a popular ETF that tracks the MSCI EAFE Index, but there are other similar ETFs available. For example, the Vanguard FTSE Developed Markets ETF (VEA) also provides exposure to developed markets outside of the U.S. & Canada. EFA has an expense ratio of 0.32% and AUM of $69.36B, while other similar ETFs may have slightly different expense ratios or tracking methodologies. Investors should compare the expense ratios, tracking error, and liquidity of different ETFs before making an investment decision.

Does EFA pay dividends?

Yes, the iShares MSCI EAFE ETF (EFA) does pay dividends. As of March 31, 2026, the fund has a dividend yield of 1.88%. This means that investors can expect to receive approximately 1.88% of their investment in the form of dividend payments annually. The dividend yield can fluctuate based on the performance of the underlying holdings and the fund's distribution policy.