 The
iShares MSCI EAFE ETF (EFA) is an exchange-traded fund that seeks to
track the investment results of the MSCI EAFE Index, which is composed
of large and mid-cap stocks across 21 developed markets, excluding the
US and Canada. The fund was launched in August 2001 and has over $84
billion in assets under management as of March 2023.
EFA's
portfolio is diversified across various sectors, including financials,
industrials, consumer discretionary, and healthcare, among others. Its
top holdings include Nestle SA, Roche Holdings AG, and Samsung
Electronics Co Ltd. The fund's expense ratio is 0.32%, which is
relatively low compared to similar ETFs.
Investors can use EFA
to gain exposure to non-US developed markets in a cost-effective way.
The fund's underlying index is widely used as a benchmark for
international equity performance. However, investors should be aware
that investing in foreign markets comes with risks, including currency
fluctuations, political instability, and differences in accounting
standards and regulations.
Overall, EFA can be a useful tool
for investors looking to diversify their portfolios beyond the US
market, while still maintaining a relatively low expense ratio.
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