description iShares Core MSCI EAFE ETF (IEFA) Overview
IEFA offers exposure to developed markets outside of North America, including Europe, Australasia, and the Far East. It provides a geographically diversified portfolio, reducing reliance on the U.S.
economy. The ETF's low expense ratio and broad coverage make it a popular choice for investors seeking international exposure. IEFA is a solid option for those aiming to balance their portfolio with global assets.
help iShares Core MSCI EAFE ETF (IEFA) FAQ
What index does IEFA track?
IEFA is the iShares Core MSCI EAFE ETF, and it is built to track the MSCI EAFE Investable Market Index. That index covers developed markets in Europe, Australasia, and the Far East, while excluding the United States and Canada.
Does IEFA include emerging markets like China or India?
No, IEFA is a developed-markets ETF, so it is not a broad total international fund. Investors who want emerging-market exposure often pair it with an ETF such as IEMG or Vanguard's VWO.
How is IEFA different from iShares EFA?
Both target developed markets outside North America, but IEFA is the lower-cost core version and includes broader large-, mid-, and small-cap exposure through the MSCI EAFE IMI. EFA is the older, more heavily traded fund, but it has historically had a higher expense ratio.
Why do US investors use IEFA with an S&P 500 or total US fund?
IEFA adds non-US developed-market stocks, including companies from Japan, the United Kingdom, France, Switzerland, and Australia. That can reduce single-country dependence when paired with a US fund such as VTI, ITOT, or an S&P 500 ETF.
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