IEFA: International Stocks To Benefit From Higher GDP Growth In 2026
The iShares Core MSCI EAFE ETF invests in developed markets outside the U.S. and Canada, principally Japan, the United Kingdom, France and Germany. IEFA has outperformed the S&P 500 so far in 2025, benefiting from low starting valuations and a weak U.S. dollar. Looking ahead to 2026, I estimate that GDP growth in countries where IEFA invests should accelerate to 1.23%, up from 1.01% in 2025.
Add Some Income to a Hot Trade
One of the top-of-mind themes for advisors and investors in 2025 has been the resurgence of international equities. As of October 10, the widely followed MSCI EAFE Index was higher by 24.1% since the start of the year.
IEFA: Low Starting Valuations Offset Weak Growth Outlook
The iShares Core MSCI EAFE ETF invests in developed market equities outside the United States and Canada. I estimate countries in which IEFA invests will only deliver 1% GDP growth in 2025, 0.4% weaker than the United States. Even so, compared with the SPY, IEFA offers a more attractive earnings and dividend yield, more than offsetting weaker future growth.
The Best ETF to Buy After the S&P 500's Record Close
Got the itch to dive headfirst back into the stock market? It would be understandable if you did.
Final Trades: Nvidia, Taiwan Semi, Amazon and the IEFA
The Investment Committee give you their top stocks to watch for the second half.
21% of Warren Buffett's "Secret" Portfolio Is Invested in These 3 ETFs. Are They Great Picks for 2025?
Does Warren Buffett have a secret portfolio? Sort of. The holdings you see listed in Berkshire Hathaway's regulatory filings aren't the only ones attached to the legendary investor.
iShares Core MSCI EAFE ETF: Your Gateway to International Markets
Wall Street often tells investors that diversification is important, but what's the best way to start investing outside the U.S. market?
IEFA: Unveiling The Diversification Illusion And The Prestige That Brings It Back
iShares Core MSCI EAFE ETF (IEFA) is recommended as a "sell" due to sub-par diversification, historical underperformance, and macroeconomic headwinds. An equity market-neutral strategy, shorting IEFA and going long SPY, offers potential for generating alpha while mitigating market risk. IEFA's high correlation with U.S. equities undermines its effectiveness as a portfolio diversifier, despite its intra-fund diversification.
IEFA: International Developed Equities Offer A Healthy IRR But May Not Outperform
iShares Core MSCI EAFE ETF offers diversified exposure to developed markets outside the U.S., with a low expense ratio of 0.07% and 2,704 holdings. IEFA's sector and geographical diversification, with significant holdings in Japan, the U.K., and France, supports a balanced risk profile and potential for stable returns. Despite its diversification, IEFA's performance may not consistently outpace the S&P 500, especially during U.S. market downturns due to its implicit short-USD hedge.
IEFA: Limited Exposure To Technology Sector Will Drag On Its Performance
iShares Core MSCI EAFE ETF has high exposure to European stocks. IEFA rebounded in 2022, but still underperformed the S&P 500 index in the long run. The fund's limited exposure to information technology sector relative to the S&P 500 index may drag its future performance.
ECB jumps ahead of the Fed to deliver its first rate cut. Is now a good time to invest in Europe ETFs?
Hello! This is MarketWatch reporter Isabel Wang bringing you this week's ETF Wrap. In this edition, we look at Europe exchange-traded funds on the back of the first interest-rate cut by the European Central Bank since 2019. Investors are fretting over whether there's room for these regional equities to build on their record-hitting rally so far this year.
