Growth stocks can offer investors an exciting ride, but that ride can be wild (and scary) at times. Younger, faster-growing companies tend to produce higher investment returns but are often riskier.
iShares MSCI EAFE Growth ETF offers exposure to 351 growth equities from developed markets, with a focus on large-cap stocks in industrials and technology sectors. The fund's expense ratio is 0.36%, slightly higher than iShares MSCI EAFE ETF, and it follows a market-cap-weighted strategy for stock selection. EFG has underperformed the S&P 500 due to lower technology exposure, making it suitable for international diversification rather than a core holding.
iShares MSCI EAFE Growth ETF holds over 300 international stocks with fundamental growth characteristics. EFG is diversified across a number of countries and sectors, with a focus on Japan and industrials. EFG has outperformed its parent index since inception, but it has been average over the last 7 years compared to other factor-based ETFs in the same stock universe.
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The described company operates as an investment fund focused on replicating the performance of a specific subset of the MSCI EAFE Index. The fund's investment strategy is primarily to allocate at least 80% of its assets into the securities that are part of its underlying index, along with investments that share economic characteristics almost identical to those securities. The underlying index it tracks is designed to represent the performance of companies located within Europe, Australasia, and the Far East, making it a diversified investment option for those looking to gain exposure to international markets.
These services are centered on investing a majority of the fund's assets into securities that make up its underlying index. This tactical allocation aims to ensure that the fund's performance closely mirrors the index it follows, which is a subset of the MSCI EAFE Index, encompassing a geographically diverse range of companies from Europe, Australasia, and the Far East.
Beyond direct investment in the index's securities, the fund also seeks out investments that have economic characteristics substantially identical to those of the index's components. This approach allows for a broader exposure to the economic factors driving the performance of companies within the targeted regions, offering an additional layer of investment diversification.