If the Fed Cuts Again, IEFA Could Rally Further. Here's Your Monitoring Checklist.
The iShares Core MSCI EAFE ETF (NYSEARCA:IEFA) has quietly become one of the best-performing core holdings in U.S.
Should You Buy, Or Sell iShares Core MSCI EAFE ETF Today? | IEFA
If you've only invested in U.S. equities in the past two decades, you've likely won big, at least compared to non-U.S.
IEFA's 22% Gain Hides a Currency Bet That Could Reverse in 2026
The iShares Core MSCI EAFE ETF (NYSEARCA:IEFA | IEFA Price Prediction) has quietly become one of the year's standout core holdings, trading near $97 after a 8% year-to-date run and a 22% one-year gain.
IEFA: Cheap Valuations Offset Gloomy Economic Outlook
The iShares Core MSCI EAFE ETF has managed to outperform the S&P 500 in 2026, notwithstanding relative underperformance since the start of the war in Iran. IEFA invests in companies operating primarily in energy-importing developed markets in Europe and Asia, a poor geographic focus in the current geopolitical climate. Even so, trading at only 18.41x their trailing earnings, IEFA holdings remain attractively valued relative to the S&P 500 even if we account for weaker earnings growth.
Why This International Dividend ETF is Outperforming in 2026
According to YCharts the Franklin International Dividend Booster Index ETF (XIDV) has returned 8.95% year-to-date, narrowly outperforming the iShares Core MSCI EAFE ETF (IEFA), which is up 8.75% over the same period. At first glance, the difference may appear modest.
IEFA vs. SPGM: Does This Developed Markets ETF Have the Edge Over A Global ETF?
IEFA offers higher recent returns and a significantly higher dividend yield than SPGM. SPGM provides broader global exposure including U.S. and emerging markets, while IEFA focuses on developed markets outside North America.
Better iShares International ETF: IEFA vs. IXUS
IEFA carries an identical expense ratio to IXUS but offers a slightly higher dividend yield. IXUS delivered a stronger 1-year return and covers a broader set of international stocks, including emerging markets.
Invite Income Into International Investing
Even with an impressive run that's seen the MSCI EAFE Index easily outpace the S&P 500 since the start of last year, the widely followed gauge of ex-US developed market equities sports a trailing 12-month dividend yield of 3.36%, or about triple what's found on the domestic benchmark.
Read This Before Buying, or Holding iShares IEFA ETF In 2026
The iShares Core MSCI EAFE ETF (NYSEARCA:IEFA) tracks developed markets across Europe, Japan, and Australia, offering exposure to roughly 3,600 stocks outside North America.
VIDEO: ETF of the Week: Favorite ETF Picks of 2025
On this special episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, reviewed some of his favorite ETF of the Week picks from 2025 with Chuck Jaffe of Money Life. Chuck Jaffe: One fund on point for today.
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.
