iShares MSCI EAFE International Index Fund - Class K: Your Gateway to Global Growth

Looking to expand your investment horizons beyond domestic shores? Consider the iShares MSCI EAFE International Index Fund - Class K (EFA), an exchange-traded fund (ETF) that offers broad exposure to the developed markets outside the United States.

What is the MSCI EAFE Index?

The MSCI EAFE Index is a widely recognized benchmark that tracks the performance of approximately 900 large- and mid-cap companies from 21 developed countries, excluding the United States and Canada. This index provides a comprehensive snapshot of the international equity markets, representing over 85% of the global equity market capitalization outside North America.

EFA Fund Overview

EFA seeks to track the performance of the MSCI EAFE Index, investing in a diversified portfolio of companies across various sectors and countries. Some key statistics include:

• Total Net Assets: $69.9 billion
• Expense Ratio: 0.31%
• Dividend Yield: 2.5%
• Average Daily Volume: Over 2 million shares

Geographic Exposure

EFA provides significant geographic diversification, with investments spread across the following regions:

Sector Exposure

The fund's sector allocation reflects the composition of the MSCI EAFE Index, with a concentration in the following industries:

Historical Performance

EFA has a track record of delivering strong returns over the long term.

• 1-Year Return: 15.2%
• 3-Year Return: 34.5%
• 5-Year Return: 56.2%
• 10-Year Return: 125.4%

Benefits of Investing in EFA

• Diversification: Gain exposure to a broad range of developed international markets, reducing the risks associated with geographic concentration.
• International Growth: Tap into the growth potential of international economies, which can outperform the United States in certain market cycles.
• Income Generation: EFA offers a modest dividend yield, providing a potential source of passive income.
• Low Expenses: The fund's low expense ratio makes it an affordable option for investors.

Risks to Consider

• Foreign Currency Risk: EFA's investments are exposed to currency fluctuations, which can impact returns.
• Political and Economic Risks: International markets can be influenced by political and economic conditions, which can affect fund performance.
• Sector Concentration: EFA's significant allocation to certain sectors, such as financials and technology, may increase volatility.

Who Should Consider EFA?

EFA is suitable for investors who:

• Seek international diversification in their portfolio
• Believe in the long-term growth potential of developed international markets
• Are comfortable with the risks associated with foreign investing
• Can tolerate potential fluctuations in currency exchange rates

How to Buy EFA

EFA is traded on the New York Stock Exchange (NYSE) under the ticker symbol "EFA." Investors can purchase shares of the fund through a brokerage account.

The Bottom Line

The iShares MSCI EAFE International Index Fund - Class K (EFA) offers investors a convenient and cost-effective way to access the growth potential of developed international markets. With its broad diversification, strong historical performance, and low expenses, EFA is an attractive option for investors seeking to complement their domestic portfolios.

Table 1: EFA Portfolio Composition

Table 2: EFA Geographic Exposure

Table 3: EFA Sector Exposure

Table 4: EFA Performance History