What Is EFA? iShares MSCI EAFE ETF

EFA is the iShares MSCI EAFE ETF, a single ticker that gives you ownership of hundreds of large- and mid-cap stocks across developed markets outside the US and Canada. EAFE stands for Europe, Australasia, and the Far East. It is one of the most established ways to add developed-market international exposure to a portfolio, weighted by market capitalization.

EFA, listed on NYSE Arca. The official name is iShares MSCI EAFE ETF, issued by BlackRock's iShares. It tracks the MSCI EAFE Index, a benchmark for developed-market equities outside North America.

Developed markets in Europe (such as the UK, France, Germany, Switzerland, and the Netherlands), Australasia (Australia and New Zealand), and the developed Far East (Japan, Hong Kong, and Singapore). It deliberately excludes the United States and Canada, and it excludes emerging markets, so it is a developed-ex-North-America fund.

Hundreds of developed-market large and mid caps, weighted by market cap. Top names as of July 2026 include ASML, HSBC, Roche, Novartis, AstraZeneca, Nestle, Siemens, Shell, Tokyo Electron, and Mitsubishi UFJ. See the top-10 table above for current weights; European and Japanese blue chips dominate the top of the fund.

0.32% per year (32 basis points). On a $10,000 investment, that is about $32 per year in fees. That is higher than iShares' own IEFA, which tracks essentially the same market at a lower cost, because EFA is the older, more heavily traded fund favored by institutions and options users.

Approximately 3.24% as of July 2026. Developed international stocks, especially European names, have historically paid higher dividends than US large caps, so EFA's yield tends to run above the S&P 500's. Yield moves with the underlying companies' payout policies and share prices.

Both are iShares funds tracking developed markets outside North America. EFA tracks the MSCI EAFE Index and charges 0.32%; IEFA tracks a broader MSCI index (adding small caps) at a lower expense ratio. IEFA is usually the cheaper long-term hold, while EFA retains a deeper options market and heavier institutional trading. For buy-and-hold, the cheaper fund is often preferred; for options or active trading, EFA's liquidity helps.

EFA trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, or others. Fractional shares are supported at most modern brokers. Connect your broker to Walnut and the AI can show how international exposure like EFA overlaps with, or diversifies, the rest of your holdings.

EFA is widely used as the developed-international sleeve of a diversified portfolio, complementing US funds. Whether it fits depends on your time horizon, how much international exposure you want, and whether you prefer EFA or a cheaper alternative like IEFA. Walnut is not an investment adviser and this is not a recommendation.

Approximately $77.22B as of July 2026, making it one of the largest international equity ETFs. Its scale and long history since 2001 are part of why it stays popular with institutions despite the availability of cheaper alternatives.

No. EFA covers only developed markets outside the US and Canada. For emerging-market exposure you would need a separate fund such as an emerging-markets or all-world-ex-US ETF. This is a common point of confusion: EAFE is developed-only.

Yes. The trailing yield is approximately 3.24% as of July 2026. Distributions are aggregated from the underlying holdings, which include many higher-yielding European companies. Note that foreign withholding taxes can apply to international dividends, which may affect after-tax returns depending on your account type.

August 2001. It was one of the earlier international equity ETFs and helped make developed-market exposure accessible in a single US-listed ticker. Its long track record is part of the reason it remains a reference point for EAFE exposure.

Both cover developed markets outside the US. VEA (Vanguard FTSE Developed Markets ETF) tracks a FTSE index, includes Canada and small caps, and charges a lower expense ratio. EFA tracks the MSCI EAFE Index, excludes Canada and small caps, and costs more. Returns are broadly similar; the main differences are the index provider, the inclusion of Canada and small caps, and cost.

Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. EFA's figures are above; the full method is in Walnut's guide on how to compare ETFs.