iShares MSCI EAFE Value ETF

EFV

Market cap $26.1B

I reiterate a "Buy" rating on iShares MSCI EAFE Value ETF, which has outperformed the S&P 500 by over 7 percentage points YTD. EFV offers diversified exposure to ex-U.S. developed-market value equities, with a low 12.7x P/E, 8.5% EPS growth, and a high 4.8% yield. Financials dominate EFV's allocation at 37%, driving robust performance despite global yield volatility and limited AI/tech exposure.

While American investors have spent the last decade celebrating the Magnificent Seven and paying premium multiples for U.S.

Vanguard turned up the competitive heat in international investing with today's launch of the Vanguard Developed Markets ex-US Value Index ETF (VDV) and the Vanguard Developed Markets ex-US Growth Index ETF (VDG).

Most U.S. investors have spent the last decade watching domestic equities outperform nearly everything else.

If you haven't thought about diversifying your equity portfolio internationally, perhaps the performance of non-U.S.

Low valuations offer compelling upside for these international ETFs.

The iShares MSCI EAFE Value ETF invests in stocks outside the United States and Canada, following a value-based approach. This selection methodology has resulted in EFV being heavily allocated to cyclical sectors such as financials and industrials, while notably underweight in information technology. As such, EFV can act as a nice complement to investors worried about their AI exposure, or alternatively, to investors in long-dated bond ETFs.

Investors can eye global equity funds as AI bubble fears, U.S. market risks and Fed easing fuel demand for international diversification.

Tumult in U.S. markets this year has prompted investors to search abroad for investment opportunities. While the S&P 500 has recovered from its early-April tariff-related dip, a number of international and value exchange-traded funds (ETFs) have managed to easily outperform its year-to-date (YTD) returns of 10.2%.

I have a buy rating on iShares MSCI EAFE Value ETF, citing strong momentum and attractive valuations in EAFE value stocks. Value stocks are outperforming growth internationally, especially in Europe, with EFV offering broad exposure to undervalued developed markets. EFV boasts high liquidity, a solid dividend yield, and favorable risk metrics, but is heavily weighted toward financials and lacks tech exposure.