iShares Core MSCI EAFE ETF

IEFA

Market cap $160B

IEFA charges a higher fee but delivers a slightly higher dividend yield than SCHF SCHF edges out IEFA on recent returns and shows a slightly smaller five-year drawdown IEFA holds more stocks and offers broader sector diversification, but both funds share similar top holdings

Investors looking for top exchange traded funds (ETFs) to invest in certainly have plenty of options to choose from.

It's been a good year for international equity ETFs. As a category, broad exposure funds tapping into both developed and emerging market equities have delivered outsized gains relative to U.S. markets this year, as well as much sought portfolio diversification.

IEFA and VEA both offer broad developed-market coverage. However, IEFA excludes Canada and carries a higher fee.

IEFA brings a narrower developed-markets focus and a larger asset base. Meanwhile, VEU covers both developed and emerging markets.

IEFA and EEM differ most in cost, market focus, and diversification. IEFA offers lower fees and broader developed-markets exposure.

IEFA is a broad-based play on developed market stocks outside the U.S. There are multiple reasons to own the ETF this month, but one stands out. Hint: Market participants need to play catch-up with international equities.

The iShares Core MSCI EAFE ETF provides exposure to thousands of foreign stocks. It excludes the U.S. and Canada.

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.

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.