iShares Core MSCI EAFE ETF

IEFA

Market cap $155B

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.

Most investors are aware a few companies dominate the stock market. But the same goes for the ETF market.

TMX VettaFi is a participant in a weekly podcast called ETF of the Week. As the regular guest, I offer up a new, newsworthy, trending, or timely ETF and discuss it, unscripted, with the host, Chuck Jaffe.

The iShares Core MSCI EAFE ETF invests in developed market equities outside the United States and Canada. I estimate countries in which IEFA invests will only deliver 1% GDP growth in 2025, 0.4% weaker than the United States. Even so, compared with the SPY, IEFA offers a more attractive earnings and dividend yield, more than offsetting weaker future growth.

You can hold these diversified ETFs for decades.

Got the itch to dive headfirst back into the stock market? It would be understandable if you did.

Core U.S. equity and U.S. fixed income ETFs were up 2%-3% year-to-date through mid-June. Such modest performance has led many advisors to look for diversification benefits through other investments.

On this week's episode of ETF Prime, host Nate Geraci and Roxanna Islam, head of sector & industry research at VettaFi, break down the year's top-performing ETFs, highlighting many International ETFs. Later, Alexandra Levis, founder & CEO of Arro Financial Communications, details marketing approaches for ETF issuers.

If you want to make money on popular ETFs this year, there's one key strategy — avoid the S&P 500.