iShares MSCI EAFE Min Vol Factor ETF

iShares MSCI EAFE Min Vol Factor ETF (EFAV) holds stocks from developed markets outside the US and Canada. It tracks the MSCI EAFE Minimum Volatility (USD) Index, which leans toward steadier companies such as Secom, Iberdrola and Shell. The aim is a smoother ride than the broader MSCI EAFE Index. Its 0.20% expense ratio is below EFA's 0.32% but above the 0.13% average for similar funds.

• Over the year to Oct 27, 2026, EFAV returned +15.3%, 5th of 8 among similar funds.
• Its 5-year annualized return was +7.8% and its 10-year +7.3%.
• In the 2020 COVID crash it fell 27.2% and regained its old high 9.5 months after the low.
• Its worst full calendar year was 2022 (-15.1%); its best was 2025 (+26.0%).
• The deepest fall in its price history was 27.6% (Jan 17, 2020 to Mar 23, 2020), recovered by Jan 8, 2021.

As of Jul 31, 2026, the fund held 265 securities; the ten largest made up 14.57% of assets.

• Over the three months to Jul 31, 2026, investors withdrew a net $42.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.54%, -2.08%, +6.05%.

MSCI starts with the MSCI EAFE Index. That index holds large and mid-size companies in developed markets across Europe, Australasia, the Middle East and the Far East, and it weights them by market value. As of July 31, 2025, it covered 20 countries and regions. MSCI does not simply pick the calmest stocks. It runs an optimizer, a computer model that searches for the mix with the lowest expected volatility, meaning how much prices swing. The model works within limits on single-stock weights, sectors, countries, turnover, and traits such as liquidity and debt levels.

MSCI rebuilds the index every quarter, and each rebuild can replace no more than 5% of the portfolio. As of July 31, 2026, the fund held 265 stocks, and the top ten made up 14.57% of assets. Japan was 26.73%, Switzerland 10.39% and the UK 10.24%. The largest positions were Secom at 1.55% and Iberdrola at 1.53%.

BlackRock Fund Advisors uses representative sampling. That means the fund may hold a sample of the index rather than every stock in it. At least 80% of assets go into index stocks or close equivalents. Up to 20% can go into futures, cash and similar instruments. The fund can lend out up to one-third of its assets. It does not take defensive positions when markets fall. Its turnover was 24%.

• EFAV charges 0.2% a year, versus an average of 0.13% for the similar funds below (6th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $20 in the first year and $255 over 10 years (assuming a 5% annual return).

EFAV is built to swing less than the broad international market, though in past crashes it still fell by about a quarter.

EFAV could add international stocks with a calmer profile. As of October 27, 2026, its one-year beta (how much it moves with the market) was 0.34. But lower volatility does not mean no losses. The fund launched after the 2008 crisis. It fell 27.2% in the 2020 COVID crash and took about 9.5 months to recover. It dropped 25.3% in 2022 and needed about 21 months to get back. Its worst calendar year was 2022, at -14.76%. A retiree who has to sell in a year like that locks in losses. The trailing yield was 2.98% as of October 27, 2026, paid twice a year. The fund charges 0.20%, or $255 over 10 years in the SEC's $10,000 example. Over the 10 years to December 31, 2024, it returned 4.31% a year. The MSCI ACWI returned 9.23% over the same period. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.