SPDR MSCI EAFE Fossil Fuel Free ETF

SPDR MSCI EAFE Fossil Fuel Free ETF (EFAX), from State Street, tracks the MSCI EAFE ex Fossil Fuels Index. The index holds large and mid-size companies in developed Europe, Australasia and the Far East, minus companies that own coal, oil or gas reserves. Its 0.20% yearly fee is below the 0.32% charged by iShares MSCI EAFE ETF (EFA), but well above broad developed-market funds such as Vanguard's VEA at 0.03%.

• Over the year to Oct 27, 2026, EFAX returned +9.0%, 9th of 9 among similar funds.
• Its 5-year annualized return was +7.7% and its 10-year +8.7%.
• In the 2020 COVID crash it fell 31.4% and regained its old high 7.8 months after the low.
• Its worst full calendar year was 2022 (-16.7%); its best was 2025 (+31.3%).
• The deepest fall in its price history was 32.5% (Jan 17, 2020 to Mar 18, 2020), recovered by Nov 9, 2020.

As of Jun 30, 2026, the fund held 643 securities; the ten largest made up 15.28% of assets, and 2.07% sat in cash and money-market holdings.

• Over the three months to Jun 30, 2026, investors withdrew a net $5.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +8.03%, +3.47%, +0.83%.

The fund starts with the MSCI EAFE Index. That index covers large and mid-size companies in developed countries outside the US and Canada. MSCI then removes energy, utility and diversified metals and mining companies that own fossil fuel reserves. That means proved and probable coal reserves, and proved oil and natural gas reserves used for energy. Any other company that owns reserves and earns revenue from activities such as thermal coal mining, oil and gas production or downstream activities is also removed. Coal used to make steel doesn't count. Companies MSCI ESG Research hasn't assessed are left out.

The companies that remain are weighted by free float-adjusted market value: share price times the shares readily available to trade. So the largest companies count most. The index is rebuilt each quarter at the close of the last business day of February, May, August and November. Because the screen looks at both reserves and revenue, the fund can still own some companies with reserves. Even so, at least 80% of its net assets must be in companies that own none.

State Street's SSGA Funds Management uses sampling. It may hold a subset of index stocks with similar risk and return, or nearly all of them. As of June 30, 2026, the fund had 643 holdings. It may also use depositary receipts and futures (contracts to buy or sell at a set price later) to manage cash. Portfolio turnover was a low 4%.

• EFAX charges 0.2% a year, versus an average of 0.12% for the similar funds below (7th of 9, 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).

It adds stocks from developed markets outside the US, led by Japan, the UK and Switzerland, to a portfolio that may lean heavily on US companies.

EFAX launched in October 2016, so it has no record from the 2008 financial crisis. Its deepest drop came in the 2020 COVID crash. It fell 32.5% from January 17 to March 18, 2020, and recovered by November 9, 2020, about 7.8 months later. The 2022 bear market lasted longer. The fund fell 30.4% and needed about 17 months, until February 22, 2024, to recover. 2022 was its worst calendar year, with a loss of 16.87%. Anyone who sold shares that year to cover living costs would have sold at low prices.

The fund pays income twice a year, not monthly. Its trailing 12-month yield was 3.19% as of October 27, 2026. Its 0.20% expense ratio (the yearly fee, taken from fund assets) is above the 0.12% average for similar funds. 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.