iShares MSCI EAFE Growth ETF

The iShares MSCI EAFE Growth ETF (EFG) is an index fund that tracks the MSCI EAFE Growth Index. That index holds the growth-style half of large and mid-size stocks in developed markets outside the US and Canada, led by ASML, AstraZeneca and Commonwealth Bank of Australia. Its 0.34% expense ratio is about double the 0.17% average of similar funds. It also trailed broader international funds over one and three years through October 29, 2026.

• Over the year to Nov 2, 2026, EFG returned +5.4%, 9th of 9 among similar funds.
• Its 5-year annualized return was +3.0% and its 10-year +8.0%.
• In the 2020 COVID crash it fell 29% and regained its old high 3.9 months after the low.
• Its worst full calendar year was 2008 (-40.2%); its best was 2017 (+28.9%).
• The deepest fall in its price history was 58.4% (Oct 31, 2007 to Mar 9, 2009), recovered by May 1, 2014.

As of Jul 31, 2026, the fund held 371 securities; the ten largest made up 21.06% of assets.

• Over the three months to Jul 31, 2026, investors added a net $1.18B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.35%, +1.52%, -2.31%.

EFG follows the MSCI EAFE Growth Index, which is a subset of the MSCI EAFE Index. EAFE stands for Europe, Australasia and the Far East, meaning developed stock markets outside the US and Canada. MSCI scores every stock in the parent index for value and growth traits. For growth it uses five measures: forecast long-term and short-term earnings-per-share growth, current internal growth rate, and long-term historical growth in earnings and sales per share. A stock can be split between the growth and value indexes. The growth side makes up roughly half of the parent index's free float-adjusted market value, which counts only shares available to public investors.

BlackRock manages the fund using representative sampling. This means it holds a group of stocks that together resemble the index, so it may not own every component. As of July 31, 2026, it held 371 stocks. At least 80% of assets go into index stocks or close equivalents such as depositary receipts. Up to 20% can go into futures, options, swaps, cash and other securities that help it track the index. Small positions in Euro Stoxx 50, FTSE 100 and TOPIX futures showed up in that report. The fund may also lend out securities worth up to one-third of its assets.

The fund does not try to beat its index, and it does not move to cash when markets fall. Its value is set in US dollars, so moves in foreign currencies against the dollar affect returns. Portfolio turnover was 23%.

• EFG charges 0.34% a year, versus an average of 0.17% for the similar funds below (7th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $35 in the first year and $431 over 10 years (assuming a 5% annual return).

EFG adds growth companies from Japan, Europe and Australia that a US-focused portfolio may not hold, but its growth tilt brings higher swings than broad international funds.

EFG could add companies such as ASML, SAP and Tokyo Electron to a portfolio built mostly on US stocks. It has fallen hard in bad markets. From October 2007 to March 2009 it lost 58.4%, and it did not regain its old high until May 2014, about five years later. In the 2020 COVID crash it fell 29% but recovered in about four months. In the 2022 bear market it dropped 34.3% and needed almost two years to recover. Its worst calendar year was 2008, when it lost 40.2%. Anyone forced to sell shares in stretches like these would lock in losses.

Income is small. The trailing 12-month yield was 0.77% as of October 29, 2026, paid twice a year. The 0.34% expense ratio is about double the 0.17% average of 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.