iShares MSCI Pacific ex Japan ETF

iShares MSCI Pacific ex Japan ETF (EPP) is a BlackRock index fund that tracks the MSCI Pacific ex Japan Index, which holds large and mid-size companies in Australia, Hong Kong, Singapore and New Zealand. As of August 31, 2026, Australia made up about 63% of assets, led by banks and the miner BHP. Its 0.47% expense ratio is more than double the 0.19% charged by JPMorgan's BBAX. The two funds share about 90% of their holdings.

• Over the year to Oct 27, 2026, EPP returned +10.7%, 7th of 7 among similar funds.
• Its 5-year annualized return was +5.9% and its 10-year +7.3%.
• In the 2020 COVID crash it fell 37.3% and regained its old high 7.9 months after the low.
• Its worst full calendar year was 2008 (-47.6%); its best was 2009 (+63.5%).
• The deepest fall in its price history was 66% (Oct 31, 2007 to Nov 20, 2008), recovered by Jan 10, 2013.

As of Aug 31, 2026, the fund held 97 securities; the ten largest made up 47.1% of assets.

• Over the three months to Aug 31, 2026, investors added a net $116.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -2.67%, +6.22%, +2.23%.

EPP seeks to track the MSCI Pacific ex Japan Index. MSCI Inc. runs the index, independently of the fund. The index holds large- and mid-cap stocks from Australia, Hong Kong, New Zealand and Singapore and aims to cover about 85% of each country's free float-adjusted market value. That means companies are sized by the shares open to public investors, so bigger companies count for more. MSCI picks the stocks and sets their weights, and the list changes over time.

BlackRock Fund Advisors doesn't try to beat the index, and it doesn't move to cash when markets fall. It uses representative sampling: it holds a group of stocks that together match the index's size, industry mix, yield and price swings, without necessarily owning every member. At least 80% of assets go into index stocks or close equivalents. Up to 20% can go into futures, options, swaps, cash or money market funds. As of August 31, 2026, that included small positions in Australian and Singapore index futures.

Because the index weights companies by size, the fund is top-heavy. Its 10 largest positions made up 47.1% of assets as of August 31, 2026, led by BHP at about 10%. The fund also matches the index's heavy weight in financial companies. It may lend up to one-third of its assets to other institutions to earn extra income.

• EPP charges 0.47% a year, versus an average of 0.34% for the similar funds below (5th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $48 in the first year and $591 over 10 years (assuming a 5% annual return).

It adds developed-market stocks from Australia and Asia that a US-focused portfolio may lack, but its heavy weight in banks and miners makes it a small slice of a portfolio, not the foundation.

EPP holds companies such as BHP, Commonwealth Bank of Australia and DBS that US index funds largely leave out. It also pays income: a trailing 12-month yield of 3.36% as of October 27, 2026, paid twice a year. Its downturns have been deep. It fell 66% from October 2007 to November 2008 and didn't get back to its old high until January 2013. The 2008 calendar year alone brought a 47.6% loss. It dropped 37.3% in the 2020 crash and recovered in about eight months. In 2022 it fell 23.4% and took about 22 months to recover. Someone who has to take money out in a year like that could lock in losses. At 0.47% a year, it costs more than the 0.34% average for similar funds. Past results don't predict future ones, and a retirement plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).