At a glance
HEFA charges 0.35% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $7.53B in assets, the 2nd largest of that group; it paid 4.02% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +18.3% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +21.4% a year. At its worst it fell 32.1% in the 2020 crash (S&P 500: 33.7%) and 14.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 9 months after the low.
The short version
iShares Currency Hedged MSCI EAFE ETF (HEFA) is a BlackRock fund of funds. It owns the iShares MSCI EAFE ETF, which holds large and mid-size companies in 21 developed markets across Europe, Australasia and the Far East. It then adds currency contracts to offset moves in foreign currencies against the US dollar. That hedge is what separates it from the unhedged fund. Total annual expenses are 0.35% after a fee waiver, per the prospectus filed November 21, 2025.
Price history
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HEFA +18.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HEFA official prospectus, to Dec 31, 2024 | — | +13.71% | — | +9.72% | +8.87% | — |
| MSCIACWI Ex USA Index Net index, same period | — | +5.53% | — | +4.10% | +4.80% | — |
| HEFA price data to Oct 27, 2026 | +14.3% | +18.3% | +21.4% | +12.0% | +11.6% | +10.0% |
- Over the year to Oct 27, 2026, HEFA returned +18.3%, 1st of 8 among similar funds.
- Its 5-year annualized return was +12.0% and its 10-year +11.6%.
- In the 2020 COVID crash it fell 32.1% and regained its old high 9.4 months after the low.
- Its worst full calendar year was 2022 (-11.4%); its best was 2019 (+27.6%).
- The deepest fall in its price history was 32.4% (Feb 12, 2020 to Mar 16, 2020), recovered by Dec 29, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +14.3% | — |
| 2025 | +24.6% | — |
| 2024 | +13.7% | +13.71% |
| 2023 | +20.3% | +20.44% |
| 2022 | -11.4% | -4.73% |
| 2021 | +19.7% | +19.38% |
| 2020 | +2.3% | +2.11% |
| 2019 | +27.6% | +24.73% |
| 2018 | -9.3% | -9.24% |
| 2017 | +16.7% | +16.69% |
| 2016 | +6.4% | +6.57% |
| 2015 | +4.4% | +4.44% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 29.3% over that stretch · deepest drop along the way 32.1%, back to its old high 9.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.5% over that stretch · deepest drop along the way 14.8%, back to its old high 8.5 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6900 | |
| 2025 | $1.8200 | +70.1% |
| 2024 | $1.0700 | +12.6% |
| 2023 | $0.9500 | -78.6% |
| 2022 | $4.4300 | +294.7% |
| 2021 | $1.1224 | +60.5% |
| 2020 | $0.6991 | -69.7% |
| 2019 | $2.3100 | +95.8% |
| 2018 | $1.1800 | +55.3% |
| 2017 | $0.7600 | -8.4% |
| 2016 | $0.8300 | -7.8% |
| 2015 | $0.9000 |
What's inside
As of Jul 31, 2026, the fund held 2 securities; the ten largest made up 101.2% of assets.
| Fund held | Weight | |
|---|---|---|
| ISHARES MSCI EAFE ETF Other | 101.20% | |
| AUSTRALIAN DOLLAR Other | 0.00% |
By country
United States 101.2%Australia 0%By asset type
Other 101.2%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $136.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.28%, +3.12%, +0.54%.
How it works
HEFA tracks the MSCI EAFE 100% Hedged to USD Index, built by MSCI. As of July 31, 2025, the index held large and mid-size companies from 21 developed countries, including Japan, the UK, France, Germany, Switzerland and Australia. Consumer goods and services, financials and industrials made up a large share. HEFA doesn't buy these stocks directly. It puts nearly all its money into the unhedged iShares MSCI EAFE ETF, which was about 101% of net assets as of July 31, 2026.
The hedge comes from currency forward contracts. A forward is a deal to swap currencies at a fixed rate on a future date. The index sells each foreign currency one month forward, and the fund copies this. As of July 31, 2026, it held 216 such positions. Some are non-deliverable forwards, which settle in cash in US dollars. MSCI resets the hedge once a month and does not adjust it in between. So the fund can end up slightly over-hedged when stocks fall, or under-hedged when they rise.
The result: HEFA should beat the unhedged fund when foreign currencies weaken against the dollar and lag it when they strengthen. The hedge does not reduce stock-market risk, and it may not offset currency moves perfectly. BlackRock uses representative sampling, and turnover was 14%. The extra layer costs more than owning the underlying fund on its own.
What it really costs
- HEFA charges 0.35% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0.38% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.35% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $685 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HEFA | $36 | $113 | $197 | $685 |
Structure and tax notes
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It adds developed-market stocks outside the US while removing most of the currency swings that usually come with them.
HEFA could add stocks from Europe, Japan and other developed markets without most of the ups and downs of foreign currencies. The stock risk stays. The fund launched in 2014, so it has no 2008 record. In the 2020 COVID crash it fell 32.1% from February 19 to March 16, 2020, and took about 9.4 months to recover. In the 2022 bear market it fell 14.8% and was back to its old high by June 15, 2023. Its weakest calendar year in the prospectus was 2018, at -9.24%. Selling shares during a drop like the 2020 one would lock in losses.
The trailing 12-month yield was 4.02% as of October 27, 2026. Payments come twice a year, which makes it harder to budget month to month. Annual costs are 0.35%. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want stocks from Europe, Japan and other developed markets, with returns that don't depend on foreign currencies against the US dollar.
- People willing to pay 0.35% a year, after a fee waiver, for a fund that holds another fund and adds a hedge reset each month.
- Long-term holders who can sit through drops like the 32.1% fall in early 2020, which took about nine months to recover.
Look elsewhere if
- Investors who want to benefit when the dollar weakens. The hedge gives up those gains when foreign currencies rise.
- Retirees who rely on steady monthly income. HEFA pays twice a year, and the amounts can change.
- Anyone looking for downside protection. The hedge covers currencies only, and the fund still fell 14.8% in the 2022 bear market.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HEFA this fund | 0.35% | $7.53B | +18.3% | +21.4% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
What's the difference between HEFA and the iShares MSCI EAFE ETF?
HEFA owns the iShares MSCI EAFE ETF, which was about 101% of its net assets as of July 31, 2026. It then adds currency forward contracts that offset changes in foreign currencies against the dollar. So both hold the same stocks. HEFA tends to do better when foreign currencies weaken and worse when they strengthen. Because of the extra layer, it costs more than owning the underlying fund directly.
Does HEFA pay dividends?
Yes. HEFA pays twice a year. Over the 12 months to October 27, 2026, it paid $1.87 per share, a trailing yield of 4.02%. In a currency-hedged fund, payouts can change from year to year. That's because the size of the payments can also depend on how the currency hedges performed, not only on company dividends. Investors who need monthly cash would have to plan around two payments a year.
What is HEFA's expense ratio?
HEFA's total annual expenses are 0.35% after a fee waiver, per the prospectus filed November 21, 2025. In the SEC's standard example, $10,000 invested with a 5% annual return would cost about $36 after one year, $113 after three years, $197 after five years and $685 after ten years, if the shares were sold at the end of each period.
How has HEFA performed compared with international stocks?
HEFA has done better than a broad international index over the past ten years. As of December 31, 2024, the fund returned 13.71% over one year, 9.72% a year over five years and 8.87% a year over ten years. The MSCI ACWI ex USA Index returned 5.53%, 4.10% and 4.80% over the same periods. Based on prices as of October 27, 2026, HEFA returned 18.3% over one year.
Does currency hedging make HEFA less risky?
Only for currency risk. The hedge offsets changes in foreign currencies against the dollar. It does not protect against falling stock prices. HEFA fell 32.1% in the 2020 COVID crash and 14.8% in the 2022 bear market. Its worst quarter was -20.65%, in early 2020. Volatility was 12.6% over the year to October 27, 2026. The monthly hedge can also be slightly too large or too small between resets.