iShares Core MSCI EAFE ETF

iShares Core MSCI EAFE ETF (IEFA) is a BlackRock index fund tracking the MSCI EAFE IMI Index: large, mid-size and small company stocks in developed markets outside the US and Canada, led by Japan and the UK. As of July 31, 2026, it had about 2,600 holdings, and the 10 largest were only about 12% of assets. Its 0.07% yearly fee is far below sister fund EFA's 0.32%, though several rivals charge 0.03% to 0.06%.

• Over the year to Nov 2, 2026, IEFA returned +13.7%, 6th of 9 among similar funds.
• Its 5-year annualized return was +8.2% and its 10-year +9.4%.
• In the 2020 COVID crash it fell 33.2% and regained its old high 7.6 months after the low.
• Its worst full calendar year was 2022 (-15.2%); its best was 2025 (+32.1%).
• The deepest fall in its price history was 34.8% (Jan 26, 2018 to Mar 23, 2020), recovered by Nov 16, 2020.

As of Jul 31, 2026, the fund held 2,625 securities; the ten largest made up 11.95% of assets.

• Over the three months to Jul 31, 2026, investors added a net $4.73B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.55%, +0.05%, +1.56%.

IEFA tracks the MSCI EAFE IMI Index, built by MSCI. As of July 31, 2025, the index covered large, mid-size and small companies in 21 developed countries or regions across Europe, Australasia and the Far East. It leaves out the US and Canada. Stocks are weighted by free-float market value: bigger companies count more, based only on shares the public can trade. MSCI, not BlackRock, sets the lineup and weights, which change over time.

BlackRock uses representative sampling. Rather than necessarily owning every stock in the index, it holds a sample picked to match the index's mix of company sizes, industries, yield and volatility. At least 80% of assets go into index stocks or depositary receipts (certificates that stand in for foreign shares). Up to 20% can go into futures, options, swaps, cash and non-index stocks that help it track. As of July 31, 2026, that included small positions in index futures (contracts tied to an index's price) on the FTSE 100, Euro Stoxx 50 and Japan's TOPIX.

The fund won't try to beat the index or retreat to cash when markets fall. Turnover, the share of holdings traded each year, was 3%, which keeps trading costs down. It may lend securities worth up to one-third of its assets for extra income. Because it's priced in dollars, a weaker yen, pound or euro lowers its value.

• IEFA charges 0.07% a year, versus an average of 0.1% for the similar funds below (7th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $7 in the first year and $90 over 10 years (assuming a 5% annual return).

With about 2,600 developed-market stocks outside North America for 0.07% a year, it can serve as the main international stock fund in a diversified portfolio.

IEFA can add about 2,600 developed-market companies outside North America, from ASML to small firms, to a portfolio heavy in US stocks. It launched in 2012, so it has no 2008 record. Its deepest drop, 34.8%, ran from January 2018 to March 2020 and included a 33.2% plunge in the COVID crash; it recovered by November 2020. In the 2022 market slump it fell 29.2% and took 16.9 months from its low, until February 2024, to recover. Its worst calendar year in the prospectus was 2022, down 15.13%. Drawing cash in such stretches means cashing out shares at low prices.

Dividends come twice a year, totaling a 3.41% yield over the 12 months to October 27, 2026. Costs are low: $90 over 10 years on $10,000 in the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

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