iShares MSCI EAFE ETF (EFA): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • Intl Developed
Expense Ratio
0.32%
AUM
$55.0B
Dividend Yield
3.00%
Inception
2001
Beginner Score
9.5/10
What is iShares MSCI EAFE ETF?
EFA tracks the MSCI EAFE Index, covering large and mid-cap stocks in developed markets across Europe, Australasia, and the Far East, excluding the U.S. and Canada. It is one of the oldest and most widely held international ETFs, serving as a benchmark for international developed market performance. The fund provides exposure to global blue-chip companies like Nestle, Toyota, and ASML.
EFA is managed by BlackRock and has been available since 2001. With $55.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.32%, which means for every $10,000 you invest, you pay approximately $32 per year in management fees.
EFA at a Glance — Key Metrics
| Expense Ratio | 0.32% |
| Total Holdings | 780 |
| P/E Ratio | 15.5 |
| Beta | 0.82 |
| Dividend Yield | 3.00% |
| AUM | $55.0B |
| Inception Year | 2001 |
| Issuer | BlackRock |
Top 10 Holdings in EFA
EFA holds 780 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Novo Nordisk | NVO | 2.80% |
| 2 | ASML Holding | ASML | 2.50% |
| 3 | Nestle | NSRGY | 2.00% |
| 4 | Toyota Motor | TM | 1.80% |
| 5 | Shell | SHEL | 1.60% |
| 6 | AstraZeneca | AZN | 1.50% |
| 7 | SAP | SAP | 1.50% |
| 8 | LVMH | MC.PA | 1.40% |
| 9 | Novartis | NVS | 1.30% |
| 10 | Roche Holding | ROG.SW | 1.20% |
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EFA Performance History
Here's how EFA has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.40%
1 Year
10.00%
3 Year
5.00%
5 Year
6.00%
10 Year
5.00%
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
EFA scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 780 holdings, and has been available since 2001, giving it a proven track record.
How to Buy EFA — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "EFA" — Use the search bar in your brokerage platform to find iShares MSCI EAFE ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into EFA
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With EFA's expense ratio of 0.32%, a $10,000 investment would lose approximately $2,686 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of EFA
Pros
- ✓One of the most established international ETFs with over two decades of track record
- ✓Massive AUM and high trading volume provide exceptional liquidity and tight spreads
- ✓Focused on developed markets which are generally more stable than emerging markets
- ✓Higher dividend yields than U.S. markets reflect the income culture of European and Asian companies
Cons
- ✗Expense ratio of 0.32% is significantly higher than newer international ETF alternatives
- ✗Excludes emerging markets and small-cap stocks, limiting total international coverage
- ✗International developed markets have substantially underperformed U.S. stocks for over a decade
EFA vs Similar ETFs
See how EFA stacks up against similar funds:
Frequently Asked Questions
Is EFA a good ETF for beginners?▾
EFA has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of EFA?▾
EFA has an expense ratio of 0.32%. This means for every $10,000 you invest, you pay approximately $32 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in EFA?▾
You can invest in EFA with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does EFA pay dividends?▾
Yes, EFA pays dividends with a current yield of approximately 3.00%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in EFA?▾
The top holdings in EFA include Novo Nordisk (2.80%), ASML Holding (2.50%), Nestle (2.00%), and more. The fund holds 780 total positions, providing broad diversification across many companies.