iShares Core MSCI EAFE ETF (IEFA): Complete Beginner's Guide
iShares Core MSCI EAFE ETF (IEFA) is a international developed ETF from BlackRock with an expense ratio of 0.07% and $110.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 6.20%.
Last updated: April 2026
BlackRock • International Developed
Expense Ratio
0.07%
AUM
$110.0B
Dividend Yield
2.80%
Inception
2012
Beginner Score
9.5/10
What is iShares Core MSCI EAFE ETF?
IEFA tracks the MSCI EAFE index, covering developed market stocks in Europe, Australasia, and the Far East while excluding the U.S. and Canada. It is BlackRock's answer to Vanguard's VEA and offers similar broad international developed market exposure. Beginners who use an iShares-focused brokerage often choose IEFA as their primary international stock fund due to its low cost and massive asset base.
IEFA is managed by BlackRock and has been available since 2012. With $110.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.07%, which means for every $10,000 you invest, you pay approximately $7 per year in management fees.
IEFA at a Glance — Key Metrics
| Expense Ratio | 0.07% |
| Total Holdings | 2,850 |
| P/E Ratio | 15.5 |
| Beta | 0.83 |
| Dividend Yield | 2.80% |
| AUM | $110.0B |
| Inception Year | 2012 |
| Issuer | BlackRock |
Top 10 Holdings in IEFA
IEFA holds 2,850 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Novo Nordisk A/S | NVO | 2.20% |
| 2 | ASML Holding NV | ASML | 1.90% |
| 3 | Nestle SA | NSRGY | 1.50% |
| 4 | Toyota Motor Corp. | TM | 1.30% |
| 5 | Roche Holding AG | RHHBY | 1.20% |
| 6 | Shell PLC | SHEL | 1.20% |
| 7 | AstraZeneca PLC | AZN | 1.10% |
| 8 | SAP SE | SAP | 1.10% |
| 9 | Novartis AG | NVS | 1.00% |
| 10 | HSBC Holdings PLC | HSBC | 0.90% |
IEFA's top holding is Novo Nordisk A/S (NVO) at 2.20%, followed by ASML Holding NV (ASML) at 1.90% and Nestle SA (NSRGY) at 1.50%. The top 10 holdings account for 13.40% of the fund's 2,850 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Novo Nordisk A/S | NVO | 2.20% |
| 2 | ASML Holding NV | ASML | 1.90% |
| 3 | Nestle SA | NSRGY | 1.50% |
| 4 | Toyota Motor Corp. | TM | 1.30% |
| 5 | Roche Holding AG | RHHBY | 1.20% |
| 6 | Shell PLC | SHEL | 1.20% |
| 7 | AstraZeneca PLC | AZN | 1.10% |
| 8 | SAP SE | SAP | 1.10% |
| 9 | Novartis AG | NVS | 1.00% |
| 10 | HSBC Holdings PLC | HSBC | 0.90% |
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IEFA Performance History
Here's how IEFA 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
1.60%
1 Year
8.80%
3 Year
3.80%
5 Year
6.20%
10 Year
5.20%
IEFA has returned 6.20% annualized over 5 years and 5.20% over 10 years. YTD return is 1.60%.
View data table
| Period | Return |
|---|---|
| YTD | 1.60% |
| 1 Year | 8.80% |
| 3 Year | 3.80% |
| 5 Year | 6.20% |
| 10 Year | 5.20% |
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.
IEFA scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 2,850 holdings, and has been available since 2012, giving it a proven track record.
How to Buy IEFA — 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 "IEFA" — Use the search bar in your brokerage platform to find iShares Core 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.
IEFA Sector Allocation
Here's how IEFA distributes its investments across different sectors of the economy:
IEFA's largest sector allocation is Financials at 19.8%, followed by Industrials at 16.5% and Health Care at 13.5%.
View data table
| Sector | Weight |
|---|---|
| Financials | 19.8% |
| Industrials | 16.5% |
| Health Care | 13.5% |
| Consumer Discretionary | 11.8% |
| Information Technology | 9.8% |
| Consumer Staples | 9.2% |
| Energy | 5.5% |
| Materials | 5.8% |
| Communication Services | 4.5% |
| Utilities | 3.6% |
Dollar Cost Averaging Into IEFA
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 IEFA's expense ratio of 0.07%, a $10,000 investment would lose approximately $600 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
IEFA's expense ratio of 0.07% costs $601 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,009.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,646 | $47 |
| 10 | $21,589 | $21,450 | $139 |
| 15 | $31,722 | $31,415 | $307 |
| 20 | $46,610 | $46,009 | $601 |
Pros and Cons of IEFA
Pros
- ✓Tracks the MSCI EAFE, the most widely used international developed market benchmark
- ✓Massive $110B asset base ensures excellent liquidity and institutional-grade execution
- ✓Low 0.07% expense ratio is competitive for a fund covering 20+ developed countries
- ✓Clean separation from emerging markets lets investors control their EM allocation independently
Cons
- ✗Excludes Canada, which VEA includes, creating a slight geographic gap for some investors
- ✗International developed markets have lagged U.S. equities significantly over the past decade
- ✗Foreign currency exposure can drag returns when the U.S. dollar strengthens
IEFA vs Similar ETFs
See how IEFA stacks up against similar funds:
Frequently Asked Questions
Is IEFA a good ETF for beginners?▾
IEFA 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 IEFA?▾
IEFA has an expense ratio of 0.07%. This means for every $10,000 you invest, you pay approximately $7 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in IEFA?▾
You can invest in IEFA 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 IEFA pay dividends?▾
Yes, IEFA pays dividends with a current yield of approximately 2.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in IEFA?▾
The top holdings in IEFA include Novo Nordisk A/S (2.20%), ASML Holding NV (1.90%), Nestle SA (1.50%), and more. The fund holds 2,850 total positions, providing broad diversification across many companies.
What sectors does IEFA invest in?▾
IEFA's largest sector allocations are Financials (19.80%), Industrials (16.50%), Health Care (13.50%). This sector distribution shows a focus on financials stocks.
How much do IEFA's fees cost over time?▾
With an expense ratio of 0.07%, a $10,000 investment in IEFA would lose approximately $600 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.