A Deep Dive into the iShares MSCI EAFE ETF’s Market-Leading Performance

iShares MSCI EAFE ETF US4642874659

International equities, as represented by the iShares MSCI EAFE ETF (ticker: EFA), have delivered a standout performance. This fund provides diversified exposure to developed markets outside the United States and Canada. In a notable shift, the MSCI EAFE index surged 31.2% throughout 2025, significantly outpacing the S&P 500’s 17.9% gain. This raises a pivotal question for investors: can this divergence from U.S. market performance be sustained?

Key Fund Metrics
* Assets Under Management: $72.92 billion
* Expense Ratio: 0.32%
* Replication Method & Distribution: Physical replication with semi-annual dividends
* Major Country Allocations: Japan (22.16%), United Kingdom (14.63%), France (10.84%)
* Performance Data (Mid-January 2026): 1-year return of +37.53%; year-to-date return of +2.81%