iShares MSCI EAFE IndexEFA

Morningstar Rating

ETF Research and Analysis

by Alex Bryan
Suitability
Although correlations between stock markets have shot up in the wake of the financial crisis, global diversification is important as important as ever. IShares MSCI EAFE Index is a suitable core holding for investors with   Read more 

Bull Case

International equities can provide significant diversification benefits to U.S. investors.
On average, the fund's holdings are trading at lower valuations than U.S. stocks.
Many of the fund's largest holdings are high-quality multinational firms that are positioned to capitalize on growth in emerging markets. Read more 

Bear Case

There are cheaper alternatives.
The European recession may continue to weigh on the fund's holdings and increase its volatility in the near term.
A strengthening U.S. dollar could put a dent in the fund's returns, even if its holdings appreciate. Read more 

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