Morningstar Rating

ETF Research and Analysis

by Patricia Oey
Suitability
IShares Core MSCI EAFE provides exposure to large-, mid-and small-cap stocks domiciled in developed Europe, Asia, and Australia. This market-cap-weighted index fund invests in companies in 21 developed markets, an asset   Read more 

Bull Case

Many of the fund’s largest holdings are high-quality, multinational firms.
The fund is highly liquid, which should make it cheap to trade.
This ETF carries a very low expense ratio. Read more 

Bear Case

Despite its broad exposure, this ETF has not provided much diversification benefit for U.S. investors during the past few years.
A strengthening U.S. dollar could put a dent in the fund's returns, even if its holdings appreciate.
Investors looking for a one-stop foreign equity fund should note this fund does not hold Canadian or emerging-markets equities.  Read more 

Are There Viable Alternatives to Traditional Bond ETFs? 
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