Key Highlights

  • The benchmark excludes US and Canadian equities by design.
  • The Investment universe includes large-, mid- and small-cap companies.
  • Japan represented 26.90% of portfolio exposure on 6 October 2026.
  • Financials and industrials together accounted for 43.40% of Assets on that date.
  • The annual expense ratio is 0.07%, with distributions paid semi-annually.

An American exchange listing determines where an ETF trades, while its benchmark defines its investment universe. The iShares Core MSCI EAFE ETF (CBOE: IEFA) demonstrates this distinction through a portfolio concentrated in developed markets outside the United States and Canada. Its country allocation, sector composition and foreign-currency exposure create different return drivers from domestic Equity funds, despite its dollar-denominated trading price.

US Exchange Listing and International Equity Exposure

The fund’s American listing provides a venue for trading its shares in dollars. Its underlying equity exposure follows the MSCI EAFE IMI Index, which covers developed markets outside the United States and Canada. The absence of US equities therefore reflects the benchmark’s eligibility rules.

EAFE stands for Europe, Australasia and the Far East. The Investable Market Index, or IMI, extends coverage across large, medium and small companies, representing approximately 99% of free-float-adjusted Market Capitalisation within each eligible country. Emerging markets also fall outside this mandate.

The exchange listing, trading currency and underlying investment geography serve separate functions. Dollar settlement does not change the country classification of portfolio companies or remove the economic risks associated with foreign markets.

International ETF Holdings: Japan Leads Country Allocation

As of 6 October 2026, Japan represented 26.90% of assets, followed by the United Kingdom at 13.83%, France at 8.35%, Switzerland at 8.30% and Germany at 7.96%. Australia accounted for 6.97%, while the Netherlands represented 5.38%.

These allocations demonstrate that broad international coverage can coexist with substantial country concentrations. Japanese corporate earnings, Monetary Policy and currency movements consequently have considerable influence on portfolio performance.

Financials represented 24.06%, industrials 19.34% and information technology 11.61%. This composition gives banks and industrial businesses a significant role in the fund’s Earnings exposure. Interest rates, Credit conditions, Capital Expenditure and International Trade are therefore important economic influences.

The portfolio held 2,625 securities. That breadth distributes exposure across numerous issuers, although common economic pressures can affect many holdings simultaneously.

Currency Exposure Remains Despite Dollar Trading

Dollar-denominated ETF shares remain sensitive to movements in the currencies of overseas holdings. Foreign-currency depreciation against the dollar reduces the dollar value of those assets, all else equal. Appreciation produces the opposite translation effect.

The fund’s currency risk includes potential declines in dollar-denominated net asset value when foreign currencies weaken. Its American listing and dollar trading price do not establish protection against exchange-rate fluctuations.

Country classification also differs from Revenue exposure. Foreign companies may generate substantial sales in the United States. Excluding US-classified equities therefore does not eliminate sensitivity to American demand, trade policy or economic conditions.

ETF Trading Price, NAV and Market Activity

The fund closed at USD 96.20 on 7 October 2026. Its same-day net asset value was approximately USD 96.08, corresponding to a premium of about 0.12%. Trading Volume reached approximately 11.7 million shares, while the median 30-day bid-ask spread was 0.01%.

Matching valuation dates is essential when assessing premiums and discounts. Comparing the 7 October closing price with the 6 October net asset value of USD 97.2452 would combine different trading sessions and would not establish a valid valuation gap.

Trading volume measures shares exchanged between market participants. It does not independently establish net fund inflows or outflows, which depend on ETF share creations and redemptions.

Expense Ratio, Dividend Income and Structural Risks

The annual expense ratio of 0.07% equates to approximately USD 7 per USD 10,000 of assets, before trading costs and taxes. Net assets totalled approximately USD 191.5 billion on 6 October.

Distributions occur twice yearly. The June payment amounted to USD 1.578060 per share, with an ex-dividend date of 15 June and payment on 18 June. At 31 August, the 30-day SEC Yield was 2.30%, compared with a trailing 12-month yield of 3.25%. These measures use different calculation periods and are not interchangeable.

Foreign Withholding taxes, regulatory differences, currency fluctuations and local equity Volatility remain material risks. Geographic breadth changes the sources of portfolio exposure without guaranteeing stronger returns or preventing losses.