5-Star ETFs Poised to Pop: iShares MSCI EAFE Value

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares MSCI EAFE Value Index Fund (NYS: EFV) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at iShares MSCI EAFE Value and see what CAPS investors are saying about the ETF right now.

iShares MSCI EAFE Value facts


August 2005

Total Assets

$1.1 billion

Investment Approach

Seeks to replicate the MSCI EAFE Value Index, which consists of securities most representing the value style (low price multiples, high dividend yields, and lower forecasted growth rates).

Expense Ratio


1-Year / 3-Year / 5-Year Annual Returns

(15.9%) / 6% / (7.1%)

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Vodafone Group (NAS: VOD) (2.8%)
BP (NYS: BP) (2.8%)
Novartis (NYS: NVS) (2.6%)

Dividend Yield



iShares Dow Jones International Select Dividend (NYS: IDV)
WisdomTree DEFA (NYS: DWM)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, all but one of the 98 members who have rated iShares MSCI EAFE Value believe the ETF will outperform the S&P 500 going forward. These bulls include All-Stars Equityphile and zwalt99, both of whom are ranked in the top 10% of our community.

Having gotten on board a few years ago, EquityPhile summed up the opportunity: "A very solid long term investment. I expect the value orientation to boost the rate of return over the next several decades. ... Provides balance to a portfolio and has some very good holdings."

iShares MSCI EAFE Value even sports an expense ratio of 0.40%. That's lower than that of other foreign value ETFs like iShares Dow Jones International Select Dividend (0.50%) and WisdomTree DEFA (0.48%).

CAPS All-Star zwalt99 elaborates on the bull case:

I don't know if this will actually outperform the S&P, but it at least offers diversification against it. It has quite a few aspects I like about it -- low expense ratio (.4%), good yield (>4%), and I find foreign companies and large cap companies to be a pain to analyze and pick myself. This is nothing but foreign AND large cap.

What do you think about iShares MSCI EAFE Value, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackiShares MSCI EAFE Value?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Vodafone and Novartis. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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