4-Star ETFs Poised to Pop: iShares MSCI EAFE Index Fund

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 Index Fund (ASE: EFA) has earned a respected four-star ranking.

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

iShares MSCI EAFE Index facts


August 2001

Total Assets

$35 billion

Investment Approach

Seeks to provide investment results that correspond to publicly traded securities in the European, Australasian, and Far Eastern markets, as measured by the MSCI EAFE Index.

Expense Ratio


Dividend Yield


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

(12.6%) / 7.3% / (5.1%)

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

Vodafone Group (NAS: VOD) (1.4%)
BP (NYS: BP) (1.4%)
BHP Billiton (NYS: BHP) (1.2%)


Vanguard FTSE All-World ex-U.S. (NYS: VEU)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 95% of the 539 members who have rated iShares MSCI EAFE Index believe the ETF will outperform the S&P 500 going forward. These bulls include A6EIntruder and FlorisHJ.

Having gotten on board a couple of years ago, A6EIntruder succinctly summed up the bull case: "Looking longer term, I like low cost ... exposure to the EAFE and diversity of this ETF."

iShares MSCI EAFE Index even sports a juicy dividend yield of 3.3%. That's higher than that of other foreign blend ETFs like Vanguard MSCI EAFE (2.8%) and Vanguard FTSE All-World ex-U.S. (2.4%).

CAPS member FlorisHJ expands on the opportunity:

Nice fund giving exposure to "the world" -- everything but the US. If you think the US economy will outgrow the world, then this is not the fund for you. The rest of us stand to gain with some diversification here -- with a built-in currency play protecting against weak dollar.

What do you think about iShares MSCI EAFE Index, 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!

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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. 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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