iShares Core EAFE ETF Returns 22.88% in 12 Months, Lags S&P Over Five Years
IEFA returned 22.88% over the trailing 12 months, outperforming the S&P 500’s 17.69%, but its five-year gain of 52.08% trails the S&P’s 75.69%. The ETF holds $172.4 billion in assets, charges a 0.07% fee and offers a 2.37% dividend yield, with notable currency and sector exposures.
1. Performance Comparison
Over the past 12 months, IEFA delivered a 22.88% return versus the S&P 500’s 17.69%, driven by strength in international developed markets. However, over a full five-year window, its total gain of 52.08% trails the S&P 500’s 75.69%, underscoring the persistence of a longer-term performance gap.
2. Fund Profile and Holdings
IEFA tracks the MSCI EAFE IMI Index, offering exposure to roughly 3,000 large-, mid- and small-cap stocks across developed markets outside the US and Canada. The fund holds $172.4 billion in assets with a 0.07% expense ratio, and its top country weights are Japan (23.89%), the UK (14.53%), France (9.64%), Switzerland (8.88%) and Germany (8.87%).
3. Income and Dividend Growth
The ETF provides a 2.37% dividend yield, with total payouts rising from $2.25 per share in 2023 to $3.18 in 2025. Dividends from financials and industrials sectors have underpinned steady income, adding an attractive yield component compared with US-focused funds.
4. Risks and Diversification Role
IEFA’s unhedged currency exposure means a stronger US dollar can erode returns, while its underweight to technology can be a disadvantage when US mega-caps lead. Investors typically allocate IEFA as a 10–20% international sleeve to diversify equity risk and capture global dividend growth.