iShares EAFE ETF Gains 2.34% YTD, Outpaces S&P with 21.82% 12-Month Return
EAFE ETF has risen 2.34% year-to-date with a 21.82% trailing twelve-month return, outpacing the S&P 500’s 17.4% return on dollar weakness and a shift to cheaper international valuations. The unhedged fund holds $77.8 billion, charges a 32 bps fee and yields 2.29% from $3.25 distributions, but faces volatility from currency swings.
1. YTD Outperformance and Trailing Returns
The iShares EAFE ETF has climbed 2.34% since January and delivered a 21.82% return over the past year, surpassing the S&P 500’s 17.4% gain. This divergence reflects a weaker dollar and investor rotation into undervalued developed-market equities outside the US and Canada.
2. Fund Structure and Cost Profile
Launched in 2001, the fund tracks the MSCI EAFE Index across Europe, Australasia and the Far East, managing $77.8 billion in assets at a 0.32% expense ratio. Its top holdings include ASML, Roche, AstraZeneca, Novartis, HSBC, Nestle, Toyota and Siemens, with low 4% annual turnover.
3. Income Generation and Currency Risk
EAFE distributes $3.25 annually in 2025 dividends for a 2.29% yield paid semi-annually, offering supplemental income rather than bond-level returns. The unhedged structure amplifies volatility as euro, yen and pound fluctuations flow directly into performance.