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EFA - ETF AI Analysis

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EFA

iShares MSCI EAFE ETF (EFA)

Rating:66Neutral
Price Target:
EFA, the iShares MSCI EAFE ETF, has a solid overall rating, reflecting a portfolio led by high-quality global companies with generally strong financial performance. Major holdings like Novartis, HSBC, and AstraZeneca support the fund’s quality through robust profitability, positive earnings outlooks, and reasonable valuations, while diversified exposure across sectors and regions helps manage risk. Some positions, such as Shell and BHP, face short-term technical or growth challenges, which can temper returns and highlight the risk that parts of the portfolio may experience periods of weaker momentum even when fundamentals are sound.
Positive Factors
Strong Overall Performance
The ETF has shown steady gains over the year and in recent months, indicating solid recent performance for investors.
Leading Global Companies in Top Holdings
Several of the largest positions, such as ASML, HSBC, BHP, and other major multinationals, have delivered strong year-to-date results that support the fund’s returns.
Broad International Diversification
The fund spreads its investments across many developed countries and sectors, which helps reduce the impact of weakness in any single market or industry.
Negative Factors
Moderate Fee Level
The expense ratio is not extremely high but is above the very lowest-cost index ETFs, meaning a small drag on long-term returns compared with cheaper options.
Exposure to Lagging Health Care Holding
AstraZeneca, one of the top positions, has shown weak year-to-date performance, which slightly weighs on the fund’s overall momentum.
Heavy Tilt Toward Certain Countries
Large weights in markets like Japan and the UK mean the fund is more sensitive to economic and market conditions in those countries than in others.

EFA vs. SPDR S&P 500 ETF (SPY)

EFA Summary

The iShares MSCI EAFE ETF (EFA) is a fund that invests in stocks from developed countries outside the U.S. and Canada, following the MSCI EAFE index. It owns large and mid-sized companies across Europe, Japan, Australia, and other regions, in many sectors like finance, industry, health care, and technology. Well-known holdings include Nestlé and Shell. Someone might invest in EFA to diversify their portfolio internationally and reduce reliance on the U.S. market. A key risk is that its value can rise or fall with global stock markets and currency swings in foreign countries.
How much will it cost me?The iShares MSCI EAFE ETF (EFA) has an expense ratio of 0.32%, meaning you’ll pay $3.20 per year for every $1,000 invested. This cost is slightly higher than average for passively managed ETFs because it provides broad exposure to developed international markets, which can involve higher operational costs compared to U.S.-focused funds.
What would affect this ETF?The iShares MSCI EAFE ETF could benefit from economic recovery in developed markets outside North America, particularly in Europe and Asia, as well as growth in sectors like financials and technology, which are heavily represented in its holdings. However, challenges such as rising interest rates, geopolitical tensions, or regulatory changes in key regions could negatively impact its performance, especially in sectors like financials and energy. Diversification across industries and countries provides some resilience, but global economic uncertainty remains a key risk.

EFA Top 10 Holdings

EFA leans heavily on a handful of global blue chips, with ASML acting as a key engine thanks to its strong, rising trend over the past few months in the semiconductor space. Big European banks like HSBC and Japan’s Mitsubishi UFJ are also pulling their weight, giving the fund a solid financial backbone. Health care names Roche and Novartis are steady contributors, while AstraZeneca and consumer giant Nestlé have been losing a bit of steam and modestly dragging on returns. Overall, it’s a diversified, developed-markets play outside North America, with no single stock dominating the story.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
ASML Holding NV2.91%$2.26B€547.84B141.04%
76
Outperform
HSBC Holdings1.66%$1.29B£270.81B71.70%
80
Outperform
Roche Holding AG1.39%$1.08B$348.96B38.80%
73
Outperform
Novartis AG1.30%$1.01BCHF231.75B34.41%
80
Outperform
Nestlé SA1.17%$910.98MCHF208.38B13.38%
71
Outperform
Shell (UK)1.17%$909.28M£187.43B24.99%
73
Outperform
AstraZeneca1.17%$908.74M$264.13B13.76%
80
Outperform
Siemens1.11%$859.90M€215.45B31.61%
74
Outperform
Mitsubishi UFJ Financial Group1.08%$842.76M¥39.93T51.41%
76
Outperform
BHP Group Ltd0.97%$757.66MAU$306.42B54.07%
68
Neutral

EFA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
103.36
Positive
100DMA
101.02
Positive
200DMA
98.30
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EFA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 104.02, equal to the 50-day MA of 103.36, and equal to the 200-day MA of 98.30, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EFA.

EFA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$78.57B0.32%
66
Neutral
$191.63B0.07%
65
Neutral
$29.29B0.33%
67
Neutral
$12.04B0.20%
65
Neutral
$11.26B0.24%
67
Neutral
$10.89B0.28%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EFA
iShares MSCI EAFE ETF
105.58
20.06
23.46%
IEFA
iShares Core MSCI EAFE ETF
EFV
iShares MSCI EAFE Value ETF
ESGD
iShares ESG Aware MSCI EAFE ETF
JIRE
JPMorgan International Research Enhanced Equity ETF
FENI
Fidelity Enhanced International ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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