Could a $1,000 Investment in the iShares Core MSCI EAFE ETF (IEFA) Lead to Millionaire Status? (Hint: It’s Possible.)
Investment Opportunity: The iShares Core MSCI EAFE ETF offers exposure to thousands of foreign stocks, excluding the U.S. and Canada, with a low expense ratio of 0.07%, making it an attractive option for diversification in a portfolio.
Performance Overview: The ETF has shown solid performance with average annual gains of 15.95% over the past year and 7.64% since its inception in 2012, although past performance does not guarantee future results.
Wealth Building Potential: Regular investments in the ETF could potentially lead to millionaire status over time, especially if invested diligently and at higher amounts, with projections indicating significant growth over 25 to 40 years.
Diversification Benefits: Investing in this ETF can help mitigate risks associated with U.S. stock market fluctuations, as non-U.S. stocks may not be as affected during market corrections.
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Uncommon Signal Indicates Emerging Markets May Be Entering a Prolonged Outperformance Phase
Emerging Markets vs. Developed Markets: The ratio of emerging markets to developed markets stocks has hit a historic low, similar to previous instances in 1988 and 2002, which led to significant outperformance of emerging markets in subsequent years.
Current Investment Landscape: Despite the focus on U.S. tech stocks and the S&P 500, there are emerging opportunities in international stocks, particularly in emerging markets, which have shown strong year-to-date returns compared to their developed counterparts.
Valuation Discrepancies: The current price-to-earnings ratio for the iShares Core MSCI Emerging Markets ETF is significantly lower than that of the Vanguard S&P 500 ETF, indicating a potential value opportunity for investors in emerging markets.
Macro Economic Conditions: Evolving macroeconomic conditions, including moderating inflation and declining interest rates, may create a favorable environment for emerging markets, suggesting that a shift in market leadership could be on the horizon.
SCHF vs. IEFA: Which ETF Offers Lower Costs and a Better Dividend Yield?
Comparison of ETFs: The Schwab International Equity ETF (SCHF) offers a higher dividend yield (3.5%) compared to the iShares Core MSCI EAFE ETF (IEFA) at 2.9%, while SCHF has a lower expense ratio of 0.03% versus IEFA's 0.07%.
Volatility and Holdings: IEFA holds more stocks (2,600) and has a lower beta, indicating less volatility, while SCHF has a more concentrated portfolio with 1,501 companies, focusing on broad diversification.
Sector Exposure: Both ETFs have significant exposure to financial services (22-24%) and similar top holdings, including ASML and Roche, but differ in their sector allocations, with SCHF leaning more towards technology.
Investment Appeal: Both funds are suitable for investors seeking international exposure, but SCHF may attract those focused on lower costs and higher income, while IEFA offers broader market coverage.
Reasons for Shifting My Investments Away from U.S. Stocks, Following Warren Buffett's Example
Investment Strategy Shift: The author has reduced their investment in U.S. stocks in favor of international markets, despite the S&P 500's 17% increase in 2025.
Performance of Non-U.S. Markets: Data indicates that investing in non-U.S. markets has yielded significantly higher returns compared to U.S. stocks this year.
Significant ETF Inflows: IEFA, SPOT, SE, TEVA
52-Week Range Analysis: IEFA's share price has a 52-week low of $66.95 and a high of $89.98, with the last trade recorded at $88.44.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand.
Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (units destroyed), impacting the underlying holdings.
Disclaimer: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
IEFA, XLVI: Significant Inflows into ETFs
ETF Inflows Overview: The iShares Core MSCI EAFE ETF saw the largest inflow with an addition of 15 million units, marking a 0.8% increase week over week.
Performance of Underlying Components: In morning trading, Spotify Technology and Sea, significant components of the IEFA ETF, experienced declines of approximately 1.4% and 0.9%, respectively.
Percentage Change in Inflows: The Health Care Select Sector SPDR Premium Income Fund had the highest percentage increase in inflows, adding 20,000 units, which represents a 40.0% rise in outstanding units.
Market Activity: The SPDR Select Sector Fund - Health Care, a major component of the XLVI ETF, saw a slight increase of about 0.2% in morning trading.
iShares Core MSCI EAFE ETF (IEFA) Targets Developed Markets, While Vanguard FTSE All-World ex-US ETF (VEU) Takes a Global Approach
Comparison of ETFs: The iShares Core MSCI EAFE ETF (IEFA) focuses on developed markets outside the U.S. and Canada, while the Vanguard FTSE All-World ex-US ETF (VEU) includes both developed and emerging markets, with IEFA having a slightly higher expense ratio and dividend yield.
Sector Allocation and Holdings: IEFA's portfolio is concentrated in Financial Services, Industrials, and Healthcare, with top holdings like ASML and Nestlé, whereas VEU has a broader sector reach with significant investments in Taiwan Semiconductor, Tencent, and Alibaba.
Performance and Returns: Since 2012, both ETFs have shown similar total returns, with IEFA rising 162% and VEU 142%, and they share several top holdings, indicating a comparable investment profile.
Dividend Growth: IEFA has outperformed VEU in terms of dividend growth, with a 10.5% annual increase over the last five years compared to VEU's 8.6%, making IEFA potentially more attractive for income-focused investors.
Uncommon Signal Indicates Emerging Markets May Be Entering a Prolonged Outperformance Phase
Emerging Markets vs. Developed Markets: The ratio of emerging markets to developed markets stocks has hit a historic low, similar to previous instances in 1988 and 2002, which led to significant outperformance of emerging markets in subsequent years.
Current Investment Landscape: Despite the focus on U.S. tech stocks and the S&P 500, there are emerging opportunities in international stocks, particularly in emerging markets, which have shown strong year-to-date returns compared to their developed counterparts.
Valuation Discrepancies: The current price-to-earnings ratio for the iShares Core MSCI Emerging Markets ETF is significantly lower than that of the Vanguard S&P 500 ETF, indicating a potential value opportunity for investors in emerging markets.
Macro Economic Conditions: Evolving macroeconomic conditions, including moderating inflation and declining interest rates, may create a favorable environment for emerging markets, suggesting that a shift in market leadership could be on the horizon.
SCHF vs. IEFA: Which ETF Offers Lower Costs and a Better Dividend Yield?
Comparison of ETFs: The Schwab International Equity ETF (SCHF) offers a higher dividend yield (3.5%) compared to the iShares Core MSCI EAFE ETF (IEFA) at 2.9%, while SCHF has a lower expense ratio of 0.03% versus IEFA's 0.07%.
Volatility and Holdings: IEFA holds more stocks (2,600) and has a lower beta, indicating less volatility, while SCHF has a more concentrated portfolio with 1,501 companies, focusing on broad diversification.
Sector Exposure: Both ETFs have significant exposure to financial services (22-24%) and similar top holdings, including ASML and Roche, but differ in their sector allocations, with SCHF leaning more towards technology.
Investment Appeal: Both funds are suitable for investors seeking international exposure, but SCHF may attract those focused on lower costs and higher income, while IEFA offers broader market coverage.
Reasons for Shifting My Investments Away from U.S. Stocks, Following Warren Buffett's Example
Investment Strategy Shift: The author has reduced their investment in U.S. stocks in favor of international markets, despite the S&P 500's 17% increase in 2025.
Performance of Non-U.S. Markets: Data indicates that investing in non-U.S. markets has yielded significantly higher returns compared to U.S. stocks this year.
Significant ETF Inflows: IEFA, SPOT, SE, TEVA
52-Week Range Analysis: IEFA's share price has a 52-week low of $66.95 and a high of $89.98, with the last trade recorded at $88.44.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand.
Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (units destroyed), impacting the underlying holdings.
Disclaimer: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
IEFA, XLVI: Significant Inflows into ETFs
ETF Inflows Overview: The iShares Core MSCI EAFE ETF saw the largest inflow with an addition of 15 million units, marking a 0.8% increase week over week.
Performance of Underlying Components: In morning trading, Spotify Technology and Sea, significant components of the IEFA ETF, experienced declines of approximately 1.4% and 0.9%, respectively.
Percentage Change in Inflows: The Health Care Select Sector SPDR Premium Income Fund had the highest percentage increase in inflows, adding 20,000 units, which represents a 40.0% rise in outstanding units.
Market Activity: The SPDR Select Sector Fund - Health Care, a major component of the XLVI ETF, saw a slight increase of about 0.2% in morning trading.
iShares Core MSCI EAFE ETF (IEFA) Targets Developed Markets, While Vanguard FTSE All-World ex-US ETF (VEU) Takes a Global Approach
Comparison of ETFs: The iShares Core MSCI EAFE ETF (IEFA) focuses on developed markets outside the U.S. and Canada, while the Vanguard FTSE All-World ex-US ETF (VEU) includes both developed and emerging markets, with IEFA having a slightly higher expense ratio and dividend yield.
Sector Allocation and Holdings: IEFA's portfolio is concentrated in Financial Services, Industrials, and Healthcare, with top holdings like ASML and Nestlé, whereas VEU has a broader sector reach with significant investments in Taiwan Semiconductor, Tencent, and Alibaba.
Performance and Returns: Since 2012, both ETFs have shown similar total returns, with IEFA rising 162% and VEU 142%, and they share several top holdings, indicating a comparable investment profile.
Dividend Growth: IEFA has outperformed VEU in terms of dividend growth, with a 10.5% annual increase over the last five years compared to VEU's 8.6%, making IEFA potentially more attractive for income-focused investors.
