iShares MSCI EAFE Value ETF (EFV) (2024)

iShares MSCI EAFE Value ETF (EFV) is a passively managed International Equity Foreign Large Value exchange-traded fund (ETF). iShares launched the ETF in 2005.

The investment seeks to track the investment results of the MSCI EAFE Value Index composed of developed market equities, excluding the U.S. and Canada, that exhibit value characteristics. The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The underlying index is a subset of the MSCI EAFE Index. Constituents of the underlying index include securities from Europe, Australasia and the Far East.

There are 3 members of the management team with an average tenure of 9.78 years: Greg Savage (2008), Jennifer Hsui (2012) and Paul Whitehead (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: MSCI EAFE Value NR USD index with a weighting of 100%. iShares MSCI EAFE Value ETF has 508 securities in its portfolio. The top 10 holdings constitute 17.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares MSCI EAFE Value ETF is part of the Equity global asset class and is within the International Equity ETF group. iShares MSCI EAFE Value ETF has 99.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.4% There is 99.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares MSCI EAFE Value ETF has 0.6% of the portfolio in cash.

iShares MSCI EAFE Value ETF has a trailing dividend yield of 4.4%, which is below the 4.6% category average. The fund normally distributes its dividend income semi-annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares MSCI EAFE Value ETF has a portfolio turnover rate of 22%, which indicates that it holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 49% for the Foreign Large Value category.

Recently, in the month of January 2024, iShares MSCI EAFE Value ETF returned -1.2%, which earned it a grade of D, as the Foreign Large Value category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

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A basic investment concept is that risk should be rewarded. Standard deviation measures the degree of variation in return experienced relative to the average return for an ETF. It notes the recent volatility of the ETF but does not explain the elements impacting the volatility. For example, portfolio concentration or exposure to foreign investments can impact the volatility and should be examined to gain an understanding of the ETF.

The total risk index relates the volatility of the ETF to the volatility of all ETFs. It can help you understand the volatility of an ETF across all categories. Ratios above 1.00 indicate higher risk than average. iShares MSCI EAFE Value ETF has an average total risk index of 1.14 because of its standard deviation of 16.9%.

The category risk index relates the volatility of an ETF to the average volatility for ETFs in the same investment category. iShares MSCI EAFE Value ETF has an above average category risk of 1.04, giving it a category risk grade of D. Letter grades of A, B, C, D and F are based upon these relative rankings.

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