EFA - EFA: International Developed Market Equities Are Inexpensive

• EFA invests in a collection of developed market equities outside of the United States and Canada.
• A quick valuation gauge suggests global investors are under-weight equities in Europe, Australia, Asia, and the Far East, collectively.
• While I do not expect a sudden reversion, I think EFA should perform reasonably well, which is probably also a constructive sign for U.S. equities indirectly (due to positive correlations).
• EFA is probably best placed within a wider portfolio, and could be viewed as a reasonably efficient way of achieving international equity exposure and also international FX exposure.

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