- EFA has a modest standardized yield of 1.85% coupled with low volatility signified by a 0.88 3-year beta and a higher earnings yield compared to the S&P 500.
- Investing laser-focused on the developed world only, in fact, exists only on paper.
- Combined, the ten largest holdings account for only 11.9% of the overall portfolio. Only six equities have weight equal to or greater than 1%.
- The issue is that the three countries are responsible for more than 50% of the portfolio, namely Japan, the UK, and France. Japanese stocks account for more than 25% of the total holdings.
- EFA has minuscule exposure to the energy sector (only 22 stocks with a total weight of 3.25%), which somewhat immunized it against the oil price slump.
For further details see:
iShares MSCI EAFE ETF: Issues Worth Discussing