IEFA: Low Starting Valuations Offset Weak Growth Outlook

  • The iShares Core MSCI EAFE ETF invests in developed market equities outside the United States and Canada. I estimate countries in which IEFA invests will only deliver 1% GDP growth in 2025, 0.4% weaker than the United States. Even so, compared with the SPY, IEFA offers a more attractive earnings and dividend yield, more than offsetting weaker future growth.