EFA provides highly accessible exposure to probably the best-known international equity index: MSCI`s EAFE. The fund delivers excellent exposure to developed equities, albeit with some definitional differences from peers. It excludes North America and South Korea, while Vanguard`s VEA includes South Korea and Schwab`s SCHF includes both countries. EFA holds only large- and midcap stocks, sister fund IEFA offers similar geographic exposure while including small-caps in marketlike proportion. Launched in 2001, the fund was first in the space. Investors should consider all in costs when comparing the fund to other ETFs in the space. As EFA tends to claw back much of its fee through skillful portfolio management and securities lending revenue sharing. In all, EFA delivers excellent coverage of international equities.
