EFA — iShares MSCI EAFE ETF
iShares (BlackRock) · Expense Ratio: 0.33% · International Developed · 24bp above the International Developed category average of 0.09%
Key Facts
| Ticker | EFA |
| Full Name | iShares MSCI EAFE ETF |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.33% |
| Category | International Developed |
| Assets Under Management | $55B |
| Inception Year | 2001 (25 years ago) |
| Number of Holdings | 790 |
| Dividend Yield | ~2.4% (moderate) |
| Top Holdings | NVO, ASML, NVS |
What Is EFA?
EFA, managed by iShares (BlackRock), launched in 2001, is a major ETF with deep liquidity and tight bid-ask spreads in the International Developed category. International developed market stock ETF covering established non-US markets. With $55B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
EFA in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to international developed within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. This fund complements a broad-market core — use it as a tilt, not the foundation. Keep your core holdings at 70-80% and use this for targeted exposure.
Cost Analysis: How EFA's 0.33% Fee Affects Your FIRE Timeline
At 0.33%, EFA is relatively expensive. Annual cost on a $100K position: $330. Over 30 years, fees could consume approximately 2% of total returns. On a $1M FIRE portfolio, cumulative fees approach $33,000. Compare with lower-cost peers in International Developed: .
Dividend Income Potential
With a moderate dividend yield of approximately 2.4%, here's what EFA could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $2,400/year | $200/month |
| $250,000 | $6,000/year | $500/month |
| $500,000 | $12,000/year | $1,000/month |
| $1,000,000 | $24,000/year | $2,000/month |
Frequently Asked Questions About EFA
What is the expense ratio for EFA?
EFA has an expense ratio of 0.33%. This is relatively expensive — on a $100K portfolio, annual fees are $330. 24bp above the international developed category average of 0.09%.
Is EFA good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to international developed within a FIRE portfolio built around a broad-market core. Its 0.33% expense ratio is relatively expensive for the International Developed category.
How does the 0.33% fee affect long-term returns?
At 0.33%, annual costs are $330/$100K. Over 30 years, this could reduce your final portfolio value by 2% or more. For a $1M FIRE portfolio, that's $19,800+ in lost compound growth.
Similar ETFs in International Developed
- VXUS — Vanguard Total International Stock ETF (0.07% · Core Holding)
- IXUS — iShares Core MSCI Total International Stock ETF (0.07% · Core Holding)
- VEA — Vanguard FTSE Developed Markets ETF (0.06% · Core Holding)
- IEFA — iShares Core MSCI EAFE ETF (0.07% · Core Holding)
- SCHF — Schwab International Equity ETF (0.06% · Core Holding)
- SPDW — SPDR Portfolio Developed World ex-US ETF (0.04% · Core Holding)
- IDEV — iShares Core MSCI International Developed Markets ETF (0.04% · Core Holding)
- IEV — iShares Europe ETF (0.1% · Satellite Position)
- VGK — Vanguard FTSE Europe ETF (0.08% · Core Holding)