The iShares Core MSCI EAFE ETF (IEFA) is a widely held fund providing broad exposure to large, mid, and small-cap companies across developed markets outside the United States and Canada. It includes holdings from Europe, Asia, and Australia, making it a cornerstone allocation for investors seeking global diversification.
| Rank | Symbol | Company | % Weight |
|---|---|---|---|
| 1 | ASML | ASML Holding NV | 1.68% |
| 2 | SAP | SAP SE | 1.21% |
| 3 | AZN | AstraZeneca PLC | 1.12% |
| 4 | ROG | Roche Holding AG | 1.08% |
| 5 | HSBA | HSBC Holdings PLC | 1.07% |
| 6 | NOVN | Novartis AG | 1.07% |
| 7 | NESN | Nestlé S.A. | 1.03% |
| 8 | SHEL | Shell PLC | 0.93% |
| 9 | SIE | Siemens AG | 0.89% |
| 10 | NOVO.B | Novo Nordisk A/S | 0.80% |
| 11 | CBA | Commonwealth Bank of Australia | 0.80% |
| 12 | 7203 | Toyota Motor Corp | 0.79% |
| 13 | 8306 | Mitsubishi UFJ Financial Group | 0.78% |
| 14 | 6758 | Sony Group Corp | 0.76% |
| 15 | ALV | Allianz SE | 0.71% |
| 16 | SU | Schneider Electric SE | 0.68% |
| 17 | MC | LVMH Moët Hennessy Louis Vuitton | 0.67% |
| 18 | SAN | Banco Santander SA | 0.67% |
| 19 | ULVR | Unilever PLC | 0.63% |
| 20 | BHP | BHP Group Ltd | 0.60% |
| 21 | AIR | Airbus Group | 0.60% |
| 22 | RR. | Rolls-Royce Holdings PLC | 0.58% |
| 23 | UBSG | UBS Group AG | 0.55% |
| 24 | SAF | Safran SA | 0.55% |
| 25 | TTE | TotalEnergies SE | 0.53% |
As of 2025, IEFA has delivered an impressive 25.3% year-to-date return with a 35.4% CAGR over the measured period. This strong performance reflects both the rebound of international equities and renewed investor appetite for diversification beyond U.S. markets. Currency stability and solid earnings in Europe and Asia have further supported gains.
The ETF’s portfolio features global leaders such as ASML, SAP, and AstraZeneca, alongside major financials like HSBC and consumer staples giants like Nestlé. This mix ensures exposure to industries and companies that dominate both regional economies and international trade.
1. ASML Holdings NV (ASML)
ASML is IEFA’s largest holding, at 1.68% of the fund. The Dutch company dominates the market for lithography machines used in semiconductor manufacturing, making it an essential supplier to global chipmakers. Its extreme ultraviolet (EUV) technology is unmatched, positioning ASML at the forefront of semiconductor innovation.
In recent years, demand for semiconductors across AI, data centers, and consumer electronics has accelerated ASML’s growth. Despite high barriers to entry and geopolitical scrutiny, the company continues to expand its order backlog and solidify its technological lead.
For IEFA investors, ASML provides exposure to one of the most critical players in the global technology supply chain, offering both long-term growth and resilience.
2. SAP SE (SAP)
SAP is the second-largest holding in IEFA, accounting for 1.21% of the fund’s assets. As Europe’s leading enterprise software company, SAP delivers cloud and digital solutions that underpin the operations of thousands of businesses worldwide. Its transition from on-premise to cloud-based models has reinvigorated growth and improved recurring revenue.
The company’s strength lies in its integrated approach to enterprise resource planning (ERP), which keeps it deeply embedded in clients’ operations. Investments in artificial intelligence and analytics are expected to further strengthen SAP’s role in digital transformation.
For investors in IEFA, SAP provides steady exposure to software-driven growth with European roots, balancing technology’s global expansion with dependable enterprise adoption.
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3. AstraZeneca PLC (AZN)
AstraZeneca, at 1.12% of the fund, represents IEFA’s third-largest holding. The U.K.-based pharmaceutical company is a leader in oncology, immunology, and cardiovascular treatments. Its innovation pipeline and global distribution channels have positioned it as a major force in healthcare.
Strong sales from oncology drugs and expansion in emerging markets have bolstered revenue, while strategic partnerships in biotech continue to support long-term growth. AstraZeneca has also benefited from a reputation for scientific leadership, which has strengthened investor confidence.
Within IEFA, AstraZeneca provides exposure to global healthcare innovation, offering stability through defensive demand and upside through breakthrough therapies.
Why IEFA Is a Big Name
IEFA’s top three holdings, ASML, SAP, and AstraZeneca, demonstrate the ETF’s balanced approach to international diversification. These companies exemplify the strength of Europe’s technology and healthcare sectors, both of which are critical drivers of long-term growth.
The remainder of the fund provides exposure to financials, energy, consumer staples, and industrials, including global leaders such as HSBC, Nestlé, Shell, and Siemens. This mix ensures that IEFA captures both cyclical recovery potential and defensive stability.
Key Insights
- Top holdings: Anchored by ASML, SAP, and AstraZeneca, spanning technology, enterprise software, and healthcare.
- Strong performance: The 25.3% YTD return highlights broad-based strength across developed markets.
- Diversified footprint: Includes Europe, Japan, and Australia with exposure to both cyclical and defensive sectors.
- Portfolio role: Complements U.S. equities by adding global balance and sector diversity.
Why You Should Invest In Consumer Staples
The iShares Core MSCI EAFE ETF (IEFA) has delivered a 25.3% YTD return, benefiting from broad strength across developed markets outside the U.S. and Canada. It serves as a cost-efficient way for investors to access global leaders across multiple industries.
With holdings spread across Europe, Japan, and Australia, the ETF offers diversification that complements U.S.-centric portfolios. Its exposure to both growth drivers and defensive sectors makes it a flexible tool for long-term allocation.
For investors seeking international diversification without single-country risk, IEFA remains one of the most effective and widely used ETFs. Its performance in 2025 underscores its value as a global building block.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
