iShares MSCI EAFE ETF (EFA) Top 25 Holdings

The iShares MSCI EAFE ETF (EFA) serves as a key vehicle for U.S. investors seeking exposure to developed markets outside North America, spanning Europe, Australia, and parts of Asia. Its broad diversification offers a counterweight to U.S.-centric portfolios, providing access to both blue-chip multinationals and regional leaders. In 2025, the ETF has demonstrated resilience and steady performance despite currency headwinds and macroeconomic uncertainty.

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Year-to-date, EFA has posted a 22.0% price return with a 31.4% CAGR over the measured period, showing strength in global equities outside the U.S. While U.S. markets have dominated headlines, EFA’s composition of European industrials, Asian consumer giants, and global healthcare leaders has quietly delivered compelling results. The portfolio’s mix of established household names and sector diversity is a reminder of the value in looking beyond U.S. borders.

With holdings spanning information technology, financials, healthcare, consumer staples, and energy, EFA captures the heartbeat of the global economy. Investors gain exposure to structural themes such as semiconductor equipment, pharmaceuticals, luxury goods, and consumer brands that enjoy global demand. This mix not only supports steady performance but also provides insulation against the idiosyncratic risks of single-country exposure.

1. ASML Holding NV (ASML)

ASML is EFA’s largest holding, accounting for 1.93% of the fund and a market value of $1.28 billion. As the sole supplier of extreme ultraviolet (EUV) lithography machines, ASML is essential to the production of advanced semiconductors. This unique position gives it a near-monopoly in high-end chipmaking equipment, making the company one of the most strategically important in the world.

Demand for ASML’s equipment has surged as industries from AI to electric vehicles require increasingly powerful chips. Governments have also recognized ASML’s importance, with export controls underscoring its role in the geopolitical competition over technology. Despite these pressures, its order backlog remains strong, supported by a growing customer base across the semiconductor supply chain.

ASML’s importance goes beyond quarterly earnings, it is a foundational enabler of global technology. The company’s growth trajectory and pricing power reflect both the scarcity of its products and the necessity of semiconductors in modern economies. Within EFA, ASML provides a high-growth anchor that captures the cutting edge of innovation.

2. SAP (SAP)

SAP is the second-largest holding in EFA, accounting for 1.42% of the fund and having a market value of $939 million. The German software leader has built its reputation as the backbone of enterprise resource planning (ERP) systems, which are used by companies worldwide to run their core operations. Its transition to cloud-based platforms has been central to its renewed growth profile, enabling recurring revenues and a more scalable business model.

The company’s push into AI-enabled business applications and cloud-native solutions has strengthened its long-term positioning. By embedding intelligence into processes such as supply chain, HR, and finance, SAP has expanded its value proposition beyond efficiency to encompass areas of strategic decision-making. These moves have kept the company highly relevant in a competitive software landscape.

SAP’s inclusion in EFA represents more than just technology exposure, it reflects Europe’s leadership in enterprise solutions that power global business. Its combination of steady revenue, high switching costs, and growing cloud adoption provides stability to the fund’s portfolio while positioning SAP for further growth in the digital transformation era.

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3. HSBC Holdings (HSBA)

HSBC is EFA’s third-largest holding, with a 1.23% weight and a market value of $815 million. Known as one of the world’s largest banking and financial services institutions, HSBC has a global footprint spanning over 60 countries. Its strength lies in connecting Asia, Europe, and the Middle East, making it a central player in cross-border finance.

The bank has navigated a challenging macroeconomic backdrop, marked by fluctuating interest rates, regulatory pressures, and uneven global growth. Yet its balance sheet remains robust, and its pivot toward Asia continues to pay off. By emphasizing wealth management and trade finance in markets like Hong Kong and Singapore, HSBC aligns itself with regions experiencing faster structural growth.

For EFA investors, HSBC offers exposure to global commerce and financial flows that few institutions can match. Its diversification across regions and business lines adds a measure of resilience, while its dividend policy enhances the income component of the ETF. HSBC’s positioning ensures that EFA captures the ongoing integration of global capital markets.

What EFA Really Owns

EFA’s structure reflects the strength of multinational companies that dominate their sectors and often serve as bellwethers for global growth. Its top holdings highlight Europe’s strengths in technology and healthcare while also emphasizing financial connectivity across continents. Together, ASML, SAP, and HSBC provide investors with growth, stability, and income potential, a balanced trio in a diversified ETF.

While not immune to volatility, the ETF has weathered market swings in 2025 with notable consistency. Its ability to rebound from the April correction and track higher into September underscores the durability of developed-market equities. For investors seeking international diversification without venturing into emerging markets, EFA remains one of the most liquid and reliable options.

Key Insights

• Global diversification at work: EFA’s top holdings, spanning semiconductors, enterprise software, and international banking, illustrate the breadth of exposure investors gain.
• Structural growth drivers: ASML anchors the fund in the global semiconductor boom, SAP rides the wave of digital transformation, and HSBC ties the portfolio to global trade and finance.
• Resilient performance: With a 22% YTD return, EFA has demonstrated its ability to deliver steady gains while navigating currency headwinds and regional challenges.
• Long-term complement: The ETF’s sector balance and multinational focus make it a durable core holding for investors seeking international developed-market exposure.

Why You Should Invest In EFA

International diversification is once again proving its worth in a year when U.S. markets have faced tariff shocks and geopolitical uncertainty. EFA provides a straightforward and cost-effective way to tap into global leaders whose revenues extend far beyond their home countries. Its strong YTD performance suggests that investors are recognizing the importance of balancing U.S. exposure with international allocations.

As Europe continues its industrial modernization, Asia drives consumer demand, and global healthcare and technology needs expand, EFA is well-positioned to benefit from multiple long-term growth drivers. The ETF’s depth of holdings allows it to capture these structural shifts while providing broad sector balance.

For investors with a U.S.-heavy portfolio, EFA serves as an essential complement, offering exposure to companies that shape the global economy in ways domestic markets cannot replicate. The fund’s consistency, liquidity, and performance track record reinforce its role as a cornerstone allocation for globally minded investors.

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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!