BlackRock’s iShares also offers a similar option, the iShares Core MSCI EAFE ETF (NYSEArca: IEFA). However, IEFA does not include exposure to Canada and focuses on EAFE or developed Europe, Australia, Asia and Far East countries.
“International markets have the potential to provide growth and diversification in different economic cycles,” Heidi Richardson, Head of Investment Strategy for U.S. iShares, said in a note. “Investors looking for a more complete international exposure may consider IDEV given it includes Canada, a large developed equity market representing around 9% of the total market outside the U.S. Canadian equity markets have sector weightings towards financials and commodities, which may also appeal.”
IDEV’s top country weights include Japan 22.7%, U.K. 16.2%, Canada 9.0%, France 8.5%, Germany 8.1%, Switzerland 7.4%, Australia 6.6%, Hong Kong 3.1%, Netherlands 3.0%, Sweden 2.9%, Spain 2.9% and Italy 2.2%.
The fund’s sector weights include financials 21.8%, industrials 14.9%, consumer discretionary 11.6%, consumer staples 10.2%, health care 9.4%, materials 8.6%, energy 6.3%, information technology 6.0%, real estate 4.4%, telecom 3.8% and utilities 3.0%. Top holdings include Nestle SA 1.4%, Roche Holding 1.0%, Novartis 1.0%, HSBC Holdings 0.9% and Toyota Motor 0.8%.
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