iShares Core MSCI EAFE ETF: BlackRock’s second largest ETF

  The iShares Core MSCI EAFE ETF is a member of the iShares ETF series under BlackRock Group, the world’s largest asset management institution, and the second-largest ETF in the series, with an AUM as of June 17, 2022 83.5 billion US dollars, second only to the iShares Core S&P 500 ETF (IVV.P, the management scale of the same period was 272.7 billion US dollars), ranking the eighth largest ETF management scale in the United States. The iShares Core MSCI EAFE ETF was established on October 18, 2012 and listed on October 22, 2012 under the ticker IEFA.BAT. It is the youngest among the top 20 ETFs under management in the United States; Unlike ETFs of the same size that are listed on the NYSE High Growth Market or Nasdaq, the iShares Core MSCI EAFE ETF is listed on the BAST Stock Exchange. In addition, MSCI in the iShares Core MSCI EAFE ETF refers to the MSCI Country Index, while EAFT means “Europe, Australia and the Far East”, which is obviously a country capital market index that tracks the three regions mentioned above. ETFs.
  According to Wind Financial Terminal, the investment objective of the iShares Core MSCI EAFE ETF is to “track the investment results of an index of large-cap, mid-cap and small-cap stocks in the stock markets of developed countries excluding the United States and Canada,” typically by combining its assets in At least 90% are invested in the constituent securities of the index tracked, which is designed to measure the stock market performance of these large, mid-cap and small-cap stocks from Europe, Australia and the Far East.
  The performance of the iShares Core MSCI EAFE ETF may not have been satisfactory, possibly due to its broad investment coverage and the number of benchmark indices it tracks. According to Wind Financial Terminal, as of June 21, 2022, the annual yield, 6-month yield, 1-year yield, 2-year yield and 3-year yield of the iShares Core MSCI EAFE ETF are – 19.67%, -17.81%, -18.76%, 8.31% and 5.13%, while the yields of similar funds were -20.21%, -18.95%, -22.95%, 8.06% and 2.04%, respectively. In most years iShares Core MSCI The EAFE ETF can be said to have only a slight return advantage, which is also reflected in the annual yield. In the last four years with a full year, namely 2018-2021, the yield of the iShares Core MSCI EAFE ETF was -14.41%, 22.68%, 8.54%, and 11.27%, while similar funds are -16.35%, 22.09%, 13.91%, and 8.85%, respectively. The performance of the iShares Core MSCI EAFE ETF in 2020 is even worse than that of similar funds.
  In terms of industry allocation, iShares Core MSCI EAFE ETF is also different. According to Wind Financial Terminal, the ETF’s largest industry is finance, accounting for 16.46%, and the second to fifth largest industries are industry and healthcare. , optional consumption and daily consumption, the proportion of positions in the fund size is 16.22%, 12.79%, 11.16% and 10.10% respectively.
  According to Wind Financial Terminal, the country with the largest investment in the iShares Core MSCI EAFE ETF is Japan, where the investment scale accounts for more than 20% of the total fund size, reaching 23.53%, followed by the United Kingdom, Switzerland, France, and Australia, accounting for 15.23%, 9.97%, 9.56% and 8.25%, while the investment in China accounted for only 0.12%. Of course, the iShares Core MSCI EAFE ETF is a passive investment strategy, and the investment in each country is determined by the country’s weight in the MSCI index, not by the fund manager.
  According to Wind Financial Terminal, as of August 3, 2022, top holdings in the iShares Core MSCI EAFE ETF include Nestlé, ASML, Roche, AstraZeneca, Shell, LVMH Group, Novartis, Novo Nordisk, Toyota Motor and BHP, these companies belong to different countries such as Japan, Switzerland, and the Netherlands, covering health care, energy, discretionary consumption, daily consumption and information technology.
  So, who are the unit holders of the iShares Core MSCI EAFE ETF? According to public information on the Internet, as of the end of the first quarter of 2022, the largest share holder of iShares Core MSCI EAFE ETF is TIAA FSB, holding 64.735 million shares, accounting for 4.71%; other more important holders are also Including Envestnet Asset Management, Jones Financial Company, Aaron Wealth Advisors, M&T Bank and FMR, etc., holding shares of 42,190,600, 36,233,000, 15,309,600, 14,553,800 and 14,476,700, accounting for 3.07% respectively , 2.64%, 1.12%, 1.06% and 1.05%.
  In addition, according to the position report (13F) submitted by Bank of America as of the end of the first half of 2022, the bank opened 465 stocks, increased its holdings of 3,057 stocks, reduced its holdings of 3,872 stocks, and liquidated 644 stocks in the second quarter, of which iShares The Core MSCI EAFE ETF ranked fourth among Bank of America’s top five sell-offs in the second quarter.