At a glance
- The Gold rating reflects the fund's low fee and the breadth of its index, which covers 99% of the investable market across 21 overseas developed countries and usually holds about 2,600 stocks.
- The index returned 9.3% annualized in the 10 years through October 2026, 4 basis points a year ahead of the narrower MSCI EAFE Index, according to the report.
- For advisors, the fund would miss an emerging-market rebound because it holds no emerging-market stocks.
The iShares Core MSCI EAFE exchange-traded fund earned a Morningstar Gold rating for its low fee and broad developed-markets portfolio, though the expense ratio was not disclosed, according to Morningstar — Financial Advice.
The Gold rating reflects the fund's low fee and the breadth of its index, which covers 99% of the investable market across 21 overseas developed countries and usually holds about 2,600 stocks. Its 10 largest positions are typically under 15% of assets.
The index returned 9.3% annualized in the 10 years through October 2026, 4 basis points a year ahead of the narrower MSCI EAFE Index, according to the report.
For advisors, the fund would miss an emerging-market rebound because it holds no emerging-market stocks. Competing foreign-stock portfolios usually carry less than 10% in emerging markets, and emerging markets trailed developed markets from 2021 through 2023, which the report says has helped the fund's returns.
Morningstar made a similar low-cost case for Vanguard's VXUS, as Private Wealth Daily previously reported.
Reported by the Products & portfolios desk from Morningstar — Financial Advice. Published . Corrections