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EAFE Index

Source: Investopedia
This Article has been Edited for Accessibility

EAFE Index

What is the 'EAFE Index'

The EAFE Index is an index created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia. This international index has been in existence for more than 30 years.

Explaining 'EAFE Index'

As of February 2007, equities from the Japanese stock markets made up around 25% of the index, of which Japan is the largest index component.

Many investors use the S&P 500 as a benchmark to assess the performance of an investment portfolio. This is an appropriate benchmark for American stocks. The EAFE index is often used as a benchmark for the performance of an investor's international equity investments.


Additional Resources

  1. Msci Eafe Index Fund(efa) [business.missouri.edu]
  2. E Definitions: Campbell R. Harvey's Hypertextual Finance Glossary [people.duke.edu]
  3. Foreign Stocks Are In, And So Is Indexing [knowledge.wharton.upenn.edu]
  4. Economic Systems [faculty.weber.edu]
  5. Global Financial Data [businesslibrary.uflib.ufl.edu]
  6. Eco 317 – Economics Of Uncertainty – Fall Term 2009 Week 4 Precepts [princeton.edu]