1 Incredible Reason to Buy IEFA's Stock in October

Core Insights - The period from 2015 to 2024 was challenging for international stocks, with the MSCI EAFE Index returning 66.9%, significantly lower than the S&P 500's 239.9% gain [1] Group 1: Current Performance - The iShares Core MSCI EAFE ETF (IEFA) has shown strong performance in 2025, returning 27.6% as of October 17, outperforming the S&P 500's 14.4% gain [2] Group 2: Investor Behavior - Many U.S. investors are underallocated to international stocks, with an average weight of only 25% in their equity portfolios compared to domestic equities [4][5] - This underallocation presents an opportunity for IEFA to rally further if U.S. investors adjust their perspectives on international equities [5] Group 3: Market Opportunities - Japan is highlighted as an underowned market, with inexpensive stocks and ongoing corporate governance changes that encourage buybacks and dividends [6] - The IEFA fund allocates 24% of its investments to Japanese stocks, suggesting potential benefits if global asset allocators recognize the value in Japan [6]