Could Investing $1,000 in the iShares Core MSCI EAFE ETF (IEFA) Make You a Millionaire? (Spoiler: Yes, It Could.)

Core Insights - The article emphasizes that investing in the stock market is one of the best long-term strategies for building wealth, potentially leading to millionaire status [1] - It suggests diversifying investment portfolios beyond the U.S. and Canada by considering the iShares Core MSCI EAFE ETF, which could also contribute to wealth accumulation [2] ETF Overview - The iShares Core MSCI EAFE ETF is an exchange-traded fund that aims to replicate the returns of the MSCI EAFE Investable Market Index, covering a wide range of companies outside the U.S. and Canada [4][5] - This ETF includes approximately 99% of the stock market value of the countries it covers and has a low expense ratio of 0.07%, costing only $7 annually for every $10,000 invested [5] Performance Metrics - The ETF has shown strong performance with average annual gains of 15.95% over the past year, 22.02% over three years, 11.08% over five years, and 8.37% over ten years since its inception on October 18, 2012, with an overall return of 7.64% [6][8] - The performance of the ETF has been particularly notable in recent years, coinciding with a period of above-average results in the U.S. stock market [8] Diversification Benefits - Investing in the iShares Core MSCI EAFE ETF provides exposure to thousands of foreign stocks, offering significant diversification while excluding U.S. and Canadian markets [7] - The article highlights the importance of diversification, especially in light of concerns about potential stock market corrections in the U.S., suggesting that non-U.S. stocks may not experience the same level of decline [9]