EAFE

EAFE mutual funds and ETFs invest in a wide range of asset... EAFE mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in Europe, Australasia, and the Far East. These markets tend to have a tilt towards the financial, industrial, consumer discretionary, healthcare and consumer staples sector. Depending on the investment mandate, these funds can be further classified based on management style (active or passive) and asset class (single or multi-asset). The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. EAFE countries are one of the most developed markets outside of North America. They are characterized by high levels of income, capital mobility, and market regulation, helping investors to perceive these markets as politically stable and reliable. As a result, governments and private companies can borrow at lower interest rates than their counterparts in developing market economies, as they are seen as more likely to make interest and principal payments on time. They are usually considered safer investments than mutual funds and ETFs that own securities issued in less-developed countries. As a result, conservative-minded investors will often prefer to own these funds instead of those focused on developing and frontier markets. However, because EAFE securities are considered to be fairly safe investments relative to less-developed market investments, the potential return is lower. Last Updated: 12/04/2024 View more View less

EAFE mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in Europe, Australasia, and the Far East. These markets... EAFE mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in Europe, Australasia, and the Far East. These markets tend to have a tilt towards the financial, industrial, consumer discretionary, healthcare and consumer staples sector. Depending on the investment mandate, these funds can be further classified based on management style (active or passive) and asset class (single or multi-asset). The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. EAFE countries are one of the most developed markets outside of North America. They are characterized by high levels of income, capital mobility, and market regulation, helping investors to perceive these markets as politically stable and reliable. As a result, governments and private companies can borrow at lower interest rates than their counterparts in developing market economies, as they are seen as more likely to make interest and principal payments on time. They are usually considered safer investments than mutual funds and ETFs that own securities issued in less-developed countries. As a result, conservative-minded investors will often prefer to own these funds instead of those focused on developing and frontier markets. However, because EAFE securities are considered to be fairly safe investments relative to less-developed market investments, the potential return is lower. Last Updated: 12/04/2024 View more View less