EAFE index

EAFE index

Morgan Stanley Capital International Europe, Australia, Far East Index

An index published by Morgan Stanley Capital International that tracks stocks in Europe, Australia, and East Asia. It is considered one of the most important indices for stocks outside the United States; indeed, its strong performance in the 1980s and early 1990s has been credited with spurring American interest in foreign investment. It is weighted for market capitalization.

EAFE Index.

The Morgan Stanley Capital International (MSCI) EAFE -- for Europe, Australasia, Far East Equity -- Index tracks the performance of the world's major stock markets outside the United States.

The EAFE Index is an important benchmark, comparable to the Standard & Poor's 500 Index (S&P 500) for US large-company stocks. Managers of international stock portfolios use the EAFE to monitor the ups and downs of developed markets and evaluate their own investment performance in relation to that standard.

Investors can purchase index mutual funds, exchange traded funds (ETFs), options contracts, and financial futures contracts linked to the EAFE to gain exposure to worldwide equities markets.

The strong performance of the EAFE Index between 1982 and 1996 is often credited with generating increased US interest in investing overseas.

References in periodicals archive ?
The fund's portfolio managers, Fred Copper and Daisuke Nomoto, will invest in companies that they believe are attractively priced and have better growth, returns and profitability versus the fund's benchmark, the MSCI EAFE Index.
REFA seeks to outperform the MSCI EAFE Index, with an expense ratio of 42 basis points.
Following the launch of futures and options on the popular MSCI EAFE index that represents the developed markets of Europe, Australasia and the Far East, Eurex has become the only exchange that offers futures and options on all major MSCI indexes.
Optimism on the geopolitical front and a stronger Japanese Yen helped the MSCI EAFE index gain a return of 6.
The blue line in the accompanying chart plots, from the end of 1999 through the first quarter of this year, an index of return of the MSCI EAFE index (covering large companies in the markets of Europe, Asia and the Far East), while the purple line represents the Standard & Poor's (S&P) 500, and the green line at the bottom shows the correlation between their returns for rolling 24-month periods.
For instance, in three out of the last four calendar years, the Standard & Poor's 500 index has topped the chief international benchmark, the MSCI EAFE Index.
9 percent, and the MSCI EAFE Index rose approximately 1.
Puts protecting against a 10 per cent drop in the iShares MSCI EAFE Index Fund cost 5.
Aggregate Bond Index (40 per cent), the MSCI EAFE Index (18 per cent) and the MSCI Emerging Markets (Free) Index (2 per cent).
A recent example of this was MSCI's consideration to add Korea and Taiwan to the MSCI EAFE index.
Intemational Small Index data: 1970-June 1981, 50% UK small cap stocks provided by the London Business School and 50% Japan small cap stocks procided by Normura Securities; July 1981=present, compiled by Dimensional from StyleResearch securities data; includes securities of MSCI EAFE Index countries, market-capitalization weighted, each country capped at 50%: rebalanced semiannually.