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 ?
4 percent in the third quarter while the MSCI EAFE index lost 10.
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.
Puts protecting against a 10 per cent drop in the iShares MSCI EAFE Index Fund cost 5.
companies by market cap, the largest 250 Canadian companies by market cap and companies in the United Kingdom, Europe, Japan and the Asia Pacific region that are included in the MSCI EAFE index.
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.
The INVESCO GTAA Alpha Overlay - International Equity strategy, initially funded with US$500 million in December 2006, is designed to outperform the MSCI EAFE Index with a low correlation to traditional markets.
Between 1994 and 1998, the average annual return of the EAFE index was about 10%, which lagged behind the S&P 500's 23%.
However, many experts agree that the EAFE index, heavily dominated by a single country--Japan--is a poor index by which to gauge the over-all performance of foreign stocks.
Every sector in the EAFE index declined during the quarter, while small-cap stocks outperformed large-caps, and growth stocks outperformed value stocks.
7% return for the benchmark Morgan Stanley Capital International EAFE Index of European, Australian, Asian, and Far Eastern companies.
4 percent for the Morgan Stanley/Capital International EAFE Index, a popular international equity benchmark that comprises developed equity markets in Europe, Australia and the Far East.