Share on Facebook Share on Twitter Email
Answers.com

Europe, Australasia, Far East - EAFE

 
Investment Dictionary: Europe, Australasia, Far East - EAFE

An acronym referring to the geographical area that includes these three regions. These regions represent the most developed areas outside of North America.

Investopedia Says:
Owning an index fund comprised of companies from the EAFE area is one way to invest in those international markets. Indexes, such as the MSCI EAFE, are used as a benchmark for North American equity performance.

Related Links:
Find out how these worldly offerings can spice up your portfolio. Go International With Foreign Index Funds
Get the full story on this asset class before you write it off as too risky. Re-evaluating Emerging Markets
Get to know the most important market indices and the pros and cons of investing in them. Index Investing
If you can't beat the market, why not join it? We go over your options. The Lowdown On Index Funds
Investing abroad poses risks, but can also help you diversify. Discover ways to invest in foreign stocks. Investing Beyond Your Borders


Search unanswered questions...
Enter a question here...
Search: All sources Community Q&A Reference topics

Acronym for the Europe and Australasia, Far East Equity index, calculated by the Morgan Stanley Capital International (MSCI) group. EAFE is composed of stocks screened for liquidity, cross-ownership, and industry representation. Stocks are selected by MSCI's analysts in Geneva. The index acts as a benchmark for managers of international stock portfolios. There are financial futures and options contracts based on EAFE.

 
 

 

Copyrights:

Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more