EAFE Index

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Definition of 'EAFE Index'

The EAFE Index is a stock market index that tracks the performance of large-cap companies in developed countries outside of North America and Europe. It is one of the most widely used benchmarks for international investing, and is often used as a proxy for the global equity market.

The EAFE Index is made up of stocks from 21 developed countries, including Australia, Hong Kong, Japan, and Singapore. The index is weighted by market capitalization, meaning that the largest companies in the index have the biggest impact on its performance.

The EAFE Index is a good way to diversify your portfolio and gain exposure to international markets. However, it is important to remember that international investing can be more volatile than investing in domestic markets.

Here are some of the key things to know about the EAFE Index:

* It is a capitalization-weighted index, meaning that the largest companies in the index have the biggest impact on its performance.
* It is made up of stocks from 21 developed countries, including Australia, Hong Kong, Japan, and Singapore.
* It is a good way to diversify your portfolio and gain exposure to international markets.
* International investing can be more volatile than investing in domestic markets.

If you are considering investing in the EAFE Index, it is important to do your research and understand the risks involved. You should also consult with a financial advisor to make sure that this is the right investment for you.

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