This international equity ETF tracks the MSCI EAFE Growth Index and invests in growth stocks in developed markets outside the US and Canada. It holds large and mid-cap companies with growth characteristics across Europe, Australasia, and the Far East, broadly weighted by market capitalization.

It suits long-term investors who want to add developed-market growth exposure outside the US to a US-centered portfolio and broaden their regional diversification.

It is a passive (index-tracking) ETF managed by iShares.

The fund holds the constituents of the MSCI EAFE Growth Index in proportion to their market capitalization, tracking the performance of developed-market growth stocks excluding the US and Canada. It gains exposure to a group of stocks selected on growth metrics such as sales and earnings growth, and changes to the index composition are reflected automatically through periodic reviews.

• Regional exposure focused on developed-market growth stocks outside the US
• Broad country diversification across Europe, Japan, Australia, and more

Assets under management (AUM) are $14.8B, and the total expense ratio is 0.36% per year.

The fund offers broad developed-market growth exposure in a single ETF, and its holdings differ in character from those of value-style products.

The fund follows the movements of developed markets outside the US together with the growth-stock style, and its short-term performance is affected by the dollar exchange rate and the global economic cycle. It can at times follow a different trend from US large-cap stocks, which is a source of diversification benefit.

Fund flows continue in line with demand for diversification outside the US, and the direction of flows tends to shift with adjustments to overseas allocations in global asset allocation and with the strength or weakness of the dollar.

Its strength is diversification into developed-market growth stocks outside the US, while currency exposure and sensitivity to regional economies work as drawbacks.

JIG, MTRA, VDG, and the other funds shown in the table belong to the same international growth category but differ in issuer, expense ratio, and management style. Actively managed products tend to charge somewhat higher fees, while index products such as VDG tend to carry a lower fee burden. In addition, you can also consider EFA as a broad core fund covering the same developed markets outside the US without limiting itself to growth, EFV if you want a value style, VEA for lower-cost broad developed-market exposure, and HEFA as a currency-hedged version.

Here are the points to review before investing in EFG. It is useful as a core holding in developed-market growth stocks outside the US, but it is best to check its expense ratio, currency exposure, regional exposure, and growth style characteristics before buying.

Currency fluctuations and an economic slowdown in specific regions are the main drivers of short-term volatility. Given the nature of the growth style, it may underperform value stocks during periods of rising interest rates, so performance differences depending on the market environment should be taken into account.

It can be used as a core asset that diversifies across developed-market growth stocks outside the US. If you want broad developed-market exposure, EFA, if you want a value style, EFV, and if you prioritize low fees, VEA can serve as alternatives.