(EFAV) iShares MSCI EAFE Min Vol - Ratings and Ratios

The iShares MSCI EAFE Min Vol Factor ETF (EFAV) is designed to track the performance of international equities with lower volatility compared to the broader MSCI EAFE Index. By investing at least 80% of its assets in the component securities of the index or similar investments, the fund aims to provide a more stable investment option for investors seeking to minimize risk.

As a Foreign Large Blend ETF, EFAV offers diversified exposure to large-cap stocks across developed markets outside the US and Canada. The funds underlying index is constructed to emphasize stocks with historically lower volatility, making it an attractive option for risk-averse investors or those seeking to hedge against market downturns.

Analyzing the funds recent performance, we can see that it has been trending upward, with its last price of $84.85 exceeding its 20-day and 50-day simple moving averages (SMA20 and SMA50) of $83.47 and $81.09, respectively. This indicates a positive short-term momentum. Furthermore, the funds average true range (ATR) of 0.73 represents a relatively moderate level of price volatility.

Considering the funds assets under management (AUM) of approximately $5.5 billion, EFAV demonstrates a reasonable level of liquidity and investor interest. With its current price near the 52-week high of $85.30, we can anticipate a potential consolidation or slight pullback in the near term. However, given the funds underlying index construction and the overall trend in international equities, we forecast that EFAV will continue to perform relatively well, potentially reaching $87.50 within the next 6-12 months, driven by a combination of its low-volatility profile and the gradual recovery of international markets.

To validate this forecast, we will continue to monitor the funds technical indicators, such as its SMA200, which currently stands at $75.77, indicating a strong long-term uptrend. Additionally, we will keep a close eye on fundamental factors, including changes in AUM, trading volume, and the overall macroeconomic environment, to adjust our forecast accordingly.