(EFAX) SPDR MSCI EAFE Fossil Fuel - Ratings and Ratios

The SPDR MSCI EAFE Fossil Fuel Reserves Free ETF (EFAX) is an exchange-traded fund that tracks the performance of companies in the MSCI EAFE Index, excluding those with fossil fuel reserves. The fund invests at least 80% of its assets in the constituent securities or depositary receipts.

From a portfolio perspective, EFAX offers a diversified exposure to international developed markets, with a blend of large-cap stocks. The funds focus on companies without fossil fuel reserves aligns with the growing trend of Environmental, Social, and Governance (ESG) investing. Key Performance Indicators (KPIs) to monitor for EFAX include its tracking error relative to the underlying index, expense ratio, and dividend yield.

To evaluate EFAXs performance, one can analyze its returns relative to the broader international market, as well as its peers in the Foreign Large Blend category. Other relevant metrics include the funds Sharpe ratio, beta, and standard deviation, which can provide insights into its risk-adjusted returns and volatility profile. With an AUM of $376.63 million, EFAX has a reasonable scale, but its liquidity and trading volume should be monitored to ensure that they meet the investors needs.

Investors considering EFAX should also be aware of the underlying indexs methodology and the screening process used to exclude companies with fossil fuel reserves. Understanding the indexs construction and rebalancing frequency can help investors anticipate potential changes in the funds composition and performance. By combining these insights with technical analysis, such as trends and moving averages, investors can make more informed decisions about EFAXs role in their portfolios.