The EAFE index (or Europe, Australasia, and Far East index) is a financial index that keeps track of international stocks. Here are the basics of the EAFE index and why it is significant.

The EAFE index is maintained by Morgan Stanley Capital International. This is why sometimes you will see this referred to as the MSCI EAFE index. This index has been a mainstay in the financial world for the last 30 years.

This financial index is comprised of many different international stocks. The majority of this index is made up of Japanese securities. By looking at this index, you will be able to see how a wide range of international stocks are performing. If you are an investor in international stocks, this index is going to be invaluable to you. You will be able to look at the financial index and determine how your stocks are performing.

Many investors use this index to gauge whether they should get involved with a particular international investment. If the investment has outperformed the index for a certain amount of time, it could be looked at as a favorable form of international investment. If it has underperformed, the investor might be skeptical.

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