iShares Core MSCI EAFE ETF rises 10.5% YTD, driven by Fed cuts and key holdings like ASML.

The iShares Core MSCI EAFE ETF has gained about 10.5% year to date and 24% over the past year, benefiting from a weaker U.S. dollar and strong holdings in European and Japanese megacaps like ASML and major pharma companies. The fund's performance is sensitive to Federal Reserve interest rate cuts, which have softened the dollar, boosting returns. Investors should watch the Fed's September meeting and ASML's July earnings for clues on whether the rally will continue or slow down. Currency-hedged alternatives exist for those wary of dollar swings.