compiled by Morgan Stanley Capital International (MSCI), the Morgan Stanley Europe, Asia, and Far East Index is a value-weighted index of the equity performance of major foreign markets. The EAFE index (it is pronounced EE-feh) is, in effect, a non-American world index of over 1000 stocks. It is considered the key "rest-of-the-world" index for U.S. investors, much as the Dow Jones Industrial Average is for the American market. The index is used as a guide to see how U.S. shares fare against other markets around the globe. It also serves as a performance benchmark for international mutual funds that hold non-U.S. assets. Morgan Stanley also compiles indexes for most of the world's major stock markets as well as for many smaller, so-called "emerging" markets. In addition, there are Morgan Stanley indexes for each continent and the entire globe. The index is quoted two ways: one in local currencies and two in the U.S. dollar.