Invest in Israel for everyone - Top 4 ETF'S tracking Israeli companies
Investing in exchange-traded funds (ETFs) that track Israeli companies offers a unique opportunity to support Israel's innovative economy while potentially reaping financial benefits. ETFs are investment funds traded on stock exchanges, much like stocks, and they typically hold a collection of assets such as stocks, bonds, or commodities. By investing in ETFs that hold Israeli companies, investors can gain exposure to these dynamic industries and contribute to the continued growth and success of Israel's economy. As Here, we explore the top four ETFs that focus on Israeli companies and why they are a compelling investment choice.
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1. iShares MSCI Israel ETF (EIS)
Overview: The iShares MSCI Israel ETF (EIS) is one of the most popular ETFs focused on Israeli companies. It aims to track the performance of the MSCI Israel Capped Investable Market Index, which includes large, mid, and small-cap Israeli companies. Over the past year, EIS has shown solid performance, reflecting the stability and growth of Israel's broader economy.
Top Holdings:
Teva Pharmaceutical Industries
Check Point Software Technologies
Bank Leumi
Why EIS? EIS provides broad exposure to Israel's economy, covering various sectors such as healthcare, technology, and financial services. This diversification reduces risk while offering growth potential in some of the country's most innovative companies. Investors looking for a comprehensive approach to the Israeli market will find EIS an attractive option.
2. BlueStar Israel Technology ETF (ITEQ)
Overview: The BlueStar Israel Technology ETF (ITEQ) focuses specifically on Israeli technology companies, tracking the BlueStar Israel Global Technology Index. ITEQ has delivered impressive returns, driven by the strong performance of Israel's tech sector, particularly in cybersecurity and software services.
Top Holdings:
Nice Ltd.
Amdocs Ltd.
CyberArk Software Ltd.
Why ITEQ? ITEQ is ideal for investors who want to capitalize on Israel's reputation as a tech powerhouse. The ETF includes companies at the forefront of cybersecurity, software development, and digital transformation. Given the global demand for tech solutions, ITEQ offers strong growth potential.
3. VanEck Vectors Israel ETF (ISRA)
Overview: The VanEck Vectors Israel ETF (ISRA) seeks to replicate the performance of the BlueStar Israel Global Index, which includes a wide range of Israeli companies. ISRA has performed well, showcasing the resilience and growth of Israeli enterprises across various industries.
Top Holdings:
Tower Semiconductor Ltd.
Wix.com Ltd.
Elbit Systems Ltd.
Why ISRA? ISRA provides a diversified portfolio of Israeli companies spanning multiple sectors, including technology, industrials, and consumer goods. This diversity helps mitigate sector-specific risks and allows investors to benefit from the overall growth of Israel's economy.
4. ARK Israel Innovative Technology ETF (IZRL)
Overview: The ARK Israel Innovative Technology ETF (IZRL) focuses on Israeli companies engaged in innovative technologies and industries. It tracks the ARK Israeli Innovation Index. IZRL has shown notable performance, driven by the rapid growth of innovative Israeli firms in medical technology and industrial automation.
Top Holdings:
Fiverr International Ltd.
Inmode Ltd.
Ituran Location and Control Ltd.
Why IZRL? IZRL targets companies that are leaders in innovation, particularly in sectors like medical technology, internet services, and industrial automation. This focus on high-growth industries makes IZRL appealing to investors seeking long-term capital appreciation through cutting-edge Israeli companies.
Considerations when Investing in Israeli ETFs is Beneficial
Economic Support: Investing in ETFs that hold Israeli companies directly supports Israel's economy. The inflow of capital helps companies grow, innovate, and expand, contributing to overall economic stability and development.
Exposure to Innovation: Israel is often referred to as the "Startup Nation" due to its high number of startups and technological advancements. Investing in Israeli ETFs allows investors to tap into cutting-edge innovations in technology, healthcare, and other sectors.
Diversification: Israeli ETFs offer diversification within a portfolio by providing exposure to international markets, particularly a market known for its resilience and growth potential. This can help balance risks associated with domestic-only investments.
Ethical Investment: For those who have a personal or ideological commitment to supporting Israel, investing in these ETFs aligns financial goals with ethical and philanthropic values. It allows investors to back a country they believe in while potentially earning returns on their investment.
Growth Potential: Israel's economy has demonstrated robust growth and resilience, even in challenging global economic climates. Investing in Israeli ETFs provides an opportunity to participate in this growth, particularly in sectors with high potential such as technology and healthcare.
Conclusion
Investing in ETFs that track Israeli companies offers a compelling combination of ethical support and financial opportunity. The iShares MSCI Israel ETF (EIS), BlueStar Israel Technology ETF (ITEQ), VanEck Vectors Israel ETF (ISRA), ARK Israel Innovative Technology ETF (IZRL), and Invesco Israel ETF (ISRA) each provide unique advantages and exposures to Israel's dynamic economy. By including these ETFs in your investment portfolio, you not only support Israel's economic growth but also gain access to some of the world's most innovative and forward-thinking companies.
Disclaimer; This article does not consistent investment advice or guidance.
Author- Jon Simmons - Bi-lateral trade an investment advocate for Israel, and content strategist for ambitious businesses looking to gain authority and sales online. Best contactable via LinkedIn.
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Source Mutual Funds; https://www.mutualfunds.com/geography-categories/israel-funds-and-etfs/
Jon Simmons is a bi-lateral trade investment advocate for Israel and its supporters, and content strategist for ambitious businesses looking to grow online.
