BlackRock has launched the first ETF to offer direct exposure to the national Israeli index.
The iShares TA-25 Israel UCITS ETF (TASE) is the first physically-replicating ETF in the world to access the 25 largest companies listed on the Tel Aviv Stock Exchange. The underlying index of the fund, TA-25, places an upper limit on the size of its constituents so that no single company accounts for more than 10 per cent of the total index. The index is rebalanced semi-annually. iShares now has over 70 single country ETFs domiciled in Europe.
Alex Pollak, Head of Israel at BlackRock, says: “Investing with precision has never been more important. Israel’s equity market was one of the fastest developed economies to rebound after the financial crisis, and our fund is a cost-effective way to invest in this resilient market and one of the world’s leading technology centres.
“This is the first exchange traded product that allows investors to invest directly in Israel’s national index in a UCITs framework using their domestic sterling, dollar or euro currencies. This innovation will provide investors based outside of Israel with targeted portfolio exposure to the country.”
Yossi Beinart, TASE Chief Executive Officer, says: "The launch of this ETF will provide an opportunity for global investors to invest in Israeli economy through the TA-25 index. This unique collaboration will increase TASE's exposure to international investors, who are seeking ways to invest in the Israeli market. We will continue to promote partnerships with leading international financial institutions, develop new products and be responsive to local and global market needs.”
The iShares TA-25 Israel UCITS ETF has a total expense ratio of 0.6 per cent.