How to Invest in Israel With ETFs
Diversify Your Portfolio Internationally
Do you think there is an investment opportunity in Israel? Or do you have Israel-related investments you need to hedge? Or are you just looking to diversify your portfolio? Then you may want to take a look at some Israel ETFs (or ETNs).
One of the best advantages of ETFs is the ability to enter certain markets or invest in certain regions without loading up on equities or battling index basket pricing. Instead, you can get instant exposure to Israel markets or companies with one easy transaction.
So for those who have a need to invest in Israel, then an ETF might make sense for your trading strategy, such as the two options that follow.
Types of Israel ETFs
EIS - iShares MSCI Israel Cap Invest Market Index ETF: The iShares MSCI Israel Cap Invest Market Index ETF (EWP) tracks the investment results of a broad-based index composed of Israeli equities. Some of those equities include TEVA Pharmaceuticals (TEVA), Check Point Software Technologies (CHKP), Bank Hapoalim (POLI) and Bank Leumi Le Israel (LUMI). Health Care is the top sector represented in the fund, but there are also companies in the information technology, financials, and telecommunications industries. You can get the full details about the fund, its holdings and other information on the iShares fact sheet for EIS
ITEQ - The BlueStar TA-BIGITech Israel Technology ETF: The newer of the two Israel funds, the BlueStar TA-BIGITech Israel Technology ETF (ITEQ) tracks the investment results of the TASE-BlueStar Israel Global Technology Index, an index of more than 60 Israeli technology companies listed on the Tel Aviv, Nasdaq, NYSE, London Stock Exchange, and Singapore Exchange. The investment goal of the fund is to provide investors with diversified exposure to the dynamic Israeli technology sector.
Some of the top holdings in ITEQ are Amdocs, Check Point Software Technologies, Mobileye, Mellanox Technologies, Nice Systems, Verint Systems, Opko Health, Elbit Systems, Ormat Technologies, and Stratasys. Although only a handful of Israeli technology companies are household names, collectively the Israeli technology sector is a major innovator, developer, and supplier within the global technology ecosystem. These companies are at the forefront of most technologically disruptive industries, including cybersecurity, big data, high-powered computing, and networking equipment, autonomous driver assistance and safety, clean energy, biotechnology, and medical devices.
You can get the full details about the fund, its holdings and other information on the ITEQ website.
Research Before You Invest in Israel ETFs
As with any investment, a company stock, an ETF, Index or otherwise, please make sure you thoroughly research this exchange-traded fund or any financial asset before making any trades (long or short). Conduct your due diligence, watch how these funds react to different market conditions, take a look under the hood and see what is in the funds. And if you have any questions or concerns, make sure you consult a stockbroker, a financial advisor, or another financial industry professional.
While ETFs have many advantages, they have many disadvantages as well (as does any investment). So it is very important to understand the investment vehicle before you trade it. But once you have a full understanding of these Israel ETFs, you can consider adding either or both to your portfolio.