BlackRock launches first Israel ETF

BlackRock’s iShares has launched an ETF for European investors that invest in the national Israeli index.

The iShares TA-25 Israel Ucits ETF (TASE) is said to be the first physically-replicating ETF in the world to access the 25 largest companies listed on the Tel Aviv Stock Exchange.

Companies in the underlying index of the fund, TA-25, do not weigh more than 10% of the total index. The index is rebalanced semi-annually.

The iShares TA-25 Israel Ucits ETF has a TER of 0.6%.

Alex Pollak, head of Israel at BlackRock, said: “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, commented : “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.”

iShares tallies over 70 country ETFs domiciled in Europe.

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