Solactive launches Israel-themed index

Solactive and B-BRE announced the launch of the Solactive – B-BRE Tel Aviv 125 low volatility high dividends index, used as the underlying index for a new IBI fund trading on the Tel Aviv stock exchange. The index mirrors the performance of 25 shares from the TA-125 index selected based on high dividend yield and low volatility features.

A first filter is applied to the TA-125 preselecting the 50 companies with the highest 12-month trailing dividend yield. Among these, the 25 with the lowest trailing 12-month volatility are then chosen as final index components of the Solactive – B-BRE Tel Aviv 125 low volatility high dividends index.

Israel has been strongly investing in innovation as proven by the rate of R&D expenditure to GDP, which is one of the highest among OECD members. As such, the Solactive – B-BRE Tel Aviv 125 low volatility high dividends index allows investors to gain specific exposure to the Israeli economy through a basket of low volatility and high dividend-yield shares.

Steffen Scheuble, CEO of Solactive, commented: “In collaboration with B-BRE we launch an Israel-themed index that puts together two of the most demanded smart beta factors today, precisely low-volatility and high-dividend-yield. In this way, the Solactive – B-BRE Tel Aviv 125 low volatility high dividends index provides a strategic beta version of the broad-based TA-125 index accessible to investors through the IBI fund.”

Daniel Baraz, managing partner at B-BRE, said: “We think that the fund is an interesting investment instrument as it offers exposure to a strong and growing economy, through stocks that pay a high dividend yield.”

Shai Sasportas, head of ETF sector at IBI Investment House, added: “Following upon the success of our funds tracking the Solactive-B-BRE indices on the Israeli CRE market and the US REIT sector, we are pleased to extend the range of our smart-beta funds with a third index, with the launch of the first low-volatility high-dividends fund of large-cap Israeli stocks.”

ABOUT THE AUTHOR
Ridhima Sharma
Ridhima Sharma speaks German and is DACH Correspondent for InvestmentEurope. She has more than 8 years of experience in the media industry. Before joining us, she was working in India and covering automotive and lifestyle sectors. Over the years many of her stories have been published in various magazines across India.

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