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.”