The Israeli shekel currency dipped over 1% to 3.9037 per U.S. dollar in response to the rate cuts. Potential Israel ETF investors should also be aware that the funds do not hedge currency risks, so a falling shekel currency could offset some gains since the underlying shekel-denominated asset growth will be converted into USD returns.

On the other hand, a weak shekel helps contribute to export growth. For instance, both ISRA and EIS include a heavy tilt toward Teva Pharmaceuticals (NYSE: TEVA) at 12.7% and 23.9%, respectively. [Indexology – Currency Wars: Pandering to Debase]

Market Vectors Israel ETF

For more information on Israel, visit our Israel category.

Max Chen contributed to this article.