As Bloomberg notes, Teva investors seem to like the idea of the company making a major acquisition. The company’s U.S.-listed shares are up 8.4% in the past month, helping turn an early year loss into a 7.8% year-to-date gain.
Teva’s surge has helped boost Israel ETFs as well. For example, the Market Vectors Israel ETF (NYSEArca: ISRA) and the iShares MSCI Israel Capped ETF (NYSEArca: EIS) are up an average of 6.2% this year.
Teva is the largest holding in both ETFs, accounting for 25.4% of EIS’ weight an 12.8% of ISRA. Although ISRA has the smaller Teva weight, its healthcare weight of 31.2% is is nearly 600 basis points larger than the same sector’s weight in EIS.
Market Vectors Pharmaceutical ETF
