CHAI provides access to Israel government and corporate bonds by tracking the MCM (Migdal Capital Markets) BlueStar Israel Bond Index. The index tracks the performance of USD and shekel-denominated bonds issued by the Israeli government or Israeli corporations.
The index targets 35 bonds from at least 15 issuers but no more than 10 Israeli government-issued securities. It also seeks to target a maximum of five securities issued by any one corporate issuer.
CHAI’s index is market-cap-weighted whereby the maximum-security weight is set to 5%. Meanwhile, the maximum aggregate weight of securities issued by the Israeli government or government-related entities is 25%. The maximum aggregate weight of securities issued by any single corporate issuer is 7.5%. The index is reviewed and rebalanced monthly.
The fund may invest in U.S. Treasuries and USD-denominated Israel bonds rated below investment grade (aka “junk bonds”). It may also invest in a limited number of derivatives.
Defiantly Growing Its ETF Suite
The launch of CHAI is part of Defiance ETF’s growing lineup of funds. In October, Defiance launched the Defiance R2000 Enhanced Options Income ETF (IWMY), an active put-write fund, on the NYSE. In September, it listed the Defiance S&P 500 Enhanced Options Income ETF (JEPY), which uses daily options to augment income on the S&P 500.
The Defiance Nasdaq 100 Enhanced Options Income ETF (QQQY), also listed in September, seeks enhanced income from Treasuries and Nasdaq-100 index options. And in June, Defiance launched the Defiance Pure Electric Vehicle ETF (EVXX), which targets pure exposure to electric vehicle manufacturers.
For more news, information, and analysis, visit VettaFi | ETF Trends.