The VanEck Vectors Israel ETF (NYSEArca: ISRA), one of the original ETFs to offer exposure to Israeli equities, is celebrating its fifth anniversary.
ISRA tracks the BlueStar Israel Global Index (BIGI), “which is comprised of equity securities, which may include depositary receipts, of publicly traded companies that are generally considered by the Index Provider to be Israeli companies,” according to VanEck.
Israel has been one of the best-performing developed markets this year. Entering Tuesday, ISRA had a year-to-date gain of almost 3.30% compared to a loss of nearly 5% for the MSCI EAFE Index.
ISRA’s underlying “is the broadest benchmark of Israeli equities trading worldwide, and includes 134 stocks listed on seven exchanges, including the Tel Aviv Stock Exchange, Nasdaq, the NYSE, Australia’s ASX, and the London, Hong Kong, and Singapore exchanges,” according to a statement.
Inside Israel ETF ISRA
ISRA has nearly 140 holdings, over 35% of which hail from the technology sector, levering the ETF to Israel’s booming startup and technology sectors. As of the end of May, the healthcare and financial services sectors combined for almost 40% of the ETF’s weight.
Related: Kevin O’Leary’s OGIG: Best New Tech ETF?
ISRA offers a deeper bench than some rival products. For example, the MSCI Israel Capped Investable Market Index has just 69 holdings. That Israel benchmark is up just 1.5% year-to-date.
“Israel is home to some of the most innovative companies in the world, yet its dynamic economy has often been difficult for investors to access in a meaningful way,” said Steven Schoenfeld, founder and Chief Investment Officer of BlueStar Indexes, in the statement.
Nearly half of ISRA’s holdings are classified as mid- or small-cap stocks. The ETF has a three-year standard deviation of 12.27%, according to issuer data. ISRA charges 0.59% per year, or $59 on a $10,000 investment.
For more information on the tech segment, visit our technology category.