Overview
ISRL offers US investors broad access to the Israeli equity market through a single Nasdaq-listed ETF. The fund seeks to track the Israeli 120 iNDEX, which measures the largest 120 companies in Israel by market capitalization, drawn exclusively from the Tel Aviv Stock Exchange. ISRL is sponsored by KSM, a Phoenix Investment House company, and built on an index from TMX VettaFi’s Index Research and Development Ltd. Under normal circumstances, the fund invests at least 80% of its net assets in the component securities of the Index, generally through local shares or, where available, depositary receipts.
Why ISRL
- The Israeli market in one trade. Exposure to up to 120 of the largest Israeli companies listed on the Tel Aviv Stock Exchange, from micro caps to large caps.
- Rules based methodology. Size, liquidity, and float screens on every constituent, a 4% cap on any single issuer with a 0.1% minimum weight, and reduced weighting factors for companies with recurring negative net profit.
- Partnerships. Sponsored by KSM, a Phoenix Investment House company, with an index from TMX VettaFi’s Index Research and Development Ltd. that is reconstituted and rebalanced quarterly.
Index Methodology at a Glance
The Index draws its universe entirely from equity securities trading on the Tel Aviv Stock Exchange, and constituents must be incorporated or domiciled in Israel. Eligible securities include common stocks, preferred stocks, and REITs denominated in Israeli shekels, subject to a minimum market capitalization of ILS 75 million (approximately $25 million USD as of the prospectus date), a minimum three month average daily trading value, at least a 20% public float, and a minimum free float adjusted market capitalization of ILS 75 million. Constituents are weighted by market capitalization with a 120 issuer maximum, a 4% cap on any single issuer, and a 0.1% minimum weight, with excess weight redistributed proportionally; weighting factors are reduced by 20% to 50% for issuers reporting negative annual net profit in two or more of the trailing five years. The Index is reconstituted and rebalanced quarterly, and constituents can span micro capitalization to large capitalization companies and sectors including technology, financial services, defense, real estate, energy, and healthcare.