An Introductory Guide to the Israel Stock Market
Savvy investors are always searching for promising start-up companies. But all too often they are limiting their search to just one country or area. And in today’s global economy, that means they are missing out on some tremendous opportunities.
With more than 6,000 active start-ups and major investments from a host of Fortune 500 companies, one country is called ‘The Start-up Nation’. The country? Israel.
That’s right. Israel. So how do you invest? With the Israel stock market. With its stable society and culture, booming economy, supportive government incubator programs, and ‘global-first’ market, Israel’s innovation economy is a world leader.
Particularly in the tech field, Israel has led the way with thumb drive technology, instant messaging software, IP telephone services, and zip compression among many others.
Read on to find out how to start investing in Israel’s vibrant stock market.
Israel Stock Market
Israel’s only stock exchange, officially known as the Tel Aviv Stock Exchange (TASE), trades in stocks, convertible securities, bonds (government and private), and a variety of derivatives.
With more than 500 listed companies, TASE members handle daily investments for hundreds of thousands of investors from around the world. TASE members trading on behalf of their customers include global banks like Barclays, Citibank, and HSBC. Merrill Lynch is also a member.
TASE listed mutual funds and Exchange Traded Funds (ETFs) are an easy way to get started with investing in Israel’s stock market. In recent years, many of these funds have substantially outperformed the Standard and Poors’ Index.
Market Performance
Last year, 540 companies were trading on the Tel Aviv Stock Exchange. Both the TA-35 and TA-90 indices showed solid gains of well over 25 percent.
Of the 97 IPO’s launched last year, 55 were from the tech sector alone. Both of these numbers were record-breaking as was the amount raised, doubling the 2020 figures.
When exploring the breakdown of Tel Aviv’s listings, we can see that 55 of the new companies that raised capital came from the tech industry, whilst eight were part of R&D partnerships.
Over the past five years, Israel’s booming technology economy has seen a return to investors of nearly 170 percent cumulatively.
Other areas of the economy, including housing, also are showing strong growth. Read on to find out how to start investing in Israeli stocks.
Getting Started In Israeli Stocks
For many people first considering getting started in investing in Israeli stocks, bonds, and convertibles, the best way to invest is with Exchange Traded Funds.
An Israeli ETF, or a combination of them, offers a balanced, low-risk entry into the market with wide exposure to the entire Israeli economy.
Israeli Stocks: Opportunity Knocks
With strong government support and major investments from leading multinational companies, Israel’s reputation as ‘The Start-up Nation’ has never been stronger.
Particularly in the tech field, where Israeli innovation has frequently been a world leader, an investment in the Israel Stock Market is a smart move for savvy investors.
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