BlackRock has formally launched an exchange-traded-fund (ETF) that allows European market participants to invest directly in the national Israeli index, making it the first fund to offer direct exposure to the underlying constituents of the index, according to a BlackRock statement.
The iShares TA-25 Israel UCITS ETF (TASE) will represent the first physically replicating ETF to achieve access to the largest 25 companies listed on the Tel Aviv Stock Exchange. Moreover, the underlying index of the fund, TA-25, will be capped by an upper limit on the size of its constituents such that no single company will constitute more than 10% of the total index.
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BlackRock has also announced that the index will be tuned for rebalancing on a semi-annual basis. The new iShares TA-25 index is the latest in a diverse suite that offers up to 70 single country ETFs domiciled in Europe.
According to Alex Pollak, Head of Israel at BlackRock, in a recent statement on the launch: “Investing with precision has never been more important. Israel’s equity market was one of the fastest developed economies to rebound after the financial crisis, and our fund is a cost-effective way to invest in this resilient market and one of the world’s leading technology centres.”
“This is the first exchange traded product that allows investors to invest directly in Israel’s national index in a UCITs framework using their domestic sterling, dollar or euro currencies. This innovation will provide investors based outside of Israel with targeted portfolio exposure to the country,” he added.
“The launch of this ETF will provide an opportunity for global investors to invest in Israeli economy through the TA-25 index. This unique collaboration will increase TASE’s exposure to international investors, who are seeking ways to invest in the Israeli market. We will continue to promote partnerships with leading international financial institutions, develop new products and be responsive to local and global market needs,” noted Yossi Beinart, TASE Chief Executive Officer, in an accompanying statement.
Earlier today, BlackRock announced a partnership with Danish broker, Saxo Bank, which launched a digitized investment solution geared for retail investors. The solution is comprised of iShares exchange-traded-funds (ETFs) via BlackRock, named SaxoSelect. The composition of SaxoSelect investment portfolios included BlackRock ETFs that are garnered from a multitude of European markets, including Denmark, Finland, Italy, Norway, Netherlands and Sweden – the utility is slated to launch in Q1 2016.