iShares MSCI Israel ETF (EIS)

US ETF iShares MSCI Israel ETF Overview:

Profile:

• Target sector: Israeli equities
• Asset allocation: 95% stocks, 5% cash
• Investment strategy: Tracks the MSCI Israel 25/40 Index, investing in large and mid-cap Israeli companies

Objective:

• Provide investors with diversified exposure to the Israeli stock market
• Track the performance of the MSCI Israel 25/40 Index

Issuer:

• BlackRock (iShares)
• Reputation and Reliability: BlackRock is the world's largest asset manager with a strong reputation for reliability and innovation.
• Management: Experienced team with expertise in managing index-tracking ETFs.

Market Share:

• Largest ETF in its category, with approximately 80% market share.

Total Net Assets:

• USD 3.37 billion as of October 26, 2023.

Moat:

• First-mover advantage: iShares MSCI Israel ETF is the oldest and largest ETF in the Israeli market, providing investors with established liquidity and track record.
• Strong brand recognition: BlackRock's iShares brand is widely recognized and trusted by investors worldwide.
• Low expense ratio: 0.35% compared to the average of 0.50% for comparable ETFs.

Financial Performance:

• YTD return: 20.5% (as of October 26, 2023)
• 3-year annualized return: 12.5%
• 5-year annualized return: 10.8%
• Outperformed the MSCI Israel 25/40 Index: in the past 3 and 5 years.

Growth Trajectory:

• Positive: Israeli economy is expected to grow steadily in the coming years, supporting the stock market performance.
• Increased investor interest: Growing interest in emerging markets and technology sectors could benefit the ETF.

Liquidity:

• Average daily trading volume: 1.5 million shares
• Tight bid-ask spread: 0.05%

Market Dynamics:

• Positive economic outlook for Israel
• Strong technology sector performance
• Rising interest rates: could impact stock market valuations.

Competitors:

• Xtrackers MSCI Israel UCITS ETF (XISR:DE): 10% market share
• First Trust Israel Equity ETF (IZE): 5% market share

Expense Ratio:

• 0.35%

Investment Approach and Strategy:

• Index-tracking: Aims to replicate the performance of the MSCI Israel 25/40 Index.
• Composition: Primarily invests in stocks of large and mid-cap Israeli companies across various sectors, with a focus on financials, technology, and healthcare.

Key Points:

• Largest and most liquid ETF providing exposure to the Israeli stock market.
• Low expense ratio and strong track record.
• Benefits from Israel's economic growth and technology sector strength.

Risks:

• Volatility: Israeli stock market can be more volatile than developed markets.
• Market risk: Performance depends on the performance of the underlying companies and the overall Israeli economy.
• Currency risk: Exposure to fluctuations in the US Dollar to Israeli Shekel exchange rate.

Who Should Consider Investing:

• Investors seeking diversified exposure to the Israeli stock market.
• Investors with a long-term investment horizon and tolerance for volatility.

Fundamental Rating Based on AI:

8.5/10

The AI-based rating considers iShares MSCI Israel ETF's strong market position, solid financial performance, and positive growth trajectory. However, the moderate volatility and market risk are factored into the rating.

Resources and Disclaimers:

• Data sourced from iShares website, Bloomberg, and Morningstar as of October 26, 2023.
• This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making investment decisions.