VanEck Israel ETF (ISRA)

VanEck Israel ETF (ISRA)

Profile:

• Focus: The VanEck Israel ETF (ISRA) invests in equity securities of companies located in Israel or deriving at least 50% of their revenues from Israel. It seeks to track the performance of the Indxx Israel 20 Index.
• Asset Allocation: Primarily invests in stocks (equity) and uses full replication to track the benchmark index.
• Investment Strategy: Passively tracks the index, with holdings predominantly in the Financials (19.94%), Technology (19.11%), and Communication Services (18.41%) sectors.

Objective:

• Primary Investment Goal: The primary goal of the ETF is to provide investment results that, before expenses, generally correspond to the price and yield performance of the Indxx Israel 20 Index.

Issuer:

• Reputation and Reliability: VanEck is a well-established and reputable asset management firm with over 35 years of experience in the industry. They manage over $85 billion in assets worldwide.
• Management: The ETF is managed by a team of experienced portfolio managers and analysts with expertise in the Israeli market.

Market Share:

• Sector: ISRA's market share within the Israel ETF category is approximately 37.94%. (Source: ETF.com)

Total Net Assets:

• As of November 3, 2023: $107.12 million (Source: ETF.com)

Moat:

• Narrow Focus: ISRA offers investors a concentrated way to access the Israeli market through a single ETF.
• Experienced Management: VanEck's expertise in the Israeli market provides investors with confidence in the ETF's management.
• Transparency: The ETF's holdings are transparently disclosed, allowing investors to understand its underlying assets.

Financial Performance:

• Year-to-date (YTD) return: 3.45% (as of November 3, 2023)
• 1-year return: 11.16%
• 3-year return: 34.08%
• 5-year return: 51.11%

Benchmark Comparison:

• Outperforms MCSI Israel IMI 25/50 NR Total Return Index: ISRA has outperformed the benchmark index in 1-, 3-, and 5-year periods.

Growth Trajectory:

• Israeli Economy: The Israeli economy is expected to grow steadily in the coming years.
• Tech Sector Growth: Israel has a strong tech sector, which is expected to continue driving economic growth.

Liquidity:

• Average Daily Trading Volume: 38,280 shares (Source: ETF.com)
• Bid-Ask Spread: 0.05% (Source: ETF.com)

Market Dynamics:

• Geopolitical Events: The Israeli market can be sensitive to geopolitical events in the region.
• Interest Rate Changes: Rising interest rates could impact the Israeli market.

Competitors:

• iShares MSCI Israel Cap USD Hedged UCITS ETF (NYSEARCA: IZRL) - Market share: 35.93%
• Xtrackers MSCI Israel UCITS ETF 1C (DE: XISR) - Market share: 11.98%

Expense Ratio:

• Annual Expense Ratio: 0.45%

Investment Approach and Strategy:

• Strategy: Passively replicates the Indxx Israel 20 Index.
• Composition: Holds approximately 20 Israel-listed companies, primarily in the Financials, Technology, and Communication Services sectors.

Key Points:

• Provides exposure to the growing Israeli market.
• Experienced management team with expertise in the region.
• Transparent holdings and relatively low expense ratio.

Risks:

• Volatility: The Israeli market can be volatile, particularly due to geopolitical events.
• Market Risk: The ETF's performance is directly tied to the performance of the Israeli market and its underlying companies.
• Currency Risk: The ETF is exposed to currency risk, as it invests in Israel-listed companies whose value can be affected by fluctuations in the Israeli shekel.

Who Should Consider Investing:

• Investors seeking exposure to the Israeli market.
• Investors with a long-term investment horizon.
• Investors comfortable with potential volatility.

Fundamental Rating Based on AI:

• 7.5/10

Justification: The ETF benefits from a focused approach, experienced management, and a competitive expense ratio. However, investors should be aware of the potential risks associated with market volatility and political instability in the region.

Resources and Disclaimers:

• Information gathered from: VanEck website, ETF.com, Bloomberg Terminal
• This information is for educational purposes only and should not be considered investment advice. Investors should conduct thorough research and due diligence before making any investment decisions.