iShares MSCI Israel ETF (EIS)

Overview

The iShares MSCI Israel ETF (EIS) seeks to track the investment results of the MSCI Israel Index, which represents the performance of the broad Israel equity market. The ETF provides exposure to Israeli companies across various sectors and is designed for investors looking to gain exposure to the Israeli economy.

Reputation and Reliability

iShares is a well-established and reputable ETF issuer with a long track record of managing a wide range of ETFs globally. Their ETFs are known for their liquidity, transparency, and efficient tracking of their underlying benchmarks.

Management Expertise

BlackRock, the parent company of iShares, has significant experience and expertise in investment management, including managing ETFs that track various markets and sectors.

Goal

The fund seeks to track the investment results of the MSCI Israel Index.

Investment Approach and Strategy

Strategy: The ETF employs a replication strategy, attempting to hold all the stocks in the MSCI Israel Index in proportion to their weighting in the index.

Composition The ETF primarily holds stocks of Israeli companies across diverse sectors such as financials, healthcare, and technology.

Market Share: EIS is the largest ETF providing access to the Israeli equity market in the US.

Total Net Assets (AUM): 116814437

Key Competitors

• ARK Israel Innovative Technology ETF (IZRL)

Competitive Landscape

EIS faces limited direct competition as the primary fund tracking the MSCI Israel Index. While IZRL offers exposure to Israeli innovation, EIS provides broader market exposure. EIS benefits from its established presence, higher liquidity, and lower expense ratio compared to niche competitors, though IZRL is gaining market share by focusing on innovation.

Historical Performance: EIS has demonstrated performance reflecting the Israeli stock market, with fluctuating returns influenced by global and regional economic factors. Historical performance data can be found on the iShares website and other financial data providers.

Benchmark Comparison: The ETF's performance is directly benchmarked against the MSCI Israel Index. Tracking error is generally low, indicating effective index replication.

Expense Ratio: 0.59

Average Trading Volume

EIS demonstrates a moderate average trading volume, facilitating relatively easy buying and selling of shares.

Bid-Ask Spread

The bid-ask spread for EIS is generally tight, indicating good liquidity and lower trading costs.

Market Environment Factors

The ETF's performance is influenced by factors such as the health of the Israeli economy, global economic conditions, geopolitical events, and sector-specific trends in Israel.

Growth Trajectory

The growth trajectory of EIS is closely tied to the overall performance of the Israeli equity market. Changes in the index composition or investment strategy are infrequent but can influence future performance.

Competitive Edge

EIS's primary advantage lies in its established position as the largest and most liquid ETF tracking the MSCI Israel Index, attracting investors seeking broad exposure to the Israeli market. Its lower expense ratio and track record of effective index replication provide a competitive edge compared to smaller or more specialized funds. The fund benefits from the robust infrastructure and expertise of iShares, ensuring efficient management and accessibility for investors. EIS also benefits from its focus on the broader Israeli market, which attracts investors more interested in an all-encompassing solution.

Volatility

EIS exhibits moderate volatility, reflecting the inherent risk associated with equity investments in the Israeli market. Geopolitical factors and regional economic conditions can contribute to volatility.

Market Risk

The ETF is subject to market risk, including fluctuations in the value of Israeli equities. Specific risks include political instability in the region, currency risk, and sector-specific risks within the Israeli economy.

Ideal Investor Profile

EIS is suitable for investors seeking to diversify their portfolios with exposure to the Israeli equity market. It is appropriate for those with a moderate to high risk tolerance and a long-term investment horizon.

Market Risk

EIS is best suited for long-term investors seeking passive exposure to the Israeli market and willing to accept moderate risk.

The iShares MSCI Israel ETF (EIS) offers investors a convenient and liquid way to access the Israeli equity market. It tracks the MSCI Israel Index and provides broad exposure to Israeli companies across various sectors. While the ETF carries moderate risk due to its concentration in a single country and potential geopolitical issues, its historical performance has mirrored the Israeli stock market. With a low expense ratio, it is a cost-effective way to achieve diversification through exposure to Israel's economy and business sector.

Data Sources:

• iShares Official Website
• MSCI Index Fact Sheet
• Morningstar
• Bloomberg
• ETF.com

Disclaimers:

The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results. Market data is dynamic and subject to change.