New Nasdaq ETF Offers US Investors Exposure to 120 Israeli Companies

American ETF issuer Defiance has launched a new exchange-traded fund on the Nasdaq, providing U.S. investors with access to 120 Israeli companies traded on the Tel Aviv Stock Exchange. The fund, named the Defiance KSM Israel 120 ETF and trading under the ticker ISRL, was developed by Defiance in collaboration with index provider TMX VettaFi and sponsored by KSM, part of Phoenix Investments.

The ETF will track the KSM Israel 120 Index, which comprises 120 of the largest companies listed on the Israeli stock market across various sectors including technology, defense, finance, insurance, real estate, energy, and healthcare. This new product aims to simplify investment in the Israeli market for institutional investors, portfolio managers, investment advisors, and individual investors in the U.S. and other markets.

It allows investors to purchase a single unit on the American stock exchange that provides exposure to a broad basket of Israeli stocks, eliminating the need for direct trading on the Tel Aviv Stock Exchange or purchasing individual company shares. This is Defiance's second ETF sponsored by KSM. Defiance specializes in ETFs tracking specific themes and trends, with Tidal Investments managing the new fund.

KSM will provide financial backing but will not manage investments or offer advisory, sales, distribution, or marketing services for the ETF. The launch is intended to offer international investors an additional avenue to access the Israeli market. Unlike some other U.S.-based Israel-focused products that may include companies with primary operations abroad or not listed in Tel Aviv, the ISRL ETF's index specifically focuses on Israeli companies traded on the local exchange.

Defiance CEO Matthew Bielski stated that the launch is a significant milestone in connecting American capital with Israeli innovation, noting Israel's established position as an economic and technological powerhouse and the growing demand for a transparent and efficient product to tap into its growth potential. He emphasized that investing via the Tel Aviv-listed index combines deep local expertise with the accessibility and standards of the U.S. capital markets.