New ETF on Nasdaq Offers Direct Access to Israeli Stocks

Defiance ETFs has launched a new exchange-traded fund (ETF) on the Nasdaq under the ticker ISRL, providing U.S. investors with direct access to 120 leading companies traded on the Tel Aviv Stock Exchange. This initiative aims to broaden American investors' exposure to the Israeli economy beyond just technology companies listed in the U.S.

The ISRL ETF tracks the Index 120 index, encompassing major companies across various sectors including banking, insurance, real estate, energy, defense industries, healthcare, and technology. Unlike previous investment avenues that often focused on specific sectors, this ETF seeks to represent a wider spectrum of Israeli business activity.

For American investors, the fund offers simplicity. Shares are traded in U.S. dollars on the Nasdaq, mirroring the process of trading U.S. stocks, while Defiance manages the underlying investments in Tel Aviv. This structure bypasses many of the complexities associated with direct trading on a foreign stock exchange.

The launch is a collaborative effort involving Defiance, index provider TMX VettaFi Global, and investment house Kessam, part of The Phoenix Group. For the Tel Aviv Stock Exchange, the ETF could significantly increase demand for its constituent stocks, potentially boosting trading volumes and liquidity.

Furthermore, the new product is expected to enhance the international visibility of Israeli companies, including those in banking, insurance, real estate, and defense, even if they are not independently listed on U.S. exchanges. This could also help reduce potential valuation gaps between Israeli firms and their international counterparts by increasing foreign investor interest.