Altshuler Leads August Gains in Israeli Study Funds, Long-Term Performance Varies

In August, Altshuler Shaham emerged as the top performer among Israeli study funds (קרנות השתלמות) in both the general and stock-track routes, driven by significant exposure to international markets and technology stocks. The general track saw Altshuler Shaham achieve a 1.9% return, followed by Meitav (1.7%) and More (1.6%). In the stock track, Altshuler Shaham led with a 3.5% return, ahead of More (2.6%) and Meitav (2.5%).

However, this short-term success contrasts with longer performance horizons. Over the year-to-date and 12-month periods, Clal leads the general track, while More leads the stock track. Looking back three years, Clal again leads the general track with a cumulative return of 43.6%, and More leads the stock track with 75.7%. In these longer-term comparisons, Altshuler Shaham's performance places it near the bottom of the rankings.

The article emphasizes that August's strong performance for Altshuler Shaham was largely due to its high allocation to U.S. technology stocks, which experienced a significant rally. Conversely, the strengthening Israeli shekel against the dollar offset some gains for Israeli investors. Experts caution against choosing a study fund based solely on monthly returns, as this can be misleading. Factors like portfolio structure, exposure to global markets, and currency fluctuations significantly impact short-term results.

When selecting a study fund, investors are advised to consider management fees, which are not always factored into advertised returns and can significantly impact net gains over time. The choice of investment track should align with the saver's risk tolerance and investment horizon, rather than chasing the latest monthly leader. Study funds offer significant tax advantages, with funds becoming accessible for any purpose after six years, or after three years for approved professional development.