Israeli Study Funds Show Flat Returns in September Amid Market Volatility
Translated & summarized from Calcalist by baba
Israeli study funds saw minimal average returns of 0.1% in September due to mixed global market performance and rising bond yields. While some funds like Gallery Clal and Migdal showed slight gains, others like Altshuler Shaham experienced losses. Despite the September slowdown, year-to-date returns are positive at around 6.84%, with Clal leading. Long-term performance also favors Clal, which has the highest three-year return in the industry.
The story in 6 lines · by baba
- Israeli study funds averaged a negligible 0.1% return in September amid market fluctuations.
- Domestic indices showed mixed results while US indices saw declines and gains in September.
- Gallery Clal and Migdal led September returns, while Altshuler Shaham and Yelin Lapidot lagged.
- Year-to-date returns remain positive at approximately 6.84%, with Clal leading.
- Clal also leads in long-term performance with the highest three-year return of 46.55%.
- Meitav manages the largest assets among study funds, holding 36.4 billion shekels.
Israeli study funds experienced nearly flat returns in September, mirroring broader market stagnation. The 11 largest funds in the general track yielded an average return of just 0.1%, with the top performer only slightly ahead of the last place fund. This minimal return is attributed to mixed performance in major stock indices both domestically and internationally. In Israel, the Tel Aviv 35 index rose 1.58% and the Tel Aviv 125 gained 0.47%, while the Tel Aviv 90 fell 2.73%. In the US, the S&P 500 declined 0.45% and the Dow Jones dropped 4.29%, though the Nasdaq 100 saw a rise of 3.23%. Additionally, rising bond yields, which translate to lower bond values in study fund portfolios, likely contributed to the poor performance.
Gallery Clal and Migdal led the rankings with identical returns of 0.17%, followed by Menora Mivtachim at 0.1%. These three companies, with greater exposure to the Israeli market, were less affected by the Wall Street downturn. Conversely, Altshuler Shaham finished last with a decrease of 0.31%, and Yelin Lapidot fell 0.24%. Both investment houses have a relatively high exposure to the American market.
The September results stand in contrast to a much more positive August, when the ten largest funds averaged a 1.35% return. This indicates a significant slowdown in market momentum after a period of gains. However, the year-to-date picture remains positive, with funds averaging approximately 6.84% returns since the beginning of 2026. Clal continues to lead the year-to-date performance with an 8.6% return, followed by More (7.59%), Migdal (7.13%), and Menora Mivtachim (7.1%). Yelin Lapidot is at the bottom with 5.35%, followed by Analyst (6.03%) and Altshuler Shaham (6.12%).
Long-term performance also shows Clal as a standout, with a 46.55% return over the past three years, significantly higher than the industry average of around 42.32%. Phoenix and Analyst follow with 44.8% each, and Meitav with 44.63%. Harel is at the bottom with 38.62%, and Altshuler Shaham with 39.13%. In terms of assets under management, Meitav is the largest fund with 36.4 billion shekels, followed by More (27.75 billion), Altshuler Shaham (25.8 billion), Clal (24.7 billion), and Phoenix (24.6 billion shekels).
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