May Returns Split Sharply Across Israel’s Major Education Funds

Israel’s medium-term savings products posted another winning month in May, lifted by strong gains in global and local markets. The Nasdaq rose about 8.4% during the month, the S&P 500 gained 5.1%, and the Dow Jones Industrial Average added 2.8%. In Israel, the TA-90 climbed 5.01%, the TA-125 advanced 2.7%, and the TA-35 rose 1.85%.

Against that backdrop, the 10 largest education funds reviewed by Walla Money delivered an average return of 2.11% in the general track and 3.54% in the equity track. The widest gap in the general track was between Analyst, which topped the table with a 2.75% return, and Meitav, which finished last, leaving a 0.94 percentage-point spread. In the equity track, Clal Insurance came first with 4.43%, while Altshuler Shaham finished last, trailing by 1.73 points.

ערן גולדרינג, deputy CEO and head of investments at Analyst, said May was positive across markets, especially for technology and chip stocks, which posted double-digit gains. He added that technology also stood out in Israel, mainly because of global trends and dual-listed shares on the Tel Aviv Stock Exchange, while banks lagged because lower interest rates and easing inflation reduce returns on equity. Bonds, both government and corporate, also performed well.

Goldering said Analyst benefited from increasing its exposure to technology and semiconductors after March’s declines, and from extending duration, which helped in April and May, along with its Israeli portfolio and energy holdings. Looking ahead to June, he said markets were showing mixed signals but US valuations remained reasonable at about 20 times earnings. He warned that the market is heavily reliant on AI investment, while also noting that Trump’s announcement of an agreement and falling oil prices helped markets recover. If oil falls back to $60 to $70 a barrel, he said inflation expectations could ease and rate cuts might resume. In Israel, he said the agreement is seen less favorably for strategic reasons, though the economy still has subdued inflation and a continued trend toward lower rates.