Israel ETF Update 7/10/2008
Posted on Thursday, July 10th, 2008 | In Current Market News, Exchange Traded Funds, IsraelJune was a tough month for the market in general and Israel stocks were hit with a double whammy: tech stocks proved they were no longer immune to the weakening economy and the shekel continued its march higher versus the dollar.
Both EIS, the iShares MSCI Israel Capped Investable Market Index Fund, and the TAV, the NETS TA-25 Index Fund, were down about 3-4% with the overall Nasdaq down about 8%.
If you look closer at the chart, you’ll see that the TAV just recently outperformed the EIS. TEVA Pharmaceuticals (TEVA) was recently hit hard off of news of more imminent generic competition to Teva’s Copaxone (tables turned, eh?) in spite of some incrementally positive news on progress on a drug to treat Parkinsons.
We’ve written about the EIS’s extreme exposure to the generic pharma giant (weighing in at almost 25% of EIS) and this in turn, makes iShares’ Israel ETF more susceptible to fluctuations in TEVA’s stock price and ultimately, not as good a proxy for the entire Israeli market (of which TEVA constitutes less than 10% of market cap and which the TAV attempts to mimic).
Some additional reading:
- Introducing the First ‘Real’ Israel ETF
- Bulling up for some real TA-25 exposure for US Investors
- Dave Fry’s ETF Digest discusses existing Israeli ETFs
Last 5 posts by Israel Investor Newsletter
- Crisis in Israeli consumer confidence? - April 1st, 2009
- Top Israeli startups faceoff at Seedcamp Israel tomorrow - January 28th, 2009
- Taking out time for the important things - January 12th, 2009
- (Almost) official: Treasury bailing out Israeli pensions - December 9th, 2008
- StockTwits investor experiences Twitter epiphany - November 27th, 2008
 About Israel Investor Newsletter (http://israelnewsletter.com)
Aaron Katsman is a managing director and the senior portfolio manager of America Israel Investment Associates, Israel Growth Portfolio (www.israelgrowth.com) where he manages a portfolio of Israeli stocks that trade in the US. He is also president of the Global Investments for Profile Investments. Aaron is a frequent contributor to StraightStocks.com, focusing on Israeli stocks. Zack Miller embodies the nexus between asset management, equity research, and new internet distribution technologies. Previously, Zack was an analyst at Oasis Capital Management, a multinational, multi-strategy hedge fund. Zack’s area of expertise is discovering and analyzing undervalued technology stocks, particularly of small-cap companies. Zack holds an MBA from the Kellogg School of Management and a B.A. from Harvard University. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.