iShares MSCI Israel ETF

EIS

Valor de mercado US$ 867 mi

A brand-new Israel ETF with barely three weeks of trading history already shows how fast a single country fund can swing when currency, geopolitics, and sector concentration all pull in the same direction at once.

The iShares MSCI Israel ETF offers concentrated exposure to Israeli equities, with strong representation in financials, technology, and defense sectors. EIS benefits from a supportive macro backdrop, robust GDP growth forecasts, easing inflation, and sectoral momentum in tech and defense. Valuation remains reasonable at a 17x P/E, though the fund trades above its 10-year average and faces concentration and geopolitical risks.

In a recent interview, legendary investor Bill Ackman was asked about why he was bullish on the economy of Israel. The question comes with Ackman owning around a 5% stake in the Tel Aviv Stock Exchange.

Israel has launched its fifth competitive process to search for more natural gas in the country's ​economic waters, Energy Minister Eli Cohen said on Monday, seeking to ‌bolster domestic reserves while increasing exports.

Israel expects more orders ​for air and missile defence systems from European countries soon, with at least ‌one contract expected within weeks, a senior official at Israel's defence ministry said.

The UK's blue-chip index advanced on Tuesday, supported by gains in mining-related shares as base metal prices strengthened, while energy stocks came under pressure following a decline in crude oil. Broader sentiment was also influenced by geopolitical developments, including renewed expectations of progress in US–Iran talks.

EIS (iShares MSCI Israel Capped ETF) has delivered 73% returns over the past year, outpacing both the S&P 500 and global peers. EIS maintains a buy rating, supported by attractive valuation (P/E 15.5x), robust momentum, and a resilient long-term technical uptrend. The ETF's portfolio is concentrated in Financials (over one-third) and Information Technology (20%), with notable biotech and cybersecurity exposure.

Gulf Cooperation Council (GCC) economies are sliding into their worst economic crisis since the pandemic, with several expected to contract this year on ​spillovers from the U.S.-Israel war with Iran right on its doorstep.

CNBC's Dan Murphy delves into the Middle East's investment flows and provide insights on the global energy hub and the vast amounts of capital originating from the region on Access Middle East (12:00 – 13:00 SIN/HK). Please note this livestream is only available in Europe and India.

The Israeli stock market, which initially rallied at the onset on the country's joint campaign with the U.S. against Iran, is now trading at pre-war levels.