iShares MSCI Israel ETF

EIS

Market cap $967M

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.

The U.S.-Israel attacks on Iran killed the Islamic state's Supreme Leader Ayatollah Ali Khamenei, triggering retaliatory strikes from Tehran. Iran has retaliated against U.S. and Israeli aggression with strikes against multiple Gulf nations.

iShares MSCI Israel ETF (EIS) is upgraded to a buy, reflecting strong valuation and technical momentum. EIS has surged 64% since April, outpacing the S&P 500, with robust A+ momentum and attractive 13.7x P/E and 1.48x PEG ratios. The ETF is concentrated in Financials and Information Technology, with notable risk from portfolio concentration and geopolitical volatility.

International ETFs like VEA, EZU & EEM outshone U.S. peers in 2025 as cheaper valuations, diversified exposure, and stimulus measures drove substantial gains.

Global market leadership may be shifting again as trade tensions escalate, the U.S. dollar trades at multi-year lows, and gold at all-time highs. This brings back for the second time this year the quest for the best international ETFs. The most recent global outlook from the IMF points to ongoing strengths in emerging markets and developing economies vs. the U.S. and other advanced economies in 2026.

iShares MSCI Israel ETF (EIS) remains a compelling buy, especially if peace in the Middle East holds and regional integration advances. EIS benefits from Israel's robust tech and finance sectors, which could see renewed growth as international pressures ease. Valuation is attractive with a PE ratio around 12, and peace could further drive sales, margins, and future dividend growth for EIS holdings.