In a country that is currently embroiled in war—Israel, its stock market has surprisingly turned red against the trend, and its index ETF, $iShares MSCI Israel ETF(EIS)$ , has reached an all-time high. Why is this the case?
The price of $iShares MSCI Israel ETF(EIS)$ has quietly set a new all-time high, with a year-to-date increase of 13.29% and a rise of 32.41% last year.
The $iShares MSCI Israel ETF(EIS)$ is an ETF product listed on the US stock market, with the stock code EIS.N. This ETF tracks the MSCI Israel Index, covering large and medium-sized companies in the Israeli market.
The top ten holdings of $iShares MSCI Israel ETF(EIS)$ account for 54.99% of the total market value of the ETF. The top ten holdings of this ETF and their respective proportions are as follows:
$Bank Leumi Le Israel(BLMIF)$ accounts for 8.69%;
$Bank Hapoalim B.M.(BKHPY)$ accounts for 7.46%;
$Teva Pharmaceutical(TEVA)$ accounts for 6.82%;
$Check Point(CHKP)$ accounts for 6.69%;
$CyberArk(CYBR)$ accounts for 6.46%;
$Elbit Systems Ltd(ESLT)$ accounts for 4.26%;
$Monday.com Ltd.(MNDY)$ accounts for 4.14%;
$Nice Ltd(NICE)$ accounts for 3.76%;
$Israel Discount Bank Ltd.(ISDAF)$ accounts for 3.70%;
$Mizrahi Tefahot Bank Ltd.(MZTFF)$ accounts for 3.01%.
Source: Tiger Brokers
From the holdings, we can see that the ETF covers multiple industries including banking, pharmaceuticals, and software technology.
Below is the dividend situation of $iShares MSCI Israel ETF(EIS)$ every six months.
Source: Tiger Brokers
Why is the performance of Israel's ETF so good? Here is a basic overview of Israel's national conditions and economy for communication purposes.
Strong Economic Foundation Israel is a global technology hub based on software, cybersecurity, and innovation. It is the only developed economy in the Middle East with a strong economic base and considerable resilience to external shocks. Its strong capabilities in technology and finance enable high-quality companies in these sectors to maintain good profitability under complex situations, supporting stock market performance.
Technology Industry Drive Israel's technology industry is highly developed and holds an important position globally. There are signs of recovery in the listing of technology stocks in 2025, such as the soaring stock price of the US software company ServiceTitan(TTAN) after its listing, which has driven the vitality and optimism of the global and Israeli technology primary markets. At the same time, Israeli technology companies like Supercom and Arbe Robotics have gained market attention for their progress in digital security and autonomous driving, driving up stock prices and thus the overall stock market performance.
International Capital Support Israel is a key hub in the US technology chain and holds a special position in the layout of international capital. International capital favors the Israeli stock market, and even during periods of regional tension, there is capital inflow to support the stock market.
Central Bank Policy Support The Bank of Israel has more than $200 billion in foreign exchange reserves and has sufficient tools and capabilities to intervene in the market and stabilize the stock market situation during special periods such as wartime. For example, by providing liquidity and stabilizing exchange rates, it creates a relatively stable macroeconomic environment for the stock market.
Geopolitical Situation Changes Although the geopolitical situation surrounding Israel is tense, historical experience shows that after some major conflicts, the Israeli stock market usually performs well. The development of some geopolitical events in 2024 has led to positive market expectations and increased investor confidence, driving up the stock market. Moreover, the development trend of some conflicts in 2025 leads investors to believe that Israel may occupy a more favorable position in the regional situation, thus attracting funds into the stock market. Market analysis points out that if regional tensions further intensify, Middle Eastern ETFs, including Israeli ETFs, may be severely impacted.
Innovative Ecosystem and Entrepreneurial Spirit Israel has a strong innovative culture, with continuous innovation achievements in fields such as cybersecurity and agricultural technology, attracting a large amount of domestic and foreign investment. Its comprehensive innovative ecosystem and active entrepreneurial spirit provide a good environment for enterprise development, with new enterprises growing continuously, injecting new vitality into the stock market.
Strategic Location Advantage Israel is located at the junction of the three continents of Europe, Asia, and Africa, with a significant strategic position, which is conducive to developing trade relations, promoting capital flow and market access, creating favorable conditions for enterprise development and stock market prosperity.
Technical Analysis From a technical analysis perspective, EIS showed a strong upward trend in 2024, breaking through several key resistance levels. The moving average (MA) shows that both short-term and long-term moving averages are on an upward trend, indicating an optimistic market sentiment.
Institutional Information on Recent Purchases and Increases of $iShares MSCI Israel ETF(EIS)$
Cyndeo Wealth Partners LLC: Bought 3,790 shares in the first quarter of 2025, worth about $282,000.
Sanctuary Advisors LLC: Newly established a position in the fourth quarter of 2024, with a holding value of about $678,000.
Kohmann Bosshard Financial Services LLC: Bought in the fourth quarter of 2024, with a holding value of about $47,000.
Jones Financial Companies LLLP: Increased holdings by 333.6% in the fourth quarter of 2024, holding 1,973 shares after purchasing an additional 1,518 shares, worth $152,000.
New Square Capital LLC: Bought in the fourth quarter of 2024, with a holding value of about $1.288 million.
Raymond James Financial Inc.: Bought in the fourth quarter of 2024, with a holding value of about $681,000.
CX Institutional: Holds 183,199 shares, the largest holding company as of March 31, 2023 (within the data statistics range).
Jane Street Group LLC: Holds 124,296 shares as of March 31, 2023.
Korea Investment Corp: Holds 69,724 shares as of March 31, 2023.
Future Outlook Looking ahead, the performance of EIS will continue to be influenced by the global economic environment, geopolitical situation, and local economic policies in Israel. Investors should closely monitor changes in these factors to make wise investment decisions.
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