BlackRock Returns to Tel Aviv Bourse with Three New iShares ETFs
Investment giant BlackRock returns to the Tel Aviv Stock Exchange, listing three iShares ETFs to compete in the 374 billion shekel local market. The funds offer shekel-denominated access to global semiconductors, energy, and Indian equities.
Global investment giant BlackRock, managing approximately $15 trillion in assets, is re-entering the Tel Aviv Stock Exchange for the first time since 2019 to compete in the local ETF market. The firm is listing three of its existing iShares exchange-traded funds through a dual-listing mechanism, with trading commencing today, Thursday. Senior company executives opened the trading session at the bourse this morning.
The local ETF market currently manages around 374 billion shekels in assets. BlackRock aims to challenge established local providers such as Meitav's Tachlit and Phoenix's Kosem by offering specialized, non-traditional sectoral investment vehicles.
Specialized Global Exposure
The newly listed funds include the iShares MSCI Global Semiconductors UCITS ETF, which tracks a global index of semiconductor and related equipment firms across developed and emerging markets. Unlike the popular US-centric SOX index, BlackRock's fund covers the entire industry value chain, including leading artificial intelligence players.
Additional offerings include the iShares S&P 500 Energy Sector UCITS ETF, tracking energy companies within the S&P 500, and the iShares MSCI India UCITS ETF, focusing on Indian equities.
Taxation and Trading in Shekels
Investors must weigh tax implications carefully, as some local Israeli ETFs offer near-zero management fees. BlackRock's funds are domiciled in Ireland and operate under European UCITS regulations, offering a favorable tax framework. Financial advisory is recommended prior to investing.
To bypass foreign currency exchange fees typically charged by banks, BlackRock is offering these funds traded in shekels. Israeli investors can purchase them directly through local trading accounts without opening foreign currency accounts.
Anat Levin, CEO of BlackRock Israel, stated:
"We are pleased to provide Israeli investors with direct access to some of the most significant global economic trends of the AI era."
She noted that these trends encompass the semiconductor sector driving the AI revolution, the energy sector supporting infrastructure demands, and emerging markets shaped by geopolitical shifts.
