July Training Fund Ranking: Funds That Shielded Investors from Declines
July was a quiet month in the markets, with the Tel Aviv 35 index adding about 2% while US indices closed with slight declines. In the yield tables, this translated into tiny movements where fractions of a percent determined the leaders and laggards.
After a volatile June, July 2026 was a much calmer month in the markets. On the Tel Aviv Stock Exchange, flagship indices recorded moderate gains, led by the Tel Aviv 35, which added about 2%. Meanwhile, on Wall Street, trading was largely flat: the S&P 500 index fell by only 0.1%, the Nasdaq saw an even smaller decline, and the Dow Jones index rose by approximately 1.2%.
This environment, where foreign markets barely moved and gains in Israel were concentrated in large-cap stocks, created an interesting landscape for training funds: minor fluctuations where the difference between the top and bottom performers was measured in fractions of a percent.
In the general track, Yelin Lapidot finished first with a return of -0.01%, a solid performance compared to its peers. It was followed by Mor (-0.13%), Phoenix (-0.18%), and Menora (-0.34%). Harel closed the table with a relatively unusual decline of 1.24%.
In the stock track, a familiar name returned to the top: Altshuler Shaham, which led in June, maintained its lead in July with a decline of only 0.28%. It was followed by Mor (-0.34%) and Yelin Lapidot (-0.39%). Here too, Harel remained in last place with a decline of 2.10%.
A curious point emerges: the fund finishing last in both training tracks is the same company, Harel, which simultaneously leads both investment savings tables. The same investment house, the same tracks, the same month, yet completely opposite results between the two products. This is not a new phenomenon and continues to be a subject of market discussion.
Beyond monthly noise, it is worth remembering that a single month is not indicative of long-term success. Yelin Lapidot, which led this month in the general track, presents one of the lowest returns over the last three years (35.91%), while Altshuler, the champion of the stock track, closes the three-year table in the same category with 57.42%. In contrast, Clal continues to show one of the highest cumulative returns since the beginning of the year. In other words, current leaders are not necessarily long-term winners.
For those unfamiliar with the instrument, a training fund is arguably the most profitable savings vehicle available to the Israeli public. For employees, employers contribute up to 7.5% of the salary while the employee contributes 2.5%; for the self-employed, deposits are tax-deductible.
The crown jewel is the tax exemption: after six years, one can withdraw the full amount, including profits, without paying a single shekel in capital gains tax, up to a certain ceiling. In a world where other capital market gains are taxed at 25%, this is a benefit of significant value.
