Tel Aviv Stock Exchange

Allocate 15-20% of a diversified portfolio to TASE-listed tech and renewable energy firms, leveraging Israel’s innovation ecosystem. The exchange hosts over 450 companies, with a combined market capitalization of $400 billion as of Q2 2023. Fintech giants like Check Point (CPTN) and solar energy leaders such as Energix (ENRG) outperformed the TA-35 Index by 9.3% in 2022.

Prioritize liquidity by focusing on stocks with average daily volumes above $2 million. TASE’s fixed-income market, representing 42% of total trading activity, offers 7-9% yields on corporate bonds from entities like Bank Hapoalim (POLI). Use futures on the TA-35 Index (TA35F) to hedge currency exposure, with ILS/USD volatility averaging 12% annually.

Foreign investors require local custodians and face a 25% capital gains tax. Optimize entry points using TASE’s quarterly volatility patterns: September historically experiences 18% higher trading volumes due to institutional rebalancing. The ESG Tel-Bond AAA Index, up 14% YTD, provides low-risk exposure to sustainable debt instruments.

Monitor TASE’s dual-listing reforms, set to expand in 2024, which reduced compliance costs by 30% for foreign firms in 2022. Short-term traders should track the 5-day RSI correlation between TA-35 and NASDAQ (currently 0.83), exploiting arbitrage opportunities during U.S. market openings.