The S&P 500 index gained 1.10% in Q3 2014. MSCI EAFE and MSCI EM lost -5.80% and -3.40%, respectively. Israeli companies continued to list on U.S. exchanges during the quarter. Among the most notable were technology companies Mobileye, CyberArk and ReWalk. They will all be eligible to enter the BIGI and/or the BIGITech during the December 2014 rebalancing.
We continue to believe that Global Israeli Information Technology, Health Care, and Materials companies are poised to benefit from global growth in those industries for the foreseeable future while the trend for stocks more closely tied to the domestic economy will be uncertain for some time to come.
This is an updated version of our inaugural “BluePaper,” originally published in February 2014, on a topic that is highly relevant to prospective investors in Israeli equities. We contrast the perception of risk in Israeli markets versus the reality of economic resilience and correlations with global rather than local events.
The resilience and strength of global equity markets - including Israeli equities as measured by the BlueStar Israel Global Index - is not only perplexing but worrying to some. However one must continue to analyze what matters most to equity markets and do one’s best to cancel out background noise.
This article focuses on how one particular subset of indexing—single-country funds based on arguably superior index construction methodology—is changing one element of the international investing landscape.
The BlueStar Israel Global Index and the BlueStar Israel Global Technology Index (“BIGITech”) underwent their semi-annual rebalance and reconstitution. As a result of increased IPO activity during the first and second quarters of 2014, BIGI added a net of 12 new constituents and BIGITech added a net of four new constituents...
"To sum up, Market Vectors Israel has a more balanced composition than iShares MSCI Israel Capped..."