TASE Aligns with International Standards and Expands Equity Index Offerings – Introducing Equal-Weight Indices in the Banking and Insurance Sectors Yaniv Pagot, EVP, Head of Trading at TASE: “The launch of new indices is a significant move for the Israeli capital market, which has a strong demand for new products and increased competition.”
The Tel Aviv Stock Exchange (TASE) is expanding its range of investment products with the launch of two new equal-weight equity indices: the TA-Banks 5 Equal Weight Index and the TA-Banks & Insurance Equal Weight Index.
The introduction of these indices is designed to broaden the variety of investment opportunities available to investors, increase competition in the capital market, and enhance liquidity on TASE. By assigning equal weights to all constituents, these indices allow investors to achieve broader diversification and reduce concentration risk in specific shares.
These two new indices join TASE’s existing family of equal-weight indices, which already includes the TA-125 Equal Weight, TA-90 Equal Weight Profitability Model, TA-SME60 Equal Weight Profitability Model, and the Tel-Div Index, which is also calculated on an equal-weight basis.
Equal-weight indices assign identical weightings to all constituents. Expanding this methodology into the banking and insurance sectors reflects the strong investor demand for exposure to these segments. The TA-Banks and TA-Insurance equity indices are among TASE’s five leading indices by assets under management (AUM), alongside the flagship TA-35, TA-125, and TA-90. Currently, approximately NIS 3 billion is managed in the TA-Insurance Index and NIS 2 billion in the TA-Banks Index.
This development aligns TASE with a global trend of launching equal-weight versions of major indices, following in the footsteps of the S&P 500 Equal Weight, the range of Russell Equal Weight Indices, and many other international benchmarks.
Yaniv Pagot, EVP, Head of Trading at TASE, commented: “The launch of new indices is a significant step for the Israeli capital market, which has a strong demand for new products and greater competition. Developing new indices enables issuers of index-tracking products to offer the public a broader and higher-quality range of passive investment options. A robust and efficient stock exchange is a vital national asset, and its increased activity is crucial for strengthening the Israeli economy, particularly in the current climate. Today, the market for index-tracking funds stands at NIS 300 billion, of which NIS 120 billion tracks TASE indices.”
The launch of these indices is expected to encourage investment houses and insurance companies to design and market innovative products that track equal-weight benchmarks, providing investors with a wider variety of options.
The addition of these new equal-weight indices marks another important step forward for the Israeli capital market, offering the public more high-quality passive investment opportunities for portfolio diversification.
