The Tel Aviv Stock Exchange is expanding the range of investment products and announces the launch of two new equity indices, as well as a major change to the TA-Retail & Food Index, which will be renamed the TA-Consumption Index.
The creation of new indices forms part of the implementation of the Exchange’s strategic plan relating to diversification, inclusion, and the development of the Israeli capital market, while adapting it to trends taking place in the local capital market. The launch of the new indices is intended to provide investors with a broader range of investment products, enhance competitiveness in the capital market, and increase liquidity and trading activity on the Exchange.
TA-35 Equal Weight Index
The Exchange continues to adapt to changing market conditions and align itself with international standards and practices common among leading global equity indices. As part of its efforts to innovate and diversify the range of indices, the Exchange is launching the TA-35 Equal Weight Index.
The new index will include all shares included in the TA-35 Index. The weight of the ten largest shares in the current index is presently close to 60%; however, unlike the existing index, each constituent share in the new index will receive an equal weight of approximately 2.85%, so that the weight of the ten largest shares in the new index will be approximately 28.5%.
The equal-weight version of the TA-35 Index provides investors with broader diversification among index constituents and thereby helps reduce concentration risk of a particular company, precisely by lowering the weight of Mega Cap shares. For example, an investor seeking to reduce exposure to bank shares and increase exposure to real estate shares may do so under the flagship TA-35 brand through the TA-35 Equal Weight Index.
The new index joins the Exchange’s family of equal-weight indices, including, among others, the TA-Banks-5 Equal Weight Index, the TA-Banks & Insurance Equal Weight Index, which were launched recently, as well as the TA-125 Equal Weight Index, the TA-90 Profitability Model Equal Weight Index, the TA-SME60 Profitability Model Equal Weight Index, and the Tel Div Index, which is also calculated on an equal-weight basis.
TA-Food Index
The TA-Food Index will include shares from across the food sector in Israel, ranging from Food tech companies developing new food products, through large food manufacturers, food importers, and major retail chains.
According to a simulation conducted by the Exchange staff, the index is expected to include 21 shares, with an aggregate market capitalization of approximately NIS 65 billion. Ten of the 21 constituent shares were listed during the past eight years.
TA-Consumption Index
The TA-Retail & Food Index will undergo a major change and be renamed the TA-Consumption Index, with the aim of improving its attractiveness.
The index will include shares of Israeli companies whose principal activity is in consumer products intended for the retail market. According to a simulation conducted by the Exchange staff, the index is expected to include approximately 50 shares, with an aggregate market capitalization of approximately NIS 108 billion.
The list of companies eligible for inclusion in this index will be updated annually in March by the Exchange’s Research Unit.
The launch date of the new indices will be Friday, May 8, 2026, and the record date for determining the list of companies to be included in the indices will be April 16, 2026.
The sector allocation breakdown by sector and sub-sector for each of the indices is set out below.
TA-35 Equal Weight Index:
|
Sector |
TA-35 EW |
TA-35 |
|
Insurance |
15.8% |
12.70% |
|
Real Estate & Construction |
14.8% |
7.20% |
|
Commerce & Services |
8.3% |
4.30% |
|
Technology |
24.4% |
35.80% |
|
Industry |
8.5% |
3.00% |
|
Energy and Oil & Gas Exploration |
13.2% |
6.70% |
|
Banks |
12.5% |
24.40% |
|
Biomed |
2.4% |
5.90% |
|
Sub-Sector |
TA-35 EW |
TA-35 |
|
Insurance |
15.8% |
12.70% |
|
Investment Properties in Israel |
12.1% |
6.70% |
|
Communications & Media |
2.9% |
2.50% |
|
Software and Internet |
2.2% |
2.40% |
|
Chemical, Rubber and Plastic |
2.4% |
1.50% |
|
Oil and Gas Exploration |
9.2% |
4.30% |
|
Banks |
12.5% |
24.40% |
|
Pharma |
2.4% |
5.90% |
|
Renewable Energy |
6.4% |
6.60% |
|
Food |
3.0% |
1.00% |
|
Retail |
2.8% |
1.10% |
|
Defense |
6.0% |
9.80% |
|
Semiconductors |
9.9% |
17.00% |
|
Construction |
2.7% |
0.50% |
|
Metal & Building Products |
3.2% |
0.60% |
|
Energy |
4.0% |
2.40% |
|
Hotels & Tourism |
2.6% |
0.60% |
TA-Food Index
|
Sector |
TA-Food |
|
Commerce & Services |
66.0% |
|
Industry |
27.0% |
|
Technology |
7.0% |
|
Sub-Sector |
TA-Food |
|
Retail |
36.5% |
|
Food |
27.0% |
|
Commerce |
29.6% |
|
Foodtech |
7.0% |
TA-Consumption Index
|
Sector |
TA-Consumption |
|
Commerce & Services |
68.4% |
|
Industry |
25.1% |
|
Energy and Oil & Gas Exploration |
3.8% |
|
Technology |
2.8% |
|
Sub-Sector |
TA-Consumption |
|
Retail |
39.4% |
|
Food |
12.6% |
|
Commerce |
29.0% |
|
Wood, Paper and Printing |
1.4% |
|
Fashion & Clothing |
5.4% |
|
Chemical, Rubber and Plastic |
5.7% |
|
Energy |
3.8% |
|
Foodtech |
2.8% |
