The Tel-Bond 60 Index gained 7% in the past 12 months. The index consists of the 60 corporate bonds, fixed-interest and CPI-linked, with the highest market capitalization among all the bonds traded on the Tel Aviv Stock Exchange. The bonds are all rated between A- and Aaa (the highest rating possible). The index can be purchased via a lost-cost ETF through an Israeli investment account. Other investment-grade Israeli corporate bonds yield up to 9%, and even the international ACE Home Centers currently yields over 16% in Israel.
Heaviest mutual funds withdrawals since 2008 crash
The Israeli public withdrew a net 2 billion shekels from mutual funds the fourth week of May (the largest weekly amount since Nov. 2008) , but invested 1 billion shekels in money market funds, according to Meitav Investment House, Ltd. Investors sold holdings in riskier stock-based mutual funds in favor of safer money market funds. The Tel Aviv 25 and 100 stock Indexes fell almost 5% in May. In contrast, the Tel Aviv Bond 20 Index gained 0.5% in that same period. The investing public is beginning to choose less volatile asset classes.