The Tel-Bond 60 Index gained 7% in the past 12 months. This index consists of 60 corporate bonds, fixed-interest and CPI-linked, with the highest market capitalization among all the bonds traded on the Tel Aviv Stock Exchange.
These bonds are all rated between A- and AAA (the highest rating possible). Those interested in this index can be purchase via a lost-cost ETF through an Israeli investment account. Other investment-grade Israeli corporate bonds yield up to 9%, and even ACE Home Centers currently yields over 16% in Israel.
Tel Aviv Stock Exchange sees largest mutual funds exit since 2008 crash
The Israeli public withdrew a net 2 billion shekels from mutual funds the fourth week of May. The market has not see this large of a shift since the crash of November, 2008.
According to Meitav Investment House, Ltd. investors chose to sell holdings in riskier stock-based mutual funds in favor of safer money market funds. In total, 1 billion shekels was added. The Tel Aviv 25 and 100 stock Indexes fell almost 5% in May. Over this same period, the Tel Aviv Bond 20 Index gained 0.5%. It appears that the investing public is beginning to choose less volatile asset classes.
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