ByYAIR KLYMAN

JULY 13, 2026 14:12

While attention was elsewhere, Israel's equity market rose to rank among the strongest performers worldwide. Consider this striking figure: 51. That marks the advance posted by the TA-125 Index throughout 2025, even as the nation managed simultaneous conflicts on several fronts.

By comparison, the S&P 500 posted a 16.9 percent return during the same span. The Nasdaq climbed 21 percent, while the Nikkei advanced 26 percent. Relative to leading global benchmarks, the Tel Aviv Stock Exchange not only matched but surpassed expectations. This outcome reflects the strength of a highly adaptable economy and signals why American Jewish investors should take notice.

TASE results across the prior two years stand out as exceptional. During 2024, despite the initial intense phase of conflict after the October 7 attacks, the TA-125 climbed roughly 27 percent, aligning closely with the S&P 500 and outpacing the MSCI Europe Index, which rose just 6 percent. The outlook continues to brighten.

Multiple factors are fueling the advance. Overseas institutional buyers directed more than $2.3 billion into TASE listings during the first nine months of 2025, lifting their aggregate positions to $19.2 billion from $11.2 billion at the close of 2024. At the same time, the shekel appreciated sharply versus the dollar, moving from 3.65 to under 3.20 by year-end, underscoring renewed faith in Israeli economic prospects.

Why, then, do many American Jewish investors remain on the sidelines?

The encouraging reality is that participation does not require opening an overseas brokerage, mastering Israeli tax rules, or transferring funds abroad. Three clear, convenient routes exist for U.S. investors seeking exposure to Israel's expanding economy, each accessible directly from a standard domestic brokerage account.

1. Israel-focused ETFs: Most investors find an exchange-traded fund the simplest route to broad market exposure. Several such vehicles trade on major U.S. platforms and follow indexes covering Israeli equities listed both locally and internationally. Certain funds concentrate on large-cap names, while others provide wider, globally diversified Israeli coverage. These products are easy to evaluate, cost-effective, and available through any conventional U.S. brokerage. For those seeking participation in Israel's market rally without selecting individual names, these ETFs offer the most direct path.

2. Israeli real estate developments: Property in Israel has long appealed to investors in the Diaspora, and with solid justification. Values climbed 118 percent between 2006 and 2017 (82 percent after inflation adjustment), and the fundamental drivers, including limited land supply, rapid population growth, and persistent housing shortages, remain firmly in place.

One point merits careful thought: for American Jews not intending to relocate to Israel soon, committing to new projects rather than completed units may prove the wiser choice. The local housing market has shifted toward sellers. Israelis enjoy greater wealth than before, their equity holdings have risen, and demand for ready-to-occupy homes is intense. As an overseas purchaser seeking finished properties, you face the most contested portion of the market, competing against residents who possess local insight and immediate financing.

Forward commitments to developments operate in a distinct setting. You secure a stake prior to completion, frequently at favorable pre-completion terms, and avoid direct rivalry with urgent local buyers needing housing right away. An analysis from The Jerusalem Post in early 2026 highlighted that the period just ahead of post-conflict stabilization presents a distinctive window for foreign participants, with forecasts pointing to notable price gains once activity resumes. For Diaspora investors, new developments provide the means to capture this potential without contending in the resale segment.

3. Israeli companies on U.S. exchanges: The final option involves purchasing shares of Israeli firms already trading on American markets, a process familiar to U.S. investors. Israel maintains more listings on the Nasdaq than any nation besides the United States and China, and these are established leaders rather than speculative micro-caps. They span cybersecurity, pharmaceuticals, artificial intelligence, defense systems, financial technology, and biotechnology. Interested parties can review these issuers across sectors using any major financial platform.

The appeal lies in its ease. Shares are acquired exactly like any domestic equity, through a standard U.S. brokerage, under full regulatory oversight, denominated in dollars, and free of currency-exchange charges.

It is noteworthy that some of the most active participants in Israel's current economic expansion include European pension funds and Asian sovereign wealth vehicles, while numerous American Jews, who maintain strong ties to Israel, have yet to invest. The evidence is clear: two straight years of superior returns, a firmer currency, rising institutional inflows, and an innovation-driven economy that continues to attract global demand.

Will the data prompt action?

Yair Klyman is an investment adviser representative of Klyman Financial, a DBA of ThePartners Wealth Management, LLC, an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.