Solactive AG and BlueStar Indexes have launched the Solactive-BlueStar Israel Economic Exposure Index (IEEI) family, a pair of indices designed to reflect the segmentation of the Israeli economy between globally-oriented firms and companies primarily focused on serving the domestic economy.
The Solactive-BlueStar Israel Domestic Exposure Index (IDEI) and Solactive-BlueStar Israel Global Exposure Index (IGEI) provide investors with two distinct benchmarks for Israeli equities. These two indexes can be used as vital indicators of Israel’s economic cycles and specific economic trends, as well as tools or vehicles to track the potential risk of geopolitical events in the volatile Middle East. Additionally, these indexes provide insight into the different risk, reward, correlation, yield and other technical and fundamental characteristics of Israeli Global Equities representing Israel’s domestic and global economies.
Steffen Scheuble, CEO, Solactive, says: “By partnering with BlueStar Indexes to launch the Israel Economic Exposure Indexes we are introducing a pair of indexes that enable investors to focus on the two distinct parts of the Israeli economy, and make appropriate investment decisions based on the trends from these two benchmarks. Through anticipated products that will track these indexes, investors will be able to participate in the positive influence of both factors driving the Israeli equity markets.”
Steven Schoenfeld, Founder of BlueStar Indexes, says: “We believe that investors in Israel and around the world will find the unique attributes of the Israel Domestic Exposure Index and the Israel Global Exposure Index to be highly-useful as performance benchmarks for the two categories of Israeli companies – those that are heavily focused on the global market, and those that derive most of their revenue from the domestic economy. BlueStar is proud to partner with Solactive to bring these innovative indexes to the market, and we are confident that a wide-range of products will be launched tracking these unique benchmarks.”
The Solactive-BlueStar Israel Economic Exposure Indexes utilise the constituents of its parent index, the BlueStar Israel Global Index – Total Investable Market (BIGI-TIM) as the basis for its selection universe. BIGI-TIM includes all Israeli and Israel-linked companies, regardless of listing venue, with a float-adjusted market capitalisation of at least USD50 million USD equivalent and six-month average daily value traded of at least USD200,000 USD equivalent. The economic exposure indexes further refines the investable universe to companies that have trailing twelve month revenue of greater than USD2 million USD equivalent at the rebalance selection date. The index methodologies define a company’s economic exposure by the percentage of its revenues derived from the target economic zone – revenue from within Israel for IDEI and revenue from outside of Israel for IGEI. In addition, the index methodology provides for several diversification and liquidity limitations. Finally, the index methodology takes into account the importance of balanced, yet representative, sector exposure and diversification within sectors.