At its March 30th, 2017 board meeting, the Tel Aviv Stock Exchange (TASE) Board of Directors approved the launch of two new Equity indices: the TA-SME150 and the TA-Rimon indices. Both indices include a large number of shares and are designed to facilitate investment in a large and widely dispersed basket of shares, which reflects the Israeli economy.
A more detailed look at the new indices follows:
This index comprises all constituents of the TA-90 and TA-SME60 indices. Only large and medium-size enterprises are included in the index, excluding constituents of the TA-35 and the TA-Growth indices.
The index is equally weighted, with each share having a weight of 0.67%, such that the broad dispersion minimizes exposure to any individual share. The index includes relatively few global enterprises, it is suitable for investors interested in companies which are primarily active in the Israeli economy.
The base price for the index launch will be identical to the TA-90 index base-price on 07.05.2017.
The TA-Rimon index comprises all shares in the Rimon share universe (appx. 220 shares). Shares included in this index must meet strict criteria specifically designed for the construction of the flagship indices. The index is conservative in character and similar to that of the TA-SME150, except that this index includes TA-35 index shares as well.
The weight cap of the index is 1%, meaning that this index is widely dispersed, and exposure to individual shares is relatively low.
This index is designed for investors interested in a market portfolio of relatively seasoned shares, which does not include smaller companies (as opposed to the AllShare index, the most comprehensive TASE composite index, which includes small and micro-cap shares as well).
The index’s launch base price will be identical to the TA-AllShare index base-price on 07.05.2017.
Both indices are scheduled for launch on May 7, 2017, which is the monthly rebalancing date for TASE equity indices.
Robby Goldenberg, Senior Vice President, Head of the Trading, Indices and Derivatives Department remarked: "The launch of the new indices was made possible by the reform of TASE equity indices, which was launched two months ago. The new indices will enable the tracking and investment in a highly dispersed basket of frontline TASE shares, which can considerably lower exposure to individual shares, benefiting investors and public companies alike".