TASE's Fund Indices (TAF)

For years, the Tel Aviv Stock Exchange has led Israel's index market, with its indices serving as the underlying benchmarks for passive funds. Now, the Exchange is bringing that same expertise and proven track record to the world of active mutual funds.

The Exchange's Fund Indices (TAF - Tel Aviv Funds) are a new family of indices built to benchmark the performance of active mutual funds. For the first time, investors can measure a fund against its true peers - simply, transparently, and in one place.

Return matters, but it doesn't tell the whole story. To understand how a fund is really performing, you need to assess it on a relative basis, against funds with similar characteristics - a view investors have never had easy access to until now. TAF closes that gap, providing a clear benchmark for every category so investors can compare like with like and make more informed decisions.

How Do the Fund Indices Work?

As of August 2026, the Israel Securities Authority classifies mutual funds into 56 categories. In its first phase, the Exchange launched 14 Fund Indices, each constructed to mirror one of the Authority's classification categories. The indices are calculated using the Exchange's structured, transparent methodology and are reviewed and rebalanced annually.

A category is included only when it meets three eligibility criteria:

• A fund track record of at least 24 months
• Minimum assets under management (AUM) of approximately NIS 30 million per fund
• At least 20 funds in the category

This ensures every fund can be benchmarked against the right peer group - funds within its own category.

The result: a reliable index that reflects the performance of the entire category.

What Do the Fund Indices Enable?

• Benchmark a fund against its peers in the same category
• See at a glance whether a fund is outperforming, in line with, or underperforming its category
• Evaluate performance through a simple, intuitive tool
• Access the information free of charge

Important to remember: this comparison doesn't replace independent judgment or investment advice. It adds a layer of information that supports a smarter, more informed decision-making process.

An Example

Take an active (open-end) fund that specializes in Israeli equities and is classified under the Israel Large & Mid Cap category. The relevant Fund Index shows whether the fund is outperforming, in line with, or underperforming the category average. That reveals the real value added by active management - not just the fund's absolute return.

What Makes TAF Unique?

TAF is built on the Exchange's deep expertise in index construction. Behind it stands a professional, consistent, and transparent methodology, designed to open up information that was never before available to the public - part of a broader effort to expand the investor's toolkit.

The launch of TAF is only the first step. The Exchange plans to continue developing additional Fund Indices across a range of investment products, further expanding accessibility, transparency, and the ability to make informed investment decisions.

Index values are published daily, based on a transparent methodology and free of charge - on the Exchange's website and through a range of market data vendors.