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The Equity Exchange Traded Funds Market within the Investment Funds Market in Israel is witnessing considerable growth, fueled by factors such as increased investor interest, enhanced market accessibility, and the rising demand for diversified investment options among retail investors.

Customer preferences: Investors in Israel are increasingly gravitating towards Equity Exchange Traded Funds (ETFs) as they seek more accessible avenues for portfolio diversification and tailored investment strategies. This trend is particularly pronounced among younger demographics, who value digital platforms and real-time trading capabilities. Additionally, a growing awareness of environmental, social, and governance (ESG) factors is influencing investment choices, prompting a rise in demand for ETFs that align with sustainable practices. The cultural shift towards financial literacy is further empowering retail investors to explore innovative financial products.

Trends in the market: In Israel, the Equity Exchange Traded Funds (ETFs) market is experiencing a notable shift towards increased participation from retail investors, driven by a desire for diversified investment options and flexibility. Younger investors are particularly drawn to digital trading platforms that offer real-time transactions and user-friendly interfaces. Concurrently, there is a heightened focus on ESG criteria, leading to a surge in demand for sustainable investment products. This cultural shift towards financial literacy is empowering a broader audience to engage with innovative investment strategies, reshaping the landscape for industry stakeholders.

Local special circumstances: In Israel, the Equity Exchange Traded Funds (ETFs) market is shaped by a unique blend of cultural and regulatory factors. The country's strong emphasis on technological innovation fosters a vibrant fintech ecosystem, enabling the rapid development of digital trading platforms that appeal to tech-savvy investors. Additionally, the diverse population, influenced by global investment trends, prioritizes ESG criteria, driving demand for sustainable ETFs. Regulatory support for transparency and investor protection further enhances market confidence, attracting both local and international participants, and contributing to a dynamic investment landscape.

Underlying macroeconomic factors: The growth of the Equity Exchange Traded Funds (ETFs) market in Israel is significantly influenced by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. The country's robust GDP growth and stable inflation rates create a conducive environment for investment, attracting both local and foreign investors. Furthermore, global market volatility often drives interest in diversified investment vehicles like ETFs, which offer risk management benefits. Additionally, favorable fiscal policies and government incentives for financial innovation bolster the fintech sector, enhancing trading efficiency and accessibility. As a result, Israel's ETFs market is well-positioned to capitalize on these macroeconomic dynamics.

Data coverage:

The data encompasses B2C enterprises. Figures are based on financial values/ transaction values/ turnover ratios/ number of funds data within the investment funds market.

Modeling approach / Market size:

Market sizes are determined by both a bottom-up and top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data from European central banks, World Bank, national central bank statistics, and international organizations, such as OECD, and publicly available databases. In addition, we use relevant key market indicators and data from country-specific associations, namely gross domestic product (GDP), consumer price index(CPI), lending interest rate, central bank interest rate, employment rate, secured overnight financing rate (SOFR), and tax rates. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In the market, we use the HOLT-damped Trend and ARIMA methods to forecast future development. The main drivers are GDP per capita, consumer price index (CPI), and central bank interest rate.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.