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The Other Exchange Traded Funds Market within the Investment Funds Market in Israel is witnessing a notable decline, influenced by factors such as market volatility, regulatory changes, and shifting investor preferences towards more traditional investment options.

Customer preferences: Investors in Israel's Other Exchange Traded Funds Market are increasingly gravitating towards socially responsible and sustainable investment options, reflecting a broader cultural shift towards ethical considerations in finance. This trend is particularly pronounced among younger demographics, who prioritize investments that align with their values, such as environmental sustainability and social justice. Additionally, the rise of digital platforms and robo-advisors is making it easier for these investors to access tailored portfolios, further influencing their preferences towards innovative and responsible investment solutions.

Trends in the market: In Israel's Other Exchange Traded Funds Market, a notable trend is the increasing demand for socially responsible investment (SRI) options, driven largely by younger investors who prioritize ethical considerations in their financial decisions. This shift is evidenced by a growing number of ETFs focused on environmental, social, and governance (ESG) criteria. Furthermore, the emergence of digital investment platforms and robo-advisors is enhancing accessibility to customized SRI portfolios, allowing investors to align their financial goals with personal values. This trend not only reshapes investment strategies but also compels fund managers to innovate and adapt their offerings to meet the evolving expectations of socially conscious investors.

Local special circumstances: In Israel's Other Exchange Traded Funds Market, the unique blend of cultural values and regulatory frameworks shapes investment preferences. The country's strong emphasis on innovation, particularly in technology and sustainability, has fostered a vibrant ecosystem for ETFs focused on ESG criteria. Additionally, Israel's diverse population, including a significant number of socially conscious millennials and Gen Z investors, drives demand for SRI options. Regulatory support for green investments further enhances market dynamics, encouraging fund managers to develop innovative products that resonate with local ethical priorities.

Underlying macroeconomic factors: The Other Exchange Traded Funds Market in Israel is significantly shaped by macroeconomic factors, including global economic trends, national economic stability, and fiscal policies. The Israeli economy's resilience, characterized by robust technological innovation and a focus on sustainability, attracts both domestic and foreign investment in ETFs. Moreover, global shifts towards responsible investing and ESG criteria align with local values, enhancing market appeal. Fiscal policies that support green initiatives and infrastructure development further stimulate growth, while fluctuating interest rates and inflationary pressures influence investor sentiment and fund performance, creating a dynamic investment landscape.

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.