The index mirrors the performance of 25 shares from the TA-125 index selected based on high dividend yield and low volatility features.<\/p>\n
Specifically, a first filter is applied to the TA-125 preselecting the 50 companies with the highest 12-month trailing dividend yield. <\/p>\n
Among these, the 25 with the lowest trailing 12-month volatility are then chosen as final index components of the Solactive \u2013 B-BRE Tel Aviv 125 Low Volatility High Dividends Index.<\/p><\/blockquote>\n
Israel has a strong economy, rated A1 Stable by Moody\u2019s[[Moody\u2019s Israel Government of Credit Rating]] and is home to a large number of companies with strong presence in sectors such as financial services, technology, real estate, healthcare and industrials. The country shows a positive economic outlook with growth forecasted at 3.41% in 2017 and 3.26% in 2018 against the OECD average of 1.98% and 2.29%, for the two years respectively[[ OECD Data. Real GDP forecast]]. Israel
\nhas also been strongly investing in innovation as proven by the rate of R&D
\nexpenditure to GDP, which is one of the highest among OECD members[[ OECD Data. Gross domestic spending on R&D]]. As such, the Solactive \u2013 B-BRE Tel Aviv 125 Low Volatility High Dividends Index allows investors to gain specific exposure to the Israeli economy through a basket of low volatility and high dividend-yield shares.<\/p>\nSteffen Scheuble, CEO of Solactive, commented: \u201cWe are pleased to launch with BBRE an Israel-themed index that puts together two of the most demanded smart beta factors today, precisely low-volatility and high-dividend-yield. In this way, the Solactive \u2013 B-BRE Tel Aviv 125 Low Volatility High Dividends Index provides a strategic beta version of the broad-based TA-125 Index accessible to investors through the IBI Fund.\u201d<\/em><\/p>\n
Daniel Baraz, Ph.D., Managing Partner at Bregman-Baraz Real Estate, said: \u201cWe think that the fund is an interesting investment instrument as it offers exposure to a strong and growing economy, through stocks that pay a high dividend yield. The current dividend yield of the fund is 4.9%, compared to an estimated 1.76% for TA-125. This also looks attractive in a global perspective: the PowerShares S&P 500 high dividends low-volatility index fund has a dividend yield of 3.86%. The underlying index\u2019s
\nperformance is also impressive: in the last 12 months (as of 20\/5) the total return of the index has been 38.6% with a standard deviation of 10.95%. The S&P 500 highdividends low-volatility fund had a total return of 10% with a standard deviation of 10.23%. This renders the risk-adjusted return of the index very impressive.\u201d<\/em><\/p>\nShai Sasportas, Head of ETF sector at IBI INVESTMENT HOUSE, added: \u201cFollowing upon the success of our funds tracking the Solactive-B-BRE indices on the Israeli CRE market and the US REIT sector, we are pleased to extend the range of our smart-beta funds with a third index, with the launch of the first low-volatility high-dividends fund of large-cap Israeli stocks.\u201d<\/em><\/p>\n
The Solactive \u2013 B-BRE Tel Aviv 125 Low Volatility High Dividends Index is calculated as a gross total return index and is denominated in ILS. <\/p>\n
Components are weighted according to inverse volatility, subject to an industry weight cap of 35%. The weighting mechanism also outweighs index components that have a history of being high dividend payers.<\/p><\/blockquote>\n
As of May 14 2017, more than 60% of the index was composed of companies operating in industries such as real estate development, oil refining & marketing, regional banks and information technology services. The three shares with the largest index weight according to inverse volatility are Paz Oil Company,
\nMatrix IT and First International Bank of Israel.<\/p>\n","protected":false},"excerpt":{"rendered":"Solactive and B-BRE are excited to announce the launch of the Solactive \u2013 B-BRE Tel Aviv 125 Low Volatility High Dividends Index, used as the underlying index for a new IBI fund trading on the Tel Aviv stock exchange. <\/p>\n","protected":false},"author":20,"featured_media":63330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1471],"tags":[1718,1671,1716,1651,1437,2234,2103,1720,1952],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63332"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=63332"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63332\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/63330"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=63332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=63332"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=63332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}