BlackRock’s iShares has claimed to have launched a “world first for investing in Israel”.

The firm announced it had launched an exchange traded fund for European investors to invest directly in the national Israeli index and said this was the first fund to offer direct exposure to the underlying constituents of this index.

Alex Pollak, head of Israel at BlackRock, said: “Investing with precision has never been more important. Israel’s equity market was one of the fastest developed economies to rebound after the financial crisis, and our fund is a cost-effective way to invest in this resilient market and one of the world’s leading technology centres.

“This is the first exchange traded product that allows investors to invest directly in Israel’s national index in a UCITs framework using their domestic sterling, dollar or euro currencies. This innovation will provide investors based outside of Israel with targeted portfolio exposure to the country.”

Yossi Beinart, TASE chief executive officer, said: "The launch of this ETF will provide an opportunity for global investors to invest in Israeli economy through the TA-25 index.

“This unique collaboration will increase TASE's exposure to international investors, who are seeking ways to invest in the Israeli market. We will continue to promote partnerships with leading international financial institutions, develop new products and be responsive to local and global market needs.”

The iShares TA-25 Israel UCITS ETF has a total expense ratio of 0.6%.