Is it wise to invest in Israel at all, you might be thinking?
Israel is at the vanguard of global innovation, with a thriving startup environment despite its tiny size and frequent overlooking.
Although it only has a population of only 8.6 million people, Israel has “one of the highest numbers of startups per capita worldwide,” according to Statistica. Israel also developed many of the world’s most notable inventions.
The country created the first USB flash drive and made the first intel computer alongside IBM. It also developed the first PC-to-Phone software system based on Voice over Internet Protocol (VoIP).
So if you’re looking to invest in this thriving region, here are some wiser ways of doing so.
Israeli Government Bonds
The first and most obvious way you can invest wisely in Israel is to buy Israeli government bonds. These bonds are often acquired on behalf of others as a gift or to show support for the State of Israel.
Israel bonds are regarded as highly secure investments because the country has never defaulted on any of its bonds since its foundation. Furthermore, the country’s bonds have excellent ratings from all three major credit agencies.
If you want to know how you can get hold of Israeli bonds in a secure and trusted manner, please click here. You’ll also be able to read many frequently asked questions about such bonds.
Another popular approach of how to invest in Israel is through venture capital. Consider Israel’s startup ecosystem and some of the successful businesses that have arisen. And many people refer to Israel as the Silicon Valley of the Middle East!
However, some people are avoiding venture capital due to the COVID-induced economic slowdown. Even though Israel’s startup ecosystem is robust, venture capitalists, in general, are more cautious in 2021.
You also have to consider that Israel has unfortunate corporate tax rates, and there are risks geopolitically. So remember, before you opt for venture capital, if the business goes bust, you lose it all. Maybe a better option than this these days is to invest in Israeli real estate!
Public Equity Markets
The third key investment vehicle we are looking at is the Public Equity Markets, or invest in Israel stocks.
Many individuals believe that investing in Israel’s public equity markets means first creating an Israeli brokerage account. Then the idea is you would transfer funds to the nation. However, investing in a single or portfolio of specific Israel stocks does not require such difficulties.
You can instead:
- Utilize American depository receipts
- Invest in Exchange-Traded Funds (ETFs)
Each of these pathways leading to investment in Israel takes much less effort than going through the hassle of creating a brokerage account. And an excellent example of an ETF that you can invest in is the BlueStar Israel Technology ETF.
Invest in Israel the Right Way
After running through these solid investment options, we think that the current best way to invest in Israel is with Israeli Government bonds. They seem the safest option, at least. However, we also think Israeli ETFs are very interesting.
So thanks for stopping by, and good luck with your future investments. For further helpful posts, please consider browsing through our blog.