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Jonathan Simmons
Hope over hate. Supporting Israeli Innovation.

How to Invest in Israel for Less Than $1000

Credit: Towfiqu Barbhuiya -
Counting the pennies to Invest in Israel

Have you ever wondered how to tap into the vibrant Israeli economy, known for its cutting-edge technology and pioneering spirit? The good news is, you’re not the first Israel supporter to be asking this, and also even with a budget under $1,000, you can access this dynamic market and potentially reap exciting rewards. Welcome to article three in the Investing In Israel series, where we aim to empower Israel enthusiasts to make their own informed decisions when it comes to investing in Israel. While the mainstream media, and questionable political leaders turn against Israel’s self-defensive strategy following on from the unpreceded attack by Hamas in October, surely now is the time for us to get behind the often demonised nation in more than just politically lobbying and truth advocacy.

Credit Austin Distel

Embrace the Innovation Powerhouse:

Israel has become a global leader in innovation, fostering a thriving ecosystem of startups and established companies across sectors like technology, pharmaceuticals, and agriculture. This ingenuity stems from a unique combination of factors, including a highly educated workforce, a culture of collaboration, and an unwavering drive to overcome challenges. The level of tenacity of the Israelis is noted by world-renowned business leaders.

Charting Your Investment Journey:

Before diving in, it’s essential to understand your investment goals. Are you seeking short-term gains or long-term growth? Do you favor high-risk, high-reward possibilities, or are you drawn to safer, steady options? Once you have clarity on your objectives, you can tailor your investment strategy accordingly.

Opening the Door to Opportunities:

To participate in the Israeli market, you’ll need an international brokerage account. Several established firms offer this service, providing access to Israeli stocks alongside international markets. Remember to prioritize platforms with low fees, reliable customer support, and user-friendly interfaces.

Credit Jason Brisco

Exploring Various Investment Avenues:

Here are some exciting ways to invest in Israel, even with a limited budget:

  • Invest in Israeli-Founded Companies Listed on Global Markets: Many Israeli companies choose to list their shares on prominent stock exchanges like the London Stock Exchange, NASDAQ, and the New York Stock Exchange. Resources like the Israel Stock List ebook can help you identify such companies available to purchase.
  • Embrace the Power of ETFs: Exchange-traded funds (ETFs) offer a cost-effective way to gain exposure to a basket of Israeli companies, spreading your investment risk across diverse sectors. Consider options like the iShares MSCI Israel ETF (EIS) or the BlueStar Israel Technology ETF (ITEQ).
  • ETF’s on the Tel Aviv Stock Exchange. TA35, Israel’s leading stock market index, which tracks the performance of the 35 largest, most actively traded companies on the Tel Aviv Stock Exchange. This considered a key indicator of the overall health of the Israeli economy. There is also the TA125, broader Israeli stock market index. Includes the top 125 companies by market capitalization listed on the Tel Aviv Stock Exchange. Offers a more comprehensive picture of the Israeli stock market than the TA35. You can buy into the ETF’s on platforms such as Hargreaves Lansdowne and Interactive Brokers.
  • Unlock Startup Potential: But don’t take it from me. Juan Delgado-Moreira, co-CEO of Hamilton Lane, a $900 billion asset management company, said in a recent interview: “NOW IS THE BEST TIME TO INVEST IN ISRAEL. THE ONLY REAL ESSENTIAL MARKET FOR VENTURE CAPITAL, APART FROM THE USA, IS IN ISRAEL, AND THOSE WHO DO NOT INVEST IN IT SHOULD BE ASHAMED”                                                                                                                                                                           According to the 2023 annual report by Startup Nation Central, there are 7272 tech companies in Israel and 353 active investors. 2023 was a tough year for Israeli startups, but despite the challenges, the Israeli tech ecosystem remained robust. Platforms like OurCrowd enable you to participate in the exciting world of Israeli startups, investing in innovative early-stage companies with the potential for high growth. Two other Israeli companies that specialise in equity crowd investing for private investors are iAngels and Exit Valley.
  • Israeli Government Bonds, that is, the bond includes a commitment from the Israeli government to pay the loan back, plus an agreed rate of interest while using your money – known as the bond coupon or yield. Your loan amount (bond price) is returned to you when the bond matures after a fixed period. Anyone in the world can buy bonds. You do not need to be a citizen or resident of Israel to buy an Israeli government bond. Warren Buffett himself is an owner of Israeli Government Bonds
Invest in Israel from anywhere in the world; Credit Joshua Mayo

Essential Reminders:

  • Stay Informed and Diversify: Regularly update yourself on economic news and trends impacting the Israeli market. Remember, diversification is key to minimizing risk. Spread your investments across different sectors and avoid putting all your eggs in one basket. Websites such as isranomics.com and Times Of Israel are great resources on Israeli economy and business news.
  • Navigate Currency Fluctuations: Be mindful of how exchange rate fluctuations can affect your investment returns.
  • Start Small & Grow Gradually: As a beginner, it’s wise to start with a modest investment and gradually increase your involvement as you gain knowledge and confidence.
  • Seek Professional Guidance: When navigating the investment landscape, consider seeking advice from a qualified financial advisor to align your investments with your personal financial goals and risk tolerance.

Conclusion:

Investing in Israel, even with a limited budget, offers an exhilarating opportunity to participate in a dynamic and innovative economy. By understanding the market, choosing the right investment vehicles, and staying informed, you can embark on a rewarding investment journey with the potential for exciting returns. Remember, thorough research and seeking professional guidance are crucial steps for any investor.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

The Israel Stock Tracker Updated  allows you to not only discover but also track the stock price of all of the Israeli-founded companies listed on the New York Stock Exchange, NASDAQ, and London Stock Exchange. The spreadsheet tracker brings simplicity to buying Israeli stocks, and is available for only $59.99.

The Israel Stock List Ebook updated is now available at an introductory price of only $9. This simple eBook provides a comprehensive list of all the Israeli-founded companies that can be purchased on the international markets.

Purchase stocks in Israeli Founded Companies at Israeli-founded brokerage, Etoro, and join the millions of stock investors worldwide. Investors can buy stocks for as little as $100 deposit. Founded by serial Israeli brothers Yoni Assia and Ronen Assia

TipRanks is a comprehensive research platform, founded by Israeli entrepreneurs, Uri Gruenbaum and Gilad Gat in 2012, that helps investors make better, data-driven investment decisions. So can sign up to a free trial here This platform does much of the analysis work for investors.

Want to be kept up to date on future articles on how to support Israeli Businesses? Subscribe to the Open Invest Newsletter for free today

Also connect with other like-minded Israel enthusiasts in the Open Middle East LinkedIn Community

Other investment options include Israeli Real Estate,  and the Israeli Real Estate Lawyers

Sources;

How to Buy Israeli Stocks – Jonathan Simmons

Why Israeli Companies Need Our Support – Jonathan Simmons

Seizing the Moment, Why Experts Believe Now is the Golden Opportunity for Investing in Israel – Eze Vidra

Top Israeli Companies Listed on the London Stock Exchange – Jon Simmons – Coming March ’24

Top Israeli Companies Listed on the Nasdaq – Jon Simmons – Publishing March ’24

Top Israeli Companies Listed on the New York Exchange  – Jon Simmons – Publishing April ’24

About the Author
Jon is active in supporting bilateral investment between Israel, the West Bank, and all supporters of Israel from the UK, US, EU and India. As director of israelinvestment.org, and author of Partnering for Palestinian Prosperity, he believes that active investment and support for Israeli and Palestinian tech innovation is one of the best ways bring about prosperity and reconciliation in the Middle East, pursuing ethical profit for all investors. In the spring Jon supported the opening of the International Prayer Room in Bethlehem. The aim is to encourage Westerners visiting Israel to spend time in the West Bank, and find creative space for sanctuary. During the spring tour, Jon met with Palestinian businessmen and women in the West Bank, to try to understand what they need from Western consumers and businesses to help them and other Palestinians build a financially independent and prosperous future. This inspired Jon to write the series of articles called Partnering for Palestinian Prosperity. The aim of the series is to demonstrate that under very challenging circumstances, Palestinians have persevered to build businesses and viable ventures that are worthy of active encouragement and investment from the West. In 2018, Jon co-lead a group of international and local musicians as part of Music on The Wind tour, performing live to communities on ‘both sides’ of Israel and Palestine. The aim was to invest in the people through the healing and restoration power of live music, regardless of their background. Jon wants to ultimately simplify investing in Israel for Non Israeli, primarily in Real Estate, Israel Stocks, and helping Non Israelis get working Visa's.