The Best Performing Israel ETFs in 2025
- Israeli equities have delivered standout performance in 2025.
- One Israel ETF stands above the rest.
Despite ongoing tensions and military strikes between Israel and Iran, Israeli equities have delivered standout performance in 2025, defying expectations amid a volatile geopolitical backdrop.
Leading the pack is the iShares MSCI Israel ETF (EIS), which is up 14.1% year to date, making it the top-performing Middle East-focused ETF this year.
EIS In the Lead
The $270 million fund tracks the MSCI Israel Capped Investable Market Index and has benefited from strong gains in technology and financials—sectors which make up 33% and 30% of the ETF, respectively.
Cybersecurity companies in particular have powered the fund’s rally. Check Point Software Technologies Ltd. (CHKP) and CyberArk Software Ltd. (CYBR), both key holdings in EIS, have surged in 2025 amid rising global demand for digital security and resilient tech spending.
A spike in shares of Elbit Systems Ltd. (ESLT), an Israeli defense company, has also boosted returns for the ETF.
IZRL, ISRA Keep Up
Along with EIS, two other Israeli ETFs are up similar amounts this year. The ARK Israel Innovative Technology ETF (IZRL) is up around 12%. It’s designed to be a kind of Israeli counterpart to the popular ARK Innovation ETF (ARKK), as it tracks the ARK Israeli Innovation Index, which includes companies operating in genomics, industrials, biotech and IT.
But, longer term, IZRL has underwhelmed, gaining just 2% over the past five years compared to a 73% gain for EIS. Its equal-weighted structure may have limited exposure to big winners, dragging on returns.
The VanEck Israel ETF (ISRA) has also climbed about 12% year to date and has fared better over time, rising 51% over the past five years. ISRA tracks the BlueStar Israel Global Index, which includes Israeli companies listed both domestically and abroad. About 12% of the portfolio comes from Israeli firms listed outside of the country.
While the Israel-Iran conflict has increased uncertainty in the region, Israel’s stock market—and especially its technology sector—has remained surprisingly resilient.
Investors looking to gain exposure to the country’s dynamic economy have multiple ETF options, but EIS has clearly been the strongest performer both this year and over the long term.
