#Israel #Tel Aviv #Tel Aviv Stock Exchange #TASE indices #equity indices update

TASE's Landmark Milestone: The Largest Equity Indices Update Ever

On November 6, 2025, during its closing auction, the Tel Aviv Stock Exchange (TASE) executed what has been referred to as its largest-ever update of equity indices. This monumental event signifies not only a regular adjustment exercise but a historic shift in the growth landscape of managed assets linked to TASE indices. In recent times, the surge in funds that track these indices reached a phenomenal peak, evidenced by assets totaling NIS 82 billion, showcasing TASE's growing influence and the confidence of investors in the Israeli economy.

The update comes in response to an overwhelming increase in passive investments in TASE indices. Notably, throughout the initial ten months of 2025 alone, passive assets amassed an impressive NIS 12 billion in new investments while witnessing an appreciation of NIS 20 billion across the indices. This phenomenon significantly influenced the ongoing update, marking a pivotal moment in the trading history of TASE.

In a bid to continuously innovate and cater to investor needs, TASE has rolled out several new equity indices recently, including the TA-Defense, TA-Infrastructure, Banks and Insurance Equal Weight indices, and the TA-Real Estate 35 Index. In total, TASE has successfully launched eleven new indices so far in 2025, with plans underway for additional releases in the foreseeable future.

Yaniv Pagot, the Executive Vice President and Head of Trading at TASE, emphasized the unit’s intensive review of the entry requirements for leading equity indices. This review revolved around the minimum market cap needed for inclusion in these indices. Pagot highlights that the recent assessments signify a profound leap in the valuation of constituent companies, enhancing liquidity and promoting competitiveness among them. This shift aims to provide companies with the advantage of attracting substantial passive investment flows.

New Entry Thresholds

The November 2025 rebalance saw significant changes in the entry thresholds for several indices:

• - TA-35 Index: The new entry criteria stand at NIS 10.7 billion, an astounding increase from NIS 4.8 billion just five years prior.
• - TA-90 Index: The updated threshold has escalated to NIS 2.5 billion, marking a tripling in the past five years.
• - TA-SME60 Index: For this index, the new entry point reached NIS 1.3 billion, illustrating a quadrupling spike compared to five years ago.

In terms of asset management by index, as of early November 2025, TASE has reported significant figures:

• - NIS 38 billion is managed against the TA-125 Index.
• - NIS 19 billion for the TA-90 Index.
• - NIS 11 billion for the TA-35 Index.
• - NIS 690 million for the TA-SME60 Index, nurturing NIS 77 million raised this year alone.

Looking at the median market capitalization of the index constituents proves instrumental:

• - TA-35 Index: Median market cap stands at NIS 19 billion, with 90% of companies exceeding the entry threshold.
• - TA-90 Index: exhibits a median of NIS 4.1 billion, also above the new entry point.
• - TA-SME60 Index: has a median of NIS 1.4 billion, signifying a healthy growth trajectory.

Reflecting on this landmark update, Yaniv Pagot stated, "This historic moment for the Tel Aviv Stock Exchange signifies the remarkable quality and valuation growth of our listed companies. The substantial advancement in our local capital market since the start of 2025 showcases the rising confidence of both retail and institutional investors in our economy and capital landscape." The upcoming months will undoubtedly witness how this historical event shapes the future of TASE and the broader financial ecosystem in Israel.