At a glance
ISRA charges 0.59% a year, below the 0.61% average of the 3 funds most like it (the 2nd cheapest of 4). It has $153.2M in assets, the 2nd largest of that group; it paid 1.27% of its price in distributions over the past 12 months, annual. Over the past year it returned +25.5% with distributions reinvested (S&P 500: +11.5%), the best of those 4 funds; over three years it returned +37.2% a year. At its worst it fell 38.1% in the 2020 crash (S&P 500: 33.7%) and 27.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 7 months and 28 months after the lows. Its ten largest positions make up 47.1% of the fund, out of 79 in all.
The short version
VanEck Israel ETF (ISRA) is an index fund that tracks the BlueStar Israel Global Index, a basket of about 80 Israeli companies of all sizes. Its expense ratio of 0.59% is the same as the much larger iShares MSCI Israel ETF (EIS). The index uses a broad test of what counts as "Israeli," so US-domiciled Palo Alto Networks was its largest holding, at about 12.8% of assets as of June 30, 2026.
Price history
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ISRA +25.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| ISRA official prospectus, to Dec 31, 2025 | — | +37.28% | — | +7.04% | +8.73% | — |
| MSCI ACWI Index (reflects no deduction for fees, expenses or taxes, except withholding taxes) index, same period | — | +22.34% | — | +11.19% | +11.72% | — |
| ISRA price data to Oct 27, 2026 | +16.5% | +25.5% | +37.2% | +8.2% | +11.0% | +9.0% |
- Over the year to Oct 27, 2026, ISRA returned +25.5%, 1st of 4 among similar funds.
- Its 5-year annualized return was +8.2% and its 10-year +11.0%.
- In the 2020 COVID crash it fell 38.1% and regained its old high 6.7 months after the low.
- Its worst full calendar year was 2022 (-25.8%); its best was 2025 (+37.0%).
- The deepest fall in its price history was 45% (Nov 12, 2021 to Oct 27, 2023), recovered by Jun 23, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +16.5% | — |
| 2025 | +37.0% | +37.28% |
| 2024 | +26.0% | +25.44% |
| 2023 | -0.1% | -0.22% |
| 2022 | -25.8% | -25.79% |
| 2021 | +10.1% | +10.20% |
| 2020 | +28.2% | +28.14% |
| 2019 | +26.8% | +26.64% |
| 2018 | -7.0% | -6.94% |
| 2017 | +15.1% | +14.96% |
| 2016 | -5.8% | -5.31% |
| 2015 | -1.4% | — |
| 2014 | +0.5% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36.5% over that stretch · deepest drop along the way 38.1%, back to its old high 6.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.9% over that stretch · deepest drop along the way 27.9%, back to its old high 28.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.8700 | +64.2% |
| 2024 | $0.5300 | -19.7% |
| 2023 | $0.6600 | +37.5% |
| 2022 | $0.4800 | -22.6% |
| 2021 | $0.6200 | +675.0% |
| 2020 | $0.0800 | -83.7% |
| 2019 | $0.4900 | +133.3% |
| 2018 | $0.2100 | -56.3% |
| 2017 | $0.4800 | +71.4% |
| 2016 | $0.2800 | -26.3% |
| 2015 | $0.3800 | -48.6% |
| 2014 | $0.7400 |
What's inside
As of Jun 30, 2026, the fund held 79 securities; the ten largest made up 47.15% of assets, and 3% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| Palo Alto Networks Inc | 12.76% | |
| Teva Pharmaceutical Industries Ltd | 6.90% | |
| Bank Leumi Le-Israel BM | 5.32% | |
| Bank Hapoalim BM | 4.84% | |
| Tower Semiconductor Ltd | 4.43% | |
| Elbit Systems Ltd | 4.15% | |
| Nova Ltd | 2.28% | |
| JFrog Ltd | 2.26% | |
| Phoenix Financial Ltd | 2.19% | |
| Mizrahi Tefahot Bank Ltd | 2.02% | |
| Israel Discount Bank Ltd | 2.02% | |
| Check Point Software Technologies Ltd | 1.95% | |
| Enlight Renewable Energy Ltd | 1.59% | |
| Harel Insurance Investments & Financial Services Ltd | 1.42% | |
| Azrieli Group Ltd | 1.35% |
By country
Israel 75.96%United States 20.9%Guernsey 1.01%British Virgin Islands 0.8%United Kingdom 0.48%By asset type
Stocks 100.07%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $6.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +10.04%, +5.74%, -8.06%.
How it works
ISRA is passively managed. It tries to match the BlueStar Israel Global Index, not beat it, and it does not move into cash or other defensive positions when markets fall. It normally keeps at least 80% of its assets in the index's securities and generally holds the same stocks as the index. It may also use depositary receipts. These are certificates traded on US or foreign exchanges that stand for shares of a foreign company.
The index provider, MV Index Solutions (MVIS), decides which companies count as Israeli. It looks past where a company is incorporated to things like where it was founded, where management sits, where research happens, and where its revenue and employees are. As a result, about 20.9% of assets sat in US-domiciled companies as of June 30, 2026. The index holds the largest and most-traded companies, plus mid-size and smaller ones that trade enough for global investors. As of December 31, 2025, it held 80 securities, with company values from about $0.65 billion to $35.79 billion.
The fund is "non-diversified," so it can put more of its money in a single company. It may also concentrate in the same industries the index does. As of December 31, 2025, technology, financials and health care each made up a large share. Portfolio turnover was a low 8%.
What it really costs
- ISRA charges 0.59% a year, versus an average of 0.61% for the similar funds below (2nd of 4, cheapest first).
- Of that, 0.5% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.05% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $60 in the first year and $794 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| ISRA | $60 | $200 | $352 | $794 |
In a retirement portfolio
ISRA is a single-country fund with about 76% of assets in Israel and volatility near 20%, so it fits as a small add-on rather than a foundation.
ISRA could add a dedicated slice of Israel's tech, bank and defense companies, a market that broad global funds hold in only small amounts. The ride has been rough. In the 2020 COVID crash it fell 38.1% in about a month, then recovered by October 2020. In the 2022 bear market it dropped 27.9% and didn't regain its old high until February 2025. Its worst calendar year was 2022, at -25.8%. Its deepest drop was 45%, from November 2021 to October 2023, and it took 19.9 months to recover from the bottom. Anyone forced to sell during those stretches would have locked in losses. The fund launched in 2013, so it has no record from 2008. Income is modest: the yield was 1.27% as of October 27, 2026, paid once a year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small, dedicated slice of Israeli companies such as Teva, Bank Leumi, Bank Hapoalim, Tower Semiconductor and Elbit Systems.
- Cost-conscious investors comparing Israel funds: its 0.59% expense ratio matches EIS, is below ITEQ's 0.75%, and is under the 0.61% peer average.
- Long-term holders who could sit through drops like its 45% fall from November 2021 to October 2023 without needing to sell.
Look elsewhere if
- Investors who need steady income: the yield was 1.27% as of October 27, 2026, and it pays only once a year.
- Anyone wanting broad diversification: about 76% of assets are in Israel, and the top 10 holdings were about 47% as of June 30, 2026.
- Investors looking for a core holding: through December 31, 2025, its 10-year average annual return of 8.73% trailed the MSCI ACWI Index's 11.72%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What's the difference between ISRA and EIS?
Both are Israel stock ETFs with a 0.59% expense ratio, and about 66% of their holdings overlap. ISRA tracks the BlueStar Israel Global Index, which can include companies based outside Israel, such as Palo Alto Networks. iShares MSCI Israel ETF (EIS) is far larger, with about $897 million in net assets as of August 31, 2026, versus ISRA's $153 million as of June 30, 2026. As of October 27, 2026, ISRA returned 25.5% over one year versus 24.5% for EIS, but over three years ISRA's annualized return was 37.2% versus 42.6% for EIS.
Does ISRA pay dividends?
Yes, but only once a year, and the amount is modest. Over the 12 months to October 27, 2026, ISRA paid about $0.87 per share, for a trailing yield of 1.27%. That makes it a growth-focused holding rather than an income fund. Retirees who rely on regular cash payouts would get little income from it, and only in one payment a year.
Why is Palo Alto Networks in an Israel ETF?
The index provider, MV Index Solutions, uses a broad definition of an Israeli company. Besides where a company is incorporated, it weighs where the company was founded, where management and research teams are, and where its revenue and employees are. So a US-domiciled company can qualify. Palo Alto Networks was ISRA's largest holding, at about 12.8% of assets as of June 30, 2026. US-domiciled companies made up about 20.9% of the fund.
Is ISRA a good long-term investment?
It depends on how much volatility you can live with. The fund's long-term record has been mixed. As of December 31, 2025, ISRA's average annual returns were 37.28% over one year, 7.04% over five years and 8.73% over ten years. Over the same periods the MSCI ACWI Index returned 22.34%, 11.19% and 11.72%. Returns also swing a lot: ISRA lost 25.79% in 2022 and gained 37.28% in 2025.
How much does ISRA cost?
ISRA's expense ratio is 0.59% a year, per its April 29, 2026 prospectus. In the SEC's standard example, someone who invests $10,000, earns 5% a year and sells at the end of each period would pay about $60 after one year, $200 after three, $352 after five and $794 after ten. That is slightly below the 0.61% average of similar Israel funds. EIS also charges 0.59%, and IZRL charges 0.49%.