The TA-35 Index
Tel Aviv's leading index — what it measures, how it is constructed, and what that means for an investor.
What the index measures
TA-35 tracks the 35 largest companies by market capitalisation listed in Tel Aviv. It is the index people mean when they say the Israeli market rose or fell, and it underlies a large share of the index products traded locally.
It is capitalisation-weighted, so a larger company moves it more, subject to a cap on any single constituent. That cap matters more in a market the size of Israel than it would in a larger one, because without it a single company could dominate the whole index.
Why a 35-name index behaves differently from a broad one
The fewer constituents an index holds, the more each one matters. TA-35 is particularly sensitive to the largest companies in the economy — banking, insurance and real estate make up a substantial share, so one industry event moves the entire index.
That is a practical point rather than an academic one. Holding a TA-35 tracker means holding concentrated exposure to the Israeli economy, and to its financial sector especially, even though it is described as a broad index.
Rebalancing
Constituents are reviewed periodically under exchange rules: companies that have grown enough come in, others drop out. For a tracking product this is an operational event — the fund must buy the entrants and sell the leavers around the review date.
The effect is well known and priced by the market, which is why candidate securities sometimes move before the change formally takes place.
What the index does not tell you
An index measures direction, not value. TA-35 up 20% over a year does not say its constituents are cheap or expensive — it says they trade higher than they did a year ago.
And like any domestic index it represents one economy. Holding only it means exposure to a single market, a single currency and one regulatory environment, even while holding 35 different companies.
Frequently asked questions
What is the TA-35 index?
Tel Aviv's leading equity index, tracking the 35 largest listed companies by market capitalisation, weighted by capitalisation with a cap on any single constituent.
How does TA-35 differ from TA-125?
TA-35 holds the 35 largest companies; TA-125 holds 125, including mid-sized ones. The broader index is more diversified and less driven by any single company, though it represents the same market.
How do you invest in the TA-35?
Through exchange-traded index products or tracking funds offered in Israel. VAQO does not recommend specific products and is not an investment adviser.
Israeli companies we do cover
Tel Aviv market data is not available here. Israeli companies listed on Nasdaq and the NYSE — Teva, Elbit, Check Point, CyberArk, NICE, monday.com and others — do carry live prices and full analysis.
Israeli stocks on Wall Street →
More on the Israeli market
- Israeli ETFs and Index Funds
- Capital Gains Tax on Investments in Israel
- How to Start Investing in Israel
- The Shekel, the Dollar and Your Returns
This is neither investment advice nor tax advice.
Last updated: 2026-09-27