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The TA 125 index is one of the main indices that track the performance of stocks traded on the Tel Aviv Stock Exchange (TASE) – Israel’s only stock exchange. It has been calculated since the 1st January 1992 and tracks the top 125 companies listed on the TASE by market capitalisation.
This page will give you an insight into the history of the TA 125 index, detail how the stocks that are included in the index are selected, and let you know how you can invest in its performance.
The TA 125 index is one of three indices that follow companies on the Tel Aviv Stock Exchange. The benchmark index of the TASE is the TA 35, and there is also a TA 90 index that is calculated. In each case, the number in the index’s title refers to the number of stocks that it tracks – with the TA 125 including all the companies listed on the TA 35 and TA 90 indices.
Founded in 1992, the TA 125 was the TA 100 until it expanded to include an additional 25 companies’ stocks in February 2017. The index is calculated in real-time, with its level being published by the Tel Aviv Stock Exchange every 30 seconds during trading hours.
The TA 125 started with a base level of 100 index points on January 1st 1992, and to date, the index’s all-time-high of 1,684.12 was achieved on the 12th February 2020. This peak was the culmination of steady growth after the index had dipped by around 300 points during 2016, but this growth was then checked as the TA 125 fell sharply to 1,113.17 (losing nearly a third of its value) by the 18th of March amid the economic chaos caused by the COVID-19 pandemic.
The TA 125 index combines all the stocks listed on both the TA 35 and TA 90 indices. This means that it follows the performance of the top 125 companies listed on the Tel Aviv Stock Exchange by market capitalisation. The index is then calculated using a free-float method (which was introduced in 2008), so that only tradable stocks impact the level of the index.
In order to invest in an index, you need to use a financial instrument designed to track its performance over time. The two most common ways of doing this are ETFs (exchange-traded funds) and mutual funds. With a TA 125 ETF you’ll have a diversified investment that follows the TA 125 Index, and you can also trade your investment at any time during trading hours on an exchange. A mutual fund gives you a similar form of diversification, but less flexibility as mutual funds can only be bought or sold at the end of the day’s trading.