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How to Find World-Changing Tech Stocks Outside of Silicon Valley
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(0:45) - What's Trending In the Israeli Tech Market?
(2:10) - How Did Israel Become Such a Tech Powerhouse?
(4:05) - Israel: The Start-up Nation (Investing Ideas)
(8:10) - What's The Future of the Israeli Tech Market: Risk Assessment?
(12:40) - Blue Star Indexes: Israeli Technology ETF (ITEQ - Free Report)
(17:35) - How can the Israeli Tech ETF (ITEQ - Free Report) Fit Into Your Portfolio?
(20:00) - Episode Recap
Silicon Valley has long been regarded as a leader in the world of technology, but should investors be looking elsewhere for the leaders of tomorrow? One increasingly important spot for high-tech companies is Israel, a nation that actually has more Nasdaq-listed companies than any other country, besides the United States. This is despite the fact that Israel has under 10 million people and isn’t exactly in the world’s best neighborhood either. So, how has Israel been able to thrive despite overwhelming odds and become a tech powerhouse in the process?
To get to the bottom of this question, I spoke with Steven Schoenfeld, the founder and CIO at BlueStar Indexes for the latest edition of the Dutram Report. Steven is an expert in the Israeli market, and his company provides the index for the Israel Technology ETF (ITEQ - Free Report) so he has a great deal of knowledge about the Israeli tech world and what makes the country so different.
What Makes Israel So Special?
In the interview, we discuss a couple key points about what sets Israel apart from its peers, including how the Israeli defense industry and compulsory military service might be helping to promote an entrepreneurial culture with a focus on key industries to today’s modern tech world (such as cyber security or software), and the advent of the venture capital market in Israel too.
We also dive into a popular theory regarding how Israel’s history may have helped the country become such a prominent player in the tech world, even with its relatively small size. Basically, Steven explains that Israel is more-or-less a ‘start-up’ itself, and this sort-of mentality has been ingrained in its citizens too.
Israeli Technology Companies
And while many investors might not be able to name any Israeli companies off of the top of their heads, there are actually several prominent ones that are pretty involved in a number of key global markets. This includes Amdocs (DOX), Checkpoint Software (CHKP), and Mobileye (MBLY) just to name a few. We also talk about what kind of industries are growing quickly in the Israeli market, and how the nation might stay at the forefront of the tech space thanks to its strengths in industries such as cyber security and autonomous vehicles.
But what sets this fund apart from its peers, both in Israel and the broader tech world? We discuss what the key differences are between this ETF and the broad Israel ETFs such as EIS or ISRA, but also the tech world too. In particular, Steven goes over how ITEQ’s holdings are rarely found in big tech ETFs such as XLK or VGT, and why these Israeli companies are often excluded from traditional U.S. indexes.
Bottom Line
Israeli technology is crucial to many of the key areas of our high-tech world today, while it is also well-positioned to lead us in the hot markets of tomorrow too. And with limited representation in traditional benchmarks, ITEQ and Israeli technology stocks in general could be worth a closer look from investors.
So, make sure to listen to this edition of the Dutram Report for a closer look at this ‘Start-Up Nation’ and how Israeli technology stocks may fit into a portfolio. And if you have any thoughts or comments, reach us on SoundCloud or at podcast @ zacks.com for email. We’d love to know what you think of the chat with Steven, and if you have any other topics you’d like us to cover in the future too.
Image: Bigstock
How to Find World-Changing Tech Stocks Outside of Silicon Valley
Silicon Valley has long been regarded as a leader in the world of technology, but should investors be looking elsewhere for the leaders of tomorrow? One increasingly important spot for high-tech companies is Israel, a nation that actually has more Nasdaq-listed companies than any other country, besides the United States. This is despite the fact that Israel has under 10 million people and isn’t exactly in the world’s best neighborhood either. So, how has Israel been able to thrive despite overwhelming odds and become a tech powerhouse in the process?
To get to the bottom of this question, I spoke with Steven Schoenfeld, the founder and CIO at BlueStar Indexes for the latest edition of the Dutram Report. Steven is an expert in the Israeli market, and his company provides the index for the Israel Technology ETF (ITEQ - Free Report) so he has a great deal of knowledge about the Israeli tech world and what makes the country so different.
What Makes Israel So Special?
In the interview, we discuss a couple key points about what sets Israel apart from its peers, including how the Israeli defense industry and compulsory military service might be helping to promote an entrepreneurial culture with a focus on key industries to today’s modern tech world (such as cyber security or software), and the advent of the venture capital market in Israel too.
We also dive into a popular theory regarding how Israel’s history may have helped the country become such a prominent player in the tech world, even with its relatively small size. Basically, Steven explains that Israel is more-or-less a ‘start-up’ itself, and this sort-of mentality has been ingrained in its citizens too.
Israeli Technology Companies
And while many investors might not be able to name any Israeli companies off of the top of their heads, there are actually several prominent ones that are pretty involved in a number of key global markets. This includes Amdocs (DOX), Checkpoint Software (CHKP), and Mobileye (MBLY) just to name a few. We also talk about what kind of industries are growing quickly in the Israeli market, and how the nation might stay at the forefront of the tech space thanks to its strengths in industries such as cyber security and autonomous vehicles.
But what sets this fund apart from its peers, both in Israel and the broader tech world? We discuss what the key differences are between this ETF and the broad Israel ETFs such as EIS or ISRA, but also the tech world too. In particular, Steven goes over how ITEQ’s holdings are rarely found in big tech ETFs such as XLK or VGT, and why these Israeli companies are often excluded from traditional U.S. indexes.
Bottom Line
Israeli technology is crucial to many of the key areas of our high-tech world today, while it is also well-positioned to lead us in the hot markets of tomorrow too. And with limited representation in traditional benchmarks, ITEQ and Israeli technology stocks in general could be worth a closer look from investors.
So, make sure to listen to this edition of the Dutram Report for a closer look at this ‘Start-Up Nation’ and how Israeli technology stocks may fit into a portfolio. And if you have any thoughts or comments, reach us on SoundCloud or at podcast @ zacks.com for email. We’d love to know what you think of the chat with Steven, and if you have any other topics you’d like us to cover in the future too.
But for more news and discussion regarding the world of ETFs, make sure to be on the lookout for the next edition of the Dutram Report, and check out the many other great Zacks podcasts as well!
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