As global markets brace for the geopolitical upheaval stemming from the Israel-Hamas conflict, prominent investor Cathie Wood finds her ARK Israel Innovative Technology ETF IZRL thrust into the forefront of market dynamics.
While often overshadowed by its larger counterparts, such as the ARK Innovation ETF ARKK, the smallest ARK fund with only $99 million of asset under management is now under intense scrutiny as investors closely monitor its holdings in the midst of escalating Middle East tensions.
Volatility Surrounds Cathie Wood’s ARK Israel Innovative Technology ETF
As the trading week commenced, the ARK Israel Innovative Technology ETF faced an immediate test, dropping by 5%, underscoring the heightened sensitivity of the fund to geopolitical events in the region. If this negative performance persists throughout the close, it would represent the fund’s most challenging session since mid-June 2022.
Chart: ARK Israel Innovative Technology ETF Tumbled 5% At The Opening Bell In New York
The fund boasts a diversified portfolio of 76 companies, with a predominant presence in the technology sector, constituting 53% of its holdings. Notably, the software industry commands the lion’s share at 25%, closely followed by communication equipment at 11%.
ARK Investment Management introduced the ARK Israel Innovative Technology ETF in December 2017 to trace the price movements of publicly-listed Israeli companies renowned for pioneering disruptive technologies across sectors such as genomics, healthcare, biotechnology, industrials, manufacturing, the Internet, and information technology.
While the ARK Israel Innovative Technology ETF reports flat year-to-date performance, it has experienced a notable 14% decline from its zenith in May 2023. The fund’s performance since inception mirrors this negative trajectory, currently standing at a negative 14%. Its standout period occurred between March 2020 and February 2021 when it delivered a remarkable 175% performance gain.
10 Israeli Stocks To Watch Amid Geopolitical Turmoil
As the uncertainty in the Middle East unfolds, a handful of stocks within the ARK Israel Innovative Tech ETF have garnered attention due to their potential significance in navigating the fund through these turbulent times. Here are 10 noteworthy stocks that investors should closely monitor:
| Company | Ticker | Sector | Shares | Market Value ($) | Weight (%) | Performance YTD |
|---|---|---|---|---|---|---|
| CAMTEK LTD | CAMT | Information Technology | 50,392 | $3,191,325.36 | 3.43% | 185% |
| UROGEN PHARMA LTD | URGN | Healthcare | 215,272 | $2,949,226.40 | 3.17% | 55% |
| TABOOLA.COM LTD | TBLA | Information Technology | 672,718 | $2,737,962.26 | 2.94% | 32% |
| TEVA PHARMACEUTICAL-SP ADR | TEVA | Healthcare | 254,810 | $2,400,310.20 | 2.58% | 3% |
| CYBERARK SOFTWARE LTD | CYBR | Information Technology | 14,063 | $2,351,192.97 | 2.52% | 29% |
| ITURAN LOCATION AND CONTROL LTD. | ITRN | Information Technology | 79,608 | $2,329,330.08 | 2.50% | 41% |
| CHECK POINT SOFTWARE TECH LTD | CHKP | Information Technology | 16,962 | $2,324,133.24 | 2.49% | 9% |
| WIX.COM LTD | WIX | Information Technology | 25,543 | $2,307,043.76 | 2.48% | 18% |
| SAPIENS INTERNATIONAL CORP N.V. | SPNS | Information Technology | 78,880 | $2,270,166.40 | 2.44% | 59% |
| HILAN LTD | HLTEF | Industrials | 43,918 | $2,256,421.42 | 2.42% | 9.4% |
Now Read: How The Israel-Hamas Conflict Could Impact Oil Markets
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