Tel Aviv returns stall, Wall Street soars, and Israelis begin returning to the S&P 500

After redemptions of 33 billion shekels from the S&P 500 index over the past year, net accumulation has turned positive in the last two months, with 155 million shekels in August and 189 million shekels in September. Pension and provident fund bodies identify a halt in the shift of investments to Israel and renewed leakage to foreign indices, but still qualify: 'Too early to call it a comeback'.

After massive redemptions from the S&P 500 index reached 33 billion shekels over the past year, net accumulation has turned positive in the last two months. According to an analysis by Israel Atia, CEO of the Center for Financial Planning, the outflow of funds from S&P 500 tracks has significantly moderated, from a monthly rate of 3-5 billion shekels between October 2025 and July 2026, to a rate of 1.3 billion shekels in the last two months. Net accumulation turned positive in August with 155 million shekels, and the trend continued in September with 189 million shekels. Three major pension and provident fund bodies confirm the beginning of a shift in fund flows, but Yuval Baer Even from Migdal qualifies: 'It's too early to determine that we are heading for a comeback'. The sources attribute the change to political and security uncertainty ahead of the elections, and to the strengthening of the dollar against the shekel by 9% in recent months.