Most Orthodox investors I talk to want to put at least part of their portfolio into Israeli equities. The reasoning is part financial (Israel has had decent returns), part emotional (supporting the Jewish homeland), and part halakhic (Israeli companies operate under Chief Rabbinate oversight for many things that US companies don't have). The Tel Aviv 35 Index is the natural starting point. Let me walk through what's actually in it and how it screens halakhically.

What Is the TA-35?

The Tel Aviv 35 Index is the TASE flagship index. It's roughly the Israeli equivalent of the Dow Jones Industrial Average: 35 names, market-cap weighted, rebalanced twice a year. The constituents change but the total is always 35 companies representing the largest and most liquid names on TASE.

As of early 2026, the TA-35 makes up roughly 75% of the total Israeli equity market capitalization. The index is reasonably diversified across banks, real estate, pharma, technology, consumer staples, energy, and telecom.

You can get exposure through:
- iShares MSCI Israel ETF (EIS): tracks a broader Israeli index, not TA-35 specifically, but has significant overlap
- Individual Israeli ADRs listed in the US (Teva, Check Point, Elbit Systems, etc.)
- Direct purchase on TASE through Israeli brokerages

The Shabbat Story

Here's something important. TASE is closed on Friday and Saturday. It trades Sunday through Thursday. This is different from every major US, European, or Asian exchange. The practical consequence: Orthodox investors who want to avoid Shabbat-related trading concerns naturally have it easier in Israel.

The Chief Rabbinate has standing rulings on many TA-35 companies covering heter iska, Shabbat operations, and other halakhic matters. Not every company gets formal certification, but many do, and the structural environment is more halakhically-aware than US markets.

Walking Through the Top Holdings

Let me go through roughly the top 15 constituents of TA-35 as of 2026, with notes on how each screens halakhically.

Bank Leumi (LUMI.TA): One of the two largest banks in Israel. Operates under standing heter iska with the Chief Rabbinate. For Orthodox investors, this is one of the cleanest bank stock holdings available because the heter iska explicitly covers the underlying lending activity. Dividend yield typically 3-5%. Halakhic screen: passes.

Bank Hapoalim (POLI.TA): The other major Israeli bank. Same heter iska structure as Leumi. Roughly similar size and business profile. Halakhic screen: passes.

Mizrahi Tefahot (MZTF.TA): Third-largest Israeli bank, traditionally stronger with the religious community. Mortgage-focused. Heter iska applies. Halakhic screen: passes.

Israel Discount Bank (DSCT.TA): Fourth-largest Israeli bank. Heter iska applies. Halakhic screen: passes.

Teva Pharmaceutical (TEVA, also trades on TASE): Generic drug manufacturer, global scale. Teva doesn't produce pork-derived or non-kosher products in any meaningful quantity. Pharmaceutical products are generally permitted halakhically even when they contain non-kosher ingredients, based on rulings in the Shulchan Arukh Yoreh Deah 155 that distinguish between food and medicine. Halakhic screen: passes.

Check Point Software (CHKP): Cybersecurity. Business is entirely software-based. No kosher or Shabbat concerns. Halakhic screen: passes.

Nice Ltd (NICE): Call center software and analytics. No halakhic concerns in the business. Halakhic screen: passes.

Elbit Systems (ESLT): Defense electronics. This is where some halakhic investors get thoughtful. Defense is not prohibited under Jewish law (the Torah explicitly permits self-defense and justified warfare, as discussed in the laws of milchemet reshut and milchemet mitzvah in Tractate Sotah 44b). Elbit is Israel-based and supplies the IDF, which many observant Jews view as religiously significant. Halakhic screen: passes, with a positive tilt for Israel-supporting investors.

Israel Chemicals (ICL): Potash, phosphate, bromine producer. Mining and chemicals. No halakhic issues with the business itself. Halakhic screen: passes.

Strauss Group (STRS.TA): Israeli food and beverage company. Most products are kosher certified. Operates in dairy, coffee, snacks, and prepared foods. Halakhic screen: passes, generally with positive connotations because it's a major kosher producer.

Osem Investments (OSEM.TA): Food company owned by Nestle. Makes pasta, soups, baked goods, and snacks. Strong kosher certification across product lines. Halakhic screen: passes.

Shufersal (SAE.TA): Israel's largest supermarket chain. Operates with Shabbat closure in most locations. Carries kosher inventory. Halakhic screen: passes, though strict investors may ask about the specific stores that are Shabbat-open.

El Al Israel Airlines (ELAL.TA): National carrier. El Al famously doesn't fly on Shabbat or major Jewish holidays. This is almost unique among major international airlines and makes El Al one of the most halakhically-aligned airlines in the world. Halakhic screen: passes with strong positive tilt.

Delek Group (DLEKG.TA): Energy holding company with stakes in oil and gas. Israeli offshore gas is a major national resource. Halakhic screen: passes.

Rami Levy (RMLI.TA): Supermarket chain with some Shabbat-open stores, which is controversial in Orthodox circles. More permissive pricing approach. Halakhic screen: passes but with the Shabbat-open caveat for strict investors.

What Doesn't Pass Easily

Not everything in the TA-35 is clean. Let me mention the names that give halakhic investors pause.

Harel Insurance Investments (HARL.TA): Insurance is generally permitted, but Harel has substantial investment holdings that may include non-kosher-screened positions. This is more of a pass-through concern than a direct screening issue.

Energean Oil & Gas (ENOG.TA, also ENOG.L): Energy company with operations extending beyond Israel. Generally passes but has some operational complexity.

Delek Automotive (DLKAU.TA): Automotive importer. No direct halakhic issues.

Nofar Energy (NOFR.TA): Renewable energy. No issues.

Names that are structurally borderline or fail:

Phoenix Holdings (PHOE.TA): Insurance holding company. Insurance is permitted but investment portfolios inside the insurance company may not be screened. Strict investors might want to pass.

There are occasional gambling-related or sin-adjacent names that cycle through the TA-35 depending on timing. Gambling is a live halakhic question (the Mishnah in Sanhedrin 24b disqualifies habitual gamblers from giving testimony), but passive ownership of a gambling-related company is generally treated under the corporate-veil framework similar to other sin industries.

Sector Composition in Halakhic Terms

Let me break down the TA-35 by halakhic category:

Financial/Banks (roughly 30% of the index): Covered by heter iska, passes
Technology (roughly 20%): Passes, no concerns
Pharmaceuticals (roughly 10%): Passes, medicine exception
Food and consumer staples (roughly 10%): Passes, mostly kosher-certified
Real estate (roughly 10%): Passes, real estate is generally clean
Energy and utilities (roughly 10%): Passes
Industrial and materials (roughly 5%): Passes
Telecom (roughly 5%): Passes

The TA-35 essentially has very few halakhic concerns at the index level. If you were forced to choose between the S&P 500 and the TA-35 for halakhic compatibility, the TA-35 wins by a wide margin. The S&P 500 has more exposure to non-kosher food producers, more complex bank stock questions without heter iska coverage, more Shabbat-operating retailers, and more sin-industry names generally.

Is the iShares MSCI Israel ETF (EIS) a Good Proxy?

EIS tracks the MSCI Israel Index, which is broader than the TA-35 and includes some smaller names plus Israeli ADRs. Total holdings are typically 60-80 companies. The halakhic character is similar to the TA-35 because the largest holdings overlap substantially.

For an American Orthodox investor who wants Israeli exposure without opening a TASE brokerage account, EIS is a reasonable one-stop solution. Management fee is around 0.60% (higher than US-focused ETFs but comparable to single-country international ETFs).

Drawbacks of EIS versus direct TA-35 names:
- You're buying a basket, which means you take on everything in the basket including names you might not want
- ETF structure loses the direct ownership clarity some Orthodox advisors prefer
- Dividend handling and reinvestment may not be as clean as direct ownership

For investors who want tighter control, picking 8-12 TA-35 names individually gives a reasonable diversified Israeli sleeve with no index-level surprises. A typical halakhic-conscious 10-name Israeli portfolio might include:

Bank Leumi, Bank Hapoalim, Teva, Check Point, Nice, Elbit Systems, Strauss Group, Shufersal, El Al, and Israel Chemicals.

Dividend Withholding and US Investors

One practical note for US-based investors buying Israeli stocks. Israel withholds 25% on dividends paid to foreign holders by default. Under the US-Israel tax treaty, this can be reduced to 12.5% if you file the right forms, but most US brokerages automatically withhold at the default rate. You can claim a foreign tax credit on your US return to offset this.

For tax-advantaged accounts (IRAs, 401ks), the withholding is partly lost because foreign tax credits don't benefit retirement accounts. This makes direct Israeli stock holding less tax-efficient in IRAs than US stock holding. Many advisors recommend holding international equities (including Israeli) in taxable accounts and keeping US equities in tax-advantaged accounts for this reason.

The Israel Bonds Alternative

Before closing, worth mentioning that Israel Bonds (not stocks) are another way to get Israeli exposure. Israel Bonds are sovereign debt instruments issued by the State of Israel. They're structured to be halakhically compliant (interest is paid, but the structure is governed by Israeli rabbinic oversight that addresses ribbit concerns). Rates are typically competitive with US Treasuries, and the instrument is viewed as religiously meaningful by many Orthodox investors.

Israel Bonds are fixed income, not equity, so they complement rather than replace a TA-35 equity allocation.

Bottom Line

The Tel Aviv 35 is one of the cleanest indexes in the world from a halakhic investing perspective. Banks are covered by heter iska. Most companies are either kosher-certified food producers, Shabbat-observant retailers, defense companies aligned with Jewish self-defense, or technology companies with no sin-industry exposure.

For Orthodox investors who want to combine financial diversification with halakhic integrity and Zionist values, an Israeli equity sleeve built from TA-35 names is about as close to a turnkey solution as the public markets offer. The broader global portfolio still needs careful screening, but the Israeli component can carry a lot of its own water.

Israeli Stocks for Halakhic Investors: Tel Aviv 35 Index Walkthrough