Investors who are looking to gain exposure to one of the top performing global markets, may be interested in a new ETF that starts trading today. The Tel-Aviv 25 index is the main Israeli large-cap stock index and has produced triple digit returns over the last four years. While Israel is known to have more publicly traded companies in the U.S. than any other country in the world, the make-up of the local TA 25, is mostly a domestic play on banks, phone companies, supermarket chains and other domestic consumption plays. The Israeli companies that trade in the U.S. are mostly hi-tech firms.

A few months ago Ishares launched an ETF on locally traded Israeli stocks. The Ishares MSCI Israel Index (NYSE: EIS) has done quite well, but there is an inherent flaw in the make-up of the ETF. The index gives Israeli generic drug giant, Teva Pharmaceutical (NASDAQ: TEVA) a colossal 25% weighting, basically leaving investors with a, "Where Teva goes, so goes the ETF" type of investment.

Starting today, the EIS will be joined by another ETF. Northern Trust (NASDAQ: NTRS) is launching the TAV, an ETF based on the TA 25. The ETF will try to follow the TA 25, and rarely will have an individual stock weighted above 10%.

For investors looking for some international exposure, take a look at Israel and research the new ETFs on the market. It's a good way to gain entrance and exposure to a flourishing market.

Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 5/27/08

With everyone speaking of a credit crunch and the rating agencies busy downgrading corporate credit ratings, S&P today announced that it is raising Israel's rating for its long-term foreign currency sovereign credit to "A" from "A-", the long-term local currency rating to "AA" from "A+", and the short-term local currency rating to "A-1+" from "A-1." S&P reiterated its short-term foreign currency rating at "A-1". In addition, the long-term foreign currency outlook is "positive" and the long-term local currency outlook is stable. S&P also raised its transfer and convertibility assessment for Israel to "AA" from "AA-".

This a huge for Israel. Just five years ago, the Israeli economy was on the verge of economic collapse. Thanks to the reforms initiated and pushed through by then Finance Minister and former PM Benjamin Netanyahu, five short years later the Israeli economy is thriving. Lower taxes, privatization and cuts in government spending helped right the sinking ship that was the Israeli economy. These reforms have continued with the current Ehud Olmert administration, to his credit. He has continued to encourage the privatization of government and quasi-government monopolies. Take for example Aliyah (immigration to Israel). A recent government decision empowers private organizations like Nefesh B'Nefesh to take the lead in offering services to North Americans looking to move to Israel. This private organization has been more successful in the last five years than the quasi-governmental agency has been in the last 25.