New State-Focused ETFs Prepare for Launch
September 10th 2009 at 1:00am by Tom Lydon
After a long wait, there will soon be two states represented by their own exchange traded funds (ETFs): Texas and Oklahoma.
OOK Advisors is launching two new state-focused ETFs. The ETF Texas ETF (TXF) is awaiting approval and is going to track the SPADE Texas Index.
Jim Landers for Dallas News reports that Texas has been the leading exporting state for several years. When Texas’ exports dropped back, so did the Texan economy. There have been signs of a recovery, but there’s still a ways to go before things normalize. The jobless rates may have hit bottom in Texas, and improvement is expected later this year, reports L.M.Sixel for The Houston Chronicle.
Another single-state ETF will be the Oklahoma ETF (OOK), which will track the SPADE Oklahoma Index. The ETF will give exposure to the largest companies domiciled in the state and will be available to retail and institutional investors.
Murray Evans for Forbes reports that the economy of Oklahoma is tied closely to the energy industry, and natural gas prices have dropped well below $3 per 1,000 cubic feet – the lowest point since 2002.The strong point is that during the current recession, only one Oklahoma bank has failed and there are no others expected to fail.
Dennis Cauchon for USA Today reports that Oklahoma is actually one state that has dodged the recession. The unemployment rate is low and personal incomes are up. Likewise, construction appears to healthy and new medical buildings are going up.
For more stories about new ETFs, visit our new ETF category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.