Does the waving wheat sure smell sweet? We’ll soon find out: All eyes are on Oklahoma now as the state gets the first state-focused exchange traded fund (ETF).
Spade Oklahoma Index (NYSEArca: OOK) launched today. The fund focuses in on a basket of companies that are domiciled in the state of Oklahoma. According to ETF Daily News, OOK will invest substantially all of its assets in the securities of companies that have their headquarters or principal place of business located in Oklahoma, or that generate a significant portion of their revenues in Oklahoma.
The fund tracks an index of 29 companies with a market cap of at least $100 million. The top industries in the fund include: drilling and exploration, 26.6%; pipeline, 22.3%; oil and gas, 18.7%; utilities, 13.6%; finance, 7.5%.
Oklahoma has a robust energy sector. For the second year in a row, energy companies led a ranking of the state’s top 50 public companies, The Daily Oklahoman reports.
It is also interesting to note that at least 10% of the fund’s fees are going to Aaron’s Bridge, a charity that helps give treatment options for children in Oklahoma with developmental disabilities. The expense ratio is 0.85%.
Toni Hopper for Duncan Banner reports that tourism is the third-largest driver of the state’s economy. The state showed an increase from $5.3 billion in 2007, to $6.1 billion, of tourism spending. Oklahoma boasts an authentic Midwestern atmosphere, cultural history and a diverse ecosystem.
For more stories about new ETFs, visit our new ETF category.