Texas Capital has launched an exchange traded fund that exclusively targets public companies headquartered in the state of Texas. The Texas Capital Texas Equity Index ETF (NYSE Arca: TXS) tracks the performance of the Texas Capital Texas Equity Index.
With a GDP of $2.36 trillion in 2022, Texas’s economy is the ninth-largest in the world. The index aims to reflect the state economy’s overall performance.
At the time of launch, the fund’s index included 216 publicly traded companies. Component weights depend first on sector, then on relative contribution to Texas’ reported GDP, then by market capitalization.
Enabling the World to Invest in Texas
Texas Capital’s head of ETF & funds management Edward Rosenberg said that TXS will “enable the world to invest in Texas.” He added: “the state’s pro-business environment creates persistent competitive advantages for companies based in Texas relative to companies headquartered elsewhere. Our launch of TXS will enable Texas-headquartered public companies to continue attracting financial capital.”
Rosenberg is also president of the Texas Capital Funds Trust.
Texas Capital president and CEO Rob C. Holmes said that TXS “offers… exposure to one of the largest, most diverse and fastest growing economies in the world.”
“While there have been single-state-focused ETFs in the past that have closed, this fund seems different,” said Todd Rosenbluth, head of research at VettaFi. “There are some great companies based in Texas, and Texans have a strong affinity for where they live.”
TXS carries an expense ratio of 0.49%.
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