Texas Capital has launched a second ETF providing exposure to Texas companies, this time focusing exposure on oil and gas producers.
The Texas Capital Texas Oil Index ETF (OILT), listed on the NYSE on December 21, tracks the Alerian Texas Weighted Oil and Gas Index. OILT’s underlying index is an economic-value weighted index of energy companies that extract oil and gas within Texas.
Texas, the leading state for oil and natural gas production, plays an essential role in the U.S. energy landscape. Last year, Texas accounted for 42.4% of total U.S. oil production and 26.9% of total marketed natural gas production. Notably, these figures do not include federal offshore production from the Gulf of Mexico.
See more: “Bigger in Texas: Energy Reserves, Production & Exports”
According to Stacey Morris, head of energy research at VettaFi, Texas alone produces more oil than any OPEC member except Saudi Arabia. Oil and gas producers in Texas enjoy unique advantages. These include proximity to end markets, significant supporting infrastructure, a friendly regulatory environment, and favorable geology.
OILT’s underlying index comprises 31 constituents as of December 20. Top names in the index include Diamondback Energy Inc. (FANG), ConocoPhillips (COP), Pioneer Natural Resources Company (PXD), Occidental Petroleum Corporation (OXY), and ExxonMobil Corporation (XOM).
Texas Capital’s ETF Lineup
Texas Capital entered the ETF arena in July with the launch of the Texas Capital Texas Equity Index ETF (TXS). TXS targets public companies headquartered in Texas, the ninth-largest economy in the world, with a GDP of $2.36 trillion in 2022.
See more: “Texas Capital Invests in Lone Star State With New TXS ETF”
TXS has $18 million in assets under management. As of December 19, the fund has increased 5.6% since its inception on July 13.
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Vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for OILT, for which it receives an index licensing fee. However, OILT is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of OILT.