Could Texas Land the First State-Focused ETF?

Will the ETF industry ever see state-specific funds? There are a number of such funds in registration, and another one has just been added to the mix. Are we any closer, though?

Murray Coleman for Index Universe reports that Oklahoma City-based TXF Funds Inc. is requesting that the Securities and Exchange Commission (SEC) allow it to launch an ETF focused on the largest public companies in Texas.

The details of the ETF include: The initial request is only for the TFX Large Companies ETF. It’s designed to track the SPADE Texas Large Companies Index. The fund would trade on the NYSE Arca and come with annual gross operating expenses of 0.85%. The index would re-balance monthly, and liquidity restrictions and a cap of no more than 10% for any single name would put limitations on the index.

This ETF is just the latest addition in a long line of state-specific ETFs. In registration for awhile have been StateShares, offered by XShares, which are funds that would be focused on an array of states including California, Colorado, Florida, Illinois, Maryland and Ohio. An Oklahoma-focused ETF was to have launched last year as well, but never materialized.

Comments

[Tony Petroski:]

Who is going to buy the Michigan ETF, ticker symbol OUCH?

Jul 08 09:18 PM

[edstile:]

..Or the California ETF, ticker synmbol LOB (Look Out Below!)


On Jul 08 09:18 PM Tony Petroski wrote:

> Who is going to buy the Michigan ETF, ticker symbol OUCH?

Jul 09 11:23 AM

[David Sullivan:]

I'd like to be long TX and short CA. It would be like being long SWA and short US air. How could you lose?

Jul 10 02:45 PM