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Scott Sacknoff
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SPADE Indexes develops and manages sector, theme, and regional indexes used as the basis for investment products including exchange traded funds. Included among these is the SPADE Defense Index (NYSEarca: DXS), a benchmark for companies involved with defense, security, and space. The index... More
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  • Texas Stocks Rise in 2011, While Global Markets Decline 0 comments
    Jan 3, 2012 12:01 PM | about stocks: SLB, T, COP, XOM, EPD, KMB, TXN, HAL
    Texas Stocks Rise in 2011, While Global Markets Decline.
     
    Global diversification failed investors in 2011 with many markets around the globe down double digits and some firmly in bear market territory. The S&P500 ended the year flat but one of the top performances of the year, as indexes in China (down 22%), Brazil (down 18%), France (down 17%), Germany (down 14.7%), and India (down 25%), all finished the year substantially down. 
     
    In comparison, the SPADE Texas Index (NYSE: TEXAS) finished the year at 901.40, a gain of 2.59%. In the past three years, the Index, representing the largest 90% of public companies headquartered in Texas, has seen gains in excess of 65%. Longer term, since 2006, TEXAS was up 19.6% vs. just 0.7% in the S&P500.
     
    According to Scott Sacknoff, manager of the SPADE Texas Index, “From an investment perspective, Texas has a diverse economy with significant interests in energy and a business friendly political climate. Over the past several years, investors in Texas would have consistently seen gains that those invested with the S&P500 have not.”
     
    Although home to the 15th largest global economy in terms of GDP, currently no products exist to enable investors to invest in the Texas market. An ETF tracking the TEXAS index was briefing listed on the New York Stock Exchange in 2010 but the sponsor failed to market the product instead focusing on other activities.  Believing that there is still an opportunity, Mr. Sacknoff is currently discussing the index with potential fund sponsors, institutions, and pension fund managers to identify investor interest in state and regionally-focused funds. 
     
    “Financial products that enable investors to invest in Texas would benefit the state and investors. From a state-perspective, anytime you can increase investor interest in a region, it makes them healthier. From an investor standpoint, it provides the opportunity to invest in companies that can take advantage of regional markets and states with favorable tax policies instead of focusing on the U.S. as a whole.”
     
    Additional details on the SPADE Texas Index can be found at spadeindexes.com/texas
     

    Annual Price Returns
     
    SPADE Texas Index
    (NYSE: TEXAS)
    S&P 500
    2011
    2.59%
    0.00%
    2010
    19.10%
    12.78%
    2009
    35.02%
    23.45%
    2008
    [45.36%]
    [38.48%]
    2007
    19.85%
    3.53%
    2006
    10.74%
    13.62%
     
     
    The ten largest companies in the SPADE Texas Index as of 12/30/11 and their performance in 2011: 
     
    AT&T
    2.92%
    Conoco Philips
    7.00%
    Schlumberger
    [18.19%]
    Exxon Mobil
    15.91%
    EPD
    11.46%
    APC
    0.22%
    APA
    [24.03%]
    TXN
    [10.43%]
    HAL
    [15.48%]
    Kimberly Clark
    16.69%


    Themes: texas, etf, xle Stocks: SLB, T, COP, XOM, EPD, KMB, TXN, HAL
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