Oklahoma Stocks Surge in 2011
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Long Only, ETF investing, Portfolio Strategy
Contributor Since 2008
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 (NYSE: DXS), a benchmark for companies involved with defense, security, and space. The index serves as the underlying index for the Invesco Aerospace & Defense ETF (NYSE: PPA). The firm publishes a free newsletter "The SPADE Investor" which can be downloaded from the website. Other SPADE indexes are available for licensing. SPADE Defense Index website: http://www.spadeindex.com
Oklahoma Stocks Surge in 2011
While the U.S. stock market took a wild ride up and then down to finish flat in 2011, investors who bought Oklahoma-based public companies finished the year well in positive territory. In fact, the SPADE Oklahoma Index (NYSE: OKLAH) outperformed the S&P500 by 13.76% and the SPDR Energy ETF (XLE) by 12.47%. In the past six years, the Index, representing roughly 30 public companies headquartered in Oklahoma, has seen gains in excess of 86%.
Over the past six years, investors would have benefited handsomely. Compared to the S&P500 which was essentially flat over that timeframe, the SPADE Oklahoma Index (NYSE: OKLAH) was up 86%. Even the performance of the SPDR Energy ETF (XLE) pales in comparison, generating nearly 50% less.
December also saw three new Oklahoma-headquartered IPOs: Rose Rock Midstream, MidCon Energy, and Laredo Petroleum with additional firms on tap coming to market, such as the spinout, WPX Energy.
Index manager, Scott Sacknoff, has been actively shopping the index to institutions and pension fund managers to identify investor interest in a state-focused fund. An ETF tracking it was briefing listed on the New York Stock Exchange in 2010 but the sponsor failed to market the product instead focusing on other activities.
“Financial products that enable investors to invest in Oklahoma 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 investment perspective, heavily weighted toward energy, the index is in fact diversified among companies involved with drilling and exploration, pipelines, oil & gas, and coal. Investors in Oklahoma would have consistently seen gains that those invested with the S&P500 have not.”
Details on the SPADE Oklahoma Index can be found at spadeindexes.com/oklahoma
Annual Price Returns
SPADE Oklahoma Index (NYSE: OKLAH) |
S&P 500 |
XLE |
|
2011 |
13.76% |
0.00% |
1.29% |
2010 |
23.95% |
12.78% |
19.72% |
2009 |
49.17% |
23.45% |
19.34% |
2008 |
[39.43%] |
[38.48%] |
[39.80%] |
2007 |
19.97% |
3.53% |
35.34% |
2006 |
21.88% |
13.62% |
16.53% |
The ten largest companies by percentage in the SPADE Oklahoma Index (NYSE: OKLAH) as of 12/30/11 and their performance in 2011 is as follows:
OKS |
45.26% |
DVN |
[21.03%] |
WPZ |
28.60% |
CLR |
13.36% |
CHK |
[13.97%] |
WMB |
33.58% |
CHKM |
0.80% |
MMP |
21.91% |
OKE |
56.28% |
DTG |
48.67% |