BlackRock Files to Launch New Texas-Focused ETF
Texas ETFs gain momentum as financial firms flock to the Lone Star State and regional stock exchange competition heats up.
BlackRock Inc. (BLK) is planning to launch a new Texas-focused ETF, according to a recent Securities and Exchange Commission filing, as the investment giant joins the growing trend of financial firms expanding their presence in the Lone Star State.
The iShares Texas Equity ETF will track the Russell Texas Equity Index, which measures the performance of U.S. companies headquartered in Texas, according to the filing submitted to the SEC on Friday.
This new ETF launch comes as Texas has begun to position itself as a challenger to traditional financial hubs, with Nasdaq announcing a second U.S. headquarters in Dallas and multiple exchanges establishing operations in the state.
BlackRock's fund will invest at least 80% of its assets in securities of companies headquartered in Texas, focusing on those included in the Russell 3000 Index with a float-adjusted market capitalization of $500 million or more, according to the filing.
Texas Emerges as Financial Powerhouse
The Texas ETF market has shown mixed results in recent performance. The Texas Capital Texas Equity Index ETF (TXS), which launched in July 2023, has accumulated $28.3 million in assets under management and posted a one-year return of 10.9%, according to etf.com data.
Meanwhile, the Texas Capital Texas Small Cap Equity Index ETF (TXSS), launched in December 2023, has gathered $12.2 million in assets but recorded a one-year decline of 0.5%.
Read More: NYSE Texas Launch Could Reshape ETF Listing Landscape
The BlackRock filing arrives as Texas continues its push to become a financial center. Earlier this year, the startup Texas Stock Exchange filed paperwork seeking regulatory approval to begin trading and listing companies in 2026.
The New York Stock Exchange also announced in February that it will launch an electronic exchange in Texas, followed by Nasdaq's March announcement of plans to establish a regional headquarters in Dallas later this year.
Texas currently hosts more than 200 Nasdaq-listed companies and has emerged as the state with the largest number of NYSE listings, representing more than $3.7 trillion in market value.
