BlackRock launched a new exchange-traded fund Tuesday targeting companies headquartered in Texas, capitalizing on the state's emergence as an economic powerhouse that has attracted hundreds of corporate relocations and outpaced national growth rates.
The iShares Texas Equity ETF (NASDAQ: TEXN) provides investors access to nearly 200 Texas-based companies across energy, technology and industrial sectors, marking the world's largest asset manager's latest geographic bet on the Lone Star State's continued expansion.
The ETF tracks the Russell Texas Equity Index with an expense ratio of 0.20%, offering exposure to companies in a state that now ranks as the eighth largest economy globally1. Texas is home to one in 10 publicly traded U.S. companies, according to BlackRock2.
"TEXN presents a new opportunity for Texans, and investors across the country, to invest in nearly 200 companies powering the state's economy and to capitalize on Texas' twin engines of business and population growth," said Joe DeVico, Head of the Americas Client Business at BlackRock2.
The fund joins BlackRock's portfolio of over 60 geography-focused mutual funds and ETFs managing more than $100 billion in assets2.
Texas recorded a GDP of $2.7 trillion in 2024, growing at an annualized rate of 3.5% in the fourth quarter, outpacing the national average of 2.4%12. The state led the nation in population growth in 2024, surpassing 31 million residents1.
More than 300 companies have relocated their headquarters to Texas since 2015, including major technology firms like Tesla, Oracle and Hewlett Packard Enterprise13. The state earned the Governor's Cup award for a record 13th consecutive year in 2024 for leading business relocations and expansion projects4.
Despite national economic uncertainties, economists expect Texas to maintain strong growth in 2025, closely mirroring its 3.9% expansion in 202445.
BlackRock already manages approximately $380 billion in assets tied to Texas public companies, including $115 billion in the state's oil and gas sector, making it one of the largest investors in the region12. The firm serves 2.2 million Texas-based investor accounts through iShares ETFs1.
"With over 400 ETFs in the U.S., iShares provides access to nearly every corner of the market to meet our clients' financial goals," said Elise Terry, Head of U.S. iShares at BlackRock1.
