BlackRock launches Texas-focused fund, citing state's 'twin engines' of business and population growth

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BlackRock has launched the iShares Texas Equity ETF, trading under the symbol TEXN on the Nasdaq, which focuses exclusively on publicly-traded companies based in Texas. The fund aims to provide investors with targeted exposure to the state's robust economy, which has seen significant growth in both business and population over the past decade. Texas has become a hub for corporate relocations, with over 300 companies moving their headquarters there in the last ten years, and its GDP reached a record $2.7 trillion in 2024, making it the eighth-largest economy globally.

The ETF, which currently holds about $5 million in assets and includes nearly 200 companies, features major holdings such as Tesla, Exxon, and Oracle. This launch comes amid a complex relationship between BlackRock and Texas, particularly following the state's criticism of the firm for perceived boycotting of the fossil fuel industry. Despite this, BlackRock has maintained substantial investments in Texas energy companies and has sought to improve relations with state officials, indicating a shift in strategy as the firm navigates the evolving landscape of environmental, social, and governance (ESG) considerations.