Several months ago we wrote about one of the latest innovations in the ETF space: state-specific funds. Now, it appears these ETFs are close to becoming a reality, as Oklahoma-based OOK Advisors has received approval from the SEC to launch the Oklahoma Exchange-Traded Fund (OOK). According to a press release from the company, the new fund will likely begin trading around September 17, and could be followed shortly thereafter by the TXF Large Companies ETF (TXF).
OOK will be based on the SPADE Oklahoma Index, which focuses on public companies with significant operations in Oklahoma. TXF will track the SPADE Texas Index, comprised of large cap companies with major operations in the Lone Star State. As one might expect, the Texas index includes heavy allocations to oil companies like ConocoPhilips and ExxonMobil, while the Oklahoma index is heavy on energy companies like Chesapeake (CHK) and ONEOK (OKS). Both indexes are market capitalization-weighted.
But these ETFs will offer exposure to a lot more than just the energy sector. The Texas ETF will could AT&T, Texas Instruments, and Dell among its largest holdings, while OOK will have significant allocations to BancFirst, Pre-Paid Legal, and Dollar Thrifty Automotive Group.
Oklahoma is the 29th largest state by GDP, while Texas is #2.
Disclosure: No positions at time of writing.
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