Texans now have a new way to invest directly in the economic success of their home state, as BlackRock, the world’s largest asset management firm, launched a first-of-its-kind exchange-traded fund (ETF) dedicated solely to companies headquartered in Texas.
The new fund, dubbed the Texas Equity ETF and listed under the ticker TEXN on the Nasdaq, began trading Tuesday. It will offer investors exposure to nearly 200 publicly traded companies based in Texas — from energy giants and tech firms to healthcare leaders and manufacturers.
“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 BlackRock.
A Bet on Texas’ Economic Trajectory
The ETF launch comes at a time when Texas’ economy continues to expand at a staggering pace. Since 2000, the state's gross domestic product has grown from $742 billion to $2.7 trillion, more than tripling in size and outpacing national inflation by a wide margin. Today, Texas is home to roughly 10% of all publicly traded companies in the U.S.
This growth is not only economic but demographic. With a steady influx of residents and businesses, the Lone Star State has become one of the country’s most powerful economic engines — drawing comparisons to national economies. Over the last decade, Texas has seen over 300 corporate relocations, further solidifying its reputation as a business-friendly destination.
BlackRock sees this as an opportunity to harness investor interest in regional strength. While the firm offers a wide range of ETFs based on countries or broader regions, TEXN is the first ETF it has created that targets a single U.S. state.
“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 BlackRock. “TEXN offers more choice to investors seeking convenient, tax-efficient, and transparent solutions to build portfolios that reflect their investment views.”
The fund carries an expense ratio of 0.20%, placing it on the lower end of ETF cost structures.
A Thaw in a Frosty Relationship
Though BlackRock has stressed that the launch of TEXN is purely a financial product based on market demand, the move arrives as relations between the company and the State of Texas appear to be warming after years of tension.
In 2021, Texas passed legislation targeting financial firms perceived to be hostile to fossil fuels. BlackRock was placed on a state list of “fossil fuel boycotters,” resulting in billions in state investment funds being pulled, including $8.5 billion from the Texas Permanent School Fund.
The firm repeatedly denied the accusation, emphasizing its continued investments in energy companies, including fossil fuels. In the years since, BlackRock made visible efforts to reengage with Texas leadership, including partnering with Lt. Gov. Dan Patrick on an energy investment summit and supporting the formation of a Texas-focused stock exchange.
Earlier this month, Texas Comptroller Glenn Hegar announced that BlackRock would be removed from the boycott list, a development unrelated to the ETF launch but certainly beneficial to the company’s business interests in the state.
A Unique Investment Opportunity
TEXN’s launch gives retail and institutional investors a way to align portfolios with the fortunes of a single state, something previously not offered in the ETF market.
While some might see this as a niche product, BlackRock appears to be betting on the enduring strength and national relevance of Texas’ economy. For Texans, it offers a chance to “buy local” at scale, tapping into the success of homegrown companies that increasingly drive national and global markets.
Whether this fund becomes a model for other state-centric ETFs remains to be seen, but for now, BlackRock’s TEXN is a pioneering move — both in terms of product innovation and as a signal of renewed cooperation between the world’s largest asset manager and the country’s second-largest state economy.
