BlackRock Launches Texas-Focused ETF to Capitalize on Lone Star States Growth Potential

BlackRock, the world's largest asset manager, has launched a Texas-focused exchange-traded fund (ETF) in an effort to capitalize on the Lone Star State's growing reputation as a magnet for companies, capital, and jobs in the United States.

The iShares Texas Equity ETF will invest in companies headquartered in Texas, offering low-cost, tax-efficient access to regional or sector-specific growth in a single trade. Texas' low taxes, business-friendly policies, and growing tech and energy sectors have attracted investors and asset managers looking to tap into its long-term growth potential.

BlackRock said Texas is home to one in ten publicly traded U.S. companies, and that more than 300 firms have relocated their headquarters to the state since 2015. Elon Musk-led Tesla and SpaceX, as well as tech giants Oracle and Hewlett Packard Enterprise, have moved to the state in recent years.

"TEXN presents a new opportunity...to capitalize on Texas' twin engines of business and population growth," said Joe DeVico, BlackRock's Head of the Americas Client Business.

The Texas Stock Exchange, a new venture backed by financial giants including BlackRock, Citadel Securities, and Charles Schwab, is targeting a 2026 launch, reflecting Wall Street's growing interest in the state.

BlackRock has had a complicated relationship with officials in Republican-leaning states in recent years over its climate-focused investment policies. Texas lawmakers accused the firm of boycotting the fossil fuel industry, which BlackRock denied, citing continued investments in energy companies. Earlier this month, Texas removed BlackRock from a list of companies it viewed as hostile to the energy sector, after the firm scaled back several key climate commitments.

BlackRock said it manages nearly $380 billion in assets tied to public companies in Texas, including about $115 billion in the state's oil and gas sector, making it one of the largest investors in the region.

(Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila and Alan Barona)