With its push into the Lone Star State, Blackrock is planning to launch a Texas ETF

BlackRock Inc. is deepening its presence in Texas with plans to launch a new exchange-traded fund focused on the state’s economy.

‍

The world’s largest asset manager has filed for the iShares Texas Equity ETF with the Securities and Exchange Commission, according to a filing submitted on Friday. The proposed fund will be passively managed and invest in companies headquartered in Texas.

‍

This move is part of BlackRock’s broader push to strengthen its ties in Texas, particularly after its commitment to environmental, social, and governance (ESG) investing sparked backlash from Republican lawmakers. Alongside its support for ESG initiatives, BlackRock has joined forces with Citadel Securities as an early backer of the Texas Stock Exchange, a new trading platform expected to launch in 2026.

‍

While BlackRock did not provide additional details beyond the regulatory filing, a company spokesperson emphasized that the ETF is being developed in response to client interest.

‍

“Our clients have shown a growing interest in gaining exposure to the Texas economy,” the spokesperson said in an email. “With a GDP of $2.6 trillion, Texas would rank as the eighth-largest economy in the world if it were a standalone country, according to the U.S. Bureau of Economic Analysis.”

‍

Texas has been attracting increasing attention from major financial institutions. Earlier this month, Nasdaq announced plans to establish a regional headquarters in Dallas, citing approximately 800 clients in the state. Nasdaq currently lists around 200 Texas-based companies.

‍

In February, the New York Stock Exchange also revealed plans to launch a fully electronic trading platform in Dallas while shifting its NYSE Chicago operations to Texas.

‍

Details on the new ETF, including its ticker symbol and fee structure, were not included in the initial filing.

‍

While single-country equity funds are common in the asset management industry, ETFs that focus on specific U.S. states remain relatively rare. However, there is some precedent. In 2023, Texas Capital Bank launched two Texas-focused ETFs: the Texas Capital Texas Equity Index ETF (ticker TXS) and the Texas Capital Texas Small Cap Equity Index ETF (ticker TXSS). These funds have since accumulated approximately $28 million and $12 million in assets, respectively.

‍

“The reasoning behind this move is straightforward—Texas is seen as a favorable business environment, and many companies are relocating there,” said Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence. “If the fund performs well, it could gain traction, and once that happens, the narrative around Texas investing will strengthen.”

‍

With Texas increasingly becoming a financial hub and a business-friendly destination, BlackRock’s new ETF could appeal to investors looking to capitalize on the state’s economic momentum.

‍