BlackRock launches ETF targeting Texas-based companies

DALLAS - BlackRock (NYSE: BLK), a prominent player in the Capital Markets industry with a market capitalization of $152.8 billion, launched the iShares Texas Equity ETF (NASDAQ:TEXN) on Tuesday, providing investors targeted exposure to companies headquartered in Texas through an exchange-traded fund. According to InvestingPro data, BlackRock maintains a strong financial health rating of GOOD, supported by robust revenue growth of 14.2% over the last twelve months.

The new ETF invests in nearly 200 U.S. companies based in Texas across sectors including energy, technology, and industrials. It tracks the Russell Texas Equity Index with an expense ratio of 0.20%.

Texas has emerged as a significant economic hub, currently ranking as the eighth largest economy globally with a GDP of $2.7 trillion. The state’s economy grew at an annualized rate of 3.5% in the fourth quarter of 2024, outpacing the national average of 2.4%, according to data from the Office of the Texas Governor.

"TEXN presents a new opportunity for Texans, and investors across the country, to invest in nearly 200 companies powering the state’s economy," said Joe DeVico, Head of the Americas Client Business at BlackRock, in a press release statement.

The fund joins BlackRock’s existing geography-based offerings, which include over 60 mutual funds and ETFs with more than $100 billion in assets under management targeting specific countries or regions.

BlackRock currently manages approximately $380 billion in assets in public companies in Texas, including $115 billion in Texas oil and gas companies, making it one of the largest investors in the state.

The ETF launch comes as Texas continues to attract businesses, with more than 300 companies having relocated their headquarters to the state since 2015. Texas also led the nation in population growth in 2024, surpassing 31 million residents. For investors seeking deeper insights into BlackRock’s performance and potential, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed metrics, expert analysis, and additional ProTips that help inform investment decisions.

In other recent news, BlackRock has unveiled its artificial intelligence research platform, "Asimov," designed to enhance portfolio insights by scanning research notes, company filings, and emails. This AI initiative, revealed by Chief Operating Officer Rob Goldstein, is expected to be integrated across the entire firm within two years. On the financial front, TD Cowen has raised its price target for BlackRock to $1,154, citing a bullish long-term outlook and revised earnings per share estimates for 2025-2026. The firm anticipates BlackRock’s organic growth potential to drive significant revenue and earnings increases by 2030. Keefe, Bruyette & Woods also reaffirmed its Outperform rating on BlackRock, noting the company’s growth prospects in private markets and technology segments. Additionally, BlackRock’s Chairman and CEO Larry Fink has expressed support for the GOP’s proposal to create "MAGA accounts" for newborns, advocating for investment accounts as a means to secure Americans’ financial futures. This move aligns with BlackRock’s forthcoming report, which suggests policy expansions to improve retirement plan access.

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