Texas Economy Becomes Eighth Largest Globally, BlackRock's New ETF Opens Investment Door

Texas is experiencing unprecedented economic momentum, now ranking as the eighth largest economy in the world when measured by GDP alone. In 2024, the state’s economic output reached $2.7 trillion with an impressive annualized growth rate of 3.5% in the fourth quarter—substantially outpacing the nation’s 2.4% average growth. This economic strength has attracted investors’ attention and prompted major financial institutions to create new investment vehicles.

The Texas Growth Story: Why Now?

The Lone Star State has become a magnet for business relocation and population migration. Since 2015, over 300 corporate headquarters have relocated to Texas, establishing it as a dominant force across critical sectors including energy, technology, and industrials. One in every ten publicly traded U.S. companies calls Texas home, demonstrating the concentration of enterprise activity in the state.

Population expansion further fuels this economic narrative. Texas led the nation in population growth during 2024, surpassing 31 million residents. This combination of business dynamism and demographic strength creates a unique investment thesis that encompasses both current economic strength and future growth potential.

BlackRock’s Strategic Response: TEXN Launch

Recognizing these opportunities, BlackRock has introduced the iShares Texas Equity ETF (ticker: TEXN), trading on Nasdaq. This vehicle provides investors systematic exposure to approximately 200 companies headquartered in Texas, enabling portfolio participation in the state’s dual growth engines.

The TEXN fund tracks the Russell Texas Equity Index and carries an expense ratio of 0.20%, offering tax-efficient, transparent access to Texas-based enterprises. For context, BlackRock already manages nearly $380 billion in Texas public company equities, including $115 billion specifically in oil and gas assets, positioning the firm as one of the state’s largest institutional investors.

Expanding Investment Access

The launch addresses a clear market need. Approximately 2.2 million Texas-based investor accounts currently hold iShares ETF positions, and TEXN creates a dedicated channel for residents and national investors to concentrate exposure on their state’s economy.

BlackRock’s broader ETF ecosystem includes over 400 distinct products in the U.S. market, with geographic-focused offerings exceeding 60 mutual funds and ETFs managing more than $100 billion in aggregate. TEXN joins this family as a specialized tool for those seeking efficient, transparent portfolio construction aligned with their investment conviction in Texas’s economic trajectory.

“This ETF simplifies how investors can participate in Texas’s growth story,” reflecting the increasing demand for targeted geographic exposure in an increasingly fragmented market.

The combination of record state GDP, sustained growth above national average, concentrated corporate headquarters, and ongoing population migration establishes Texas as a compelling long-term investment destination. TEXN provides the mechanism for investors to capture these dynamics through a single exchange-traded security.