BlackRock, the world’s largest asset manager, has launched a new exchange-traded fund, the iShares Texas Equity ETF (NASDAQ: TEXN), focused exclusively on companies headquartered in Texas. This move is seen as both a strategic financial initiative and a symbolic gesture, signaling improved relations between the firm and Texas officials after years of tension over environmental, social, and governance (ESG) issues.
The TEXN ETF began trading in June 2025 and includes nearly 200 publicly traded Texas-based companies spanning various industries such as energy, technology, and telecommunications. Major holdings include Tesla Inc., Exxon Mobil Corp., Oracle Corp., Chevron Corp., and AT&T Inc. As of June 27, the fund had approximately $7 million in assets under management and closed at $25.09 per share. It tracks the Russell Texas Equity Index and carries a modest expense ratio of 0.20%.
The launch comes amid Texas’ remarkable economic growth. In 2024, the state’s gross domestic product (GDP) reached $2.7 trillion, which would make it the world’s eighth-largest economy if it were an independent nation. Texas outpaced the national economy in late 2024, growing at an annualized rate of 3.5% compared to the U.S. average of 2.4%. It also led the nation in population growth, surpassing 31 million residents.
Over the past decade, more than 300 corporations have relocated their headquarters to Texas, drawn by its business-friendly regulatory climate, low taxes, and skilled labor force. The influx has turned the state into a magnet for innovation, with one in ten publicly traded U.S. companies now based there.
The debut of TEXN also signals a softening in the previously strained relationship between BlackRock and Texas lawmakers. In 2022, the Texas Comptroller included BlackRock on a list of firms accused of boycotting the oil and gas industry due to their ESG-related investing practices. This designation led to several state-run investment funds severing ties with the firm. However, BlackRock has since taken steps to alleviate these concerns, such as exiting some high-profile climate-focused investor coalitions and reaffirming its commitments to traditional energy sectors.
These actions helped facilitate BlackRock’s removal from Texas’ ESG “blacklist” in June 2025, a significant development that opened the door for the TEXN fund’s entry into the market. BlackRock currently manages nearly $380 billion in assets tied to companies operating in Texas, including about $115 billion specifically invested in the state’s oil and gas sector. It also provides financial services to more than 2.2 million Texas-based investor accounts through its family of iShares ETFs.
“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 innovation,” said Joe DeVico, Head of the Americas Client Business at BlackRock.
The iShares Texas Equity ETF is part of a broader strategy by BlackRock to expand its geography-based investment offerings. The firm already manages more than 60 regionally targeted ETFs and mutual funds, totaling over $100 billion in assets. TEXN provides investors with a transparent and tax-efficient tool to gain targeted exposure to one of the nation’s fastest-growing economies.
As economic and political dynamics continue to evolve, BlackRock’s launch of TEXN underscores not only Texas’ economic momentum but also the firm’s adaptability in responding to shifting regulatory environments and investor interests.
