Texas Capital Texas Small Cap Equity Index ETF (TXSS)

Overview

The Texas Capital Texas Small Cap Equity Index ETF (TXSC) seeks to track the performance of the Texas Capital Texas Small Cap Equity Index, which is designed to measure the performance of Texas-based small-capitalization companies.

Reputation and Reliability

Texas Capital is a regional bank and financial services company. The ETF is relatively new and its reputation is still developing in the ETF market.

Management Expertise

Texas Capital Bank is managing the fund. Their expertise is rooted in banking and financial services, extending to ETF management.

Goal

The ETF's primary goal is to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Texas Capital Texas Small Cap Equity Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, attempting to replicate the performance of the Texas Capital Texas Small Cap Equity Index.

Composition The ETF holds stocks of small-cap companies that are headquartered in Texas and meet the index's eligibility requirements.

Market Share: Data not readily available for precise market share.

Total Net Assets (AUM): 8410000

Key Competitors

• IWM
• SLY
• VBR

Competitive Landscape

The small-cap ETF market is highly competitive with well-established players. TXSC differentiates itself by focusing solely on Texas-based companies, offering a unique regional exposure. However, its relatively small AUM and shorter track record pose challenges in competing with larger, more diversified small-cap ETFs.

Historical Performance: Historical performance data should be obtained from financial data providers. Performance data is subject to change over time.

Benchmark Comparison: The ETF's performance should be compared against the Texas Capital Texas Small Cap Equity Index. Performance data is subject to change over time.

Expense Ratio: 0.29

Average Trading Volume

The ETF's trading volume is relatively low compared to larger small-cap ETFs which affects its liquidity.

Bid-Ask Spread

The bid-ask spread can vary depending on market conditions, which indicates the cost of trading the ETF.

Market Environment Factors

Economic conditions in Texas, the performance of small-cap stocks, and overall market sentiment influence TXSC. Sector growth in Texas influences TXSC.

Growth Trajectory

Given the ETF's focus on Texas-based companies, its growth trajectory depends on the economic health and growth of businesses within the state, and any shifts in the underlying index strategy or eligibility requirements.

Competitive Edge

TXSC's competitive edge lies in its unique focus on small-cap companies based in Texas. This provides investors with targeted exposure to the Texas economy, potentially benefiting from the state's growth and favorable business environment. The ETF's focused investment strategy may appeal to investors seeking geographically concentrated exposure. This concentrated regional exposure could also be a disadvantage if the Texas economy underperforms.

Volatility

Volatility depends on the volatility of the underlying small-cap stocks in Texas. Historical data will need to be obtained to determine this.

Market Risk

Market risk includes the general risk associated with investing in small-cap equities, as well as specific risks related to the Texas economy, regulatory changes, and sector concentrations within the state.

Ideal Investor Profile

The ideal investor is someone who wants targeted exposure to the Texas economy and small-cap stocks based there. It's suited for investors seeking geographic diversification within their small-cap holdings.

Market Risk

The ETF is suitable for long-term investors with a specific interest in the Texas economy, but may not be suitable for active traders due to lower liquidity.

The Texas Capital Texas Small Cap Equity Index ETF (TXSC) offers exposure to small-cap companies based in Texas, making it a unique option for investors seeking regional diversification within their small-cap portfolio. TXSC tracks the Texas Capital Texas Small Cap Equity Index with a passive strategy. Although it has a small AUM and is less liquid, it could be a good fit for investors focused on Texas. Investors should consider the risks associated with small-cap stocks and the Texas economy before investing.

Data Sources:

• Texas Capital official website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Financial data is subject to change.