The Nashville-based
LocalShares is joining the ETF market.
Cinthia Murphy reports for
Index Universe that the money
management firm has prepped paperwork for
LocalShares Nashville
ETF, which will invest solely on Nashville-based companies.
Murphy writes that the fund would replicate a proprietary index that
tracks the performance of Nashville companies that have a minimum of
$100 million in market capitalization and that have seen at least
50,000 shares in average daily trading volume during the prior three
months.
Decker Wealth Management is the subadvisor. The fund will charge annual fees of 49 basis points.
Launching a fund based on state geography is not new, writes Murphy, but it's definitely rare.
She notes that LocalShares "tops its list of risk warnings" to investor
by pointing out that this nondiversified strategy is a "new fund," and
as such it might not attract enough assets to keep tracking error to a
minimum or to even reach an "economically viable size." The firm, it
seems, has listed the possibility of liquidation as the biggest risk
associated with the fund.
To read more about this Nashville fund, go to the article
here.
 
Edited by:
HFD
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