MutualFundWire.com: Five Months In, a Bank Triples Its ETF Lineup

MutualFundWire.com

The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication

Thursday, December 28, 2023

Five Months In, a Bank Triples Its ETF Lineup

A publicly traded, Texas bank's team is tripling their ETF lineup after entering the space earlier this year.

Edward A. "Ed" Rosenberg
Texas Capital
Managing Director, Head of ETF and Funds Management

Last week, Ed Rosenberg, head of ETF and funds management for Texas Capital, and Daniel Hoverman, head of corporate and investment banking at Texas Capital, unveiled the launch of their second and third ETFs: the Texas Capital Texas Oil Index ETF (OILT on the NYSE) and the Texas Capital Small Cap Equity ETF (TXSS on the Nasdaq). Both new funds are series of the Texas Capital Funds Trust, of which Rosenberg is president.

The inception date for both new ETFs was December 20. TXSS comes with an expense ratio of 49 basis points, while OILT's expense ratio is 35bps.

Texas Capital Bank Wealth Management Services, Inc. (dba Texas Capital Private Wealth Advisors, an affiliate of Texas Capital Bank and TCBI Securities) will serve as investment advisor to both new funds. Their PM team includes: J. Steven Orr, chief investment officer of Texas Capital Private Wealth Advisors; and Carlos Pena, vice president, portfolio manager in the ETFs and funds management group.

OILT is designed to track the Alerian Texas Weighted Oil and Gas Index, which is provided by VettaFi, LLC. TXSS is designed to track the Texas Capital Texas Small Cap Equity Index, which is provided by Syntax.

The launch of TXSS and OILT comes five months after the Texas Capital team rolled out their first ETF, the Texas Capital Texas Equity Index ETF (TXS). Last week's dual launch also comes ten months after Rosenberg joined the firm to lead their "funds management strategy."

"We are strategically broadening our ETF offerings, granting global investors unparalleled access to the dynamic investment opportunities in the Lone Star State," Rosenberg states, adding that OILT and TXSS "present unique opportunities for investors to gain exposure to the thriving Texas economy."

Hoverman puts the expansion of Texas Capital's new ETF lineup in the context of the firm being "the premier full-service financial institution in Texas."

"We take great pride in our unique position to bring these investment avenues to market through our ETF & Funds Management practice," Hoverman states.

The new ETFs' other service providers include: Dechert LLP as counsel; Ernst & Young LLP as independent accounting firm; State Street Bank and Trust Company as custodian and transfer agent; Ultimus Fund Solutions, LLC as administrator and fund accountant; Ultimus' Northern Lights Compliance Services, LLC (NCLS) as chief compliance officer provider; and Ultimus' Northern Lights Distributors, LLC as distributor and principal underwriter.

Printed from: MFWire.com/story.asp?s=66865

Copyright 2023, InvestmentWires, Inc.
All Rights Reserved