Exchange traded funds sponsor LocalShares will introduce the first city-specific ETF when the Nashville Area ETF (NYSE: NASH) debuts Thursday. NASH will track the LocalShares Nashville Index. The new fund has an annual expense ratio of 0.49 percent.
"The LocalShares Nashville Index is comprised of publicly traded U.S. companies that have corporate headquarters in the Nashville, Tennessee region," according to a statement. Other requirements for index inclusion include a market capitalization of at least $100 million during the 25 days preceding the initial inclusion date and average daily volume of at least 50,000 shares for the preceding three months.
Regional ETFs have been tried before with Oklahoma and Texas funds that debuted in 2009, but those funds did not even last until the end of 2010.
Related: Some Niche ETFs Seeing Decent Inflows.
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