LocalShares, a Tennessee-based money manager, has filed plans with the Securities and Exchange Commission to possibly introduce the LocalShares Nashville ETF, an ETF that would track only companies based in the Nashville area.
The fund would track a proprietary index that will only include those companies with a minimum market value of $100 million during the 25 preceeding days leading up to inclusion and average daily volume of at least 50,000 shares during the preceeding three months, according to the filing. Index Universe reported news of the Nashville ETF earlier today.
While Tennessee is known for low taxes and ease of doing business, Nashville is not home to large amount of noteworthy companies. Corrections Corp. of America (NYSE:CXW) and Gaylord Entertainment (NYSE:GET) are among the companies based in Nashville, but there are units of larger firms based in the area. For example, Caterpillar's (NYSE:CAT) financial arm is based there.
The concept of regionally-focused is not new. In early 2010, Geary Advisors introduced the Oklahoma ETF (NYSE: OOK) and the Texas ETF (NYSE:TXF). Those ETFs did not last long and were close later that same year.
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