companies. Based on the SPADE Texas Index, this will be the second state based ETF introduced by OOK Advisors, and is closely following the release of the Oklahoma ETF (OOK) which began trading last Thursday. The Oklahoma ETF has been relatively flat since inception and has experienced low volume.
“We believe there are some outstanding companies in Texas with proven abilities that will make this fund a great vehicle to invest in Texas with us,” said Keith Geary, chairman of the Geary Companies.
WHAT IS THE SPADE® TEXAS INDEX AND HOW IS IT CREATED AND MAINTAINED?
The SPADE® Texas Index (the “Underlying Index”) was created and developed by ISBC/SPADE® Indexes LLC (the “Index Administrator”) and licensed to OOK Advisors, LLC (the “Advisor”) for use in an exchange traded fund and related ETF options
The SPADE® Texas Index is a modified market capitalization weighted index comprised of publicly traded companies that have their headquarters in Texas. The SPADE® Texas Index is designed to benchmark the largest publicly traded companies in the state of Texas by market capitalization.
To be included in the eligible universe for the SPADE® Texas Index, companies must meet the following criteria:
(1) Have their corporate headquarters in Texas.
(2) Have their shares listed on the New York Stock Exchange (“NYSE”) or quoted on the NASDAQ Securities Market Inc. (“NASDAQ”).
(3) Maintain a minimum $100 million market valuation for the preceding 25 days.
(4) Maintain a minimum $5.00 daily sale price.
(5) Maintain sufficient liquidity, defined as trading a minimum of 50,000 shares per day or $1,000,000 in trading value on average over the preceding three months.
The companies are then ranked by market capitalization and the top companies whose aggregate market capitalizations comprise 90 percent of the aggregate market capitalization of all companies in the eligible universe are selected for the SPADE® Texas Index. The selected companies are then modified to conform with asset diversification requirements, which are applied in connection with quarterly updates to the Index, and designed to ensure that no company has a weight greater than 10% at the time of rebalancing.
Upon meeting the defined rules of the SPADE® Texas Index, companies are added to the index with the exception of new offerings or those companies operating at the rules threshold, which may be delayed by the Index Administrator to ensure index
continuity. The Index Administrator may at any time and from time to time change the number of issues comprising the SPADE® Texas Index by adding or deleting one or more components, or replace one or more issues contained in the SPADE® Texas Index with one or more substitute stocks of its choice, if in the Index Administrator’s discretion such addition, deletion or substitution is necessary or appropriate to maintain the quality and/or character of the industry groups to which the SPADE® Texas Index relates.
The SPADE® Texas Index is calculated using a modified market capitalization weighting methodology. The components’ market capitalization weights are modified to conform to asset diversification rules, which are applied in conjunction with the scheduled quarterly updates, and are designed to ensure that no company’s stock has a weight greater than 10 percent at the time of balancing. The aggregate amount by which any components are reduced is redistributed proportionately accross the remaining components. If necessary, the process is repeated until the asset diversification rules are complied with.
You can find the website devoted to this ETF: HERE
You can find the prospectus: HERE