OILT Profile
The Texas Capital Texas Oil Index ETF (OILT) is a specialized exchange-traded fund designed to track the performance of the Alerian Texas Weighted Oil and Gas index. Launched by Texas Capital Funds Trust on December 20, 2023, OILT offers investors passive exposure to an economic-value weighted index comprising stocks of companies engaged in the extraction of oil and gas specifically within Texas. This targeted focus results in a concentrated portfolio consisting of approximately 30 stocks, reflecting the economic significance of the Texas oil and gas industry.
OILT's investment strategy revolves around replicating the performance of the underlying index, which is weighted based on the economic value contributed by each constituent company within the Texas oil and gas sector. This passively managed approach ensures minimal tracking error relative to its benchmark, providing investors with a transparent and cost-effective means to participate in the growth potential of Texas-based energy companies. The fund's structure is designed to appeal to investors seeking sector-specific exposure and potential diversification benefits within the broader energy market.
Investors in OILT benefit from Texas Capital Funds Trust's commitment to efficiency and reliability in managing ETFs. The fund offers liquidity and ease of trading inherent to ETFs, complemented by the stability and growth potential associated with investments in the Texas oil and gas sector. OILT serves as a strategic component within Texas Capital Funds Trust's suite of ETF offerings, catering to the diverse needs of institutional and individual investors seeking targeted exposure to regional energy markets.
Since its inception, OILT has been instrumental in Texas Capital Funds Trust's portfolio of specialized ETF products, providing investors with access to a niche segment of the energy industry characterized by its regional focus and economic importance. The fund's alignment with the Alerian Texas Weighted Oil and Gas index underscores Texas Capital Funds Trust's dedication to delivering investment solutions that capture the unique opportunities presented by Texas-based oil and gas companies, while enhancing portfolio diversification and potential returns for investors.
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