ETFs make "statement'

Talk about state pride. Two exchange-traded funds, one that invests only in Oklahoma companies, and the other only in Texas companies, are expected to launch sometime next month. The Oklahoma Exchange-Traded Fund (OOK), and the Texas Large Companies Exchange-Traded Fund (TXF) will both be advised by OOK Advisors LLC. “Both Oklahoma and Texas are known as business-friendly states with strong public companies,” said Keith Geary, chairman of OOK Advisors. “I believe both states have weathered the recent national economic storms in an enviable fashion and are poised to move forward.” State ETFs could make sense, said Tom Lydon, president of Global Trends Investments, which manages $75 million in assets. “Many states have very large economies that rival that of many countries, and the funds could be worth a look for interested investors,” he said. The economies of both Oklahoma and Texas are tied closely to the energy industry, so the two ETFs could be an energy play, Mr. Lydon said. Others think that state-specific ETFs sound gimmicky. “I don't see the merit in them,” said Richard Romey, president and founder of ETF Portfolio Solutions Inc., which manages $50 million. Mr. Geary, however, said that he was moved to create the ETFs because his clients — he is also chairman of broker-deal Capital West Securities Inc. —— agreed that it was a good idea. “I talked to a dozen of our larger accounts, and they all said you have got to do that,” he said.