Discover a new way to invest in the Lone Star State

The power of Texas

When choosing long-term investments, it’s important to consider options with strong fundamentals. That means identifying diverse assets that are not only poised for growth but are also resilient enough to stand up to uncertainty and weather economic climate changes.

At Texas Capital, we see the potential in Texas’s economy to deliver in a way that’s unlike any other U.S. equity today. To help investors put that unique opportunity to work in their portfolios, we’ve launched a family of Texas-focused ETFs — Texas Equity Index ETF (NYSE Arca: TXS), Texas Small Cap Equity Index ETF (Nasdaq: TXSS) and Texas Oil Index ETF (NYSE Arca: OILT) — the only ones of their kind in the ETF industry today.¹

Why are we excited to tap into what makes Texas special? To start, the state’s economy is the eighth largest in the world2 — and it’s not done growing yet. Together, four key features are helping drive this ongoing expansion and further strengthening Texas’s outlook.

Policy: Supporting businesses of all sizes

Today, Texas is known as the “Headquarters of Headquarters,” with more Fortune 500 companies calling it home than any other state.² A major part of the appeal stems from Texas’s business-friendly climate: Its regulatory and tax policies provide a predictable, low-burden environment for businesses across industries, from tech and financial services to automotive and manufacturing.

And it’s not only big businesses that thrive here: More than 99% of Texas businesses are small businesses, and in 2021, about 37,000 small firms exported $147.8 billion.³ They, too, are able to benefit from Texas’s employment and liability laws, occupational licensing and land-use regulations to help reduce the costs of regulatory burdens.

Having an environment that benefits diverse industries drives a virtuous cycle of effects that underpins the resilience of the economy and helps maintain growth.

Geography: Strengthening a strategic hub for trade

Texas’s geographic location, along with its robust infrastructure, makes it a strategic hub for significant trade. Home to more than 10 deep-water ports and 26 commercial airports, the state provides efficient access to worldwide markets and has led the nation in exports for 21 consecutive years.4

Texas is also a leading location for international business: It has attracted nearly 1,300 new foreign direct investment (FDI) projects since 2015, which are expected to create more than $97 billion in capital investment.⁴

Investment: Prioritizing people and technology

Through significant investments in human capital and technology, Texas is transforming into an epicenter of innovation and entrepreneurship. For the past decade, education and workforce investments have consistently ranked in the top three state budget commitments.⁵

Texas’s continued focus on building a workforce of the future means businesses today enjoy the knowledge and skill of highly trained workers. 37% of the Texas workforce ages 25–65 is college educated, up from 31% in 2012.⁶

With cities like Austin, Dallas and Houston leading the way, Texas has emerged as a thriving hub for tech companies and startups, and in 2023, the state ranked among the top 10 for startups receiving venture capital funding ($2.4 billion).⁷ The profusion of highly regarded universities and research institutions across Texas also continues to foster innovation and contribute to economic growth. In 2022, $3.77 billion was spent on research and innovation at Texas higher education institutions.⁸

By making meaningful investments in education and technology, Texas has built a strong foundation for economic success and competitiveness. This alignment of public infrastructure development and business investment will only continue to spark growth and push the economy forward.

Resources: Embracing traditional and renewable strength

Rich in natural resources, Texas is known for its oil and gas — and for good reason. If Texas were a nation, it would be the sixth-largest oil producer⁹ in the world. But the state is also home to a thriving renewable energy sector focused on wind, solar and biomass.

In addition to being the nation’s top oil producer, Texas ranks first in wind generation capacity and second in biodiesel production.9 The stage is also set for continued growth: Currently, Texas benefits from $83 billion in capital investment in wind, solar and energy storage projects and $14.4 billion in solar energy.10 This commitment to both renewable and traditional energy sources helps ensure Texas will remain a global energy leader well into the future.

Putting the power of Texas to work

Together, these four Texas strengths have helped create an economic powerhouse built for stability and continued growth. Each one supports Texas’s fundamentals, which, in turn, drive long-term investment opportunity.

We wanted to give investors the opportunity to harness that potential, which is why we created ETFs that we believe are unique compared to other investment alternatives. Our funds are Texas’s only state-based ETFs, and Texas is currently the only state that has its own ETFs.¹

At Texas Capital, we see firsthand how these four strengths help our state’s businesses and communities thrive. Our state is filled with potential, and now we’ve made it easy to invest in Texas.

Have further questions?

To learn more about our ETF & Funds Management solutions and to speak with our sales team call us at 844.TCB.ETFS (844.822.3837).

¹Texas bank launches first state Exchange-Traded Fund to bolster local businesses. The Center Square.
²Business Climate. Texas Economic Development & Tourism.
³2023 Small Business Profile. U.S. Small Business Administration Office of Advocacy.
⁴Texas Trade & FDI. Texas Economic Development & Tourism.
⁵Texas Comptroller of Public Accounts Annual Cash Report.
⁶Texas economy rides wave of changing technology and diffusion of know-how. Federal Reserve Bank of Dallas.
⁷NVCA 2023 Yearbook. Data provided by Texas Capital PitchBook.
⁸Shaping the Future with Research and Innovation. Texas Higher Education Contributing Board.
⁹Target Industry Clusters. Texas Economic Development & Tourism.
¹⁰Texas Energy Industry. Texas Economic Development & Tourism.

Investors should carefully consider the investment objectives, risks and charges of the fund before investing. The prospectus contains this information and other information about the fund, and it should be read carefully before investing. Investors can obtain a copy of the prospectus by calling 844.TCB. ETFS (844.822.3837).

Investment and Market Risk. As with all investments, an investment in the Fund is subject to investment risk. Investors in the Fund could lose money, including the possible loss of the entire principal amount of an investment, over short or prolonged periods of time.
Index Tracking Risk. There is no guarantee that the Fund will achieve a high degree of correlation to the Index and therefore achieve its investment objective. The Fund may have difficulty achieving its investment objective due to fees, expenses (including rebalancing expenses), and other transaction costs related to the normal operation of the Fund. These costs that may be incurred by the Fund are not incurred by the Index, which may make it more difficult for the Fund to track the Index.
New Adviser Risk. The Adviser has not previously served as an adviser to a registered mutual fund or ETF. As a result, there is no long-term track record against which an investor may judge the Adviser and it is possible the Adviser may not achieve the Fund’s intended investment objective.
New Fund Risk. The Fund is new and does not have shares outstanding as of the date of this Prospectus. If the Fund does not grow large once it commences trading, it will be at greater risk than larger funds of wider bid-ask spreads for its shares, trading at a greater premium or discount to NAV, liquidation and/or a stop to trading. Any resulting liquidation of the Fund could cause the Fund to incur elevated transaction costs for the Fund and negative tax consequences for its shareholders.
Geographic Concentration Risk. Because the Fund and the Index will invest only in issuers headquartered in a particular geographic region, the Fund’s performance is expected to be closely tied to various factors such as social, financial, economic, and political conditions within that region. Events that negatively affect that region may cause the value of the Fund’s shares to decrease, in some cases significantly. As a result, the Fund may be more volatile than more geographically diverse funds.
Small Capitalization Companies Risk. Investments in securities of small-cap companies may be riskier, more volatile, and more vulnerable to economic, market and industry changes than investments in larger, more established companies. As a result, share price changes may be more sudden or erratic than the prices of other equity securities, especially over the short term. Small-cap companies often have less predictable earnings, more limited product lines, markets, distribution channels, or financial resources, and the management of such companies may be dependent on one or a few key people. The equity securities of small-cap companies are generally less liquid than the equity securities of larger companies.

Texas Capital Bank Wealth Management Services, Inc. d/b/a Texas Capital Bank Private Wealth Advisors (“PWA”), a wholly owned subsidiary of Texas Capital Bank serves as investment adviser to Texas Capital Funds Trust (a Delaware statutory trust formed in 2023 and registered as an open-end management investment company under the Investment Company Act of 1940) for its funds (the “Funds”) and is paid a fee for its services. Shares of the Funds are not deposits or obligations of, or guaranteed or endorsed by, Texas Capital Bank or its affiliates. The Funds are not insured by the FDIC or any other government agency. The Funds are distributed by Northern Lights Distributors, LLC, member FINRA/SIPC, which is not affiliated with Texas Capital Bank Private Wealth Advisors.

Not a Deposit. Not FDIC Insured. Not Guaranteed by the Bank. May Lose Value. Not Insured by any Federal Government Agency.

The fund is distributed by Northern Lights Distributors, LLC, member FINRA/SIPC.