For years there have been ETFs that invest in niche
industries, single countries and innovative cross sections of the
A groundbreaking fund provider has taken that targeted focus
one step further by creating the first city-based ETF in the
country -- and this month they are celebrating a big
The Nashville Area ETF (NYSE:
) enables investors to benefit from the diversified base of
publicly-traded companies in Nashville, Tennessee. NASH is
celebrating its one-year anniversary after the fund debuted in
August 2013 and has declared a shareholder meeting to highlight
How To Invest Like A Billionaire Using ETFs
Currently the Nashville Area ETF has just $7 million dedicated
to 23 holdings, which include businesses such as Dollar General
) and Healthcare Realty (NYSE:
). To be included in the index, companies must have market
capitalizations more than $100 million and an average daily
volume of at least 50,000 shares traded.
"Certain U.S. regions provide strong economic opportunity for
the companies based there, which is why corporate relocation to
these markets continues to climb," said William S. Decker, chief
investment officer of LocalShares.
"Nashville is one such economy benefitting from the markedly
low taxes of the state of Tennessee and other attributes," he
added. "We are pleased with the performance of the fund, which we
believe reflects both the vitality of this specific economy and
the fact that geographic ecosystems like Nashville add
competitive value to companies based there."
Companies are weighted within the portfolio based on a
proprietary formula that takes into account positive earnings and
valuation metrics. NASH charges a net expense ratio of 0.49
percent as well.
At the one-year mark, this ETF gained 14.60 percent in total
return. That gain closely mirrors the 15.01 percent increase in
the SPDR S&P 500 ETF (NYSE:
) over the same time period.
The big question for NASH and other city-focused ETFs moving
forward is whether investors will welcome these local markets or
find them too narrow for investable assets.
To date NASH has proven that it can keep up with the broad
market, and future ETFs may be able to crack the code of appeal
to a wider audience.
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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