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New "Oklahoma" ETF Registers; Yes, the State; No, We're Not Joking
M*_Jeffrey
03-03-2008, 5:39 PM | Post #2493954 |
4 Replies
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The "OOK", should it live to see the light of day, would track an index consisting of publicly-traded companies headquartered in the Sooner state. Based on a quick search of our database, it would appear that the top-3 names--Devon Energy, Chesapeake Energy, and Williams Companies--would account for nearly two-thirds of the index alone. Judging from our industry-classification scheme, the index will be dominated by oil, gas, and pipeline-related firms (they soak-up 90%+ of Oklahoma-headquartered firms' market-cap). Believe it or not, this isn't the first fund of its kind, as XShares registered a raft of ETFs that target single states ("StateShares"). Those funds remain marooned in the registration queue. These are really dumb ideas that seem to play on emotions (i.e., the investor that has a bias to familiar names) or just plain misinformation (i.e. the investor that doesn't realize the degree to which these firms do business the world over). Let's hope they never trade.
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Re:New "Oklahoma" ETF Registers; Yes, the State; No, We're Not Joking
Super_Snark
03-03-2008, 7:06 PM | Post #2493990
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 M*_Jeffrey: The http://www.sec.gov/Archives/edgar/data/1428316/000095013408003962/d54570nv1a.htm">"OOK", should it live to see the light of day, would track an index consisting of publicly-traded companies headquartered in the Sooner state. These are really dumb ideas that seem to play on emotions (i.e., the investor that has a bias to familiar names) or just plain misinformation (i.e. the investor that doesn't realize the degree to which these firms do business the world over). Let's hope they never trade.
Hey! They can't be any dumber ideas than the SCARX or the islamic values mutual funds. I really hope OOK will see the light of day and trade. The results might be amusing. GO SOONERS!
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Re:New "Oklahoma" ETF Registers; Yes, the State; No, We're Not Joking
mth5221
03-05-2008, 10:04 PM | Post #2494704
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I agree that "state" ETFs are probably a bad idea. That said, I would remind everyone that George Mairs and lately Bill Frels have run a very successful mutual fund, Mairs and Power Growth Fund (MPGFX), that has always consisted of about 90% Minnesota companies... albeit with a much wider diversification of companies compared to the proposed OOK.
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Re:Re:New "Oklahoma" ETF Registers; Yes, the State; No, We're Not Joking
M*_Jeffrey
03-06-2008, 8:49 AM | Post #2494780
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mth5221: I agree that "state" ETFs are probably a bad idea. That said, I would remind everyone that George Mairs and lately Bill Frels have run a very successful mutual fund, Mairs and Power Growth Fund (MPGFX), that has always consisted of about 90% Minnesota companies... albeit with a much wider diversification of companies compared to the proposed OOK.
Point taken. You could probably say the same, to a lesser degree, of Ariel, which tends to be a bit of a homer as well, Chicago being Rogers' favorite hunting ground. Yet, there are some pretty major differences, not least of which is the fact that neither Mairs nor Ariel are passively managed. Also, more fundamentally, I tend to think that these are just anomalies. If investors were to blindly cast their lot with the firms in their local area, my strong suspicion is that the outcome wouldn't be all that happy for many of them. Couple that with the fact that we've actually advanced beyond the agrarian age, when commerce was presumably much more-provincial in nature, and these strategies seem all the more absurd. What, for instance, does Abbott Laboratories have to do with Illinois? Yeah, they're based in the northern suburbs. But they do business the world over. So, I ask again--what does Illinois have to do with it?
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Re:Re:New "Oklahoma" ETF Registers; Yes, the State; No, We're Not Joking
weiwentg
03-10-2008, 9:17 PM | Post #2496448
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mth5221: I agree that "state" ETFs are probably a bad idea. That said, I would remind everyone that George Mairs and lately Bill Frels have run a very successful mutual fund, Mairs and Power Growth Fund (MPGFX), that has always consisted of about 90% Minnesota companies... albeit with a much wider diversification of companies compared to the proposed OOK.
Minnesota has always been known as an industrial state. 3M once stood for Minnesota Mining and Manufacturing, for example. Oklahoma ... where the heck is Oklahoma, anyway?
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