The Nashville Area ETF (NYSE: NASH) Will Enable Investment in Nashville's Diversified Base of Publicly Traded Companies With One Cost-Efficient Product
NASHVILLE, TN--(Marketwired - Jul 26, 2013) - LocalShares, Inc. today announced that the Nashville Area ETF (
LocalShares, Inc., the investment adviser of the Nashville Area ETF, was founded by Nashville business executives Elizabeth Seigenthaler Courtney, CEO of Seigenthaler Public Relations, Inc., William S. Decker, CEO of Decker Wealth Management, LLC and Michael D. Shmerling, chairman of XMi Holdings, to provide financial services products focused on the potential of geographic locations, such as American cities, as demonstrated by the publicly-traded companies that surround them.
"LocalShares has spent several years creating this concept, as well as developing our selection formula to carefully pave the way to launch the Nashville Area ETF," said Shmerling, chairman of LocalShares. "We believe that communities like Nashville provide significant value-add to the companies that are headquartered here. In middle Tennessee, these attributes include low taxes, a strategic location and a state where people have the right to work. Collectively, this is a solid group of diverse companies and we look forward to bringing them together in Nashville Area ETF."
The Nashville Area ETF tracks the LocalShares Nashville Index, which uses an algorithm to identify and then weight the companies to be included in the index. The formula accounts for positive earnings, momentum and valuation metrics. In order to be included in the portfolio, companies must be headquartered in Davidson County or its surrounding counties and must meet certain requirements including, but not limited to:
According to Courtney, the concept of the city-based ETF was developed based on the premise that every city's economy functions as its own ecosystem with unique resources, legislation and demographics inextricably interwoven. In developing a plan for a launch city, LocalShares concluded that Nashville met the fundamental criteria necessary for the concept. Nashville continues to collect accolades; it has been called America's healthcare hub by the Wall Street Journal, was the #1 market in the country (over one million persons) for job growth in 2012 according to the Bureau of Labor Statistics, and has regularly placed high on national lists for most business friendly cities. Nashville maintains a high quality of life that sustains a productive and energized workforce. The area is further bolstered by the rich environment of research and ideas largely in part to 18 colleges and universities that call the city home.
"I welcome the creation of the first city-based exchange-traded fund to Nashville, which shines a spotlight on the city's diverse economy and attractiveness as a location for corporate headquarters," Nashville Mayor Karl Dean said. "I am proud of the recognition this ETF brings to the strength of our region and the publicly-traded companies in our area. This further validates that Nashville is one of the top markets in the country for job creation, ease of doing business and quality of life."
Based on the current composition of the LocalShares Nashville Index, the Nashville Area ETF is expected to include 24 companies at its list date that had more than $94 billion in revenue in 2012 and support more than 29,000 jobs in the Nashville area, including:
|ACHC||Acadia Healthcare Company, Inc.|
|BKD||Brookdale Senior Living, Inc.|
|CYH||Community Health Systems Inc|
|CXW||Corrections Corporation of America|
|CBRL||Cracker Barrel Old Country Store, Inc.|
|DK||Delek US Holdings, Inc.|
|DG||Dollar General Corporation|
|HCA||HCA Holdings Inc|
|HR||Healthcare Realty Trust Inc.|
|LPNT||LifePoint Hospitals, Inc.|
|NHI||National Health Investors, Inc.|
|NOR||Noranda Aluminum Holding Corp|
|PNFP||Pinnacle Financial Partners, Inc.|
|RHP||Ryman Hospitality Properties Inc|
|VHS||Vanguard Health Systems Inc|
"LocalShares is an innovative opportunity to spotlight our regional economy," said Ralph Schulz, president and CEO of the Nashville Area Chamber of Commerce. "The Nashville area has realized significant growth with our GDP exceeding $87 billion in 2011, up 6.05% from the previous year. We feel we are ideally situated for continued growth when you consider our geographical location and that Nashville is one of only a dozen major U.S. cities connected to three major interstates. These attributes along with our competitive tax structure and strong workforce have allowed for a diverse base of publicly traded headquartered companies, and our competitive economic development and recruiting programs have us poised for further growth."
Designed to track specific market indexes, exchange-traded funds (ETFs) combine the broad diversification of a mutual fund with the trading flexibility of a stock. In the simplest terms, ETFs are funds that generally track a particular index. ETFs combine the range of a diversified portfolio with the simplicity of trading a single stock. Investors can purchase ETF shares on margin, short sell shares, or hold for the long term.
Additional information about the LocalShares Nashville Index and its methodology can be found at www.solactive.com/en. For more information on the Nashville Area ETF, visit www.NashvilleETF.com or call 1-855-480-NASH (6274).
About LocalShares, Inc.
LocalShares establishes exchange traded funds (ETFs) that include equities based within certain targeted regional markets. The Nashville Area ETF, launched in 2013, is the company's first city-based ETF and includes publicly-traded companies based in and around Nashville, Tennessee.
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus, which may be obtained by visiting www.NashvilleETF.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Diversification may not protect against investment loss. The Fund will invest substantially all of its assets in the securities of companies that have their headquarters or principal place of business located in the Nashville, Tennessee region. The Fund may be impacted by events or conditions affecting the region to a greater extent than a fund that did not focus its investments in that manner. The Fund is expected to invest a relatively large percentage of its assets in the securities of small-capitalization companies. The securities of small-capitalization companies may be less mature compared to larger companies and the value of such securities may be more volatile than those of larger issuers. The fund is expected to invest a relatively large percentage of its assets in the healthcare sector and negative performance of the sector will negatively impact the fund.
Holdings are subject to change. Current and future holdings are subject to risk.
LocalShares serves as the investment adviser, and Decker Wealth Management serves as the sub adviser to the fund. The Fund is distributed by SEI Investments Distribution Co., which is not affiliated with LocalShares or any of its affiliates.