You’ve heard about state municipal bond funds and single country ETFs, but what about city ETFs?
A new fund called the Nashville Area ETF (NASH) is trying to reignite a trend of regional investing.
The fund is linked to the LocalShares Nashville Index, which is composed of publicly traded U.S. companies that have corporate headquarters in the Nashville, Tenn. region.
Nashville was the 25th largest U.S. city, with a population of 624,000, as of 2012.
Although Nashville is renowned as a music recording center, health care is actually its largest industry sector. Nashville is home to more than 300 health care companies, including Hospital Corporation of America (HCA), the world’s largest private operator of hospitals.
Currently, NASH owns 25 companies that range from discount retailer Dollar General to prison manager Corrections Corporation of America. Around 50% of the fund is comprised of healthcare companies.