June 24 (Reuters) - BlackRock ( BLK ) on Tuesday launched a Texas-focused

exchange-traded fund, as the asset manager aims to tap into the state's growing

reputation as a magnet for companies, capital and jobs in the United States.

The Lone Star State's low taxes, business-friendly policies as well as growing tech and

energy sectors have attracted investors and asset managers looking to tap into its long-term

growth potential.

BlackRock ( BLK ) said the iShares Texas Equity ETF will invest in companies headquartered in the

state. Such funds are popular for offering low-cost, tax-efficient access to regional or

sector-specific growth in a single trade.

The world's largest asset manager said Texas is home to one in ten publicly traded U.S.

companies, and that more than 300 firms have relocated their headquarters to the state since

2015.

Elon Musk-led Tesla and SpaceX, as well as tech giants Oracle and Hewlett

Packard Enterprise ( HPE ), have moved to the state in recent years.

"TEXN presents a new opportunity ... to capitalize on Texas' twin engines of business and

population growth," said BlackRock's ( BLK ) Head of the Americas Client Business Joe DeVico.

The Texas Stock Exchange, a new venture backed by financial giants including BlackRock ( BLK ),

Citadel Securities and Charles Schwab ( SCHW ), is targeting a 2026 launch, reflecting Wall

Street's growing interest in the state.

The asset management giant has had a complicated relationship with officials in

Republican-leaning states in recent years over its climate-focused investment policies.

Texas lawmakers accused the firm of boycotting the fossil fuel industry, which BlackRock ( BLK )

denied, citing continued investments in energy companies.

Earlier this month, Texas removed BlackRock ( BLK ) from a list of companies it viewed as hostile to

the energy sector, after the firm scaled back several key climate commitments.

BlackRock ( BLK ) said it manages nearly $380 billion in assets tied to public companies in Texas,

including about $115 billion in the state's oil and gas sector, making it one of the largest

investors in the region.