Strive for direct indexing pact with Fidelity and Schwab


Strive launches direct indexing on Fidelity and Schwab platforms
Strive launches direct indexing on Fidelity and Schwab platforms

Strive Asset Management is rolling out direct indexing capabilities on the Fidelity Investments and Charles Schwab platforms, allowing the anti-ESG investment firm to reach millions of new investors through two of the industry’s largest retail brokerages, according to a company advertisement.

“Strive’s direct indexing focuses on the best financial outcome for the client and includes full coverage of proxy voting and corporate engagement from our internal corporate governance team without regard to ESG or DEI limitations,” the statement said. .

The new service, which will be powered by Vestmark’s VAST technology, aims to provide daily tax-loss harvesting and in-kind transfers from existing stock portfolios, while following the company’s strategy of avoiding environmental, social and security factors. governance in your investment approach. The initiative comes at a time when investor interest in ESG has been declining.

Strive CEO Matt Cole noted in the statement that “97% of U.S. large-cap companies had declines of 10% or more at some point during calendar year 2023. In 2022, the figure It was 100%. Being able to reap those losses on a daily basis while also receiving the pro-shareholder governance that Strive provides is something investors can’t get anywhere else.”

Co-founded in 2022 by Vivek Ramaswamy, who was recently tapped to lead President-elect Donald Trump’s Department of Government Efficiency (DOGE) alongside Elon Musk, Strive has grown to manage $1.7 billion in assets, the company said.

The company’s ETF line includes $341 million. Strive US Energy ETF (DRLL) and the 78 million dollars Strive US Semiconductor ETF (SHOC). Unlike traditional ETFs that may consider environmental impact or workplace diversity in their investment decisions, these funds focus exclusively on financial impact metrics and shareholder returns.

While Strive ETFs typically have similar holdings to other funds in the sector, they are differentiated by their proxy voting policies. The firm votes against ESG proposals at shareholder meetings, prioritizing what it calls shareholder capitalism over stakeholder interests.

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Read more: What is an anti-ESG ETF? Inside the conservative investment movement

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