Strive Asset Management is introducing direct indexing capabilities on its 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 announcement.
“Strive’s Direct Indexing focuses on the best financial outcome for the client and includes full proxy voting coverage and business involvement from our internal corporate governance team, without regard to ESG or DEI restrictions,” the press release said.
The new service, which will be powered by Vestmark’s VAST technology, aims to provide daily collection of tax losses and in-kind transfers from existing equity portfolios, while following the company’s strategy to address environmental, social and governance factors to be avoided in his investment approach. The initiative comes as investor interest in ESG has declined.
Matt Cole, CEO of Strive, noted in the press release that “97% of U.S. large-cap companies had losses of 10% or more at some point during the 2023 calendar year. In 2022 this was 100%. To be able to harvest those losses on a daily basis while receiving the pro-shareholder governance that Strive provides is something that investors cannot get anywhere else.”
Strive was co-founded in 2022 by Vivek Ramaswamy, who was recently appointed 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 range includes $341 million Strive US Energy ETF (DRLL) and the $78 million Target US Semiconductor ETF (SHOC). Unlike traditional ETFs that may consider environmental impact or workplace diversity in their investment decisions, these funds focus solely on financial impact metrics and shareholder returns.
While Strive’s ETFs often hold similar securities to other sector funds, they differ in their proxy voting policies. The company votes against ESG proposals at shareholder meetings, prioritizing what it calls shareholder capitalism over the interests of stakeholders.
Read more: What is an anti-ESG ETF? Within the Conservative Investment Movement
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