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Strive Asset Management has rolled out four new index-tracking US equity ETFs that utilize corporate governance practices to unlock value by mandating the funds’ underlying companies to focus on profits over politics.
Strive utilizes its vote and its voice to mandate US companies to focus on profits above any social or political agenda.
Three of the new listings target growth, value, or dividend-growth stocks within the large/mid-cap universe, while the fourth fund provides broad exposure to the small-cap segment.
Listed on Nasdaq, they are the Strive 1000 Growth ETF (STXG US), Strive 1000 Value ETF (STXV US), Strive 1000 Dividend Growth ETF (STXD US), and the Strive 2000 ETF (STXK US).
STXG, STXV, and STXD come with expense ratios of 0.18%, while STXK is priced at 0.35%.
The Strive 1000 Growth ETF and Strive 1000 Value ETF track the Bloomberg US 1000 Growth Index and Bloomberg US 1000 Value Index, respectively.
Each index comprises 70% of the securities from the largest 1,000 US-listed equities, selecting those with the strongest growth characteristics (based on higher forecasted growth, higher valuations, lower earnings yield, and lower dividend yield) or value characteristics (based on higher earnings yield, higher dividend yield, lower forecasted growth, and lower valuations). Constituents are weighted by modified float-adjusted market capitalization – each index includes the top 30% of securities at their full weight and the next 40% of securities at a decreasing linear scale.
The Strive 1000 Dividend Growth ETF, meanwhile, is linked to the Bloomberg US 1000 Dividend Growth Index which includes stocks from the Bloomberg US 1000 Growth Index that have increased their dividend payments for at least five consecutive years. Eligible firms must have five-year dividend growth rates greater than the average of the parent index. Constituents are weighted by float-adjusted market cap.
Finally, the Strive 2000 ETF tracks the Bloomberg US 2000 Index which consists of the 2,000 largest securities outside of the large and mid-cap Bloomberg US 1000 Index. Constituents are weighted by float-adjusted market capitalization.
While there are numerous well-established US equity ETFs that provide similar exposures as the new listings, Strive aims to stand apart from its competitors through its corporate governance practices, including voting proxy shares and proactively engaging with management teams and boards.
According to Strive, the largest asset managers are exerting staggering influence on nearly all public companies, leveraging their clients’ money to advocate for political and social agendas that Strive believes most of their clients actually disagree with.
Strive’s products, in contrast to divesting in “bad acting” companies, fully replicate their broad market indices while using the firm’s vote and voice to maximize the financial interests of their clients, with no “mixed motives.”
Strive offers a further three “profits over politics” US equity ETFs targeting large-caps, energy stocks, and semiconductor companies.
Read More: Strive adds four new “profits over politics” US equity ETFs | ETF Strategy