Strive Asset Management has introduced its second ETF, a broad US large-cap equity fund that carries the firm’s hallmark anti-ESG disposition.
The ETF delivers a post-ESG mandate to US large-cap equities.
The Strive 500 ETF (STRV US) has been listed on NYSE Arca with an expense ratio of 0.0545%.
The fund is linked to the Solactive GBS United States 500 Index which consists of the 500 largest stocks listed in the US weighted by float-adjusted market capitalization.
STRV’s plain vanilla reference index and competitive expense ratio make it a reasonable alternative to well-established US large-cap equity ETFs such as the $350 billion SPDR S&P 500 ETF Trust (SPY US), which has an expense ratio of 0.0945%, or the $290bn iShares Core S&P 500 ETF (IVV US) and $260bn Vanguard S&P 500 ETF (VOO US), both of which are priced at 0.03%.
Where Strive aims to stand apart from its competitors, however, is through its corporate governance practices, including voting proxy shares and proactively engaging with management teams and boards.
Delivering a ‘post-ESG’ mandate, Strive aims to unlock value across all corporations in STRV’s portfolio by mandating companies to focus on profits over politics.
The fund has come to market approximately one month after Strive debuted its first anti-ESG ETF – the Strive US Energy ETF (DRLL US). DRLL provides broad exposure to the US energy sector while voting proxy shares and proactively engaging with management teams and boards to help firms “maximize long-run profits over short-run social fads.”
Despite having an expense ratio of 0.39%, which is relatively expensive for a broad US energy fund, DRLL has had a successful debut with its assets under management approaching $350 million, a sign that Strive’s anti-ESG ethos has chimed with some investors.