Strive in Direct Indexing Pact With Fidelity, Schwab

Strive Asset Management is rolling out direct indexing capabilities on 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 corporate engagement from our in-house corporate governance team without regard to ESG or DEI constraints,” the release 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 equity portfolios, while following the firm’s strategy of avoiding environmental, social and governance factors in its investment approach. The initiative comes as investor interest in ESG has been sagging.

Strive CEO Matt Cole noted in the release that “97% of U.S. Large Cap companies had drawdowns of 10% or more at some point during the 2023 calendar year. In 2022, the number was 100%. To be able to harvest those losses on a daily basis while also receiving the pro-shareholder governance that Strive provides is something investors cannot get anywhere else.”

Expanding Beyond Traditional Products

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 firm’s ETF lineup includes the $341 million Strive U.S. Energy ETF (DRLL) and the $78 million Strive U.S. Semiconductor ETF (SHOC). Unlike traditional ETFs that may consider environmental impact or workplace diversity in their investment decisions, these funds focus purely on financial impact metrics and shareholder returns.

While Strive’s ETFs often hold similar securities as other sector funds, they differ through their proxy voting policies. The firm votes against ESG proposals at shareholder meetings, prioritizing what it calls shareholder capitalism over stakeholder interest.

Read More: What Is an Anti-ESG ETF? Inside the Conservative Investment Movement