Without a detailed explanation, Strive Asset Management, the promising anti-ESG ETF management company, has delayed its US Technology ETF (STXT) launch. It is not available to outside investors for the time being. Strive probably needs to launch a series of exchange-traded funds to become larger and eventually reach profitability. It already has an impressive track record with its Strive US Energy ETF (DRLL), which has over $300 million in net assets.
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Strive’s new ETFs may have fewer net assets than its energy ETF. The Strive 500 ETF is based on tracking a specific measurement of the S&P 500. So far, its net asset total is $53 million. The energy ETF is more easily understood as an anti-ESG investment. Energy companies, particularly oil companies, are a frequent target of ESG proponents. Many investors find it harder to see how an S&P 500-based ETF fits Strive’s primary goal, although it has articulated the reasons.
Strive made the point that the delay would not be permanent. It told Citywire that the US Technology ETF would be launched “in due course.”
Strive’s visibility has been extraordinary given its size. Part of the reason is the wave of anti-ESG investing sentiment. Several states have said they will not use money management firms that invest based on pro-ESG standards. This already has cost these money managers billions of dollars in assets as state officials pull money from them.
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