Strive Asset Management has launched the firm’s first fixed income ETFs.
The Strive Enhanced Income Short Maturity ETF (BUXX ) and the Strive Total Return Bond ETF (STXT ) were listed on the NYSE on August 10. The two actively managed ETFs mark the firm’s first foray into the fixed income space.
The Ohio-based asset manager is best known for its “anti-woke” strategies. The firm was launched in 2022 by Vivek Ramaswamy with the firm’s approach based on the idea of “excellence capitalism.” Furthermore, the firm considers itself an activist investor, investing in companies that focus on maximizing profits and eschew anything else.
STXT provides core fixed income exposure seeking to maximize total return over a full market cycle, while BUXX is an ultra-short bond fund with a duration of one year or less seeking to provide enhanced income while minimizing price volatility, according to a statement from the firm.
STXT charges 49 basis points, and BUXX charges 25 basis points.
The two active funds are managed by Matt Cole, CIO and CEO. Cole, who joined Strive in February from CalPERS, took on the added role of CEO in May following Vivek Ramaswamy resigning in order to campaign for the Republican nomination for president.
“The launch of these funds comes at a time when the investment community is increasingly aware of the implications of ESG factors on fixed income investments,” the firm said in a statement.
Anti-ESG Performance
Strive’s first ETF, the Strive U.S. Energy ETF (DRLL ), launched in August 2022. The firm brought its “anti-woke” strategy to large-caps the following month, launching the Strive 500 ETF (STRV ).
While a large number of investors immediately embraced ESG strategies, some have questioned if an ESG lens could diminish performance. However, it’s worth noting that the S&P 500 ESG index is outpacing its parent index and STRV year-to-date. The ESG benchmark is beating STRV by 83 basis points, as of August 10.
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