On Wednesday, Strive Asset Management bolstered its ETF library with the launch of the Strive International Developed Markets ETF (STXI ).
STXI has a net expense ratio of 0.29%. The fund aims to track the total return performance of the Bloomberg Developed Markets ex US Large & Mid Cap Total Return Index.
The Bloomberg index tracks mid- and large-cap companies of developed market countries outside the United States. The index possesses exposure to a wide range of countries within its portfolio. However, the index has notably large exposure to Canada, the United Kingdom, France, and Canada.
Eligible securities for the index include both common stock and REITs from developed markets. Securities within the index have an average market cap of about $34 billion. As of April 30, 2024, the Index has notable exposure to the financial, industrial, healthcare, and consumer discretionary sectors.
Indexing Strategy
To track the performance of the index, STXI uses a passive indexing approach. By using indexing, STXI does not attempt to outperform the index, nor does it reposition defensively in instances of market downturn.
While the fund does not aim to outperform its index or take defensive positions, an indexing approach can still offer great benefits. Indexing can help mitigate costs and offer potentially stronger after-tax performance due to minimized portfolio turnover.
STXI’s investing approach generally uses a replication strategy in which the fund invests in all of the index’s securities in roughly the same proportion. However, the fund may pivot to a representative sampling strategy if it’s determined to be in the best interest of the fund. STXI will be rebalanced and reconstituted using the same schedule as the index.
Strive currently has 13 different ETFs listed in the United States. These funds currently represent over $1.5 billion in assets under management.
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