by Jack McEvoy
Strive Asset Management’s anti-activist, energy exchange-traded fund (ETF) raked in over $60 million in funds in its first two days of trading, according to the company’s website.
Strive’s U.S. energy index fund ($DRLL), which invests heavily in fossil fuels in an effort to combat environmentally focused investing, launched Tuesday on the New York Stock Exchange (NYSE) and was one of the exchange’s largest launches of its kind, according to a company letter to investors. Strive hopes that the early success of the fund will help “unlock” value in the domestic energy sector by mandating firms to focus on “profits over politics,” according to the company’s website.
“Large asset managers have mandated energy companies to produce less oil and gas which has led to a generational energy crisis” Vivek Ramaswamy, founder of Strive, told CNBC. Energy producers can halt the crisis if they are “liberated” from ESG mandates, according to Vivek.
The fund’s significant gains come amid a recent prevalence of fiduciary efforts to enforce environmental, social and corporate governance (ESG) standards upon funds in order to stop investments in fossil fuels and reach international net-zero emissions targets. Strive aims to make $DRLL the largest energy index fund in the nation and if the company’s strategy is effective, it will be able to use its shareholder voting power to encourage companies to press forward with drilling as well as other forms of oil and gas exploration.
Amid recent allegations that investment management companies do not always focus solely on making their clients money above ESG standards, Strive states that its sole purpose is to maximize its clients’ investments. Non-activism-focused investment portfolios perform better than climate-focused ESG funds, according to The Financial Times.
ESG funds are currently struggling, according to Bloomberg. In 2022, the category received approximately $4 billion in funding, a significant decrease after two consecutive years of receiving more than $30 billion.
Strive Asset Management did not immediately respond to the Daily Caller News Foundation’s request for comment.
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Jack McEvoy is a reporter at Daily Caller News Foundation.
Photo “Anson Frericks” by Strive Asset Management. Photo “Vivek Ramaswamy” by Strive Asset Management. Background Photo “New York Stock Exchange” by Carol M. Highsmith.
