Fixed-income investors have a couple of unique new ETF products to size up.

On August 10, Strive Asset Management launched its first set of fixed-income funds – Strive Enhanced Income Short Maturity ETF (BUXX) and the Strive Total Return Bond ETF (STXT) on the New York Stock Exchange (NYSE). These are the first fixed-income offerings from Strive, which has ten funds under management. 

STRXT is a core fixed-income fund that seeks to maximize total returns over a full market cycle. BUXX is an ultra-short bond fund that seeks to provide sustained enhanced income while also reducing price volatility and maintaining portfolio liquidity. Both actively-managed funds aim to pay out dividends on a quarterly basis. 

Strive promotes its products as being “for-profit” and “anti-ESG,” (an acronym for environmental, social, and corporate governance). The Ohio-based manager was established by Republican presidential nominee Vivek Ramaswamy in 2022. Matt Cole, a former portfolio manager at a California state pension fund, took over as CEO in May so Ramaswamy could focus on his political campaign.  

Strive claims to only invest in companies focusing exclusively on maximizing profits and ignoring “non-pecuniary factors” related to ESG risk factors. 

“Unlike our competitors, we are unapologetically committed to shareholder primacy and believe that the purpose of a for-profit company is to maximize long-run value to investors,” reads a statement from the firm’s website.

Big Name Founder 

Ramaswamy, a former hedge fund analyst and biotech executive with no political experience, is currently running for the Republican presidential nomination for the 2024 election. He has made a name for himself after releasing two books and becoming a regular commentator on Fox News.

According to RealClearPolitics, which aggregates and averages multiple national polls, Ramaswamy is currently at 6%, behind only former president Donald Trump (54%) and former Florida Governor Ron DeSantis (15%). That places him ahead of both former Vice President Mike Pence (5%) and former South Carolina Governor Nikki Haley (3%). 

Ramaswamy has won popularity in conservative circles for a policy platform focused on combatting the spread of leftist “woke” ideology. Forbes estimates his personal wealth to be around $600 million. He has pledged to a self-funded campaign, although it is unclear how much he will spend on his presidential bid. 

Strive funds may have gained from Ramaswamy’s rising political star. In the first ten months since launching its first fund, Strive has accrued over $750 million in total assets under management (AUM). However, analysis from Morningstar reports that capital flows into the anti-ESG space slowed dramatically in the first quarter of 2023.

It remains to be seen if this new investment theme has legs over the long term or if Ramaswamy’s popularity can continue to generate buzz around Strive as the presidential race stretches on.

BUXX has an expense ratio of 0.25% and is currently swapping hands near the $20 mark, while STRXT has an expense ratio of 0.49% and is currently trading around the same price. 

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