Strive Asset Management Launches Emerging Markets Ex-China ETF (NYSE: STXE) Amid Growing U.S.-China Tension
February 02 2023 - 7:00AM
Business Wire
New fund launches with Day 1 investment of $100
million from a leading institutional investor
Strive reaffirms commitment not to build its
own asset management business in China to avoid political conflicts
of interest in serving U.S. clients
Strive Asset Management (“Strive”) launches its eighth index
fund today: the Strive Emerging Markets Ex-China ETF (STXE). STXE
is a passively managed ETF that seeks exposure to large- and
mid-capitalization equity securities across twenty-four emerging
market economies, excluding China, offering investors exposure to
emerging markets while minimizing China-related risks. Strive
believes that China’s autocratic regime, economic vulnerabilities,
and military posture towards its neighbors, including Taiwan,
create meaningful risks for global investors. Strive believes that
other large environmental, social, and governance (ESG) promoting
financial institutions with asset management businesses in China
are unable to adequately educate U.S. clients about these risks due
to their conflicts of interests in China.
Strive is launching STXE with $100 million from a leading
institutional investor. With the launch of STXE, Strive also
expands its product offerings to include international exposure to
its clients. Strive will advance its pro-excellence agenda by
mandating ex-U.S. companies to focus on excellence over political
or social agendas, building on Strive’s approach to shareholder
engagement and proxy voting in the U.S.
“ESG-promoting asset managers are vocal about supposed
investment risks relating to board diversity and climate change,
yet they are conspicuously silent about one of the most proximal
investment risks that all investors face: the behaviors of
Communist China,” notes Vivek Ramaswamy, Executive Chairman and
Co-Founder of Strive. “It’s no mystery why: they have deep
conflicts of interest in China that prevent them from being as
vocal about these issues or from imposing the same ESG constraints
onto Chinese companies as they do for U.S. companies. Strive
refuses to build an asset management business in China to avoid
these conflicts of interest so that we can better serve our U.S.
clients as a vocal fiduciary advocating for excellence.”
“With the launch of STXE, we aim to offer our clients the
opportunity to invest internationally,” said Anson Frericks,
President and Co-Founder of Strive. “We are launching STXE at a
moment of escalating cross-Straits tensions between the U.S.,
China, and Taiwan, and we expect these tensions to worsen during
the course of Xi Jinping’s unprecedented third term with a rising
risk of conflict surrounding Taiwan.”
About STXE: Strive Emerging Markets Ex-China ETF (NYSE:
STXE, expense ratio: 0.32%) seeks to track the total return
performance, before fees and expenses, Bloomberg Emerging Market ex
China Large & Mid Cap Index tracks large and mid-capitalization
equity securities across 24 emerging market economies, excluding
China. The benchmark does not pursue any environmental, social,
governance (ESG) objectives. Investors can learn more at
http://www.strivefunds.com/STXE.
About Strive Asset Management: Strive is an Ohio-based
firm whose mission is to restore the voices of everyday citizens in
the American economy by leading companies to focus on excellence
over politics. The company was co-founded by Vivek Ramaswamy and
Anson Frericks in 2022. Learn more at www.strive.com.
IMPORTANT INFORMATION
Investors should consider the investment objectives, risks,
charges and expenses carefully before investing. For a prospectus
or summary prospectus with this and other information about the
Fund, please call 855-427-7360 or visit our website at
www.strivefunds.com. Read the prospectus or summary prospectus
carefully before investing.
Investments involve risk. Principal loss is possible.
Emerging Markets Risk. Investments in securities and
instruments traded in developing or emerging markets, or that
provide exposure to those securities or markets, can involve
additional risks relating to political, economic, or regulatory
conditions not associated with investments in U.S. securities and
instruments. Foreign Investment Risk. Returns on investments
in foreign securities could be more volatile than, or trail the
returns on, investments in U.S. securities. Depositary Receipt
Risk. The risks of investments in depositary receipts,
including American Depositary Receipts (“ADRs”), European
Depositary Receipts (“EDRs”), and Global Depositary Receipts
(“GDRs”), are substantially similar to Foreign Investment Risk.
Investment Risk. When you sell your Shares of the Fund, they
could be worth less than what you paid for them. The Fund could
lose money due to short-term market movements and over longer
periods during market downturns. Large Capitalization Companies
Risk. Large-capitalization companies may trail the returns of
the overall stock market. Large-capitalization stocks tend to go
through cycles of doing better – or worse – than the stock market
in general. Mid-Capitalization Companies Risk. The
securities of mid-capitalization companies may be more vulnerable
to adverse issuer, market, political, or economic developments than
securities of larger-capitalization companies. The securities of
mid- capitalization companies generally trade in lower volumes and
are subject to greater and more unpredictable price changes than
larger capitalization stocks or the stock market as a whole. Some
mid-capitalization companies have limited product lines, markets,
and financial and managerial resources and tend to concentrate on
fewer geographical markets relative to larger capitalization
companies. Real Estate Investment Trusts (REITs) Risk. A
REIT is a company that owns or finances income-producing real
estate. Through its investments in REITs, the Fund is subject to
the risks of investing in the real estate market, including
decreases in property revenues, increases in interest rates,
increases in property taxes and operating expenses, legal and
regulatory changes, a lack of credit or capital, defaults by
borrowers or tenants, environmental problems and natural disasters.
Investments in REITs may be volatile. REITs are pooled investment
vehicles with their own fees and expenses and the Fund will
indirectly bear a proportionate share of those fees and expenses.
Concentration Risk. In following its methodology, the Index
from time to time maybe concentrated to a significant degree in
securities of issuers located in a single industry or group of
industries. To the extent that the Index concentrates in the
securities of issuers in a particular industry or group of
industries, the Fund also may concentrate its investments to
approximately the same extent. By concentrating its investments in
an industry or group of industries, the Fund may face more risks
than if it were diversified broadly over numerous industries or
groups of industries. If the Index is not concentrated in a
particular industry or group of industries, the Fund will not
concentrate in a particular industry or group of industries.
Passive Investment Risk. The Fund is not actively managed
and the Sub-Adviser will not sell any investments due to current or
projected underperformance of the securities, industries or sector
in which it invests, unless the investment is removed from the
Index, sold in connection with a rebalancing of the Index as
addressed in the Index methodology, or sold to comply with the
Fund's investment limitations (for example, to maintain the Fund's
tax status). The Fund will maintain investments until changes to
its Index are triggered, which could cause the Fund's return to be
lower than if the Fund employed an active strategy. Equity
Investing Risk. An investment in the Fund involves risks
similar to those of investing in any fund holding equity
securities, such as market fluctuations, changes in interest rates
and perceived trends in stock prices. The values of equity
securities could decline generally or could underperform other
investments. Index Calculation Risk. The Index relies on
various sources of information to assess the criteria of issuers
included in the Index, including fundamental information that may
be based on assumptions and estimates. New Fund Risk. The
Fund is a recently organized management investment company with
limited operating history. As a result, prospective investors have
a limited track record or history on which to base their investment
decision.
ESG investing is defined as utilizing environmental, social, and
governance (ESG) criteria as a set of standards for a company’s
operations that socially conscious investors use to screen
potential investments.
Strive Asset Management and Strive ETFs are not affiliated with
Quasar Distributors, LLC.
The Strive ETFs are distributed by Quasar Distributors, LLC.
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