Ramaswamy's Strive rolls out direct indexing on Fidelity, Schwab platforms

Strive Asset Management, the firm that distinguished itself as a proudly anti-woke investment platform, has officially entered the direct indexing business.

On Tuesday, Strive announced that it has officially launched its direct indexing capabilities on the platforms of Fidelity Investments and Charles Schwab

Powered by Vestmark’s VAST technology, the solution new solution marks a pivotal expansion of Strive’s product suite, integrating tax loss harvesting with the firm's shareholder-focused corporate governance approach.

Direct indexing enables investors to mirror an index’s performance by owning individual stocks instead of investing through exchange-traded funds or mutual funds. Strive’s solution offers features such as enhanced portfolio customization, daily scanning for tax loss harvesting opportunities, and in-kind transfers from existing portfolios. It also emphasizes shareholder engagement, with full proxy voting coverage and corporate governance that eschews ESG and DEI constraints.

“Strive’s Direct Indexing focuses on the best financial outcome for the client and includes full proxy voting coverage and corporate engagement without regard to ESG or DEI constraints,” the firm stated.

Matt Cole, CEO of Strive, underscored the value proposition: “Ninety-seven percent of US large-cap companies had drawdowns of 10 percent or more at some point during the 2023 calendar year. In 2022, the number was 100 percent. To be able to harvest those losses on a daily basis while also receiving the pro-shareholder governance that Strive provides is something investors cannot get anywhere else.”

Strive was founded in 2022 by Vivek Ramaswamy, who has moved on and has been announced by President-elect Donald Trump to co-lead the Department of Government Efficiency alongside Elon Musk.

Since then, the firm has grown to manage more than $1.8 billion in assets, positioning itself as a challenger to major financial institutions by advocating for what it calls "unapologetic capitalism," focused on maximizing shareholder value.

Earlier this month, Strive announced plans to launch its own wealth management business, offering tailored services including the integration of Bitcoin into client portfolios.

Vestmark’s CEO Karl Roessner highlighted the potential impact of the partnership. 

“Vestmark is thrilled to partner with Strive. Our partnership will support Strive's evolution into direct indexing where they can serve a broader array of clients seeking an investment approach focused on shareholder advocacy.”

Vestmark, which supports over $1.5 trillion in assets and 5.5 million accounts, provides tools for financial advisors to efficiently create personalized, tax-optimized portfolios. Its tax transition service further simplifies the tax-efficient migration of legacy assets, aligning with Strive’s focus on delivering precision-driven investment solutions.