Investment: return instead of sustainability: These investors don't give a damn about the zeitgeist

Investment Yield instead of sustainability: These investors don’t give a damn about the zeitgeist

Sustainable and green? nothing there In the United States, an investment company has committed itself to loose gun laws and tough immigration policies. These anti-sustainability investors are extremely successful.

Investors who invested their money in a small index fund (ETF) with the ticker abbreviation EGIS last year can look back with satisfaction on 2021. The fund has grown strongly in the past twelve months, rising by more than 27 percent. The product of the small asset manager 2nd Vote Advisers thus performed better than the broad US stock index S&P 500. A success story.

Nevertheless, EGIS may not be suitable for every investor. Because the fund with the long title “Society Defended ETF” not only attracts with returns, but also with a mission. It is made up of shares in companies that explicitly advocate for loose gun laws and tough immigration policies. (You can find out here what opportunities devilish stocks offer private investors.)

On the other hand, companies that adapt to the liberal zeitgeist or otherwise emulate the increasingly widespread sustainability initiatives of the financial industry have no chance of being accepted. The ETF’s top 10 positions include retail chain Costco, media company Fox, pharmaceutical giant Regeneron and die Investment bank Goldman Sachs. Unlike the widespread ETFs, for example on the

MSCI World, with special ETFs like you also offered by 2nd Vote Advisers, tailor-made indices built according to special requirements, which the ETF then maps. They are more like actively managed funds than the usual index funds, which passively follow a generally observed index.

Making money with abortion opponents

EGIS is not the only fund that 2nd Vote Advisers is looking to generate returns on. A second ETF from the company invests only in companies that at least largely avoid the issue of abortion or explicitly reject women’s right to abortion. Here, the shares of the semiconductor manufacturer Lam Research , the hardware store chain Home Depot and the Cloud Computing Service Provider Service Now the top group of assets. This fund also did better than the S&P500 last year. The ticker abbreviation also lets the uninformed investor guess what the provider is about: It is LYFE, like life.

Ironically frowned upon sectors such as nuclear power, oil, weapons or tobacco offer investors enormous price opportunities – provided they buy the right paper.

by Frank Doll, Julian Heissler, Niklas Hoyer, Heike Schwerdtfeger, Anton Riedl

2nd Vote Advisers is an asset manager with a mission – albeit a decidedly different one than most other providers of value-based financial products. “We work on issues that are important to libertarians and conservatives,” the fund’s website says. You will never use your voting rights at shareholder meetings to “support ESG initiatives that reduce returns or violate investor values.” And these values ​​are clearly defined: pro-gun rights, anti-abortion, against supposed censorship. Far removed from the focus of ESG investors, who want to pay attention to environmental, social and good corporate governance (Environment, Social and Governance).

Ideal for Trump fans

2nd Vote Advisers was founded by a former Republican congresswoman, her husband, and a former JP Morgan Chase banker, Daniel Grant, who became increasingly unnerved by his industry’s supposed do-gooder impulses. “People are fed up with companies putting their social justice activism ahead of generating profits for their shareholders,” Grant once told Bloomberg.

He collected money, among other things, by appearing on the radio show of a sacked employee of ex-President Donald Trump. Kevin Hassett, who temporarily headed the White House Council of Economic Advisers under Trump, sits on the board.

A new ETF dedicated to freedom of speech will be launched soon. Shares of Facebook -Mother Meta, Twitter or Google will not be included. The title: “First Amendment Fund” – based on the First Amendment to the American Constitution, which guarantees freedom of expression. Ex-President Trump’s media company could possibly be a suitable investment.

2nd Vote Advisers isn’t the only firm that has identified conservative investors as its target audience. Since 2017, the year Donald Trump took over the US presidency, a small company from Fort Worth, Texas, has been offering the GOP Stock Tracker ETF, ticker abbreviation: MAGA. The American Conservative Values ​​ETF (ACVF) was also launched last fall, but it also includes numerous traditional blue-chip securities such as shares of Microsoft, NVIDIA, Tesla or Berkshire Hathaway among its most important positions. Both ETFs were able to look forward to decent gains of between 26 and 29 percent in the past year.

Conviction has its price

These are returns that make some conventional ESG funds look bad. However, they are not necessarily a good deal for investors. Because the profits of the conservative ETFs are not significantly higher than the results of a classic index fund. For this they are comparatively expensive. The fees of the 2nd vote funds are a whopping 0.75 percent. For comparison: The Vanguard S&P 500 ETF is available for 0.03 percent.

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