Anti-'Woke' Investment: Azoria Partners Focuses on Meritocracy

In a remarkable step towards a changing investment landscape, James Fishback, CEO and co-founder of Azoria Partners, has introduced a new Exchange-Traded Fund (ETF). This 'Azoria 500 Meritocracy ETF' is based on the S&P 500 Index but deliberately excludes companies that apply diversity quotas in hiring and promotions. Fishback's goal is to allow investors, particularly in the retail sector, to influence the policies of the largest U.S. companies through their portfolio choices. The move comes at a time when numerous investors are betting on the so-called 'Trump Trade', believing that the new administration will boost conservative financial values and sectors. Notably, Donald Trump Jr. emerges as an active player in this environment. He recently joined venture firm 1789 Capital to invest in companies popular in conservative circles, such as Tucker Carlson's media company. Additionally, he has taken a board position at the company behind the 'woke-free' online marketplace PublicSquare. However, such anti-'woke' funds are not a new development. Rather, they are part of a broader Republican resistance to ESG (Environmental, Social, and Governance) initiatives, the impacts of which have been vigorously debated in political arenas in recent years. Vivek Ramaswamy, known for his book 'Woke Inc.', had already launched a similar program. ETFs offer investors the opportunity to invest in a variety of stocks through a single fund by tracking indices like the S&P 500. Yet Jay Ritter, finance professor at the University of Florida, warns that ideologically driven ETFs attract little investment and charge high fees. Investors should therefore proceed with caution with such political statement ETFs.