WASHINGTON, DC / ACCESSWIRE / July 23, 2024 / Today, the American Conservative Values ETF (NYSE:ACVF) announced that, as of July 19th, it increased its' holdings of DEERE & COMPANY (DE) and TRACTOR SUPPLY COMPANY (TSCO) as well as divested its holdings of and initiated a "Refuse to Buy" rating on CHIPOTLE MEXICAN GRILL (CMG).
After a comprehensive periodic review of our investments, ACVF's management team has decided to increase its holdings of DE and TSCO "Based on recent company statements, Deere and Tractor supply have concluded that Diversity, Equity and Inclusion policies (DEI) do nothing to benefit the bottom line and thus shareholder value," stated CEO and co-founder William Flaig. "We believe that playing politics is a wasteful misallocation of investors' capital and meritocracy; rewarding employees based on their ability is a key driver of business success."
In contrast, CMG has arguably increased its DEI efforts, continuing to link executive compensation to "[improving] the retention rate of [their] diverse employee workforce relative to those who are non-diverse." They have also disingenuously rebranded their previously labeled ESG goals as ‘Brand Purpose' goals. As a result, ACVF's management team has divested its holdings of and initiated a "Refuse to Buy" rating on CMG. The proceeds from the sale of CMG have been used to purchase DE and TSCO. "We must hold companies accountable; we believe that market forces are the most effective and immediate way to do so," stated ACVF president and co-founder Tom Carter. "Politically conservative investors have the ability to punish or reward companies' decisions. That is why we created ACVF."
DEI is becoming increasingly discredited; companies are toning down or moving away from DEI. Microsoft Corporation (MSFT) has rewarded our belief that they are the least objectionable large tech company by significantly reducing their DEI program. A Trump victory in November will further increase pressure on DEI programs and initiatives.
Excerpts and links to each company's statements follow:
John Deere stated on X that it "will no longer participate in or support external social or cultural awareness parades, festivals or events," and will be "auditing all company-mandated training materials and policies to ensure the absence of socially motivated messages." Additionally, John Deere will be "reaffirming within the business that the existence of diversity quotas and pronoun identification have never been and are not company policy."
Tractor Supply Company stated that, going forward, they "will ensure [their] activities and [give] tie directly to [their] business." For instance, they will "eliminate DEI roles and retire [their] current DEI goals… [and] withdraw [their] carbon emission goals." Additionally, they pledge to "no longer submit data to the Human Rights Campaign" and "further focus on rural America priorities," as well as "stop sponsoring nonbusiness activities like pride festivals and voting campaigns."
Microsoft reportedly fires DEI team, becoming the latest company to ditch ‘woke' policy.
Chipotle's 2023 Sustainability Report continues to link executive compensation to the goal of "[improving] the retention rate of [their] diverse employee workforce relative to those who are non-diverse." Also of major concern the goal of "[Reducing] Scope 1 and 2 greenhouse gas."
"It's a moral imperative to stop and roll back the left's takeover of corporate America," stated Flaig. "Giving conservative investors the power to fight back is why we built ACVF."
"ACVF is currently refusing to invest in 37 such companies," stated Carter. "I'm proud to offer an alternative to the S&P 500*, which currently keeps 28 cents of every invested dollar from these companies."
"We believe focusing on retention rate of diverse employee workforce relative to those who are non-diverse Is contrary to the meritocracy which we believe maximizes shareholder value and is clearly discrimination" stated Flaig.
Tom Carter reiterated, "we do not want to give the companies that are eagerly working to destroy conservative values our hard-earned investment dollars, and neither should you. Companies like Walt Disney, Blackrock, Google, Amazon, and others."
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About ACVF
The American Conservative Values ETF (ACVF) is based on the conviction that politically active companies negatively impact their shareholder returns, as well as support issues and causes which conflict with our conservative political ideals, beliefs and values.
*The S&P 500® is a broad-based unmanaged index, which is widely recognized as representative of the equity market in general.
* As of 7/19/2024 the fund holds 0.00% of Disney, Blackrock, Google and Amazon. The fund's holdings are subject to change. For current holdings, please visit https://acvetfs.com/fund/etf-fund/#holdings
* The 37 companies that are currently excluded from their portfolio represent 28% of the S&P 500.
* For current holdings, fund factsheet and more information, please visit www.acvetfs.com
To schedule an interview with Mr. Flaig or Mr. Carter, please contact Michael Tammero at:
Mtammeromba@gmail.com or 516 551-1549
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus and summary prospectus, which may be obtained by visiting ACVETFS.com. Read the prospectus and summary prospectus carefully before investing.
An investment in the Fund is subject to risks, including the possible loss of the principal amount invested. Overall stock market risks may affect the value of individual securities in which the Fund invests. The Fund is actively managed, and the adviser's investment decisions impact the Fund's performance. The Fund and adviser are new, and the ETF has only recently commenced operations. This Fund may not be suitable for all investors.
The equity securities in which the Fund invests will generally be those of companies with large market capitalizations. Exchange-Traded Funds (ETFs) trade like stocks, are subject to investment risk, and will fluctuate in market value. Transactions in shares of ETFs will result in brokerage commissions, which will reduce returns. Unlike typical exchange-traded funds, there are no indexes that the Fund attempts to track or replicate. Thus, the ability of the Fund to achieve its objectives will depend on the effectiveness of the portfolio manager. There is no assurance that the investment process will consistently lead to successful investing. The Fund is new and has a limited operating history.
The ACVF Fund is distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Ridgeline Research, LLC, the Fund's Investment Adviser.
The Fund is structured as an ETF and as a result, is subject to special risks. Shares are bought and sold at market price (closing price) not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 p.m. Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.
SOURCE: American Conservative Values ETF
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