The Rise of “Anti-Woke” Investment Funds
After Donald Trump’s election as President of the United States, some investors have turned their focus to betting on companies that do not have diversity, equity, and inclusion (DEI) programs. This movement is known as “anti-woke.”
For example, last week, the U.S. fund Azoria Partners announced the launch of an “anti-woke” ETF. This fund will track the SPX index but will exclude companies that use diversity quotas for hiring and promotions. In other words, it will invest only in companies that do not pursue inclusion requirements.
This is part of a larger trend where companies are canceling their inclusion programs. For instance, in late November, Walmart—the largest retailer and top private-sector employer in the U.S.—ended its DEI policies. They are not alone: earlier this year, companies like Harley-Davidson, Tractor Supply, and John Deere also made similar moves.
Anti-Woke ETF
The ETF will be called SPXM, and its first exclusion is Starbucks. This company, which belongs to the S&P 500 and has a market capitalization of around $111 billion, is considered liberal by conservative sectors. Furthermore, the founders of Azoria Partners, the firm managing the “anti-woke” ETF, claim that Starbucks has hiring quotas, although Starbucks denies this.
The fund has already compiled a list of several other companies it plans to exclude, unless they remove their DEI policies. The market expects the ETF to be available early next year.
This launch reflects a growing ideological polarization that is also affecting investments. While the fund could attract a specific niche market, it carries risks related to diversification, long-term sustainability, and reputational impact.
Possible ETF Success
Its success will depend on the financial performance of the companies included and how the political and social environment in the U.S. evolves. Whether voters supported President Trump or not, many do not want to invest in companies that engage in what they consider “woke” practices. Research has shown that companies in the S&P 500 that prioritize diversity in hiring have underperformed their rivals.
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