The Great Reversal: Will U.S. Energy be the New U.S. Tech?

On August 10th, Strive's first product $DRLL will be trading on the New York Stock Exchange.

Strive U.S. Energy ETF ($DRLL) is passively managed and seeks to track the performance of the Solactive United States Energy Regulated Capped Index. The Index seeks broad market exposure to the U.S. energy sector.

Why U.S. Energy?

Large asset managers embraced environmental, social and governance (ESG) mandates that led U.S. energy companies to divest in and shrink fossil fuel production and invest in lower-return energy transitions – setting up today's energy crisis.

We believe investors allowed policy to overwhelm good investment opportunities. Despite that, we also believe that U.S. energy stocks will appreciate multi-fold over the next 18-24 months as capital rotates from the U.S. technology sector to the U.S. energy sector – the "Great Reversal" has already begun.

Strive's case for the "Great Reversal":

• Tech stocks rallied on growth, low inflation, and low interest rates. 
• As interest rates increase and inflation rages, tech stocks lose, while investors seek near-term cash flow and cut terminal values for long-term growth 
• The same shift of increasing inflation and rates presents a potential tailwind for energy – as energy stocks' near-term cash flows may benefit directly from higher commodity prices. 

We believe a core solution to inflation is more commodity production and investment in energy.

Strive will deliver a "post-ESG" mandate to U.S. energy companies – urging them to reject shortsighted political agendas that caused companies to underinvest in American oil, natural gas, and other promising forms of energy - helping unleash the potential for American energy innovation.

For more information, please see our investment case deck here. 

P.S. SAVE THE DATE: Watch Strive ring the NYSE closing bell August 10th at 4pm ET here.