Strive Asset Management, the financial services firm owned by billionaire Vivek Ramaswamy, is partnering with Vestmark to deliver direct indexing on Fidelity Investments' and Charles Schwab's platforms, according to a press release.

Direct indexing allows investors to track the performance of a specific index, such as the Standard & Poor’s 500, by buying individual stocks instead of investing in mutual funds or exchange-traded funds. S&P Global noted that the investment strategy, which also offers enhanced tax efficiency through tax harvesting, is expected to grow assets to $1.1 trillion by 2028 from $615.3 billion at the end of last year.

Strive said its direct indexing “includes full proxy voting coverage and corporate engagement from our in-house corporate governance team without regard to ESG or DEI constraints.” The firm will use Vestmark’s VAST platform to deliver these “highly personalized, tax-optimized portfolios at scale” to financial advisors, the release said.

“Ninety-seven precent of U.S. large-cap companies had drawdowns of 10% or more at some point during the 2023 calendar year,” Strive CEO Matt Cole said in a statement. “In 2022, the number was 100%. To be able to harvest those losses on a daily basis while also receiving the pro-shareholder governance that Strive provides is something investors cannot get anywhere else.”

Co-founded in 2022 by Ramaswamy, the Columbus, Ohio, firm manages $1.7 billion in assets and earlier this month launched a wealth management business to integrate bitcoin into client portfolios. Along with fellow billionaire Elon Musk, Ramaswamy was recently tasked by President-elect Donald Trump to head a new department aimed to make the federal government more efficient.

Vestmark, of Wakefield, Mass., provides portfolio management services for financial institutions and supports more than $1.5 trillion in assets and 5.5 million accounts across wealth management firms.

“Vestmark is thrilled to partner with Strive,” said Karl Roessner, CEO of Vestmark. “Our partnership will support Strive’s evolution into Direct Indexing where they can serve a broader array of clients seeking an investment approach focused on shareholder advocacy.”