American Conservative Values ETF (NYSE: ACVF) has welcomed Tesla, Inc. (NASDAQ:TSLA) and Paramount Skydance Corp. (NASDAQ:PSKY) into its portfolio following a high-profile boycott, a risk management review earlier this month, and a subsequent portfolio rebalance.
The actively managed ETF, which manages more than $135 million in assets, had held off on investing in Tesla early in the year, believing that Elon Musk‘s increasing political engagement was adversely affecting the firm’s shares. However, since Elon Musk has distanced himself from political activism and his firm’s shares have started to recover, ACVF decided to repurchase the stock, albeit with a hint of hindsight-induced regret.
One of ACVF’s co-founders, William Flaig, said the experience reinforced the fund’s thesis that politically motivated activity can create real financial risk, even if the timing proved costly. The fund missed Tesla's subsequent rebound after exiting the position, and Flaig described it as a learning experience rather than a victory to celebrate.
ACVF also ended its boycott of Paramount after ownership and leadership changes, especially at CBS News. Co-founder of ACVF, Tom Carter, said that his company was ready to re-evaluate its investments in the firm after what it considers significant changes at the top. While many corporations appear to be softening prior ideological stances, Carter said ACVF looks for tangible shifts in leadership before reconsidering an investment.
Created to help portfolios meet conservative values, ACVF implements a screening process to reject those they feel are guilty of ideological activism. Those exclusions span a wide range of issues, including Big Tech censorship, DEI-led corporate priorities, media bias, executive political advocacy, and policies seen as undermining religious liberty, Second Amendment rights, or pro-life values.
The fund is positioned as an alternative for clients who want their investments to reflect their beliefs, rather than just tracking the market. According to Flaig, conservative-leaning investors are increasingly questioning why they should remain invested in companies whose values they feel actively oppose, arguing that ACVF's approach combines professional portfolio management with principled screening.
It is particularly interesting because these Tesla and Paramount readditions illustrate how ACVF's process is never set in stone. On the one hand, this reveals that while values-based investors may not be motivated by profits alone, they are at least motivated by consistency. On the other hand, this process shows that values-based investors are open to adjusting their opinions as time goes on based on corporate actions and changes in perceptions.
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