An “anti-DEI” index fund launched this week that allows investors to support companies that hire based on merit, not on diversity, equity, or inclusion.
“It is the first ever index fund that is committed solely to meritocracy, so unlike a traditional S&P 500 ETF from BlackRock or Vanguard, we do not invest in companies that impose DEI hiring targets, Nike, Starbucks, Intel, Airbnb,” Azoria CEO and founder James Fishback told Fox Business. “There’s 37 in total and the reason why we don’t invest with them is that these are both a moral and a financial failure.”
“Research that we just published today shows that the 37 companies in the S&P 500 that we exclude from the Azoria 500 meritocracy fund underperformed the S&P by 19 percentage points over the last two years,” Fishback said. “It’s no surprise why, they prevent companies from hiring the best. They force them to hire folks who are not yet qualified, and lastly, they weaken employee trust and morale. All of that leads to lower stock returns in the long-term.”
He added to the outlet that companies hiring on merit are likely more successful than those that do not. “We’re making, really, a financial bet here that companies that hire on skill and merit will be more successful than companies that hire on race and gender,” he said.
Fishback explained his strategy in a statement on social media, noting that hiring targets focusing on DEI “hurt stock returns.”
“They prevent companies from hiring the best, force them to hire under-qualified workers, and weaken employee trust and morale,” he said, adding, “No one should be reduced to an arbitrary diversity target, nor excluded because they don’t happen to meet one. Here’s the truth: every American—no matter their race or gender—is capable of greatness. No one needs a DEI target to succeed.”
Major companies have scaled down their support of Pride and other “inclusive” events this year amid the Trump administration’s crackdown on DEI initiatives. According to Gravity Research, an estimated 39% of businesses reduced their external involvement with Pride-related events throughout June.
