There is hardly a topic that cannot be played on the stock market. Even anti-woke ETFs for conservative investors now exist. But two such products have now failed.

Whether in Hollywood movies, in video games, in the grocery store next door, on the big political stage, or on the carpeted floors of captains of industry, the controversial political issue of wokeness now seems to be everywhere. It's long since been part of the financial scene as well.

Woke, it's often said, is the new left. Woke supporters see themselves as alert, attentive, and responsible contemporaries who denounce issues such as exploitation, racism, social discrimination, and double standards, and campaign for heightened social awareness.

It often seems that political correctness is exaggerated, while moralism sometimes has a chilling effect.

As Many Critics as Supporters

At the same time, Woke culture invokes any number of critics who equally condemn and condemn social activism. The label Woke is perceived as pejorative here, and the role of a Chief Diversity Officer is perceived in such circles as a superfluous «cultural outgrowth» rather than a responsible executive.

Many conservative corporate leaders have followed the example of politicians and even used the label as a rhetorical weapon. Elon Musk is one of the biggest critics of the Woke movement, recently renaming the social media platform Twitter to X because he perceived it as woke.

It's no wonder that resourceful financial professionals have long sniffed a business opportunity on this issue. They've created investment products such as ETFs for investors who want nothing to do with the Woke agenda because, for many conservative-minded investors, ESG or LGBT is another wokeness misfit that needs to be stopped.

Not a Market Success

US asset manager and fund provider 2nd Vote Funds launched two ETFs for conservative investors in 2020. The company has drawn attention in recent years for its anti-ESG comments. However, as the «Financial Times» (behind paywall) reports, the anti-woke ETF failed to gain market traction.

The $30.3 million 2ndVote Society Defended and the $19.3 million 2ndVote Life Neutral Plus were closed to investors on August 3 and ceased trading on the US CBOE exchange.

The two investment vehicles simply could not raise enough money. Together, they attracted a meager $3.9 million in net inflows in the 12 months through the end of June, Morningstar data show. Yet equity markets have been booming left and right this year, and the ETF industry has never had as much money under management as it does these days.

No Thanks

One statement in particular from CEO David Black raises eyebrows, telling the FT «There is an overall failure in either our messaging or a commitment by conservatives and Christians to actually take meaningful steps to counter the successful radical ESG/woke/leftist agenda.»

For enlightened and open-minded, yet soberly calculating investors who are not drawn into the heated woke controversy, this view of the world and the economy only causes them to shake their heads. At least it's reassuring the company is not currently planning another anti-woke ETF.

The «stock market gods» should be thanked for making this point! In the end, the whole debate is now just annoying - on both sides.