ACVF ETF Drops Wells Fargo, U.S. Bancorp on Debanking Concerns

The American Conservative Values ETF has sold off its holdings in Wells Fargo and U.S. Bancorp, citing concerns about politically motivated debanking. The fund added both lenders to its boycott list, widening a screen it uses to steer clear of companies it considers at odds with conservative investors' views.

The move follows an Office of the Comptroller of the Currency report on debanking that examined whether financial institutions have shut accounts or withheld services for ideological reasons. The findings gave ACVF's managers a new basis for dropping the two lenders, which the fund had held until now.

ACVF markets itself as steering clear of companies it considers hostile to conservative priorities. Debanking has grown into a live political issue in Washington, with lawmakers sparring over how lenders weigh reputational and legal risk when deciding who gets an account, and whether those judgments can shade into viewpoint discrimination.

For Wells Fargo and U.S. Bancorp, the exit is unlikely to matter much financially, given the fund's size against their market capitalizations. Still, it illustrates how politically charged banking practices have become a selling point for asset managers courting investors who want their holdings to reflect their politics.