The Vice Fund (MUTF: VICEX), formerly the Barrier Fund, is a mutual fund investing in companies that have significant involvement in, or derive a substantial portion of their revenues from the tobacco, gambling, defense/aerospace, and alcohol industries, i.e., business devoted to behaviors that are traditionally regarded as morally questionable vices.
The fund has received a great deal of media coverage even in non-English magazines.
History
The fund manager as of September 1, 2020 is Paul Strehle.
The fund was organized in March 2001 by USA Mutuals Advisors, Inc., which at the time was known as Mutuals.com. The fund's inception date was August 30, 2002. The Vice Fund invests at least 40% of its assets in foreign companies. Per the USA Mutuals website, The Vice Fund invests in domestic and foreign companies engaged in the aerospace and defense industries, owners and operators of casinos and gaming facilities, manufacturers of cigarettes and other tobacco products, and brewers, distillers, vintners and producers of other alcoholic beverages. These sectors have exhibited resilient demand through economic cycles and have fundamental strengths that help explain why they have endured for centuries. It also recently added marijuana and psychedlics to its holdings.
References
- God vs. Satan Who's the better investor? in Slate (2005-07-29) "By contrast, the much-smaller Vice Fund actively embraces companies that profit from human fallibility. And it has profited handsomely from doing so, crowing that it ranks in the top 1 percent of funds in its category. Here's a chart of the Vice Fund against the S&P 500 since its inception in 2002."
- Does Vice Pay? at The Independent Institute (2003-04-04) "“Vices are not crimes,” wrote 19th-century anarcho-capitalist philosopher Lysander Spooner. We still can legally invest in vice industries that have not been completely criminalized by the state. The Vice Fund (www.vicefund.com), created seven months ago, invests in alcohol, tobacco, gambling, and national defence. The presence of defence in the list of sins reminds us that what is a vice for some is a virtue for others."
- Vice beats virtue in the battle for high returns in Financial Times (2006-12-18) "The Vice Fund (VICEX) is really an alternative sector strategy that focuses on the alcohol, tobacco, gaming and defense industries, and we do so because we believe they offer true investment merit."
- Focus Money Online
- Syndens seier, Ole Asbjørn Ness, Jacob Trumphy, Finansavisen 10 September 2011, p.34–37
- Shank, Todd M., Daryl K. Manullang, and Ronald Paul Hill. “Is it Better to be Naughty or Nice?” The Journal of Investing. Fall 2005: 82 – 87
- "VICEX – People – USA Mutuals Vice Investor | Morningstar".
- "USA Mutuals - Vice Fund (Symbol: VICEX)".