Vice Fund

Definition of 'Vice Fund'


A mutual fund that invests in gaming, such as casino operators and gaming equipment, alcohol, tobacco and aerospace/defense sectors. The fund invests in both domestic and foreign-based equities, and holdings range from small cap to mega cap companies.

The fund has been in operation since 2002 and focuses on so-called "vices" that are considered by many to be socially irresponsible investments, or "sin stocks".

Investopedia explains 'Vice Fund'


The Vice Fund has little direct competition based on sector allocations, but as of 2007, it had outperformed the Russell 1000 Index (its benchmark index) since its inception. The fund is considered non-diversified, and carries a relatively high expense ratio of greater than 1.5% annually.

The Vice Fund stands in stark contrast to the many socially conscious or responsible mutual funds on the market, but it is based on the philosophy that sectors like gaming and alcohol have inherently solid demand; therefore, companies that are leaders in these sectors should produce good returns for shareholders.


Filed Under: ,

comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center