Vice Fund

AAA

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.

RELATED TERMS
  1. Sin Stock

    A stock of a company that is either involved in or associated ...
  2. Sin Tax

    A state-sponsored tax that is added to products or services that ...
  3. Socially Responsible Investment ...

    An investment that is considered socially responsible because ...
  4. Sector Fund

    A stock mutual, exchange-traded or closed-end fund that invests ...
  5. Green Fund

    A mutual fund or other investment vehicle that will only invest ...
  6. Historic Pricing

    A method for calculating the value of an asset using the last ...
Related Articles
  1. Personal Finance

    Go Green With Socially Responsible Investing

    Find out how morals and ethics can bring you a surprising return.
  2. Investing Basics

    Sinful Investing: Is It For You?

    Sin stocks may seen outright undesirable to some, but these "naughty" industries bring stable returns - even in hard times.
  3. Mutual Funds & ETFs

    Socially (Ir)responsible Mutual Funds

    Not concerned about being an ethical investor? Maybe "sinful stocks" have a place in your portfolio.
  4. Investing Basics

    What is the difference between a REIT and a real estate fund?

    A real estate fund invests in securities offered by public real estate properties directly or indirectly through Real Estate Investment Trusts (REITs).
  5. Mutual Funds & ETFs

    Can you invest in hedge funds?

    Read about what it takes to invest in a hedge fund, and learn how some investors find ways to indirectly capture a hedge fund's returns.
  6. Economics

    Gary Gordon Positions Your Portfolio For 2015

    Seeking Alpha, the popular financial web portal, interviews Gary Gordon for its Positioning for 2015 series. Here is a transcript of that exchange.
  7. Mutual Funds & ETFs

    What is standard deviation used for in mutual funds?

    See how standard deviation is helpful in evaluating a mutual fund's performance. Use it in combination with other measurements to find a good investment.
  8. Investing Basics

    What are typical trust fund management fees?

    Learn about trust fund management fees, such as the annual management fee, annual expense ratio, brokerage commissions and trading expenses.
  9. Fundamental Analysis

    Is alpha the best risk measure?

    Read about some of the strengths and weaknesses of alpha, a popular risk-adjusted performance indicator based on modern portfolio theory.
  10. Mutual Funds & ETFs

    What does a hedge fund do?

    Read how hedge funds differ from other investment vehicles and how their investment strategies make them unique and potentially risky.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center