This story appears in the
January 2003 issue of
Entrepreneur.
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For those with a politically incorrect bent, here's a fund
that loves our vices. Just when you've gotten to the point in
life when you know firsthand that too much smoking, drinking and
gambling is no way to live, out comes a mutual fund that invests in
all those things: the Vice Fund.
The brainchild of Mutuals.com, the Vice Fund (VICEX) started selling
shares on September 1, 2002, at $10 per share. At the close of
business on October 14, shares were down 61 cents at $9.38.
Dan Ahrens is one of the fund's portfolio managers. He says
the fund was started because the things socially responsible funds
won't invest in--like alcohol, gambling, tobacco and defense
company stocks--represent a potentially lucrative basket of
securities. As of late September, the Vice Fund invested its assets
like this: nearly 25 percent in alcohol companies, 24 percent in
defense stocks, 19 percent in gambling and 18 percent in tobacco
companies.
While some sin stocks have made investors plenty of money,
gimmick funds like this usually aren't as lucky. Many come to
market shortly after the asset class they invest in has peaked, and
they often fall short of expectations. Others are poorly managed or
don't gather the assets to stay afloat. So if you want to
indulge your rebellious streak, do plenty of research first.
Toll-free number: (800) 688-8257
Web Site: www.vicefund.com
Dian Vujovich is an author, syndicated columnist and
publisher of fund investing site www.fundfreebies.com.
