What Is the Vice Fund?
The Vice Global Fund, formerly the Vitium Fund, is a mutual fund managed by USA Mutuals that focuses its investments on vice industries often considered socially irresponsible investments or "sin stocks.”
Before this fund was established, "vice fund" was informal slang for any fund that invested heavily in various sin stocks.
The Vice Fund was renamed the Vitium Global Fund on May 23, 2019.
The fund was renamed to its original name, the Vice Fund, on Aug. 4, 2021.
Key Takeaways
- The Vice Global Fund, formerly called the Vitium Fund, is a mutual fund managed by USA Mutuals that focuses its investments on vice industries often considered socially irresponsible investments or "sin stocks.”
- The Fund primarily invests in stocks generating the majority of their revenue from the alcohol, tobacco, gaming, and defense industries.
- The Vice Fund was renamed the Vitium Global Fund on Oct. 1, 2019, and returned to its original name on Aug. 4, 2021.
Understanding the Vice Fund
The Vice Fund primarily invests in stocks generating the majority of their revenue from the alcohol, tobacco, gaming, and defense industries. This encompasses casino operators, gaming equipment manufacturers, defense equipment manufacturers, alcohol producers, and tobacco producers.
The Fund invests in both domestic and foreign-based equities, with its holdings ranging from small-cap to mega-cap companies. It has been in operation since 2002. From May 2014 to October 2016, the Fund wasknown as the Barrier Fund.
The Fund seeks high-quality dividend-paying stocks in the vice industries and believes these industries have significant barriers to entry, which make successful companies a source of reliable stock returns.
The Fund also believes that its investments are generally market-neutral, meaning that they do well in both down and up markets because of a steady demand for vice industry goods through all market cycles.
The Fund is also broadly diversified internationally, which helps it to avoid broad market volatility. Additionally, it maintains an emphasis on dividend-paying companies with positive cash flow, which provides for income payouts to investors.
The Vice Global Fund is structured as an open-end mutual fund with four share classes. Its share classes include A, C, and investor shares as well as institutional shares. It has a management fee of 0.95% with total annual fund operating expenses ranging from 1.24% to 2.24% (net expense ratio).
The Fund can be traded through both full-service and discount brokerages. Its institutional and investor classes require no sales loads. A-shares charge a front-end load of 5.75% and back-end load of 1% through full-service intermediaries. The C-shares charge only a contingent deferred 1% back-end load in the 12months following an initial purchase.
The Fund has reported fairly steady annual total returns, with dividends consistently contributing to the Fund’s overall return. As of June 30, 2022, the Investor Class has a five-year annualized return of 0.74%, and a 10-year annualized return of 6.79%.
Through June 30, 2022, it reports an annualized return since inception of 7.82% versus the benchmark set at 8.32% by the MSCI All Country World Index. As of Sept. 9, 2022, it has a dividend yield of 0%.
As of Sept. 9, 2022, the Vice Global Fund had total assets under management of $79.2 million. As of June 30, 2022, top holdings in the Fund included Galaxy Entertainment, Northrop Grumman, Raytheon Technologies, and Philip Morris International.
FAQs
What is the Vice Fund? The Vice Fund, managed by USA Mutuals, is a mutual fund that invests in alcoholic drinks, tobacco, gambling, and defense industries. The word vice means immoral and wicked behavior, indicating the somewhat questionable investment strategy adopted by the Vice Fund.
What is a vice fund? ›
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 ...
How does fund investment work? ›
Funds are collective investments, where your and other investors' money is pooled together and spread across a wide range of underlying investments, helping you spread your overall risk.
What is a mutual fund How does it work is it a good way to invest? ›
Mutual funds let you pool your money with other investors to "mutually" buy stocks, bonds, and other investments. They're run by professional money managers who decide which securities to buy (stocks, bonds, etc.) and when to sell them. You get exposure to all the investments in the fund and any income they generate.
How does investing in an index fund work? ›
Index funds are investment funds that follow a benchmark index, such as the S&P 500 or the Nasdaq 100. When you put money in an index fund, that cash is then used to invest in all the companies that make up the particular index, which gives you a more diverse portfolio than if you were buying individual stocks.
How does a VC fund work? ›
Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in startups and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as very high-risk/high-return opportunities.
What is the minimum investment in a VC fund? ›
Minimal Investment Is Expensive
These funds are typically only available to high-net-worth individuals and institutional investors. A hedge fund's minimum investment might range from $100,000 to $1 million. Venture capital funds usually require a minimum investment of $250,000 to $500,000 and sometimes higher.
How do funds of funds make money? ›
A fund of funds (FOF)—also known as a multi-manager investment—is a pooled investment fund that invests in other types of funds. In other words, its portfolio contains different underlying portfolios of other funds. These holdings replace any investing directly in bonds, stocks, and other types of securities.
Can you take money out of an investment fund? ›
There are no tax "penalties" for withdrawing money from an investment account. This is because investment accounts do not receive the same tax-sheltered treatment as retirement accounts like an IRA or a 403(b). There are also no age restrictions on when you can withdraw from your investment account.
How do funds pay investors? ›
If you buy a fund right before the record date, part of your investment will be returned to you when distributions are paid. This is known as “buying a dividend.” Depending on how your account is set up, you'll either receive a check for the payout or the distributions will be reinvested.
Are mutual funds safe? All investments carry some risk, but mutual funds are typically considered a safer investment than purchasing individual stocks. Since they hold many company stocks within one investment, they offer more diversification than owning one or two individual stocks.
How do I make money from mutual funds? ›
If you own a mutual fund, you're considered a shareholder. You can make a profit from your investments in one of two ways: through dividends or capital gains. Dividends are a reward to shareholders for holding onto certain stocks or mutual funds for the long term.
Do mutual funds grow your money? ›
Mutual fund returns can come from several sources: Appreciation in the fund's NAV, which happens if the fund's investments increase in price while you own the fund. Income earned from dividends on stocks or interest on bonds. Capital gains or profits incurred when the fund sells investments that have increased in price.
How does an index work investing? ›
"Indexing" is a form of passive fund management. Instead of a fund portfolio manager actively stock picking and market timing—that is, choosing securities to invest in and strategizing when to buy and sell them—the fund manager builds a portfolio wherein the holdings mirror the securities of a particular index.
How much do you need to open a mutual fund? ›
Although there are mutual funds with no minimums, most retail mutual funds do require a minimum initial investment of between $500 to $5,000, with institutional class funds and hedge funds requiring minimums of at least $1 million or more.
What are the best mutual funds to invest in? ›
5 Best Mutual Funds to Buy Now
| Mutual Fund | Assets Under Management | Expense Ratio |
|---|
| Vanguard Total Stock Market Index Fund (VTSAX) | $1.6 trillion | 0.04% |
| Fidelity 500 Index (FXAIX) | $512.4 billion | 0.015% |
| Fidelity ZERO International Index (FZILX) | $4 billion | 0% |
| American Funds Bond Fund of America (ABNDX) | $82.6 billion | 0.62% |
1 more rowThere are 3 main ways a VC makes money. 1st revenue stream: management fees. Each fund is usually structured to be close-ended (no more money in once there is a final closing; there are variations possible with SPVS and opportunity funds…), and has a duration of 10 years (I've seen from 6 to 15 years).
Who owns a VC fund? ›
VC firms typically control a pool of funds collected from wealthy individuals, insurance companies, pension funds, and other institutional investors. Although all of the partners have partial ownership of the fund, the VC firm decides how the monies will be invested.
Is a VC fund a hedge fund? ›
Venture capital invests in startups to accelerate their growth and generate high returns for investors. Hedge funds invest in a variety of investments, ranging from stocks, bonds, commodities, and others using complex structures, leverage, and more to boost returns.
What is the difference between a VC firm and a fund? ›
Successful venture firms often operate several VC funds at one time—Fund I, Fund II, and so on. The VC fund is the legal entity that pools money to invest in assets like startups and pursues its own particular investment strategy. The fund then owns those assets until it sells them.
