TLP: Go Ahead, You Know You Want To
Now really, how hard was this to figure out?
AP via The Washington Post:
So much for virtue. Sin is in.Not that being socially responsible is a bad thing. But it will cost you.
That's according to a mutual fund manager who's finding plenty of investment opportunities in companies profiting from vices like smoking, drinking and gambling.
Jeff Middleswart's aptly named Vice Fund is beating the house in a down market. The Standard & Poor's 500 index is down 1.9 percent this year. Yet stocks of cigarette makers are up an average 12 percent.
The Vice Fund's three biggest holdings are cigarette stocks: Philip Morris International Inc., Lorillard Inc. and Altria Group Inc. That explains why the fund is up 4.5 percent this year, ranking in the top 3 percent of its large-blend fund peers according to Morningstar.
Defense contractors - another fund mainstay - are up an average 12 percent. Some group contractors in this category because their profits are tied to the escalation of conflicts. Alcoholic beverages? Up 6 percent.
Vice is the lifeblood of a fund that's a counterpoint to investment products touting themselves as socially responsible because they favor companies ostensibly benefiting society. This year, those stocks aren't doing anything special. An index of socially responsible stocks, the MSCI USA Large Cap ESG, is down 1.7 percent.