BAD or Good? New exchange-traded fund seeks to capitalize on taboo areas of growth

Even the Elf on the Shelf can’t convince this fund to focus on being good.

With the apt ticker of BAD, a brand-new exchange-traded fund centers around betting, alcohol and drug companies, particularly casinos and gaming, alcohol and cannabis companies, and new pharmaceuticals, with the idea that too many funds are going the route of environmental, social and governance and leaving a lot of promising ground unturned.

Tommy Mancuso, the president and founder of BAD Investment company, insists that “social stigma” is preventing too many investors from looking into these favorable investment opportunities. He also notes that all of these industries are already a part of many people’s daily lives, even though they have largely been avoided by investors. BAD will have an expense ratio of 0.75 percent.

In contrast, more and more ESG-focused exchange-traded funds continue to launch, with notable entries from BNY Mellon, Goldman Sachs and JPMorgan Chase in the past month alone. The BAD group argues that its fund is more clear and upfront about what it includes than many of these more broadly focused ESG funds.

Only time will tell if BAD is a good investment prospect.

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About the Author

BAD or Good? New exchange-traded fund seeks to capitalize on taboo areas of growth

Kerry Corbit

Kerry Corbit is Investors Prism's Editor in Chief and Lead Broadcast Journalist and is based in New York, NY.