The VICEX Fund: Recent Shortcomings of a Long-Run Success Story

  •  C. Chang    
  •  Thomas Krueger    


In this article, we empirically test the extent to which the VICEX fund, a portfolio of companies benefiting from
human vices (i.e., alcohol, gambling, and smoking), outperforms a variety of benchmarks. One pair of
benchmarks consist of Vanguard’s 500 Index Fund and a portfolio of all funds in the same Morningstar style
category based on company size. On a more focused basis we compare the performance of the VICEX fund to
two popular dividend-oriented mutual funds, because of the propensity of several VICEX fund components to
offer large dividend yields. Using a wide array of return, risk, and risk-adjusted measures we find limited
support for human vice-based investing over an extended period of time. Over the recent 2008-2009 period, the
VICEX fund has underperformed these alternatives.

This work is licensed under a Creative Commons Attribution 4.0 License.
  • ISSN(Print): 1925-4725
  • ISSN(Online): 1925-4733
  • Started: 2011
  • Frequency: semiannual

Journal Metrics

Google-based Impact Factor (2021): 1.54

h-index (July 2022): 37

i10-index (July 2022): 147

h5-index (2017-2021): 12

h5-median (2017-2021): 19

Learn more