Ever wanted to invest in a BAD exchange-traded fund (ETF)? Well, now you can.
Launched last December, the BAD ETF, trading in New York under the ticker BAD, takes an alternative angle on investment decisions.
BAD stands for betting, alcohol and drugs, where the ETF focuses its investments.
Betting includes casinos, gaming, and online gaming operation stocks, with 33% of its investment focused in this section.
Alcohol follows alcoholic beverage manufacturing and distribution companies where 23% of its holding is placed.
Drugs include pharmaceutical and biotechnology product development and manufacturing, with 33% of its holding, and 10% in cannabis cultivating and distribution.
BAD Investment company believes that these industries remain strong in both tough and prosperous economic conditions and are therefore typically underappreciated.
They have also “historically offered attractive risk-adjusted returns," although with that being said, the fund is down 21%.
‘Alternative” ETFs and investment funds are not uncommon.
An 'anti-woke' investment fund raised US$20mln from investors in May, including billionaire entrepreneur Peter Thiel and hedge fund manager Bill Ackman, to back companies that focus only on their business and do not take any ideological stands.
Strive was launched by 36-year-old US entrepreneur Vivek Ramaswamy, who said the fund's approach was based on the idea of “excellence capitalism”, investing in companies that look to maximise profits and eschew anything else.
There is also the Anti-Cathie Wood ARK ETF, which shorts the ARK ETF managed by Wood’s investment firm, ARK Investment Management.