The BAD ETF (NYSE: BAD) is an anti-ESG ETF for exposure to stocks in the betting, alcohol and drugs sectors.

The BAD Investment Company has launched a new ETF as “an intriguing alternative for a new wave of retail investors who may be frustrated with aspects of the ESG movement.” The BAD ETF tracks the EQM BAD Index (BADIDX).

BAD ETF (NYSE: BAD) as a foil against whitewashed ESG products

The BAD ETF is an indexed, large cap fund designed to offer investors equally-weighted exposure to the B.A.D. market segments – betting (casinos, gaming, and online gaming operations); alcohol/cannabis (alcoholic beverage manufacturing and distribution and/or cannabis cultivation and sales); and drugs (pharmaceutical and biotechnology product development and manufacturing). (BusinessWire)

“We believe the vice industry exhibits defensive characteristics (people often continue to do BAD things regardless of economic conditions), yet are often “shunned”, and underinvested segments of the market which has historically provided diversification benefits, economic resilience, and competitive risk-adjusted returns,” said the fund manager in a statement.

“Many new or retail investors may have a misconception and a ‘to the moon’ mentality when it comes to investing and as exciting as that may sound, we believe should focus on long-term investing and sustainable areas of the market that have historically demonstrated to be profitable and withstood multiple economic cycles,” said Tommy Mancuso, president and co-founder of The BAD Investment Company.

The BAD ETF made its debut on Wednesday.

Top vice holdings

• Brown-Forman (NYSE: BF.B)
• Ambev (NYSE: ABEV)
• Aurora Cannabis (NASDAQ: ACB)
• Accel Entertainment (NYSE: ACEL)
• Bally’s Corp (NYSE: BALY)
• Abbvie (NYSE: ABBV)
• AstraZeneca (NASDAQ: AZN)
• Amgen (NASDAQ: AMGN)
• Biogen (NASDAQ: BIIB)
• Beigene (NASDAQ: BGNE)

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