This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Saintly' Investing Protects for Long Haul

BOSTON ( TheStreet) -- Sitting at a poker table with a cigarette and a stiff drink sounds like a good plan if the world is ending. Given the turmoil of 2011, it's no surprise that the Vice Fund (VICEX) has wildly outperformed the market.

On the other hand, investors who stick with a socially responsible (SRI) value approach like the Appleseed Fund (APPLX) have beaten the market by a wider margin over the years.

The Vice Fund, which counts Philip Morris (PM), Anheuser-Busch InBev (BUD) and Wynn Macau among its holdings, is up more than 14% this year through June 30, compared to a 6% return on the S&P 500 and the Appleseed Fund during that same time frame.

"The Vice Fund is doing quite well this year," Josh Strauss, portfolio manager of the Appleseed Fund says. "Its performance is very good. Their outperformance is all gambling and tobacco. But it's obviously a different category. Whether the Vice Fund can provide value in a portfolio, it certainly would have low correlation to the SRI fund, that's for sure."

The Vice Fund has an average annualized return of 3.9% over the past three years, greater than a 3.3% increase on the S&P 500 but well below the 14.7% return of the Appleseed Fund. That strong performance earned Appleseed the Morningstar accolade of top-performing mutual fund across every asset class during the 2008 and 2009 span.

The Appleseed Fund has the socially responsible mandate to exclude the so-called sin stocks -- alcohol, tobacco, gambling and porn. Strauss also excludes "too big to fail" banks, due to the view that the banks "have been managed in an irresponsible way with huge leverage," Strauss says.

>>'Sin' Stocks Help Investors Escape Slump

This socially responsible mandate helps the fund limit business risk. For example, stocks excluded from SRI funds, like Philip Morris, face massive litigation risks and even increased taxes by the government.

With all of the uncertainty in the market because of the downgrade of U.S. debt by Standard & Poor's, weak economic data and continued debt woes in Europe, this defensive approach has held up thanks a portfolio filled with companies in health care and consumer staples.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SEE $45.36 0.20%
WSH $45.96 -0.37%
AAPL $118.30 0.42%
FB $104.24 -1.15%
GOOG $742.60 -1.02%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs