After the technology bubble burst in early 2000, it turned out sin stocks tended to hold up better than the overall market. Certainly, these types of stocks are not candidates for socially responsible portfolios. Some of the below information came from the first chapter, Why Vice Is Nice (pdf), from the book by Caroline Waxler titled, Stocking Up on Sin: How to Crush the Market with Vice-Based Investing. The performance for several of the "sin industries" from June 2000 - June 2003 are noted below. A chart of the latest 3-month return for similar sectors is also provided:
(click on charts for larger image)
One way to gain exposure to sin stocks is via the Vice Mutual Fund (VICEX). Note, this fund does contain a relatively high expense ratio of 1.75%.
Stocking Up on Sin: How to Crush the Market with Vice-Based Investing
John Wiley & Sons, Inc.
By: Caroline Waxler