Green Investing Beats Vice Investing
Nov.18, 2009 in
Wealth
Three guys walk into a bar: one is GOD, one is the Devil, and the other is Al Gore. Who would you trust to invest your money to get the highest return if they could only chose stocks they know about? Who would win if you placed vice investing vs. green investing vs. religious-based investing? Let’s find out.
For this competition, the vice investing is represented by the Vice Fund (VICEX) that invests in alcohol, gaming, tobacco and aerospace stocks. The Timothy Fund (TLGAX) upholds investing in stocks adhering to Judeo-Christian principles. For green living, we have two funds investiing in a clean and sustainable environment: New Alternative Fund (NALFX) and Winslow Green Growth (WGGFX).
The results indicates that green investing is the place to be from a one year to five year investing period. Over the last year, both green funds had a total return of 55% according to Morningstar. In contrast, the Timothy Plan had a return of 38% while the Vice Fund only managed a measely 23%. For comparison, the S&P 500 had a total return of 34% over the last year.
The most surprising result is that the Vice Fund claims to be good during recessionary times but trailed the S&P 500 over the last three years. I do not argue that alcohol and tobacco are still purchased at normal levels during recessions. This is better said as you don’t want to invest in the Vice Fund.
Master Achievement - Green Investing Wins
Fund Descriptions
The New Alternatives Fund (NALFX) fund invests most of assets in companies that provide a contribution to a clean and sustainable environment. It usually invests at least 25% of assets in common shares of companies which have an interest in alternative energy. The fund invests in U.S. companies as well as foreign ones without limitation on the assets allocation. It is a social responsible fund.
The Winslow Green Growth Investor (WGGFX) fund normally invests 80% of net assets in equity securities of environmentally sustainable companies. It may invest in any industry sector, but tends to focus on certain environmentally-oriented investment themes. The fund may invest in companies of any size capitalization. It intends to invest a significant portion of assets in domestic small-capitalization companies.
The Vice Fund (VICEX) normally invests at least 80% of net assets in equity securities of companies that derive a significant portion of their revenues from alcohol, tobacco, gaming and defense/aerospace. The Vice Fund seeks to select well-performing stocks of tobacco, alcohol, gaming, and weapons/defense companies because we believe that these industries tend to thrive regardless of the economy as a whole. In fact, they may have the potential to perform better when times are uncertain, leading many to view investment in “Vice” industries as a solid strategy during recessionary periods.
The Timothy Fund (TLGAX) primarily invests in equity securities with market capitalization in excess of $2 billion. The Timothy Plan® avoids investing in companies that are involved in practices contrary to Judeo-Christian principles. Our goal is to recapture traditional American values. We are America’s first pro-life, pro-family, biblically-based mutual fund group. The Timothy Plan® is a family of mutual funds offering a biblical choice when it comes to investing. If you are concerned with the moral issues (abortion, pörnography, anti-family entertainment, non-married lifestyles, alcohol, tobacco and gambling) that are destroying children and families you have come to the right place to invest.
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