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Socially (ir)responsible investing? The performance of the VICEX Fund from a business cycle perspective

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  • Soler-Domínguez, Amparo
  • Matallín-Sáez, Juan Carlos

Abstract

We assess the performance of the VICEX Fund, which lies at the opposite end of the spectrum to socially responsible mutual funds (SRMF). This fund is morally controversial due to its higher return premium on investments in well-established vice companies. The empirical findings provide sufficient evidence to demonstrate that the VICEX Fund outperforms the market and provides higher return premiums than SRMF during expansion periods, but underperforms during times of economic distress. Our findings suggest a link between performance of funds and economic resilience. The VICEX Fund offers investors an excellent opportunity endorsed by its long-run sustainable performance.

Suggested Citation

  • Soler-Domínguez, Amparo & Matallín-Sáez, Juan Carlos, 2016. "Socially (ir)responsible investing? The performance of the VICEX Fund from a business cycle perspective," Finance Research Letters, Elsevier, vol. 16(C), pages 190-195.
    • Handle: RePEc:eee:finlet:v:16:y:2016:i:c:p:190-195
    DOI: 10.1016/j.frl.2015.11.003
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    Cited by:

    1. Jitmaneeroj, Boonlert, 2023. "Time-varying fund manager skills of socially responsible investing (SRI) funds in developed and emerging markets," Research in International Business and Finance, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    Performance; Vice; Socially responsible; Investment behavior;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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