Yesterday, The BAD Investment Company announced the launch of the $B.A.D. ETF (BAD.US)$. The indexed large-cap fund is designed to offer investors equally weighted exposure to the "BAD" 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) — by providing investment results that closely track the performance, before fees and expenses, of the EQM BAD Index (BADIDX).
With the proliferation of whitewashed ESG products and market sub-segments like sports betting and cannabis becoming more widely accepted socially and legally, we saw an opportunity to fill what we perceived as a gap in the marketplace. We came to that conclusion primarily by listening and watching this newly energized retail crowd over the past year.”
--- said Tommy Mancuso, president and founder of the BAD Investment Company, which owns the EQM BAD Index that BAD will track.
“We believe they want investment products rooted in transparency and quality that they may also be able to understand and relate to as consumers whether that is in health, wellbeing, or entertainment.”
--- Tommy Mancuso added.
The fund's launch comes amid a frenzy of ESG-fund debuts. In December alone, $Goldman Sachs (GS.US)$, $Bank of New York Mellon (BK.US)$, $JPMorgan (JPM.US)$ and Cathie Woods Ark Investment Management have introduced ETFs with sustainable tilts. (ESG ETF: $GOLDMAN SACHS FUTURE PLANET EQUITY ETF (GSFP.US)$, $BNY Mellon Sustainable International Equity ETF (BKIS.US)$ , $JPMORGAN CLIMATE CHANGE SOLUTIONS ETF (TEMP.US)$, $ARK TRANSPARENCY ETF (CTRU.US)$ )
Top 15 Holdings of BAD
Our mission is to position ourselves in a unique manner compared to most fund management companies. It's our opinion that we don't think or dress like the typical 'suit,' but are fully capable of harnessing the expertise and insights of Wall Street to provide strategically designed investment products.”
--- Tommy Mancuso said.
The expense ratio of BAD will be 0.75%.
Do you perfer ESG ETF or this anti-ESG ETF?
Source: The BAD Investment, Businesswire, Bloomberg

$JPMorgan (JPM.US)$'s asset management arm launched its first actively managed exchange-traded fund that approaches investing in companies fighting climate change.
The $JPMORGAN CLIMATE CHANGE SOLUTIONS ETF (TEMP.US)$ invests in companies that are poised to benefit from growing demand for climate change solutions. This includes companies that are producing less carbon-intensive energy such as wind or solar power; improving the electric grid; investing in less carbon-intensive forms of agriculture, construction, or transportation; or developing technologies to reduce waste.
While nearly all sustainable U.S. ETF assets are managed through passive indices, this fund takes an active approach to finding companies that are developing solutions to address climate change.
We believe that active management provides a great pathway to achieving clients' sustainability goals, and TEMP is the first in the series of sustainable, thematic, active strategies we are building to address client demand in this area."
--- George Gatch, Chief Executive Officer, J.P. Morgan Asset Management, comments.
TEMP will use JPM assets managment's proprietary natural language processing tool, ThemeBot, to review nearly 13,000 stocks globally, rapidly analyzing tens of millions of data sources. ThemeBot will seek to identify companies globally that are developing tangible solutions to address climate change, to create a universe of potential investments for the fund. At launch, the fund have 75 holdings of stock.
Top 10 Holdings of TEMP
Investors we talk to are increasingly looking for investment products that will provide meaningful investment opportunities across a range of industries and geographies.”
--- Bryon Lake, global head of ETF solutions at JPMorgan Asset Management, said in a statement.
TEMP joins $JPMORGAN CARBON TRANSITION U.S. EQUITY ETF (JCTR.US)$ as a sustainable focused ETF. JCTR offers core exposure to U.S. equities and seeks to capture benefits from the transition to a lower-carbon economy.
That beats TEMP's nearest competitor, the $GOLDMAN SACHS FUTURE PLANET EQUITY ETF (GSFP.US)$ on both price and performance. GSFP, which is actively managed and identifies nearly the same set of investment themes as TEMP, has fluctuated since its launch in mid-July.
Source: PR Newswires, Bloomberg