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

•We empirically assess the performance of the VICEX Fund.•The VICEX Fund outperforms the market during expansion periods.•The VICEX Fund underperforms when the economy is in distress.•We find a link between performance of funds and economic resilience. We assess the performance of the VICEX Fund, wh...

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Veröffentlicht in:Finance research letters 2016-02, Vol.16, p.190-195
Hauptverfasser: Soler-Domínguez, Amparo, Matallín-Sáez, Juan Carlos
Format: Artikel
Sprache:eng
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Zusammenfassung:•We empirically assess the performance of the VICEX Fund.•The VICEX Fund outperforms the market during expansion periods.•The VICEX Fund underperforms when the economy is in distress.•We find a link between performance of funds and economic resilience. 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.
ISSN:1544-6123
1544-6131
DOI:10.1016/j.frl.2015.11.003