Sin Stock

In stock market jargon, a sin stock or vice stock is the stock of a socially marginalized company. The exact definition of a sin stock varies between social groups and eras. As a general rule, sin stocks include companies in the alcoholic beverage, gaming, tobacco, legal cannabis and sex sectors.

In a broader sense, the term sin stock may encompass any companies considered unethical by a society at large at a given time. These may include payday loan providers, arms manufacturers, and even companies with large environmental footprints or unsustainable business models.

Historically, sin stocks in the strict sense of the word (alcohol, gaming, tobacco, legal recreational drugs) have, as a whole, performed relatively well during times of recession. However, sin stocks are subject to price fluctuations because they are impacted by social trends.

There are a number of actively-managed funds and passively-managed vice ETFs which invest entirely in sin stocks.

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