Investment Themes

Sin stocks: A selection to follow or to exclude?

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Investment Themes

The expression may have come up in one of your readings. Indeed, financial literature regularly addresses the theme of "Sin Stocks", understanding the actions of companies operating in unethical areas. This qualifier is particularly important because the recent rush towards "socially responsible" assets has made them pariahs among some managers. Let's dive into this unsavoury world together.

Did you know that? Betting on ethically incorrect sectors has long been a way to beat the stock market. In a study from the fall of 2019, UBS showed that a portfolio of stocks exposed to Tobacco, Alcohol and Gambling outperformed the MSCI World Index by an average of 4.9% per year from 1963 to the present day. Isn't that amazing? However, this trend has slowed considerably since 2010. It has even reversed since 2017 due to the disgrace of Tobacco and Gambling.

This thematic list explores companies operating in those "grey area" sectors, most of which do not fit well with so-called responsible investment (based on the principles of integrating Environmental, Social and Governance practices). It includes players in the Tobacco, Alcohol, Coal, Cannabis, Gambling, Nuclear and Weapons sectors. Given the sectors concerned, the list is dominated by stocks that are not very cyclical, with a balanced geographical distribution between Europe, the United States and the rest of the world (the Chinese stocks selected are limited to Hong Kong).

So are these stocks recommendable or not? It is up to you to decide whether you will use them as an investment base or as an exclusion list.

Our selection

Consumer Non-Cyclical
Cigars & Cigarette Manufacturing
11.99B +22.10%
Consumer Non-Cyclical
Other Brewers
19.66B +10.23%
Consumer Non-Cyclical
Other Brewers
46.65B +8.69%
Consumer Cyclical
Other Casinos & Gaming
13.73B +8.61%
Consumer Cyclical
Other Casinos & Gaming
4.73B -28.15%
Consumer Non-Cyclical
Distilleries
7.66B +0.87%
Consumer Non-Cyclical
Other Distillers & Wineries
45.48B -4.96%
Consumer Non-Cyclical
Other Distillers & Wineries
18.47B -12.18%
Consumer Cyclical
Other Casinos & Gaming
6.94B +15.04%
Industrials
Other Aerospace & Defense
6.48B +47.90%
Consumer Cyclical
Other Casinos & Gaming
25.78B +5.14%
Consumer Cyclical
Other Casinos & Gaming
8.48B +6.88%
Consumer Cyclical
Other Casinos & Gaming
2.59B +38.03%
Consumer Non-Cyclical
Other Distillers & Wineries
2.6B +18.72%
Consumer Cyclical
Lottery Operators
2.01B -29.46%
Industrials
Other Aerospace & Defense
8.26B -13.01%
Industrials
Other Aerospace & Defense
26.99B +15.82%
Industrials
Other Aerospace & Defense
6.65B -18.79%
Energy
Other Coal
749M +0.10%
Consumer Non-Cyclical
Other Brewers
7.35B -16.09%
Industrials
Other Aerospace & Defense
1.09B -46.94%
Industrials
Other Aerospace & Defense
35.59B +24.55%
Industrials
Other Aerospace & Defense
11.78B +29.51%
Industrials
Other Aerospace & Defense
2.35B +37.47%
Industrials
Other Aerospace & Defense
11.27B -15.87%
Consumer Non-Cyclical
Other Brewers
14.04B +21.51%
Industrials
Other Aerospace & Defense
70.47B +7.99%
Industrials
Other Aerospace & Defense
54.17B -0.95%
Consumer Cyclical
Other Casinos & Gaming
1.44B +36.01%
Industrials
Other Aerospace & Defense
3.13B +2.17%
Industrials
Other Aerospace & Defense
76.65B -5.36%
Consumer Non-Cyclical
Other Brewers
48.22B +14.14%
Consumer Non-Cyclical
Other Brewers
155B +26.89%
Consumer Non-Cyclical
Other Brewers
3.42B -18.85%
Industrials
Other Aerospace & Defense
30.49B +1.66%
Industrials
Other Aerospace & Defense
45.6B -0.38%
Industrials
Other Aerospace & Defense
10.9B +77.91%
Industrials
Other Aerospace & Defense
4.97B -18.95%
Consumer Non-Cyclical
Other Tobacco
129B +5.89%
Consumer Non-Cyclical
Other Brewers
14.32B -2.29%
Consumer Non-Cyclical
Other Tobacco
27.84B -13.02%
Industrials
Other Aerospace & Defense
17.04B +7.61%
Consumer Non-Cyclical
Cigars & Cigarette Manufacturing
37.01B -30.09%
Consumer Cyclical
Other Casinos & Gaming
1.26B -39.20%
Energy
Other Uranium
41.88B +8.19%
Consumer Cyclical
Other Casinos & Gaming
4.86B -2.50%
Industrials
Other Aerospace & Defense
8.93B +31.80%
Consumer Cyclical
Casinos
5.8B -14.48%
Energy
Uranium Mining
3.14B +1.77%
Consumer Cyclical
Other Casinos & Gaming
6.08B +27.58%
Consumer Cyclical
Other Casinos & Gaming
12.14B -30.05%
Consumer Non-Cyclical
Other Tobacco
1.29B -2.14%
Consumer Non-Cyclical
Other Brewers
21.38B +10.50%
Energy
Other Coal
2.79B +8.38%
Industrials
Other Aerospace & Defense
24.21B +34.43%
Industrials
Other Aerospace & Defense
101B +11.41%
Consumer Cyclical
Casinos
11.99B +28.47%
Energy
Other Coal
1.73B +16.87%
Industrials
Other Aerospace & Defense
25.52B +62.98%
Industrials
Other Aerospace & Defense
121B +8.18%
Consumer Non-Cyclical
Cigars & Cigarette Manufacturing
67.23B +7.91%
Industrials
Other Aerospace & Defense
264B +6.83%
Consumer Non-Cyclical
Other Brewers
9.19B -13.73%
Energy
Other Coal
3.09B +27.54%
Consumer Cyclical
Other Casinos & Gaming
5.96B -24.84%
Industrials
Other Aerospace & Defense
1.24B -14.09%
Industrials
Other Aerospace & Defense
5.32B +63.87%
Consumer Non-Cyclical
Other Distillers & Wineries
12.08B +0.42%
Industrials
Other Aerospace & Defense
26.48B +29.69%
Consumer Non-Cyclical
Other Tobacco
283B +13.23%
Consumer Non-Cyclical
Other Brewers
22.89B -2.83%
Industrials
Other Aerospace & Defense
7.48B +34.17%
Consumer Cyclical
Other Casinos & Gaming
13.77B -32.40%
Consumer Cyclical
Casinos
30.94B -28.27%
Consumer Cyclical
Other Casinos & Gaming
6.41B +1.13%
Energy
Other Uranium
1.8B -10.39%
Industrials
Other Aerospace & Defense
52.78B -36.45%
Industrials
Other Aerospace & Defense
159B +25.08%
Industrials
Other Aerospace & Defense
12.91B +67.16%
Industrials
Other Aerospace & Defense
5.93B +22.30%
Industrials
Other Aerospace & Defense
3.35B +19.20%
Industrials
Other Aerospace & Defense
7.96B -19.10%
Energy
Coal Mining Support
4.85B -16.95%
Consumer Non-Cyclical
Wineries
2.57B -13.45%
Consumer Non-Cyclical
Distilleries
10.32B -4.02%
Energy
Other Coal
2.85B -21.31%
Energy
Other Coal
4.25B -4.32%
Consumer Non-Cyclical
Other Brewers
4.81B +17.59%
Industrials
Other Aerospace & Defense
6.63B -31.65%
Consumer Cyclical
Other Casinos & Gaming
19.18B -48.54%
Industrials
Other Aerospace & Defense
48.48B +16.17%
Energy
Uranium Mining
2.93B +25.82%
Industrials
Other Aerospace & Defense
9.03B -36.52%
Industrials
Other Aerospace & Defense
2.42B +33.95%
Industrials
Other Aerospace & Defense
7.29B -40.23%
Energy
Uranium Mining
6.5B +8.47%
Consumer Cyclical
Other Casinos & Gaming
2.47B +10.59%
Consumer Cyclical
Other Casinos & Gaming
780M -13.64%
Consumer Non-Cyclical
Other Distillers & Wineries
2.51B +32.20%
Consumer Non-Cyclical
Other Brewers
2.58B +30.24%
Industrials
Other Aerospace & Defense
3.12B +60.40%
Consumer Cyclical
Pubs, Bars & Night Clubs
1.02B -1.02%
Consumer Cyclical
Gaming Machine Operators
1.02B +9.55%
Consumer Cyclical
Casinos
2.13B -27.48%
Industrials
Other Aerospace & Defense
34.18B +5.41%
Industrials
Other Aerospace & Defense
33.13B +2.76%
Consumer Non-Cyclical
Cigars & Cigarette Manufacturing
120B +24.51%
Industrials
Other Aerospace & Defense
3.42B +23.16%
Consumer Cyclical
Other Casinos & Gaming
17.57B -18.42%
Consumer Non-Cyclical
Other Tobacco
6.03B -36.27%
Industrials
Other Aerospace & Defense
375B +16.63%
Consumer Non-Cyclical
Other Distillers & Wineries
1.19B -5.07%
Consumer Cyclical
Other Casinos & Gaming
5.08B -22.20%
Consumer Non-Cyclical
Other Brewers
1.8B -9.40%
Industrials
Other Aerospace & Defense
23.32B +15.49%
Consumer Cyclical
Casinos
10.2B -17.09%
Energy
Other Coal
4.13B -7.50%
Energy
Other Coal
5B +8.06%
Consumer Non-Cyclical
Other Tobacco
1.7B -19.14%
Consumer Cyclical
Other Casinos & Gaming
13.14B -23.17%
Energy
Uranium Mining
980M -23.91%
Energy
Other Uranium
5.21B -9.85%
Energy
Uranium Mining
3.4B -3.27%
Energy
Other Coal
766M +33.33%
Industrials
Arms & Ammunitions Manufacturing
894M +16.79%
Energy
Other Coal
900M -34.82%
Energy
Other Coal
1.31B -5.15%
Industrials
Other Aerospace & Defense
698M +58.00%
Energy
Other Coal
6.73B -80.57%
Consumer Non-Cyclical
Cigars & Cigarette Manufacturing
2.38B -16.31%
Industrials
Other Aerospace & Defense
1.24B -29.11%
Industrials
Other Aerospace & Defense
23.43B +43.77%
Consumer Cyclical
Other Casinos & Gaming
3.47B -13.30%
Energy
Other Coal
3.14B +4.91%
Industrials
Other Aerospace & Defense
3.59B -37.10%
Energy
Other Uranium
2.36B -23.95%
Industrials
Other Aerospace & Defense
9.37B +26.14%
Industrials
Other Aerospace & Defense
2.59B -0.55%
Industrials
Other Aerospace & Defense
1.85B +19.20%
Industrials
Other Aerospace & Defense
941M +72.04%
Energy
Other Uranium
3.37B -29.54%
Consumer Cyclical
Gambling & Gaming Machine Manufacturers
2.02B -35.34%
Consumer Cyclical
Other Casinos & Gaming
553M -21.89%
Industrials
Other Aerospace & Defense
15.55B -
Consumer Non-Cyclical
Other Distillers & Wineries
5.72B +23.51%
Consumer Cyclical
Other Casinos & Gaming
3.48B +71.90%
Industrials
Other Aerospace & Defense
31.8B +3.80%
Consumer Cyclical
Other Casinos & Gaming
3.71B +3.65%
Consumer Cyclical
Casinos
1.93B -22.90%
Industrials
Other Aerospace & Defense
6.84B +7.49%
Industrials
Other Aerospace & Defense
928M +33.44%
Consumer Cyclical
Casinos
2.2B +29.43%
Energy
Other Coal
27.74B +7.59%
Consumer Cyclical
Casinos
740M -23.50%
Industrials
Other Aerospace & Defense
31.6B +2.69%
Energy
Other Coal
3.86B -73.50%
Energy
Other Coal
22.3B -0.10%
Energy
Other Coal
21.16B +9.25%
Energy
Other Coal
762M -49.55%
Industrials
Other Aerospace & Defense
2.8B +69.01%
Energy
Other Coal
131B +6.60%
Industrials
Other Aerospace & Defense
1.7B +14.62%
Consumer Cyclical
Other Casinos & Gaming
7.57B +23.77%
Consumer Non-Cyclical
Other Distillers & Wineries
8.66B -5.43%
Consumer Non-Cyclical
Other Brewers
10.54B -17.79%
Consumer Non-Cyclical
Other Distillers & Wineries
1.9B +5.74%
Energy
Other Coal
3.52B +17.20%
Industrials
Other Aerospace & Defense
1.61B +50.31%
Industrials
Other Aerospace & Defense
3.2B +8.92%
Industrials
Other Aerospace & Defense
10.24B -2.82%
Consumer Non-Cyclical
Distilleries
3.13B -14.86%
Consumer Cyclical
Gambling & Gaming Machine Manufacturers
5.79B -34.21%
Industrials
Other Aerospace & Defense
2.58B -
Industrials
Other Aerospace & Defense
5.17B -8.32%
Energy
Other Coal
1.97B -1.50%
Industrials
Other Aerospace & Defense
69.96B -
Consumer Non-Cyclical
Other Brewers
831M -
Energy
Other Coal
2.92B -61.20%
Industrials
Other Aerospace & Defense
7.72B -.--%
Energy
Other Coal
2.37B -.--%
Industrials
Other Aerospace & Defense
893M -42.18%
Industrials
Other Aerospace & Defense
835M -
Industrials
Other Aerospace & Defense
3.52B -

News of the components

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Sector allocation

Ratings chart - Surperformance

Ratings ESG MSCI

  1. Stock Market
  2. Investment Themes
  3. Sin stocks: A selection to follow or to exclude?