Vice Fund News Archives - USA Mutuals

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of 9/30/2025 Fund Inception (8/30/2002)

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expenses are 2.15% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2026, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

Top 10 Holdings as of 9/30/2025

SECURITY NAME	% OF NET ASSETS OR MARKET VALUE
BAE SYSTEMS PLC	7.20%
PHILLIP MORRIS INTERNATIONAL, INC	6.67%
RTX CORPORATION	6.55%
BRITISH AMERICAN TOBACCO PLC	5.81%
ALIBABA GROUP HOLDING LTD.	5.82%
HEINEKEN NV	5.76%
HECLA MINING COMPANY	4.46%
NORTHROP GRUMMMAN CORP	4.41%
ANHEUSER-BUSCH INDEV SA	4.34%
DIAGEO PLC	4.09%

Holdings subject to change.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

The S&P 500 Index: An unmanaged composite of 500 large capitalization companies. Professional investors widely use this index as a performance benchmark for large-cap stocks. You cannot invest directly in an index.

Large-cap: Refers to a company with a market capitalization value of more than $10 billion.

The post VICE FUND 2025 Q3 2025 COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND 2025 SEMI-ANNUAL COMMENTARY LETTER

USA Mutuals News Share — Tue, 01 Jul 2025 00:41:36 +0000

The Vice Fund ended the first half of 2025 with a return of +15.64%.

Performance Overview (YTD through June 30, 2025)
Market volatility in Q1 and early Q2 created both challenges and opportunities, and the Fund benefited from defensive positioning and sector-specific tailwinds within our core holdings.

Sector Highlights

Defense & Aerospace: Defense stocks remained resilient amid continued geopolitical instability, particularly in Eastern Europe and the South China Sea region. Increased U.S. and NATO defense spending led to strong performance from names BAE Systems and Northrop Grumman. Several mid-tier defense contractors also reported robust earnings, helping this segment deliver double-digit gains.
Alcohol & Tobacco: Despite volume pressures in the U.S. and Europe, international demand and strong pricing power helped offset headwinds. Philip Morris International and Anheuser-Busch were standouts, supported by brand strength and emerging market growth. Diageo was the chief laggard with potential exposure to tariffs, raising concerns. The tobacco segment also benefited from increased regulatory clarity in some jurisdictions, easing investor concerns.
Gaming & Casinos: This sector continued to rebound on strong travel demand and a surge in digital and sports betting platforms. Macau’s recovery has been stronger than anticipated, contributing positively to the portfolio. The seeming end to China’s firm zero-COVID Policy and threats to casino concessions provided a tailwind.

Forward View
As we move into the second half of 2025, we maintain a constructive outlook on vice-related industries. These sectors tend to perform well in uncertain environments due to their pricing power, stable demand, and strong cash flow characteristics. While we remain mindful of macroeconomic risks, including interest rate fluctuations and tariffs, we believe the Fund is well-positioned to navigate the current landscape.

Portfolio Positioning
We continue to maintain a diversified allocation across our four core sectors, with a slight overweight in defense given continued global tensions and strong government contract pipelines. According to historical valuation metrics, the fund is collectively comprised of stocks generally valued below the stock market at large.

Key Contributor Spotlight: BAE Systems (LSE: BA/OTC: BAESY), driven by a surge in international defense contracts, robust earnings growth, and increasing investor interest in well-positioned military defense firms.

Several factors contributed to BAE’s strong performance:

Record order intake during the first two quarters, with significant contracts from the U.K. Ministry of Defense, NATO members, and expanding deals in Asia-Pacific.
Rising demand for next-generation naval and aerospace systems, with continued momentum in the Tempest Future Combat Air System and U.S. Department of Defense projects.
A favorable FX tailwind from a weaker pound boosted reported earnings in USD terms, further enhancing returns for U.S.-based investors.

Future Drivers
Looking ahead, we remain constructive on defense, with BAE Systems positioned to benefit from growing international defense budgets and continued investment in modern warfare technologies. Across the portfolio, our focus remains on companies with high barriers to entry, resilient cash flows, and pricing power — core traits of vice-related industries that historically outperform in uncertain markets.

As always, we thank you for your continued trust and investment in the Vice Fund.

Sincerely yours,

Vice Fund in the Media

Benzinga just spotlighted what we’ve known for years: vice stocks are resilient, profitable, and back in the headlines.

In their recent article, “Guns, Booze, And Gambling Stocks Are Crushing ESG In Trump’s America”

Benzinga Staff Writer Piero Cingari calls out how traditionally defensive sectors are once again outperforming many of the buzziest ESG names. The piece highlights companies like BAE Systems and Philip Morris, both of which are current VICEX holdings and top contributors to the fund’s performance this year. Click here to read the full article.

Standardized performance as of 6/30/2025 Fund Inception (8/30/2002)

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expenses are 2.15% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

Top Ten Holdings a of 6/30/2025

SECURITY NAME	% OF NET ASSETS OR MARKET VALUE
BAE SYSTEMS PLC	7.20%
PHILLIP MORRIS INTERNATIONAL, INC	6.67%
RTX CORPORATION	6.55%
BRITISH AMERICAN TOBACCO PLC	5.81%
ALIBABA GROUP HOLDING LTD.	5.82%
HEINEKEN NV	5.76%
HECLA MINING COMPANY	4.46%
NORTHROP GRUMMMAN CORP	4.41%
ANHEUSER-BUSCH INDEV SA	4.34%
DIAGEO PLC	4.09%

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

The post VICE FUND 2025 SEMI-ANNUAL COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: APRIL 2025 – COMMENTARY LETTER

USA Mutuals News Share — Thu, 01 May 2025 20:54:52 +0000

The Vice Fund ended the month of April with a return of +6.15%.

Market Review

Major equity indices were mostly lower after volatile April market moves. On April 2^nd, President Trump announced “reciprocal” tariffs on imports from all countries that were far higher than expected. After the news, the S&P 500 had its worst two-day performance since March 2020. After a week, the president announced a 90-day pause on higher-level tariffs (excluding China) to allow more time for negotiations. The S&P 500 reacted with its best one-day performance since 2008.

Looking forward, May still has several key earnings announcements, as well as further economic data around jobs, inflation, and GDP. But most importantly, it continues to offer clues around the Trump administration’s resolve to negotiate around tariffs. We believe tariffs will continue to cloud the economic outlook and diminish business and consumer sentiment. We believe these periods of uncertainty are another reason to invest in a fund that is comprised mainly of noncyclical companies like the Vice Fund, which has a lower correlation to broad-based indices than many equity funds.

The Vice Fund remains committed to its core belief that certain stocks are undervalued because certain factions of society deem them morally questionable. Our core holdings remain military defense, casino, alcohol, and tobacco stocks because they typically have an inelastic customer base that is unlikely to be swayed by whether the product price rises or falls.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (3/31/2025) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	4.28%	7.84%	4.10%	7.45%
MSCI World Index	7.63%	15.71%	9.39%	9.11%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX

The post VICE FUND: APRIL 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: MARCH 2025 – COMMENTARY LETTER

USA Mutuals News Share — Tue, 01 Apr 2025 15:29:18 +0000

The Vice Fund ended the month of March with a return of -0.23%.

Market Review

The S&P 500 and Nasdaq suffered significant losses in March 2025, with declines of -5.6% and -8.1%, respectively. The March sell-off was fueled by headlines about tariffs and weakening consumer and business sentiment. The sell-off has continued through mid-April, with the size and scope of tariffs changing daily.

In light of this uncertainty, economic forecasts have been revised downward. The Atlanta Fed’s GDP tracker now indicates gross GDP contracting in the first quarter of 2025. Federal Reserve Chair Jerome Powell indicated a wait-and-see mode as uncertainties around tariffs play out. As inflation shows no sign yet of dropping during a tariff war, the Federal Reserve is unlikely to step in with emergency rate cuts.

We believe equity volatility is likely to persist at higher levels for longer than a few weeks or months. The Vice fund has been committed to non-cyclical stocks since its inception over 20 years ago. We believe this commitment may offer downside mitigation compared to the top-heavy S&P 500 which has been riding big growth technology stocks for more than a decade.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (3/31/2025) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	4.28%	7.84%	4.10%	7.45%
MSCI World Index	7.63%	15.71%	9.39%	9.11%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX

The post VICE FUND: MARCH 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: FEBRUARY 2025 – COMMENTARY LETTER

USA Mutuals News Share — Sat, 01 Mar 2025 15:06:12 +0000

The Vice Fund ended the month of February with a return of +4.00%.

Market Review

Major U.S. equity indices were lower in February. Concerns around high growth stock valuations, increasing signs of “stagflation,” and ongoing tariff wars fueled the risk-off sentiment. The Federal Reserve maintained a cautious stance due to hotter-than-expected inflation data. We believe risks are mounting for a more meaningful sell-off this year.

On February 18^th, the CBOE SKEW (SKEW) Index reached all-time highs. SKEW measures perceived tail-risk in the distributions of the S&P 500 returns over a 30-day horizon. In short, investors were hedging extreme downside risk more than taking opportunistic positions to the upside. But nervous investors are only the beginning of the story.

In the following two weeks after the SKEW all-time high, SKEW immediately dropped close to its lows of years. This may indicate investors closed out hedges aggressively AND added to existing long positions seeking upside opportunity. While this SKEW movement is common during selloffs over longer time periods, the magnitude of the flip-flop back to opportunistic so quickly is uncommon. Investors have been rewarded for nearly two decades buying dips. In this case, we believe investors may be too early on a bullish call.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (12/31/2024) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	1.55%	0.07%	3.48%	7.22%
MSCI World Index	18.01%	10.58%	9.79%	9.27%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX

The post VICE FUND: FEBRUARY 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: JANUARY 2025 – COMMENTARY LETTER

USA Mutuals News Share — Sat, 01 Feb 2025 00:12:04 +0000

The Vice Fund ended the month of January with a return of +3.04%.

Market Review

U.S. equities were higher in January with the equal-weighted S&P notably outperforming the index by over 0.70% after several years of significant underperformance. In short, the AI-growth narrative that has fueled mega-cap technology stocks faced a setback as China’s seemingly affordable DeepSeek AI model triggered a selloff in AI-related stocks. This led to more scrutiny around 1) the spending models and pricing power in U.S. tech and 2) the stretched price valuations in U.S. tech. We believe the cost savings and breakthroughs of DeepSeek are overstated, but create real concerns around current U.S. equity valuations.

The advent of the second Trump administration dominated headlines this month. New U.S. tariffs were announced on Mexico and Canada (25%) and 10% on China. Additionally, President Trump noted tariffs on chips, steel, aluminum, and copper in the near future and mentioned he has not settled on a universal tariff rate. He did suggest, though, that it would be “much bigger” than the initial 2.5% that Treasury Secretary Bessent reportedly favored.

The January FOMC meeting resulted in no changes to the benchmark rates, which remained at 4.25-4.50%. It was mostly an uneventful meeting and press conference with the market not expecting another rate cut until June. At the press conference, Chair Powell mentioned the Fed is in no hurry to make changes as recent inflation readings have been good and could get help from easing shelter inflation. Analysts generally see an extended hold from the Fed moving forward, though some say in-line inflation readings possibly leading to cuts by midyear.

Turning to economic data, December core CPI came in slightly ahead of consensus, while headline was slightly below. Analysts believe the core CPI inflation trend is still slowing toward the FOMC’s target, mainly after December, when the PPI came in cooler than expected. It should be noted, though, that December nonfarm payrolls were much hotter than expected, with a printing growth of 256k jobs vs. consensus estimates between 150k-160k, with the unemployment rate ticking down to 4.1%.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (12/31/2024) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	1.55%	0.07%	3.48%	7.22%
MSCI World Index	18.01%	10.58%	9.79%	9.27%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX

The post VICE FUND: JANUARY 2025 – COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: DECEMBER 2024 – COMMENTARY LETTER

USA Mutuals News Share — Wed, 01 Jan 2025 23:13:31 +0000

The Vice Fund ended the month of December with a return of -4.64%.

Market Review

US equities were mostly lower in December on the heels of the best two-year stretch in 2023 and 2024 in 25 years. Financial markets continue to digest the December 18^th Federal Reserve meeting, in which commentary was more hawkish than expected on the rate path. Small cap equities had the most challenging month, with the Russell 2000 falling -8.4%.

The Federal Reserve and European Central Bank (ECB) lowered interest rates by 25 basis points (bps). However, the Fed’s Summary of Economic Projections indicated a slower pace of easing in 2025 amid a cautious stance on inflation. ECB President Christine Lagarde signaled a dovish outlook as economic growth and inflation projections weakened. Economic data was mixed with evidence of a strong but cooling labor market and robust consumer spending. Consumer confidence slipped for the first time in three months amid concerns that new tariffs could increase prices.

As markets move into earnings season, the S&P 500’s forward price-to-earnings (P/E) is in the high 20s, which is above the historical average. This reflects investor confidence in sustained earnings growth and favorable economic conditions. As a result of this equity premium, the market may be more susceptible to volatility if earnings fail to meet expectations.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (12/31/2024) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	1.55%	0.07%	3.48%	7.22%
MSCI World Index	18.01%	10.58%	9.79%	9.27%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX

The post VICE FUND: DECEMBER 2024 – COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: NOVEMBER 2024 – COMMENTARY LETTER

USA Mutuals News Share — Sun, 01 Dec 2024 17:22:47 +0000

The Vice Fund ended the month of November with a return of +2.61%.

Market Review

US equities staged a post-election rally in November, with all major equity indices moving higher. The rapid and conclusive Republican sweep of the White House and both chambers of Congress created expectations that the new administration may swiftly enact policy changes.

Trump ran on lower taxes, higher tariffs, and government deregulation that we believe fostered hope for economic growth, but uncertainty around the ramifications of these changes to inflation remains uncertain. There are also no guarantees Trump’s policies will make it through narrowly controlled Republican majorities in the House and Senate. The mixed reception to Trump’s Cabinet nominees may spell a more fractured Congress than expected.

In our opinion, the other major story of the month was the Federal Reserve cutting rates by twenty-five basis points and providing guidance forward. The key words from Federal Reserve Chair Powell were around the labor market normalizing and inflation cooling which he expects to continue. The Federal Reserve’s dual mandate is maximum employment with stable prices, but this has not yet been achieved.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (9/30/2024) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	12.40%	2.62%	4.11%	7.58%
MSCI World Index	32.35%	12.72%	9.94%	9.43%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX

The post VICE FUND: NOVEMBER 2024 – COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: OCTOBER 2024 – COMMENTARY LETTER

USA Mutuals News Share — Fri, 01 Nov 2024 14:56:36 +0000

The Vice Fund ended the month of October with a return of -3.51%.

Market Review

US equities were lower in October, with the S&P 500 ending a five-month streak of gains. Treasuries experienced significant declines, with yields increasing sharply across the curve. The dollar index rose while alternative investments like gold, crude oil, and Bitcoin also saw gains.

Investors focused on the increase in Treasury yields as bonds experienced their most significant selloff since September 2022. Reasons for the selloff included more scrutiny around the deficit and debt around robust economic data and rising political uncertainty. Investor concern over inflation, geopolitical uncertainty, housing costs, and consumer sentiment remains high.

Economic data was mixed. September payroll reports exceeded expectations, while labor market indicators showed softening. Moreover, September core CPI ran hotter than expected. We believe the mix of growth signals and possible disinflationary signs has forced investors to re-evaluate rate-cut probabilities in the year ahead.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (9/30/2024) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	12.40%	2.62%	4.11%	7.58%
MSCI World Index	32.35%	12.72%	9.94%	9.43%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX

The post VICE FUND: OCTOBER 2024 – COMMENTARY LETTER appeared first on USA Mutuals.

VICE FUND: SEPTEMBER 2024 – COMMENTARY LETTER

USA Mutuals News Share — Tue, 01 Oct 2024 18:50:46 +0000

The Vice Fund ended the month of September with a return of +2.45%.

Market Review

After more than a year of no rate changes, the Federal Reserve cut interest rates by 50bps. The move was explained by Chairman Powell in three ways: 1) Lack of recent inflation readings higher than Q1 2024, 2) Concern around slowing pace of job growth, and 3) That a July 2024 25bps cut would have happened if the July employment data was released before the July FOMC meeting. Chairman Powell projected another 50bps cut by year-end. We believe the Federal Reserve has shifted from combating inflation to prioritizing support for a weakening labor market.

In September, global equities were mostly higher. In particular, Chinese stocks experienced one of their strongest months in nearly 16 years following several announcements meant to inject confidence, support a weakening economy, and energize the stock market. A major injection of stimulus from the central bank and promises of more government support mark the beginning of a more aggressive approach from Beijing to propel the economy after years of increased regulation and stagnation.

As the 2024 U.S. presidential election approaches, implied option prices indicate markets may have more volatility, driven by uncertainty surrounding potential policy changes and their economic implications. Investors are grappling with the likelihood of shifting regulatory landscapes, tax reforms, and changes in trade policies, depending on the election outcomes. This unpredictability can lead to increased fluctuations in both equity and bond markets as traders adjust their portfolios in response to polls and candidate platforms. Historical trends suggest that markets often react sharply to election-related news.

Sincerely yours,

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-MUTUALS or visit our website at www.USAMutuals.com. Read the prospectus or summary prospectus carefully before investing.

Standardized performance as of (9/30/2024) Fund Inception (8/30/2002)

	1 Year	5 Year	10 Year	Since Inception
VICEX	12.40%	2.62%	4.11%	7.58%
MSCI World Index	32.35%	12.72%	9.94%	9.43%

Investor Class performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling 1-866-264-8783. Returns over one year are annualized. The Gross and Net expense are 1.91% and 1.73%. The Fund’s adviser, USA Mutuals Advisors, Inc. (the “Adviser”), has contractually agreed to reduce its fees and/or absorb expenses of the Fund, until July 31, 2025, to ensure that total annual fund operating expenses after fee waiver and reimbursement will not exceed 1.48% of the Fund’s average daily net assets for each share class.

DEFINITIONS:

The MSCI All Country World Index Total Return (“MSCI ACWI TR”): Captures large and mid-cap representation across 23 Developed Markets (DM) and 26 Emerging Markets (EM) countries.

SYMBOL: VICEX