As a matter of fact, there is a mutual fund that used to be called the Vice Fund, but is now called the USA Mutuals Barrier Investor
If you are wondering what sort of stocks are in the Barrier Fund portfolio, here are the top eight holding:
Philip Morris International Inc (PM)
Reynolds American Inc (RAI)
Las Vegas Sands Corp. (LVS)
Altria Group, Inc. (MO)
MGM Resorts International (MGM)
Raytheon Company (RTN)
Wynn Resorts (WYNN)
General Dynamics Corp (GD)
Each of these stocks represent anywhere from 3% to 6% of the portfolio.
Rydex Leisure (RYLIX) is a fund that owns several stocks that are considered 'bad' or not so good, such as Philip Morris, Altria, and Reynolds American. It also owns McDonald's (MCD) as some investors consider fast food to be not-so-good.
Another fund that has occasionally been put in the vice fund category includes Fidelity Select Consumer Staples (FDFAX), which owns British American Tobacco, Reynolds American, and Altria. It also owns Pepsico (PEP) and Coca Cola (KO), which many consider not-so-good due to the sale of sugary drinks.
If you are not concerned about how your investment funds are used, buying the 'bad' stocks might be a 'good' strategy.
Disclosure: Author owns MCD, PEP, & KO.