The B.A.D. ETF (BAD) is an exchange-traded fund designed to invest in companies operating in the betting, alcohol, and cannabis-related industries. The ETF is managed by Exchange Traded Concepts (ETC) and trades under the ticker BAD on the Cboe BZX Exchange.

Classified as a thematic equity ETF, the fund invests in companies that generate a significant portion of their revenue from sports betting, gaming, alcoholic beverages, cannabis, and related biotechnology businesses. Its strategy provides exposure to industries commonly referred to as "sin industries" or adult-consumption sectors.

The ETF follows a passive management approach and seeks to replicate the performance of the EQM BAD Index, a benchmark composed of global companies operating across the betting, alcohol, and cannabis industries.

Diversification and sector exposure

BAD provides exposure primarily associated with:

• Sports betting.

• Gaming and casinos.

• Alcoholic beverages.

• Cannabis.

• Biotechnology.

• Consumer discretionary.

• Healthcare.

• Entertainment.

The portfolio includes companies from multiple countries, including sportsbook operators, casino businesses, alcoholic beverage producers, medical and recreational cannabis companies where legally permitted, biotechnology firms, and other businesses tied to adult-consumption markets.

The ETF's performance reflects developments across these industries, which often exhibit different growth drivers than traditional sectors of the economy.

Structure and costs

BAD shares trade on the secondary market on the Cboe BZX Exchange during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism designed to help keep the ETF's market price aligned with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings, when applicable, may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The B.A.D. ETF was launched in 2021 to provide investors with exposure to companies operating in the betting, alcohol, and cannabis industries.

Since inception, the fund has tracked the expansion of legalized sports betting, developments in the global alcoholic beverage market, and the growth of the cannabis industry, particularly in North America.

In recent years, the legalization of sports betting across various jurisdictions, continued development of the medical and recreational cannabis markets, and changing consumer preferences have continued to influence the performance of the companies represented in the ETF's portfolio.

Additional Information

B.A.D. ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $9.53 million.

Over the past 12 months, B.A.D. ETF recorded a return of 0.00%, with its price trading between $0.00 and $0.00 during the same period.

The ETF is traded under the ticker BAD.