The Behind the Ticker podcast premiere episode features a dynamic conversation between host Brad Roth, and Tommy Mancuso, founder of the BAD ETF. In episode one, Mancuso discusses the challenges of launching a unique investment product that appeals to investors seeking counterculture opportunities while providing long-term sustainable growth, including how he came up with the idea for BAD ETF (Betting, Alcohol, and Drugs).Hear from Mancuso as he discusses his anti-ESG ETF, which he believes focuses on making money rather than social stigmas. He argues that ESG scores lack transparency and could be manipulated, leading to biased investment decisions. Mancuso believes his ETF could be valuable in a recession-proof portfolio, with industries like alcohol and tobacco offering stability. Tune in for a behind the scenes look into why Mancuso launched The Bad Investment Company and the challenges of being a single ETF issuer. To learn more about Bad ETF, please visit https://badinvestmentco.com/
Deeper Dive: Insights from the Full Conversation
Beyond the headline strategy, the full conversation between Brad and Tommy Mancuso covered several additional themes worth highlighting for advisors and investors.
On Process and Philosophy
I'm Brad Roth, episode 1. Tommy Mancuso of the Bad Investment Company. Yes, you've heard that correctly. He runs the ETF with Ticker BAD, Betting, Alcohol, and Drugs. Tommy and I have a great conversation. We talked for about 40 minutes about his company. How we got it started, how he thinks about marketing. We talked about the ETF in depth in the ETF strategy. And so I really think you are going to enjoy this conversation with Tommy. CEO of the Bad Investment Company.
I'm Brad Roth, Chief Investment Officer of Thor Financial Technologies, and portfolio manager of THLV, the Thor Low Volatility ETF. Behind the Ticker, uncovers the inner workings of the ETF industry. We will interview portfolio managers and ETF service providers to dive deep into their work lives and their businesses. We will learn the inner workings of their strategies and what drives them as they continue to grow their company. Many of these individuals are entrepreneurs, and will have unique and compelling insights to share as much goes on behind the Ticker.
Market Context and Positioning
Well, if you're going direct exposure with either vetting, vetting or cannabis or some of that stuff last year, you would have mold, you would have underperformed significantly. On the other side, right? Pharmaceuticals did great last year. So, again, we're kind of a blend of a lot of ETFs combined, where take out the guesswork to some extent. You want to be in these industries. We're going to give you hopefully a little bit better of a risk adjusted return at the end of the day.
So I guess we'll start from the beginning, which was in college. I started working at a mutual fund shop out in San Diego, and then progressed and got on my securities license, started working at a Merrill Lynch on the wealth management side, realized the wire house world was maybe not necessarily for me. So I joined a firm, private capital investment advisors in about 2016. And, you know, me, I've got, I'm a little bit younger for to be an advisor in that world.
So, you touched on it a little bit. Let's dive a little bit deeper into the investment strategy at bad. Get it from a high level. So, how are you screening? How are you running kind of the portfolio in terms of waiting? Let's talk about the balance structure. Like, let's really dive into the underlying strategy.
Makes a ton of sense. Makes a ton of sense. And so, when you were designing this index, it sounds like it from the beginning of our conversation. It sounded to me as if you had the idea for the ETF before you actually ran the index. And so, when you ran the index, you were trying to build, can we call it anti-ESG?
Notable Insights
"So, big concert guy, big, big sports guy, you know, hometowns Kansas City was, had the, had the opportunity to go to the Super Bowl, so I'm sorry to anyone from Philly on that one."
"But yeah, you know, I like to, I kind of have a work hard and you know, honestly play hard to mentality at the end of the day, but obviously, there's a fine line of professionalism in, you know, being too much of a screwball by the name."
Key Takeaways
- The conversation explores important themes in growth investing relevant to today's advisor landscape.
- The conversation explores important themes in esg & thematic relevant to today's advisor landscape.
- The conversation explores important themes in quantitative investing relevant to today's advisor landscape.
What This Means for Advisors
For financial advisors evaluating options for client portfolios, this conversation with Tommy Mancuso highlights important considerations around growth investing. Understanding the strategy behind each fund—not just the ticker—helps advisors make more informed allocation decisions and better communicate the rationale to clients.
The themes of growth investing and esg & thematic discussed in this episode are particularly relevant in the current market environment, where advisors are increasingly looking for differentiated solutions that go beyond traditional benchmarks.
Listen to the Full Episode
This article is based on an episode of Behind the Ticker, hosted by Brad Roth, Founder and CIO of THOR Financial Technologies. For the full conversation with Tommy Mancuso, including additional nuances and details, listen on Spotify, Apple Podcasts, or watch on YouTube.