This is theory. If we look at the real world, do sovereign wealth funds typically invest in cigarettes? I don't think so. I think they typically have more stringent ethical guidelines than most regular funds.
I'm typically not in favor of sovereign wealth funds anyway. Because I don't buy the idea that the free market is always more efficient than the public sector, and if that's the case then investing the funds in the public sector, schools and improving health and social outcomes, is better than buying SpaceX even if they're going to the moon.
Of course there are exceptions.. if a country has more money than they know what to do with, it makes sense to pile it.
Its not a sovereign wealth fund, but China 100% owns China Tobacco and has generally avoided policy changes which could encourage people to stop smoking because it could hurt this extremely profitable company (China Tabacco has about 2x the before tax profit of Apple). https://www.theexamination.org/articles/deadliest-company-in...
I'm typically not in favor of sovereign wealth funds anyway. Because I don't buy the idea that the free market is always more efficient than the public sector, and if that's the case then investing the funds in the public sector, schools and improving health and social outcomes, is better than buying SpaceX even if they're going to the moon.
Of course there are exceptions.. if a country has more money than they know what to do with, it makes sense to pile it.