- Ethical ETF trends and average returns
- What are the best performing ethical ETFs?
- What are the worst performing ethical ETFs?
- What are the Ethical ETFs with the largest inflows/outflows?
- New ETFs
- Ethical ETFs Performance Table
In this blog article we analyse the performance of Ethical ETFs in Australia (using data from ASX as at 30 September 2025) to help you find the best and worst performing ethical ETFs.
If you’re not sure what ethical investing is, we explore that in more detail in this handy blog.
Investors with Stockspot who wish to invest in companies that have been screened for environmental, social and governance (ESG) factors, have the option of sustainable portfolio recommendations.
Ethical ETF trends and average returns
How have ethical ETFs performed in 2025?
Q3 closed off with a second quarter of strong performance from ethical ETFs, following a period of uninspiring returns. The average 1 year return of Australian share ethical ETFs jumped from 2.3% at the close of Q1 to 10.9% (dropping slightly from 15.4% at the close of Q2 2025), while global share ethical ETFs had a similar rebound from 1 year returns of 1.1% at 31 March 2025 to to 12.9% as at 30 September 2025 (up from 9.2% the quarter prior), indicative of stronger global performance in the ethical ETF markets.
Australian share and global share ethical ETFs also delivered strong mid-term returns, with an average 3 year performance of 14.7% and 14.9% respectively, as at 30 September 2025.
Perhaps driven by the strong returns or a greater shift in investor sentiments, Q3 also saw FUM size increase across 18 of the 19 ETFs compared, compared to the 31 March 2025 when only 1 ETF grew in FUM (iShares Core MSCI World ex Australia ESG Leaders [AUD Hedged] ETF ASX : IHWL). BetaShares Climate Change Innovation ETF (ERTH) was the only ETF of those compared to shrink in FUM, as assets fell by $100,000.
What are the best performing ethical ETFs of 2025?
Over both Global and Australian Ethical Share markets the Vanguard Ethically Conscious International Shares Index ETF (ASX:VESG) was the best performer, achieving a 23.2% return over the year (as at 30 September 2025). Global shares performed best over the 3 year period with iShares Core MSCI World ex Australia ESG Leaders ETF (ASX: IWLD) generating returns of 23.2% p.a., outperforming VESG over the 3 year period by 0.2%.
What are the worst performing ethical ETFs of 2025?
The worst performing ethical ETF over the past 12 months was (ethical Australian share) eInvest Future Impact Small Caps Fund (Managed Fund) (ASX:IMPQ) which returned 0.1%. Over the past 3 years VanEck’s Global Clean Energy ETF (ASX:CLNE) performed worse with negative returns at -6.0% p.a.
What ethical ETF grew the most in 2025?
iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF (IHWL) had the largest inflows for three consecutive quarters , growing its FUM by $155 million.
BetaShares Climate Change Innovation ETF (ERTH) was the only ETF this quarter to see its FUM shrink, reducing from $82.9 million to $82.7 million.
What is the largest ethical ETF in 2025?
The largest Australian ethical share ETF in 2025 is BetaShares Australian Sustainability Leaders ETF (ASX: FAIR), which currently manages $1,282.4 million for investors. The largest global ethical share ETF is BetaShares Global Sustainability Leaders ETF (ASX: ETHI) which is over three times the size of FAIR managing $3,735.4 million of investors money.
What new ethical ETFs are available for Australian Investors?
Over the last three years we have seen three new ethical ETFs come to market from iShares plus one BetaShares Ethical Australian Composite Bond ETF (AEBD):
- iShares Core MSCI Australia ESG Leaders ETF (IESG) – launched on 2 June 2021
- iShares Core MSCI World ex Australia ESG Leaders ETF (IWLD) and iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF (IHWL) – both these funds were originally launched on 22 April 2016 but changed to ethical strategies on 8 June 2021.
- BetaShares Ethical Australian Composite Bond ETF (AEBD) – launched 4 November 2024.
Does Vanguard have an ethical ETF?
Vanguard has an Australian share ethical ETF, Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) and an ethical global share product Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG). We compare their performance to BetaShares, iShares, VanEck, and other product issuers below.
How did Australia share ethical ETFs perform in 2025?
| CODE | FUND NAME | FEE (MER) | FUM March ’25 ($M) | FUM CHANGE ($M) | 1 YR RETURN | 3 YR RETURN (P.A) |
| FAIR | BetaShares Australian Sustainability Leaders ETF | 0.49% | $1,282.4 | $19.6 | 8.2% | 14.1% |
| RARI | Russell Australian Responsible Investment ETF | 0.45% | $459.7 | $10.6 | 15.5% | 17.9% |
| VETH | Vanguard Ethically Conscious Australian Shares ETF | 0.16% | $612.7 | $44.6 | 14.6% | 17.9% |
| GRNV | VanEck Vectors MSCI Australian Sustainable Equity ETF | 0.35% | $247.6 | $27.3 | 11.2% | 16.9% |
| E200 | SPDR S&P/ASX 200 ESG Fund | 0.05% | $101.9 | $42.9 | 11.4% | 15.7% |
| INES | InvestSMART Ethical Share Fund (Managed Fund) | 0.97% | $78.1 | $2.5 | 15.7% | 12.4% |
| IMPQ | eInvest Future Impact Small Caps Fund (Managed Fund) | 0.99% | $45.4 | $1.3 | 0.1% | 5.9% |
| IESG | iShares Core MSCI Australia ESG Leaders ETF | 0.09% | $396.0 | $36.7 | 10.6% | 16.7% |
| Avg | 0.44% | 10.9% | 14.7% | |||
| Total | $3,223.8 | $185.5 |
How did global share ethical ETFs perform in 2025?
| CODE | FUND NAME | FEE (MER) | FUM Jun’21 ($M) | FUM CHANGE ($M) | 1 YR RETURN | 3 YR RETURN (P.A) |
| HETH | BetaShares Global Sustainability Leaders ETF – Currency Hedged | 0.62% | $657.6 | $95.6 | 8.5% | 19.0% |
| ESGI | Vaneck MSCI International Sustainable Equity ETF | 0.55% | $233.7 | $10.6 | 10.9% | 19.9% |
| ETHI | BetaShares Global Sustainability Leaders ETF | 0.59% | $3,735.4 | $187.6 | 14.5% | 20.3% |
| VESG | Vanguard Ethically Conscious International Shares Index ETF | 0.18% | $1,304.2 | $108.6 | 23.2% | 23.2% |
| IWLD | iShares Core MSCI World ex Australia ESG Leaders ETF | 0.09% | $1,389.2 | $155.0 | 20.4% | 23.4% |
| IHWL | iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF | 0.13% | $839.8 | $85.9 | 14.1% | 21.9% |
| CLNE | VanEck Global Clean Energy ETF | 0.65% | $65.1 | $6.2 | 14.6% | -6.0% |
| ERTH | BetaShares Climate Change Innovation ETF | 0.65% | $82.7 | ($0.1) | 9.4% | 0.6% |
| DBBF | BetaShares Ethical Diversified Balanced ETF | 0.39% | $37.2 | $3.1 | 7.1% | 10.9% |
| DZZF | BetaShares Ethical High Growth ETF | 0.39% | $110.6 | $3.2 | 10.5% | 16.5% |
| DGGF | BetaShares Ethical Diversified Growth ETF | 0.39% | $54.8 | $2.0 | 8.7% | 13.6% |
| Avg | 0.42% | 12.9% | 14.9% | |||
| Total | $8,510.3 | $657.7 |
If you’re looking to invest in ethical or sustainable ETFs, Stockspot builds sustainable investing portfolios for you. You can invest your money in ETFs investing in companies screened for sustainability, climate consciousness and with holdings demonstrating good corporate governance.
