- 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 June 2025) to help you find the best and worst performing ethical ETFs.
Overall Trends and Average Returns
Q2 closed off with 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% to 15.4% while global share ethical ETFs had a similar rebound from 1 year returns of 1.1% to 9.2%.
Australian share and global share ethical ETFs also delivered strong mid-term returns, with an average 3 year performance of 13.2% and 12.5% respectively, as at 30 June 2025.
Perhaps driven by the strong returns or a greater shift in investor sentiments, Q2 also saw FUM size increase across 16 of the 19 ETFs compared, compared to the quarter prior when only 1 ETF grew in FUM (iShares Core MSCI World ex Australia ESG Leaders [AUD Hedged] ETF ASX : IHWL).
Best Performing Ethical ETF
Over both Global and Australian Ethical Share markets the Russell Australian Responsible Investment ETF (ASX: RARI) was the best performer, achieving a 20.2% return over the year (as at 30 June 2024). Global shares performed best over the 3 year period with iShares Core MSCI World ex Australia ESG Leaders ETF (ASX: IWLD) generating returns of 21.1% p.a.
RARI is one of the ETFs chosen for the Stockspot Australian Shares theme available as a satellite investment to clients with balances over $20,000.
Worst Performing Ethical ETF
The worst performing ethical ETF was VanEck’s Global Clean Energy ETF (CLNE) with negative returns over the past 1 and 3 years at -3.8% and -8.4% respectively (as at 30 June 2025).
The worst performing Australian ethical ETF was eInvest Future Impact Small Caps Fund (Managed Fund) (ASX: IMPQ) which was the only Australian ethical share ETF to return under 14% over the one year period with a return of 0.9% and the only Australian ethical ETF to deliver single figure 3 year returns, generating 3.8% against its peers that all returned in excess of 10% p.a.
Largest Inflows/Outflows
iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF (IHWL) had the largest inflows for two consecutive quarters.
BetaShares Global Sustainability Leaders ETF (ETHI), while one of the largest ETFs, saw the largest outflow at ($14.3m), which is surprising given it was one of the better performing global shares ethical ETFs.
New Funds
Over the last three years we have seen three new ethical ETFs come to market from iShares plus one BetaShares Ethical Australian Composite Bond ETF (AEBD):
- iShares Core MSCI Australia ESG Leaders ETF (IESG) – launched on 2 June 2021
- iShares Core MSCI World ex Australia ESG Leaders ETF (IWLD) and iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF (IHWL) – both these funds were originally launched on 22 April 2016 but changed to ethical strategies on 8 June 2021.
- BetaShares Ethical Australian Composite Bond ETF (AEBD) – launched 4 November 2024.
Australia Share Ethical ETFs Performance
| CODE | FUND NAME | FEE (MER) | FUM March ’25 ($M) | FUM CHANGE ($M) | 1 YR RETURN | 3 YR RETURN (P.A) |
| FAIR | BetaShares Australian Sustainability Leaders ETF | 0.49% | $1,262.85 | $189.0 | 17.7% | 13.7% |
| RARI | Russell Australian Responsible Investment ETF | 0.45% | $449.1 | $35.4 | 20.2% | 15.7% |
| VETH | Vanguard Ethically Conscious Australian Shares ETF | 0.16% | $568.2 | $59.4 | 18.9% | 16.5% |
| GRNV | VanEck Vectors MSCI Australian Sustainable Equity ETF | 0.35% | $220.3 | $47.5 | 19.0% | 15.4% |
| E200 | SPDR S&P/ASX 200 ESG Fund | 0.05% | $59.1 | $7.3 | 15.0% | 13.9% |
| INES | InvestSMART Ethical Share Fund (Managed Fund) | 0.97% | $75.6 | $3.2 | 14.4% | 10.7% |
| IMPQ | eInvest Future Impact Small Caps Fund (Managed Fund) | 0.99% | $44.2 | ($0.6) | 0.9% | 3.8% |
| IESG | iShares Core MSCI Australia ESG Leaders ETF | 0.09% | $359.3 | $48.9 | 17.4% | 15.8% |
| Avg | 0.44% | 15.4% | 13.2% | |||
| Total | $3,038.7 | $390.1 |
Global Share Ethical ETFs Performance
| CODE | FUND NAME | FEE (MER) | FUM Jun’21 ($M) | FUM CHANGE ($M) | 1 YR RETURN | 3 YR RETURN (P.A) |
| HETH | BetaShares Global Sustainability Leaders ETF – Currency Hedged | 0.62% | $562.0 | $3.7 | 4.9% | 14.6% |
| ESGI | Vaneck MSCI International Sustainable Equity ETF | 0.55% | $223.1 | $19.6 | 11.1% | 18.4% |
| ETHI | BetaShares Global Sustainability Leaders ETF | 0.59% | $3,547.8 | ($14.3) | 8.6% | 18.6% |
| VESG | Vanguard Ethically Conscious International Shares Index ETF | 0.18% | $1,195.6 | $101.6 | 16.1% | 20.5% |
| IWLD | iShares Core MSCI World ex Australia ESG Leaders ETF | 0.09% | $1,234.2 | $132.5 | 13.4% | 21.1% |
| IHWL | iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF | 0.13% | $754.0 | $193.5 | 9.2% | 17.2% |
| CLNE | VanEck Global Clean Energy ETF | 0.65% | $59.0 | $3.1 | -3.8% | -8.4% |
| ERTH | BetaShares Climate Change Innovation ETF | 0.65% | $82.9 | ($2.2) | 11.0% | -1.3% |
| DBBF | BetaShares Ethical Diversified Balanced ETF | 0.39% | $34.1 | $1.5 | 9.3% | 9.6% |
| DZZF | BetaShares Ethical High Growth ETF | 0.39% | $107.4 | $11.7 | 11.6% | 15.3% |
| DGGF | BetaShares Ethical Diversified Growth ETF | 0.39% | $52.8 | $4.4 | 10.1% | 12.3% |
| Avg | 0.42% | 9.2% | 12.5% | |||
| Total | $7,852.9 | $455.2 |
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.
