ETF Performance Tables – Ethical ETFs

• Overall trends and average returns
• Best performing ethical ETF
• Worst performing ethical ETF
• Largest inflows/outflows
• New ETFs
• Ethical ETFs Performance Table

Every year Stockspot analyses the best and worst ETFs in Australia. In this blog article, we specifically focus on the performance of ethical ETFs in Australia. 

Overall Trends and Average Returns

Australian Share Ethical ETFs delivered an average return of 29.4% over the past year, outperforming the average Global Share Ethical ETF which returned 26.9%.

Best Performing Ethical ETF

Over both Global and Australian Ethical Share markets, The eInvest Better Future Fund (Managed Fund) (IMPQ) was the best performer achieving a 39.7% return over the year. It’s an active ETF meaning the fund manager does not follow an index, but rather tries to actively pick ethical stocks. The best performing passive ethical ETF was BetaShares Global Sustainability Leaders ETF (ETHI) with 33.3% over the past year and is the global sustainable share ETF we use in our Sustainable Portfolios.

Worst Performing Ethical ETF

The worst performing ethical ETF was the BetaShares Ethical Diversified Balanced ETF (DBBF) returning 13.4% given it has a higher weighting towards defensive assets like bonds which have lagged shares over the last year.

Largest Inflows/Outflows

Both the BetaShares Ethical ETFs received majority of inflows with ETHI and FAIRtaking in $608m and $398m respectively, and are the two biggest ETFs in the Ethical ETF market. BetaShares accounts for two-thirds of all ethical ETFs listed on the ASX. The newly launched Vanguard Ethically Conscious Australian Shares ETF (VETH) received good initial support of $138m in flows while it’s global share ethical ETF, VESG, saw $161m coming into its product. The VanEck Vectors MSCI Australian Sustainable Equity ETF (GRNV) saw $6m in outflows over the year after a couple poor months of investors leaving the product. 

New Funds

Over the last year we have seen 5 new ethical ETFs come to market:

• Vanguard Ethically Conscious Australian Shares ETF (VETH) – launched on 12 October 2020
• SPDR S&P/ASX 200 ESG ETF Fund (E200) – launched on 31 July 2020
• 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.

Australia Share Ethical ETFs Performance

CODE	FUND NAME	FEE (MER)	FUM Jun’21 ($M)	FUM CHANGE ($M)	1 YR RETURN	3 YR RETURN (P.A)
FAIR	BetaShares Australian Sustainability Leaders ETF	0.49%	$1,063	$526	17.9%	11.4%
RARI	Russell Australian Responsible Investment ETF	0.45%	$299	$81	30.6%	8.1%
VETH	Vanguard Ethically Conscious Australian Shares ETF	0.17%	$146	$146	N/A	N/A
GRNV	VanEck Vectors MSCI Australian Sustainable Equity ETF	0.35%	$64	$7	26.1%	11.6%
E200	SPDR S&P/ASX 200 ESG Fund	0.13%	$21	$21	N/A	N/A
INES	InvestSMART Ethical Share Fund (Managed Fund)	0.97%	$54	$35	32.8%	N/A
IMPQ	eInvest Future Impact Small Caps Fund (Managed Fund)	0.99%	$17	$16	39.7%	0.0%
IESG	iShares Core MSCI Australia ESG Leaders ETF	0.09%	$11	$11	N/A	N/A
Avg		0.46%			29.4%	10.3%
Total			1,675	843

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%	$127	$127	33.3%	N/A
ESGI	Vaneck Vectors MSCI International Sustainable Equity ETF	0.55%	$84	$47	21.5%	12.7%
ETHI	BetaShares Global Sustainability Leaders ETF	0.59%	$1,570	$865	33.3%	25.0%
VESG	Vanguard Ethically Conscious International Shares Index ETF	0.18%	$336	$214	29.0%	N/A
IWLD	iShares Core MSCI World ex Australia ESG Leaders ETF	0.10%	$177	$59	31.8%	14.1%
IHWL	iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF	0.13%	$288	$163	40.0%	12.9%
CLNE	VanEck Vectors Global Clean Energy ETF	0.65%	$63	$63	N/A	N/A
ERTH	BetaShares Climate Change Innovation ETF	0.65%	$96	$96	N/A	N/A
DBBF	BetaShares Diversified Balanced ETF	0.39%	$7	$4	13.4%	N/A
DZZF	BetaShares Diversified Conservative Income ETF	0.39%	$8	$5	19.1%	N/A
DGGF	BetaShares Diversified Growth ETF	0.39%	$7	$5	20.9%	N/A
Avg		0.42%			26.9%	16.2%
Total			2,763	1,648

If you’re looking to invest in ethical or sustainable ETFs, Stockspot can build you a sustainable investing portfolio which means your money is invested in companies that are sustainability conscious, climate friendly, and demonstrate good corporate governance.

Find out how you can invest in a way that’s aligned with your values.