- 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, to help you find the best and worst performing ethical ETFs.
Overall Trends and Average Returns
Australian Share Ethical ETFs delivered an average 1 year return of 2.3% and a 3 year return of 5.1% (as at 31 March 2025), while Global Shares Ethical ETFs returned on average of 1.1% over the past year and 5.2% over the past 3 years (as at 31 March 2025).
Best Performing Ethical ETF
Over both Global and Australian Ethical Share markets, the Vanguard Ethically Conscious International Shares Index ETF (VESG) was the best performer, achieving a 9.4% return over the year, Vaneck’s MSCI International Sustainable Equity ETF (ESGI) performed best over a 3 year period returning 13.3%.
ESGI is one of our chosen Sustainable Global Shares ETF within our sustainable portfolios.
Of the Australian Share Ethical ETFs, Russell Australian Responsible Investment ETF (RARI) was the best performing over 1 year, returning 6.2% (as at 31 March 2025) while SPDR S&P/ASX 200 ESG Fund (E200) generated the best 3 year return at 7.5% (as at 31 March 2025).RARI is one of the ETFs chosen for the Stockspot Australian Shares theme available as a satellite investment to clients with balances over $50,000.
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 -17.7% and -14.6% respectively (as at 31 March 2025).
Largest Inflows/Outflows
iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF (IHWL) was the only ETF compared with positive inflows, taking in $21.4m.
BetaShares Global Sustainability Leaders ETF (ETHI), while one of the largest ETFs, saw the largest outflow at ($237.3m), which is surprising given it was one of the better performing Australian Shares Ethical ETFs.
New Funds
Over the last three years we have seen 3 new ethical ETFs come to market from iShares plus BetaShares Ethical Australian Composite Bond ETF (AEBD):
- iShares Core MSCI Australia ESG Leaders ETF (IESG) – launched on 2 June 2021
- iShares Core MSCI World ex Australia ESG Leaders ETF (IWLD) and iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF (IHWL) – both these funds were originally launched on 22 April 2016 but changed to ethical strategies on 8 June 2021.
- BetaShares Ethical Australian Composite Bond ETF (AEBD) – launched 4 November 2024.
Australia Share Ethical ETFs Performance
| CODE | FUND NAME | FEE (MER) | FUM March ’25 ($M) | FUM CHANGE ($M) | 1 YR RETURN | 3 YR RETURN (P.A) |
| FAIR | BetaShares Australian Sustainability Leaders ETF | 0.49% | $1,073.8 | ($51.8) | 2.0% | 5.0% |
| RARI | Russell Australian Responsible Investment ETF | 0.45% | $413.7 | ($11.7) | 6.2% | 7.4% |
| VETH | Vanguard Ethically Conscious Australian Shares ETF | 0.16% | $508.8 | ($5.7) | 5.5% | 6.9% |
| GRNV | VanEck Vectors MSCI Australian Sustainable Equity ETF | 0.35% | $172.8 | ($9.0) | 0.5% | 5.9% |
| E200 | SPDR S&P/ASX 200 ESG Fund | 0.05% | $51.8 | ($1.4) | 4.0% | 7.5% |
| INES | InvestSMART Ethical Share Fund (Managed Fund) | 0.97% | $72.4 | ($2.0) | 1.3% | 4.6% |
| IMPQ | eInvest Future Impact Small Caps Fund (Managed Fund) | 0.99% | $44.8 | ($2.7) | -3.4% | -3.2% |
| IESG | iShares Core MSCI Australia ESG Leaders ETF | 0.09% | $310.4 | ($3.4) | 1.9% | 6.9% |
| Avg | 0.44% | 2.3% | 5.1% | |||
| Total | $2,648.5 | ($87.7) |
Global Share Ethical ETFs Performance
| CODE | FUND NAME | FEE (MER) | FUM Jun’21 ($M) | FUM CHANGE ($M) | 1 YR RETURN | 3 YR RETURN (P.A) |
| HETH | BetaShares Global Sustainability Leaders ETF – Currency Hedged | 0.62% | $558.3 | ($56.1) | -1.4% | 4.8% |
| ESGI | Vaneck MSCI International Sustainable Equity ETF | 0.55% | $203.5 | ($6.0) | 6.1% | 13.3% |
| ETHI | BetaShares Global Sustainability Leaders ETF | 0.59% | $3,562.0 | ($237.3) | 3.3% | 11.9% |
| VESG | Vanguard Ethically Conscious International Shares Index ETF | 0.18% | $1,094.0 | ($62.2) | 9.4% | 12.6% |
| IWLD | iShares Core MSCI World ex Australia ESG Leaders ETF | 0.09% | $1,101.7 | ($33.6) | 6.8% | 12.9% |
| IHWL | iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF | 0.13% | $560.5 | $21.4 | 2.2% | 6.0% |
| CLNE | VanEck Global Clean Energy ETF | 0.65% | $55.9 | ($2.5) | -17.7% | -14.6% |
| ERTH | BetaShares Climate Change Innovation ETF | 0.65% | $85.1 | ($10.6) | -4.1% | -8.4% |
| DBBF | BetaShares Ethical Diversified Balanced ETF | 0.39% | $32.6 | ($1.0) | 2.6% | 4.4% |
| DZZF | BetaShares Ethical High Growth ETF | 0.39% | $95.7 | ($4.9) | 2.1% | 8.2% |
| DGGF | BetaShares Ethical Diversified Growth ETF | 0.39% | $48.4 | ($2.1) | 2.3% | 6.2% |
| Avg | 0.42% | 1.1% | 5.2% | |||
| Total | $7,397.7 | ($394.9) |
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
