Reports

ETF Performance Tables – Ethical ETFs

Summary of all ASX Ethical ETFs by Performance and Returns.

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. 

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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

CODEFUND NAMEFEE (MER)FUM Jun’21 ($M)FUM CHANGE ($M)1 YR RETURN3 YR RETURN (P.A)
FAIRBetaShares Australian Sustainability Leaders ETF0.49%$1,063$52617.9%11.4%
RARIRussell Australian Responsible Investment ETF0.45%$299$8130.6%8.1%
VETHVanguard Ethically Conscious Australian Shares ETF0.17%$146$146N/AN/A
GRNVVanEck Vectors MSCI Australian Sustainable Equity ETF0.35%$64$726.1%11.6%
E200SPDR S&P/ASX 200 ESG Fund0.13%$21$21N/AN/A
INESInvestSMART Ethical Share Fund (Managed Fund)0.97%$54$3532.8%N/A
IMPQeInvest Future Impact Small Caps Fund (Managed Fund)0.99%$17$1639.7%0.0%
IESGiShares Core MSCI Australia ESG Leaders ETF0.09%$11$11N/AN/A
Avg0.46%29.4%10.3%
Total1,675843
Source: ASX as of June 2021

Global Share Ethical ETFs Performance

CODEFUND NAMEFEE (MER)FUM Jun’21 ($M)FUM CHANGE ($M)1 YR RETURN3 YR RETURN (P.A)
HETHBetaShares Global Sustainability Leaders ETF – Currency Hedged0.62%$127$12733.3%N/A
ESGIVaneck Vectors MSCI International Sustainable Equity ETF0.55%$84$4721.5%12.7%
ETHIBetaShares Global Sustainability Leaders ETF0.59%$1,570$86533.3%25.0%
VESGVanguard Ethically Conscious International Shares Index ETF0.18%$336$21429.0%N/A
IWLDiShares Core MSCI World ex Australia ESG Leaders ETF0.10%$177$5931.8%14.1%
IHWLiShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF0.13%$288$16340.0%12.9%
CLNEVanEck Vectors Global Clean Energy ETF0.65%$63$63N/AN/A
ERTHBetaShares Climate Change Innovation ETF0.65%$96$96N/AN/A
DBBFBetaShares Diversified Balanced ETF0.39%$7$413.4%N/A
DZZFBetaShares Diversified Conservative Income ETF0.39%$8$519.1%N/A
DGGFBetaShares Diversified Growth ETF0.39%$7$520.9%N/A
Avg0.42%26.9%16.2%
Total2,7631,648
Source: ASX as of June 2021

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.


Investment Manager

Marc has previously worked for Morgan Stanley, AMP and KPMG. He holds a Bachelor of Business (Finance/Accounting) from the University of Technology Sydney (UTS), and has completed his Chartered Financial Analyst (CFA) Level 1.

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