5 High-Performing Ethical ETFs

Investing your money ethically doesn’t mean that you have to accept low returns. Here are ten high-performing ethical investment exchange traded funds, based on their 5-year performance as of July 30, 2022.

This list is based on the top-performing ETFs on the ASX, and an ethical product is determined to be one that is specifically advertised as ‘ethical’ or ‘sustainable’.

1) Vanguard Ethically Conscious International Shares (VESG)

1-year return: 21.02%

This Vanguard fund offers exposure to many of the world’s largest companies listed in major developed countries, while excluding companies with significant business activities involving fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons and adult entertainment.

2) VanEck Vectors MSCI International Sustainable Equity (ESGI)

1-year return: 18.83%

ESGI invests in a diversified portfolio of sustainable international companies listed on exchanges in developed markets around the world (ex Australia). The funds screens out companies that own any fossil fuel reserves or derive revenue from mining thermal coal or from oil and gas related activities; and companies whose business activities are not deemed socially responsible investments (SRI).

→ Related article: Which ETFs Have the Highest Return on Investment?

3) Betashares Global Sustainability Leaders ETF (ETHI)

1-year return: 18.59%

The BetaShares Global Sustainability Leaders Fund is an exchange traded fund that actively seeks to invest in 100 large global companies, excluding Australian companies, that have been identified as leaders in climate sustainability. This includes companies with high carbon efficiency or involved in reducing emissions and excludes companies that are exposed to the fossil fuel industry.

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4) Intelligent Investor Ethical Share Fund (Managed Fund) (INES)

1-year return: 13.92%

This active fund is designed for investors seeking a diversified selection of Australian companies that produce growing, sustainable profits at low risk of interruption from the increasing threats associated with Environmental, Social and Governance (ESG) factors.

5) Betashares Global Sustainability Leaders ETF – Currency Hedged (HETH)

1-year return: 10.71%

HETH includes a portfolio of large global stocks identified as ‘climate leaders’ while excluding companies with direct or significant indirect exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

6) Betashares Ethical Diversified High Growth ETF (DZZF)

1-year return: 10.52% 

The object of this ETF is to provide exposure to a cost-effective, multi-asset class portfolio, for investors who are looking to align their investment with their values. DZZF offers the potential for high growth over the long term, and targets an allocation of 90% growth assets (Australian and international shares), 10% defensive assets (Australian and international bonds).

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7) Russell Australian Responsible Investment (RARI)

1-year return: 6.94%

This ETF invests in Australian shares and trusts listed on the ASX, with the aim of providing investors with exposure to a responsible investment portfolio. The fund weighted towards companies that demonstrate positive environmental, social and governance (ESG) characteristics.

8) Betashares Ethical Diversified Growth ETF (DGGF)

1-year return: 6.79%

DGGF’s portfolio is constructed with a passively managed blend of cost-effective ETFs traded on the ASX and other global exchanges. The Fund provides exposure to a range of asset classes, including Australian and global shares, property securities, bonds and cash, according to the Fund’s strategic asset allocation.

Compare Online Share Trading Accounts with Canstar

If you’re comparing online share trading companies, the comparison table below displays some of the companies available on Canstar’s database with links to providers’ websites. The information displayed is based on an average of six trades per month. Please note the table is sorted by Star Rating (highest to lowest), followed by provider name (alphabetical). Use Canstar’s Online Share Trading comparison selector to view a wider range of online share trading companies. Canstar may earn a fee for referrals.

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9) Vanguard Ethically Conscious Australian Shares ETF (VETH)

1-year return: 6.02%

This ETF provides exposure to stocks listed on the ASX and excludes companies with significant business activities involving fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment and a conduct related screen based on severe controversies.

→ Related article: Keep saving or start investing?

10) Vaneck Vectors MSCI Australian Sustainable Equity ETF (GRNV)

1-year return: 5.67%

This fund provides investors with access to a diversified portfolio of Australian companies that have high Environmental, Social and Governance (ESG) according to in-depth analysis by world leading research agency MSCI ESG Research.