10 High-Performing Ethical ETFs

MARISSA HAYDEN
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 1-year performance as of May 31, 2021.

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) eInvest Future Impact Small Caps Fund (IMPQ)

1-year return: 37.80%

Our top performing ETF, IMPQ invests in a portfolio of predominantly Australian and New Zealand listed Small and Mid Cap stocks that also contribute positively and sustainably to the environment and society. 

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

1-year return: 27.84%

 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. 

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

1-year return: 24.62%

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.

4) Russell Australian Responsible Investment (RARI)

1-year return: 23.02%

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.

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 the company’s website. The information displayed is based on an average of 6 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.

Online Share Trading Companies

5) SPDR S&P/ASX 200 Esg (E200)

1-year return: 21.10%

E200 seeks to closely match, before fees, the returns S&P/ASX 200 ESG which is responsible investing index and an alternative to the Australia’s flagship benchmark, the S&P/ASX 200.

6) Vanguard Ethically Conscious International Shares (VESG)

1-year return: 20.59%

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.

Compare Exchange Traded Funds (ETFs)

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

1-year return: 16.54%

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.

8) VanEck Vectors MSCI International Sustainable Equity (ESGI)

1-year return: 16.22%

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).

9) Vanguard Ethically Conscious Australian Shares ETF (VETH)

1-year return: 14.86%

This ETF offers exposure ASX-listed stocks while excluding 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.

Ethical investment funds
Image: Pixabay (Pexels)

10) Betashares Global Sustainability Leaders ETF (ETHI)

1-year return: 11.78%

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.

→ Related article: Keep saving or start investing?

All ethical ETFs featured on Market Index were considered for this list.
Past performance is not an indicator of future performance.

Cover image source: Aaron Burden/Unsplashed.co


Compare Exchange Traded Funds (ETFs) with Canstar

The table below displays some of the International Broad Based ETFs available on Canstar’s database with the highest three-year returns (sorted highest to lowest by three-year returns and then alphabetically by provider name). Use Canstar’s ETFs comparison selector to view a wider range of products. Canstar may earn a fee for referrals.


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