Best Ethical ETF in Australia (2026)
Ethical and ESG ETFs screen out industries like fossil fuels, gambling and weapons. How strict the screens are varies a lot.
It depends on the job you need the ETF to do. Here are the biggest and cheapest in each group:
- Global ethical ETFs: ETHI is the largest ($3.8bn) and IWLD the cheapest (0.09% a year).
- Australian ethical ETFs: FAIR is the largest ($1.0bn) and IESG the cheapest (0.09% a year).
- All-in-one: DZZF is the largest ($114m) and also the cheapest (0.39% a year).
Data to 30 September 2026 from the TMX Australia funds report. Returns include distributions. General information only, not a recommendation.
All the options compared
Global ethical ETFs
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| ETHI | Betashares Global Sustainability Leaders ETF | 0.59% | $3.8bn | +6.2% | +8.5% | 0.09% |
| IWLD | iShares Core MSCI World All Cap ETF | 0.09% | $2.0bn | +10.4% | +12.3% | 0.04% |
| VESG | Vanguard Ethically Conscious International Shares Index ETF | 0.18% | $1.6bn | +12.4% | +11.7% | 0.05% |
Australian ethical ETFs
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| FAIR | Betashares Australian Sustainability Leaders ETF | 0.49% | $1.0bn | −12.5% | +1.2% | 0.09% |
| VETH | Vanguard Ethically Conscious Australian Shares ETF | 0.16% | $651m | −4.6% | +5.3% | 0.04% |
| IESG | iShares Core MSCI Australia ESG ETF | 0.09% | $607m | −3.0% | +5.9% | 0.07% |
| GRNV | VanEck MSCI Australian Sustainable Equity ETF | 0.35% | $250m | −4.1% | +5.3% | 0.07% |
All-in-one
| Code | ETF | Fee | Size | 1Y | 5Y a year | Spread |
|---|---|---|---|---|---|---|
| DZZF | Betashares Ethical Diversified High Growth ETF | 0.39% | $114m | −0.2% | +5.2% | 0.20% |
Compare the biggest side by side → · Check how much they overlap →
Spread is the average gap between the buy and sell price: lower is cheaper to trade. 5Y a year is the average yearly total return over five years. Past performance is not a reliable indicator of future performance.
How closely each ethical ETF tracks its index
An index fund should return its index, less its fee. The gap below is each fund's return after fees minus its own benchmark. A gap close to zero means it has done its job well. Over 5 years, IWLD tracked its index most closely, beating it by 0.13% a year.
| ETF and benchmark | Fee | 1Y gap | 3Y gap a year | 5Y gap a year | Verdict |
|---|---|---|---|---|---|
| IWLDMSCI World ex Australia Custom ESG Leaders Index (AUD) | 0.09% | +0.13% | +0.13% | +0.13% | Ahead of its index |
| VESGFTSE Developed ex Australia Choice Index | 0.18% | +0.05% | +0.01% | +0.01% | Tracking well |
| IESGMSCI Australia IMI Custom ESG Leaders Index | 0.09% | +0.26% | +0.02% | -0.01% | Tracking well |
| VETHFTSE Australia 300 Choice Index | 0.16% | +0.09% | -0.05% | -0.05% | Tracking well |
| DZZFBetashares composite benchmark (weighted indexes) | 0.39% | -0.22% | -0.40% | -0.33% | Tracking well |
| ETHINasdaq Future Global Sustainability Leaders Index | 0.59% | -0.42% | -0.45% | -0.43% | Tracking well |
| FAIRNasdaq Future Australian Sustainability Leaders Index | 0.49% | -0.42% | -0.55% | -0.50% | Tracking well |
Gap = fund return after fees minus its benchmark. Issuer figures to October 2026. Hedged funds are measured against the hedged version of their index. Funds without published benchmark figures are left out. See every ETF vs its benchmark →
What to consider
- Read the exclusions. "ESG" can mean a light screen or a strict one. ETHI and FAIR are among the strictest.
- Fees. Stricter screening usually costs more.
- Performance can differ a lot from the market, because whole sectors are left out.
