Top 9 ethical ETFs in Australia to watch in 2026

Ethical ETFs apply screens to their holdings, typically excluding companies with material ties to fossil fuels, weapons or activities deemed inconsistent with responsible investment standards. The nine funds in this list all trade on the ASX and cover a range of structures and market exposures, with management expense ratios (MERs) from 0.05% at State Street SPDR S&P/ASX 200 ESG ETF ($E200) to 0.65% at BetaShares Climate Change Innovation ETF ($ERTH).

How we built this list: We selected these funds based on their industry or investment category and ordered them by assets under management. Prices are updated daily, and the list and supporting content are reviewed roughly every quarter. All data is sourced from Stake. This list isn't a recommendation and isn't ordered by suitability.

Past performance is not a reliable indicator of future performance.

Source: Stake market data. Figures in A$. Data updated as of 11 August 2026.

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1. BetaShares Global Sustainability Leaders ETF ($ETHI)

BetaShares Global Sustainability Leaders ETF (ETHI) share price over the last year: started at A$15.82, ended at A$17.25, a change of +9.0%. Range over the period: high A$17.30, low A$14.41. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $17.25 · Daily: -0.06% · AUM: $3.88B · MER: 0.59%

BetaShares Global Sustainability Leaders ETF ($ETHI) is designed to track the Nasdaq Future Global Sustainability Leaders Index. The index holds 200 large global stocks, selected through two distinct filters.

Carbon efficiency is the positive test: the index measures how each company performs relative to its peers and identifies those that qualify as climate change leaders. A negative screen runs alongside it, removing companies with material ties to activities considered inconsistent with responsible investment standards. Those two filters together determine what ends up in the portfolio – a large-cap global lineup shaped by both what companies do well and what they avoid.

2. iShares Core MSCI World Ex Aus ESG ETF ($IWLD)

iShares Core MSCI World Ex Aus ESG ETF (IWLD) share price over the last year: started at A$64.65, ended at A$72.34, a change of +11.9%. Range over the period: high A$72.35, low A$60.81. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $72.34 · Daily: 0.06% · AUM: $1.84B · MER: 0.09%

iShares Core MSCI World Ex Australia ESG ETF ($IWLD) is designed to track the MSCI World Ex Australia Custom ESG Leaders Index. That index covers developed market equities from outside Australia, screened to target companies that rate as leaders on environmental, social and governance criteria.

The ex-Australia structure means the portfolio holds companies from international developed markets, with no Australian equities included. The ESG Leaders filter narrows those holdings to companies with higher ESG ratings within that universe. The fund's composition can therefore look quite different from a broad, unscreened global index.

3. Vanguard Ethically Conscious Intl Shs Idx ETF ($VESG)

Vanguard Ethically Conscious Intl Shs Idx ETF (VESG) share price over the last year: started at A$106.73, ended at A$120.60, a change of +13.0%. Range over the period: high A$120.79, low A$99.99. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $120.60 · Daily: 0.1% · AUM: $1.53B · MER: 0.18%

Vanguard Ethically Conscious International Shares Index ETF ($VESG) is designed to track an ethically screened international shares index, covering equity markets outside Australia through a responsible investment approach. The fund aims to hold or be exposed to most of the securities in its benchmark. Individual security weightings are permitted to vary marginally from the index from time to time, so the portfolio may not mirror the benchmark exactly at any given point.

4. Betashares Australian Sustainability Leaders ETF ($FAIR)

Betashares Australian Sustainability Leaders ETF (FAIR) share price over the last year: started at A$22.29, ended at A$19.45, a change of −12.7%. Range over the period: high A$22.91, low A$17.77. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $19.45 · Daily: -0.2% · AUM: $1.11B · MER: 0.49%

Tracking a sustainability-focused benchmark within Australian equities, Betashares Australian Sustainability Leaders ETF ($FAIR) is designed to follow the Nasdaq Future Australian Sustainability Leaders Index. The index applies exclusion screens first – setting aside companies with material links to fossil fuels or activities deemed to carry significant negative impacts on people, communities or the environment. Companies that clear those screens can receive preference if the index methodology identifies them as Sustainability Leaders.

5. State Street SPDR S&P/ASX 200 ESG ETF ($E200)

State Street SPDR S&P/ASX 200 ESG ETF (E200) share price over the last year: started at A$27.18, ended at A$28.04, a change of +3.2%. Range over the period: high A$28.97, low A$25.96. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $28.04 · Daily: 0.3% · AUM: $417.4M · MER: 0.05%

The S&P/ASX 200 ESG Index starts from the same broad universe as the S&P/ASX 200, then filters it down to securities that meet sustainability criteria. Crucially, it's designed to keep industry group weights close to the parent index, so the ethical screen doesn't sharply tilt the portfolio away from any particular sector. State Street SPDR S&P/ASX 200 ESG ETF ($E200) aims to closely match the returns of that index, before fees and expenses, using a market-cap-weighted structure that favours the largest qualifying companies.

6. VanEck MSCI International Sustainable Equity ETF ($ESGI)

VanEck MSCI International Sustainable Equity ETF (ESGI) share price over the last year: started at A$35.40, ended at A$38.15, a change of +7.8%. Range over the period: high A$38.71, low A$31.81. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $38.15 · Daily: 0.1% · AUM: $255.2M · MER: 0.55%

VanEck MSCI International Sustainable Equity ETF ($ESGI) is designed to track an index of internationally listed companies screened for sustainability through analysis by MSCI ESG Research LLC. The process draws on MSCI's ESG (environmental, social and governance) research to determine which companies qualify as sustainable before they're included in the portfolio. The index composition is shaped by those sustainability criteria rather than market capitalisation alone, so the holdings look different from a broad international equity index.

7. VanEck MSCI Australian Sustainable Equity ETF ($GRNV)

VanEck MSCI Australian Sustainable Equity ETF (GRNV) share price over the last year: started at A$34.01, ended at A$32.40, a change of −4.7%. Range over the period: high A$35.99, low A$29.06. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $32.40 · Daily: -0.7% · AUM: $254.1M · MER: 0.35%

Built around MSCI ESG Research LLC's screening methodology, VanEck MSCI Australian Sustainable Equity ETF ($GRNV) aims to track an index of Australian companies selected on the basis of environmental, social and governance criteria. The fund holds a diversified portfolio of domestic equities that have cleared that sustainability filter. Because the approach is index-based, $GRNV's holdings shift when MSCI's index is rebalanced rather than at the fund manager's discretion.

8. BetaShares Ethical Diversified High Growth ETF ($DZZF)

BetaShares Ethical Diversified High Growth ETF (DZZF) share price over the last year: started at A$31.43, ended at A$31.73, a change of +1.0%. Range over the period: high A$32.65, low A$27.72. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $31.73 · Daily: -0.2% · AUM: $118.2M · MER: 0.39%

BetaShares Ethical Diversified High Growth ETF ($DZZF) is a fund-of-funds: rather than holding individual shares directly, it invests in a blend of underlying index-tracking ETFs, each selected according to ethical investment criteria. The portfolio aims to hold a long-term average of 90% in growth assets and 10% in defensive assets, targeting a high growth risk-return profile over time.

The ethical screens are applied at the underlying ETF level, so the exclusions flow through to the overall portfolio rather than being a separate overlay. Because the fund passively blends its underlying holdings in proportion to a set strategic asset allocation, the approach is rules-based rather than actively managed. That structure means the mix of asset classes is intended to stay close to the 90/10 target, though actual allocations will shift as markets move.

9. Betashares Climate Change Innovation ETF ($ERTH)

Betashares Climate Change Innovation ETF (ERTH) share price over the last year: started at A$9.41, ended at A$10.46, a change of +11.2%. Range over the period: high A$11.39, low A$9.40. Source: Stake market data. Past performance is not a reliable indicator of future performance.

Price: $10.46 · Daily: -0.4% · AUM: $83.4M · MER: 0.65%

Built around the Solactive Climate Change and Environmental Opportunities Index, the Betashares Climate Change Innovation ETF ($ERTH) is designed to cover up to 100 global companies at a time. To qualify, a company must earn at least 50% of its revenues from products or services that reduce or avoid CO2 emissions. That threshold ties index membership to how a company actually makes money from climate-related activities.

$ERTH holds each constituent in proportion to its index weighting, so the portfolio adjusts as the index rebalances. The global mandate draws from multiple markets wherever companies can clear the revenue test.

Common questions

How do I invest in ethical ETFs in Australia?

All nine funds in this list trade on the ASX, so you can buy and sell them through any brokerage platform with ASX access. You search by ticker, place an order as you would for any share, and the standard T+2 settlement cycle applies. Funds like $ETHI, $IWLD and $VESG hold global companies but trade in Australian dollars on the ASX – no foreign brokerage account required.

What are the key risks of ethical ETFs?

Like any share-market investment, ethical ETFs carry market risk – their value moves with the underlying holdings. Funds exposed to international markets also carry currency risk: because holdings are priced in foreign currencies, an unhedged fund's returns in AUD will shift with exchange rates as well as stock performance. Ethical screening can also introduce concentration risk, since excluding certain industries or companies means the portfolio diverges from a broad market index, which can affect performance in either direction.

How do ethical ETFs decide which companies qualify?

The screening methods vary considerably across this list. Some funds filter by carbon efficiency relative to industry peers, some apply ESG ratings produced by research agencies like MSCI, and some exclude specific industries outright – fossil fuels, weapons or tobacco, for example. $ERTH takes a different approach again, requiring companies to earn at least 50% of their revenue from products or services that help reduce or avoid carbon emissions. Two funds can carry the same "ethical" label while holding quite different companies, so the index methodology is worth checking.

What's the difference between Australian-focused and international ethical ETFs in this list?

Three funds here – $FAIR, $E200 and $GRNV – hold Australian companies only, tracking domestic ethical or ESG indices. Most of the others invest in global companies, adding exposure to stocks priced in currencies other than the Australian dollar. An unhedged international fund's returns in AUD will shift with exchange rate movements as well as underlying stock performance, while an Australian-only fund carries no currency risk of that kind.

Disclaimer

Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, and particular needs before making an investment decision. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

This is not personal financial advice nor a recommendation to invest in the securities listed. Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

Please refer to hellostake.com/pricing for the fees that apply. When you trade securities priced in another currency, currency conversion fees may apply and movements in the exchange rate may affect your returns.

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This article combines AI and human review from our analysts to bring you accurate, informative investing content at speed. For questions or suggestions, contact stakedesk@stake.com.au.