In addition to superannuation funds and ASX listed cleantech companies, managed funds with a sustainability filter exist within the ethical and socially responsible investment (SRI) space. Ethical funds use a mixture of positive and negative screens.
Negative screens are used to prevent investment in companies from those industries. Historically they included:
- Tobacco
- Weapons manufacture
- Gambling
- Pornography
A growing number of ethical fund managers are now offering products that include a negative screen for:
- Fossil fuels
- Mining
- Environmental destruction
Positive screens are used either in place of or in addition to the negative screens for more focused funds, they can include:
- Renewable energy (solar, wind, hydro, wave)
- Products that improve the environment
- Agriculture conducted in a sustainable and humane way
- Education
The Responsible Investment Association Australia is the peak industry body representing responsible and ethical investment managers in Australia. They actively maintain a list of available investment options including managed funds.
ASX Listed Ethical, Responsible or Impact Funds
Fund Name | ASX Code | Active/Passive |
Pengagna International Equities Limited | PIA | Active |
Morphic Ethical Equities Fund Ltd | MEC | Active |
Vanguard Ethically Conscious Global Aggregate Bond Index Hedged ETF | VEFI | Passive |
eInvest Future Impact Small Caps Fund (Managed Fund) | IMPQ | Active |
BetaShares Sustainability Leaders Diversified Bond ETF – Currency Hedged | GBND | Passive |
BetaShares Global Sustainability Leaders ETF – Currency Hedged | HETH | Passive |
Vanguard Ethically Conscious International Shares Index ETF | VESG | Passive |
BetaShares Global Sustainability Leaders ETF | ETHI | Passive |
ETFS S&P Biotech ETF | CURE | Passive |
ETFS Battery Tech & Lithium ETF | ACDC | Passive |
VanEck Vectors MSCI International Sustainable Equity ETF | ESGI | Passive |
Russell Australian Responsible Investment ETF | RARI | Passive |
InvestSMART Ethical Share Fund (Managed Fund) | INES | Active |
VanEck Vectors MSCI Australian Sustainable Equity ETF | GRNV | Passive |
BetaShares Australian Sustainability Leaders ETF | FAIR | Passive |
Respond to ASX LISTED ETHICAL, RESPONSIBLE OR IMPACT FUNDS