The VESG ETF offers very diversified exposure to companies listed across major global developed markets, while applying a responsible investment screen. It excludes companies with material exposure to areas such as fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment and weapons, as well as businesses involved in conduct deemed inconsistent with UN Global Compact principles. The ETF currently holds ~1500 stocks, with the 5 top holdings as follows:
- NVIDIA 7%, Apple Inc 6%, Microsoft 4%, Amazon 4%, and Alphabet 3% – delivering very significant exposure to the US tech and the AI buildout theme, it’s almost like a US tech ETF with some ethical positions around the edges.
The performance has been solid in 2026, gaining +3.7%, again with the returns in the unhedged ETF have been diluted by the strong $A, which is up ~7% year-to-date.
This large $1.5bn ETF attracts good low fees of 0.18%, especially considering its overseas exposure. Performance has been ok considering the strong $A and the ETF pays a dividend quarterly – last year it yielded 1.6%, unfranked.
For most investors, VESG is the more compelling option, with lower fees, broader diversification, quarterly distributions and performance that has beaten the ETHI despite charging a fraction of the cost. Over the long term, the fee differential becomes difficult to ignore, particularly in an environment where passive ESG exposure has become increasingly commoditised. Recent fund flow trends suggest investors are increasingly prioritising cost-efficient ethical exposure over higher-cost sustainability overlays, with VESG continuing to attract the stronger inflows.
- We can see the VSEG ETF continuing to trade higher through 2026 in line with our bullish outlook towards global equities.
