The ETHI ETF aims to track the performance of an index that includes a portfolio of large global stocks identified as “Climate Leaders” that have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations. Effectively, the ETHI is the global counterpart to FAIR. Instead of screening Australian companies, it applies the same ethical framework to large international companies, giving Australian investors access to a diversified portfolio of the world’s leading sustainable businesses in a single ASX-traded, AUD-denominated ETF. The ETF currently holds 215 stocks, with the 5 top holdings as follows:
- Broadcom Inc 5%, Apple Inc 4%, NVIDIA 4%, Visa 4%, and ASML Holdings 4% – delivering significant exposure to the AI buildout.
The performance has been okay over three years, gaining +12.7% pa, but it’s down 3.2% in 2026, again missing out on exposure to the energy sector.
This large $3.7bn ETF attracts a higher fee structure at 0.59% – high for this type of product, and considering ~70% of positions are held overseas, we would have hoped for more perfformance, although a strong $A hasn’t helped given it is unhedged. The ETF does pay a dividend twice a year, and last year it yielded 2.2%, unfranked.
- We can see the ETHI ETF trading higher through 2026 in line with our bullish outlook towards global equities.
