Investment principles

We recognise the important role that investment managers can play in promoting responsible investment practices. We are cognisant that large investors have a responsibility beyond managing the financial value of their own investment, and have an obligation to try to positively influence the way business is conducted, for the greater good.

We believe that by investing in our ethical ETFs, investors entrust us with the job of managing their capital in a way that aligns with their values. This means that our ETFs invest in companies (or exclude companies) in accordance with clear ethically focused rules and guidelines.

Where we can also make an impact is in ensuring we participate in proxy voting and engage with companies, for the long-term benefit of our investors.

Signatory to Principles for Responsible Investment (PRI)

Member of RIAA

Trusted by investors


Betashares’ range of ethical and responsible ETFs provides Australian investors with access to a diversified portfolio of sustainable, socially responsible companies or high-quality bonds that meet strict responsible investment standards, in a single, cost-effective ASX trade.

Proxy voting

We use the services of a proxy adviser, Institutional Shareholder Services (ISS), that provides us with governance research and voting recommendations.

We have adopted proxy voting guidelines, designed by ISS to have a strong focus on incorporating ESG considerations, compared to more mainstream benchmark voting policies.

The guidelines reflect the recognition that ESG factors can present material risks to portfolio investments. Our full proxy voting record is published on an annual basis and publicly available on our website.

Responsible Investment Committee

Betashares maintains a Responsible Investment Committee (RIC) for ETHI, FAIR and GBND.

The purpose of the RIC is to:

  • provide Betashares with general input and advice in relation to responsible investment policies and investments
  • provide expert assessment of whether the companies and issuers satisfy the negative and positive screens incorporated into the indices that these ETFs aim to track
  • provide oversight of proxy voting and engagement activities for these ethical ETFs.

The policy of each fund is to vote on all resolutions in a way that is consistent with the values embodied in the index rules for the fund.

Engagement activities

Engagement refers to how we seek information from companies about their business practices, and how we communicate our views and expectations.

If an issue arises in relation to a portfolio holding where the RIC believes there is a potential conflict with the fund’s values, or where the RIC believes a company could improve its ESG performance, delegates from the RIC will engage with the company to try to understand the situation in more detail and, if necessary, advocate for improvement.

If an investee fails to engage, or fails to commit to improvement, the RIC will consider additional actions, with the final point of escalation being the removal of the holding from the relevant fund. The approach depends on factors including the company’s track record, how proactive it is in response to the issue, and how willing it is to engage with us.

Raising bar on transparency

We understand that one of the biggest concerns for investors in ESG funds is the issue of ‘greenwashing’ – the misrepresentation of the extent to which a fund is environmentally friendly, sustainable or ethical. Betashares’ focus is to ensure that our funds are completely transparent and rules-based in terms of security selection and the application of ESG factors.

On the relevant fund page, you can find the screening process and exposure limit guidelines for our ethical and responsible investment ETFs.

We disclose impact metrics and alignment to the UN Sustainable Development Goals compared to the benchmark for ETHI, ERTH and FAIR.

On annual rebalance of our ethical equity funds, we publish a detailed summary of the results of the rebalance, including the reasons for exclusions and inclusions directly linked to the index screening methodologies.

Awards and certifications

Betashares is an award-winning ETF provider:

There are risks associated with an investment in Betashares Ethical ETFs, including:

  • DBBF, DGGF and DZZF: asset allocation risk, market risk, currency risk, underlying ETFs risk and index tracking risk.
  • GBND: interest rate risk, credit risk, international investment risk and non-traditional index methodology risk.
  • ETHI/HETH: market risk, international investment risk, non-traditional index methodology risk and foreign exchange risk (for ETHI).
  • FAIR: market risk, non-traditional index methodology risk and sector concentration risk.
  • ERTH: market risk, international investment risk, sector risk and non-traditional index methodology risk.

For more information on risks and other features of these ETFs, please see the relevant Product Disclosure Statement.