Spotlight: InvestSMART Ethical Growth Portfolio
It's been a little more than decade since InvestSMART launched our first investment portfolios but the Ethical Growth Portfolio is one of our newer options, having made its debut in November 2020.
About the InvestSMART Ethical Growth Portfolio
The Ethical Growth Portfolio invests in a portfolio of five to 15 exchange-traded funds (ETFs) with an emphasis on ethical 'growth' assets such as Australian and international shares.
It's best suited to Aussies investing for longer-term goals as the minimum suggested investment timeframe is five years.
Here are a few quick facts about the Ethical Growth Portfolio:
- Inception date: 1 November 2020
- Suggested timeframe: 5 years
- Risk: High
- Minimum initial investment: $10,000 (or $4,000 with Fundlater)
- Management fee: 0.44% p.a. capped at $880 p.a.
- Admin fee: 0.11% p.a. includes buy-side brokerage costs.
- Benchmark Index: Morningstar® Australia Growth Target Allocation NR AUD
Where does the InvestSMART Ethical Growth Portfolio invest?
The Ethical Growth Portfolio has a high allocation of growth assets, with 38% invested in international equities and 29% in Australian equities as at 31 March 2025. The remaining 33% is in fixed interest (24.5%) and cash (8.5%).
The ETFs that InvestSMART currently includes in the Ethical Growth Portfolio are:
- Betashares Australian High Interest Cash ETF (ASX: AAA)
- BetaShares Sustainability Leaders Dvrsfd Bond ETF - Cur Hdg (ASX: GBND)
- Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG)
- Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH)
Some of the underlying ETF holdings include Commonwealth Bank, Apple, CSL, Microsoft and NVIDIA.
What are the fees?
InvestSMART's annual management fee is 0.44%, which equates to $44 per year on a $10,000 investment (the minimum). The management fee is capped at $880 per year for balances of $200,000 or more.
There is a flat admin fee of 0.11% per year, which includes all buy-side brokerage costs. This means you won't pay extra when you invest or add funds. Brokerage fees apply to sell transactions (including rebalances). Brokerage costs are $4.40 per trade or 0.044% of the value of the trade (whichever is higher) and are paid entirely to a third-party broker.
There are also indirect costs charged by the underlying ETFs and for the Ethical Growth Portfolio, these are estimated to be 0.23% a year.
How has the InvestSMART Ethical Growth Portfolio performed?
The Ethical Growth Portfolio has been a solid performer, averaging 7.69% a year since its inception in November 2020. In dollar terms, that means if you had invested $10,000 in the Ethical Growth Portfolio when it first launched, your investment would have been worth $13,870 at the end of March 2025
InvestSMART Ethical Growth Portfolio performance
|
1 year |
2 yrs p.a. |
3 yrs p.a. |
SI p.a.1 |
|
|
Capital return |
2.67% |
7.97% |
3.54% |
5.36% |
|
Income return |
2.53% |
2.84% |
2.78% |
2.33% |
|
Total return |
5.20% |
10.81% |
6.32% |
7.69% |
Returns to 31 March 2025. 1Since inception on 1 November 2020.
How does the InvestSMART Ethical Growth Portfolio compare to its peers?
The Ethical Growth Portfolio has outperformed the majority of its peers over the long term. As you can see from the table below, it has returned 6.32%p.a. over three years. The average return of the peer funds in this category was 5.13% over that same period.
Ethical Growth Portfolio performance vs peers
|
1 year |
2 yrs p.a. |
3 yrs p.a. |
SI p.a.1 |
|
|
Growth Portfolio |
5.20% |
10.81% |
6.32% |
7.69% |
|
Peers |
6.00% |
8.35% |
5.13% |
7.51% |
|
Excess to peers |
-0.80% |
2.46% |
1.19% |
0.18% |
Returns to 31 March 2025. 1Since inception on 1 November 2020.
With a flat admin fee of 0.11% a year and a management fee of 0.44% per year (capped at $880 per year), the Ethical Growth Portfolio's annual fee is lower than the average fee of its peer funds, which is sitting at 1.12% a year at the time of writing.
Key takeouts
The InvestSMART Ethical Growth Portfolio is ideal if you are looking for exposure to growth assets to diversify your investment portfolio and would like to focus on sustainable, responsible, and/or ethical investments. It's important to have a long-term view and be comfortable with a degree of volatility as there's a very high allocation to growth assets.
The fees are competitive and, while past performance is not a guarantee of future results, the portfolio's long-term returns have been strong.
If you'd like help selecting the right InvestSMART ETF portfolio for you check out our free statement of advice quiz. It will show you which one may best suit your goals and investment timeframe.
Frequently Asked Questions about this Article…
The InvestSMART Ethical Growth Portfolio is an investment option that focuses on ethical 'growth' assets, such as Australian and international shares, through a selection of five to 15 exchange-traded funds (ETFs). It is designed for long-term investors with a suggested investment timeframe of at least five years.
The portfolio has an annual management fee of 0.44%, capped at $880 per year for balances of $200,000 or more. Additionally, there is a flat admin fee of 0.11% per year, which includes buy-side brokerage costs. Indirect costs from the underlying ETFs are estimated to be 0.23% annually.
Since its inception in November 2020, the InvestSMART Ethical Growth Portfolio has averaged a total return of 7.69% per year. For example, a $10,000 investment at launch would have grown to $13,870 by the end of March 2025.
The portfolio invests heavily in growth assets, with 38% allocated to international equities and 29% to Australian equities. The remaining 33% is divided between fixed interest (24.5%) and cash (8.5%). It aims to provide exposure to sustainable and ethical investments.
The Ethical Growth Portfolio has outperformed many of its peers over the long term, with a three-year annual return of 6.32% compared to the peer average of 5.13%. Its fees are also lower than the average peer fund fee of 1.12% per year.
Some of the underlying ETF holdings in the portfolio include well-known companies such as Commonwealth Bank, Apple, CSL, Microsoft, and NVIDIA.
The minimum initial investment for the Ethical Growth Portfolio is $10,000. However, with Fundlater, you can start with as little as $4,000.
No, the Ethical Growth Portfolio is best suited for long-term investors, as the minimum suggested investment timeframe is five years. It involves a high level of risk due to its significant allocation to growth assets.
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