Spotlight: Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH)
Each month in our ETF Spotlight series, we put the focus on one of the ETFs inside our ETF portfolios or available through InvestSMART Custom.
This time, we're looking at the Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH), which we use in our Ethical Growth and Ethical High Growth portfolios. Here's what you need to know.
About the Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH)
The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) gives investors exposure to a diversified portfolio of Australian companies but with several exclusions. It tracks the FTSE Australia 300 Choice Index which excludes companies that have a "specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons". Companies that have been involved in behaviour that goes against the UN Global Compact are also excluded.
The ETF suits investors seeking regular income and long-term capital growth as well as an ethical tilt. Like most equity ETFs, it can be volatile so the minimum suggested investment timeframe is seven years.
Here are a few quick facts about VETH:
- Investment manager: Vanguard
- Inception date: 12 October 2020
- Size: $613 million
- Management fee: 0.16% p.a.
- Benchmark index: FTSE Australia 300 Choice Index
- InvestSMART rating: 4 stars
- Distribution frequency: Quarterly
Where is VETH invested?
The top 10 holdings, which make up about 50% of the portfolio, are listed below.
Top 10 holdings
|
Company |
% of net assets |
|
Commonwealth Bank of Australia |
12.61% |
|
National Australia Bank Ltd |
5.87% |
|
Westpac Banking Corp |
5.83% |
|
Wesfarmers Ltd |
4.88% |
|
ANZ Group Holdings Ltd |
4.80% |
|
CSL Ltd |
4.44% |
|
Goodman Group |
3.37% |
|
Macquarie Group Ltd |
3.29% |
|
Telstra Group Ltd |
2.85% |
|
Northern Star Resources Ltd |
2.43% |
Source: Vanguard. Holdings as of 31 October 2025.
VETH's biggest sector weightings include Financials (40.7%), Basic Materials (14.9%), Real Estate (9.9%), Consumer Discretionary (8.6%) and Health Care (8.1%), with smaller allocations across other sectors as at 31 October 2025.
What are the fees?
VETH charges a management fee of 0.16% a year. That's a touch higher than broad Australian equity ETFs but still well below the fees charged by other ethical funds such as the Betashares Australian Sustainability Leaders ETF (ASX: FAIR) at 0.49% a year and the Russell Investments Australian Responsible Investment ETF (ASX: RARI) at 0.45% a year.
How has VETH performed?
VETH has delivered solid performance, returning an average of 11.36% a year since it launched in October 2020. Over the 12 months to the end of October 2025, it gained 14.22%.
These figures include capital growth and distributions, and VETH has delivered a steady income stream along the way.
VETH performance
|
1 year |
3 years (p.a.) |
5 years (p.a.) |
SI p.a.1 |
|
|
Total return |
14.22% |
14.13% |
12.24% |
11.36% |
|
Benchmark |
13.94% |
14.17% |
12.26% |
11.39% |
Source: Vanguard. Returns for the period ending 31 October 2025. 1Since inception on 12 October 2020.
Key takeouts
VETH offers broad Australian equity exposure with an ethical tilt. It has delivered solid returns and a steady income stream. Of course, keep in mind that past performance is not a guarantee of future returns.
Want to compare ETFs? Check out our handy online ETF filter tool. It can help you narrow down your options based on filters such as investment category or InvestSMART's star rating.
InvestSMART also has a range of diversified portfolios that all come with a capped management fee. If you'd like help selecting the right style of portfolio for you check out our free statement of advice quiz. It will show you which InvestSMART ETF portfolio may best suit your goals and investment timeframe.
Frequently Asked Questions about this Article…
The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) is an exchange-traded fund that gives investors diversified exposure to Australian companies with an ethical tilt. Managed by Vanguard and launched on 12 October 2020, VETH tracks the FTSE Australia 300 Choice Index and is used in InvestSMART’s Ethical Growth and Ethical High Growth portfolios.
VETH tracks the FTSE Australia 300 Choice Index, which excludes companies with specified business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. It also excludes companies involved in behaviour that breaches the UN Global Compact.
VETH charges a management fee of 0.16% per year, has assets of about $613 million, and pays distributions quarterly, according to Vanguard information provided in the article.
Since launch (12 October 2020) VETH has returned an average of 11.36% per year. For the 12 months to 31 October 2025 it returned 14.22%. The fund’s 3-year annualised return was 14.13% and the 5-year annualised return was 12.24% (returns include capital growth and distributions).
As of 31 October 2025 the top 10 holdings made up about 50% of VETH’s portfolio. The largest positions were Commonwealth Bank of Australia (12.61%), National Australia Bank (5.87%), Westpac (5.83%), Wesfarmers (4.88%), ANZ Group (4.80%), CSL (4.44%), Goodman Group (3.37%), Macquarie Group (3.29%), Telstra (2.85%) and Northern Star Resources (2.43%).
As of 31 October 2025 VETH’s biggest sector weightings were Financials (40.7%), Basic Materials (14.9%), Real Estate (9.9%), Consumer Discretionary (8.6%) and Health Care (8.1%), with smaller allocations across other sectors.
Yes — VETH is positioned for investors seeking regular income and long-term capital growth with an ethical screen. Like most equity ETFs it can be volatile, so the article recommends a minimum investment timeframe of seven years.
VETH’s management fee of 0.16% p.a. is lower than some other ethical Australian equity ETFs referenced in the article — for example Betashares Australian Sustainability Leaders ETF (ASX: FAIR) at 0.49% p.a. and Russell Investments Australian Responsible Investment ETF (ASX: RARI) at 0.45% p.a.
Call 1300 880 160
Start a chat
Schedule a call
