Is FAIR a good ETF?
FAIR is the BetaShares Australian Sustainability Leaders ETF from BetaShares. It tracks the Nasdaq Future Australian Sustainability Leaders Index. We classify it under AU and ESG. With about $1.03 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2017-12-13 (almost 9 years ago).
On a total-return basis, FAIR has delivered 1.21% a year over 5 years (ranked 150th of 189 ETFs we track), 4.6% a year over 3 years (ranked 191st of 236 ETFs we track), and -12.69% a year over 1 year (ranked 295th of 318 ETFs we track). It has trailed most comparable ETFs over the periods we measure, so look closely at whether its strategy fits what you're after.
The management fee of 0.49% is on the higher side. For comparison, similar ETFs average around 0.34%. If cost is your priority, E200 (0.05%), VAS (0.07%), and IESG (0.09%) cover similar ground for less. It pays a moderate 3.13% yield.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 14.53%), meaning the kind of swings you'd expect from a diversified equity fund. Its 3-year Sharpe ratio of 0.1 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 22% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Things to watch
- Has lagged most peers over 1 year (295th of 318).
- Pricier than similar ETFs, which average around 0.34%.
- Cheaper alternatives exist: E200, VAS, and IESG.
- Weak risk-adjusted returns (3-year Sharpe ratio 0.1).
Good to know
- Distributions are 65% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What FAIR's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Australian shares. Home-market familiarity, fully franked dividends and no currency risk for local investors — but very concentrated in banks and miners, which dominate the index.
- Market regime
- Sensitive to commodity prices, Chinese demand and domestic interest rates. Generous income, but narrow sector diversification.
- In a portfolio
- A natural core for Australian investors thanks to franking, but should be paired with global exposure so you aren't over-reliant on a handful of banks and resource giants.
Screens out, or tilts away from, companies on environmental, social and governance criteria — letting you align your money with your values.
- Market regime
- Performance broadly tracks the wider market, but can drift when excluded sectors (e.g. energy, mining, weapons, tobacco) have a strong or weak run. Fees are usually a touch higher.
- In a portfolio
- Suitable as a core or near-core holding for values-driven investors; just understand which sectors are excluded and why returns may diverge from the broad index.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.