Is RARI a good ETF?
RARI is the Russell Investments Australian Responsible Investment ETF. We classify it under AU, Thematic, and ESG. With about $437 million in assets it is a solidly established fund.
On a total-return basis, RARI has delivered 7.3% a year over 10 years (ranked 67th of 108 ETFs we track), 7.2% a year over 5 years (ranked 98th of 188 ETFs we track), 10.22% a year over 3 years (ranked 117th of 226 ETFs we track), and 0.39% a year over 1 year (ranked 255th of 308 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 0.45% is on the higher side. For comparison, similar ETFs average around 0.39%. If cost is your priority, IESG (0.09%) and GRNV (0.35%) cover similar ground for less. It pays a high 5.69% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase, though 75% franking softens the blow for Australian residents.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 14.71%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.41 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is low at about 18% a year — it trades only a small slice of its holdings each year, so trading costs and tax on realised gains stay modest — typical of a passive index strategy.
Strengths
- High 5.69% income yield — good for investors who want regular cash flow.
Things to watch
- Has lagged most peers over 1 year (255th of 308).
- Pricier than similar ETFs, which average around 0.39%.
- Cheaper alternatives exist: IESG and GRNV.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- Weak risk-adjusted returns (10-year Sharpe ratio 0.41).
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Distributions are 75% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What RARI'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.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
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.