Is VETH a good ETF?
VETH is the Vanguard Ethically Conscious Australian Shares ETF from Vanguard. We classify it under AU, Thematic, and ESG. With about $638 million in assets it is a solidly established fund.
On a total-return basis, VETH has delivered 6.52% a year over 5 years (ranked 102nd of 188 ETFs we track), 9.69% a year over 3 years (ranked 122nd of 226 ETFs we track), and -0.97% a year over 1 year (ranked 264th 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 0.16% is reasonable. That's cheaper than the typical 0.39% for similar ETFs. If cost is your priority, IESG (0.09%) cover similar ground for less. It pays a moderate 2.85% yield.
Over the past 5 years its volatility has been moderate (annualised standard deviation around 14.1%), meaning the kind of swings you'd expect from a diversified equity fund. Its 5-year Sharpe ratio of 0.29 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is very low at about 9% a year — the portfolio barely changes from year to year, much like a classic buy-and-hold index fund. Very little of its return is lost to trading or to capital gains being realised early, making it highly tax-efficient.
Strengths
- Low-cost: a 0.16% management fee keeps more of the return in your pocket.
Things to watch
- Has lagged most peers over 1 year (264th of 308).
- Cheaper alternatives exist: IESG.
- Weak risk-adjusted returns (5-year Sharpe ratio 0.29).
- Highly concentrated single-theme bet — keep the position size small.
Good to know
- Distributions are 78% franked, a tax bonus for Australian residents.
- Australian focus means franked dividends and no currency risk, but heavy concentration in banks and miners.
What VETH'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.