VASvsFAIR
Is ethical screening worth the higher fee for ASX exposure?
Vanguard Australian Shares Index ETF · BetaShares Australian Sustainability Leaders ETF
FAIR costs 42bp more than VAS for ESG screening that excludes gambling, weapons, tobacco and fossil fuels from the ASX 200. Whether that premium is worth it depends on how much weight you place on ethical criteria - the performance difference over time has been modest.
Score Breakdown
Fund Profiles
As Australia's largest ETF by assets under management, VAS is managed by Vanguard and tracks the S&P/ASX 300 Index, covering 300 of the biggest companies listed on the ASX. By including 100 additional stocks beyond the ASX 200, VAS offers slightly broader diversification across mid-cap names that ASX 200 ETFs miss, while still capturing the same large-cap heavyweights. Investors seeking the most comprehensive single-fund Australian equity exposure - with franking credits flowing through distributions - will find VAS an excellent core domestic holding for portfolios and SMSFs alike.
Offering ethically screened Australian equity exposure, FAIR is managed by BetaShares and tracks the Nasdaq Future Australian Sustainability Leaders Index. The fund applies rigorous ESG filters to the ASX universe, excluding companies involved in fossil fuels, gambling, weapons, and tobacco while retaining exposure to franked dividend-paying Australian companies. It suits socially conscious Australian investors and SMSF trustees who want domestic equity exposure aligned with their values without building a portfolio of individual stocks.