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VESG

$101.97-0.31%Ethical / ESG50/100
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Vanguard Ethically Conscious Intl Shares Index ETF · Vanguard

Data as at 29 March 2026

TL;DR

Tracks global developed-market companies that meet FTSE4Good ESG standards. Managed by Vanguard at 0.16% per year — one of the cheapest ESG ETFs on the ASX.

MER (Annual Fee)
0.18%
#1 lowest in Ethical / ESG
1Y Return
+5.2%
3Y Return (p.a.)
+15.8%
Dividend Yield
1.54%
Trailing 12 months
AUM
$1,325.2M
Assets under management
Avg Daily Turnover
$927K
Avg shares × unit price
Unit Price
$101.97
As at 29 March 2026
Provider
Vanguard
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Strategy

Follows the FTSE4Good Developed Index, which applies ESG criteria developed by FTSE Russell to large and mid-cap companies across developed markets. The screening is less restrictive than ETHI.

Top Holdings

Key Fact

VESG charges 0.16% per year — significantly cheaper than ETHI (0.59%). The trade-off is that FTSE4Good's methodology is less stringent, so some companies that fail ETHI's exclusion criteria may still be held in VESG.

Suited for

Cost-conscious ESG investors who want broad developed-market exposure with basic sustainability screening. VESG is cheaper than ETHI and ESGI, though the FTSE4Good methodology is less restrictive.

Risks

FTSE4Good screens are less rigorous than ETHI's. Some investors find VESG includes companies they would prefer to exclude. ESG screening creates tracking difference versus the standard MSCI World index.

VESG Comparisons

ETFCheck Score50/100
Fees (40%)73
Fund Size (25%)53
Liquidity (20%)20
Yield (15%)22
How scores are calculated →
Other Ethical / ESG ETFs
ETHI
0.39% MER
52
FAIR
0.49% MER
38
ESGI
0.59% MER
29
ERTH
0.65% MER
4View all Ethical / ESG ETFs →

Frequently Asked Questions - VESG

Why is VESG significantly cheaper than other ethical international ETFs on the ASX?+
VESG benefits from Vanguard's scale-driven low-cost model, charging just 0.18% MER compared to ETHI at 0.39% and ESGI at 0.59%. It achieves this partly because its ethical screening is lighter, primarily excluding fossil fuels, tobacco, nuclear weapons, and controversial companies rather than applying comprehensive multi-layered ESG filters. For cost-conscious Australian investors and SMSF trustees, VESG offers the cheapest way to access ethically screened international equities on the ASX.
Does VESG's lighter screening approach actually compromise ethical standards?+
VESG uses a negative screening approach that excludes fossil fuels, tobacco, nuclear weapons, and companies involved in serious controversies, but it does not apply the broader exclusions covering gambling, conventional weapons, or detailed carbon thresholds that ETHI uses. Its 17.8% one-year return actually slightly outperformed ETHI, partly due to broader diversification. Investors with strong values-based requirements may prefer ETHI's stricter approach, while pragmatic investors may find VESG's screening sufficient.
How does VESG handle currency exposure for Australian investors?+
VESG is unhedged, meaning Australian investors are fully exposed to currency fluctuations between the Australian dollar and international currencies, primarily the US dollar, euro, and yen. A falling Australian dollar boosts VESG returns when converted back, while a rising dollar hurts. This is consistent with rival international ethical ETFs like ETHI, and many financial advisers recommend unhedged exposure for long-term holdings to capture natural currency diversification benefits.
Can VESG serve as a core international holding in an SMSF portfolio?+
VESG's broad diversification across approximately 1,500 international stocks, low 0.18% MER, and reasonable ethical screening make it a strong candidate for a core international holding within SMSF portfolios. Its 1.28% yield provides modest income, though distributions lack franking credits as holdings are international. SMSF trustees should note that foreign income tax offsets may apply at tax time, and VESG pairs efficiently with Australian ethical ETFs like FAIR for a complete responsible portfolio.