sustainable investment
platform guide
for australians

the four types of sustainable platforms

Not all sustainable investment platforms work the same way. Understanding the differences helps you choose one that matches your situation, not someone else's.

managed fund apps

Professional fund managers build and maintain the portfolio. You invest money, they handle everything else. Examples: inaam (curated 24-company impact fund), Australian Ethical (managed funds with comprehensive ESG screening). Best for people who want impact investing without making investment decisions themselves.

micro-investing apps

Designed for small, regular investments. Often include round-ups or automatic deposits. Examples: Raiz Invest (ethical portfolio option among several), Spaceship (Earth portfolio with sustainability tilt). Best for people who want to invest passively with minimal effort.

ETF platforms

ETFsExchange-Traded Funds. Investment funds traded on a stock exchange, combining the diversification of managed funds with the tradability of individual shares. are funds you buy and sell on the stock exchange, like shares. Examples: BetaShares ETHI (ethical screening), Vanguard VESG (ESG integration). You need a brokerage account to buy them. The ASX ETF investor hub explains how exchange-traded funds work in practice. Best for self-directed investors who want low fees and liquidity.

super funds

Sustainable superannuation for retirement savings. Examples: Future Super (fossil-fuel-free screening), Australian Ethical Super. Your money is locked until retirement (with limited exceptions). Best for aligning your retirement savings with your values.

what "sustainable" actually means

Here is the uncomfortable truth: there is no single legal definition of "sustainable" in Australian investment marketing. ASICAustralian Securities and Investments Commission. The government body that regulates financial services and consumer credit in Australia. has cracked down on greenwashing, but the word itself covers a range of approaches. ASIC's MoneySmart investing guide covers what to check before investing in any fund.

Some platforms exclude harmful industries and call that sustainable. Others actively invest in companies solving problems and call that sustainable. Both technically are, but the depth of impact is different. A fund that excludes tobacco but still holds mining companies is "sustainable" by its own definition. Whether that matches your definition is a different question.

The PDS tells you exactly what methodology a fund uses. Read it. If a platform calls itself sustainable but can't explain its screening process clearly, be sceptical.

platform comparison

how to avoid greenwashing

Three practical steps:

• Read the methodology, not just the marketing. Every fund's PDS explains what it screens for. If the marketing says "sustainable" but the PDS shows weak exclusions, the marketing is doing heavy lifting.
• Check the holdings. Can you see what companies the fund owns? If not, you can't verify any of the claims.
• Look at what's excluded and what isn't. A fund that excludes tobacco but holds fossil fuel companies has a different definition of sustainable than you might expect.

etf vs managed fund: the trade-offs

ETFs are cheaper. Management fees for BetaShares ETHI are 0.59% per year. Vanguard VESG is 0.18%. That is significantly less than most managed funds. If cost efficiency is your priority, ETFs win.

Managed funds are more curated. A human team selects and monitors companies, making judgment calls that rules-based ETFs can't. inaam's 24-company portfolio is an example of deep curation. Australian Ethical's team actively engages with companies. If impact depth is your priority, managed funds may be worth the higher fees.

Neither approach is objectively better. It depends on what you value more: breadth and low cost, or depth and active management. The Responsible Investment Association Australasia tracks the performance of responsible investments across Australia and New Zealand.

the super fund blind spot

Most conversations about sustainable investing focus on apps and ETFs. But for the majority of young Australians, super is your largest single investment. Your employer puts money in every pay cycle, and that money gets invested on your behalf. If you've never checked where, it's probably in a default "balanced" option that holds whatever the fund manager decided.

Switching your super allocation to an ethical or sustainable option takes about ten minutes online. You don't need to change funds (though you can). Most major super funds now offer at least one ESG or sustainable option within their existing product. MoneySmart's super guide walks through how to compare options and switch.

Future Super is a standalone ethical super fund. Australian Ethical offers both super and managed funds. If you want your retirement savings aligned with your values, this is the highest-impact change you can make with the least effort.

which type suits your situation

Cut through the noise with this decision framework:

• "I have $10-50/month and don't want to think about it." Managed fund app (inaam, Raiz, Spaceship). Set up automation and forget it.
• "I want to choose my own investments and keep fees low." ETFs through a brokerage account. BetaShares ETHI or Vanguard VESG. You'll need to place trades yourself.
• "I have $1,000+ and want the deepest ethical screening." Australian Ethical managed funds. Decades of track record, comprehensive Ethical Charter.
• "I want my retirement savings to match my values." Switch your super allocation to an ethical option, or move to Future Super or Australian Ethical Super.
• "I care most about seeing exactly where my money goes." Look for platforms with full holdings disclosure and per-company impact data. Our transparency guide covers what good disclosure looks like.

You don't have to pick just one. Many people have their super in an ethical fund, a managed investment app for regular contributions, and an ETF for additional lump-sum investing. The combination approach gives you coverage across retirement, medium-term, and flexible savings.

If you want to see how inaam compares to other platforms on fees, features, and impact depth, our comparison page lays it out side by side.

related reading

frequently asked questions

what types of sustainable investment platforms exist in australia?

Four main types: managed fund apps (professionals manage your portfolio), micro-investing apps (small automatic investments), ETF platforms (buy ethical funds on the stock exchange), and super funds (sustainable retirement savings). Each has different minimums, fees, and impact depth.

what does "sustainable" actually mean when platforms use the word?

There is no single legal definition. Some platforms exclude harmful industries, some select companies with strong ESG scores, some actively invest in companies solving problems. The PDS tells you the actual methodology. If a platform calls itself sustainable but can't explain how, be sceptical.

how do i avoid greenwashing when choosing a sustainable platform?

Read the PDS and methodology, not just the marketing. Check if the fund publishes full holdings. Look at what the fund actually excludes. ASIC has taken action against greenwashing, but the responsibility is still on you to verify claims against reality.