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Moving from a savings account to investing is a big step. Here is how the main sustainable investment platforms in Australia compare on fees, minimums, screening, and what they actually invest in.
If you have been keeping your money in a savings account and you are starting to think about investing, you are not alone. Savings rates in Australia have been sitting at 4-5% at the high end, but with inflation running at similar levels, your real return is close to zero. Investing means accepting market risk in exchange for potentially higher returns over a longer time horizon.
The first question most young Australians ask is: can I do this in a way that aligns with my values? The answer is yes. There are now multiple sustainable investment platforms available in Australia, each with different approaches, fee structures, and levels of impact screening.
The word gets used loosely. A genuinely sustainable investment platform should do at least one of these things:
Most ETFsExchange-Traded Funds. Investment funds listed on the stock exchange that you can buy and sell like shares. They typically track an index or a theme. labelled "sustainable" use negative screening. They take a broad index and remove the worst companies. Dedicated impact funds use positive selection. The depth of screening matters.
| platform | type | min investment | fees | screening depth | recurring |
|---|---|---|---|---|---|
| inaam | Managed fund (app) | $10/month | $10/month flat | Deep: positive selection, 24 companies | Yes (auto) |
| BetaShares ETHI | ASX-listed ETF | ~$10-15 + brokerage | 0.59% p.a. | Moderate: negative screening | Manual |
| Vanguard VESG | ASX-listed ETF | ~$50-70 + brokerage | 0.16% p.a. | Light: ESG tilt | Manual |
| Australian Ethical | Managed fund | $1,000 | 0.39%-1.59% p.a. | Deep: ethical charter screening | Yes |
| Spaceship Earth | Managed fund (app) | $1 | 0.00%-0.10% p.a. | Light: sustainability tilt | Yes |
Vanguard VESG wins on cost. At 0.16% per year, it is one of the cheapest sustainable options on the ASX. But the screening is light. It applies an ESG tilt to a broad international index rather than deeply screening for impact.
BetaShares ETHI wins on exclusion clarity. Their negative screening methodology is well-documented: no fossil fuels, weapons, gambling, or junk food. At 0.59% it is more expensive than Vanguard but the screening is meaningfully deeper.
Australian Ethical wins on track record. Operating since 1986 with a comprehensive ethical charter, they have the longest history of any ethical investment manager in Australia. The $1,000 minimum and percentage-based fees can be barriers for students.
Spaceship Earth wins on fee-free entry. No fees under $5,000 makes it the cheapest way to start. But the sustainability screening is a tilt, not a mandate.
inaam wins on impact transparency and simplicity. One fund, 24 companies, all disclosed, flat $10/month. If you want to know exactly where your money goes and why, this is the most transparent option. The flat fee structure becomes increasingly competitive as your balance grows.
Start by understanding that investing is different from saving. Your savings account protects capital but real returns after inflation are close to zero. Investing means accepting market risk for potentially higher long-term returns. Choose an ASIC-regulated platform with low minimums. Set up a small recurring amount you can afford to lose. Read the PDSProduct Disclosure Statement. Read this before investing. It explains the fund, risks, and fees. before investing. Keep your savings account as an emergency fund. Investing is for money you won't need for at least 3-5 years.
An ETFExchange-Traded Fund. Listed on the stock exchange, bought through a broker, trades like a share. is listed on the ASX and trades like a stock through a brokerage account. A managed fund is operated by a fund manager who handles everything. ETFs typically have lower fees but require you to manage purchases and pay brokerage per trade. Managed funds offer a more guided experience. inaam is a managed fund accessed through an app. BetaShares ETHI and Vanguard VESG are ETFs.
Not necessarily. Research from RIAA and Morningstar has shown comparable performance. However, past performance is not a reliable indicator of future results. All investments carry risk. Sustainable funds have different sector exposures which can lead to different performance patterns. The question is whether you are comfortable with the specific companies and sectors in the fund.
ASIC regulation is non-negotiable. After that: transparent screening methodology, fee structure that works for your balance size, recurring contribution options, and clear disclosure of what companies your money is invested in. The depth of "sustainable" varies enormously between platforms.