AustralianSuper vs Australian Ethical Super
They may have similar names, but they're two completely diferent super funds.
Key takeaways
- AustralianSuper is an industry super fund, while Australian Ethical Super is a retail super fund.
- AustralianSuper only offers 1 ethical investment option, while all of Australian Ethical Super's investment options focus on ethical investing.
- AustralianSuper has lower fees than Australian Ethical Super across most investment options.
| AustralianSuper | Australian Ethical Super | |
|---|---|---|
| Type of fund | Industry super fund | Retail fund |
| Number of members | 3.4 million members | 120,000 members |
| Funds under management | $341 billion | $4.3 billion |
| Default investment option | AustralianSuper Balanced This is a pre-mixed, diversified fund that invests your super in a range of assets with a strong allocation towards Australian and international shares, direct property and infrastructure. Investment allocation is the same for all members in the Balanced fund, regardless of age. It's an authorised MySuper product. | Australian Ethical Super Balanced Similar to AustralianSuper Balanced, Australian Ethical Super Balanced is a ready-made investment portfolio, but it has a strong focus on ethical investments. This fund invests in a mix of local and international shares, property and alternative assets. Investment allocation is the same for all members in the Balanced fund, regardless of age. It's an authorised MySuper product. |
| Performance | Past performance of AustralianSuper Balanced:
| Past performance of Australian Ethical Super Balanced:
|
| Fees | Here's how much you'd pay in fees for one year if you had the following amounts invested in AustralianSuper Balanced:
| Here's how much you'd pay in fees for one year if you had the following amounts invested in Australian Ethical Super Balanced:
|
| Additional diversified investment options | If you don't want to invest in the default option (AustralianSuper Balanced), you can choose to invest your super in one of the following pre-made investment options instead:
| If you don't want to invest in the default option (Australian Ethical Balanced), you can choose to invest your super in one of the following pre-made investment options instead:
|
| Single-asset class investment options | If you want to design your own investment mix, you can invest your super in one or more of the following individual asset classes:
| If you want to design your own investment mix, you can invest your super in one or more of the following individual asset classes:
|
| Ethical investment | AustralianSuper offers one dedicated ethical investment option: AustralianSuper Socially Aware. This option doesn't invest in Australian or international companies that directly own coal and fossil fuel reserves, produce tobacco or those which have single-gender boards. AustralianSuper lists all its fund holdings on its website. Past performance of AustralianSuper Socially Aware:
If you had $50,000 invested in AustraliaSuper Socially Aware you'd pay annual fees of $402. | Unlike most other super funds which may offer one single ethical-themed investment option (if any at all), Australian Ethical Super is an ethical investment fund in its entirety. Each investment option is an ethical investment option. Australian Ethical says it invests in companies that seek to have a positive impact on the planet, people and animals. This means it actively seeks investments in renewable energy, sustainable products, plant-based meat alternatives and healthcare. It also actively avoids any investment in coal, oil, tobacco, logging, gambling and unsustainable food production including live animal exports and companies which exploit workers. Australian Ethical Super also actively campaigns for action on climate change and responsible agriculture. It is certified by the Responsible Investment Association Australasia. It's incredibly transparent on its approach to investing and you can see each company it invests in on its website as well as its position on certain industries. |
| Mobile app | The AustralianSuper app has a 3.6-star rating from users in the Google Play Store and a 3-star rating in the Apple App Store. | Australian Ethical Super app has a 1.9-star rating from users in the Google Play Store and a 3.2-star rating in the Apple App Store. |
| Read more | More Info | More Info |
Our expert says: Choosing a super fund
"Choosing super funds can feel overwhelming, but it gets easier once you've narrowed it down to a couple of options. If you can't decide between two similar funds, compare the fees and fund performance. Don't just look at the last year, but look at 5 and 10-year performance. And make sure you're comparing similar fund options. A high growth fund will have different performance to a balanced fund. "
How do the default MySuper products compare?
AustralianSuper Balanced and Australian Ethical Super Balanced are both MySuper products and both are pre-mixed, diversified funds. They both have a very similar level of risk and have a similar level of exposure to international shares.
However, where they do differ is with Australian Ethical Super's complete focus on ethical and sustainable investing. While both funds may have similar levels of exposure to shares, the individual companies each invests in are quite different.
Finder survey: How confident are Australians that ethical super funds deliver competitive financial returns?
| Response | 75+ yrs | 65-74 yrs | 55-64 yrs | 45-54 yrs | 35-44 yrs | 25-34 yrs | 18-24 yrs |
|---|---|---|---|---|---|---|---|
| Very confident | 4.26% | 1.21% | 1.91% | 2.98% | 2.17% | 2.11% | 1.9% |
| Not confident | 2.13% | 1.21% | 3.18% | 2.38% | 0.54% | 2.11% | 0.95% |
| Somewhat confident | 9.09% | 6.37% | 4.76% | 7.61% | 13.16% | 11.43% | |
| I don't know | 1.21% | 1.91% | 2.38% | 1.63% | 2.11% | 0.95% |
Source: Finder survey by Pure Profile of 1016 Australians, December 2023
How do their fees and performance figures compare?
AustralianSuper Balanced and Australian Ethical Super Balanced have similar fees for smaller balances. However, for larger balances of $50,000 or higher Australian Ethical Super has higher fees than AustralianSuper across all investment options.
One reason for Australian Ethical Super charging higher fees is because its investment managers need to do a high level of research into each company it considers investing it, to ensure the company aligns with its strict and specific ethical standards.
These funds have achieved very similar returns over the last decade and both are top performing funds. However, AustralianSuper Balanced has slightly outperformed Australian Ethical Super Balanced.
How do the ethical investments compare?
If you're looking for an ethical super fund above all else, Australian Ethical Super will likely come out on top for you.
As well as excluding investment in fossil fuels and coal, Australian Ethical Super also excludes companies that harm animals in the form of live exports or traditional agriculture and farming which it deems unsustainable. Instead, it actively includes investments in plant-based meat alternatives and other sustainable products such as solar farming.
However, the AustralianSuper Socially Aware investment option does charge lower fees than Australian Ethical Super. So this could be something to consider if you're concerned about investing ethically but also want to keep your costs to a minimum.
If you're interested in investing your super ethically, you can compare these funds with a range of additional ethical super funds in our guide.
Want to keep comparing?
If you're not yet convinced that either AustralianSuper or Australian Ethical Super is right for you, or you simply want to see how they compare to others in the market, you can compare super funds with our guide.
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