You can enjoy strong investment returns while knowing your super is helping support companies and projects that have a positive social and environmental impact.Â
The information in this table is based on data provided by SuperRatings Pty Limited ABN 95 100 192 283, a Corporate Authorised Representative (CAR No.1309956) of Lonsec Research Pty Ltd ABN 11 151 658 561, Australian Financial Services Licence No. 421445. In limited instances, where data is not available from SuperRatings for a product, the data is provided directly by the superannuation fund.
*Past performance data and fee data is for the period ending March 2025
An ethical super fund is one that invests its members' money in an ethical or socially responsible way.
Ethical can mean different things to different people, but generally it involves supporting companies and industries that are making a positive impact on our communities and on our environment, while actively excluding those that are making a negative impact.
Ethical investing has become more popular in recent years, and now accounts for 36% of the investment market in Australia.1
How ethical super funds invest your money
An ethical super fund is one that chooses investment options based on a set of social, environmental and ethical criteria. There is no set approach or rule to how ethical funds invest, but here's a list of the investments ethical funds tend to include and exclude from their portfolios.
What do ethical super funds invest in?
Renewable, clean energy projects like wind farms
Recycling and waste management
Companies that do not test on animals
Clean, efficient transport (like electric cars)
Healthcare and education
Innovative technology and sustainable products and manufacturing
What don't ethical super funds invest in?
Fossil fuel production
Coal mining
Tobacco and gambling
Pornography
Forest logging
Companies that test products on animals
Live animal exports
Some ethical investment funds also conduct a "best of sector" approach. This involves looking at a particular sector, for example banking, and selecting the companies that best meet its ethical criteria.
For example looking at all the banks, and instead of deciding that none meet the ethical criteria, investing in the one that is the closest fit. This way, you're still benefiting from the investment diversification and performance of that sector.
"A lot of people forget their superannuation represents the ability to influence outcomes. When considering which super fund to invest in, it's really important to be aware of performance and fees - but also to ensure your values are aligned. For example, if you're environmentally conscious, then you don't want your super to be invested in mining stocks. Superannuation is an endurance race; you'll have better success if your values are aligned with your investment decisions. "
There are several factors you should consider before choosing an ethical super fund, including:
1. Accreditation
The Responsible Investment Association of Australasia (RIAA) offers a Responsible Investment Certification to certain funds that meet its criteria. Some fund that have received this accreditation are Australian Ethical, UniSuper, Aware Super, Future Super and Australian Retirement Trust. A fund doesn't need to have this certification to be considered 'ethical', however it's handy to know that those that do have been independently verified.
2. Performance
While past performance does not indicate future performance, it's definitely worthwhile checking a super fund's investment performance to see the returns it has generated over the long term (for example 10+ years).
3. The companies it invests in
Take a closer look at the individual companies the fund will invest your money in. You'll find this information on the fund's website, or by contacting the fund directly. Are there any there that do not align with your values and beliefs?
4. Screening process
How rigorously does the super fund screen companies it considers for investment? Does it use negative screening, positive screening and/or a best of sector approach?
5. The fees
Some ethical super funds can charge quite high fees, in comparison to regular MySuper funds. You may decide this it worth it for you personally, based on your investment values. However, it's still worth comparing the fees among ethical funds themselves as these can vary greatly. A general rule of thumb is to aim for annual fees that are around 1% of your balance or less.
6. The risk level
Check how aggressively the ethical fund invests in growth assets like shares, and if this aligns with your desired risk level.
Pros and cons of joining an ethical super fund
Pros
You can invest your money in line with your values.
Know that your super isn't supporting industries you don't agree with.
You don't need to sacrifice investment returns to invest ethically.
There are more and more ethical investments becoming available, giving consumers lots of choice.
Cons
You might need to sacrifice some investment opportunities.
Excluding certain industries means your investment portfolio could be less diversified.
Less choice between super funds, as not all super funds offer an ethical investment option.
The fees do tend to be higher with ethical super funds.
What's the best ethical super fund?
We've narrowed it down to our 2 top picks, based on a range of selection criteria. However, keep in mind that our top picks may not always be best for you. Based on your situation, you may find certain features to be more or less important, so compare super fund options before you apply.
Best ethical super fund Australian Ethical Super Balanced
Australian Ethical seeks to invest in companies that have a positive impact on the planet, people and animals, such as renewable energy and healthcare while avoiding investments in coal, oil, tobacco and gambling.
We looked at each fund's current environmental performance, environmental targets and reporting and accreditation, analysing the fund's sustainable investment approach and the environmental performance of its portfolio.
Superfund
Australian Ethical Super Balanced
Fees on $5k balance (p.a.)
$123
Fees on $50k balance (p.a.)
$618
Fees on $100k balance (p.a.)
$1,168
What we like about Australian Ethical Super Balanced:
Certified sustainable. Australian Ethical is one of just a handful of super funds to be certified by the Responsible Investment Association Australasia for its commitment to responsible and sustainable investments.
Investment transparency. Australian Ethical Super provides a readily available list of all the companies it invests in on its website, so you can see exactly where your money is going.
Climate change awareness. Australian Ethical Super excludes all fossil fuel investments and most mining companies, while actively investing in renewable energy.
Best low-fee ethical super fund UniSuper - Balanced
UniSuper is an industry super fund with more than 620,000 members. Its Balanced option invests in a mix of different asset classes and charges some of the lowest fees of all default super products.
We looked at the ethical super funds in our database and filtered for the fund with the lowest annual fees based on a $50,000 balance.
Superfund
UniSuper - Balanced
Fees on $5k balance (p.a.)
$127
Fees on $50k balance (p.a.)
$406
Fees on $100k balance (p.a.)
$716
What we like about UniSuper:
Low fees. UniSuper has two ethical options (Sustainable Balanced and Sustainable High Growth) which both charge the lowest fees of all ethical funds in our database.
Finder Superannuation Awards winner. UniSuper Sustainable Balanced was named the Best Balanced Super Fund in the 2024 Finder Superannuation Awards.
High returns. UniSuper is consistently one of the top-performing funds in the market.
Keep an eye out for funds that make misleading or exaggerated claims about their ethical status in their marketing materials. According to the Finder Green Report 2023, ASIC issues more than $150,000 worth of greenwashing-related fines to financial service companies between October 2022 and May 2023.
Do ethical super funds underperform compared to normal super funds?
Ethical super funds have consistently performed as well as regular funds over the last few years, according to data from SuperRatings1. Over the last financial year, balanced ethical super funds like the Raiz Emerald (14.8%) and UniSuper Sustainable Balanced (12.2%) funds actually outperformed or equalled the best-performing standard balanced fund, before fees.
1. Choose an ethical fund. The comparison table above can help you choose a new super fund. 2. Join the new fund. Complete the online application form on the fund's website. 3. Move your super into your new fund. Enter the details of your previous fund when you submit the application form and the new fund will arrange for your balance to be transferred over. 4. Let your employer know. Let your employer know right away so they can pay your next super guarantee payment to the correct fund.
Have you decided an ethical super fund isn't what you're after? Maybe one of our best performing super funds picks will be right for you instead.
Frequently asked questions
What are the different types of ethical super funds?
There's two types of ethical super funds. The first option is a super fund which only offers ethical investment options to members, like Australian Ethical Super. These funds apply their ethical investment approach across all their products.
The other option is a retail or industry super fund that offers one dedicated ethical investment option among several other investment options, for example AustralianSuper or Australian Retirement Trust. These funds will usually offer a MySuper balanced investment option as the default option to members, and a socially responsible or ethical option for members who want to select this instead. However, the ethical investment approach isn't applied across all the fund's products.
What fees do ethical super funds charge?
Fees vary between funds, but ethical super funds do tend to charge slightly higher fees than some default MySuper funds offered by retail and industry funds. This is because of the comprehensive research that goes into each investment chosen by a responsible or ethical fund. However, you may find that actively-managed retail funds charge higher fees than some ethical super funds.
A relatively new ethical super fund may charge higher fees than one that has been established for a longer period of time. This is because an increase in the number of members may allow a fund to lower its investment fees.
Should I invest in an ethical super fund?
You don't have to invest in an ethical super fund - the decision is completely up to you as to how your super is invested. The basic premise behind ethical investing is that you put your money where your mouth is to support the causes and companies that match your values and beliefs. For example if you're passionate about climate change and want to see the end of coal mining, making sure your super isn't helping fund the coal mining sector is one way you can personally make an impact.
Why you can trust Finder's super fund experts
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees. Guaranteed.
You save time. We spend 100s of hours researching super funds so you can sort the gold from the junk faster.
You compare more. Our comparison tools bring you more super funds from across the market.
Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards. See full bio
Alison's expertise
Alison has written 651 Finder guides across topics including:
Going on parental leave will impact your super. Here are the rules for super on parental leave and how to look after your super balance while you're off work.
Superannuation has many benefits. It’ll help fund your retirement, but it also offers tax discounts, investment benefits and discounted insurance cover, too.
Explore essential components of retirement planning for a secure future. Dive into the intricacies of retirement planning, covering vital elements such as investment strategies, savings goals, and risk management. Gain valuable insights to chart your path towards a secure and fulfilling retirement.
We've analysed Australian super funds to find the best-performing super funds, the best industry super funds and the best super fund for low fees. Find the right super fund for you.
MySuper is a type of super fund with low fees and simple features. MySuper funds are often the default option, and it's where most of us have our super invested. Learn all about MySuper accounts here.
When you start your first job you'll need to open a bank account, a super fund and understand what your tax obligations are.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees. Guaranteed.
You save time. We spend 100s of hours researching super funds so you can sort the gold from the junk faster.
You compare more. Our comparison tools bring you more super funds from across the market.
