Aussie FIRE | Financial Independence Retire Early 66. Q&A: Ethical ETFs
Mar 20, 2026
A lively discussion about ethical investing and the real limits of ESG funds. They tackle whether ethics should shift your country exposure and explain what an ethical ETF like DZZF actually is. The conversation covers why defining “ethical” is tricky, the trade-offs of exclusions and fees, and a practical alternative of investing broadly and donating fee savings. They also debate how to handle heavy tech concentration in a portfolio.
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US Outperformance Is Not Guaranteed
- Don’t assume US outperformance is permanent; long-term (since 1900) US and Australia have performed similarly.
- Dave warns prices already reflect perceived US quality, so higher valuations can lead to future underperformance.
Why DZZF Isn't Mainstream
- DZZF is BetaShares' ethical version of an all-in global ETF and sits around $100m AUM so it's not tiny.
- Its smaller profile likely reflects more competing ESG choices and lower visibility, not necessarily poor quality.
Verify ESG Criteria Before You Buy
- If you want an ethical portfolio, check each ETF's screening criteria to confirm it matches your values.
- Hayden recommends doing deep research because ESG definitions vary and holdings (e.g., Apple, NVIDIA) complicate judgments.