https://www.betashares.com.au/files/factsheets/DZZF-Factsheet.pdf

DZZF aims to provide exposure to a cost-effective, multi-asset class portfolio, for investors whose priority is investing in a way that aligns with their values. DZZF offers the potential for high growth over the long term and targets an allocation of 90% growth assets (Australian and international shares), and 10% defensive assets (Australian and international bonds).

Each Betashares Ethical Diversified ETF obtain their asset-class exposure using ETFs from the Betashares range of Ethical ETFs:

·         Betashares Australian Sustainability Leaders ETF (FAIR)

·         Betashares Global Sustainability Leaders ETF (ETHI)

·         Betashares Ethical Australian Composite Bond ETF (AEBD)

·         Betashares Global Green Bond Currency Hedge ETF (GBND)

ESG considerations are taken into account in two stages of the investment process:

• Negative and Norms-based screening: screens are applied to all issuers of stocks and bonds in accordance with the detailed rules set out in the relevant index methodology. Screens are based on the proportion of a company’s revenue derived from activities and/or products deemed inconsistent with ethical investing principles. For example, companies that derive more than 20% of their revenue from the sale of alcohol are excluded from all the underlying ETFs. In addition, issuers exposed to significant reputational risk or controversy may also be excluded where the product’s Responsible Investment Committee (RIC) considers that its inclusion would be inconsistent with the values of the Index. In making such a determination the RIC will reference international norms and standards including the Ten Principles of the United Nations Global Compact (UNGC).

• Positive Screening -- Identification of Sustainability/Climate Leaders and Green Bonds: in addition to the application of negative and norms-based screens, a positive screening process is applied to the Australian shares, internation shares and international bond components. Each fund has a slightly different positive screening process. In ETHI, stocks are ranked on carbon efficiency as measured by greenhouse gas emissions (scopes 1, 2 and 3) divided by annual revenues. The index is constructed from companies ranked in the top one-third in each industry which are referred to as ‘Climate Leaders’. In FAIR, the positive screen has a broader focus than carbon efficiency, due to the much smaller universe of ASX-listed stocks. The index methodology for FAIR identifies 'Sustainability Leaders' from the universe of eligible securities, being companies that earn more than 50% of their revenues from a defined list of activities that are determined with reference to the United Nations Sustainable Development Goals (UNSDGs). Finally, the positive screening in GBND is to select green bonds whose use of proceeds is consistent with the Climate Bonds Initiative (CBI) Green Bond Standard.

For more information, please refer to the Product Disclosure Statement.