ETHI Faces Hawkish Fed and Market Volatility in 2026

The Betashares Global Sustainability Leaders ETF (ASX: ETHI) is one of Australia's largest and most well-known ethical investment funds, offering exposure to global companies screened as climate leaders while excluding fossil fuels and other activities.

With the US Federal Reserve becoming more hawkish in 2026 and periodic volatility in global markets, the question for ETHI is whether its sustainability-screened portfolio can reignite momentum it has shown over the longer term.

The fund tracks the Nasdaq Future Global Sustainability Leaders Index, which selects large global companies with high ESG ratings while excluding those involved in fossil fuels, weapons, tobacco, gambling, and other screened activities.