Hostplus vs HESTA
Two top-performing industry super funds. One choice. We can help you with that.
Key takeaways
- Both funds offer a default MySuper product that invests in a range of asset classes with a similar allocation towards growth assets like shares.
- Hostplus' default MySuper option has achieved slightly higher returns than HESTA's default Mysuper option, although both are top-performing funds.
- HESTA charges lower fees than Hostplus for its default product.
Hostplus vs HESTA
| Hostplus | HESTA | |
|---|---|---|
| Type of fund | Industry super fund with a focus on the hospitality, travel and tourism sector | Industry super fund with a focus on the healthcare sector |
| Number of members | 1.8 million members | 1.05 million members |
| Funds under management | $115 billion | $88 billion |
| Default investment option | Hostplus Balanced Hostplus Balanced is the default investment option offered by Hostplus, and it's the one that the majority of members are in. This is a diversified investment portfolio with a strong focus on Australian and international shares, private equity and infrastructure among other assets. Investment allocation is the same for all members in the Balanced fund, regardless of age. It's an authorised MySuper product. | HESTA Balanced Growth Similar to Hostplus Balanced, this is a ready-made investment portfolio with a strong focus on shares, private equity and infrastructure. 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 Hostplus Balanced:
| Past performance of HESTA Balanced Growth:
|
| Fees | Here's how much you'd pay in fees for one year if you had the following amounts invested in Hostplus Balanced:
| Here's how much you'd pay in fees for one year if you had the following amounts invested in HESTA Balanced Growth:
|
| Additional diversified investment options | You can choose to invest your super in one of the following pre-made investment options instead of the defaut option:
| If you don't want to invest in the default option (HESTA Balanced Growth), you can choose to invest your super in one of the following pre-made investment options instead:
|
| Single asset class investment options | 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 | The Hostplus Socially Responsible Investment Balanced option invests in companies that "contribute to a socially and environmentally sustainable world". Hostplus lists all the holdings in this investment option on its website, and also lists the companies that it actively excludes (these are largely controversial weapon manufacturers and tobacco companies). It has achieved a return of 7.35% p.a. over the last 5 years. If you had $50,000 invested in Hostplus Socially Responsible Investment Balanced you'd pay annual fees of $455.26. | The HESTA Sustainable Growth option invests in companies "with above average environmental, social and governance performance". It lists its top 20 holdings on its website. Over the past 5 years, this investment option has returned 6.71% p.a. If you had $50,000 invested in HESTA Sustainable Growth you'd pay annual fees of $562. |
| Mobile app | The Hostplus mobile app has a 3.9 star rating from users in the Google Play store, and a 4.5 star rating in the Apple store. | The HESTA mobile app has a 4-star rating from users in the Google Play Store and a 4.6-star rating in the Apple App Store. |
| Learn more | Hostplus | HESTA |
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?
The two default MySuper options are Hostplus Balanced and HESTA Balanced Growth. These two products are very similar; both are authorised MySuper products, both are pre-mixed, diversified funds and both have a similar risk level.
Looking at their investment allocation, they both have the same level of exposure to Australian shares, international shares, property and infrastructure.
HESTA Balanced Growth has lower fees than Hostplus Balanced, but Hostplus Balanced has delivered higher returns.
How do the ethical investment options compare?
Both Hostplus Socially Responsible Investment Balanced and HESTA Sustainable Growth avoid investments in fossil fuels, tobacco and gambling among many other harmful industries. However, Hostplus is more transparent with its investments; it has a full list of its fund holdings on its website for you to see exactly which companies it invests in and which ones it excludes, while HESTA only lists its top holdings.
Of the two sustaiable options, Hostplus has lower fees and has achieved slightly higher investment returns.
If you're interested in investing your super ethically, you can compare these funds with range of additional ethical super funds in our guide.
How do the additional investment options compare?
You have a lot more investment choice with Hostplus. Both funds offer a Balanced indexed option, but Hostplus also offers several additional indexed options across different risk levels and asset classes.
HESTA doesn't offer an indexed option in its single sector options.
If you're unsure how these different options work with your super fund, here's a guide on superannuation investment options and how to choose between them.
Want to keep comparing?
If you're not yet convinced that either Hostplus or HESTA 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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My wife has $300,000 to bring across to Hesta or Hostplus.
What would her total charges, fees, costs have been if she had invested it in a balanced fund with you for the 2022-23 year and if she had invested it for the 2023-24 year.
We need this in order to make an informed decision before we choose or don’t choose your company.
Regards,
Petar
Hi Petar,
We’re a review and comparison site, we’re not part of HESTA. Your best bet is to contact HESTA directly with your query, you can reach them on (03) 9200 4714.