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Investment ISAs /

Cheapest ETF Fund ISAs

What is an ETF ISA?

Exchange-traded funds (ETFs) are an increasingly popular way to invest.

Selected ISAs

Core FTSE 100 ETF Tracker Fund

from iShares

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks the FTSE 100 Index
  • Invest From: £25 pm
  • Investment Options: Provides exposure to the FTSE 100 index of the largest companies listed on the London Stock Exchange at a highly competitive price.

A super low cost FTSE 100 tracker ETF fund with a 0.07% pa annual charge. The product has a record of tracking its benchmark to a high degree of accuracy and scored ahead of rivals on this measure.

This fund is available via: Interactive Investor platform »

Important: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

FTSE 100 UCITS ETF Tracker Fund

from Vanguard

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 100 Index
  • Invest From: £25 pm
  • Investment Options: Provides exposure to the FTSE 100 index of the largest companies listed on the London Stock Exchange at a highly competitive price.

Low cost tracker with a 0.09% pa annual charge.

The Fund employs a passive management – or indexing – investment approach, through physical acquisition of securities, and seeks to track the performance of the Index (the “Index”).

Available via:

Hargreaves Lansdown investment platform »

Important: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

FTSE 250 Index Tracker

from HSBC

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 250 Index
  • Invest From: £25 pm
  • Investment Options: The Fund's investment objective is to provide long term capital growth by matching the capital performance of the FTSE 250 Index by investing in companies that make up the index.

A low cost FTSE 250 tracker with a 0.18% pa annual charge.The FTSE 250 is full of medium-sized companies with exciting growth potential. We think this is an excellent tracker fund, offering a low cost way to invest in this area of the market. HSBC has lots of experience running tracker investment funds.

This fund is available via:  Interactive Investor investment platform »

Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

FTSE 350 Tracker Fund

from iShares

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 350 Index
  • Invest From: £50 pm
  • Investment Options: The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performance of the FTSE 350 Index by investing in companies in the Index.

This is a low cost FTSE 350 tracker fund with a 0.16% pa annual charge. The Fund aims to provide a return on your investment (generated through an increase in the value of the assets held by the Fund) by tracking closely the performance of the FTSE 350 Index, the Fund’s benchmark index. 

The Fund invests in equity securities (e.g. shares) of companies that make up the benchmark index. The benchmark index measures the performance of the 350 largest UK companies.

This fund is available via: Interactive Investor investment platform »

Important: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Core MSCI World ETF

from iShares

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks the MSCI World Index
  • Invest From: £25 pm
  • Investment Options: Provides exposure to large and mid capitalisation companies in developed countries worldwide.

One of the cheapest world equity exchange-traded funds available makes this a great way for investors to generate performance in line with the world’s major stock markets. This ETF seeks to track the performance of the MSCI World index, comprised mainly of large companies from 23 developed markets. It invests in 85% of the listed equities in each country – more than 1,600 constituents. The ETF buys most of the underlying stocks but optimizes its holdings of some of the smaller companies to generate performance that matches the index, while keeping costs to a minimum. Ongoing charges are 0.2%.

This fund is available via: Interactive Investor platform »

Important: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Ethical ISAs

Global Clean Energy ETF

from iShares

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: The ETF seeks to track the performance of an index composed of 30 of the largest global companies involved in the clean energy sector.
  • Invest From: £25 a month or any lump sum
  • Investment Options: The Share Class is a share class of a Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the S&P Global Clean Energy Index, the Fund’s benchmark index (Index).

Good to know: A member of the Interactive Investor ACE 40 ,this fund is passively managed by BlackRock and reflects the return of the S&P Global Clean Energy Index (the benchmark). The Index is designed to provide exposure to the leading publicily listed companies in the global clean energy business from both developed and emerging markets.   The fund has reasonable ongoing charge of 0.65% pa. 

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Selected ISAs

Physical Gold (GBP)

from Wisdom Tree

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Allows investors to gain a simple cost efficient way to access the gold market.
  • Invest From: £50 pm

Provides exposure to the gold market with a 0.93% pa annual charge.

WisdomTree Physical Gold (PHAU) is designed to offer security holders a simple and cost-efficient way to access the gold market by providing a return equivalent to the movements in the gold spot price less the applicable management fee.

The fund is backed by physical allocated gold held by HSBC Bank plc (the custodian). Only metal that conforms with the London Bullion Market Association's (LBMA) rules for Good Delivery can be accepted by the custodian. Each physical bar is segregated, individually identified and allocated. 

Available via:

Hargreaves Lansdown investment platform » 

Important information: Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

ETFs are a great way of investing cost effectively.

See below some of the cheapest ETFs in the market - you can invest from £25pm or via a lump sum into an ISA.

UK

The FTSE 100 is a good place to start with the largest companies by market capitalisation.

2 low cost ETF funds that track the FTSE 100 are the  iShares Core FTSE 100 ETF (LSE: CUKX) and the HSBC FTSE 100 ETF (LSE:HUKX). Both have a super low ongoing charge of 0.07%.

Another option to gain exposure to the UK is from Legal & General. The  L&G UK Equity ETF (LSE: LGUK) tracks the Solative Core UK large and mid cap index composed of 104 companies. The fund ongoing charge is a very low 0.05%.

Europe

To get exposure to European companies then these two funds are worth a closer look   HSBC EURO STOXX 50 ETF (LSE:H50E) and Invesco EURO STOXX 50 ETF (LSE:SX5S) both with low ongoing charges of 0.05%. Both funds provide access to the largest 50 companies by market cap across 11 countries in the Eurozone.

USA

If you are looking to invest in the US then  Invesco MSCI USA ETF (LSE: MXUS) and Invesco S&P 500 ETF (LSE: SPXP) both offer investors access to the S&P 500 and the MSCI USA index at a very low ongoing charge of 0.05%.

China

You can access the world's second largest economy through  Franklin FTSE China UCITS ETF (LSE:FRCH) which tracks the FTSE China 30/18 Capped Index which comprises 872 Chinese firms. This ETF fund has an ongoing charge of 0.19%. Another option for investing in China is via the Lyxor MSCI China ETF (LSE:LCCN) which tracks the MSCI China Index and has an ongoing charge of 0.29%.

Asia-Pacific Region

You can access the Asia Pacific zone through this low cost option ETF   L&G Asia Pacific ex Japan Equity ETF (LSE:LGAP) which tracks the Solactive Core Developed Markets Pacific ex Japan Large and Mid Cap index, with over 50% exposure to Australian companies followed by Hong Kong with 20% exposure. The fund has an ongoing charge of 0.11%.

Japan

The  Xtrackers Nikkei 225 ETF (LSE:XDJP) is a low cost way of accessing the Japanese market tracking stocks from top performing blue chip companies based in Japan. This fund has a low ongoing charge of 0.09%. Another fund to consider for investors is the L&G Japan Equity ETF (LSE:LGJP) which tracks the Solactive Core Japan Large & Mid Cap Index and has an ongoing charge of 0.10%.

Emerging Markets

When accessing emerging markets you will typically pay a little bit more on an ongoing charge basis.  HSBC MSCI Emerging Markets ETF GBP (LSE:HMEF) tracks around 1,400 large and mid cap companies and offers investors good value with an ongoing charge of 0.15%. Another investment fund to consider is the iShares Core MSCI EM IMI ETF (LSE:EIMI) tracking the MSCI Emerging Markets Investable Market Index and tracks over 3,000 companies including smaller stocks.

Global

If you are looking for global stocks and shares exposure then  SPDR MSCI World ETF (LSE:SWRD) is worth a closer look. The fund tracks the MSCI World Index which is comprised of approximately 1,500 companies across 23 developed markets and you can access at a low ongoing charge of 0.12%.

For a global investment fund that provides exposure to emerging markets, then the  Vanguard FTSE ALL-World UCITS ETF (LSE: VWRD) is worth considering with an ongoing charge of 0.22%.

How do I invest in an ETF ISA?

You can invest in ETFs via a platform provider. Platforms include:

  • Interactive Investor - The ii platform allows you to access market leading ETF providers including iShares, Vanguard, HSBC and Wisdom Tree. ii provide extensive ETF research resources to allow you to make informed investing decisions.
  • Fidelity - Through the Fidelity platform once you set up an investment account you can invest in a wide range of ETFs provided by companies including Legal & General, iShares, Lyxor State Street, UBS, Vanguard and WisdomTree. Fidelity provide a screening tool to allow you to filter through over 250 ETF options.
  • Hargreaves Lansdown - The HL platform Provide a list of popular ETFs their clients are buying at any given time.They provide access to most major EFT providers.
  • AJ Bell - With the AJ Bell platform you can invest in ETF providers such as Amundi, Franklin, HSBC and Invesco. AJ Bell provides a screening tool to allow you to drill down to the ETF that might best suit your circumstances.

What does an ETF ISA Cost?

Not straightforward as the total cost will depend on how you buy the ETF. 

ETFs are investments that are openly traded on a stock exchange, therefore the  price fluctuates throughout the day depending on demand. 

It's important to understand the difference between the price you pay for the investment (dictated daily by the stock market) and the dealing charges and service fees set by the fund manager and investment platform.

When you buy an ETF within your ISA account (using a platform such as Fidelity) you are placing a "market order" where you are given a quote to buy the ETF. This latest price is available to you for 15 seconds.

If you are happy with the quote you can buy the shares immediately. If you are not happy with the price you can wait another 15 seconds to refresh the quote.

Each ETF will have an ongoing annual charge which can range from 0.05% pa to 0.88% pa. 

If you buy via a platform then there will be typically a platform annual charge - the cheapest platform providers charge from 0.25% pa.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

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Latest News

Cheapest ETF Funds For Your ISA

1st March 2021

In this article we look at some of the cheapest ways to access markets across the globe using your 2020-21 and 2021-22 ISA allowance.

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