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Compare Investment ISAs /

Compare Technology Tracker Fund ISAs

Find the best technology tracker fund ISA to make the most of this year's tax free allowance.

Investment ISAs put your capital at risk & you may get back less than you originally invested.

FTSE Global Technology Tracker

from Legal & General

Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE World Technology Index. Largest 5 holdings of the index include Apple, Microsoft, Google, Facebook & Taiwan Semiconductor Manufacturing. Capital at risk.
  • Invest From: £25 pm

Xtrackers MSCI World Information Technology

from DWS

Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks MSCI World Information Technology Index. Largest holdings of the index include Apple, Microsoft, VISA, NVIDIA and Mastercard. Capital at risk.
  • Invest From: £25 pm

Technology Index Tracker Fund ISAs

Index tracker investment funds have become increasingly popular due to increased awareness of investment costs associated with actively managed funds over time which do not always perform better.

What is a technology tracker fund ISA?

A technology tracker ISA is a Stocks and Shares ISA that holds technology tracker funds.

What is a Stocks and Shares ISA?

A Stocks and Shares ISA is an investment or savings account that is completely free from taxes.

ISA accounts are sheltered from:

  1. Income tax on interest and dividends from investments
  2. Capital Gains Tax (CGT) on the growth of your investments

HMRC allows all individuals to invest up to £20,000 into ISA accounts each tax year.

What is a technology tracker fund?

A technology tracker fund is an investment fund that aims to track the collective performance of companies that operate in the Information Technology sector.

A technology tracker fund typically pools investors' money together and then invests proportionately in global technology companies; however, some may target specific geographical areas in particular such as the US or Europe.

They will usually hold shares in a large number of technology companies in order to diversify the risk of the tracker fund and spread the weighting, but as they are tracker funds, they are not actively managed by fund managers like managed funds are.

This means that they will not pick certain companies over others if they think they will perform well, or sell shares if they think they will perform poorly. They simply aim to mirror the performance of the technology index in general.

How do I compare technology tracker fund ISAs?

You firstly need to decide what ISA provider you want to open your Stocks and Shares ISA with.

To invest in a technology tracker fund ISA, you’ll need a self-select or DIY ISA in which you can choose your own funds and shares to invest in, as opposed to a managed portfolio.

Stocks and Shares ISA platforms are set up to facilitate these types of investments, and you can compare ISA providers based on:

  1. The annual management fee for holding funds and shares
  2. Dealing fees and other ad hoc fees your ISA provider may charge
  3. Whether they have a highly rated ISA app or online platform
  4. How good their customer service reviews are

Once you’ve chosen an ISA provider, you can then hand pick any technology tracker funds you want to invest in, such as the Legal & General Global Technology Index Fund, for example.

How do I open a technology tracker fund ISA?

You can open a Stocks and Shares platform ISA online, and the process can be completed in a matter of minutes.

You’ll need your basic personal information, and a debit card to make a contribution to your new ISA of up to £20,000.

Alternatively, you can also open an account over the telephone or with a postal application should you prefer this method.

Once you have created your account and added funds, you can navigate to the technology tracker fund(s) you wish to purchase via the online portal or speak to the customer service or dealing team to purchase units in the fund(s). 

Sam Hodgson
Edited by Sam Hodgson - ISA.co.uk

Frequently Asked Questions

No. You can switch providers with an ISA transfer if you wish. You can also contribute to other ISA providers in separate tax years.

Index tracker funds are just as safe as any other type of Stocks and Shares ISA. They are regulated by the Financial Conduct Authority and covered by the FCSC scheme. However, your investments can do down in value.

No, ISA stands for Individual Savings Account and must be solely owned for tax purposes.

You can invest in more than one index tracker fund in your Stocks and Shares ISA account. You can also have more than one Stocks and Shares ISAs at once, but you cannot contribute to them both in the same tax year.

Your investments will go up and down in line with the index that they track, and so you could lose money in an index tracker ISA.

Yes, you can withdraw funds from an index tracker ISA at any time. The process will likely take about a week as your investments will need to be sold first.

You can open an index tracker fund ISA online, over the telephone or by post.

You will need to add money to open your account, either by debit card payment or via a Direct Debit contribution.

You can contribute up to £20,000 to an index tracker ISA in the 2021/22 tax year. Your annual allowance refreshes each tax year.

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.