skip to main content
Mar 2020

What's an ETF ISA?

What's an ETF ISA?

The deadline for opening a new ISA is just over a week away as the end of the tax year quickly approaches. If you’re looking to branch out in your investments and considering an ETF ISA (but are unsure where to start) we’ve broken down the essential questions you need answered here. 

For traditional savers, the two consecutive Bank of England Base Rate cuts which have been announced in the past two weeks might mean that Cash ISA accounts are suddenly looking far less appealing. You might be looking to diversity your ISA allowance into different types of ISA – and have come across ETF ISAs.

What are ETF ISAs?

ETF stands for “exchange traded funds”, which are funds which issue shares which can then be traded on the stock exchange. These offer a broad range of investment opportunities into a variety of assets, which means that investors can have access to specific markets, sectors and strategies at a comparatively low cost.

They can also provide investors with access to a variety of asset classes – like equities or fixed income.

How do these work?

All ETFs don’t work in exactly the same way – some may…

  • Follow market index performance (like FTSE 100/FTSE250)
  • Follow smart beta index performance
  • Be managed actively by a fund manager
  • Be traded actively – like any other stock on the stock exchange

There tends to be a lot of transparency with ETFs – you’ll know where your money is being invested as well as what securities the fund holds, the performance and the costs.

Where can I get one?

There are a variety of platforms where you can invest in an ETF, including…

  • Fidelity
  • Hargreaves Lansdown
  • AJ Bell

How much does it cost?

The amount that an ETF will cost will depend on the provider you choose and the account you wish. Because they are traded on the stock market, the price of an ETF will fluctuate depending on the way the market is going. So, the amount it costs on Monday may be different to how much it costs on Friday.

There will be different charges incurred, including the cost of the investment and the charges for management and service fees (charged by the fund manager and investment platform).

Read more about ETF accounts and see the best rates. 

Investment Fund Supermarket ISAs

Fidelity ETFs

from Fidelity

Allows ISA Transfers
  • Fund Choice: Fidelity offer Over 140 providers with over 4,000 investment options
  • Invest From: £25 pm

Why we like it: Pay £10 for buying or selling an ETF online and £1.50 for buys as part of a regular savings plan and for dividend re-investments. Fidelity's standard service fee of just 0.35% applies when you have over £7,500 invested or if you have a regular savings plan. This is capped at £45 for ETFs, and ETFs held in an Investment Account do not incur a service fee.

Important information - please keep in mind that the value of investments can fall as well as rise, so you may get back less than you invest. 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.

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.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Our Top Picks for Technology Stocks and Shares ISAs

19th January 2021

The tech industry has been booming for the past fifteen years; and it seems to be a rollercoaster that only goes up. The tech bubble has yet to burst, with companies coming out with more and more technological developments and consumer demand is certainly not slowing down. So, for the tech-savvy investor who wants to put their pennies behind this strong growing industry, we’ve put together our top three picks for Technology Stocks and Shares ISAs. 

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

About us

4.74 Average

23 Reviews


I found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.


Very informative, find myself a good ISA account with best return in terms of interest.


Easy to use website and up to date. Saved the link on my tablet.

Rob Holden

The website was very useful and informative.

Andrew Johnson

ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs


Excellent website - clear and helpful information about different products - and a trustworthy partner.


Easy to use website and up to date. Saved the link on my tablet.


Really simple to use and all the information was clear with lots of products available. The interest calculator was really handy too. Have bookmarked and will definitely use again.

Hannah Gordon

This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.


Easy to use website and up to date. Saved the link on my tablet.


If you wish to invest in an ISA this site has it all. A super comprehensive range of simply explained products from all the major companies.

Cristina Iacob

Very knowledgeble company with an extensive range of services, a great website with loads of useful information.


Nice graphics and easy to navigate

Dr Alan Rogan BSc PhD FCIOB FCABE Eur Ing

Good advice and professional approach


Very helpful for getting my annual ISA

Jonny Doulton

Clear, concise and very professional outfit with an excellent choice of market leading deals.

Paul Tissington not only helped narrow down my choices for a Junior ISA but also provided additional practical information that helped demystify the whole process.

Sunil Karadia

Just the site I needed, I have been looking for a suitable ISA for a while, but as there are so many to choose from, find it difficult to find the right one for me.

James Weatheritt

I found the information on very helpful and easy to understand. The site is easy to navigate and find what you're looking for.

Lisa Holden

I found very insightful and easy to navigate through. The content was useful and helped me make my ISA decision.

Neta Pourhosseini

I thought the information provided was easy to understand and very informative, I would recommend to friends for deffinite.