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26th
Sep 2020
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Four Ethical Junior ISAs to Consider for 2020/2021

Four Ethical Junior ISAs to Consider for 2020/2021

If you want to open a Junior ISA but want to make sure that the ISA itself is invested in line with you, or your child’s values, then you’ll want to consider opening an Ethical Junior ISA. But what exactly is an Ethical Junior ISA – and which ones should you be looking at? 

What is an Ethical Junior ISA?

A Junior ISA is an ISA account which can be set up for a child under the age of 18 by a parent or guardian. The returns from this account will be protected from capital gains tax due to the fact that the money is kept in the tax-free ISA wrapper.

An Ethical Junior ISA is a specific form of Junior ISA which focuses on only putting the money behind investment which meet certain ethical criteria. This ethical criteria specifies certain industries or types of investments with are excluded. Examples of funds which might be excluded include:

  • The tobacco industry
  • Alcohol
  • Pornography
  • Gambling
  • The fur trade
  • Armaments
  • Some also exclude oil and mining companies.

An Ethical Junior ISA is the best

Our Top Picks for Ethical Junior ISAs

Legal and General Ethical Trust

This fund is available via Hargreaves Lansdown Fund Supermarket – and is a very low cost tracker fund, with only a 0.25% per annum annual charge. It tracks the FTSE 350 Index but excludes companies that don’t meet specific ethical guidelines. The aim is to invest in funds which have certain ethical standards, and by doing this, generate growth.

Kames Capital Ethical Equity

This is a fund which can be found via Hargreaves Lansdown fund supermarket; you can invest from £25 per month or a £100 lump sum. It focuses on avoiding investments in specific industries, companies or sectors to ensure ethical investment whilst ensuring that returns remain as strong as possible.

Standard Life UK Ethical Fund

You can invest in this ISA from £50 per month, and for that £50 you can see your money invested in a diverse portfolio of UK equity assets which adhere to Standard Life’s ethical criteria. This is a long-term focused fund, which also rules out oil and mining stocks as an area for investment, making it a good choice for the environmentally minded. You can access this fund via Fidelity Funds Supermarket.

Interactive Investor iiACE 30 Investments

This is one of the UK’s top rates Ethical Investment platforms; it focuses on building your portfolio by providing you with a choice of 30 investment funds, trusts and ETFs which all meet ethical standards whilst also offering quality choice and a broad variety. You can invest in this fund from £25 per month, or with a £100 lump sum. 

Read More about Junior ISAs here.

Read more about Ethical ISAs here.

Read more about Ethical Junior ISAs here.

Investment Fund Supermarket ISAs

UK Ethical Fund

from Standard Life

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: Invest via Fidelity Funds Supermarket & get a discount when you buy this fund
  • Invest From: £50 pm

Why we like it: The UK ethical fund aims to provide long term growth by investing in a diversified portfolio of UK equity assets that meet Standard Life's strict ethical criteria. Current areas of exclusion include alcohol, tobacco and companies deemed to cause environmental damage - the latter typically rules out most oil and mining stocks. Fund manager Lesley Duncan has an extensive track record in both UK equity and ethical investing, having taking over the reins of this fund in 2004.

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

Ethical Trust

from Legal & General

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 350 Index Of Companies That Meet Ethical Guidelines
  • Invest From: £20 pm
  • Investment Options: The objective of this fund is to provide growth by investing in a portfolio of companies whose business meets a range of ethical and environmental guidelines.

These shares will be from companies in the FTSE 350 Index whose business meets the ethical and environmental guidelines of the fund.

The amount of shares held from each company will be in proportion to the company's size. However, no one company can make up more than one tenth of the fund's value. The fund may use derivatives to reduce risk or cost, or to generate additional capital or income with no, or an acceptably low, level of risk.

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.

Investment Fund Supermarket ISAs

Ethical Equity

from Kames Capital

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: Invest via Hargreaves Lansdown fund supermarket to access this fund
  • Invest From: £25 per month or £100 single

Why we like it: Investing ethically often involves avoiding certain companies or sectors. These constraints mean striking a balance between investing ethically and delivering strong performance is no easy task. The fund manager Audrey Ryan is one of few fund managers who have handled the constraints of an ethical fund well over the long run.

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.

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

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Stocks & Shares ISAs

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Stocks and Shares ISAs

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