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
- The fur trade
- 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.