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30th
Sep 2020
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Technology Stocks and Shares ISAs: What You Need To Know

Technology Stocks and Shares ISAs: What You Need To Know

Do you want to invest in Technology stocks and shares? You’re not alone, as the tech industry continues to be a booming trade, especially as post-lockdown society is relying more and more on technology to support society. So – if you’re looking for a good investment opportunity within a tax efficient ISA wrapper. 

Apple Inc. started in a garage, and today it is one of the world’s leading technology companies. Those who had shares early on are now the proud owners of shares worth trillions of pounds. It’s an industry where investment has the potential to generate incredibly strong returns if you back the right product – so getting in via the tax-efficient wrapper of an ISA is a good way to begin your investments in the technology industry.

What is a Technology Stocks and Shares ISA?

This is essentially what it says on the tin: it’s an investment which is kept within the tax-efficient wrapper of an ISA, specifically focusing investments and funds within the technology industry.

Because it is an ISA, the returns which are generated from these investments are kept safe from the tax man. Every UK citizen is permitted to invest up to £20,000 per tax year in an ISA, the returns from which are not subject to capital gains tax.

What’s included within a Technology Stocks and Shares ISA?

The technology industry includes a wide range of industries, including:

  • Computing technologies: this involves both development and improvement of laptops and desktops as well as software development. Included in this industry are companies such as Microsoft and Fell, which are constantly innovating to improve the tech they produce.
  • Internet technologies: the internet has become a part of daily life for the majority of people in the United Kingdom, as well as worldwide. The giants of Amazon and Google has played a huge part in commercial activity, making online shopping an easy one-click activity.
  • Artificial Intelligence: AI technology is a fast-growing innovative industry, which is still at an early level but is constantly changing and growing.
  • Blockchain Technology: This is the industry behind the development of virtual currencies – e.g. Bitcoin. Cryptocurrencies (as they can also be known) are not the only use of blockchain, which includes use by the healthcare sector who are utilising this technology to store patient records.
  • Cloud Technology: The cloud technology is a form of storage online which allows users to store large amounts of data – within this market, there are big players including household names like Google, Amazon and Microsoft.
  • Smartphone Device Technology: touch-screen smartphones flooded the market following the creation of the Apple iPhone, and the majority of tech companies that create mobile phones have created their own versions, developing a very competitive market.

Why Invest In A Technology Fund Within An ISA?

Whether you should invest or not is up to you, and your circumstances, but a few things to consider include:

Can I invest in a technology fund within an ISA? Yes you can. Options include technology tracker funds, investment trusts and ETFs.

Charges - Passive funds will tend to have the lowest charges. Actively managed funds will be more expensive.

Past performance - You can look at past performance typically over the last 5 years.

As with all investing – it is important to make sure the fund is line with your requirements, your values and you are comfortable with the risk profile.

The nature of the investment market is that you could theoretically get less money back than you put in. This is why you need to examine your risk profile before you invest – to make sure you’re comfortable investing before you take that step. If you’re not comfortable, then looking at other ISA options, such as a Cash ISA, may be for you.

Where can I find one?

There are quite a few different providers which give options you can invest in, including:

  • Legal & General FTSE Global Technology Index Tracker Fund
  • Polar Capital Technology Trust PLC
  • Allianz Global Investors Technology Trust PLC

For more options, and more information of Technology Investment ISAs, read our Technology Stocks and Shares ISA page. 

Selected ISAs

Technology Trust PLC

from Allianz

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: The Trust’s objective is to achieve long-term capital growth by investing principally in the equity securities of quoted technology companies on a worldwide basis.
  • Invest From: £25 pm
  • Investment Options: The award-winning Allianz Technology Trust PLC offers investors access to the fast moving world of technology with the reassurance that investment decisions are made by Walter Price who has 40 years of experience of investing in technology. He is Co-Head of the AllianzGI Global Technology Team which currently manages $4bn in assets under management.

Investment trust providing exposure to global technology companies. Allianz Technology Trust PLC is a UK listed investment trust that offers access to the investment potential of the technology sector. The Trust aims for long-term capital growth by identifying major trends ahead of the crowd and investing in stocks worldwide that have the potential to become tomorrow’s Apple or Google.

The Trust invests in mid to large-sized technology companies, holding companies expected to benefit from the continued growth in particular sub-sectors of technology. It also seeks to hold companies that will create shareholder value with the introduction of a new product or new technology. Over the past 20 years, this would include PC manufacturers, software, internet applications or consumer devices.

Allianz Technology Trust is managed by the highly experienced AllianzGI Global Technology team based in San Francisco. The team benefits from its proximity to Silicon Valley where many of the world’s key technology companies are headquartered. Current major holdings include Google, Amazon and Tesla.

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.

Polar Capital Technology

from Polar Capital

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Researching and identifying developing technology trends and investing in the companies best placed to exploit them.
  • Invest From: £25 pm
  • Investment Options: Polar Capital Technology Trust plc provides investors with access to the potential of companies in the global technology sector.

Investment trust providing exposure to global technology companies. Launched in 1996, Polar Capital Technology Trust plc (“PCT”) has grown to become a leading European investor with a multi-cycle track record. Managed by a team of dedicated technology specialists, the PCT aims to maximise long-term capital growth by investing in a diversified portfolio of technology companies from around the world. The managers’ core belief in rigorous fundamental analysis, and being unconstrained by not following a benchmark, enables PCT to deliver global equity market outperformance through exposure to a universe of over 3,000 companies. Top holdings in the fund include Apple, Microsoft, Google & Facebook.

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.

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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