The Best ETF Funds for Your 2021 ISA
Looking to diversify your Investment ISA holdings in 2021? An ETF ISA might be the way to go for the right investor. Depending on what you're looking for, you could find your next ETF ISA in this blog right here; we've broken down what you need to know when deciding which ETF ISA is right.
What is an ETF ISA?
An exchange traded fund (ETF) are funds that issue shares which are traded on a stock exchange. Because these investments are made within the tax-efficient ISA wrapper, ETF ISAs are not subject to capital gains tax or income tax.
They can invest in a broad range of assets providing investors with access to specific markets, sectors and strategies at relatively low cost.
How does this investment work?
ETF ISAs can provide investors with access to a wide range of asset types such as equities or fixed income. They can...
- follow the performance of an index
- follow the performance of a beta index
- be actively managed by a fund manager
- be actively traded (like on the stock exchange)
- have lower charges available via passive trackers
Our Top Picks for ETF ISAS in 2021
iShares Core FTSE 100 UCITS ETF Tracker Fund
This fund...
- tracks the FTSE 100 Index
- allows you to invest from £25 per month
- has a low cost annual ongoing charge of 0.07%
- is available via Interactive Investor Investment Platform »
SPDR® S&P Global Dividend Aristocrats ETF (GBP) Fund
This fund...
- Tracks global high yielding companies within the S&P Global divident Aristocrats Index
- Focuses on large companies with consistent history of paying dividends
- Dividends are paid quarterly
- allows you to invest from £25 per month
- has a competitive ongoing charge of 0.45%
- is available via Interactive Investor Investment Platform »
Vanguard FTSE 250 UCITS ETF Tracker Fund
This fund...
- tracks the FTSE 250 Index
- allows you to invest from £50 per month
- has a low annual charge of 0.10%
- is available via the Fidelity Investment Platform »
Vanguard S&P 500 UCITS ETF Tracker Fund
This fund...
- tracks the S&P (Standard and Poor's) 500 Index
- allows you to invest from £100 per month
- has a low annual cost of 0.07%
- is available via Hargreaves Lansdown platform »
Vanguard All-World UCITS ETF Tracker
This fund...
- tracks the FTSE All World Index
- allows you to invest from £50 per month
- has a low annual charge of 0.25%
- is available via the Fidelity Investment Platform »