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4th

Jan 2021

The Best ETF Funds for Your 2021 ISA

Posted on Monday, 4th January 2021

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 »

Stocks & Shares ISA

from Fidelity

ISA Option

Allows ISA Transfers

Regular Savings

Protection Scheme: FSCS
Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK, plus shares, investment trusts and exchange-traded funds. There’s also expert guidance to help with your investment decisions, which includes a selection of tools and insights from Fidelity’s experts. Capital at risk. Tax and ISA rules apply.
Invest From: £25 through regular savings or £1,000 lump sum

Why we like it: Fidelity has lots of investment options, plus an extensive range of guidance tools to help you decide what to invest in. Their award-winning ISA is easy to start and offers great value, their a typical service fee of just 0.35%. Other ongoing charges apply. On top of that, everything is backed by Fidelity’s 50 years of investment experience.

Important: The value of investments can go down as well as up 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.

Tax treatment depends on individual circumstances and all tax rules may change in the future.

Stocks & Shares ISA

from Interactive Investor

ISA Option

Allows ISA Transfers

Regular Savings

Protection Scheme: FSCS
Fund Choice: Access 40,000+ UK, US and international shares on 17 global exchanges. Choose from over 3,000 funds or select a ready made portfolio. Investment trusts, ETFs, Bonds & Gilts. Option to invest in 6 low cost funds selected by experts to get you started. Capital at risk. Tax & ISA rules apply
Invest From: £25 a month or any lump sum

More Info

Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Strong ethical investment proposition with more than 140 investment options. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from Hargreaves Lansdown

ISA Option

Allows ISA Transfers

Regular Savings

Protection Scheme: FSCS
Fund Choice: Choose from over 2,500 funds, shares, investment trusts and more to build your portfolio. UK and overseas shares. Corporate and government bonds. Exchange Traded Funds (ETFs). Ready-made portfolios to suit your goals and attitude to risk from £1,000. Expert research to help make your decisions. Investment trusts and much more. Capital at risk.Tax & ISA rules apply
Invest From: £25 pm or from £100 lump sum

More Info

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Stocks & Shares ISA

from AJ Bell

Allows ISA Transfers

Protection Scheme: FSCS
Fund Choice: 2000+ Funds
Invest From: £25 pm

More Info

Why we like it: It is simple to invest in a fund online. You will need to open an account first and then choose the fund you are interested in investing in. There are over 2,000 funds to choose from but to make it easier for you AJ Bell have created their favourite funds list which is their pick of the best funds.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

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

Income up to 6.00% pa

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs:

Stocks & Shares ISAs

Types of Stocks and Shares ISA include:

Stocks and Shares ISAs

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