Compare Passive Fund ISAs
Find the best passive fund ISA to make the most of this year’s tax free allowance.
Investment ISAs put your capital at risk & you may get back less than you originally invested
- Fund Choice: Tracks FTSE 100 Index. Largest company shares in the index include, Astrazeneca, Glaxosmithkline, HSBC & Diageo. Capital at risk.
- Invest From: £25 pm
- Fund Choice: Tracks the FTSE 250 Index. The fund invests directly in shares that make up the index such as Direct Line Group, Greggs & Morrisons. Capital at risk.
- Invest From: £25 pm
- Fund Choice: Tracks FTSE 350 Index. Capital at risk.
- Invest From: £25 pm
- Fund Choice: Tracks S&P 500 Index. Passive fund that seeks to mirror as closely as possible the performance of the 500 largest companies by market capitalisation in the USA such as Apple, Google, Tesla, Berkshire Hathaway & Mastercard. Capital at risk.
- Invest From: £25 pm
- Fund Choice: Tracks MSCI China Index. The index is made up of the largest stock market-listed companies in China including Tencent, Baidu, Alibaba & China Construction. Capital at risk.
- Invest From: £25 pm
- Fund Choice: Tracks FTSE USA Index. Invests in shares of large and medium sized companies in the USA. Capital at risk.
- Invest From: £25 pm
- Fund Choice: Tracks MSCI World Index. Low cost tracker fund that invests in global companies such as Disney, Google & Coco-Cola. Capital at risk.
- Invest From: £25 pm
- Fund Choice: This ETF Fund seeks to track the performance of the FTSE All-World Index. Largest holdings include Apple, Microsoft, Amazon & Facebook. Capital at risk.
- Invest From: £25 pm
- Fund Choice: Tracks MSCI World Information Technology Index. Largest holdings of the index include Apple, Microsoft, VISA, NVIDIA and Mastercard. Capital at risk.
- Invest From: £25 pm
- Fund Choice: The Fund aims to track the performance of the Solactive L&G Enhanced ESG UK Index. Capital at risk.
- Invest From: £25
Passive Fund ISA
If you’re putting your money into an investment ISA, there are two main investment strategies to choose from – active management and passive management. Passive fund ISAs provide access to a wide range of assets and international markets. Passive funds generally invest in one particular index, such as the FTSE 100. Management and trading costs are generally low on these funds because there is no find manager and the fund will mirror the performance of the index it is linked to.
How does a passive fund ISA work?
Unlike an actively managed investment fund, which is run by a professional fund manager who makes all the investment decisions on your behalf, passive fund ISAs will simply track a market, and therefore usually charge less in management fees. For example, they will buy all (or most) of the assets in a particular index (e.g. the FTSE 100), with the aim of generating a return that reflects how the market is performing. While an actively managed fund can offer you the potential for much higher returns than a passive fund, it also means that you incur the expense of paying a fund manager to take care of your investment. What’s more, a fund manager won’t necessarily beat the stock market – several studies have suggested that only around a quarter of managed funds consistently do so.* Investing in passive fund ISAs means you can gain exposure to a variety of investments without paying any capital gains or income tax on the potential returns. Because you don’t need to pay fees to a fund manager, a passive fund ISA can also be a good value way to invest your ISA allowance. *Source: Financial Times
Frequently Asked Questions
Am I committed to one ISA provider forever?
No. You can switch providers with an ISA transfer if you wish. You can also contribute to other ISA providers in separate tax years.
Can I have more than one index tracker fund ISA?
You can invest in more than one index tracker fund in your Stocks and Shares ISA account. You can also have more than one Stocks and Shares ISAs at once, but you cannot contribute to them both in the same tax year.
Can I transfer my Cash ISA into a FTSE 100 Tracker ISA?
Yes. You can do this by completing a form with your new FTSE 100 Tracker ISA provider.
Can I transfer my ISA into an index tracker fund ISA?
You can transfer either a Cash ISA or another Stocks and Shares ISA into an index tracker fund ISA. You will need to complete a transfer form with your new ISA provider to do this.