FTSE-Tracker-Fund-ISA
Choose the best ISA tracker funds for your 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
A super low cost FTSE 100 tracker ETF fund with a 0.07% pa annual charge. The product has a record of tracking its benchmark to a high degree of accuracy and scored ahead of rivals on this measure.
- Fund Choice: Tracks FTSE 100 Index. Companies in the index include AstraZeneca, NatWest, Standard Chartered & Diageo. Capital at risk.
- Invest From: £25 pm
Low cost tracker with a 0.09% pa annual charge. Provides exposure to the FTSE 100 index of the largest companies listed on the London Stock Exchange at a highly competitive price.
- Fund Choice: Tracks FTSE 100 Index. Capital at risk.
- Invest From: £25 pm
A low cost FTSE 100 tracker with a 0.07% pa annual charge. Tracks the 100 largest listed companies in the UK. A low cost way to invest in this area of the market.
- Fund Choice: Tracks FTSE 100 Index. Provides exposure to the FTSE 100 index of the largest companies listed on the London Stock Exchange including Astrazeneca, Unilever, HSBC & Diageo at a highly competitive price. Capital at risk.
- Invest From: £20 pm
A low cost way of looking for capital growth by tracking the 100 most capitalised mature companies listed on the London Stock Exchange. The ongoing charge of the fund is a super low 0.06%.
- 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
A low cost FTSE 250 tracker with a 0.12% pa annual charge. Tracks the 250 largest listed companies in the UK. A low cost way to invest in this area of the market.
- Fund Choice: Tracks FTSE 350 Index. Capital at risk.
- Invest From: £25 pm
This is a low cost FTSE 350 tracker fund with a 0.16% pa annual charge. The aim of the Fund is to seek to achieve capital growth for investors by tracking closely the performance of the FTSE 350 Index.
- 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
Why we like it: A low cost way of looking for capital growth by tracking the capital performance of the FTSE USA Index. This fund may be suitable for investors looking for growth by tracking the US stock market as represented by the index.
- Fund Choice: Tracks FTSE World Index (excluding UK). Invests in shares of large and medium sized companies listed on a range of world stock markets (excluding the UK. Capital at risk.
- Invest From: £25 pm
Why we like it: A low cost way of looking for capital growth by tracking the shares of middle and large companies by capitalisation across all economic sectors in developed and advanced emerging markets (excluding the UK) as represented by the index.
- Fund Choice: Tracks FTSE World Technology Index. Largest 5 holdings of the index include Apple, Microsoft, Google, Facebook & Taiwan Semiconductor Manufacturing. Capital at risk.
- Invest From: £25 pm
Low cost technology fund with a competitive 0.70% ongoing annual charge. A low cost way of investing in shares of global companies engaged in information technology activities, as represented by the FTSE World Technology Index. The fund has significant holdings in Apple and Microsoft.
What are FTSE tracker fund ISAs
FTSE tracker fund ISAs, or passive investments, are ISAs that are heavily dependent on the behaviour of the world’s biggest economic market indices such as the FTSE, Dow Jones or Nasdaq.
A FTSE tracker fund ISA is a tracker ISA that specifically determined by the FTSE 100 index.
The FTSE tracks the share prices of the 100 largest companies listed on the London Stock Exchange and is widely recognised as the proxy benchmark for most investment managers.
Why invest through an ISA
A FTSE tracker fund ISA may be a good option for you if you want to avoid the effect of tax on your capital. This is because any return from a regular investment is subject to capital gains tax.
Therefore, you may receive a dividend that is significantly smaller than you think because a certain percentage of it has to be paid as tax.
FTSE tracker funds ISAs allow you to put your capital into an investment and receive a dividend that is not subject to tax (up to a government agreed limit).
The tax-free interest limit for ISAs currently sits at £20,000, but this is likely to change in the near future.
If you want to make an investment, but you do not want to pay tax on your returns, you could use a FTSE tracker fund ISA.
In addition, with a FTSE tracker funds ISA, you do not have to complete a self-assessment form upon receipt of your returns.
Eligibility
To qualify for a tracker ISA you need to be:
- Aged 18 years or over
- A UK resident and tax payer
Frequently Asked Questions
Can my investments go down in a FTSE 100 Tracker ISA?
Yes. If the FTSE 100 goes down, then your investment value will also go down.
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.
How do I apply for an index tracker fund ISA?
You can open an index tracker fund ISA online, over the telephone or by post.
You will need to add money to open your account, either by debit card payment or via a Direct Debit contribution.
Will I be charged for opening a FTSE 100 Tracker Fund ISA?
You usually aren’t charged for opening your account but may be charged dealing fees for buying your tracker fund and ongoing fees for holding it.
How much money can I put in an index tracker fund ISA?
You can contribute up to £20,000 to an index tracker ISA in the 2023/24 tax year. Your annual allowance refreshes each tax year.