Index Tracker ISAs could be a great idea for someone looking to start their new year off with a brand-new Investment kept within the tax-efficient ISA wrapper. So, we have put together our list of the best Index Tracker ISAs you should consider to kick off your Investments for 2021.
What is an Index Tracker ISA?
An Index Tracker ISA is a type of Stocks and Shares ISA that follows an Index and attempts to replicate it in order to generate returns. The Index followed could be a variety of different index’s including the FTSE 100, the FTSE 350 etc.
Typically, they will buy shares in the companies which are included in the index.
What should I look for in a Tracker ISA?
There are a lot of options when considering which Index tracker to get, including:
- You can get funds which only follow the UK FTSE 100 or the FTSE All-Share
- You can invest in an international tracker fund, which include European, US and Far East Indices.
- You can invest in specific Ethical tracker funds which allow you to exclude certain industries from your investments.
- There might be associated charges; the lower they are, the better for you – and remember you might need to pay more for international funds.
Our Top Tracker ISA Picks
iShares FTSE 100 UCITS ETF Tracker »
This fund offers…
- the ability to track the FTSE 100 Index
- the ability to invest from £50 per month
- a low-cost 0.07% annual charge
- the ability to invest via the Fidelity Investment platform
Vanguard FTSE 100 UCITS ETF Tracker »
This fund offers…
- the ability to track the FTSE 100 Index
- the ability to invest from £25 per month
- a low-cost 0.0% per annum annual charge
- the ability to invest via the Fidelity Investment platform
Legal & General FTSE 100 Tracker Fund »
This fund offers…
- the ability to track the FTSE 100 Index
- the ability to invest from £50 per month
- a low-cost charge of 0.06% each year
- the ability to invest via the Fidelity Investment Platform
Vanguard FTSE 250 UCITS ETF Tracker »
This fund offers…
- the ability to track the FTSE 250 Index
- the ability to invest from £50 each month
- Access to an index of medium-sized UK companies
- a lost-cost charge of 0.10% per year
- ability to invest via the Fidelity Investment Platform
Fidelity Index World Tracker »
This fund offers…
- the ability to track the MSCI World Index
- the ability to invest from £50 per month
- a low-cost charge of 0.1% each year
- ability to invest via the Fidelity Investment Platform