Ethical ISAs

Ethical ISAs

Compare Ethical ISA Options

Invest From
£25 per month
Fund
Ethical Bond
Income Yield
2.87%*
Income Paid Quarterly
ISA, SIPP & Direct Investment Options
Why we like it: Relatively low cost bond fund with an ongoing charge of 0.55% pa.  The fund’s investment objective is to achieve a total return over the medium term (3-5 years) by investing at least 80% in sterling-denominated corporate bonds, which meet predetermined ethical criteria. The fund’s performance target is to outperform the Markit iBoxx Sterling Non-Gilt Overall All Maturity Index (the “Index”) over a rolling 5-year period. For further information on the fund’s index, please refer to the Prospectus. The fund is available through the Hargreaves Lansdown Platform *Historic yield correct as at 22/5/2020 Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
Invest From
£25 per month or £100 single
Fund
Ethical Equity
Income Yield
1.39%*
Income Paid Annually
ISA, SIPP & Direct Investment Options
Why we like it: Investing ethically often involves avoiding certain companies or sectors. These constraints mean striking a balance between investing ethically and delivering strong performance is no easy task. The Aegon team look at the effects a company’s activities can have on the environment and society and use a strict screening process to find suitable companies. Audrey Ryan then selects the ones with the best long-term prospects, taking into account her views on the UK economy. The fund manager Audrey Ryan is one of few fund managers who have handled the constraints of an ethical fund well over the long run. capital at risk. The fund is available through the Hargreaves Lansdown Platform. *Historic yield correct as at 30/11/2020
Important information: The value of investments can go down as well as up so you may get back less than you invested. 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.
Invest From
Any lump sum or £25 per month
Fund Choice
Choice of 40 Ethical Investments
ISA & Non-ISA Option
Why we like it:The UK’s first rated list of ethical investments to help you align investments with your personal values. Building your investment portfolio can be tough – and it is even more difficult when you want to choose ethical investments. That can mean a lot of research. The ii ACE 40 makes the job easier for you. Interactive Investor select 40 funds, investment trusts and ETFs from over 140 ethical choices that they believe offer high-quality choices, across a broad variety of markets. Capital at risk.
Important information: The value of investments can go down as well as up so you may get back less than you invested. 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.
Invest From
£50 per month
Fund Choice
Invest via Fidelity Funds Supermarket
& get a discount when you buy this fund
ISA & Non-ISA Option
Why we like it: The UK ethical fund aims to provide long term growth by investing in a diversified portfolio of UK equity assets that meet Standard Life’s strict ethical criteria. Current areas of exclusion include alcohol, tobacco and companies deemed to cause environmental damage – the latter typically rules out most oil and mining stocks. Fund manager Lesley Duncan has an extensive track record in both UK equity and ethical investing, having taking over the reins of this fund in 2004.
Important information: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.
Specialist Market
Invest in companies working towards a prosperous and more liveable future
Details

No bad assets. Just investing in the things that help us thrive: Energy, Water, Food, Health, Education and Cybersecurity. With ready-made portfolios, it’s easier than ever to get started. So you can build wealth for the future by investing for the long term, on your terms

Capital at risk

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Ethical ISAs

An ethical ISA is an ISA where your money is used to invest in green, eco-friendly and ethical funds. You can invest ethically and still make money. Ethical ISAs allow you to invest in a socially responsible manner and have more say about where your money is invested. In this day and age, more and more people want more control over where their money is invested.

Ethical ISA funds are used to invest in unit trusts, gilts, the stock exchange, life assurance and many other similar ventures. They are most suitable for people who are willing to leave funds in their ISA for long periods such as five years. They are also good for people who are willing to withstand a bit more fluctuation in the value of their fund.

What Funds are Likely to be Excluded in an Ethical ISA?

While this varies from provider to provider and some are more ruthless than other, generally the following are excluded, funds derived from:

  • Tobacco
  • Alcohol
  • Pornography
  • Gambling
  • Fur trade
  • Armaments

Some also exclude: Oil and mining companies due to environmental concerns and human rights abuse

Some companies don’t necessarily exclude all funds associated with these industries but instead look at each fund individually and assess the track record of that particular company in terms of their human rights or green issues.

Why Choose an Investment ISA?

An investment ISA can be a good way to put aside some money each month or invest some extra cash. This kind of account is not advised if you don’t have any other savings or are in debt because you won’t be able to access your money easily if you need to and you could make losses.

However, Investment ISAs have the potential to provide better returns than any other savings account. ome things to consider include:

  • Assess the level of risk you’re willing to take, most providers can filter assets depending on the level of risk you’re willing to take or even provide you with a ready-made portfolio
  • Low risk investing tends to focus on bond funds which pay interest or dividends regularly, whereas higher risk portfolios tend to focus on property investment and the stock market
  • Decide if you want an Ethical ISA which completely bans all funds from companies such as tobacco etc. or would like a lighter approach
  • Providers often hold a limited amount of carefully selected options to invest in whereas others have a much larger range of funds. Work out which is right for you
  • Some providers have a simple interface with clear copy about each investment and its past performances. Make sure you find one that you find easy to use, helpful and clear

Currently, you are able to invest anything up to the tax threshold and choose to have it spread across a Cash, Stocks and Shares and Innovative Finance ISA or consolidated within one account.

As you can only fund one Ethical ISA per tax year it’s a good idea to shop around before you make your choice

Important Risk Information: This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future. Different types of investment carry different levels of risk and may not be suitable for all investors. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice. * Details of how the Financial Services Compensation Scheme applies to investment firms can be found at fscs.org.uk.