Junior ISA

Junior ISAs (JISAs) can be invested in two ways: either into Cash, or into Stocks and Shares.

 

You can invest a maximum of £9,000 per year (currently) into a JISA for your children, up to the age of 18.

Last Updated: January 2021

Investing into ethical investment options for your children is a great way to get them involved and interested in where their money is being invested. JISAs aren't accessible until your child turns 18, but they can manage the portfolios themselves from the age of 16.

JISAs come in two forms: either through a Cash JISA, or a Stocks and Shares JISA

If you don’t have a financial advisor, you have two options with a Stocks and Shares JISAdoing it yourself and picking your own investments -  or, if you are less comfortable choosing your own investment funds, investing into a ready- made portfolio based on your (or your child's) risk appetite.

Cash JISAs 

To our knowledge, there is one specifically ethical Cash JISA, offered by Triodos. 

While not within an ISA wrapper, the co-op Bank also offer a children's cash savings product called the Future Fund. You can start saving for your child from £1, with instant access to the money, and it offers an interest rate of 0.46% (variable) per year.

‘Do It Yourself’ Ethical Stocks & Shares JISAs

 

Our Fund Finder allows you to search sustainable and ethical investment trusts, funds and ETFs based on your or your child's interests and requirements that are available from Stocks and Shares JISA providers in the UK.

Different Stocks and Shares JISA providers have a different range of funds on offer, though all of the main providers have a comprehensive range of funds for you to choose from.

Ready-made Ethical Stocks and Shares JISAs

If you are less confident in choosing your own investment funds, a number of investment platforms offer ready-made (sometimes called model) ethical portfolios for you to invest into.

Often, these work by you outlining how much risk you are willing to take (usually from low to high), and then matching you to one of their model portfolios which are made up of a range of funds chosen by their investment experts.

There are a growing number of ethical options for Stocks and Shares JISAs, which we outline below.

Cash JISAs

Traditional S&S Providers

S&S Roboadvisors

Specialist S&S Ethical Platforms

Cash JISAs

 

Triodos Cash JISA 

A Dutch bank which lends only to organisations that have a positive social or environmental impact

triodos.png

Click here to go to site

 

Triodos is an award winning investment firm which only focuses on ethical investments. It focuses its activities across three overarching themes: Environmental, Cultural and Social. They publish details of every organisation they lend to.

When the child turns 18, the Triodos Junior Ethical Cash ISA automatically becomes a Triodos Cash ISA.

Interest Rate: 1.50% per year

Fee: No platform fee

Minimum Investment: £1

Traditional Providers: Stocks & Shares JISAs

 

Interactive Investor

One model ethical portfolio focusing on long-term growth

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Interactive Investor has one model ethical portfolio, which is growth orientated (80%+ is towards equities) and made up of ten ethically-focused funds, which are chosen and constantly reviewed by their team. 

The platform also has a strong section on ethical investments with well researched suggestions of funds to invest in.

+ Pros

- Good for those looking for a growth focused portfolio managed on your behalf

- Really strong in-house ethical fund research 

- Strong portfolio performance 

- Cons

- Not suitable for those looking for a lower risk portfolio

- More expensive than many other options, though does invest into best-in-class active funds

Risk Profile: Growth (higher risk)

Performance: +25.7% in 2020; +27.4% since launch (to 31 Dec 2020)

Launch Date: 1 Oct 2019

Number of funds: 10

Active or Passive?: All Active

Platform fee: from £10 p/m

Portfolio fee: 1.09% p/a

Fee on a £10,000 portfolio: £229 p/a

Minimum Investment: £100

 

Bestinvest

One multi asset fund-of-funds with an ethical focus- Tilney Sustainable Portfolio

Click here to go to site

 

Bestinvest offers one model ethical portfolio, which is a standalone investment fund-of-funds, the Tilney Sustainable Portfolio fund.

This is a multi-asset portfolio with a 'balanced' (i.e. medium risk) focus. While the majority of the funds have a sustainable or ethical focus, not all of the investments in the portfolio have this.

+ Pros

- Good for those looking for a balanced portfolio managed on your behalf

- Has one of the longest track records for a model portfolio

- Cons

- Not all investments within the fund have a dedicated ethical mandate

- Unclear what c.35% of the fund is invested into 

Risk Profile: Balanced (medium risk)

Performance: +5.4% in 2020; +24.2% since launch (to 31 Dec 2020)

Launch Date: Nov 2017

Number of funds: 10+ (top 10 make up 63% of the fund)

Active or Passive?: Mix

Platform fee: up to 0.4% pa

Portfolio fee: 1.45% p/a

Fee on a £10,000 portfolio: £185 p/a

Minimum Investment: £100

 

AJ Bell

Recently launched portfolio with a focus on globally diversified equity ETFs

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AJ Bell have recently launched their model ethical fund-of-funds portfolio, which uses passive ethical ETFs to create a globally diversified and largely equity focused portfolio.

While it has only recently launched, the funds within the portfolio are well established and have been operating for a number of years.

+ Pros

- Good for those looking for a medium-high risk, globally diversified portfolio managed on your behalf

- Overall low cost for those conscious of fees, with the portfolio fee capped at 1%

- Cons

- Has only recently launched so very limited track record

- The fund only uses low cost ETFs, so the 1% portfolio fee is actually quite high

Risk Profile: Balanced - Growth (medium/ high risk)

Performance: n/a (too early to tell)

Launch Date: 23 Nov 2020

Number of funds: 12

Active or Passive?: Passive

Platform fee: 0.25% pa

Portfolio fee: 1% p/a (capped)

Fee on a £10,000 portfolio: £125 p/a

Minimum Investment: £500

Roboadvisors: Stocks & Shares JISAs

 

Nutmeg

Uses passive ETFs to build an ethical fund, with 10 portfolios to choose from based on your risk profile

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Nutmeg is one of the largest and best-known roboadvisors in the UK. You input your risk level (from 1 (very low) to 10 (very high), and Nutmeg builds a diversified portfolio of passive ethical ETFs based on your profile, which they then monitor and manage on your behalf.

For every new JISA account opened, Nutmeg will match any donation you choose to make to Great Ormond Street Hospital Children's Charity, up to £100.

+ Pros

- Plenty of options to customise the portfolio based on your risk appetite

- Cost-conscious option, with platform fees falling to 0.35% after £100,000

- Cons

- Not all of the investments within the portfolios have a dedicated ethical focus

Risk Profile: 10 risk levels to choose, from low to high 

Performance: For Mid Risk: +7.7% in 2020; +13.8% since launch (to 30 Nov 2020)

For High Risk: +9.4% in 2020; +18.4% since launch 

Launch Date: 30 Sep 2018

Number of funds: 14 in total

Active or Passive?: Passive

Platform fee: up to 0.75% pa

Portfolio fee: Average 0.31% p/a

Fee on a £10,000 portfolio: £106 p/a

Minimum Investment: £100

 

Wealthify

Uses active and passive funds to build a portfolio based on 5 risk profiles

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Wealthify is another large and well-known roboadvisor. You input your risk level (from 1 (very low) to 5 (very high), and Wealthify builds a diversified portfolio based on your profile.

Unlike many other model portfolios, Wealthify uses a blend of passive and active funds to try and achieve a portfolio that is more ethically-aligned than a solely passive portfolio.

Risk Profile: 5 risk levels to choose, from low to high 

Performance: For Mid Risk: +9.0% in 2020; +20% since launch (to 31 Dec 2020)

For High Risk: +13.4% in 2020; +29% since launch 

Launch Date: Feb 2018

Number of funds: 18 in total

Active or Passive?: Mix

Platform fee: up to 0.6% pa

Portfolio fee: Average 0.56% p/a

Fee on a £10,000 portfolio: £116 p/a

Minimum Investment: None

+ Pros

- The only roboadvisor that uses active as well as passive funds to construct ethical portfolios

- Longest track record out of the roboadvisors

- Cons

- The only roboadvisor that uses active as well as passive funds to construct ethical portfolios

- Not all of the investments within the portfolios have a dedicated ethical focus

 

Wealthsimple

Uses passive ETFs to build an ethical portfolio based on 9 risk profiles

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Wealthsimple is an award-winning roboadvisor. You input your risk level across a spectrum from low to high, and Wealthsimple builds a diversified portfolio of passive ethical ETFs based on your profile, which they then monitor and manage on your behalf.

Risk Profile: 9 risk levels to choose, from low to high 

Performance: Not outlined

Launch Date: Not outlined

Number of funds: 10 in total

Active or Passive?: Passive

Platform fee: up to 0.7% pa

Portfolio fee: Average 0.27% p/a

Fee on a £10,000 portfolio: £97 p/a

Minimum Investment: £5,000

+ Pros

- Plenty of options to customise the portfolio based on your risk appetite

- Cost-conscious option, with the fee on a £10,000 only £97 per year

- Cons

- Minimum investment of £5,000

- Historic performance isn't outlined so difficult to tell how the portfolios have fared

Specialist Ethical Platforms: Stocks & Shares JISAs

 

The Big Exchange

Ethical investment platform powered by the award winning social business group The Big Issue

Big-Exchange.jpg

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The Big Exchange was launched towards the end of 2020, and has partnered with a number of investment firms which offer ethical funds. 

You can select your own funds or choose from 3 model portfolios based on your risk profile. Funds are rated based on how much positive impact they generate towards people and the planet.

Risk Profile: 3 risk levels to choose: low, medium & high 

Performance: n/a (too early to tell)

Launch Date: Nov 2020

Number of funds: 13 in total

Active or Passive?: Active

Platform fee: 0.25% pa

Portfolio fee: Average 1.20% p/a

Fee on a £10,000 portfolio: £145 p/a

Minimum Investment: £100

+ Pros

- Ethical only platform, helping contribute to financial access and ethical investment in the UK

- There is a great deal of information on the ethical impact of your investments 

- Cons

- Has only recently launched so limited track record on the portfolios

 

tickr

Start up platform which creates a portfolio based on your risk profile and impact objectives

Tickr.jpg

Click here to go to site

 

tickr is a start up investment platform which only offers model ethical investment portfolios.

You choose your risk profile and then determine if you want your investments to benefit people, the planet, or both. tickr then use this information to build a portfolio customised to you, using passive ETFs.

Risk Profile: 3 risk levels to choose: low, medium & high 

Performance: Not disclosed

Launch Date: Jan 2019

Number of funds: 8 in total

Active or Passive?: Passive

Platform fee: 0.3% pa

Portfolio fee: Average 0.32% p/a

Fee on a £10,000 portfolio: £62 p/a

Minimum Investment: £5

+ Pros

- Very cost conscious, with a platform fee of just £1/ month for portfolios up to £3,000

- A great deal of information on the impact of your investments

 

- Ability to offset the carbon emissions of your portfolio 

- Cons

- Historic performance isn't outlined so difficult to tell how the portfolios have fared

- App-only functionality so can only be accessed on a phone/ tablet

 

OneFamily

Specialist family investment platform with one ethical fund option

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OneFamily is a specialist family investment platform, with its JISA offering 2 funds to choose from, with one ethical choice. Once your child turns 18, the account automatically turns into the adult ISA, and remains invested in the ethical fund option.

The ethical fund tracks the FTSE 4Good UK 50 Index.

+ Pros

- The OneFamily platform offers a wide variety of financial products for families, from Junior ISAs and child trusts, to life cover

- An established fund with a very long track record

- Cons

- Given that the portfolio is a passive fund, fees could be considered expensive

- UK only focus

Risk Profile: Higher risk

Performance: -13.3% in 2020; +c.29% 5 years to 31 Dec 2020

Launch Date: March 1982

Number of funds: 1

Active or Passive?: Passive

Total fee: 1.51% pa

Fee on a £10,000 portfolio: £151 p/a

Minimum Investment: £500

The OneFamily Ethical Stocks & Shares ISA invests into one fund, the Family Charities Ethical Trust, which in turn invest directly into large companies in the UK, rather than other funds like other model portfolios on this list.

 

Information on the fund is below:

Key Investor Information Document​ (KIID)

In depth booklet on the ISA

 

The Children's ISA

A specialist Children's investment platform that has one ethical fund option

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The Children's ISA is a dedicated JISA platform, and with that carries benefits such as a specialist service towards children. There are a number of investment options, with one ethical option. This is investment into the Edentree Amity International fund, an actively managed ethical fund with a long track record.

+ Pros

- Dedicated Junior ISA and Children's investment platform

- Invests into an established fund with a very long track record

- Cons

- Very expensive as a result of its 5% entry fee

- Only one ethical investment option

Risk Profile: Higher risk

Performance: +9.4% in 2020; +60.2% in 5 years to 31 Dec 2020

Launch Date: Sept 1999

Number of funds: 1

Active or Passive?: Active

Platform fee: 5% initial charge and 0.6% pa

Portfolio fee: 1.58% pa

Fee on a £10,000 portfolio: £151 p/a

Minimum Investment: £718

The Children's ISA has one ethical investment option, the Edentree Amity International fund, an actively managed ethical fund with a long track record.

Information on the fund is below:

Edentree fund literature

In depth booklet on the ISA