Stocks and Shares ISAs allow you to invest directly and tax-free into the stock market via companies, investment trusts and investment funds. There are thousands of options to invest into, meaning that you can tailor investment depending on your risk appetite and the types of things you want to invest into.

Last Updated: March 2021

Stocks and Shares ISA

If you don’t have a financial advisor, you have two options with your Stocks and Shares ISA - doing 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 risk appetite.

‘Do It Yourself’ Ethical Stocks & Shares ISAs

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

Different Stocks and Shares ISA 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 ISAs

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 ISAs, summarised in the table below.

 

We also go into more depth and outline the pros and cons of each of the providers, click the links to go to each:

Traditional Providers

Roboadvisors

Specialist Ethical Platforms

ISA Provider
Risk Profile
2020 Performance
Fee on £10,000
Passive/
Active?
Weighted Average Carbon Intensity
Weighted MSCI ESG Rating
Weighted Average Percentile Rank

Growth

25.7%

£229

70.9

Active

AA

90

Balanced

5.4%

£185

57.2

Mix

AA

85

Growth

-

£125

56.1

Passive

AA

85

Choice of 10

9.4%

£106

46.7

Passive

AA

91

Choice of 5

13.4%

£116

72.2

Mix

A

74

Choice of 9

-

£97

61

Passive

AA

92

Choice of 3

-

£145

125.9

Active

AA

80

Choice of 3

-

£62

129

Passive

A

55

Choice of 2

28.9%

£140

87.1

Active

AA

96

Growth

-13.3%

£151

139.2

Passive

AAA

98

 
 

Traditional Providers

Interactive Investor

One model ethical portfolio focusing on long-term growth

Click here to go to site

 

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: None

Av. Carbon Intensity: 70.9 tonnes

Av. MSCI Rating: AA

Av. Percentile Rank: 90

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

Av. Carbon Intensity: 57.2 tonnes

Av. MSCI Rating: AA

Av. Percentile Rank: 85

AJ Bell

Recently launched portfolio with a focus on globally diversified equity ETFs

Click here to go to site

 

AJ Bell has 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

Av. Carbon Intensity: 56.1 tonnes

Av. MSCI Rating: AA

Av. Percentile Rank: 85

 
 
 
 

Roboadvisors

Nutmeg

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

Click here to go to site

 

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.

+ 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

- Minimum investment of £500

- 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: £500

Av. Carbon Intensity: 46.7 tonnes

Av. MSCI Rating: AA

Av. Percentile Rank: 91

Wealthify

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

Click here to go to site

 

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.

+ 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

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

Av. Carbon Intensity: 72.2 tonnes

Av. MSCI Rating: A

Av. Percentile Rank: 74

Wealthsimple

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

Click here to go to site

 

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

Av. Carbon Intensity: 61.0 tonnes

Av. MSCI Rating: AA

Av. Percentile Rank: 92

+ 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

The Big Exchange

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

Big-Exchange.jpg

Click here to go to site

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.

+ 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

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

Av. Carbon Intensity: 125.9 tonnes

Av. MSCI Rating: AA

Av. Percentile Rank: 80

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 uses this information to build a portfolio customised to you, using passive ETFs.

+ 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

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

Av. Carbon Intensity: 129.0 tonnes

Av. MSCI Rating: A

Av. Percentile Rank: 55

Triodos

One of the only ways for retail investors to access ethical investment firm Triodos' funds

triodos.png

Click here to go to site

 

Triodos is an award winning investment firm which only focuses on ethical investments.

 

Triodos' Stocks and Shares ISA offering is a little different to others in this list, in that the 3 underlying funds on offer invest directly into companies, rather than into other funds. It therefore requires a bit more knowledge of investments than the other solutions on offer.

+ Pros

- One of the only ways for retail investors to access Triodos funds

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

- Funds have been in operation for a number of years

- Cons

- Only gives you access to the three Triodos funds

 

- No balanced risk option unless you combine the different funds yourself

 

 

Risk Profile: 3 funds; 2 high risk (equities); 1 low risk (fixed income) 

Performance: Global Equities Impact Fund: +12.5% in 2020; +68.4% 5 years to 31 Dec 20

Pioneer Impact Fund: +28.9% in 2020; +65.1% last 5 years

Launch Date: Global Equities Impact Fund: April 2013

Pioneer Impact Fund: Apr 2013

Sterling Bond Impact Fund: Oct 2021

Number of funds: Up to 3

Active or Passive?: Active

Platform fee: 0.4% pa

Portfolio fee: Average c.1% p/a

Fee on a £10,000 portfolio: £140 p/a

Minimum Investment: £1,000

Av. Carbon Intensity: 87.1  tonnes

Av. MSCI Rating: AA

Av. Percentile Rank: 96

Triodos offers 3 investment funds to invest in, two of which invest into global equities, and a recently launched fund focused on Sterling-denominated bonds.

 

Global Equities Impact Fund

Click here to go direct to the investment fund

Pioneer Impact Fund

Click here to go direct to the investment fund

Sterling Bond Impact Fund

Click here to go direct to the investment fund

OneFamily

One ethical fund which tracks the FTSE 4Good UK 50 Index

Click here to go to site

 

OneFamily offers one fund that can only be invested into via its platform, which invests into the 50 largest companies by market capitalisation quoted on the London Stock Exchange, which can demonstrate strong ethical compliance. 

The 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