Can I buy ETF's in ISA Wrapper?

sva19

I currendly have my Stock ISA with Fidelity where I buy unit trust funds.

Fidelity do not allow ETF buys.

I have a share trading account with Share.com, can I buy Shares and ETFS as ISA with them?

Ideally I want the below

Cash ISA - with a bank
Stock ISA - with fidelity
Shares ISA - with ???

ses6jwg

I think you can only open one account with one provider per year.

tradetime

Yes, most Self Select S&S ISA's will allow you to buy and hold ETF's

sva19

My share.com does allow me to have ETF and shares in ISA. But does that mean I would have to transfer all my Fifelity Unit trust ISA to Share.com?

My fidelity Stock ISa is running each year as I invest monthly in them.

tradetime

I believe (someone will correct if I'm wrong) you can only commit new money to one ISA provider per tax year, thus if you contribute to your S&S ISA in monthly installments, then you would need to have only one ISA, unless you were going to buy ETF's this year, and Unit trusts next year.

sva19

Thanks, no I need to continue my S&S ISA with Fidelity in monthly instalments.

So the only way around this is to find a new provider for my S & S ISA which also allow EFT in ISA? Does Hargreave Landsown allow this?

Another question is buying EFTs as monthly invest cost effective, I plan to buy say Lyxor India £100 per month (with share.com dealing cost only £2.50 for Buys when in Batch? Sells Would be £7.50)

ses6jwg

sva19 wrote: »

Thanks, no I need to continue my S&S ISA with Fidelity in monthly instalments.

So the only way around this is to find a new provider for my S & S ISA which also allow EFT in ISA? Does Hargreave Landsown allow this?

Another question is buying EFTs as monthly invest cost effective, I plan to buy say Lyxor India £100 per month (with share.com dealing cost only £2.50 for Buys when in Batch? Sells Would be £7.50)

Interactive Investor do.

Currently free to buy shares in monthly installments, £1.50 after June 2009.

No stamp duty on ETFs either, and no inactivity/ management fees


www.iii.co.uk

tradetime

Sorry, still working, have no idea about what H&L allows or doesn't. £100 per month would be an expensive way to buy ETF's or any other stock for that matter. Buying through a provider like Interactive Investor (iii) would allow you to buy for £1.50 as long as you are willing to buy on a pre-planned date, probably like share.com, they collect all the orders and bulk them through on the same day, but be aware that there are often restrictions on what shares can be bought. Sales with iii cost £10

sabretoothtigger

I have the lyxor india tracker, tracks the nifty fifty stocks right . There is a management charge for the etf itself, 0.75% I think and iii will charge £10 for a sale

http://www.onemint.com/2009/12/16/india-etf-for-uk-investors/


Ive found with iii you can setup and fund the account for pre planned investment as late as 6.30am on the day it'll go ahead.

Since india trades before us and closes about 8am I think it is, you could get a pretty good estimate of what your buying into. Share.com allows more flexibility but I think iii is good enough

danny_x

Is there a tax advantage to holding an ETF within an ISA rather than outside it?

With normal shares, the annual charge by an ISA provider is more or less equal to the standard rate tax saving on the dividend, so the only people who benefit are the higher rate tax payers (apart from avoiding any possible Capital Gains Tax in future).

I have some ETFs outside an ISA, and because they are all based abroad, e.g. in Ireland, I don't get the usual tax credit on the dividends. Therefore would I be better off holding ETFs in an ISA and any other shares outside the ISA?

Complicated, isn't it?

Biggles

danny_x wrote: »

Is there a tax advantage to holding an ETF within an ISA rather than outside it?

With normal shares, the annual charge by an ISA provider is more or less equal to the standard rate tax saving on the dividend, so the only people who benefit are the higher rate tax payers (apart from avoiding any possible Capital Gains Tax in future).

I have some ETFs outside an ISA, and because they are all based abroad, e.g. in Ireland, I don't get the usual tax credit on the dividends. Therefore would I be better off holding ETFs in an ISA and any other shares outside the ISA?

Complicated, isn't it?

The only advantage is that, however much you gain in any one tax year, you don't pay capital gains tax.

There is no longer any difference in the treatment of dividends in an ISA as opposed to outside one, not even on Irish-based ETFs.