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Does an ETF count against your annual ISA allowance and if you have an ISA can you have an ETF with a different provider?

22 April 2022

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Question by Richard

Does an ETF count against your annual ISA allowance and if you have an ISA can you have an ETF with a different provider?


Answered by Joshua Gerstler

Hi Richard,

In simple terms, an ETF (Exchange Traded Fund) is a type of tracker fund.

You can hold an ETF in most investment wrappers including an ISA and Pension.

If you hold an ETF in a General Investment Account then it does not count towards your ISA allowance.

If you purchase it in your ISA then yes it counts towards your £20,000 ISA allowance.

You can hold an ETF with any provider that allows it and this can be a different provider from your ISA provider.

I hope that helps!

Josh

Answered by

Joshua Gerstler

Chartered Financial Planner

I have been working in Financial Services for over 16 years. I started out at Deloitte where I trained and qualified as a Chartered Accountant before moving to Financial Advice/Planning at The Orchard Practice in 2011.