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    • Home • Advice • Common questions

    Is it wise to add a sustainable index fund to the ISA?

    24 May 2022

    Question by Lara

    If I invest in a ready-made portfolio but it doesn't include any sustainable/ ESG assets, is it wise to add a sustainable index fund to the ISA?
    I am thinking of investing in Vanguard (originally thought InvestEngine but Vanguard has lower fees)

    Answered by Boring Money

    Hi Lara,

    Your ready made portfolio will probably have ESG assets within it already.

    However, it is also likely to have non-ESG investments too.

    The question to ask yourself is whether ESG investing is important to you and if so, how much of your portfolio would you like to be invested in this manner.

    The returns of ESG vs non-ESG will probably alternate as to which is better, so your decision should be based on your beliefs and investment philosophy.

    In terms of holding it in an ISA, there is a great place to do so as it is very tax efficient.

    I hope that helps.

    Joshua Gerstler
    FPFS, Cert SMP, FCA
    Chartered Financial Planner

    Answered by

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    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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