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

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)

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