Can I invest in ETFs in an ISA wrapper?

Q: Can I invest in ETFs in an ISA wrapper?

A: In a word, yes. You can invest in exchange-traded funds (ETFs) within an ISA – but only if it’s a Stocks and Shares ISA, not a Cash ISA.

But I don’t think you’re alone in asking this question. So why is there ambiguity?

Partly, it’s down to how the market has evolved. Some providers historically only offered mutual funds and not ETFs, which meant they weren’t always available within an ISA. Today, many platforms – including Fidelity – offer a wide range of ETFs alongside other investments.

That said, not all ETFs are available to UK investors. Some, including many US-listed funds, don’t meet UK or EU regulatory requirements, such as providing a Key Information Document (KID). That doesn’t mean ETFs are off-limits within an ISA, it simply means you’ll need to choose from those that meet UK or EU regulations.

If you’re thinking about investing in ETFs and want a place to start, you can explore our Select 50 – a list of funds chosen by experts – or browse the ETF category in our Investment Finder. We currently offer over 500 ETFs on our platform.

Got a burning question you want to ask? Why not drop us a line. Click here to ask your question.

• Read: What is an exchange-traded fund (ETF)? The basics
• Read: Top 10 best-selling ETFs in April
• Read: The funds that already invest in SpaceX

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.