InvestEngine ISA Expert Review: About As Cheap As Possible For ETF Based ISAs
Account: InvestEngine Stocks & Shares ISA
Description: InvestEngine's ISA lets you invest in ETFs on a DIY or managed basis. If you pick your own ETFs (from a choice of 600) it's completely free.
Is InvestEngine's ISA Any Good?
InvestEngine‘s ISA has become so appealing that they have onboarded over 5,000 Individual Savings Accounts since Vanguard raised it’s fees. Vanguard ETFs are one of the most popular investments on InvestEngine, and it’s now cheaper to buy them through InvestEngine rather than on Vanguard.
Pricing: Free – so it’s about as cheap as you can get. They say it can save you a whopping £279,070 compared to holding ETFs in an ISA with Hargreaves Lansdown if you use your full ISA allowance for 10 years on a DIY basis.
InvestEngine executed more than 7.5 million ETF trades last year, and launched a range of five low-cost managed portfolios called Lifeplans.
12% avg return on ETF investments, which customers can hold in an InvestEngine ISA.
Market Access: In total, InvestEngine allows clients to select from around 600 exchange-traded funds with zero commission, though the funds may carry their own charges. InvestEngine revealed its customers made an average return of 12% from their ETF investments on the platform in 2024.
This is somewhat underwhelming in comparison to the more than 25% gain made by the S&P 500, the main US stock index, over the same period.
Perhaps that is why InvestEngine chose instead to note it beats the relatively paltry 5% rise in the UK’s FTSE 100 stock index last year.
However, it is worth pointing out that the platform offers access to money market ETFs, which typically offer lower returns than stocks at much lower risk. The overall average return made by its customers noted above will be skewed downwards by those selecting these types of trackers.
Indeed, the most popular fund on the platform in December was the Lyxor Smart Overnight Return money market strategy, which also came second place in September. It aims to return more than the average overnight interest rate banks lend money to each other.
The other most popular ETFs on the platform in December 2024 were a mix of US and global stock index trackers. These can be viewed in the table below:
InvestEngine’s five most popular ISA ETFs in December 2024
Lyxor Smart Overnight Return CSH2
Vanguard S&P 500 VUAG
Invesco FTSE All-World FWRG
Vanguard FTSE Developed World VHVG
Vanguard FTSE All-World VWRP
App & Platform: Really simple
Customer Service: Email only
Research & Analysis: Some good education and insights from Andrew Prosser.
ISA Transfer Offer: Customers who transfer an existing ISA, or open and fund a new account with us could earn a bonus of up to £4,000 but must remain invested for at least 12 months to qualify for it.
Pros
- Free for DIY investors
- Managed ISA available
- Over 600 ETFs to choose from
Cons
- No US-listed ETFs
- No interest on uninvested cash
- No individual shares
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Pricing
(5)
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Market Access
(4.5)
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App & Platform
(5)
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Customer Service
(4.5)
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Research & Analysis
(4.5)
Overall
4.7
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
