Index-tracking ISA
Index-tracking ISA - The basics
- Index-tracking ISAs (sometimes called tracker ISAs) aim to produce a return in line with a market or sector, for example, Europe or technology.
- The fund's investments accurately reflect those of the selected Index.
- Tracker ISAs require less management than other investment ISAs, allowing us to offer you low charges, meaning more of your money remains invested.
- You might be reassured to know that Legal & General is one of the biggest providers of index-tracking investments in the UK, managing £214 billion as at 31 December 2007.
- There are nine index-tracking trusts to invest in and you can apply for an ISA online today.
- Once you have invested with us you can manage your investments online, anytime.
- ISAs are designed as medium to long term investments of, ideally, at least five years.
- Both capital and income values may fall as well as rise and are not guaranteed. You may not get back the money you invested.
- If you choose an index-tracking ISA which invests overseas, changes in exchange rates between currencies may cause the value of your investment and the level of income to rise or fall.
- Refer to risk factors for the other risks associated with this product.
To find out more about ISAs, read our guides to investing.
Your options
Legal & General offers a wide range of low cost index-tracking ISAs (tracker ISAs).
- You can choose to invest in geographic regions, for example the UK, Europe, US, Pacific or Japan.
- You can choose to follow the performance of a single sector, such as technology or health and pharmaceuticals.
- Or you can simply invest across some of the largest companies in the world (the Global 100 Index Trust).
- You can invest a minimum lump sum of £500 or a regular minimum contribution of £50 per month.
- All these ISAs are stocks and shares ISAs.
- The index-tracking ISA product table clearly lists the management charges for these ISAs.
- See how each of our index-tracking ISAs has performed for the last five years using the fund performance table.
The charges
- None of our index-tracking ISAs have an initial fee or an exit fee.
- Charges are kept low, meaning that more of your money remains invested.
These trusts offer more than one class of units. The details below relate to the unit class 'R', which is the class available online:
| ISA Product | Initial Charge | Exit Fee | Annual Mgmt. Charge | Current Extra Exps* |
|---|---|---|---|---|
| UK Index (PDF 24KB) | Nil | Nil | 0.50% | 0.02% |
| European Index (PDF 24KB) | Nil | Nil | 0.75% | 0.05% |
| US Index (PDF 24KB) | Nil | Nil | 0.75% | 0.03% |
| Japan Index (PDF 24KB) | Nil | Nil | 0.75% | 0.04% |
| Pacific Index (PDF 24KB) | Nil | Nil | 0.75% | 0.08% |
| Global Technology Index (PDF 16KB) | Nil | Nil | 1.00% | Nil |
| Global Health and Pharmaceuticals Index (PDF 16KB) | Nil | Nil | 1.00% | Nil |
| Global 100 Index (PDF 28KB) | Nil | Nil | 1.00% | Nil |
| UK 100 Index (PDF 28KB) | Nil | Nil | 0.75% | 0.09% |
* these expenses include auditors, trustees custodian and regulator fees.
Risk factors
All investments carry an element of risk. Please bear in mind that:
- Our ISAs are designed as medium to long term investments, for example at least five years.
- Both capital and income values may fall as well as rise and are not guaranteed. You may not get back the money you invested.
- The tax efficiency of ISAs is based on current tax law. Please note that the current tax situation may not be maintained.
- If you choose an index-tracking trust which invests overseas, exchange rate variations may cause the value of your investment and the level of income to rise and fall.
- Each index tracking trust has its own aims and risk factors. These are detailed in the Key Information document (including Simplified Prospectus), which can be downloaded from the right-hand side menu. Before you decide to invest, you must read this document.
