This tax year ends 5 April. That means you've got just over a week to make the most of this year’s £20,000 ISA allowance.
It’s busy here at HL HQ. But I’ve managed to sneak some time to speak to a handful of my HL colleagues, to see where they’re investing their own Stocks and Shares ISAs.
It’s always interesting to see what others are getting up to. But please don’t consider these as investment ideas, or personal recommendations. None of this is personal advice. If you’re not sure what’s right for you, ask for financial advice.
Investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in. Remember, tax rules can change and any benefits depend on personal circumstances.
None of these HL colleagues are investment experts. They don’t work in our professional research teams.
ETFs (exchange traded funds) are increasingly popular with UK investors.
“It’s easy to see why. They're really easy to invest in, give my portfolio the diversification it needs and give me access to global markets – often at a lower cost than standard funds.
I've chosen to invest in iShares S&P Small Cap 600. Despite uncertainty surrounding president Trump, this ETF gives me access to higher-risk small and medium companies that could offer great potential in the world’s largest economy.
If you invest in shares, ETFs or investment trusts in your HL Stocks and Shares ISA, our annual management charge of 0.45% is capped at £45 per year. ETFs also typically have an annual charge and you’ll also need to consider dealing charges.”
Take advantage of your £20,000 ISA allowance with our most popular account, the HL Stocks and Shares ISA.
Save tax. Pay no UK income or capital gains tax on investments in your ISA.
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Nadeem Umar
Head of Investment Helpdesk
The US is home to some truly outstanding mega-cap companies that could prove painful to ignore. But price matters.
"With the Shiller PE ratio at the second highest it's been in history, I've reduced my own exposure to the US and specifically large technology companies.
I don't see all markets as expensive. Gaps in valuation have continued to open up and draw my attention. The UK, emerging markets and Japan look appealing to me, as well as smaller companies.
I've started or increased my positions in collective investments that aim to find the best in these areas.
Liontrust Micro Cap, Baillie Gifford Shin Nippon and Mobius Investment Trust make up a big chunk of my overall portfolio. It's true emerging markets and smaller companies are typically higher risk, particularly when combined. But high valuations also carry risk.
Deviating so far from global market weightings means I need to be even more comfortable sitting on my hands. US companies could keep outperforming and leave me behind. In the long term though, I think the underlying companies I own will do well. And growth in earnings while valuations come back to long-term averages could supercharge your compounding engine."
Anna Louden
Product Manager
This year, I’ve increased the monthly investment in my Stocks and Shares ISA to £200.
“I split this between an international equity index fund and an S&P 500 index fund. I’m focused on growing these funds for the long term, with the aim of using my Stocks and Shares ISA for a future adventure.
Both funds offer a diverse approach, with the international equity fund providing global exposure and the S&P 500 fund offering a more concentrated focus on US companies.
With no immediate need for the money, I’m comfortable taking on some risk and navigating the inevitable ups and downs of the stock market. My strategy continues to be one of patience, letting these investments potentially grow free from tax over the years.”
Where I’m investing my own Stocks and Shares ISA
I like to keep things simple when it comes to making the most of my own ISA allowance.
"I top up my HL Cash ISA on an ad-hoc basis, so that I’ve got access to cash if I need it.
But outside of my pension, I invest the majority of my savings in my HL Stocks and Shares ISA via a monthly Direct Debit. This keeps me in the habit of saving regularly and means I don’t have to worry about timing the market.
My core Stocks and Shares ISA holdings include a mixture of funds and ETFs, giving me broad global diversification across international markets.
These include investments in trackers like iShares III Plc MSCI World Small Cap and Legal & General European Index, as well as some more focused, actively-managed investments like Jupiter India.
I’m comfortable with the fact that my investments will fluctuate in value in the short term. But over the years, I know they offer the opportunity of inflation-beating returns. In fact, for 91% of 10-year periods, investments in shares have done better than holding cash.
Keep things simple with our expertly managed, all-in-one investments.