Investing basics

What’s the difference between stocks, tracker funds, and ETFs?

We offer stocks, tracker funds and exchange traded funds (ETFs) at Moneybox, so what’s the difference?

Stocks let you invest directly in some of the biggest and best-known US companies. When you buy a stock, you effectively own a slice of the company.

Investing in funds on the other hand doesn’t give you direct ownership of a company’s stock. Instead, rather than investing in one company, your money will be spread across a range of different companies that are included in a market index that the fund has been set up to track.

The good news is that you don’t have to choose one or the other. Instead, you can invest in stocks alongside your existing fund investments.

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

For Business Saver: T&Cs apply. Max one withdrawal per day.

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