You should not use ISO-8859-15, since it is less widely supported than ISO-8859-1, and does not give any real advantages over it, even when it works. If you use entities, end them with a semicolon: ë(not ë).
Regarding the use of symbols or references to objects, perhaps the best answer is: if you have to ask, use entities. But using characters as such is not a rocket of science, and this makes the source much more readable.
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