Best ETFs in the UK 2024 | Koody (2024)

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*The five-year performance of the ETFs in the table above is based on a lump sum investment of £10k in February 2019. This table was created in February 2024. Past performance is not a reliable indicator of future results.

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*OCF stands for “Ongoing Charges Figure.” It is a measure of the annual costs associated with investing in a particular ETF. The OCF includes management fees, administrative expenses, and other operating costs incurred by the fund.

Best US ETFs

Anyone in the UK will have noticed that a lot of the investing content online is focused on a US audience. That can make it difficult to decipher what is available to us here and what is reserved only for Americans.

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When it comes to ETFs, there is good news and bad news. The bad news is that buying US ETFs in the UK generally isn’t possible. The good news is that most of them are easily replicated with UK-approved equivalents.

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Here are some of the best US ETFs available in the UK:

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1. VUSA - Vanguard S&P 500 UCITS ETF

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One of the most popular US ETFs is the SPDR S&P 500 ETF (SPY). This well-known fund tracks the S&P 500, which is essentially the 500 biggest companies in the US.

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You’ll recognise many companies in this ETF, such as Apple, Google, Coca-Cola, Disney and Nike.

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The Vanguard S&P 500 ETF (VUSA) is one of the best ETFs in the UK for investors looking for exposure to the US stock market. Given that it makes up around 60% of the total global stock market, that’s probably a smart move. The VUSA ETF is theSPY equivalent in the UK.

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As with most ETFs, the price is right, with VUSA charging an ongoing fee of just 0.07% per year.

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Tap the button below to buy VUSA - Vanguard S&P 500 ETF. Capital at risk.

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2. CIND - iShares Dow Jones Industrial Average UCITS ETF

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The Dow Jones Industrial Average (DJIA) is one of the oldest stock market indices in the world. While the S&P 500 was created in 1957, the DJIA started way back in 1896.

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It only contains 30 stocks, and the companies are chosen by a committee with the aim of representing the US economy as a whole.

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In the US, the most popular ETF that tracks this index is the SPDR Dow Jones ETF (DIA). A great Dow Jones ETF alternative in the UK is the iShares Dow Jones Industrial Average ETF (CIND), which does the same thing for an ongoing management charge of 0.33%.

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Tap the button below to buy CIND - iShares Dow Jones Industrial Average ETF. Capital at risk.

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3. CNDX - iShares NASDAQ 100 UCITS ETF

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The third major index in the US is the NASDAQ 100. This is a much more recent invention, with the NASDAQ 100 commencing in 1985. It’s an index that includes only non-financial companies, with a heavy emphasis on technology.

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All the biggest names you’d expect to find are there, including Microsoft, Alphabet (Google), Apple, Netflix, Meta (Facebook) and some smaller tech companies like Zoom and DocuSign.

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QQQ is the acronym you’ll most hear when it comes to investing in the NASDAQ 100, with the Invesco QQQ ETF a popular option in the States.

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For us Brits, a great Technology ETF is the iShares NASDAQ 100 ETF (CNDX), which covers the same bases. The CNDX ETF is theQQQ equivalent in the UK. Like CIND, it has an ongoing management charge of 0.33%.

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Tap the button below to buy CNDX - iShares NASDAQ 100 ETF. Capital at risk.

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Best UK ETFs

Investing in UK ETFs is fairly straightforward. The UK market is smaller and less diversified than the US, but there is still a range of different ETFs to choose from.

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There are many different companies offering index tracker options for UK investors, but below are our picks for the best ETFs to buy now and into the future:

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4. ISF - iShares Core FTSE 100 UCITS ETF

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A FTSE 100 ETF is a great place to start for investing in the UK. The iShares Core FTSE 100 (ISF) is one of the best ETFs to buy now for exposure to the UK stock market.

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The FTSE 100 index represents the largest 100 companies listed on the London Stock Exchange. It’s comprised of large multinational companies generally in stable industries like finance or resources.

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Some of the biggest companies include AstraZeneca, BP, Unilever, HSBC and Shell.

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ISF provides exposure to the FTSE 100 and is a very low-cost ETF. It only charges management fees of 0.07% per year.

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Tap the button below to buy ISF - iShares Core FTSE 100 ETF. Capital at risk.

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5. INXG - iShares £ Index-Linked Gilts UCITS ETF

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For investors looking to buy UK ETFs that are lower on the risk spectrum, an index-linked gilt ETF is an excellent option to consider.

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Gilts are UK government bonds that pay a fixed level of interest. Index-linked gilts don’t pay a fixed interest rate but instead pay a fixed margin above inflation. This can make them attractive at times of high inflation (like now) because the income investors receive increases as inflation rises.

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The iShares £ Index-Linked Gilts ETF gives investors exposure to this low-risk investment and charges just 0.10% per year in fees.

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Tap the button below to buy INXG - iShares Index-Linked Gilts ETF. Capital at risk.

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6. VMIG - Vanguard FTSE 250 UCITS ETF

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While the FTSE 100 is the most commonly used measure for the UK stock market, it doesn’t necessarily reflect the UK economy. That’s because many of the biggest UK-listed companies make most of their money outside the UK.

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The FTSE 250 provides a better measure of companies that do most of their business domestically. As well as the FTSE 100 companies, it adds others such as ITV, Easyjet, Marks & Spencer, Greggs and Pets at Home.

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The Vanguard FTSE 250 ETF (VMIG) is a great option for investors here, with a low ongoing management charge of 0.10%

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Tap the button below to buy VMIG - Vanguard FTSE 250 ETF. Capital at risk.

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Best Emerging Market ETFs

For investors looking for a little extra spice in their portfolio, emerging markets can offer some additional diversification and the chance to generate sizable gains. Emerging markets tend to be more volatile than developed economies like the US and UK, but in return, they can serve up some big wins for investors.

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Here is one of the best emerging market ETFs available in the UK:

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7. EIMI - iShares Core MSCI Emerging Market IMI UCITS ETF

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One of the best-emerging market ETFs in the UK is the iShares Core MSCI Emerging Market IMI ETF (EIMI).

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Chinese companies make up the largest component of this ETF at around 27%, with India, Taiwan, South Korea and Brazil rounding out the top five. There are still plenty of major brand names to be found in this fund.

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Samsung, Alibaba, Tencent, Infosys, and The Saudi National Bank are just some of the multi-billion dollar companies that can be found on the list of top holdings.

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EIMI tracks the MSCI Emerging Markets Index and offers exposure to a wide range of growth economies for a surprisingly low ongoing management fee of 0.18%.

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Tap the button below to buy EIMI - iShares Core MSCI Emerging Market IMI ETF. Capital at risk.

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Best Global ETFs

While all of the above are good ETFs to invest in, they require picking and choosing which countries and indexes to allocate your funds to. That’s fine if you want to do the research and analysis, but many investors want a more hands-off approach.

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If that’s you, a global tracker might be just the ticket.

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Here is one of the best global ETFs available in the UK:

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8. VWRL - Vanguard FTSE All-World UCITS ETF

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This ETF offers a diversified portfolio of stocks from all across the world. This is weighted according to the global market, so North American stocks make up the bulk of the fund at around 63%.

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European companies are the second largest holding with around a 15% weighting, followed by the Asia Pacific region and Emerging Markets, both with around 10% of the portfolio.

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VWRL has 3,762 individual stocks in the portfolio (at the time of writing). This means that just about any public company you use on a daily basis or see in the news regularly is likely to be held in this ETF.

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It’s a huge level of diversification and offers great value for money with an ongoing management charge of 0.22%.

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Tap the button below to buy VWRL - Vanguard FTSE All-World ETF. Capital at risk.

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Best Commodity ETFs

Many people want exposure to gold, silver, oil, farm produce, and other commodities but would rather not invest in them directly. If that’s you, then a commodity ETF could be worth considering.

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Here is one of the best commodity ETFs available in the UK:

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9. SGLN - iShares Physical Gold ETC

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If you want to diversify your portfolio with some commodity ETFs or simply want to invest in gold without buying the physical asset, the iShares Physical Gold ETC (SGLN) could be a good fit for you. An ETC is an Exchange-Traded Commodity, similar to an ETF.
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This ETC only accepts gold that meets The London Bullion Market Association (LBMA) Good Delivery rules. In line with these rules, the bars also aim to comply with LBMA’s Responsible Sourcing Programme, ensuring that 100% of the gold bullion backing the ETC is responsibly sourced.
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Investing in the SGLN gives you targeted exposure to the gold spot price. It is a medium-risk ETC compliant with Shariah investment principles. It is also eligible for UCITS, ISA, and SIPP and comes at a low annual total expense ratio of 0.12%.

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Tap the button below to buy SGLN - iShares Physical Gold ETC. Capital at risk.

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Best Multi-Asset ETFs

Lastly, an investor who wants a truly set-and-forget ETF can consider a multi-asset global tracker fund. These aren’t all that common in ETF form (they’re most commonly available as index tracker funds), but Blackrock offers various options across a range of risk levels.

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These work in the same way as any of the other ETFs on this list, except that they hold more than one asset type.

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Here is one of the best multi-asset ETFs available in the UK:

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10. MAMG - BlackRock ESG Multi-Asset Moderate Portfolio UCITS ETF

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Finding the right level of risk will be different for every investor, so we’re just going middle of the road with this one. The Blackrock ESG Multi-Asset Moderate Portfolio (MAMG) offers investors a diversified ETF that holds around 45% in stocks and shares and around 55% in bonds and gilts.

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For investors who want more risk, there is an ETF that takes the same approach but with a higher weighting to shares (MAGR). For those who want a more conservative approach, MACG has under 20% invested in the stock market.

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Tap the button below to buy MAMG - BlackRock ESG Multi-Asset Moderate Portfolio. Capital at risk.

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Finding the Right ETFs for You

The list we provided earlier is a great starting point, highlighting the top 10 ETFs for UK investors. But keep in mind that not all of them might be the perfect fit for your personal situation.

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To find the right ETFs for you, especially if you’re a beginner investor, consider these factors:

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1. Risk Tolerance: Before investing in any ETF, think about how much risk you’re willing to take. This can depend on factors like your age, how long you plan to invest, and your personal comfort level with risk. If you’re more conservative, you might lean towards ETFs with a higher allocation to bonds and gilts. On the other hand, if you’re open to more risk, you could opt for ETFs with a higher percentage of stocks and shares.

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2. Investment Goals: Consider your overall financial plan and long-term goals. Are you investing for retirement, a home purchase, or your children’s education? Different goals may require different ETFs, so choose those that align with your objectives.
3. Existing Investments: Take a look at your current investment portfolio. When adding new ETFs, make sure they complement your existing holdings and help you maintain a diversified and balanced portfolio.
4. Geographic Allocation: Some investors prefer to focus on specific regions, like the US or Europe, while others want a more global approach. Choose ETFs that reflect your desired geographic exposure.
5. Investment Costs: Pay attention to fees and expenses associated with each ETF. Lower-cost options can make a significant difference in your long-term returns. Look for ETFs with low expense ratios and minimal trading fees.
6. Performance History: Although past performance doesn’t guarantee future results, it is still useful to review the historical returns of potential ETFs. This can give you an idea of how they have performed in various market conditions and help you make a more informed decision.
7. Provider Reputation: Finally, consider the reputation of the ETF provider. A well-established and reputable provider is more likely to offer reliable and stable investment products. Some of the most reputable ETF providers in the UK are BlackRock (iShares) and Vanguard, and you can buy their UK ETFs online from ETF brokers such as XTB, Interactive Investor, AJ Bell, and InvestEngine.

By taking these factors into account, you can confidently choose the right ETFs for you, setting yourself up for long-term investment success.

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Where to Buy ETFs in the UK

Here are the best places to buy ETFs in the UK:

1. XTB - 0% Commission on real stocks and ETFs; 350+ ETFs
2. Interactive Investor - One free trade per month; 40,000+ Instruments
3. InvestEngine - Low cost; 500+ Commission-free ETFs
4. Freetrade - Low cost; 250+ Commission-free ETFs
5. AJ Bell - Mid-price range; 3,000+ ETFs
6. Hargreaves Lansdown - Lots of research; 15,000+ Instruments
7. Vanguard - Low cost; 70+ Funds

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Visit our comparison page for a detailed review of each ETF platform.

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