Best ETFs in the UK
In the UK, exchange-traded funds have been growing in popularity in recent years. ETFs, which trade on an exchange much like stocks, allow investors to have exposure to a diverse portfolio of assets, such as bonds, commodities and currencies. ETFs have many benefits including lower fees and tax efficiency as well as easy access to various markets and asset types. Check out the best etf options in this blog and our recommended platforms.
This blog will discuss the top ETFs available in the UK, which you as an investor might want to add to your portfolio.
Vanguard FTSE All World UCITS ETF Vanguard (VWRL)
Vanguard FTSE All-World UCITS is a well-known ETF which provides broad exposure to a wide range of global equities. This fund aims at tracking the performance of FTSE All-World Index. It includes more than 3,000 companies in developed and emerging markets throughout North America, Europe and Asia-Pacific. Investors looking for global equity exposure will love the ETF’s low cost ratio at 0.22%. It is also highly diversified.
iShares Core MSCI World UCITS UCITS ETF (SWDA)
Another popular ETF, the iShares Core Microsoft World UCITS ETF, provides global exposure. This fund tracks the MSCI World Index’s performance, which encompasses over 1,600 companies in developed markets throughout North America, Europe and Asia-Pacific. It has an expense ratio of 0.2% and is extremely diversified making it a great choice for investors looking to be exposed to equity markets.
iShares Core FTSE 100 UCITS EFTF (ISF).
The iShares Core FTSE 100 UCITS TF provides exposure to 100 of the most prominent companies on the London Stock Exchange. This fund aims at tracking the performance of the FTSE 100 Index. It includes companies in various industries such as energy, finance and health. Investors looking to get exposure to UK stocks market can choose the ETF with a low cost ratio at 0.07%.
Vanguard S&P 500 ETF UCITS Vanguard (VUSA).
Vanguard S&P 500 UCIITS ETF provides exposure to 500 of the largest US companies. This fund tracks the performance of S&P 500 Index companies in various industries such as finance, technology and healthcare. Investors looking to get exposure to the US stock exchange will find this ETF a great choice because of its low cost ratio (0.07%).
iShares Core FTSE 250 UCITS EFTF (MIDD).
The iShares Core FTSE250 UCITS ETF provides exposure to 250 of the largest listed companies on London Stock Exchange. This fund aims at tracking the performance of FTSE 250 Index. It includes companies in various industries such as healthcare and consumer goods. Investors looking to be exposed to UK mid-cap companies with low costs of entry will love the ETF’s 0.15% expense ratio.
iShares Physical Gold ETC(SGLN).
An ETF offering exposure to physical gold is the iShares Physical ETC. This fund tracks the London Bullion Market Association’s (LBMA), Gold Price performance, which reflects gold price performance. Physically, the ETF is backed by bullion gold held in vaults. It has an expense ratio of 0.2%. This ETF is an excellent choice for investors who want to have exposure to gold, either as a safety asset or as a hedge against rising inflation.
Best Trading Platforms to Buy UK ETF’s
To buy ETFs, there are many trading platforms that can be used in the UK. These are the top trading platforms you should consider.
Hargreaves Lansdown
Hargreaves Lansdown, one of the most well-known and largest trading platforms in Britain is Hargreaves Lansdown. It offers investors access to many markets including Europe, the US and UK. Hargreaves Lansdown is a simple platform that allows investors to access research tools and analyze data to make educated investment decisions. It charges a 0.45% platform fee for investments above PS250,000, however, this is a high-cost option.
AJ Bell Youinvest
Another popular UK trading platform is AJ Bell Youinvest, which offers investors access to ETFs as well as other products. It offers investors the opportunity to trade in ETFs offered by several companies, such as Vanguard and iShares, across a variety of countries, including Europe and the US. AJ Bell Youinvest offers a user-friendly platform with competitive fees. There is a 0.25% platform fee for investments above PS1 million.
Interactive Investor
Interactive Investor offers investors access to ETFs as well as other products. It allows investors access to multiple markets including Europe, the US and UK. Investors can also invest in ETFs offered by several companies, such as Vanguard and iShares. Interactive Investor provides a variety of analysis and research tools that help investors make educated investment decisions. The platform charges a monthly fee of PS9.99 or PS119.88 annum.
Fidelity
Fidelity, a trading platform which offers ETFs as well as other products for investors, is available. The platform allows investors access to multiple markets including Europe, the US and UK. It also lets them invest in ETFs offered by several companies, such as Vanguard and iShares. Fidelity provides a variety of analysis and research tools that help investors make educated investment decisions. There is a minimal platform fee (0.35%) for investments below PS7500, and no fee for investments over PS7500.
Vanguard Investor
Vanguard Investor, a trading platform which is part of Vanguard Group is one of the most prominent providers of ETFs worldwide. Investors can access a variety of Vanguard ETFs as well as other products through the platform. They are able to make investments in many markets including Europe, America, and Europe. Vanguard Investor is a user-friendly platform with competitive fees. There’s a 0.15% platform fee for investments below PS250,000, and there’s no fee for investments over PS250,000.
Investors’ investment preferences and needs will determine which trading platform is best for them. When choosing a trading platform, investors should take into account fees, available investment products, user-friendliness, as well as research and analysis tools. Before making investment decisions, it is important that investors do their research.
IG
IG is a popular trading platform that offers access to ETFs and other investment products. The platform offers a range of markets, including the UK, US, and Europe, and allows investors to invest in ETFs from several providers, including iShares and Vanguard. IG offers a user-friendly platform and provides access to research and analysis tools to help investors make informed investment decisions. However, it has relatively high fees, with a platform fee of 0.5% per annum on investments up to £250,000.
E*TRADE
ETRADE is a trading platform that offers access to ETFs and other investment products. The platform offers access to several markets, including the UK, US, and Europe, and allows investors to invest in ETFs from several providers, including iShares and Vanguard. ETRADE offers a range of research and analysis tools to help investors make informed investment decisions and has competitive fees, with a platform fee of 0.35% per annum on investments up to £250,000.
DEGIRO
DEGIRO is a trading platform that offers access to ETFs and other investment products. The platform offers access to several markets, including the UK, US, and Europe, and allows investors to invest in ETFs from several providers, including iShares and Vanguard. DEGIRO offers a user-friendly platform and provides access to research and analysis tools to help investors make informed investment decisions. DEGIRO has competitive fees, with a platform fee of 0.20% per annum on investments up to £250,000.
Trading 212
Trading 212 is a trading platform that offers access to ETFs and other investment products. The platform offers access to several markets, including the UK, US, and Europe, and allows investors to invest in ETFs from several providers, including iShares and Vanguard. Trading 212 offers a range of research and analysis tools to help investors make informed investment decisions and has competitive fees, with no platform fee on investments up to £10,000.
InvestEngine
InvestEngine is a UK-based online investment platform that offers investors access to ETFs. The platform offers pre-built portfolios consisting of low-cost ETFs that are diversified across different asset classes, geographies, and sectors. Investors can choose from four different portfolios based on their investment objectives and risk tolerance.
InvestEngine offers a user-friendly platform and provides investors with access to a range of research and analysis tools to help them make informed investment decisions. The platform’s fees are competitive, with an annual platform fee of 0.25% on investments up to £100,000, and 0.15% on investments over £100,000.
InvestEngine’s pre-built portfolios provide investors with a convenient and cost-effective way to invest in ETFs. However, the platform’s offerings are limited to the four pre-built portfolios, so investors who want more control over their investments may prefer to use a platform that offers more customization options.
Charles Stanley Direct
Charles Stanley Direct is a trading platform that offers access to ETFs and other investment products. The platform offers access to several markets, including the UK, US, and Europe, and allows investors to invest in ETFs from several providers, including iShares and Vanguard. Charles Stanley Direct offers a range of research and analysis tools to help investors make informed investment decisions and has competitive fees, with a platform fee of 0.25% per annum on investments up to £250,000.
Conclusion
ETFs have become increasingly popular among investors in the UK due to their low fees, diversification benefits, and ease of use. When choosing a trading platform to invest in ETFs, investors should consider factors such as fees, investment products offered, research and analysis tools, and user-friendliness. The best trading platform for an investor will depend on their investment needs and preferences. The above-listed trading platforms are some of the best options available in the UK for investors looking to invest in ETFs. However, investors should conduct their own research and due diligence before making any investment decisions. Check out our recommendations page to register to a trading platform.
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