Best Performing ETFs for UK Investors in 2026
Updated 10 October 2026 · Returns in pounds sterling, year to date to early October 2026
Quick answer
The best performing ETFs UK investors can buy in 2026 are specialist funds. Korea and semiconductor ETFs have roughly doubled this year, with the Franklin FTSE Korea ETF up 103% and the iShares MSCI Global Semiconductors ETF up 99.5%. Among the mainstream funds most people actually hold, the Nasdaq-100 leads on 25.4%, the S&P 500 is up 16.8% and the Vanguard FTSE All-World is up 16.1%.
- Best single ETF for most beginners: Vanguard FTSE All-World (VWRP), 0.14% a year.
- Cheapest way to own the US market: iShares Core S&P 500 (CSP1) or Vanguard S&P 500 (VUAG), 0.07% a year.
- Hold them in a Stocks and Shares ISA so you pay no UK tax on gains or dividends.
- Do not chase this year’s winner. Gold was 2025’s star at +53% and is down 2.7% in 2026.
Most people who search for the best performing ETFs are really asking a simpler question: where should I put my money? If you moved to the UK recently, that question comes with extra baggage. The fund names are full of jargon, the tickers look like typos, and nobody at work explains any of it.
This guide does two things. It shows you which ETFs have actually performed best in 2026, using real figures. Then it tells you which of them we think a beginner should own, because those two lists are not the same.
What is an ETF, in one minute?
An exchange-traded fund (ETF) is a single investment that holds lots of companies at once. Buy one share of an S&P 500 ETF and you own a small slice of 500 of the largest US companies. ETFs trade on the stock exchange like ordinary shares, so you can buy them through any investing app.
Three terms worth knowing before you look at the tables:
- Ticker: the short code you type into an app to find the fund, such as VWRP.
- Ongoing charge (OCF): the yearly fee the fund takes, shown as a percentage. 0.10% means £1 a year for every £1,000 invested.
- Accumulating vs distributing: accumulating funds reinvest dividends for you automatically. Distributing funds pay them out as cash.
If investing is completely new to you, our guide on what investing is and how it works covers the basics first.
Best performing ETFs UK investors can buy: the 2026 results so far
2026 has not been a calm year. Markets sold off in late February and March after conflict between the US and Iran pushed oil above $100 a barrel, then most had recovered by mid-April. The FTSE 100 broke through 10,000 points for the first time. Through all of that, money poured into anything connected to computer chips and artificial intelligence.
The chart below shows how ten popular London-listed ETFs have performed this year in pounds.
Source: justETF, GBP total returns, checked 10 October 2026. Past performance is not a reliable guide to future returns.
The full scorecard
| ETF | Ticker | What you own | 2026 YTD | 2025 | 5 years | Yearly fee |
|---|---|---|---|---|---|---|
| Franklin FTSE Korea | FLRK | South Korean shares | +103.3% | +81.5% | +186.2% | 0.09% |
| iShares MSCI Global Semiconductors | SEMI | Chipmakers worldwide | +99.5% | +42.7% | +353.4% | 0.35% |
| Invesco EQQQ Nasdaq-100 | EQQQ | 100 big US tech-led firms | +25.4% | +12.2% | +119.8% | 0.30% |
| Vanguard S&P 500 | VUAG | 500 large US companies | +16.8% | +9.4% | +93.9% | 0.07% |
| iShares Core S&P 500 | CSP1 | 500 large US companies | +16.8% | +9.4% | +93.9% | 0.07% |
| Vanguard FTSE All-World | VWRP | About 3,700 firms worldwide | +16.1% | +14.0% | +77.8% | 0.14% |
| iShares Core MSCI World | SWDA | Developed markets only | +15.1% | +12.7% | +81.0% | 0.20% |
| Vanguard FTSE Emerging Markets | VFEG | China, India, Taiwan and others | +13.4% | +17.0% | +41.1% | 0.17% |
| iShares Core FTSE 100 | ISF | 100 largest UK companies | +8.2% | +25.6% | +75.5% | 0.07% |
| iShares Physical Gold (ETC) | SGLN | Gold bars in a vault | −2.7% | +53.3% | +137.9% | 0.12% |
Source: justETF, total returns in GBP including dividends. “5 years” is the cumulative return, not a yearly average. Fees are each fund’s TER. The S&P 500 returns are rounded; the Vanguard and iShares versions differ by a few hundredths of a percent.
Why last year’s winner is rarely this year’s
Look again at the 2025 column. Gold and the FTSE 100 were the stars of 2025. In 2026 they sit at the bottom of the table. Korea did the opposite: the same Korea ETF fell almost 21% in 2024 before its run.
| ETF | 2024 | 2025 | 2026 YTD |
|---|---|---|---|
| Franklin FTSE Korea | −21.0% | +81.5% | +103.3% |
| iShares Physical Gold | +28.3% | +53.3% | −2.7% |
| iShares Core FTSE 100 | +9.6% | +25.6% | +8.2% |
| Vanguard FTSE All-World | +18.9% | +14.0% | +16.1% |
The All-World fund never topped the table, yet it delivered double-digit returns in each of those years. That is the point of a broad fund: you give up the chance of doubling your money in a year in exchange for not having to guess which corner of the market will win next.
The specialist funds can fall just as hard as they rise. The same semiconductor ETF lost 26.8% in 2022. Someone who bought at the top and panicked out in the dip would have locked in that loss.
The currency effect migrants often miss. Most of these funds hold assets priced in dollars. When the pound rises, your returns in pounds shrink. In 2025 the iShares Core S&P 500 returned 17.6% in US dollars but only 9.4% for a UK investor in sterling, because the pound strengthened against the dollar that year. Buying the GBP version of a fund saves you a conversion fee, but it does not remove this currency risk.
Our 4 picks: the best ETFs for UK beginners in 2026
We chose these on cost, size, diversification and how easy they are to buy in an ISA on UK apps. Raw performance came last on the list, for the reasons above.
1. Vanguard FTSE All-World (VWRP)
Fee: 0.14% a year · Holds: about 3,700 companies · 2026 YTD: +16.1% · Dividends: reinvested (VWRL is the version that pays them out)
If you only ever buy one fund, this is the one we would choose. It owns large and mid-sized companies across developed and emerging markets in a single holding, so you never need to decide between the US, Europe or Asia. Vanguard cut the fee from 0.19% to 0.14% in July 2026, which makes it cheaper than its main rival, the iShares Core MSCI World, while covering more of the world.
Watch out for: around 60% of the fund is in the US, so it is less “global” than the name suggests. It will also never be the top performer in a single year.
Buy VWRP with no platform fee on InvestEngine → See Vanguard Investor2. iShares Core S&P 500 (CSP1) or Vanguard S&P 500 (VUAG)
Fee: 0.07% a year · Holds: 500 large US companies · 2026 YTD: +16.8% · 5 years: +93.9%
These two funds track the same index for the same 0.07% fee, and their returns are almost identical. Pick whichever your app offers. The S&P 500 has been one of the strongest long-run performers available to UK investors, and at 0.07% you keep almost all of the return.
Watch out for: you are betting on one country, and a handful of giant tech companies make up a large share of the index. Our guide on how to invest in the S&P 500 from the UK walks through the details.
View iShares Core S&P 500 → View Vanguard S&P 5003. iShares Core FTSE 100 (ISF)
Fee: 0.07% a year · Holds: the 100 largest UK-listed companies · Dividend yield: about 3.1% · 2025: +25.6%
The FTSE 100 is packed with banks, oil companies, miners and consumer brands that pay generous dividends, paid out to you every quarter. It works well alongside a global fund if you want some income or simply want part of your money in the country where you live and spend.
Watch out for: it has very little technology exposure, which is why it has lagged the US over most of the last decade. It is a complement, not a replacement, for a global fund. For more on income investing, see what dividend stocks are.
Buy ISF commission-free on Trading 212 → See iShares ETFs4. iShares MSCI Global Semiconductors (SEMI)
Fee: 0.35% a year · Holds: chip designers and manufacturers · 2026 YTD: +99.5% · 2022: −26.8%
This is the fund for anyone who wants exposure to the AI hardware boom without picking individual chip stocks. It has also beaten every other fund in our table over three and five years, not just in 2026.
Watch out for: a single industry can fall 30% or more when sentiment turns. If you buy it, keep it as a small “satellite” holding, perhaps 5% to 10% of your portfolio, next to a core global fund. The Korea ETF carries similar risk, since Korea’s market is dominated by a few chipmakers.
See iShares ETFs →Where to buy ETFs in the UK
You will need an investing platform. For most beginners the right account is a Stocks and Shares ISA, because everything inside it grows free of UK tax. Here is how three low-cost options compare for an ETF investor.
| Platform | Platform fee | Dealing fee | Accounts | Good for |
|---|---|---|---|---|
| InvestEngine | £0 on DIY portfolios | £0 | ISA, SIPP, GIA | ETF-only investors who want automatic monthly buying |
| Trading 212 | £0 | £0 (0.15% FX fee on non-GBP trades) | ISA, SIPP, GIA | Beginners starting from £1 |
| Vanguard Investor | £4 a month under £32,000; 0.15% above, capped at £375 | £0 | ISA, SIPP, GIA | Larger pots invested only in Vanguard funds |
Fees checked October 2026. InvestEngine needs £100 to start. Fund charges apply on top of platform fees.
For a fuller comparison, read our guides to the best Stocks and Shares ISA for beginners and the best investment platforms for beginners, or our head-to-head of Trading 212 vs Vanguard.
How to buy your first ETF in five steps
- Check you are ready. Keep a few months of expenses in cash first and clear expensive debts. Money you may need within five years is usually better in savings.
- Open a Stocks and Shares ISA. You need to be 18 or over and UK resident. You will normally be asked for your National Insurance number.
- Search for the ticker. Type VWRP or CSP1 into the app’s search bar and choose the version traded in pounds.
- Set up a monthly amount. Regular investing smooths out the ups and downs. Our article on lump sum vs monthly investing explains the trade-off.
- Leave it alone. Check once or twice a year, not every day.
Want to see what steady monthly investing could grow into? Try our compound interest calculator.
Tax rules UK investors need to know in 2026/27
- ISA allowance: you can put up to £20,000 a year into ISAs. Gains and dividends inside are tax-free.
- Outside an ISA: in a General Investment Account, gains above the £3,000 capital gains allowance are taxable, and dividends above £500 are taxed at 10.75% (basic rate), 35.75% (higher rate) or 39.35% (additional rate). See our explainer on GIA vs ISA.
- No stamp duty: UK stamp duty does not apply when you buy ETFs, unlike individual UK shares.
- Protection: if a regulated platform fails, the FSCS can compensate up to £85,000 per person per firm. It does not cover losses from markets falling.
Points that matter if you are a migrant
Your visa does not stop you investing. Personal investments are not classed as public funds, so buying ETFs does not affect a Skilled Worker or similar visa. We explain this in detail in should you invest while on a Skilled Worker visa.
If you leave the UK, your ISA can stay open. It keeps its UK tax treatment, but you cannot pay new money in while you are non-resident. Tell your provider when you move. The country you move to may tax the account differently, so check local rules.
US citizens and green card holders should be careful. The US tax system treats most non-US funds, including every ETF in this article, very harshly under rules known as PFIC. Speak to a cross-border tax adviser before buying.
Think about where you will retire. If you plan to return home, a fund that is spread around the world, rather than tied to the UK, usually makes more sense. Our guide on whether to invest or save as a migrant covers this in more depth.
Frequently asked questions
What is the best performing ETF in the UK in 2026?
Among large London-listed ETFs, the Franklin FTSE Korea ETF (up about 103%) and the iShares MSCI Global Semiconductors ETF (up about 99.5%) are the top performers so far in 2026, in pounds, to early October. Both are high-risk single-market or single-sector funds.
What is the best ETF for a beginner in the UK?
For most beginners, a global tracker such as the Vanguard FTSE All-World (VWRP) is the simplest choice. It costs 0.14% a year, holds around 3,700 companies worldwide and has returned 77.8% over five years in sterling.
Is VWRP or an S&P 500 ETF better?
The S&P 500 has returned more over five years (93.9% vs 77.8%) and is cheaper at 0.07%, but it only holds US companies. VWRP spreads your money across the world. If you want one fund and fewer decisions, VWRP is the safer default.
Can I hold ETFs in a Stocks and Shares ISA?
Yes. The ETFs in this guide are London-listed UCITS funds that UK platforms generally allow in a Stocks and Shares ISA, though not every platform carries every fund. You can invest up to £20,000 a year with no tax on gains or dividends.
How much money do I need to start investing in ETFs?
Very little. Trading 212 lets you buy fractional shares from £1, and InvestEngine needs £100 to open an account. Starting small with a regular monthly amount is perfectly sensible.
Can migrants on a visa invest in ETFs in the UK?
Yes. If you are 18 or over and UK resident you can open a Stocks and Shares ISA regardless of nationality. Personal investments are not public funds, so investing does not breach a no recourse to public funds condition.
Final verdict
The best performing ETFs UK investors could have bought in 2026 were Korea and semiconductor funds, and anyone who held them has done extremely well. But the fund to build your future on is rarely the one that topped last year’s table. For most migrants starting out, one global tracker such as VWRP, or a low-cost S&P 500 fund, held in a Stocks and Shares ISA and topped up every month, is a better plan than trying to guess the next winner.
If you want help choosing between individual funds, our guide on how to pick an ETF in the UK walks through the checks we use.
Open an ISA with InvestEngine → Start from £1 on Trading 212Financial Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial adviser before making investment decisions. The value of investments can fall as well as rise, and you may get back less than you put in. Past performance is not a reliable indicator of future results.
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