Best ETFs for 2027: 5 Simple Picks for UK Beginners
Updated 24 October 2026 · Fees checked against fund providers and platforms in October 2026
Quick answer
The best ETFs for 2027 for most UK beginners are cheap, broad funds you can hold for years, not last year’s top performers. Our five picks:
- Best all-in-one fund: Vanguard FTSE All-World (VWRP), 0.14% a year, around 4,000 companies worldwide.
- Cheapest US fund: iShares Core S&P 500 (CSP1) or Vanguard S&P 500 (VUAG), 0.07% a year.
- UK shares and income: iShares Core FTSE 100 (ISF), 0.07% a year.
- Small extra for growth: Vanguard FTSE Emerging Markets (VFEG), 0.17% a year.
- Steadier ballast: iShares Core UK Gilts (IGLT), 0.07% a year.
Hold them in a Stocks and Shares ISA. From 6 April 2027, under-65s can only put £12,000 a year into a Cash ISA, so investing becomes the main way to use the rest of your £20,000 allowance.
If you arrived in the UK in the last few years, you have probably heard colleagues mention ISAs, index funds and “just buying the S&P”. Nobody explains what any of it means, and a quick search throws up hundreds of funds with names that look like car registration plates.
This guide cuts that list down to five. These are the best ETFs for 2027 for someone who wants to start investing properly, without spending every evening reading market news. We picked them on cost, size, spread of companies and how easy they are to buy on UK apps. Recent performance came last, for reasons we explain below.
What is an ETF? The 60-second version
An exchange-traded fund (ETF) is a single investment that holds many companies at once. Buy one share of a FTSE 100 ETF and you own a small piece of the 100 largest companies on the London Stock Exchange. ETFs trade on the stock market like ordinary shares, so you can buy them in any investing app.
- Ticker: the short code you type into an app to find a fund, such as VWRP.
- Ongoing charge (OCF): the yearly fee the fund takes. 0.14% means £1.40 a year for every £1,000 invested.
- Accumulating (Acc): dividends are reinvested for you. Distributing (Dist): dividends are paid out as cash.
Completely new to this? Start with our guide to what investing is and how it works, then come back.
The best ETFs for 2027 at a glance
| ETF | Ticker | Best for | What you own | Yearly fee | Risk |
|---|---|---|---|---|---|
| Vanguard FTSE All-World | VWRP | One-fund portfolio | About 4,000 large and mid-sized firms worldwide | 0.14% | Medium |
| iShares Core S&P 500 / Vanguard S&P 500 | CSP1 / VUAG | Lowest cost | 500 large US companies | 0.07% | Medium |
| iShares Core FTSE 100 | ISF | UK shares, dividends | 100 largest UK-listed companies | 0.07% | Medium |
| Vanguard FTSE Emerging Markets | VFEG | Small growth add-on | Companies in China, India, Taiwan, Brazil and others | 0.17% | Higher |
| iShares Core UK Gilts | IGLT | Cautious investors | UK government bonds | 0.07% | Lower |
Fees are each fund’s ongoing charge as published in October 2026. Vanguard cut the FTSE All-World fee from 0.19% to 0.14% on 28 July 2026. All five funds trade in pounds on the London Stock Exchange.
Why we did not just pick the 2026 winners
The top performers of 2026 were Korean and semiconductor funds, which roughly doubled in value. We cover them in our best performing ETFs UK roundup. The trouble is that last year’s winner is a poor guide to next year. Gold was the star of 2025, up more than 50%, and then went slightly backwards in 2026.
What you can predict with certainty is cost. Every pound you pay in fees is a pound that stops compounding for you. The chart below shows the difference over 25 years.
On the same contributions and the same market returns, a 1.5% fee leaves you about £26,000 worse off than a 0.07% fee. That is why every fund on our list costs under 0.2% a year. If you want to run your own numbers, try our compound interest calculator.
Our 5 best ETFs for 2027, explained
1. Vanguard FTSE All-World (VWRP)
Fee: 0.14% a year · Holds: around 4,000 companies · Dividends: reinvested (VWRL is the version that pays them out)
If you only ever own one fund, make it this one. It buys large and mid-sized companies in developed and emerging markets in a single holding, so you never have to decide whether the US, Europe or Asia will do best next year. As countries and companies grow or shrink, the fund adjusts on its own.
The July 2026 fee cut makes it cheaper than its closest rival, the iShares Core MSCI World (0.20%), which leaves out emerging markets altogether.
Watch out for: about 60% of the fund sits in US companies, so it is less spread out than the name suggests. It will never top the annual performance tables, and that is the point.
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 · Dividends: reinvested in both versions named here
Two funds, same index, same fee. Buy whichever your app offers. The S&P 500 has been one of the strongest long-term markets available to UK investors, and at 0.07% you keep almost all of what it earns.
Watch out for: you are betting on one country, and a handful of tech giants such as Nvidia, Apple and Microsoft make up a large slice of the index. If those companies stumble, the whole fund feels it. Our guide on how to invest in the S&P 500 from the UK covers this in more detail.
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 · Dividends: paid out to you quarterly
The FTSE 100 is full of banks, oil producers, drug makers and consumer brands such as HSBC, Shell, AstraZeneca and Unilever. Many of them pay generous dividends, which makes this fund a good partner to a global fund if you want some regular income.
Watch out for: there is very little technology in it, which is why it trailed the US for most of the last decade. Treat it as a side dish, not the main meal. If income is your main goal, read our pick of the best dividend ETFs in the UK.
Buy ISF commission-free on Trading 212 →4. Vanguard FTSE Emerging Markets (VFEG)
Fee: 0.17% a year · Holds: companies across emerging economies · Dividends: reinvested
Emerging markets are home to most of the world’s population and many of its fastest-growing economies. This fund lets you add a little more of them on top of what a global fund already holds.
Watch out for: prices swing more, and politics and currency moves can knock values hard. Keep it to a small slice, perhaps 5% to 10% of your portfolio. If you still have family, property or a business back home, you may already have plenty of exposure to one of these economies, so think about whether you need more.
See Vanguard’s emerging markets ETF →5. iShares Core UK Gilts (IGLT)
Fee: 0.07% a year · Holds: UK government bonds (gilts) · Income: paid out twice a year
A gilt is a loan to the UK government that pays interest. A gilt ETF holds many of them at once. Bonds tend to move less than shares, so adding some can make a portfolio less bumpy, which matters if you will need part of the money within five to ten years.
Watch out for: bond prices fall when interest rates rise. UK gilt funds lost around a quarter of their value in 2022 when rates jumped. For money you need in the next year or two, a savings account is still the safer home.
See iShares UK ETFs →How to combine them: three simple portfolios
You do not need all five. Most beginners will do well with one or two. Here are three mixes depending on how much risk you can live with.
- Simple: 100% in VWRP. One fund, one decision. Suits most people investing for ten years or more.
- Balanced: 80% VWRP, 10% ISF, 10% VFEG. A bit more UK income and emerging market growth.
- Cautious: 60% VWRP, 40% IGLT. Smaller falls in a bad year, smaller gains in a good one.
Not sure how to judge a fund yourself? Our guide on how to pick an ETF in the UK walks through the checks we use.
The 2027 ISA change every saver should know about
A Stocks and Shares ISA is a tax-free wrapper. Anything you hold inside it, including all five ETFs above, grows free of UK income tax and capital gains tax. Any UK resident aged 18 or over can open one, whatever their nationality.
The 2025 Autumn Budget announced a change that starts on 6 April 2027:
| Rule | 2026/27 (now) | From 6 April 2027 |
|---|---|---|
| Total ISA allowance | £20,000 | £20,000 |
| Most you can pay into a Cash ISA (under 65) | £20,000 | £12,000 |
| Most you can pay into a Cash ISA (65 and over) | £20,000 | £20,000 |
| Move money from Stocks and Shares ISA to Cash ISA (under 65) | Allowed | Not allowed |
Money already in a Cash ISA before 6 April 2027 is not affected. The change was still subject to final legislation when we checked in October 2026.
In plain terms, if you are under 65 and want to use your full allowance from 2027, at least £8,000 of it will need to go somewhere other than a Cash ISA. For most people, that means a Stocks and Shares ISA. That makes choosing the right ETFs more important than before. Our comparison of the best Stocks and Shares ISAs for beginners will help you pick a provider.
Where to buy these ETFs
| Platform | Platform fee | Dealing fee | Minimum | Good for |
|---|---|---|---|---|
| InvestEngine | £0 on DIY portfolios | £0 | £100 to start | ETF-only investors who want automatic monthly buying |
| Trading 212 | £0 | £0 (0.15% FX fee on non-GBP trades) | £1 | Beginners starting small |
| Vanguard Investor | £4 a month under £32,000; 0.15% above, capped at £375 a year | £0 | Varies by account | Larger pots held only in Vanguard funds |
Fees checked October 2026. Fund charges are added on top of platform fees. Trading 212 charges 0.7% on card deposits over £2,000, so use a bank transfer for larger amounts.
For a deeper comparison, see our guide to the best investment platforms for beginners or our head-to-head of Trading 212 vs Vanguard.
How to buy your first ETF in 5 steps
- Get your safety net in place. Keep three to six months of spending in an easy-access savings account and clear expensive debts first.
- Open a Stocks and Shares ISA. You will usually need your National Insurance number and proof of UK address.
- Search the ticker. Type VWRP, CSP1 or ISF into the app and pick the version priced in pounds (GBP).
- Set a monthly amount. Even £50 a month builds the habit. Our piece on lump sum vs monthly investing explains which approach suits you.
- Leave it alone. Check once or twice a year. Selling in a panic during a fall is the most expensive mistake new investors make.
Points that matter for migrants
- Your visa is not a barrier. Personal investments are not “public funds”, so investing does not affect a Skilled Worker or similar visa. More in our guide on investing on a Skilled Worker visa.
- If you leave the UK, your ISA can stay open and keep its UK tax benefits, but you cannot pay in new money while non-resident. Your new country may tax it differently.
- US citizens and green card holders face harsh US tax rules (known as PFIC) on non-US funds like these. Get cross-border tax advice before buying.
- Platform protection: if a regulated platform fails, the FSCS covers up to £85,000 per person per firm. It does not protect you from markets falling.
Frequently asked questions
What are the best ETFs for 2027 in the UK?
For most UK beginners, the best ETFs for 2027 are low-cost, broad funds: Vanguard FTSE All-World (VWRP) at 0.14% a year, an S&P 500 tracker such as CSP1 or VUAG at 0.07%, and the iShares Core FTSE 100 (ISF) at 0.07%. Emerging markets (VFEG) and UK gilts (IGLT) can be added in small amounts depending on your risk appetite.
Is one ETF enough for a beginner?
Yes. A global fund such as VWRP holds around 4,000 companies across developed and emerging markets, so a single fund already gives you wide diversification. Many experienced investors hold nothing else.
How do the 2027 ISA changes affect ETF investors?
From 6 April 2027, under-65s can put a maximum of £12,000 a year into a Cash ISA, while the overall ISA allowance stays at £20,000. To use the full allowance, the remaining £8,000 must go into a Stocks and Shares ISA or another ISA type, which is where ETFs are held.
How much do I need to start investing in ETFs?
Very little. Trading 212 lets you invest from £1 using fractional shares, and InvestEngine needs £100 to open an account. A small regular monthly amount is a sensible way to start.
Can migrants on a visa buy ETFs in the UK?
Yes. Anyone aged 18 or over who is UK resident can open a Stocks and Shares ISA, regardless of nationality. Personal investments are not public funds, so buying ETFs does not breach a no recourse to public funds condition.
Are ETFs safe?
ETFs are regulated and widely used, but their value goes up and down with the markets, so you can get back less than you put in. Broad funds held for five years or more have historically been far less risky than single shares or specialist funds.
Final verdict
The best ETFs for 2027 are not the ones that topped this year’s charts. They are cheap, broad funds you can buy every month and leave alone. For most migrants starting out, that means one global tracker such as VWRP, perhaps with an S&P 500 or FTSE 100 fund alongside it, all held in a Stocks and Shares ISA. With the Cash ISA limit falling to £12,000 for under-65s from April 2027, now is a good time to get that account open and the habit started.
Still weighing up whether to invest at all? Our guide on whether to invest or save as a migrant will help you decide.
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. Tax treatment depends on individual circumstances and may change.
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