The end of the tax year is now less than one month away and time is running out to use your £20,000 Stocks and Shares ISA allowance.
For many investors, exchange-traded funds (ETFs) are a popular way to invest in their ISA thanks to their low costs, diversification benefits and exposure to global stock markets.
But which ETFs are investors actually buying in their Stocks and Shares ISA this tax year?
We’ve looked at the most popular ISA ETFs bought by InvestEngine investors between 6 April 2025 and 5 March 2026 — revealing the funds investors have been using to build their ISA portfolios.
Remember, on 6 April the new tax year (2026/27) starts and your tax allowances reset. So, if you haven’t used this year’s ISA allowance by then, it will be gone for good.
Taxes soaring: why the 2025/26 tax year is so important for ISA investors
In January this year the Office for National Statistics (ONS) revealed an uptick in tax receipts had led to a £30.4bn surplus — the highest ever in any month since records began in 1993, and nearly double last January’s figure.
While the government usually collects more in taxes than it spends in January, the figure came in almost a third higher than analysts’ expectations.
The big mover was capital gains tax which soared to almost £17bn — 69% higher than the January before.
And the tax take is only expected to keep on rising.
From 6 April this year, the rate of tax on dividend income will rise by two percentage points for basic and higher rates of income tax. Similar increases are expected to follow from April 2027 for savings interest and property income tax.
On top of that income tax thresholds will remain frozen until 2031, pushing more workers into paying higher rates of tax — in fact more than 1.7 million people are expected to be dragged into paying a higher rate.
So with taxes on savings and investments rising, using your Stocks and Shares ISA allowance is becoming increasingly important. That’s because investments held inside an ISA are free from UK income tax and capital gains tax, meaning you get to keep more of your returns over the long term.
What about the latest stock market uncertainty?
Following the Iran-US conflict, stock market uncertainty has been on the rise.
While we’re all hoping for a quick resolution to the devastation, it’s only natural for investors to be worried about what this could mean for their finances going forward.
How long will the war go on for? What could it mean for oil prices and therefore inflation and the future of interest rates? These are just some of the major questions on investors’ minds right now.
For lots of investors, the big swings we’ve seen so far this month have made knowing where to put their ISA money tricky. And some might have held off on using any remaining ISA allowance altogether.
Navigating market uncertainty can be scary. But if you’re considering investing in a Stocks and Shares ISA before 5 April, it’s important to remember that ups and downs are part and parcel of investing. And history has shown that over the long term these dips become less relevant.
In fact, recent analysis from RiskHedge showed that since 1940 the US stock market has been higher 12 months after a major geopolitical crisis 85% of the time.
While a year is still a short timeframe, over five, 10 and even 20 years, what’s happening today will very likely be a thing of the past and markets would’ve moved on.
This of course isn’t guaranteed though and it’s important to remember that past performance isn’t a guide to future returns.
However, try not to let the current uncertainty be the reason you lose your ISA allowance this tax year. Remember, you can always decide where to invest later on.
How to invest when stock markets fall: 3 ETF ideas
What are the most popular ETFs in a Stocks and Shares ISA?
Here are the most popular ETFs bought in Stocks and Shares ISAs on the InvestEngine platform between 6 April 2025 and 5 March 2026.
The list below ranks the most bought ETFs by number of net trades that are currently available to invest in on InvestEngine’s platform.
This ETF aims to replicate the performance of the S&P 500 index, offering investors diversified exposure to the 500 largest companies in the United States.
This ETF could help investors get access to the US stock market, where it could benefit from the overall growth and success of these companies, without having to invest in each one individually.
This ETF aims to achieve short-term returns higher than the benchmark rate SONIA with extremely low volatility. SONIA stands for ‘Sterling Overnight index Average’, and is the average interest rate banks lend money to each other overnight.
The ETF can help offer a ‘safer’ place to keep money, with the possibility of a little more growth than a more traditional savings account might offer.
This ETF invests in a broad range of companies across both developed and emerging markets worldwide. It includes a variety of large and mid‑sized firms from numerous sectors, such as technology, healthcare, finance, and consumer goods.
By tracking a specific index, this ETF aims to reflect the overall performance of global stock markets, encompassing companies from regions including North America, Europe, and Asia.
This ETF could help diversify a portfolio by offering exposure to global markets, including both developed and emerging economies.
This ETF aims to provide exposure to global stocks with potentially lower volatility compared to the broader market. It selects companies based on criteria expected to result in lower volatility.
This ETF could help add growth potential to a portfolio while helping limit exposure to large market swings.
This ETF offers investors the opportunity to invest in a wide range of companies from across the globe, including both developed and emerging markets. It aims to mirror the performance of the FTSE All‑World index, providing diversified exposure to the world’s stock markets.
By investing across different countries and sectors, this ETF could help offer a lower risk way to benefit from broad global market growth.
The iShares MSCI World Small Cap allows investors to gain exposure to smaller companies from around the world.
Smaller companies have the potential to grow faster than larger ones, but are also riskier as their performance can be more volatile.
This ETF aims to invest in global companies showing strong recent performance, benefitting from the tendency of ‘winning’ stocks to keep performing well over the medium term. This strategy is known as ‘momentum investing’.
The ETF could help investors benefit from momentum investing, by investing in a broad range of companies from around the world.
This ETF is designed to provide exposure to global companies that are considered to have high‑quality characteristics. It tracks an index that selects companies based on factors like profitability, stable earnings, and low levels of debt.
The goal is to focus on companies that are financially strong and have the potential to perform well over time, regardless of short‑term market fluctuations. By emphasizing these quality factors, the ETF seeks to offer investors a portfolio of companies that are more resilient during economic downturns or periods of market stress.
This ETF offers a more conservative approach to global equity investing with a focus on financially sound companies with a proven track record of stability.
This ETF offers investors exposure to US Treasury inflation‑protected bonds. Their value is linked to inflation, meaning they can provide some shelter against rising levels of US inflation. This ETF buys US government bonds which have maturities up to 5 years. This means that the bonds will be paid back within a 5‑year timeframe.
This ETF could help balance out the risk of a more adventurous portfolio.
That’s because US government bonds are generally considered to be lower risk compared to other types of investments, like stocks, as they are backed by the US government. Bonds with shorter maturities are also considered to be less risky than bonds with longer maturities, as they have less time until the bonds are paid back, and are therefore less sensitive to interest rate movements.
This ETF aims to replicate the performance of the S&P 500 index, offering investors diversified exposure to the 500 largest companies in the United States.
This ETF could help investors get access to the US stock market, where it could benefit from the overall growth and success of these companies, without having to invest in each one individually.
What to consider before buying an ETF
When comparing ETFs, it’s worth digging a little deeper than recent returns.
Start by looking at what the fund actually tracks.
A global index like the FTSE All-World spreads your money across thousands of companies, while something more focused, like the S&P 500, tilts heavily toward the US and big tech names. Knowing the index helps you understand where your money is really going.
Costs matter too. Most ETFs are already low cost, but even a small difference in fees can add up over time, especially if you’re investing regularly. Larger funds also tend to trade more smoothly, which can save you money when buying or selling.
Finally, think about how the ETF fits into your wider portfolio.
Is it a core holding you plan to build around, or a focused addition that targets a theme like gold or technology?
Getting that mix right can make a big difference to how your portfolio performs and how comfortable you feel holding it through market ups and downs.
For more information on each ETF, check out its factsheet where you can also find its Key Investor Information Document.
What are the risks of buying ETFs?
ETFs make investing simple, but they still come with risk. Markets move, and prices can fall just as easily as they rise. Even broad funds can drop in value during periods of uncertainty, as seen earlier this year when rate cuts and economic data caused sharp swings across global indices.
Some ETFs are concentrated in certain regions or sectors, which can amplify both gains and losses. Diversification helps smooth the ride, but it can’t remove risk completely. Currency movements can also affect returns on international funds, even when the underlying companies are performing well.
The key is to understand your goals and what you own and why. Short-term market moves then become less stressful and your investing decisions more consistent which is often what matters most in the end.
How to buy ETFs easily with InvestEngine
InvestEngine makes it straightforward to invest in top ETFs, whether you’re building a long term portfolio or adding a few new funds for diversification.
Why use InvestEngine?
✅ No trading or platform fees
Buy and sell ETFs commission free, so more of your money stays invested and working for you (ETF costs apply).
✅ Powerful portfolio tools
Track your holdings, compare ETFs, and rebalance whenever you need all in one simple dashboard.
✅ Automate your investing
Set up a Savings Plan to invest regularly, choosing how much and how often. It’s an easy way to stay consistent and build wealth over time.
✅ Flexible account options
Invest through an ISA, SIPP, general investment account, or Business account, all with no platform fees on DIY portfolios.
With these tools, InvestEngine makes it easy to own the ETFs that have led the market in 2025 and prepare your portfolio for the opportunities ahead in 2026.
Important information
Capital at risk. The value of your investments may go down as well as up, and you may get back less than you invest. Past performance is not indicative of future performance.
ETF costs apply. Remember, ISA and tax rules can change and any benefits depend on individual circumstances. If in doubt, you may wish to consult a professional adviser for guidance.