Tax year end is creeping up fast. And with it comes the inevitable last-minute scramble to check how much of your ISA allowance you’ve got left before it resets on 6 April.
As a quick reminder: you can invest up to £20,000 per tax year, and you don’t pay tax on income or capital gains generated inside the ISA.
So whether you’re looking to put unused allowance to work, build a portfolio from scratch, or add a few new building blocks to an existing Stocks and Shares ISA portfolio, here are five exchange-traded funds (ETFs) available on InvestEngine to explore in 2026.
5 ETF ideas for your Stocks and Shares ISA
1. Invesco FTSE All-World ETF (FWRG) – a simple global core for an ISA
For investors looking for an ETF that can do a lot of the heavy lifting, FWRG could be a good starting point.
The Invesco FTSE All-World ETF tracks the FTSE All-World index, covering more than 4,000 large and mid-cap companies across 45 developed and emerging-market countries, and has an ongoing charge of 0.15%. It’s the kind of broad, diversified global equity exposure that many investors could happily use as the core of an ISA for years.
The big attraction here is simplicity. Instead of trying to guess which country, sector or theme could win next, you own a slice of the global stock market in one ETF. For a lot of ISA investors, this could be a sensible place to start.
2. Vanguard S&P 500 ETF (VUAG) – exposure to the US stock market
If FWRG is the broad global option, VUAG is the more focused US choice.
The Vanguard S&P 500 UCITS ETF tracks the S&P 500, giving investors exposure to around 500 of the largest listed companies in the United States, and it has a low 0.07% ongoing charge.
This could make it a compelling option for ISA investors who want simple, low-cost exposure to the part of the market that’s driven a large share of global equity returns in recent years. Although remember, past performance isn’t a guide to future returns.
It’s less diversified than a global fund like FWRG, because it focuses only on the US, but it’s another straightforward building block for a Stocks and Shares ISA.
For investors who already hold a global fund like FWRG, VUAG could also be used as a deliberate extra tilt towards the US market.
3. Amundi Smart Overnight Return ETF (CSH2) – a lower-risk option inside an ISA
Not every pound in a Stocks and Shares ISA has to go straight into stocks.
The Amundi Smart Overnight Return GBP Hedged ETF, CSH2, aims to deliver short-term returns above SONIA with extremely low volatility. It’s a fund for investors looking for a relatively accessible, lower-risk place to hold money while avoiding more of the ups and downs of the stock market.
That can make it useful for ‘dry powder’ inside an ISA – i.e. money you plan to drip into markets gradually, cash you may need in the nearer term, or simply a defensive holding for investors who don’t want to be fully invested in shares all at once.
It’s not where you would usually expect the strongest long-run growth, but it can still play a useful role.
4. iShares Oil & Gas Exploration and Production ETF (SPOG) – an energy sector idea
If you want a more adventurous idea for a Stocks and Shares ISA, SPOG is a potential tactical option right now.
The iShares Oil & Gas Exploration and Production ETF invests in companies involved in finding and producing oil and gas, so its fortunes are closely tied to energy prices.
The theme has been back in focus recently, as the conflict involving Iran has pushed oil prices higher and reminded markets how sensitive energy prices are to disruption around the Strait of Hormuz – a route that normally handles more than 20% of global oil flows.
Oil prices surge as Iran conflict escalates — what it means for investors
That backdrop helps explain why an ETF like SPOG can look attractive as a satellite holding – when oil prices rise, the profits of exploration and production companies can rise quickly too.
But it cuts both ways. If tensions ease, supply concerns fade, or oil prices fall back, these shares can reverse just as fast.
So this is probably not a core, long-term ‘set and forget’ ISA holding for most people, but more of a higher-risk, ‘satellite’ add-on around a broader portfolio.
5. iShares Global Aerospace & Defence ETF (DFND) – a defence spending theme
Another ETF that looks particularly topical in 2026 is DFND, the iShares Global Aerospace & Defence ETF.
It invests in companies around the world whose businesses are centred on aerospace and defence, including firms involved in aircraft, satellites, weapons systems, defence electronics and related technologies.
Where SPOG is a more direct way to express a view on energy prices, DFND is a broader geopolitical theme tied to defence spending and security
That makes DFND an interesting potential satellite idea for ISA investors who want exposure to an area that’s been pushed up the agenda by a more uncertain geopolitical backdrop and rising defence spending.
It’s more specialised than a broad global equity tracker, so it’s probably best used as a supporting holding rather than the foundation of a portfolio. But it could also suit investors who want to add a timely theme alongside a core fund.
How to build a simple ETF portfolio in a Stocks and Shares ISA
Most investors probably don’t need all five of these. In practice, a lot of ISAs can be built around one or two strong core ETFs, with supporting holdings depending on what job they need to do.
The key point at tax year end is not to overcomplicate things.
Using your £20,000 ISA allowance matters far more than finding the ‘perfect’ ETF.
A simple, diversified portfolio you can stick with is usually better than a clever one you are constantly tempted to tinker with.
Get up to £5,000 when you transfer
It’s easy to transfer your existing ISA to InvestEngine for fee-free investing. You could also get up to £5,000 when you do switch. ETF costs apply. The bonus is tiered and requires your investment to remain invested for at least 12 months.
Find out moreCapital at risk. Ts&Cs apply
Before transferring, please review any fees, exit costs and whether your existing investments would need to be sold and reinvested into ETFs.
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.