As 2025 draws to a close, global markets can take stock on an up and down year. Investors have navigated shifting economic conditions with a renewed focus on balance, looking for funds that have the potential to deliver growth without taking on excessive risk.
Throughout the year, ETFs have remained an excellent choice for investors building diversified, low cost portfolios. From US large cap trackers to global income strategies and technology leaders, a handful of ETFs have stood out for their popularity.
In this guide, we highlight some of the top performing ETFs on InvestEngine for 2025 funds that have led the market, attracted significant investor interest, and helped shape portfolios heading into 2026.
What are ETFs and why they matter in 2025
Exchange traded funds, or ETFs, are funds that hold a collection of assets such as shares or bonds and trade on stock exchanges just like individual stocks. Most ETFs track an index, giving investors instant diversification through one simple investment.
ETFs continue to dominate in 2025 for good reason. They combine low costs, transparency, and ease of trading, making them one of the most efficient ways to access markets. Whether you want global diversification, income, or exposure to specific themes, ETFs make it simple to build a portfolio that fits your goals.
Why ETFs have led the way in 2025
This year has been a reminder of why ETFs sit at the heart of so many portfolios. After a number of ups and downs in recent years, 2025 has (eventually) brought a welcome dose of stability.
Inflation has cooled across the UK, Europe, and the US, and central banks have finally started to cut interest rates after nearly two years of tightening. That shift has reignited interest in equities, with investors moving money out of cash and short term bonds and back into the stock market.
ETFs have provided a natural way to take part in that recovery. They’ve offered an easy route into major indices such as the S&P 500 and FTSE All-World.
At the same time, some of the biggest stories in markets, from the ongoing artificial intelligence boom to the rebound in clean energy stocks, have kept thematic ETFs in the spotlight. Funds focused on technology, automation, and energy transition have attracted fresh inflows, showing how investors are using ETFs to balance long-term themes with broad diversification.
Costs have mattered, too. In a year when many markets have grown, albeit in a measured way, keeping fees low has helped investors make the most of their returns. Couple this with easy automation and owning ETFs in 2025 is simpler and more accessible than ever.
The top 5 top ETFs for investors in 2025 and beyond
As 2025 comes to a close, a handful of ETFs have stood out for their popularity among investors.
These funds capture some of the key themes driving markets this year, from the continued strength of US equities to the resilience of global trackers and the steady appeal of gold. Each offers a simple, low cost way to invest in the potential trends of 2026.
This list of ‘Top ETFs’ is based on the most held ETFs on InvestEngine’s platform. Top ETFs have been calculated by most bought (by number of clients) between January 2025 and October 2025.
Vanguard S&P 500 ETF (ticker: VUAG)
Provider: Vanguard
Strategy: Tracks the performance of the S&P 500 Index, giving investors exposure to 500 of the largest companies listed in the United States. The fund is physically replicated and accumulates dividends rather than paying them out, making it ideal for long term investors who want any potential returns to compound over time.
Why consider it:
- Offers simple, low cost access to the world’s most closely followed stock index
- Provides exposure to leading global companies such as Apple, Microsoft, and Amazon, which have powered much of the market’s growth in 2025
- Accumulating structure helps investors automatically reinvest dividends, supporting any potential long-term compounding and wealth building
| Key Details | |
| Launched | 14 May 2019 |
| Fund Size | £56,119 million |
| Ongoing Charges | 0.07% |
| Dividend Type | Accumulating |
| Region Focus | United States |
Invesco FTSE All-World UCITS ETF (ticker: FWRG)
Provider: Invesco
Strategy: Tracks the FTSE All-World Index, providing exposure to large and mid-cap companies across both developed and emerging markets. The fund aims to capture global equity performance through a single, low cost ETF, making it a convenient one stop solution for diversified long term investing.
Why consider it:
- Broad global coverage across more than 4,000 companies, from the US to Asia and emerging markets
- Ideal as a single core holding for investors who want simple global equity exposure without needing to manage multiple funds
- Backed by Invesco’s strong index tracking expertise and competitive fees
| Key Details | |
| Launched | 26 June 2023 |
| Fund Size | £405 million |
| Ongoing Charges | 0.15% |
| Dividend Type | Accumulating |
| Region Focus | Global |
Vanguard FTSE All-World ETF (ticker: VWRP)
Provider: Vanguard
Strategy: This fund tracks the FTSE All-World Index, giving you broad exposure to large and mid-cap companies across developed and emerging markets. It’s a simple way to invest globally in one fund.
Why consider it:
- One fund, global diversification: covers companies in over 45 countries and thousands of stocks, which makes it a convenient core holding for long-term investors.
- Accumulating structure: as the fund automatically reinvests dividends, it helps compound any potential returns you make, without you needing to take action.
- Low cost: a very competitive ongoing charge (TER), which helps keep more of your money working for you rather than going into fees.
| Key Details | |
| Launched | 23 July 2019 |
| Fund Size | £35,112 million |
| Ongoing Charges | 0.19% |
| Dividend Type | Accumulating |
| Region Focus | Global (developed + emerging markets) |
iShares Physical Gold (ticker: SGLN)
Provider: iShares / BlackRock
Strategy: Provides exposure to physical gold by holding bars of bullion, allowing investors to participate in gold’s price moves without holding physical bars themselves.
Why consider it:
- A simple way to add gold as a hedge against inflation, currency weakness or market volatility
- Fully backed by physical gold, giving transparency and tangible asset exposure
- Low ongoing cost for a commodity exposure, making it efficient for portfolio diversification
| Key Details | |
| Launched | 08 April 2011 |
| Fund Size | ~£20,520 million |
| Ongoing Charges | 0.12% |
| Dividend Type | Accumulating |
| Region Focus | Global / Commodities (Gold) |
Vanguard FTSE Developed World UCITS ETF (ticker: VHVG)
Provider: Vanguard
Strategy: This fund tracks the FTSE Developed Index, giving investors exposure to large and mid cap companies in developed markets around the world. It offers a simple way to hold the major markets in one fund.
Why consider it:
- Straightforward global developed markets exposure through a single fund ideal as a core portfolio holding
- Accumulating structure reinvests dividends automatically, supporting any potential long-term growth without the need to reinvest manually
- Very competitive ongoing charges (TER) make it a cost-efficient choice for long term investors
| Key Details | |
| Launched | 24 September 2019 |
| Fund Size | £6,645 million |
| Ongoing Charges | 0.12% |
| Dividend Type | Accumulating |
| Region Focus | Developed markets globally |
Comparing the top ETFs side by side
The table below brings together the key details of 2025’s most popular and best performing ETFs, helping you quickly see how they differ in scope, cost, and focus.
| ETF Name | Ticker | Strategy | TER | Dividend Type | Launched | Region Focus | Fund Size |
| Vanguard S&P 500 | VUAG | Passive (S&P 500 Index) | 0.07% | Accumulating | 14 May 2019 | United States | £56,119m |
| Invesco FTSE All-World | FWRG | Passive (FTSE All-World Index) | 0.15% | Accumulating | 26 Jun 2023 | Global | £405m |
| Vanguard FTSE All-World | VWRP | Passive (FTSE All-World Index) | 0.19% | Accumulating | 23 Jul 2019 | Global (developed + emerging) | £35,112m |
| iShares Physical Gold | SGLN | Physical commodity exposure (Gold) | 0.12% | Accumulating | 8 Apr 2011 | Global / Commodities | £20,520m |
| Vanguard FTSE Developed World | VHVG | Passive (FTSE Developed Index) | 0.12% | Accumulating | 24 Sep 2019 | Developed markets globally | £6,645m |
What this year’s top ETFs tell us about the market
The most bought ETFs of 2025 paint a clear picture of how investors have approached the year. As inflation eased and interest rates began to fall, confidence returned to global markets and investors moved back toward broad, diversified equity exposure.
The Vanguard S&P 500 led the way, benefiting from another strong year for US stocks, with major technology and healthcare names driving performance. Global trackers such as the Invesco FTSE All World and Vanguard FTSE All World also saw heavy demand, as investors looked to spread risk across regions while staying positioned for long term growth.
The Vanguard FTSE Developed World followed a similar trend, reflecting confidence in developed economies and the appeal of simple, low cost exposure. Meanwhile, the iShares Physical Gold showed that investors still value protection, with gold remaining a popular hedge amid lingering geopolitical tension and currency swings.
Together, these ETFs highlight a balanced mindset in 2025: investors are combining global growth with diversification and a touch of defensiveness to prepare their portfolios for the year ahead.
Key factors to consider before choosing 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, such as 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.
Risks and considerations
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 take a long term view. If you understand what you own and why, short term market moves 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.
In summary
2025 has underlined just how effective ETFs can be for investors. From the strength of the US market to the resilience of global equities and the renewed interest in gold, this year’s most popular funds have helped investors stay diversified, consistent, and confident through changing conditions.
As we move into 2026, ETFs remain one of the simplest and most powerful ways to invest. They combine low costs, transparency, and instant diversification giving you control over your portfolio and the flexibility to adapt as markets evolve.
With InvestEngine’s zero fee trading, smart automation tools, and flexible accounts, building a portfolio around the world’s leading ETFs has never been easier.
Important information
Capital at risk. The value of your investments can go down as well as up, and you may get back less than you put in.
Tax treatment depends on individual circumstances and is subject to change. ETF costs also apply.
This content is for information only and is not financial advice. If in doubt you may wish to consult a professional adviser for guidance.