Are you hunting for the best UK ETFs 2025 to diversify your ISA or investment portfolio? Whether you’re aiming to capture value from global markets or stay anchored in domestic equity, knowing the best-performing and lowest-cost ETFs helps you make smarter choices. This article examines the top-tier best UK ETFs 2025, blending long-term return potential with affordability and diversity.
We’ll explore:
- High-growth UK trackers and sector plays
- Cost-efficient all-world ETFs accessible via the LSE
- ETF platforms with the best value
- How to choose ETFs using expense ratios, diversification, and performance data
Why Focus on the Best UK ETFs 2025?
As MoneyWeek recently highlighted, UK equity has underperformed for decades, but valuations are now increasingly attractive, boosting dividend yields and buybacks in sectors such as pharmaceuticals, energy, and infrastructure. This resurgence makes the best UK ETFs 2025 particularly compelling for long-term investors seeking both yield and growth.
Top Picks: Best UK ETFs 2025
- Why it’s among the best UK ETFs 2025: Offers total UK market coverage, including heavyweights like AstraZeneca, HSBC, Shell, Unilever, and Relx, now trading at appealing discounts.
- Key features: TER around 0.20%, offers both Accumulation and Distributing options for flexibility.
2. Vanguard FTSE 100 UCITS ETF (Accumulating)
- Among the best UK ETFs 2025 by one-year return (over 10%) and still has low costs (~0.09%).
- Ideal for investors looking for large-cap exposure with reinvested dividends.
3. Amundi FTSE 100 UCITS ETF (Acc & Dist)
- Tops the one-year return charts among UK-focused ETFs (10.29% Accumulating; 10.25% Distributing).
- Cheap in terms of TER (Acc): see comparison table.
- One of the best UK ETFs 2025 for low expense ratios (0.07%), sizable fund, and excellent liquidity.
- Among the most popular picks in mid-2025 ranking well for both one-year and three-year return (~30–31% and ~66%).
- A defensively biased hedge within your portfolio, ideal for risk management.
6. Vanguard FTSE All-World ETF (Accumulating) – VWRP on LSE
- Offers global diversification with ~12–13% one-year return, strong long-term performance.
- Perfect for investors seeking exposure beyond UK equities.
Supporting Picks & Innovations for 2025
Amundi Prime All Country World UCITS ETF
- Newly listed on LSE; boasts one of the lowest ongoing charges in Europe (0.07%).
- A cost-efficient, globally diversified all-country ETF, ideal for multi-asset portfolios.
Thematic & Active ETFs
- JPMorgan and Abrdn introduced new active ETFs on the LSE, centred on fixed income and thematic topics like materials and supply chains, SECURE FOR diversifying into innovation sectors
UK ETF Platforms to Use in 2025
Choosing the best UK ETFs 2025 also means selecting the right platform:
- InvestEngine: known for ultra-low platform fees and fractional investing.
- Interactive Brokers: ideal for accessing a wider range of international ETFs, including US-listed ones.
- IG: offers advanced tools for more sophisticated ETF traders
How to Evaluate the Best UK ETFs 2025
A. Total Expense Ratio (TER)
- Look for TERs under 0.10% for mainstream ETFs (e.g., iShares Core FTSE 100). Cheapest alternatives like Amundi UK Equity All Cap have TER as low as 0.04%.
B. Diversification Benefit
- All-World ETFs (VWRP) or All-Country World (Amundi Prime) offer wide exposure beyond UK, reducing home bias and increasing global growth potential.
C. Historical Performance
- Use one-year and three-year return data (as shown in interactive investor top ETFs) to assess momentum and resilience
Summary Table: The Best UK ETFs 2025
ETF | Key Advantage | TER | One-Year Return |
SPDR FTSE UK All-Share (Acc/Dist) | Broad UK market exposure | ~0.20% | Attractive |
Vanguard FTSE 100 (Acc) | Strong performance, reinvestment | ~0.09% | ~10–11% |
Amundi FTSE 100 (Acc/Dist) | Top one-year returns | ~10.3% | ~10.3% |
iShares Core FTSE 100 (Acc/Dist) | Low cost + liquidity | ~0.07% | Competitive |
iShares Physical Gold ETC (SGLN) | Commodity hedge, strong returns | Varies | ~30–31% |
Vanguard FTSE All-World (VWRP) | Global exposure | ~0.20% | ~12% |
Amundi Prime All-Country World ETF | Cheapest global ETF in Europe | ~0.07% | N/A |
JPMorgan / Abrdn Active ETFs | Thematic/fixed income opportunities | ~0.15–0.30% | Emerging |
Why These Are the Best UK ETFs 2025
Each of these ETFs balances one or more key criteria:
- Cost-efficiency (low TER)
- Performance (top returns among LSE listings)
- Diversification (sector and geographic spread)
- Accessibility (listed on LSE, actionable in ISAs)
They offer both core holdings and tactical allocation opportunities. For instance, pairing a UK All-Share ETF with a low-cost global ETF provides UK coverage while harnessing global growth potential.
FCA Disclaimer
Disclaimer: This article is for educational purposes only and does not constitute financial advice. You should consult a regulated financial advisor before making investment decisions. The Financial Conduct Authority (FCA) does not endorse or regulate this article.
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