Exchange-traded funds (ETFs)

Choose from over 200 exchange-traded funds to invest in commission-free.

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When you invest, your capital is at risk.

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What is an ETF?

ETFs or exchange-traded funds are a type of security that typically tracks the performance of an underlying index or a basket of stocks. They are passively managed funds that offer you a way to invest in a wide range of stocks in one package, and as the name suggests, they list on stock exchanges with shares that you can buy or sell throughout the day.

Why invest in ETFs?

Diversification

ETFs are not only a great way to gain exposure to major stock market indices, like the S&P 500 or FTSE All-Share, but also enable you to access more niche markets or specific sectors.

Simplicity

When buying ETFs, you invest in a basket of stocks that will mirror how a specific index performs without buying all the stocks individually.

Tax-efficient

Exchange-traded funds are exempt from the 0.50% stamp duty. Hold your ETFs as part of an ISA or SIPP tax wrapper, and you can access additional tax benefits.

 Low costs

ETFs are generally less expensive than actively managed funds as there are less management fees involved. They also tend to be less costly than purchasing individual shares - fewer transactions, less trading costs.

As a downside, an ETF is unlikely to outperform its benchmark index. As it happens with other investments, your portfolio’s value can go down as well as up. ETFs’ price movements are influenced by market fluctuation and the risks of their underlying investments, so if the value of the assets the ETF is tracking is going down, you might get back less than you initially invested.

How to buy and sell ETFs

Access hundreds of ETFs to invest in via the Freetrade app. See our most traded ETFs.

Access all Vanguard, iShares and Invesco ETFs, free of charge with our commission-free share dealing account.

£0/mo
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Stocks and Shares ISA

Invest in ETFs as part of an ISA tax-wrapper, and your investments will be exempt from UK capital gains or income tax.

£3/mo
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Freetrade Plus

Make your money work harder with a 3% interest on cash, up to a max deposit of £4,000.
Get free of charge ISA account and a larger stock universe.

£9.99/mo
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Freetrade SIPP

Give your pensions a new home with our fixed, low-cost account. Open a SIPP account and deposit regularly or consolidate all your old pensions into one place for more control over your retirement savings.

£9.99/mo
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When you invest, your capital is at risk

See our full
pricing table.

Why invest with Freetrade

Commission-free investing

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Over 5,000 stocks and shares to invest in

Types of ETFs to invest in

Equity ETFs - Index tracking ETFs are the most popular ETFs and provide exposure to the broader market, such as the S&P 500.
Bond ETFs - Investing in bond ETFs is a great way to diversify your portfolio with a lower investment risk while gaining a steady return.
Commodity ETFs - Exchange-traded commodities (ETCs) give exposure to commodity markets and track things like gold or crude oil.
Dividend ETFs - These exchange-traded funds are focused on dividend-paying stocks and can provide a constant income.
Sector ETFs - Industry-focused ETFs can give you exposure to specific industries you are interested in, from major industries to more niche sectors like pharma.
International ETFs - Get exposure to different geographic areas and seize opportunities in developed and emerging countries.
Market-cap index ETFs - These are passive funds that select stocks based on a company’s market cap or value of its shares.
Sustainable ETFs - ESG investing is growing in popularity, and sustainable ETFs can help you diversify your investments in line with your ethical beliefs.

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What can I invest in?

See which are the most traded shares by the total value of buy orders over the past week on the Freetrade app.

Investment Trusts

Choose from over 150 investment trusts to diversify your portfolio across a wide range of sectors, geographical areas and markets worldwide.

US and UK stocks

Choose from a wide range of exchange-traded funds covering index funds, stock and bond ETFs from providers like Vanguard, iShares and Invesco, as well as HSBC and Xtrackers.

REIT stocks

Diversify your investments with REITs, which allow you to add residential or commercial real estate assets to your portfolio without the hassle of buying and managing the properties yourself.

SPACs

Choose from over 200 “blank check” shell companies to invest across a wide range of sectors, such as tech, renewable energy, learning and electric vehicles.

Learn more about ETFs

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