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.
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.
When buying ETFs, you invest in a basket of stocks that will mirror how a specific index performs without buying all the stocks individually.
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.
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.
Access all Vanguard, iShares and Invesco ETFs, free of charge with our commission-free share dealing account.
Invest in ETFs as part of an ISA tax-wrapper, and your investments will be exempt from UK capital gains or income tax.
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.
When you invest, your capital is at risk
See our full pricing table.