Investing doesn’t need to be complicated.
In this guide, I’ll walk you through:
- A simple ETF checklist
- The 10 most popular ETFs UK investors consider
- What I personally use
- The biggest mistakes to avoid
- How to build a diversified ETF portfolio (without duplication)
Before You Buy Any ETF: The 6-Point Checklist
Before looking at specific funds, run through this simple ETF checklist.
Fees (Ongoing Charges Figure – OCF)
- Ideally below 0.25%
- Dividend ETFs may be slightly higher
- Over 30–40 years, fees matter massively
Accumulation vs Distribution
- Accumulation (Acc) → Dividends reinvest automatically
- Distribution (Dist) → Dividends paid out as cash
If you're building wealth inside a Stocks & Shares ISA, accumulation funds are often the simplest.
Fund Size & Liquidity
- Avoid tiny, illiquid ETFs
- Larger funds = tighter spreads
- Easier to buy/sell without slippage
Stick to well-known providers like:
- BlackRock (iShares)
- Vanguard
- VanEck
Physical Replication (Not Synthetic)
Always choose physical ETFs where possible.
Physical = the fund actually owns the underlying shares.
Synthetic = uses swaps/derivatives.
For long-term investing, keep it simple.
Currency Matters (GBP vs USD)
Even if you buy in GBP, many ETFs hold US stocks. That means:
- Your investment is exposed to USD
- Currency fluctuations will affect returns
This isn’t necessarily bad — just understand it.
Avoid Duplication
This is the biggest mistake.
Owning:
- Global All World
- S&P 500
- Nasdaq 100
Means you're basically buying the same large US tech companies three times.
The “Magnificent Seven” dominate all of them.
Choose intentionally.
