Isa investors are continuing to back the US stock market despite its recent wobbles, while also investing in gold, clean energy and UK shares.
US focussed funds make up four of the top ten exchange traded funds most held by Isa investors, on investment platform Trading 212.
US large caps, led by the Magnificent Seven tech giants, have delivered stellar performance over recent years, which has led many UK investors to look across the Atlantic for their investment portfolios.
This has led to three ETFs focussed on the leading US stock market index, the S&P 500, to feature in Trading 212’s top ten list, alongside a Nasdaq 100 fund that targets the tech-heavy American index.
Of these ETFs, it was iShares S&P 500 Information Technology Sector that delivered the best five-year gains for investors, with a 187.45 per cent total return, thanks to its focus on big tech firms.
It was followed by the Invesco EQQQ Nasdaq 100 ETF, which had a 140.18 per cent total return over five years.
The Magnificent Seven dominated US stockmarket leads the way among popular ETFs
Unsurprisingly, global funds also feature prominently in the list, with a pair of FTSE All-World ETFs joined by Vanguard’s FTSE All-World High Dividend Yield ETF, which targets dividend-paying companies around the world.
The iShares Physical Gold ETF claims third place in the list, with demand fuelled by a rise in the price of bullion that recently took it above the $3,000 mark for the first time.
This gold ETF the top performer over one year, with a 43.17 per cent total return, almost double the next best performer over a year, the iShares Core S&P 500 ETF at 23.31 per cent.
Investors have also opted to back decarbonisation with iShares Global Clean Energy coming in sixth on the list. The recently resurgent UK stock market managed to bag ninth place via Vanguard’s FTSE 100 ETF.
However, the iShares Global Clean Energy ETF has suffered a downturn that means it will have disappointed many investors, losing 13.72 per cent over one year and 10.17 per cent over five years.
A nascent recovery for UK shares saw the FTSE 100 ETF do much better, posting a very respectable 17.67 per cent total return over one year and 46.92 per cent over five years.
We look at the top ten list in more detail below.
Investing in ETFs
Exchange traded funds pool investors money together to buy a basket of investments. They are traded on the stock market themselves, priced daily, and easily bought and sold.
Most ETFs tend to be passive investments that track a set index, although there are increasing numbers of active ETFs that have managers who try to pick investments they think will outperform.
Most ETFs will follow an index, the term for a defined basket of assets. For example, a FTSE All-Share ETF follows the UK stock market index of that name, while an S&P 500 ETF follows that US stock market index.
Some track an index that has been tweaked to target a particular aspect, such as the biggest dividend paying shares.
ETFs can also track the price of set assets or commodities, such as gold or coffee prices. A physical ETF holds assets to do this, whereas a synthetic one seeks to artificially replicate their price.
Simple ETFs tend to have low costs and can be a cheap, easy way to invest.
The gold price has soared to break throuhg $3,000, fuelling demand among ETF investors
The top ten ETFs in investors’ Isas
These are the ten most popular ETFs in Trading 212 investors’ Isas at the end of February 2025, with duplicate variations of the same fund removed. Figures to 26 February 2025.
The top three ETFs
Vanguard S&P 500
Vanguard’s ETF tracks the S&P 500, the leading index of 500 of the US stock market’s largest firms, which is market capitalisation weighted, so companies are held in proportion to their size. The largest constituents are Apple (7.2%), Nvidia (6.1%), Microsoft (5.8%), Amazon (3.9%) and Meta (2.9%). The ETF has ongoing charges of just 0.07%
One-year total return: 19.47%
Five-year total return: 92.35%
Vanguard FTSE All-World
Vanguard’s ETF tracks the FTSE All-World index of 3,657 large and medium-sized companies in developed and emerging markets. Within that, the US stock market makes up 66%, while Europe is 15%, emerging markets are 9.5% and the UK is 3.6%. It has ongoing charges of 0.22%.
One-year total return: 16.23%
Five-year total return: 75.76%
iShares Physical Gold
The iShares ETF tracks the gold spot price by holding gold bullion. It had 213 tonnes of gold held in trust in March 2025. It has ongoing charges of 0.12%
One-year total return: 43.17%
Five-year total return: 79.56%
Clean energy ETFs have had disappointing performance but remain popular
The rest of the top ten ETFs
iShares Core S&P 500
One-year total return: 23.31%
Five-year total return: 109.33%
iShares S&P 500 Information Technology Sector
One-year total return: 22%
Five-year total return: 187.45%
iShares Global Clean Energy
One-year total return: -13.72%
Five-year total return: -10.17%
Vanguard FTSE All-World High Dividend Yield
One-year total return: 15.10%
Five-year total return: 33.49%
Invesco EQQQ Nasdaq-100
One-year total return: 18.76%
Five-year total return: 140.18%
Vanguard FTSE 100
One-year total return: 17.67%
Five-year total return: 46.92%
Invesco FTSE All-World
One-year total return: 16.66%
Five-year total return: 32.49%
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results. Other fees may apply. See terms and fees. Tax treatment depends on your individual circumstances and regulations which may change. This information is not investment advice. Do your own research.
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