Many investors still want plenty of exposure to the region, however, and are using ETFs to achieve this.
Global stocks
The best-sellers list is also packed with global index trackers. The Vanguard FTSE All-World, the SPDR MSCI All Country World and the Invesco FTSE All-World all feature in the top 10 for 2025.
Their portfolios look very similar. About 63% of each ETF is invested in the US, and about 7% is invested in the Eurozone.
However, different charges apply. The SPDR ETF has the lowest ongoing charge of 0.12%, while Vanguard has an ongoing charge of 0.22%. The Vanguard has far more net assets, however, meaning it has a narrower bid-ask spread.
Defence
ETFs are also a good way to tap into specific industries without the hassle of picking individual stocks. Given the war in Ukraine, tensions in the Middle East, and Europe’s rearmament push, the defence sector is attracting particular interest.
HANetf’s Future of Defence fund invests in companies that generate sales from NATO defence spending. Top holdings include German arms giant Rheinmetall and US software company Palantir Technologies, which counts the US Department of Defense as a key client.
Another sector favourite is the VanEck Defense ETF. Having launched less than three years ago, this fund aims to track the overall performance of companies serving national defence industries. These include Palantir, Italian aerospace giant Leonardo, and French player Thales.
The defence market is expected to exceed $700bn by 2027 – and the cybersecurity market is growing even faster. This has been driving up shares in the sector. However, volatility is a key risk when it comes to thematic ETFs as there is little diversification within the funds.4
Bonds
It’s not all about equities, of course. Some ETFs focus on fixed income, and the iShares £ Ultrashort Bond UCITS ETF is very popular with retail customers this year.
This ETF is low risk and invests in a diversified range of bonds with very short maturities. As such, it aims to deliver slightly better than cash-like returns. In the year to 30 June 2025, for example, it achieved growth of 5.13%, compared with 4.8% achieved by the Fidelity Cash Fund.
Best-selling ETF’s year-to-date
- iShares Physical Gold ETC
- Vanguard S&P 500 UCITS ETF
- Vanguard FTSE All-World UCITS ETF
- SPDR MSCI All Country World UCITS ETF
- Vanguard S&P 500 UCITS ETF
- Vanguard FTSE Developed World UCITS ETF
- VanEck Defense ETF
- HANetf ICAV – Future of Defence UCITS ETF
- Shares £ Ultrashort Bond UCITS ETF
- Invesco FTSE All-World UCITS ETF
Source: Fidelity International. Net sales 1 January to 30 September 2025, for Personal Investors only.
| (%) As at 30 Sept |
2020-2021 | 2021-2022 | 2022-2023 | 2023-2024 | 2024-2025 |
|---|---|---|---|---|---|
| iShares Physical Gold | -11.4 | 14.9 | 1.2 | 29.1 | 45.2 |
| MSCI World | 29.4 | -19.3 | 22.6 | 33.0 | 17.8 |
| FTSE 100 | 25.4 | 0.9 | 14.7 | 12.4 | 17.5 |
| FTSE Emerging | 18.9 | -24.2 | 11.1 | 28.5 | 16.2 |
| S&P 500 | 30.0 | -15.5 | 21.6 | 36.4 | 17.6 |
| STOXX Europe 600 | 29.3 | -12.0 | 19.9 | 20.0 | 10.3 |
Past performance is not a reliable indicator of future returns
Source: total returns, from 30.9.20 to 30.9.25. Excludes initial charge.
1 Gold.co.uk, October 2025
2 World Gold Council, October 2025
3 S&P Global, October 2025
4 HANEtf, 31 May 2025