Diversify easily with ETFs

Exchange-Traded Funds (ETF) is made up of a selection of assets such as stocks, commodities, bonds or a mix. Money from investors is pooled together to purchase these assets. As their name suggests, ETFs trade on stock exchanges.

ETFs tend to focus on a particular strategy, such as tracking a stock index (like the S&P 500), commodity (like gold), specific industry (like healthcare), geographic region (like Europe), or theme across multiple industries and regions (like ESG in emerging markets).

Like ETFs, Investment Trusts in the UK offer an easy option to diversify – and are not to be confused for the more well-known, but different meaning of "trusts". When buying into an Investment Trust, you're purchasing shares in an investment company. The pooled money from investors is used to then buy assets that are managed by the Investment Trust in line with its investment strategy.

Both options offer a simple way to diversify. But, while an ETF tracks the performance of a stock index, region, trend, or theme, the performance of an Investment Trust is based on how the portfolio of assets and its investment strategy are managed.

We don’t charge any fees or commission for investments in ETFs or Investment Trusts. The funds themselves usually have their own management fees. You can find details about these in the key information document (KID) for ETFs, or the key investor information document (KIID) for Investment Trusts. You’ll find a link to view the KID or KIID on the asset screen, and again on the order review screen.

You can invest in the UK's largest ETFs, based on net asset value (NAV). Net asset value is the value of all the investments held inside the fund. Available ETFs include the likes of the Vanguard S&P 500, Vanguard FTSE 100 and iShares Core FTSE 100.

Additionally, choose from the biggest Investment Trusts by market cap, including Scottish Mortgage Investment Trust, Polar Capital Technology Trust, Ruffer Investment Company Limited, BlackRock World Mining Trust and Fidelity China Special Situations.