5 Best FTSE 100 ETFs to Buy for Q1 2025

Exchange-traded funds (ETFs) have become one of the most popular methods for investing in indices such as the FTSE 100 in recent years, due to the fact they’re simple and inexpensive to trade.

An FTSE 100 ETF lets you benefit from 100 stock indices representing some of the largest and most influential companies in the world with just one trade. This page will help you learn the best strategies for investing in one.

Best FTSE 100 ETFs

There are plenty of different ETFs that track the FTSE 100 index. The key is finding one that suits your investing goals. The best ones are covered in the table below:

1. iShares Core FTSE 100 UCITS ETF (Acc)

• Current price: £158.0
• AUM: £2.247 billion
• Annual expense ratio: 0.07%
• YTD performance: 8.94%
• Annual dividend yield: N/A

The iShares Core FTSE 100 UCITS ETF (Acc) aims to mirror the performance of the FTSE 100 index, providing exposure to the 100 largest UK-listed companies. With a total expense ratio of just 0.07%, CUKX is the most cost-effective ETF tracking the FTSE 100, making it an attractive option for cost-conscious investors.

Unlike other FTSE 100 ETFs that distribute dividends, CUKX reinvests them, which can enhance returns over time through compounding. This feature makes CUKX stand out as a top pick for investors seeking to maximize growth potential without the need for regular income payouts.

The ETF adopts a full replication strategy, meaning it purchases all the stocks in the index, ensuring precise tracking. CUKX’s impressive assets under management of 2.247 billion GBP reflect its popularity among investors. Launched in 2010 and domiciled in Ireland, this ETF has a solid track record.

2. iShares Core FTSE 100 UCITS ETF (Dist) (LON: ISF)

• Current price: £8.01
• AUM: £11.90 billion
• Annual expense ratio: 0.07%
• YTD performance: 6.75%
• Annual dividend yield: 3.82%

The iShares Core FTSE 100 UCITS ETF (Dist) offers investors exposure to the 100 largest UK-listed companies while providing the added benefit of dividend distributions. With a total expense ratio of 0.07%, ISF is both cost-effective and highly accessible to a broad range of investors.

Unlike CUKX, ISF distributes dividends quarterly, making it an ideal choice for those seeking regular income from their investments. This ETF’s substantial assets under management of 11.90 billion GBP indicate its strong market presence and investor confidence.

Launched in 2000 and domiciled in Ireland, ISF has a long-standing track record. For investors looking for a combination of growth and income, ISF presents a compelling option with its consistent dividend yield and robust performance.

3. Vanguard FTSE 100 UCITS ETF Dis (LON: VUKE)

• Current price: £35.82
• AUM: £5.16 billion
• Annual expense ratio: 0.09%
• YTD performance: 6.78%
• Annual dividend yield: 3.83%

With an expense ratio of 0.09%, the Vanguard FTSE 100 UCITS ETF Dis (VUKE) is a competitively priced FTSE ETF, offering investors efficient access to the UK-listed blue-chip stocks.

VUKE distinguishes itself by distributing dividends quarterly, offering a yield of 3.83%. For those seeking steady cash flows, VUKE’s dividend payouts provide a reliable source of income.

Established in 2012 and managed by Vanguard, this ETF has grown significantly, now boasting £5.16 billion in assets under management. Major holdings include leading companies such as Shell, AstraZeneca, and HSBC, which represent a diverse range of industries.

4. HSBC FTSE 100 UCITS ETF (LON: HUKX)

• Current price: £82.89
• AUM: £558.13 million
• Annual expense ratio: 0.07%
• YTD performance: 7.50%
• Annual dividend yield: 3.31%

The HSBC FTSE 100 UCITS ETF (HUKX) offers a competitively low expense ratio of 0.07%, making it an economical choice for investors seeking exposure to the UK’s top 100 companies.

This ETF is distinguished by its semi-annual dividend distributions, yielding 3.31%, which appeals to those prioritizing regular income over reinvestment.

Launched in 2009, HUKX employs a full replication strategy, ensuring precise tracking of the FTSE 100 Index by holding all its constituents in corresponding proportions. This approach guarantees that the fund mirrors the performance of the index, offering investors comprehensive exposure to leading UK companies across various sectors.

5. Xtrackers FTSE 100 Income UCITS ETF 1D (LON: XUKX)

• Current price: £8.06
• AUM: £60.20 million
• Annual expense ratio: 0.09%
• YTD performance: 6.41%
• Annual dividend yield: 3.31%

The Xtrackers FTSE 100 Income UCITS ETF 1D (XUKX) distinguishes itself within the FTSE 100 landscape by focusing on dividend income. Unlike many FTSE 100 ETFs that reinvest dividends or distribute them semi-annually, XUKX provides annual dividend distributions.

Launched in 2007 and domiciled in Luxembourg, XUKX has a modest asset base of £60.20 million, which underscores its niche appeal among income-focused investors. XUKX’s competitive annual expense ratio of 0.09% enhances its attractiveness, offering cost-effective exposure to high-quality dividend-paying stocks.

Best place to buy FTSE 100 ETFs

There’s no shortage of online brokers that can give you the ability to trade ETFs. Choose one from this table of top brokers:

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

4.4

Public

Min. Deposit $20

Fees 1-2%

No. assets 9000+

Demo account No

Visit site

Public.com review

Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

What is a FTSE 100 ETF?

A FTSE ETF is an exchange-traded fund (ETF) that follows the performance of the FTSE 100 index. The FTSE 100 is compiled of the 100 stocks on the London Stock Exchange with the highest market capitalisation, and the index is one of the most well-known in the world. There are similarities between the FTSE 100 and other famous indices such as the S&P 500, with the biggest differences being the S&P 500 containing five times as many stocks and the two indices tracking the performance of the UK and USA respectively.

Examples of prominent ones include the HSBC FTSE 100 UCITS ETF and the Vanguard FTSE 100 UCITS ETF.

Is it a good investment?

ETFs can be good investments for multiple reasons, but it all depends on your investment strategy and goals. First, the size and stability of the FTSE 100 index means you have less to fear in terms of a catastrophic market event wiping out all (or most) of your money in one day. 

Investing in one offers the benefit of diversification, since it tracks the performance of all 100 stocks in the FTSE 100 at once. ETFs are cheaper to trade than mutual funds, since mutual funds require investors to pay management fees to fund managers, and additionally ETFs can be traded at any point during the day on an exchange – meaning you benefit from both diversification and flexibility.

Still, just like any other kind of investment option, it comes with risk. The volatile first half of 2020 has caused a roller coaster ride for FTSE ETFs, as financial markets have been unstable during the global COVID-19 pandemic. 

Your best bet is to prepare fully: get to know the ETF landscape so you can choose the one that’s right for you, and make sure the broader stock market is holding up well.

1. How to choose an ETF

There’s a bunch of different ETFs you can buy that are pegged to the FTSE 100 index. Here’s a look at some key factors to consider when picking the investment that’s right for you:

• Total value of assets. An ETF should have a minimum level of assets, with $10 million a good starting point for investors. A lower number in terms of assets means that the ETF will have limited liquidity, as well as wide price spreads. For ETF investors, these are both conditions to avoid.
• Charges and fees. ETFs generally charge low fees, coming in at just over half the fees charged by index funds. There will still be differences in the fees charged by specific ETFs though, so it’s still necessary to compare your options to get the best deal.
• Daily trading volume. Different ETFs can have significantly different average daily volume totals. There’s no set rule for how much volume you want your chosen ETF to have – other than it generally being true that the more volume you can find, the better. That’s because higher volume levels tend to make ETFs more stable and less prone to wild price swings. 
• Performance over time. It’s a simple lesson, but an important one: the ETFs with the strongest track records tend to be the best bets to perform well in the future.
• Liquidity. ETF liquidity includes both the volume of units traded on an exchange, and the liquidity of individual securities within an ETF’s portfolio. Individual FTSE 100 stocks all have high liquidity. That means that (as noted earlier) average daily volume becomes the factor to watch when gauging an ETF’s liquidity.
• Whether it pays dividends. The main goal is for the price of the ETF to go up. That said, some ETFs pay dividends too, offering an added bonus for investors holding their investment for the long term. Those ETFs do this by collecting the dividends offered by whichever of the 100 individual FTSE 100 stocks offer them, then distributing a combined dividend to ETF investors. 
• Location and tax status. An ETF can be subject to the laws of whatever country in which it’s based. If you’re deciding between two with similar track records and one of them is based in a lower-tax country, you might want to consider going for the latter. Always check your precise tax liabilities first, though.
• Leverage. When trading with leverage, you’re putting down just a small percentage of the total trade, with your broker handling the rest. Many brokers will enable you to trade with leverage. That said, trading with leverage opens up the possibility of both bigger gains and bigger losses than non-leveraged trades, and it’s thus a strategy that’s more highly recommended for more experienced investors.

2. How to choose a broker

You’ll need to find a broker that can facilitate these trades. There are a wide variety of different online trading platforms from which you can choose, so we’ve compiled this list of what you want to look out for when selecting the right broker for you. 

• What services they offer. The first step you need to check is that the broker you have selected offers ETF trading, and whether – if so – you’ll be able to use the platform to buy and trade FTSE 100 ETFs. Beyond this you might want to check other trading options the broker offers, such as how much leverage you can trade with.
• Whether the platform offers a demo account. If you’re new to ETF trading, then it’s wise to start off with a demo account. These are offered by many brokers and allow you to place trades without risking any of your capital. You won’t make any money with a demo account, but using one to learn the ropes can prevent losses later on.
• The fees charged. Trading ETFs often incurs fees, and these will vary from broker to broker. Sometimes there’ll be a flat rate for making trades, and sometimes brokers will charge commission. Check out the fees charged by a broker before signing up to their service.
• Financial limits. Brokers will often apply a variety of limits to users’ trading activities. This can include deposit/withdrawal minimums and maximums or daily ETF trading limits. Make sure you pick a provider that can cater to the level of trading you’re looking to be doing.
• Security features and regulation. When investing your money with a platform, you want to ensure that it is reputable, complies with relevant legislation, and has good online security features. You can find reliable brokers by looking through our reviews, or simply follow the links to brokers that are listed on this page.

3. Use our top tips before investing

Before investing, it’s a good idea to have a plan. Follow these steps to build an intelligent investing plan:

• Do your research. Study the top options from the list provided above. Compare each one to your own specific investing goals before deciding which ETF to choose. 
• Set a budget. Setting a budget can help you strip emotions such as fear and greed out of your decision-making process. Managing your budget also enables you to have plenty of money left over for future trades, even if you make a bunch of mistakes when you’re getting started. Never forget the golden rule: don’t invest more than you can afford to lose.
• Select the right platform. We’ve reviewed all the best platforms that offer ETF trading on our site to help you make the right choice. Choose the broker you want based on the criteria that are most important to you, whether that’s low transaction fees, ease of use, or any others.
• Grow your investments over time. As a beginner investor, you should consider investing with a smaller amount of money at first. You can always raise the size of your bets as you gain expertise and experience.
• Think long-term. While they can be used for shorter-term trading, there’s plenty of potential for bigger long-term gains. Your best chance for impressive long-term gains will come during a bull market if you can buy and hold as the stock market rises over time.

How do I trade FTSE 100 index ETFs?

You’ll need to sign up with an online broker that offers ETF trading first. Here are three important review topics to explore if you want to find the best FTSE 100 ETF:

1. How to choose an ETF
2. How to choose a broker 
3. Use our top tips to succeed

Methodology: How we choose the best FTSE 100 ETFs

At Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.

• Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
• ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
• Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
• Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
• Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.