What are the best ETFs to invest in 2024?

Popular ETFs from Vanguard track diverse markets with low fees. S&P 500, All-World, FTSE 100, Japan, and Emerging Markets offer broad investment options.
What Are The Best ETFs To Invest In?
What Are The Best ETFs To Invest In?

Hold up! Before we dive in, remember I’m not an investment advisor. I can’t tell you where to put your money, but I can give you the lowdown on some popular ETFs and what they’re all about.

These ETFs are mostly passive – they track a market index or a specific segment instead of having a fund manager calling the shots. They’re also distribution versions, meaning they pay dividends directly to you rather than reinvesting them.

These types of ETFs can yield good returns and are better suited for long-term investors. Their broad market exposure helps smooth out short-term volatility, making them ideal for those with a ‘buy and hold’ strategy. Over time, they tend to benefit from overall market growth and compound returns.

Also, I’m assuming you already know what ETFs are and how they work, so I won’t be explaining the mechanics behind ETFs. If you need a refresher on ETF basics, here is an article that explains what an ETF is.


Vanguard S&P 500 (VUSA)
2023 Returns: 24.6%

This is your ticket to owning a slice of America’s biggest companies without the hassle of picking individual stocks. It tracks the S&P 500, covering giants like Apple, Microsoft, and Amazon. If you want to ride the ups and downs of the US stock market without the legwork, this ETF does the heavy lifting.


Vanguard FTSE All-World (VWRL)
2023 Returns: 20.1%

Think of this as your global investment passport. It tracks over 3,000 companies from developed and emerging markets worldwide. From US tech giants to Asian industrial leaders, this ETF gives you a taste of it all. It’s diversification on steroids, all in one neat package.


Vanguard FTSE 100 (VUKE) & FTSE 250 (VMIG)
2023 Returns: 8.5% and 17.8% respectively

Fancy investing in UK companies? VUKE gives you access to the 100 largest firms on the London Stock Exchange – think BP and HSBC. These tend to be stable and often pay decent dividends.

VMIG, on the other hand, focuses on the next 250 largest companies. These are more mid-sized and UK-centric, offering growth potential with a bit more excitement (read: volatility). Between these two, you’ve got the UK market pretty well covered.


Vanguard FTSE Japan (VJPN)
2023 Returns: 10.9%

Want a piece of Japan? VJPN tracks large and mid-cap Japanese companies. We’re talking Toyota, Sony, SoftBank – the big guns. It’s a solid choice if you believe in Japan’s tech and manufacturing prowess.


Vanguard FTSE Emerging Markets
2023 Returns: 15%

This one’s for those who like a bit of spice in their portfolio. It covers companies in developing economies like China, Brazil, India, and South Africa. Higher growth potential? Check. More volatility? Also, check.


Now, you might be wondering, “Why is this list all Vanguard?” Fair question. Vanguard ETFs are known for their rock-bottom fees, which means you keep more of your returns. They offer a wide range of options, making diversification a breeze. Plus, their unique investor-owned structure means they’re focused on delivering value to you, not outside shareholders. With a solid reputation and track record, they’re a go-to for many long-term investors.

Remember, while these ETFs have performed well recently, past performance doesn’t guarantee future results. Always do your own research and consider your personal financial situation before investing.

What is a good investing strategy for ETFs?

My go-to strategy is dollar-cost averaging. I like to steadily invest a set amount over time rather than going all-in with a single, hefty investment. This way, I can weather those market storms when everyone seems to be in a panic and prices drop.

By drip-feeding my investments, I’m not just avoiding the stress of trying to time the market perfectly, I’m also able to snag ETF units at various prices. It’s like picking up bargains along the way while building my portfolio. This method keeps me focused on the long haul, allowing me to ride out the ups and downs without losing my cool.

Dollar-Cost what?

Dollar-cost averaging is a simple investment strategy that involves regularly investing a fixed amount of money into an asset, like ETFs, regardless of its price. Instead of trying to time the market and investing a lump sum when you think prices are low, you spread your investments out over time.

For example, let’s say you decide to invest £100 every month into an ETF. If the price of the ETF is high one month, you’ll buy fewer shares, but if the price dips the next month, you can purchase more shares for the same amount. This approach helps to smooth out the impact of market volatility because you’re buying at various price points rather than one single price. Over time, this can lead to a lower average cost per share, making it a sensible way to build your investment without the stress of market timing.

Quick Fire Questions

Where can I invest in Vanguard ETFs?

You can invest in Vanguard ETFs directly through Vanguard, which offers several account options, including a Stocks & Shares ISA. Additionally, many investing platforms, such as Trading212, Freetrade, CMC Invest, Interactive Investor, Hargreaves Lansdown, and AJ Bell, allow you to invest in these ETFs.

What are the charges for investing in these ETFs?

Each Vanguard fund may carry an annual fee, which is charged by Vanguard itself. For example, the S&P 500 ETF (VUSA) has an annual fee of 0.07%. Additionally, some investing platforms may charge their own holding fees, so it’s important to review the specific costs associated with both the fund and the platform before investing.

What is the difference between a Distribution and an Accumulation fund?

A Distribution fund pays out income generated from investments to shareholders, typically in the form of dividends. In contrast, an Accumulation fund reinvests this income back into the fund, allowing your investment to grow over time without receiving cash payouts.

What is the difference between a passive fund and an active fund?

Passive funds aim to replicate the performance of a specific index by holding the same assets in the same proportions. This strategy typically results in lower fees. Active funds, on the other hand, involve a team of managers making investment decisions in an attempt to outperform the market, often leading to higher costs.

What is an ETF unit?

An ETF unit represents a single share of an exchange-traded fund (ETF). When you buy an ETF unit, you are purchasing a small portion of the overall portfolio of assets that the ETF holds.

Can I invest in multiple ETFs?

Yes, you can invest in multiple ETFs to diversify your portfolio across various assets.

Disclaimer: This article is based on my personal experience and research. I’m not recommending or encouraging you to invest in these or any specific ETFs. Always do your own due diligence and consider seeking advice from a qualified financial professional before making investment decisions.

Disclosure: I’m not affiliated with Vanguard or any other ETF provider mentioned here. I don’t earn any commission for discussing their products. This is just me sharing information based on my own observations and experience.