Find out about index funds below or see research by our analysts
Important information - The value of investments can fall as well as rise, so you could get back less than you invest. This isn't personal advice. If you are at all unsure of the suitability of an investment for your circumstances, please seek advice. Once held in a pension money is not usually accessible until age 55 (rising to 57 in 2028).
What are index funds?
Index funds, also known as tracker funds, have become increasingly popular in recent years. It’s easy to see why – they provide instant diversification in one simple, low-cost investment.
Instead of trying to outperform a particular stock market or index, they aim to closely track its performance, often by simply investing in every stock in the index they’re tracking. This is in contrast to an actively-managed fund that will aim to beat the performance of an index.
They’re one of the simplest ways to invest, and as there’s no manager or analysts to pay, they’re often available at an extremely low cost (platform charges also apply).
There’s plenty of choice too – from funds tracking UK markets to those focusing further afield. Index funds can be held in any of our investment accounts, including a Stocks and Shares ISA, Lifetime ISA (LISA), Self-Invested Personal Pension and a Fund and Share Account.
Wealth Shortlist Index Funds
To help narrow down the choice, our analysts have selected a number of index funds from across the major sectors for the Wealth Shortlist.
The Wealth Shortlist is designed to help investors build well-balanced and diversified portfolios. We put funds under the microscope to make sure the list only contains the funds that our in-depth analysis indicates have the greatest performance potential.
We never take payment or commission for funds to appear on the Shortlist.
To use the Shortlist to build your portfolio, you should:
- Be comfortable deciding if a fund fits your investment goals and attitude to risk. Learn more about risk.
- Know how to choose and maintain a diverse mix of funds to reduce risk. Learn more about diversification.
For investors who don't feel comfortable building and maintaining their own portfolio we offer ready-made solutions, which are aligned to broad investment objectives. For those who want extra help, you can also ask us for financial advice.
The Wealth Shortlist includes funds across a range of sectors, and risk levels that won’t be right for everyone – it isn’t personal advice. A change to the list isn’t a recommendation to buy or sell. You’ll need to consider your own goals, attitude to risk and wider portfolio before making any investment decisions. Funds can fall as well as rise in value and you could get back less than you invest.
Scroll across to see the full table.
Funds are listed in alphabetical order.
Most popular index funds
Below are the most popular funds chosen by our clients in January 2023 (by net buys), listed in alphabetical order. This information is provided for your interest and is not a guide to how you should invest. Regular savings are not included.
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Index fund research
Frequently asked questions about index funds
Easy to navigate and wide choice of funds.
MR JENKINS, Hertfordshire
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The Personal Finance Awards
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Times Money Mentor