The end of the tax year is a great time to review your portfolio and make the most of your allowances. Adding new cash gives you the opportunity to shore up and rebalance, and help make sure your portfolio stays in line with your goals.
ISAs and pensions are powerful long-term tools, shielding investments from UK income tax and capital gains tax, which makes them well suited to building wealth over time.
A well-constructed ISA portfolio could combine global growth, resilience in tougher markets and exposure to areas that may be temporarily out of favour but have the potential to recover. Our ideas reflect the different roles you might need.
For your pension, time is one of the greatest advantages. Pensions are typically invested for decades, which means portfolios often have time to ride out shorter-term volatility in pursuit of long-term growth – remember you can’t take money out until you’re 55, or 57 from 2028. That said, other investors may be approaching retirement.
Income ideas can be great to look for a yield that grows over time alongside capital. They can also be used to diversify an investment portfolio focused on growth.
None are designed to be standalone solutions, but as part of a broader, diversified portfolio aligned to your objectives and attitude to risk. You could invest in one, two or all three.
Investing in these ETFs isn’t right for everyone. This article is not a personal recommendation to buy, sell or hold any particular investment. If you’re not sure an investment is right for you, please speak to a financial adviser. As always, investments can fall as well as rise in value so you could get back less than you invest. ISA, pension and tax rules change and benefits depend on personal circumstances.
Please note as the ETFs below are domiciled outside of the UK, they are not normally covered by the UK Financial Services Compensation Scheme.
ETF ISA picks
ETF ISA picks
For more detail on each ETF, its charges and specific risks, please see the links to their factsheets and key investor information below.
Vanguard FTSE All-World UCITS ETF
Broad global exposure across developed and emerging markets in a single investment
Low-cost, passive approach tracking the FTSE All-World Index
Could act as a core long-term growth building block within a diversified portfolio
Global ETFs can provide a strong foundation for an investment portfolio focused on long-term growth. By investing in companies across the world, they offer broad diversification within a single holding, reducing reliance on any one country, sector or theme.
The Vanguard FTSE All-World ETF is designed to track the performance of the FTSE All-World Index, providing exposure to large and medium-sized companies in both developed and emerging markets. It uses a partial replication approach, investing in most but not every company in the index. This helps keep trading efficient and costs low while aiming to closely follow index performance.
The US currently represents the largest portion of the index, meaning the ETF also has notable exposure to global technology leaders. It also invests in countries such as Japan, the UK, China, France and India, spanning a wide range of industries including technology, financials and consumer discretionary.
Including emerging markets broadens the opportunity set and adds long-term growth potential, although these regions can be more volatile and higher-risk than developed markets.
With Vanguard’s scale and experience in passive investing, costs are kept competitive, though securities lending is used to help offset expenses, which adds some risk.
As part of a diversified portfolio, this ETF could act as a core global equity building block, offering wide market exposure in a single, low-cost investment. Investors should remember that while diversification helps spread risk, global markets can still fall in value, especially during periods of economic uncertainty.
Vanguard Global Aggregate Bond UCITS ETF
Exposure to global investment-grade government and corporate bonds
Invests across thousands of bonds worldwide, providing plenty of diversification in a single bond investment
Can be used as a ballast alongside equity or potentially higher-risk investments
This ETF offers a more cautious approach and a steadier path to long-term growth compared with ETFs focused solely on shares or more volatile parts of global markets. By investing across a range of global bonds, it could provide ballast to an investment portfolio focused mainly on company shares. It may also appeal to income-focused investors looking for a diversified source of income within an ISA.
The ETF aims to track the Bloomberg Global Aggregate Index (Hedged GBP), which includes investment-grade bonds with maturities of more than one year. The index spans global government bonds, corporate bonds and securitised debt, offering exposure to thousands of issuers worldwide. Rather than buying every bond in the index, the ETF uses a partial replication approach, investing in a representative sample to help keep trading efficient and costs competitive while still aiming to closely track performance.
The ETF has a bias towards global government bonds, with the remainder primarily invested in investment-grade corporate bonds and some securitised holdings such as mortgage-backed securities. Nearly 40% of the ETF invests in the US, with additional exposure to markets including France, Japan and Germany, as well as a modest allocation to higher-risk emerging markets in line with the benchmark.
For UK investors, the index is hedged back to sterling, which helps reduce the impact of currency fluctuations against the pound.
While this can help smooth returns, bond investments are not risk free and prices can fall as well as rise.
As part of a diversified portfolio, this ETF could help provide a more balanced investment journey over the long term.
This ETF makes use of derivatives which adds risk.
SPDR FTSE UK All-Share UCITS ETF
Invests in a range of large, medium-sized and smaller UK-listed companies
Tracks the FTSE All-Share Index using a cost-efficient approach
Offers a straightforward way to access UK companies, which in our view look good value versus overseas peers
The UK market has been overlooked by many investors in recent years, as returns have been dominated by a narrow group of large US technology companies. Yet the UK stock market has been quietly performing well – it’s a reminder that investing in the UK market is not the same as investing in the UK economy. While domestic growth has been sluggish, many companies listed in London generate a significant proportion of their revenues overseas. Past performance isn’t a guide to the future.
Despite economic headwinds, the market has been supported by strong cash generation, share buybacks and takeover activity. Valuations also remain at a discount to markets such as the US, which could appeal to long-term investors.
The SPDR FTSE UK All-Share UCITS ETF aims to track the performance of the FTSE All-Share Index, which combines the FTSE 100, FTSE 250 and FTSE Small Cap indices to provide broad exposure to companies of different sizes and across a range of sectors.
The ETF mostly invests in larger companies, but also some smaller and medium-sized businesses – this could boost growth potential, but investment in small companies increases risk.
The ETF uses a partial replication approach, investing in most companies in the index to help keep costs and trading efficient while still closely tracking performance. As a result, it currently holds slightly fewer companies than the full index. It may also participate in stock lending, which may increase risk.
For investors building a diversified portfolio, this ETF could act as a straightforward way to access the breadth of the UK market in a single holding. It could complement global equity exposure, add domestic diversification, or sit alongside smaller company or bond investments. As always, while valuations may look attractive, UK shares can be volatile in the short term and investors should ensure any allocation aligns with their long-term objectives and risk tolerance.
SIPP ETF picks
SIPP ETF picks
For more detail on each ETF, its charges and specific risks, please see the links to their factsheets and key investor information below.
Vanguard FTSE Emerging Markets UCITS ETF
Long-term growth potential for patient investors who can ride out volatility
Exposure to the diversified emerging markets, including India, China and Taiwan
Aims to track the performance of the FTSE Emerging Index
Emerging markets have been somewhat in the shadows in recent years, while the US has dominated global returns. But that hasn’t always been the case and at some point, and over a multi-decade horizon, some of tomorrow’s growth engines are likely to be based in today’s developing world.
Valuations in developing markets currently look appealing compared to their developed peers, and we think the long-term growth story remains intact.
India, for example, has had a weaker year against some other markets (to the end of January) following a period of strength, which could provide an opportunity especially as it’s still expected to become a dominant driver of global growth over time.
A key factor to watch in 2026 is the US dollar. A softer dollar could be good news for emerging markets, typically reducing the cost of debt for these economies and can encourage investment flows. The opposite is also true. Meanwhile, many emerging market consumers are becoming wealthier, driving demand for goods and services at home.
For diversification and add long-term growth potential, emerging markets can play a valuable role within a balanced portfolio. This is still a higher-risk area though, with political and economic challenges to consider.
The Vanguard FTSE Emerging Markets ETF aims to track the performance of the FTSE Emerging Index. It invests in some of the region’s largest countries including India and China, as well as other economies, such as Latin America, the Middle East, and South Africa.
Vanguard FTSE All-World UCITS ETF
Broad global exposure across developed and emerging markets in a single investment
Low-cost, passive approach tracking the FTSE All-World Index
Could act as a core long-term growth building block within a diversified portfolio
Global ETFs can provide a strong foundation for an investment portfolio focused on long-term growth. By investing in companies across the world, they offer broad diversification within a single holding, reducing reliance on any one country, sector or theme.
The Vanguard FTSE All-World ETF is designed to track the performance of the FTSE All-World Index, providing exposure to large and medium-sized companies in both developed and emerging markets. It uses a partial replication approach, investing in most but not every company in the index. This helps keep trading efficient and costs low while aiming to closely follow index performance.
The US currently represents the largest portion of the index, meaning the ETF also has notable exposure to global technology leaders. It also invests in countries such as Japan, the UK, China, France and India, spanning a wide range of industries including technology, financials and consumer discretionary.
Including emerging markets broadens the opportunity set and adds long-term growth potential, although these regions can be more volatile and higher-risk than developed markets.
With Vanguard’s scale and experience in passive investing, costs are kept competitive.
As part of a diversified portfolio, this ETF could act as a core global equity building block, offering wide market exposure in a single, low-cost investment. Investors should remember that while diversification helps spread risk, global markets can still fall in value, especially during periods of economic uncertainty.
Vanguard FTSE 250 UCITS ETF
Invests in the UK’s medium-sized companies by tracking the FTSE 250 Index
Low-cost, passive approach from Vanguard, a pioneer of passive investing
Long-term growth potential from an often overlooked part of the market
For truly long-term investors seeking to build wealth over decades, small and medium-sized companies can offer an important source of growth, albeit with higher volatility along the way.
The Vanguard FTSE 250 ETF provides broad exposure to the UK’s medium-sized companies and aims to track the FTSE 250 Index. These businesses typically make more of their money domestically, so they’re less reliant on foreign economies than some of the larger companies in the UK. That said, the FTSE 250 Index also includes investment trusts, some of which invest in overseas markets and provides the ETF with some international diversification.
In recent years, market leadership has been unusually narrow. A small group of US mega-cap technology companies have dominated returns, while many smaller businesses were left under-owned and overlooked. Higher interest rates and economic uncertainty also weighed more heavily on smaller firms. However, leadership rarely remains concentrated indefinitely.
Over the long term, small and medium-sized firms, including those in the UK, have delivered stronger returns, though the journey has come with more ups and downs than for larger firms and periods of underperformance should be expected for any investment. For pension investors with time on their side, the ability to ride out these phases can be a key advantage.
Valuations today present a more balanced picture. The valuations of medium-sized companies are lower than their larger counterparts. For investors willing to look beyond the dominant global giants, that gap in expectations may represent an opportunity, though there are no guarantees.
Vanguard is a pioneer of passive investing and manages some of the world’s largest index funds. Its scale and experienced global team help it track indices efficiently while keeping costs low.
Within a diversified portfolio, this ETF could provide low-cost, broad exposure to a dynamic part of the market, complementing larger company investments and supporting long-term growth potential. That said, small and medium-sized companies are higher risk and can fall further during market stress.
Income ETF picks
Income ETF picks
For more detail on each ETF, its charges and specific risks, please see the links to their factsheets and key investor information below.
iShares UK Dividend UCITS ETF
The UK stock market tends to pay a higher income than other regions in the world
Invests in some of the larger UK dividend payers
Aims to track the performance of the FTSE UK Dividend+ Index
The UK stock market typically provides a higher level of dividend income compared to other regions around the world. This is largely due to its make-up, with many of the largest companies listed in the UK from more mature industries. These companies tend to focus less on rapid growth and more on cashflow generation that can be paid to shareholders as dividends. This makes it a great place to invest for income.
The UK stock market has performed well in 2025, outperforming the global stock market.
The banking sector has seen particularly strong gains. With HSBC, Barclays, Lloyds and NatWest all in the top 15 biggest companies in the index, this helped to drive performance.
While there are no guarantees the UK will continue to outperform, many companies have seen improved profits. So even if share price growth isn’t as strong, this should mean their ability to continue to pay dividends remains strong in the short to medium-term.
The iShares UK Dividend ETF offers a low-cost option for tracking the performance of the FTSE UK Dividend+ Index. This index is focused on dividend-paying companies – it’s designed to track the performance of the highest-yielding (income-paying) companies within the FTSE 350 Index excluding investment trusts. It does this by investing in every company in the index, a process known as full replication.
The ETF has a yield of 4.39% as of the end of February. Income isn’t guaranteed.
Vanguard FTSE All World High Dividend Yield UCITS ETF
Higher dividends than global trackers focused on growth
Invests in companies from all over the world, providing diversification
Aims to track the performance of the FTSE All-World High Dividend Yield Index
Global ETFs can provide a strong foundation for an investment portfolio. By investing in companies across the world, they offer broad diversification within a single holding, reducing reliance on any one country or sector.
The Vanguard FTSE All-World High Dividend Yield ETF invests in large and medium-sized companies in developed and emerging markets that pay dividends that are generally higher than average. Emerging markets offer investors greater potential for growth, but they can be more volatile and are higher risk than their more developed counterparts.
This ETF aims to track the performance of the FTSE All-World High Dividend Yield Index by investing in most, but not all, of the companies in the benchmark. This is known as partial replication and can help the ETF track the index closely without the need to buy all the smaller companies in the index which can be more difficult and costly to trade.
The US currently represents the largest portion of the index. However, the income focus means it’s more invested in the financials sector compared to a global ETF focused on growth. It also invests in countries such as Japan, the UK, Switzerland, Canada and France, spanning a wide range of industries including technology, financials and consumer discretionary.
With Vanguard’s scale and experience in passive investing, costs are kept competitive.
As part of a diversified portfolio, this ETF could act as a core global equity income building block, offering wide market exposure in a single, low-cost investment. Investors should remember that while diversification helps spread risk, global markets can still fall in value, especially during periods of economic uncertainty.
The ETF has a yield of 2.50% as of the end of February. Income isn’t guaranteed.
iShares Global Corporate Bond UCITS ETF
Bonds tend to offer a higher income than shares, but with lower capital growth potential
Invests in corporate bonds issued by companies all over the world
Aims to track the performance of the Bloomberg Global Aggregate Corporate Bond Index
When it comes to income, bonds are an obvious choice. Most of the return comes directly from interest payments made by the bond issuer, which in turn provide a regular income to investors.
With the interest rate increases across the world in recent years, bonds are offering higher yields today than they were. This makes bond funds even more appealing to use within a portfolio focused on generating income.
The iShares Global Corporate Bond ETF invests in investment grade bonds issued by companies in emerging and developed markets. Investment grade bonds are deemed to be more likely to pay off their debts than some higher-risk bonds, such as high yield bonds.
This ETF aims to track the performance of the Bloomberg Global Aggregate Corporate Bond Index. It does this by investing in most, but not all, of the companies in the benchmark. This is known as partial replication and can help the ETF track the index closely without the need to buy all the smaller companies in the index which can be more difficult and costly to trade.
As this ETF invests globally, the number of bonds included in it is very large and hugely diversified.
This reduces the impact on performance if an individual company defaults on their bond payments. It also means that investors benefit from the different economic conditions for regions and sectors all over the world. However, companies from the US make up more than 50% of the ETF, meaning it tends to have a greater impact on performance over time compared to other regions.
The ETF uses derivatives and invests in emerging markets, both of which add risk.
The ETF has a yield of 4.00% as of the end of February. Income isn’t guaranteed.
