Best Etfs this January 2026 in the UK

The Vanguard FTSE 250 ETF targets UK medium-sized companies, which are currently attractively priced compared to their larger counterparts. Despite a significant 5-year return decline of 90%, the fund has delivered an impressive 1-year return of 113.64%, reflecting the positive impact of increased mergers and acquisitions in the UK market. Analysts rate this ETF a C+, indicating room for improvement, yet it remains an appealing option for investors looking to capitalize on undervalued sectors.

UK stocks are performing well due to increased mergers and acquisitions, which are boosting company valuations, particularly for undervalued firms.

The Vanguard FTSE All-World High Dividend Yield UCITS ETF is ideal for income-focused investors, targeting high-dividend-yielding global equities. With a dividend yield of 2.81% and impressive returns of 13.24% over the past year and 48.37% over the last five years, this fund offers both consistent payouts and the potential for capital appreciation. Investors can expect quarterly dividends, providing a reliable income stream throughout the year.

VHYG typically pays dividends four times a year, with the most recent dividend being $0.46, paid 18 days ago.

The iShares AI Infrastructure UCITS ETF targets growth by investing in companies focused on artificial intelligence and infrastructure technology, making it a compelling choice for investors seeking exposure in these dynamic sectors. Despite a challenging year with a -20.26% return, the ETF boasts an impressive dividend yield of 148.15%, highlighting its potential for income generation. While currently rated as a C by analysts, its focus on innovative technologies could be worth considering for long-term growth.

ACC Ltd. has a target price of 2170 INR, indicating a potential upside of 25.17% from its current price of 1733.70 INR, although it has been downgraded by a broker.

ACC Ltd. is undervalued by 6%, with an intrinsic value of 1795.57 INR compared to the current market price of 1696.80 INR.

ACC has a low debt-to-equity ratio of 1%, indicating it is almost debt-free and has a healthy balance sheet.

ACC shares are trading below key moving averages, suggesting a bearish outlook that may be deterring short-term traders.

The iShares Core MSCI Emerging Markets UCITS ETF offers investors a diversified portfolio of equities from rapidly growing economies such as China, India, and Brazil. Despite a challenging year with a return of -20.26%, it boasts an impressive dividend yield of 148.15%, making it an appealing choice for those seeking exposure to emerging markets.

ACC Ltd. has a target price of INR 2,170, indicating a potential upside of 25.17% from its current price of INR 1,733.70, though it has been downgraded by some analysts.

ACC Ltd. is undervalued by approximately 6%, with an intrinsic value of INR 1,795.57 compared to the current market price of INR 1,696.80.

ACC has a low debt-to-equity ratio of 1%, indicating it is almost debt-free and maintains a healthy balance sheet.

ACC shares are trading below all key moving averages, suggesting a bearish outlook that may be discouraging short-term traders.

The Vanguard FTSE All-World UCITS ETF is an attractive option for investors seeking low-cost exposure to a diversified array of global equity markets. With a remarkable 1-year return of 10.81% and a substantial 5-year return of 70.77%, it stands out as a long-term core portfolio holding. This ETF is ideal for those looking to build a balanced investment strategy with a focus on worldwide market opportunities.

The Vanguard S&P 500 ETF (VOO) is a solid investment choice, having generated nearly 695% total returns over the past 20 years.