1.HSBC FTSE 100
HUKX.L (LSE)
HSBC FTSE 100 is an attractive option for investors looking to track the FTSE 100 index, featuring a low annual fee of just 0.07%. With a solid 1-year return of 20.39% and a noteworthy 5-year return of 55.30%, it demonstrates strong performance. Additionally, the fund boasts a dividend yield of 2.90%, appealing to those seeking reliable income from financially healthy companies.
Pros:
- Tracks the FTSE 100 Index
- Competitive annual fee of 0.07%
Cons:
- Smaller fund size
- Market volatility risk
2.Vanguard FTSE 100
VUKE.L (LSE)
For investors seeking cost-effective exposure to the UK equity market, the Vanguard FTSE 100 fund is an attractive option, boasting a low annual fee of just 0.09% and robust assets of £6.3 billion. With a strong 1-year return of 20.32% and a solid 5-year return of 53.07%, it also offers a competitive dividend yield of 3.15%. This fund is well-positioned for those looking to track the performance of the FTSE 100 index while benefiting from consistent and reliable income.
Pros:
- Cost-effective UK equity exposure
- Tracks the performance of the FTSE 100
Cons:
- Market volatility risk
- Dependence on UK market performance
3.Xtrackers FTSE 100
XDUK.L (LSE)
Xtrackers FTSE 100 offers investors an efficient way to track the FTSE 100 index with a competitive annual fee of just 0.09%. With a solid 1-year return of 24.26% and a remarkable 5-year return of 85.04%, this fund is ideal for those looking for exposure to the UK's largest companies while benefiting from lower assets under management. The fund also boasts a dividend yield of 1.66%, making it an attractive option for income-focused investors.
Pros:
- Provides FTSE 100 index tracking
- Low annual fee of 0.09%
Cons:
- Lower assets under management
- Market volatility risk
4.iShares Core FTSE 100 UCITS ETF
CSUKX.SW (SIX)
The iShares Core FTSE 100 UCITS ETF is an attractive option for novice investors seeking diversification through exposure to the UK’s largest companies. Known for its lower risk and typically lower fees, this ETF is recognized as the cheapest and largest that tracks the FTSE 100 index, making it a solid choice for those looking to replicate the performance of this benchmark. Additionally, it offers the potential for dividends, enhancing its appeal for income-focused investors.
Pros:
- Diversification through UK's largest companies
- Lower risk and fees
Cons:
- Limited growth potential compared to smaller companies
- Dependence on UK market performance
5.Invesco FTSE 100
S100.L (LSE)
Invesco FTSE 100 offers investors an affordable way to gain broad exposure to the UK market, with an impressively low annual fee of just 0.09%. Over the past year, it has delivered a robust return of 24.01%, while its five-year performance stands at an impressive 84.52%. This makes it an attractive option for those looking to capitalize on the performance of major UK companies.
Pros:
- Tracks the FTSE 100 index
- Suitable for investors seeking broad UK market exposure
Cons:
- Annual fee of 0.09%
- Market volatility risk
6.Vanguard FTSE Developed World UCITS ETF
VHVG.L (LSE)
The Vanguard FTSE Developed World UCITS ETF offers a robust way for investors to achieve international diversification, tracking the FTSE Developed World ex-UK Index across key regions like North America, Europe, and Asia Pacific, all while benefiting from Vanguard's low fees. With a strong 1-year return of 11.75% and an impressive 5-year return of 80.08%, this ETF stands out as a compelling option for those looking to enhance their global equity exposure. Additionally, it consistently earns high marks for its low expense ratio, making it an attractive choice for cost-conscious investors.
Pros:
- International diversification
- Low fees
Cons:
- Market volatility risk
- Dependence on global market performance
Final Words
As you consider the best low-cost index funds available in February 2026, remember that options like the iShares Core FTSE 100 UCITS ETF can provide a solid foundation for your investment strategy. Take time to compare various funds and conduct your own research to ensure you make informed decisions that align with your financial goals.
Frequently Asked Questions
The iShares Core FTSE 100 UCITS ETF is an investment fund that aims to replicate the performance of the FTSE 100 Index, which includes the largest companies in the UK. It is known for its lower risk and typically lower fees, making it a solid choice for investors seeking exposure to the UK market.
One of the main advantages is diversification, as it provides exposure to the UK's largest companies. Additionally, it has lower fees and risk compared to many other investment options, making it suitable for novice investors.
The iShares Core FTSE 100 UCITS ETF pays dividends quarterly, making it an attractive option for income-focused investors looking for regular income from their investments.
The market cap of the iShares Core FTSE 100 UCITS ETF is approximately $2.81 billion, indicating its size and stability in the market.
The iShares Core FTSE 100 UCITS ETF is recognized as the cheapest and largest ETF tracking the FTSE 100 index, which sets it apart from many other low-cost index funds. Its lower fees and focus on large-cap UK companies make it a competitive option.
Before investing in low-cost index funds, consider your financial goals, risk tolerance, and investment horizon. It's also important to review the fund's performance history, fees, and the sectors it covers to ensure it aligns with your investment strategy.
