Best ETFs to invest in 2026

An ETF is the most efficient investment vehicle for most retail investors: low fees, instant diversification and no need to pick individual stocks. But there are thousands of ETFs available. This guide explains which are the most widely used and how to choose between them.

• VWCE (Vanguard All-World) and IWDA (iShares MSCI World) are the most recommended for beginners
• Annual fees (TER) of the best ETFs are between 0.07% and 0.22%
• UCITS ETFs are the European equivalent of VOO or VTI — fiscally equivalent for EU residents
• A single global ETF can give you exposure to more than 3,500 companies in 50 countries
• The choice between accumulating and distributing ETFs matters for your tax situation

VWCE: the most diversified ETF

Full name: Vanguard FTSE All-World UCITS ETF (accumulating). Ticker on Euronext: VWCE.

What it holds: ~3,700 stocks from developed and emerging markets worldwide. Geographic coverage: USA (~60%), Europe (~15%), Japan (~6%), emerging markets (~12%) and the rest.

Annual fee (TER): 0.22%. Type: accumulating (automatically reinvests dividends, no annual tax withholding).

Who it's for: investors who want maximum global diversification in a single product. The quintessential 'buy and forget' option. The main downside is that it includes emerging markets, which adds some volatility.

IWDA / CSPX: developed markets only and S&P 500 only

IWDA (iShares Core MSCI World UCITS ETF): ~1,500 companies from 23 developed countries. TER: 0.20%. No emerging markets. Historically it has outperformed VWCE because emerging markets have underperformed developed ones over the last decade.

CSPX (iShares Core S&P 500 UCITS ETF): the 500 largest American companies. TER: 0.07% — one of the lowest fees on the market. Historical average return: ~10% per year over the last 30 years. The risk is geographic concentration in the USA (~100%).

Many European investors use IWDA or CSPX as the core of their portfolio for their superior historical returns, accepting the lower degree of geographic diversification.

Bond ETFs for conservative profiles

If your profile is conservative or you want to balance equity volatility, bond ETFs are the standard complement:

AGGH (iShares Core Global Aggregate Bond): global government and corporate bonds. TER: 0.10%. Low volatility, moderate return.

EMIM (iShares Core MSCI EM IMI): to add emerging markets specifically without including them in your main ETF.

A classic portfolio for moderate profile: 80% IWDA + 20% AGGH. For conservative profile: 60% AGGH + 40% IWDA.

Accumulating vs. distributing: which to choose

Distributing ETFs pay dividends periodically. Each dividend received is taxable in the year it's received, whether you reinvest it or not.

Accumulating ETFs reinvest dividends internally. No distribution, no withholding, no tax until you sell. The long-term effect is significant: the deferred tax keeps working inside the fund for years.

For investors in accumulation phase (you don't need the income now), accumulating ETFs are almost always more tax-efficient. Distributing ones make sense only if you want periodic income — for example, in the withdrawal phase or when living off investments.

How to choose: the decision tree

Want maximum simplicity and diversification? → VWCE. One ETF covering the whole world.

Prefer developed markets with a slightly lower fee? → IWDA.

Believe in the American economy and want the minimum fee? → CSPX.

Conservative profile or over 50? → Combine equities (IWDA or VWCE) with fixed income (AGGH) in a ratio matching your risk tolerance.

What they all have in common: they're from large issuers (Vanguard, iShares/BlackRock), have high liquidity and have been operating for decades. Avoid ETFs from small issuers, with short track records or thematic ones (AI, metaverse, cannabis) — they add risk without proven compensation.