The Best ETFs to Invest in With Admirals

July 29, 2021 10:10 UTC

Exchange-Traded Funds (ETFs) make investing in funds much more accessible to retail investors and, consequently, have grown enormously in popularity over the last decade. 

This increase in popularity has led to thousands of new ETFs springing up in recent years – meaning that, with so much choice – it can be difficult for investors to find the best ETFs. Much like stocks, there is an ETF out there to fit every type of investment strategy and, in this article, we have compiled a list of some of the best ETFs you can invest in with Admirals (formerly Admiral Markets) in 2021! 

What Is an ETF? 

ETFs are a type of fund which are traded throughout the trading day on stock exchanges, just like the shares of a company. This characteristic of being traded on stock exchanges makes investment in ETFs accessible to retail investors, who, these days, simply require an internet connection to begin investing in the best ETFs. 

Buying shares in an ETF represents an investment in a basket of securities which are usually picked in order to replicate an underlying asset, index, sector or economy. Therefore, ETFs provide instant diversification across a number of assets with a single investment. 

Unlike buying and holding shares in a company, there are ongoing management costs involved in holding an investment in an ETF, which are charged annually. These are typically expressed as a percentage of the total value of your investment and can vary depending on the type of ETF in which you are thinking of investing in. It is important to make sure you factor these costs in – together with brokers’ commissions - when you are choosing an ETF to invest in, as high costs can begin to eat in to any potential gains. 

As we mentioned earlier, ETFs are designed to track different underlying instruments. In the following sections, we will take a look at five different types of ETFs with examples of some of the best ETFs of each type, which you can invest in with Admirals!  

Remember that when looking for the best ETFs, as with any investment, it is important for you to do your own research and to only make investments which conform to your personal strategy and investing goals

Index ETFs 

One of the most popular types of ETFs are Index ETFs. These also tend to have some of the lowest management fees.

Index ETFs passively track stock indices by buying and holding shares in all the companies which make up their underlying stock index. Therefore, the best ETFs will be the ones which track the more successful stock indices. 

With popular benchmark indices - such as the S&P 500, the FTSE100 or the DAX30 – you will tend to find several different ETFs supplied by different providers. Because all of them will hold shares in the same companies, any difference in their performance will be marginal. Therefore, other factors such as reputation of the provider and management costs will help you determine which is the best ETF to invest in. 

The Vanguard S&P 500 UCITS ETF (VUSA) 

Ongoing Charge  Distribution Yield  1-Year Performance  3-Year Performance  5-Year Performance 
0.07% 1.14% 40.40%  65.44%  121.40% 

Source: Vanguard Investor – Data as of 30 June 2021. 

The S&P 500 is an index which consists of 500 of the largest companies in the US and is sometimes viewed as an indicator of how the US economy is performing. As the US economy is one of the largest in the world, this index is one of the most commonly followed stock indices and, historically, has recorded impressive returns.  

It should be of no surprise, therefore, that our list of best ETFs includes one which tracks this US index.  

Depicted: Admirals MetaTrader 5 - Vanguard S&P 500 UCITS ETF (VUSA) Weekly Chart. Date Range: 9 September 2018 – 21 July 2021. Date Captured: 21 July 2021. Past performance is not a reliable indicator of future results. 

iShares NASDAQ-100 UCITS ETF (EXXT) 

Ongoing Charge  Distribution Yield  1-Year Performance  3-Year Performance  5-Year Performance 
0.31%  0.21% 43.57% 108.98% 236.28%

Source: iShares – Yield Data as of 20 July 2021. Performance Data as of 30 June 2021. 

The Nasdaq-100 is a stock index which is made up of 100 of the largest non-financial companies listed on the USA’s Nasdaq stock exchange. Together with the S&P 500 it is considered one of the benchmark indices of the US economy. 

Again, this is a very popular index amongst traders and investors and its recent performance has been exceptional, which is why this Nasdaq-100 ETF earns a spot on our list of our best ETFs. However, it is important to note that this strong performance comes with higher risk. 

The Nasdaq-100 – and, therefore, the EXXT ETF – is predominantly made up of technology stocks which, as of 21 July 2021, account for 57% of the index. The rest of the index is split between seven different industries. This means that the ETF relies disproportionately on the technology sector performing well, which it absolutely has been in recent times, hence the strong positive results. However, any turbulence in that sector would have a heavy impact on the index and, therefore, this ETF. 

Depicted: Admirals MetaTrader 5 – iShares NASDAQ-100 UCITS ETF (EXXT) Weekly Chart. Date Range: 7 February 2010 – 21 July 2021. Date Captured: 21 July 2021. Past performance is not a reliable indicator of future results. 

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Bond ETFs 

Bond ETFs are ETFs which exclusively invest in a variety of bonds, allowing investors to easily gain exposure to the bond market through their broker. 

Bonds are a fixed income instrument, meaning that they regularly provide interest payments and, in bond ETFs, this payment is attributed to the ETF shareholders. Many bond ETFs will give you the option of either receiving or reinvesting these payments. 

Depending on the bond ETF in question, it may consist of government or corporate bonds. Some bond ETFs will focus on higher yielding, riskier bonds, whilst others will focus on lower yielding, safer bonds. 

Unlike equities, every bond has a maturity date after which time the original principal is repaid to the bond-holders and the bond ceases to exist. This means that the bonds held in a bond ETF are subject to constant change. 

One of the great things about ETFs is their high level of transparency. Fund holdings are updated at the end of each trading day and are accessible to anyone with an internet connection, meaning that investors can always keep track of an ETF’s current holdings. 

iShares Core Corp Bond UCITS ETF (SLXX) 

Ongoing Charge  Distribution Yield  1-Year Performance  3-Year Performance  5-Year Performance 
0.2%  2.10%  1.63%  16.47%  23.83% 

Source: iShares - Yield Data as of 20 July 2021. Performance Data as of 30 June 2021. 

This bond ETF consists of bonds from Europe, Australia and the US across a range of different sectors, the largest of which is banking which currently makes up around 28% of the portfolio. 

As we can see from the chart and the figures above, the ETF’s performance over the last few years has been decent, although last year was blighted by the coronavirus pandemic. As bonds are generally seen as income investments, one important figure is the distribution yield, which currently sits at 2.10%. 

Depicted: Admirals MetaTrader 5 – iShares Core Corp Bond UCITS ETF (SLXX) Weekly Chart. Date Range: 22 July 2018 – 21 July 2021. Date Captured: 21 July 2021. Past performance is not a reliable indicator of future results. 

iShares USD High Yield Corp Bond UCITS ETF (IHYU) 

Ongoing Charge  Distribution Yield  1-Year Performance  3-Year Performance  5-Year Performance 
0.5%  4.55%  13.50%  19.77%  35.08% 

Source: iShares –Yield Data as of 20 July 2021. Performance Data as of 30 June 2021. 

Unlike the previous bond ETF, this one specifically targets high yield – otherwise known as “sub investment grade” - corporate bonds across a variety of sectors, the vast majority of which are currently based in the US. 

We can note a much higher distribution yield than the previous ETF, however, with that higher yield also comes a significantly higher ongoing fee and the acceptance of a higher risk of default by each bond issuer. 

Depicted: Admirals MetaTrader 5 – iShares USD High Yield Corp Bond UCITS ETF (IHYU) Weekly Chart. Date Range: 16 September 2018 – 21 July 2021. Date Captured: 21 July 2021. Past performance is not a reliable indicator of future results. 

Dividend ETFs 

Dividend ETFs focus on selecting a portfolio of high dividend yielding stocks and, like bond ETFs, will appeal mostly to investors who are looking to earn a regular income from their investment. 

SPDR S&P Euro Dividend Aristocrats UCITS ETF (EUDV) 

Ongoing Charge  Distribution Yield  1-Year Performance  3-Year Performance  5-Year Performance 
0.3%  2.92%  18.60%  2.57%  6.09% 

Source: State Street Global Advisors - SPDR – Yield Data as of 20 July 2021. Performance Data as of 30 June 2021. 

The SPDR S&P Euro Dividend Aristocrats ETF is one of the best ETFs offered by Admirals for dividend stocks.  

This ETF tracks the performance of 40 of the highest dividend yielding stocks from the eurozone that are listed in the S&P Europe Broad Market Index. In order to qualify for selection in the fund, the companies must have followed a policy of increasing or maintaining dividend payments for at least ten years. 

Depicted: Admirals MetaTrader 5 – SPDR S&P Euro Dividend Aristocrats UCITS ETF (EUDV) Daily Chart. Date Range: 9 July 2018 – 21 July 2021. Date Captured: 21 July 2021. Past performance is not a reliable indicator of future results. 

Property ETFs 

For those feeling confident about the future of the property market, property ETFs present an interesting investment opportunity.  

Property ETFs, or real estate ETFs, focus on investing in companies which operate in the property sector and Real Estate Investment Trusts (REITs). 

iShares Developed Markets Property Yield UCITS ETF (IWDP) 

Ongoing Charge  Distribution Yield  1-Year Performance  3-Year Performance  5-Year Performance 
0.59%  2.31%  33.60%  20.32%  26.82% 

Source: iShares – Yield Data as of 20 July 2021. Performance Data as of 30 June 2021. 

The iShares Developed Market Property Yield ETF tracks an index which is made up of listed property companies and REITs from developed nations, excluding Greece. Components of the index must also meet certain dividend yield criteria, namely that they have a one year forecast dividend yield of 2%. 

This ETF can be a good option for investors who are looking to potentially profit from the property market whilst also receiving a regular income through dividend payments.  

It must be noted, however, that the annual charge for this ETF is significantly higher than other ETFs in our list. 

Depicted: Admirals MetaTrader 5 –iShares Developed Markets Property Yield UCITS ETF (IWDP) Weekly Chart. Date Range: 2 September 2018 – 21 July 2021. Date Captured: 21 July 2021. Past performance is not a reliable indicator of future results. 

Commodity ETFs 

Investing in commodities can be a great way for investors to diversify their portfolio and to hedge against inflation. Commodity ETFs help make investing in commodities more accessible to investors and some make it possible to gain exposure to more than one commodity through a single investment.  

iShares Gold Producers UCITS ETF (IAUP) 

Ongoing Charge  Distribution Yield  1-Year Performance  3-Year Performance  5-Year Performance 
0.55%  - -4.64%  59.82%  27.49% 

Source: iShares – Data as of 30 June 2021. 

The iShares Gold Producers ETF tracks an index which is composed of companies involved in the exploration and production of one of the world’s most sought after commodities, gold. 

This precious metal, is considered to be a “safe-haven” asset, meaning that it tends to maintain or rise in value during times of economic turbulence. Therefore, this particular ETF may appear particularly attractive during economic downturns. 

Unlike the other ETFs in our list, this fund does not currently pay a dividend. It also has a fairly high management fee. 

Depicted: Admirals MetaTrader 5 –iShares Gold Producers UCITS ETF (IAUP) Weekly Chart. Date Range: 2 September 2018 – 21 July 2021. Date Captured: 21 July 2021. Past performance is not a reliable indicator of future results. 

Investing in the Best ETFs For 2021 with Admirals 

If you are looking for somewhere to invest in the best ETFs, look no further than an Invest.MT5 account from Admirals!  

An Invest.MT5 account allows you to invest in over 200 ETFs from some of the world’s largest stock exchanges! In order to start investing in ETFs today, follow these steps: 

  1. Register for an Invest.MT5 account with Admirals 
  2. Download the MetaTrader 5 trading platform and log in 
  3. Press Control + U to bring up the Symbols window (shown below) and search for the ETF you wish to invest in. Once located, press ‘Show Symbol’ and then ‘OK’ 

Depicted: Admirals MetaTrader 5 - Symbols 

  1. Head to the Market Watch window on the left hand side of the screen, locate the symbol which you added in the previous step, right click on it and select ‘Chart Window’ in order to open a price chart 
  2. Select ‘New Order’ at the top of the screen to bring up an order window. Here you can select the amount of shares you wish to purchase in the ETF and, once ready, select ‘Buy’! 

Depicted: Admirals MetaTrader 5 – VUSA Daily Chart – New Order. Date Range: 16 December 2020 – 22 July 2021. Date Captured: 22 July 2021. Past performance is not a reliable indicator of future performance. 

Investing with Admirals 

As well as being able to invest in some of the best ETFs, with an Invest.MT5 account, investors can purchase over 4,300 different shares from 15 of the world’s largest stock exchanges! Other benefits of this account include: 

  • Free use of the world renowned MetaTrader 5 trading platform 
  • The ability to open an account with a minimum deposit of just €1 
  • Access to our Premium Analytics portal where you can find the latest technical insight and market news! 

Click the banner below in order to register for an account today: 

About Admirals  

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Roberto Rivero
Roberto Rivero Financial Writer, Admirals, London

Roberto spent 11 years designing trading and decision-making systems for traders and fund managers and a further 13 years at S&P, working with professional investors. He has a BSc in Economics and an MBA and has been an active investor since the mid-1990s