Exchange-traded funds, or ETFs, are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices in an attempt to beat the market. The best ones serve as building blocks for a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In 2024, the top-performing ETFs included equity technology funds Amundi MSCI Semiconductors ESG Screened CHIP and VanEck Video Gaming and eSports ESPO. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
To find the year’s best-performing ETFs, we screened those in Morningstar’s equity, allocation, or fixed-income categories that are available in the UK. We excluded exchange-traded notes, known as ETNs, and ETFs with less than $25 million (£20.0 million) in total assets. We also excluded funds that fall into Morningstar’s “trading” categories, as these funds are designed for active traders and are not suitable for long-term investors.
Within our list, two funds fell into the equity communications category, where the average name rose 22.65% in 2024.
The 10 Best-Performing ETFs for 2024
1. Amundi MSCI Semiconductors ESG Screened UCITS ETF CHIP
2. VanEck Video Gaming and eSports UCITS ETF ESPO
3. VanEck Defense ETF DFNS
4. VanEck Crypto & Blockchain Innovators UCITS ETF DAPP
5. VanEck Space Innovators UCITS ETF JEDI
6. WisdomTree Blockchain UCITS ETF WBLK
7. L&G Global Brands UCITS ETF LABL
8. Invesco Technology S&P US Select Sector UCITS ETF XLKS
9. iShares S&P 500 Communication Sector UCITS ETF USD Acc IUCM
10. Invesco Communications S&P US Select Sector UCITS ETF XLCS
Best-Performing ETFs Available in the UK
Source: Morningstar Direct.
Metrics for the Best-Performing ETFs
Amundi MSCI Semiconductors ESG Screened UCITS ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The £630 million Amundi MSCI Semiconductors ESG Screened was the best-performing ETF in 2024, with a 58.90% return. The passively managed Amundi ETF beat the 21.82% gain on the average fund in Morningstar’s equity technology category for the year. Over the last three years, Amundi MSCI Semiconductors ESG Screened has returned 23.72%, outperforming the 3.97% gain on the average fund in its category, leaving the ETF in the 1st percentile.
Amundi MSCI Semiconductors ESG Screened takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Bronze.
VanEck Video Gaming and eSports UCITS ETF
• Morningstar Rating: ★★★★
• Expense Ratio: 0.55%
• Morningstar Category: Equity Technology
The second-best performing ETF in 2024 was the £499 million VanEck Video Gaming and eSports. The passively managed VanEck ETF returned 51.26%, outperforming the average equity technology fund, which gained 21.82%. Looking back over the last three years, VanEck Video Gaming and eSports has returned 11.74%, outperforming the 3.97% return on the average fund in its category, leaving the ETF in the 15th percentile.
The Bronze-rated VanEck Video Gaming and eSports was launched in June 2019.
VanEck Defense ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.55%
• Morningstar Category: Equity Industrial Materials
The £1 billion VanEck Defense ranked third for the year, returning 46.11%. The VanEck ETF, which is passively managed, topped the 7.16% average return on funds in the equity industrial materials category for 2024. The fund was first launched in March 2023, and as a result, it does not have a three-year track record.
VanEck Defense has a Negative Morningstar Medalist Rating, meaning that our analysts expect it to be one of the worst performers within its category and think it is unlikely to deliver positive returns after fees.
VanEck Crypto & Blockchain Innovators UCITS ETF
• Morningstar Rating: ★
• Expense Ratio: 0.65%
• Morningstar Category: Equity Technology
With a 46.02% return, the £274 million VanEck Crypto & Blockchain Innovators ranked fourth in 2024. The passively managed VanEck ETF outperformed the 21.82% return on the average equity technology fund. Over the last three years, the fund has dropped 6.20%, behind the 3.97% return on funds in its category, placing it in the 93rd percentile for the period.
VanEck Crypto & Blockchain Innovators has a Bronze Morningstar Medalist Rating. It was launched in April 2021.
VanEck Space Innovators UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.55%
• Morningstar Category: Equity Industrial Materials
The fifth-best performing ETF was the £42 million VanEck Space Innovators, which gained 44.81% in 2024. This passively managed VanEck ETF beat the 7.16% average return on funds in the equity industrial materials category. The fund was first launched in June 2022, and as a result, it does not have a three-year track record.
VanEck Space Innovators has a Morningstar Medalist Rating of Negative.
WisdomTree Blockchain UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.45%
• Morningstar Category: Equity Technology
The £25 million WisdomTree Blockchain was the sixth-best performing UK ETF in 2024, with a 44.53% return. The return on the passively managed WisdomTree ETF topped the 21.82% gain on the average fund in Morningstar’s equity technology category. The fund was first launched in September 2022, and as a result, does not have a three-year track record.
WisdomTree Blockchain has a Morningstar Medalist Rating of Bronze.
L&G Global Brands UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.39%
• Morningstar Category: Equity Consumer Goods & Services
The seventh-best performing ETF in 2024 was the £38 million L&G Global Brands. The passively managed Legal & General ETF returned 43.06%, outperforming the average equity consumer goods & services fund, which gained 9.79%. The fund was first launched in September 2023, and as a result, it does not have a three-year track record.
L&G Global Brands has a Morningstar Medalist Rating of Bronze.
Invesco Technology S&P US Select Sector UCITS ETF
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.14%
• Morningstar Category: Equity Technology
The £1.1 billion Invesco Technology S&P US Select Sector ranked eighth for the year, returning 42.58%. The Invesco ETF, which is passively managed, topped the 21.82% average gain on funds in the equity technology category. Over the last three years, the Invesco ETF has returned 19.93%, ahead of the 3.97% return on the average fund in its category, leaving it in the 2nd percentile for performance.
The Bronze-rated Invesco Technology S&P US Select Sector was launched in December 2009.
iShares S&P 500 Communication Sector UCITS ETF USD Acc
• Morningstar Rating: ★★★★★
• Expense Ratio: 0.15%
• Morningstar Category: Equity Communications
With a 40.87% gain, the £341 million iShares S&P 500 Communication Sector UCITS ETF USD Acc ranked ninth in 2024. The passively managed iShares ETF outperformed the 22.65% return on the average equity communications fund. Over the last three years, the fund has returned 11.76%, ahead of the 6.58% return on funds in its category, placing it in the 1st percentile.
iShares S&P 500 Communication Sector, launched in September 2018, has a Morningstar Medalist Rating of Bronze.
Invesco Communications S&P US Select Sector UCITS ETF
• Morningstar Rating: ★★★★
• Expense Ratio: 0.14%
• Morningstar Category: Equity Communications
The tenth-best performing ETF was the £142 million Invesco Communications S&P US Select Sector, which gained 40.12% in 2024. The passively managed Invesco ETF beat the 22.65% average return on funds in the equity communications category. Over the past three years, Invesco Communications S&P US Select Sector rose 11.14%, outperforming the 6.58% return on the average fund in its category and placing it in the 6th percentile.
Invesco Communications S&P US Select Sector has a Morningstar Medalist Rating of Bronze. It was launched in September 2018.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.
The Best ETFs: More Ideas to Consider
Investors who would like to find more of the top-performing or cheapest ETFs can do the following:
• Read the latest articles on ETFs.
• Use the ETF screener to find the best ETFs according to your specific criteria. You can search for funds based on their fees, Morningstar Medalist Ratings, manager tenures, and more.
• Compare funds and ETFs side by side and easily follow their valuations, ratings, and fees.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
