What are the top-performing ETFs so far this year?

Off the back of a record rally in the gold price earlier this year, ETFs with exposure to gold mining firms soared to the top of the leagues. Legal & General Gold Mining UCITS ETF (AUCP) came out on top, followed by HAN AuAg ESG Gold Mining UCITS ETF (ESGP) and VanEck Junior Gold Miners UCITS ETF A (GJGB) .

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[1] FE Fund Analytics, data correct as at 1 October 2025.

Why are ETFs great for diversifying your portfolio?

You can think of an ETF like a shopping basket. Rather than running around a supermarket holding all the individual things you want to buy in your arms, an ETF is like a basket already filled with a bunch of groceries, all in one easy-to-carry box. A single ETF can invest in a range of assets, from shares to bonds and even property, allowing you to get exposure to an array of different investments in just one product!

Do ETFs pay dividends?

Generally speaking, there are two ways that ETFs utilise dividends: reinvestment and payment. Some ETFs reinvest the income they receive from dividend payments by using it to purchase new assets, often the same share that paid out the dividend in the first place, in a process known as "dividend growth investing". The value of the ETF grows as the number of shares it owns increases, and this in turn increases the value of the shares of the ETF itself. Alternatively, an ETF can collate the dividends paid out by its underlying shares and distribute them directly back to the investors.

How many ETFs should you invest in?

First of all, remember that each ETF you own will likely invest in at least 20-30 stocks, and sometimes more. So if you hold 10 or more ETFs, you could have hundreds - or even thousands - of underlying shares in your portfolio. While it's important to invest in a range of products to diversify, you don't need to own dozens of ETFs to do this. In fact, a healthy 5-6 ETFs is plenty for the average investor, and will help you to keep a closer eye on the performance of each one if you're not losing track of how many you have!

What's the difference between an ETF and a mutual fund?

ETFs and mutual funds are similar investment vehicles. but the key difference boils down to how they're traded: ETFs trade on the stock market throughout the day, like traditional shares, whereas mutual funds are only traded once at the end of each day. In addition, the majority of ETFs are passive, whereas most mutual funds are actively-managed and therefore charge slightly higher fees.