Jasmine Birtles
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The Best Growth ETFs for UK Investors in May 2025
Ruby Layram
12th May 2025
If you’re a UK investor looking to grow your money in 2025, growth ETFs could be well worth a look. They offer a simple, low-cost way to invest in the stock market, without the faff of picking individual shares. And, you don’t need to be a financial expert to get started.
In this article, we’ll explain what growth ETFs are, whether they’re a good investment right now, and round up some of the best-performing options for UK investors in 2025.
What Are Growth ETFs?
Growth ETFs (exchange-traded funds) are funds that track groups of companies expected to grow faster than average. These might be big, established firms in booming sectors like tech, or smaller, innovative businesses in emerging markets.
Unlike income ETFs (which focus on paying dividends), growth ETFs reinvest profits to help your investment grow over time. They’re great for long-term investors who don’t need to draw an income straight away and want to see their portfolio build over several years.
They trade like shares, are typically low-cost, and offer instant diversification, meaning you can spread your risk across hundreds of companies in one go.
Are Growth ETFs a Good Investment in 2025?
With inflation cooling, interest rates potentially coming down, and global markets showing cautious optimism, 2025 is shaping up to be a promising year for growth investing.
That said, growth ETFs do come with some volatility, especially if you’re investing in sector-specific ones like tech or blockchain. The key is to make sure you’re balancing your risk (we’ve got more on that here) and choosing ETFs that align with your long-term goals.
If you’re happy to ride out the ups and downs, and you’re investing for 5+ years, growth ETFs could be a strong addition to your portfolio.
Top Growth ETFs for UK Investors in 2025
Now, let’s take a look at the best growth stocks to buy for UK investors in 2025.
1. Vanguard S&P 500 UCITS ETF (LSE: VUSA)
This ETF tracks the S&P 500 Index, which means it gives you exposure to 500 of the biggest companies in the United States- from household names like Apple and Amazon to the rest of the corporate heavyweights.
Over the past year, it delivered a return of 4.8%, and its three-year return stands at an impressive 30.1%. It’s a solid all-rounder with low fees and broad diversification, making it a brilliant core holding for any growth-focused portfolio.
2. Invesco EQQQ NASDAQ-100 UCITS ETF (LSE: EQQQ)
The Invesco EQQQ focuses on non-financial giants in the U.S. tech space. It returned 3.5% over the past year and 33.9% over three years.
This ETF is ideal for investors who want to lean into the tech sector without the hassle of picking individual stocks. If you’re optimistic about the future of tech, this could be one to consider.
3. Vanguard FTSE All-World UCITS ETF (LSE: VWRL)
VWRL gives you broad global exposure by covering developed and emerging markets across more than 3,000 companies. Its one-year return is 5.2%, and its three-year return sits at 24.9%. This ETF is perfect for anyone who wants to reduce their home bias and invest across the globe in one simple move.
4. iShares Core MSCI World UCITS ETF (LSE: SWDA)
This fund tracks large and mid-sized companies in 23 developed countries, offering comprehensive exposure to the world’s most stable economies.
With a one-year return of 4.7% and a three-year return of 27.1%, it’s a low-cost, well-diversified ETF that works beautifully as a long-term hold in any growth strategy.
5. VanEck Crypto & Blockchain Innovators UCITS ETF (LSE: DAPP)
DAPP focuses on companies at the cutting edge of the cryptocurrency and blockchain space. It delivered a strong April return of 10.67% and a 12-month return of 12.28%. This is a high-risk, high-reward option for investors who believe in the long-term potential of crypto-related technology. Definitely one for the bold.
6. VanEck Defense UCITS ETF (LSE: DFNS)
DFNS invests in defence, aerospace, and military technology firms- an industry that’s seen strong growth in light of ongoing geopolitical tensions. The one-year return is an eye-catching 55.97%. If you’re looking to benefit from a booming sector driven by global demand, this ETF could offer serious upside.
How to Invest in Growth ETFs
Investing in growth ETFs is actually much simpler than you might think. You don’t need to be glued to a Bloomberg terminal or buried in spreadsheets- you just need the right platform and a plan.
Step 1: Choose a Platform
First up, you’ll need an investment platform or brokerage account. In the UK, popular options include Invest Engine, Interactive Investor, Hargreaves Lansdown, Vanguard and Freetrade. Some are better for regular investing, while others are ideal if you’re buying and holding.
Look for one with low fees and easy-to-use features.
Step 2: Open a Stocks and Shares ISA (if you haven’t already)
If you’re a UK resident and haven’t maxed out your ISA allowance, it’s usually smart to invest through a Stocks and Shares ISA. It means your gains and dividends are tax-free- which is a lovely little bonus.
Step 3: Pick Your Growth ETF(s)
Next, decide which growth ETFs suit your goals and risk appetite. Want global exposure? Go for something like Vanguard FTSE All-World (VWRL). Keen on tech? Invesco EQQQ might be more your style. You can mix and match too. Just be mindful of diversification.
Step 4: Decide How Much to Invest
You don’t need thousands to get started. Most ETFs let you invest with small amounts, and many platforms support fractional investing.
You can either invest a lump sum or set up a monthly direct debit to drip-feed money in- which is a great way to smooth out market bumps.
Step 5: Hit ‘Buy’ and Let It Grow
Once you’ve chosen your ETF and amount, simply place the order. After that, it’s a waiting game.
Growth ETFs tend to perform best over the long term, so try not to panic when markets wobble. Stick to your plan and let compounding do its thing.
Growth ETFs offer a brilliant way for UK investors to access global markets, tap into exciting sectors, and grow their money over time. Whether you go broad with an ETF like VUSA or add a spicy pick like DAPP, there’s something to suit most risk levels.
As always, do your own research and make sure your choices match your financial goals. And if you’re unsure, speak to a financial adviser before taking the plunge.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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