Best SPDR ETF UK – Compare Top ETFs 2021

SPDR ETFs, or Standard & Poor’s Depositary Receipts, are a great way to gain exposure to a variety of sectors and markets while still benefiting from everything that ETFs (Exchange Traded Funds) have to offer. Today, we will recommend some of the best SPDR ETFs for UK investors for you to choose from. Pick the one you like most and invest now.

Best SPDR ETF UK 2021 List

In order to offer investors the best options, we came up with a list of the Best SPDR ETF UK, with all of the listed products being very easy to reach and highly sought-after among market participants.

  1. SPDR S&P 500 ETF Trust (SPY) — Warren Buffett’s Favorite ETF – Invest Now
  2. SPDR Bloomberg Barclays 1-3 Month T-Bill ETF — Low interest rate risk ETF – Invest Now
  3. SPDR Dow Jones Industrial Average (DIA) — A small ETF tracking big firms – Invest Now
  4. SPDR Gold Trust (GLD) — An ETF for gold bugs
  5. Energy Select Sector SPDR (XLE) — A commodity-tracking ETF
  6. SPDR Bloomberg Barclays High Yield Bond ETF (JNK) — A highly-reliable and stable ETF
  7. SPDR S&P Biotech ETF (XBI) — Among the best SPDR ETFs UK
  8. Technology Select Sector SPDR Fund (XLK) — The best tech and telecom ETF
  9. Financial Select Sector SPDR Fund (XLF) — The best financial services-tracking ETF available
  10. Consumer Discretionary Select Sector SPDR Fund (XLY) — A multi-decade ETF that can survive anything

Best SPDR ETFs UK Reviewed

1. SPDR S&P 500 ETF Trust (SPY) — Warren Buffett’s Favorite ETF

The SPDR S&P 500 Trust ETF, or SPY ETF for short, is among the most popular funds out there. It was said to be the personal favorite of legendary investor, Warren Buffett. This the best ETF we recommend as it aims to track the Standard & Poor Index, which consists of 500 mid- and large-cap stocks, which are selected by a committee depending on different factors, such as liquidity, industry, market size, and alike.

SPDR S&P 500 ETF Trust (SPY

SPY ETF has been performing exceptionally well over the last 12 months, going from $250 on March 25th to nearly $400 about a week ago, making it one of the best S&P 500 ETFs to invest in. At the time of writing, it has corrected slightly, although this still seems like its typical fluctuations, and nothing to be concerned about.

Your capital is at risk.

2. SPDR Bloomberg Barclays 1-3 Month T-Bill ETF — Low interest rate risk ETF

SPDR Bloomberg Barclays 1.3 Month T-Bill ETF, or BIL, is an ETF that tracks a market-weighted index of all publicly-issued, zero-coupon US Treasury bills with a maturity between one and three months. BIL takes an extremely short-term take on the Treasury, which is still rather valid, although it disagrees with how many others view the space. But, its approach results in less interest rate risk, while also offering lower yields. This can be risky, as the costs may sometimes even exceed the yields, so it definitely isn’t for everyone. But, as always, when there is profit to be made, there are those trying to make it.

SPDR Bloomberg Barclays

The ETF has certainly performed rather well on a YTD chart, and while it has corrected since its YTD high, reached in early March — it does seem to be growing again right now, at the time of writing (March 25th).

Your capital is at risk.

3. SPDR Dow Jones Industrial Average ETF (DIA) — A small ETF tracking big firms

Up next, we have SPDR Dow Jones Industrial Average ETF, trading under the ticker DIA: This is an ETF for those who wish to replicate or invest in the Dow Jones performance, which tracks the stocks of some of the largest firms. This fund is not extremely diversified, unlike most other ETFs, and it holds only 31 stocks, as opposed to 500 that we have seen with SPY. However, these stocks belong to strong and powerful firms, which makes DIA quite reliable.

SPDR Dow Jones Industrial Average ETF

The proof is its ever-growing price, which started an immediate recovery after the March 2020 stock crash caused by COVID-19 fears. Back then, DIA was trading at only $210. These days, it sits at $324, which makes it a great long-term investment.

Your capital is at risk.

4. SPDR Gold Trust (GLD) — An ETF for gold bugs

In the fourth spot, we have SPDR Gold Trust ETF (GLD), which is another very popular choice that tracks spot prices of gold. As such, it comes with less expenses and liabilities, using gold bars held in London vaults.

The ETF’s structure has reduced the difficulty of buying, storing, and insuring gold for investors by allowing them to invest in a product that behaves exactly like gold, but isn’t gold. This makes it a favourite among gold ETF enthusiasts.

SPDR Gold Trust ETF (GLD)

As for its price it seems to be experiencing a bit of a hiccup on a YTD chart, but the 5-year chart shows that the price is still much higher than it was 5, 4,3, or even 2 years ago. In fact, gold reached its highest price in over a decade and a half during 2020, when the COVID-19 pandemic was at its worst.

Your capital is at risk.

5. Energy Select Sector SPDR (XLE) — A commodity-tracking ETF

Next, there is XLE, also known as Energy Select Sector SPDR ETF, which is a high-yield exchange-traded fund that seeks to provide investment results that correspond to the price and yield performance of the Energy Select Sector Index, before expenses, of course. The Index itself seeks to provide a representation of the energy sector of the S&P 500 index.

Energy Select Sector SPDR ETF

The ETF’s goal is to provide exposure to firms in gas, oil, and similar consumable fuel, as well as energy services and energy equipment industries. By investing in it, investors can take strategic positions at a more targeted level.

Price-wise, the ETF is doing rather well, is currently experiencing a small correction after reaching a yearly high. It suffered greatly when the COVID-19 pandemic emerged, but it has since recovered rather well.

Your capital is at risk.

6. SPDR Bloomberg Barclays High Yield Bond ETF (JNK) — A highly-reliable and stable ETF

In the sixth spot, we have SPDR Bloomberg Barclays High Yield Bond ETF, trading under JNK. We classified it as one of the best SPDR ETFs for UK investors for a reason, as the ETF saw a major price crash last March when prices dropped due to coronavirus, only to make a full recovery and return to its previous levels before 2020 even ended, which is more than can be said for most ETFs.

SPDR Bloomberg Barclays High Yield Bond ETF

If we take a look at its 5-year chart, we can see that the COVID-19 drop was nothing more than a hiccup and that the ETF is as stable as it has ever been in the last half a decade, making it a top pick for the best high yield ETF UK.

Your capital is at risk.

7. SPDR S&P Biotech ETF (XBI) — Among the best SPDR ETFs UK

Next, we have SPDR S&P Biotech ETF, trading under the ticker XBI. This ETF recently reached its all-time high at $174, and since then, it has seen a correction to $131. Still, this shows that it has the potential to go very high up. If it did it once, it can do it again, under the right conditions, so it is worth keeping an eye on.

SPDR S&P Biotech ETF

Besides, even after this correction, it is still very high, given its 15-year performance.

The ETF seeks to track a modified equal-weighted index, which provides the potential for unconcentrated industry exposure across small-cap, mid-cap, as well as large-cap stocks. Essentially, it allows investors to take tactical positions at a targeted level than traditional sector investing allows.

Your capital is at risk.

8. Technology Select Sector SPDR Fund (XLK) — The best tech and telecom ETF

Technology Select Sector SPDR ETF, also known as XLK, is an ETF that tries to reflect the performance of the Technology Select Sector Index. The index is comprised of the tech and telecom sector of the S&P 500, meaning that it tracks the stocks of firms that offer tech hardware, peripherals, storage, software, and more. It also focuses on firms offering diversified telecom services, communications equipment, internet software, IT services, semiconductors and related equipment, and alike.

Technology Select Sector SPDR ETFPrice-wise, this ETF has been performing excellently over the last year, and as such, it was a very good investment for those who opted to go for it after the crash of March 2020. In fact, it reached its all-time high on February 12th, 2021, But, it is also worth noting that it has been growing steadily since 2009 and that there is no reason for this to stop, especially since the sectors it keeps track of are exploding.

Your capital is at risk.

9. Financial Select Sector SPDR Fund (XLF) — The best financial services-tracking ETF available

XLF is a fund that comprises firms included in the Select Sector Index. It aims to provide investors with exposure to companies related to financial services of any kind, including banks, capital markets, insurance firms, mortgage REITs, consumer finance, and more.

Select Sector Index

This is a very old ETF that has been around since the late 90s, and it has had two major hiccups over the last 23 years. The first one was in 2008, during the economic crisis that ended up giving birth to the cryptocurrency sector. The second one took place last year in March. However, the fund did not only recover from both — it actually reached its all-time high only about a week ago, on March 18th, 2021. In other words, this is easily one of the best SPDR ETFs that you can invest since this sector only goes down when the economy itself is at stake.

Your capital is at risk.

10. Consumer Discretionary Select Sector SPDR Fund (XLY) — A multi-decade ETF that can survive anything

The last on our list is XLY — Consumer Discretionary Select Sector SPDR Fund. This is another sector that has skyrocketed since the economic crisis of 2009, and it found its all-time high in early February of this year. It is worth noting that the sector has been around since 1998, so hitting an ATH only a month and a half ago clearly indicates that the fund is performing better than ever.

Consumer Discretionary Select Sector SPDR Fund

This is a fund that tracks assets from companies like Amazon, Tesla, Home Depot, McDonald’s, and other corporational giants, and as such, it is highly unlikely that you will go wrong by choosing this one.

Your capital is at risk.

Are SPDR ETFs a Good Investment?

Yes, as mentioned SPDR themselves are a great way to get exposure to many different markets, while SPDR ETFs are an excellent way to use the benefits of exchange-traded funds, simultaneously. In fact, SPDRs are said to have pioneered ETFs with SPY and have an extremely long track record in the industry.

There is risk involved, naturally, as is always the case when investing and/or trading is involved. However, educating yourself on how to invest properly and learning how, when, and why to make a move will generally result in a positive outcome.

Best SPDR ETF UK Investment Platforms 2021

There are numerous stock brokers and investment apps that allow for an easy way to access the best SPDR ETFs and invest, although it still matters which one you choose. Not all of these platforms are equally good, with some having larger or lower fees, some offer greater selections of SPDR ETFs to choose from than others, and alike. But, in order to help you save some time and spare you searching for good platforms, we did the search for you. That way, you can focus more on studying the best SPDR ETFs UK, and less on where to get them.

The platforms we would like to present you with are eToro and Capital.com, which we will now briefly review to help you understand why these two stands above most others, and why we chose them.

1. eToro – Overall Best Broker to Invest in SPDR ETFs UK

Best biotech stocks UK available on eToroThe first of the two platforms we can recommend is eToro. eToro offers a wide variety of features that have attracted over 17 million users to its platform. The platform is also fully regulatory-compliant, and it got FCA’s approval.

In essence, eToro functions as a brokerage website that is best-known for a wide variety of trading instruments, but also for being extremely easy to use. It is an excellent choice even for new investors and traders, who have no experience with complex tools and functions but are still interested in learning about them.

To encourage this, eToro even offers social trading, which is a mechanics where traders get to seek out professionals within the platform and keep track of their activities. eToro lets you see who invested into what, how much money they make, and alike. Furthermore, it also supports copy-trading, where you can just copy the professionals’ trading moves in order to achieve similar results. As a result, traders can not only earn money but also learn how to handle different situations and what is the best course of action when the market makes an unexpected move. It is always easier and a lot less expensive to see how a professional handles a situation than to have to figure it out on your own, especially since taking action is often something that needs to be done immediately, and there is not a lot of time to think about things.

eToro SPDR ETF

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eToro is also a popular choice to buy shares due to the minimum ETF investments being only $50. There are many platforms that are meant for experts and institutions, where minimum investments are measured in hundreds, or even thousands of dollars. A regular person wishing to try out ETFs can’t afford that. This is why the fact that eToro asks for such a low minimum is a great thing. Especially since the platform has zero-commission stocks and ETFs, so you don’t have to pay massive fees, either.

Lastly, eToro is also very customizable, and it is very easy to make your own watchlist and keep track of assets and investment instruments at any time. They can all be instantly reached with one click, no matter where on the platform you find yourself at any given time.

Pros:

  • eToro is very simple to use
  • The platform accepts a variety of payment methods, including credit cards, debit cards, and PayPal
  • It offers social trading and copy-trading
  • It offers commission-free stocks and ETFs
  • There are many different assets to choose from, including ETFs, stocks, forex, commodities, digital currencies, and more
  • It is licensed by FCA
  • It is very secure and trustworthy

Cons:

  • There are no ISAs or SIPPs
  • eToro doesn’t have advanced tools, which might not make it the best choice for advanced users

67% of retail investors lose money trading CFDs at this site

2. Capital.com – CFD Broker with AI Platform technology

The second platform that we wanted to recommend is Capital.com. Now, Capital.com is a great choice for those who wish to trade SPDR ETFs, although not in the same way as eToro. Where eToro offers exposure to SPDR ETFs themselves, Capital.com is solely a CFD trading platform. In other words, you don’t actually invest in assets and become their owner. Instead, you can bet on their price performance in the future.

This can be quite good, depending on what you want, and what happens to the market. Basically, if you expect that the price of the best SPDR ETF UK will go up, you can invest in it directly on eToro, or you can bet that the price will go up. But, if you expect it to go down, then buying them on eToro doesn’t make much sense — you will just lose money. That’s where Capital.com comes in, allowing you to bet that the price will drop. If it does, you still get the money because you guessed correctly.

Capital.com SPDR ETF

That’s the trick about derivatives trading — forecasts are everything, and the more accurate you are, the more you stand to gain. Of course, if you get it wrong, you will lose money, so derivatives trading is by no means risk-free. Especially if you trade with leverage, which is also available on Capital.com.

Basically, the platform allows you to borrow money and invest more than what you could afford with your own account balance. But, with the higher leverage, your room for making a mistake shrinks, and the risks go up.

Another big advantage is that the minimum deposit is even lower than the one on eToro — only 20 GBP, which is something that pretty much anyone can afford in order to start. You won’t make large profits with this kind of money, but it is good for novices to start practicing trading and not lose much money along the way.

Pros:

  • com is very user-friendly
  • It offers minimal deposits of only 20 GBP
  • It has a tight spread
  • It has good analysis tools
  • It offers trading with leverage
  • It doesn’t charge trading fees
  • It offers CFD trading which lets you earn even during bearish periods

Cons:

  • It only offers CFDs
  • It does not allow you to create custom trading strategies

71.2% of retail investors lose money trading CFDs at this site

How to Buy the Best SPDR ETFs UK

Before we finish this guide to buying the best SPDR ETFs UK, we should also explain how to actually buy them, and to do it, we will use the eToro platform. The process is extremely simple, here is a very short step-by-step guide that will remove any doubts and/or confusion you may encounter along the way.

Step 1: Open an account and verify your identity

The first thing to do is to go to eToro and register. The process is simple and you can either create a new account or register via Google and Facebook.

Go to eToro website

67% of retail investors lose money trading CFDs at this site

After that, you will also have to verify your identity. This step is mandatory for anyone who wishes to trade deposits and trade large amounts that go beyond $2,250. If you are only interested in smaller trades, then you don’t have to do it, although it would be good to prove that you are who you are regardless.

The process is very simple, and all you really need to do is upload photos of your passport and/or utility bill, to prove that you live at the provided address and that no one has assumed your identity.

Step 2: Make a deposit

Once your account is set up, the next step will be to get it funded. This will be your initial investment, and if you are successful at trading, it might be the last money you will have to deposit to the platform. You can choose any amount as long as it is higher than $50, and lower than $2,250 if you opted not to get verified.

As mentioned before, eToro accepts different ways of depositing money, such as:

  • Debit card
  • Credit card
  • Bank transfer
  • Skrill
  • PayPal

So just pick whatever method suits you best.

Step 3: Search for SPDR ETF of your choice

The third step will be to find the asset you are looking for. The easiest way to do that is to just type in the asset’s name into the search bar, or just type “SPDR”, and you will see all available SPDRs listed.

Search for SPDR ETF

67% of retail investors lose money trading CFDs at this site

You could do a manual search by looking at all ETFs that eToro has to offer, although this might only be useful for those who are not quite sure what to invest in, and would rather choose from assets available on the platform.

Step 4: Place your order

The last step is to enter your stake and place your order. Simply go to your chosen ETF, click on ‘Trade’ button, and choose your figures. That’s it.

Conclusion

SPDR ETFs are a great way for UK investors and traders to gain exposure to a variety of markets, and at the same time, enjoy all the benefits that SPDR and ETF trading bring, combined. Meanwhile, eToro itself is one of the best platforms for reaching these, and many other ETFs, as the platform is rich with different assets and trading instruments. So, if this interests you, go to eToro, invest now, and use every opportunity to increase your wealth. However, be warned that trading still comes at a risk and that you shouldn’t go in blind. Always study the market, analyze the prices, create forecasts, and make sure that you know what you are doing.

Invest in the Best SPDR ETF UK – 0% Commission
Best biotech stocks UK available on eToro

67% of retail investors lose money trading CFDs at this site

FAQs

Which SPDR ETF UK is the best?

There is no definitive way to say which SPDR ETF is the best one. There are some that are more popular, such as SPY and GLD, but overall, it all depends on a variety of factors that you should look into before putting your money on the line.

Are SPDR ETFs good?

Yes, they offer good opportunities due to great market and sector diversity, so they do offer many opportunities to get some extra money your way.

Are SPDR ETFs good for beginners?

Yes! In fact, ETFs, in general, are ideal for beginners due to their many benefits, including great liquidity, low expense ratios, diversification, low investment threshold, and alike.

Should I buy SPY ETF?

SPY ETFs are a good choice for long-term investors, as it is very diversified, and as such, it is a great ‘set it and forget it’ option.

Which SPDR does Warren Buffett recommend?

Warren Buffett, the legendary trader, seems to be a great fan of SPY, but GLD has also found its way into his top 5 SPDR ETFs, so it might be a good alternative.

About aliraza PRO INVESTOR

A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications e.g. Insidebitcoins.com, Cryptovibes.com, LearnBonds.com, Bitcoinist, and NewsBTC.

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