The start of a new year often brings a mix of resolutions and predictions. For the world of asset management, one thing is clear: low-cost passive strategies are here to stay. By Matteo Anelli, Deputy Editor, Trustnet
The data is in, and it’s no surprise that iShares has taken the top spot as the most represented fund house on the UK’s major best-buy lists in 2025. With 21 recommended funds, the firm has solidified its position as the go-to choice for investors looking for low-cost, highly liquid index trackers. But what does this mean for the industry, and which other fund managers have made the cut?
## Passive Powerhouses Take the Lead
iShares’ dominance is hardly surprising, given its extensive range of exchange-traded funds (ETFs). These funds offer investors a low-cost way to gain exposure to mainstream equity and bond indices. The iShares Core MSCI EM IMI UCITS ETF, for example, has assets of £24.4bn and an ongoing charge figure (OCF) of 0.18%. This means that investors can get access to emerging markets equities without breaking the bank. The same can be said for the iShares Core S&P 500 UCITS ETF, which has assets of £15.1bn and an OCF of 0.07%.
The breadth of iShares’ representation on best-buy lists reflects the growing importance of low-cost, highly liquid index trackers in portfolio construction. These funds are designed to be core building blocks for investors’ portfolios, providing broad market exposure at a low cost. It’s no wonder, then, that they’re in high demand.
## Vanguard Closes the Gap
Vanguard ranks a close second, with 15 recommended funds. Like iShares, its presence is driven primarily by its passive offering. Vanguard’s flagship S&P 500 UCITS ETF, for example, has assets of £59.0bn and a charge of 0.07%. This fund is a popular choice among investors looking for a low-cost way to gain exposure to the US market. The Vanguard Global Small-Cap Index fund, which was added by interactive investor and also appeared on Fidelity’s Select 50, is another notable addition to the lineup. This fund has £4.6bn in assets and an OCF of 0.29%, offering exposure to smaller companies globally.
## Fidelity Blends Passive and Active Strategies
Fidelity takes third place with 14 recommended funds, standing out for combining index trackers with actively managed strategies. On the passive side, Fidelity Index World, which has £13.9bn in assets and an OCF of 0.12%, was recommended by Hargreaves Lansdown, AJ Bell, and Barclays. This fund is one of the most widely backed global equity trackers across platforms. Fidelity also features strongly for its active funds, however. Fidelity European, with assets of around £4bn and an OCF of 0.91%, was recommended by interactive investor, while Fidelity Special Situations, also a £4bn strategy with a 0.91% charge, appeared on the best-buy lists of Hargreaves Lansdown, AJ Bell, and Fidelity itself.
## Other Fund Managers Make the Cut
Outside the top three, Legal & General Investment Management (L&G) had 13 recommended funds, placing it just behind Fidelity. L&G was recognised for its passive expertise, particularly in UK equities and fixed income. Among its recommended funds were the L&G All Stocks Gilt Index Trust, which has £2.7bn in assets and a 0.15% OCF, and the L&G Emerging Markets Government Bond (US$) Index fund.
Artemis takes the top spot among purely active managers, with nine recommended funds. These include strategies across equities and bonds, such as Artemis Corporate Bond and Artemis Income. JPMorgan Asset Management follows close behind, with nine recommended funds, including strategies such as JPM Global Bond Opportunities and JPM Global Equity Income. Schroders and Invesco round out the list, each with eight and seven recommended funds, respectively.
The data is clear: passive strategies are dominating the best-buy lists, but active managers are still making their mark. Whether you’re looking for low-cost index trackers or actively managed funds, there’s something for everyone in this lineup.
