The 4 Best FTSE 250 ETFs to Buy

The FTSE 250 offers investors exposure to many of the UK’s fastest-growing companies, making it a popular way to invest beyond the blue-chip FTSE 100. Investors looking to tap into the UK mid-cap market can do so through a range of exchange-traded funds that track the index.

What Are FTSE 250 UK Mid-Cap Equity Funds?

UK mid-cap equity funds invest principally in UK mid-cap equities. At least 75% of total assets are invested in equities and at least 75% of equity assets are invested in UK equities.

The 4 Best FTSE 250 ETFs to Buy

To find the best UK mid-cap equity ETFs to buy, we screened for those earning a

of Bronze, Silver, or Gold. All the ETFs on the list fall into the UK mid-cap equity and have at least £0 million in assets. All data is as of July 28.

1. HSBC FTSE 250 UCITS ETF HMCX
2. Xtrackers FTSE 250 UCITS ETF XMCX
3. Invesco FTSE 250 UCITS ETF S250
4. Vanguard FTSE 250 UCITS ETF VMID

Morningstar expects the highly rated UK mid-cap equity funds on this list to outperform their peers over a full market cycle. But even though all the funds on our list fall into the same category, they may practice different strategies, and therefore behave differently from each other. Investors need to do some homework to understand exactly what a particular fund invests in before buying.

Here’s a quick look at each of the best UK mid-cap equity ETFs. Be sure to review a fund’s complete report for more details.

HSBC FTSE 250 UCITS ETF

• Fund Size
  : £57.6 million
• Morningstar Medalist Rating
  : Bronze
• Ongoing Charge: 0.26

Over the past 12 months, the HSBC fund rose 13.02%, while the average fund in its category rose 9.99%. The fund, which launched in April 2010, has climbed 11.17% over the past three years and gained 3.69% over the past five years.

Read Morningstar’s full report on the HSBC FTSE 250 UCITS ETF.

Xtrackers FTSE 250 UCITS ETF

• Fund Size
  : £29.5 million
• Morningstar Medalist Rating
  : Bronze
• Ongoing Charge: 0.15

The £29.5 million fund has gained 12.96% over the past 12 months, while the average fund in its category is up 9.99%. The Xtrackers fund, which launched in June 2007, has climbed 11.30% over the past three years and gained 3.83% over the past five years.

Read Morningstar’s full report on the Xtrackers FTSE 250 UCITS ETF.

Invesco FTSE 250 UCITS ETF

• Fund Size
  : £27 million
• Morningstar Medalist Rating
  : Bronze
• Ongoing Charge: 0.12

The £27 million fund has gained 11.69% over the past 12 months, while the average fund in its category is up 9.99%. The Invesco fund, which launched in March 2009, has climbed 10.96% over the past three years and gained 3.93% over the past five years.

Read Morningstar’s full report on the Invesco FTSE 250 UCITS ETF.

Vanguard FTSE 250 UCITS ETF

• Fund Size
  : £2.1 billion
• Morningstar Medalist Rating
  : Bronze
• Ongoing Charge: 0.35

The £2.1 billion fund has gained 13.16% over the past 12 months, while the average fund in its category is up 9.99%. The Vanguard fund, which launched in September 2014, has climbed 11.40% over the past three years and gained 3.95% over the past five years.

Read Morningstar’s full report on the Vanguard FTSE 250 UCITS ETF.