The Best UK Equity Income ETFs

The UK stock market has long been a favorite of income investors, with many FTSE 100 and FTSE 250 companies offering attractive dividends. For investors looking to tap into those payouts, dividend ETFs provide a simple way to spread their money across a range of UK stocks.

What Are UK Equity Income ETFs?

UK equity income ETFs invest principally in UK equities that pay out above-market yields. Funds in this category should display a 12-month yield (based on their distributed income) above 110% of the FTSE All Share yield. Funds in this category can invest in companies of any size, though many exhibit a large-cap bias.

The 3 Best UK Equity Income ETFs to Buy in 2026

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

of Bronze, Silver, or Gold. All the ETFs on the list fall into the UK equity income and have at least £75 million in assets. All data is as of Sept. 14.

1. iShares UK Dividend UCITS ETF IUKD
2. State Street SPDR S&P UK Dividend Aristocrats UCITS ETF UKDV
3. L&G UK Quality Dividends Equal Weight UCITS ETF LDUK

Morningstar expects the highly rated UK equity income 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 equity income ETFs. Be sure to review a fund’s complete report for more details.

iShares UK Dividend UCITS ETF

• Fund Size
  : £1.3 billion
• Morningstar Medalist Rating
  : Gold
• Ongoing Charge: 0.4%

The £1.3 billion fund has gained 25.18% over the past 12 months, while the average fund in its category is up 15.90%. The iShares fund, which launched in November 2005, has climbed 20.82% over the past three years and gained 12.89% over the past five years.

Read Morningstar’s full report on the iShares UK Dividend UCITS ETF.

State Street SPDR S&P UK Dividend Aristocrats UCITS ETF

• Fund Size
  : £110.9 million
• Morningstar Medalist Rating
  : Bronze
• Ongoing Charge: 0.3%

Over the past 12 months, the State Street fund rose 16.99%, while the average fund in its category rose 15.90%. The fund, which launched in February 2012, has climbed 14.41% over the past three years and gained 6.97% over the past five years.

Read Morningstar’s full report on the State Street SPDR S&P UK Dividend Aristocrats UCITS ETF.

L&G UK Quality Dividends Equal Weight UCITS ETF

• Fund Size
  : £78.2 million
• Morningstar Medalist Rating
  : Gold
• Ongoing Charge: 0.25%

The fund’s management earns an Above Average rating from Morningstar. Parent company Legal & General earns a rating of Above Average.

The £78.2 million fund has gained 14.71% over the past 12 months, while the average fund in its category is up 15.90%. The Legal & General fund, which launched in April 2021, has climbed 17.86% over the past three years and gained 10.39% over the past five years.

Read Morningstar’s full report on the L&G UK Quality Dividends Equal Weight UCITS ETF.