Cheapest UK Index Funds 2026: Total Cost of Ownership
Vanguard has been the default UK tracker for a decade. The new ranking has them in second place, and the headline fee number is not the one that decided it.
Cheapest UK trackers by asset class (TCO)
| Asset class | Fund | Ticker | TCO |
|---|---|---|---|
| Global all-world | Amundi Prime All Country World | PACW | 0.07% |
| US large cap | SPDR S&P 500 ETF | SPXL | 0.03% |
| UK equity | iShares UK Equity Index D | GB00B7C44X99 | 0.05% |
| Emerging markets | Amundi MSCI Emerging Markets | LEMA | 0.14% |
TCO captures dealing costs the OCF does not. Source: Monevator low-cost trackers list.
Key takeaways
Understanding different cost terms like AMC, OCF, and TCO is important when comparing index funds.
Vanguard's cost advantage has diminished, with new competitors like Amundi offering lower total costs.
Total Cost of Ownership (TCO) is the most accurate measure of a fund's cost, including both disclosed fees and undisclosed transaction costs.
When choosing a low-cost index fund, consider the overall TCO rather than just the Ongoing Charges Figure (OCF).