Best ETFs to Buy in 2026 for Beginners: Complete Guide to Investing Your Savings

If you're looking for a simple and effective way to put your savings to work, ETFs represent today one of the best starting points overall. You don't need to be a finance expert or have huge amounts of capital: with just a few hundred euros and the right information, you can start building a diversified portfolio capable of generating returns over time.

In 2026, the landscape of investments accessible to retail investors has expanded even further. Italian and European online brokers now offer hundreds of ETFs listed on Borsa Italiana and other European exchanges, with management costs (TER) becoming increasingly lower and purchase commissions often eliminated entirely. Yet, precisely because of this abundance of choice, newcomers to this world can feel overwhelmed.

In this guide, we'll select the best ETFs for those starting to invest in 2026, explain how to choose them based on your risk profile, and give concrete guidance on taking your first steps. The goal isn't to make market predictions, but to give you the tools to make decisions independently and consciously.

What Are ETFs and Why They're Ideal for Those Starting to Invest

ETF is the acronym for Exchange Traded Fund, which is an investment fund traded on stock exchanges that replicates the performance of a market index. Buying an ETF basically means purchasing a "slice" of a basket of securities: stocks, bonds, commodities, or a combination of these.

The main advantage compared to buying individual stocks directly is automatic diversification: by investing in an MSCI World index ETF, for example, you become a co-owner of over 1,400 companies spread across 23 countries with a single purchase. This drastically reduces the risk associated with the failure or collapse of any single stock.

ETFs are distinguished from traditional mutual funds by several fundamental aspects:

  • Very low management costs (TER): often between 0.05% and 0.30% annually, versus 1-2% for active funds
  • Transparency: the fund's composition is public and updated daily
  • Liquidity: they're bought and sold on the stock exchange like regular shares, during market hours
  • Accessibility: many brokers allow investments starting from 1 euro through accumulation plans (PAC)

Another element to keep in mind concerns Italian taxation: gains on harmonized ETFs (the vast majority of those listed on Borsa Italiana) are taxed at 26%, with the possibility of offsetting losses depending on the type of instrument. This is a technical matter we'll expand on in the FAQs.

Criteria for Choosing the Best ETFs in 2026

Before listing specific products, it's useful to understand the criteria used to evaluate an ETF. Relying solely on past performance is a common mistake among beginners: an ETF that performed well last year isn't necessarily the right one for the coming years.

Here are the main criteria to consider:

1. Total Expense Ratio (TER)

The TER is the annual cost of managing the fund, expressed as a percentage. Even an apparently small difference — say 0.10% versus 0.50% — over a 20-year horizon can translate into thousands of euros of difference in your final capital. Always prefer ETFs with a TER below 0.25%.

2. Fund size (AUM)

ETFs with assets under management (AUM) exceeding 500 million euros are generally more liquid and less exposed to the risk of fund closure. Funds that are too small can be delisted, forcing the investor to sell at a non-optimal moment.

3. Replication method

ETFs can replicate the index in a physical way (they actually buy the securities) or synthetically (they use derivatives). For beginners, physical replication is preferable—more intuitive and generally less risky.

4. Dividend distribution policy

Accumulation ETFs automatically reinvest dividends back into the fund, favoring compound growth over time. Distribution ETFs pay periodic dividends. For long-term investors who don't need immediate income, accumulation is almost always the better choice.

5. Replicated index

The underlying index determines the geographic and sector exposure of your investment. An S&P 500 ETF exposes you almost exclusively to large American companies; an MSCI World ETF diversifies you globally.

The Best ETFs for Beginners in 2026: Annotated Selection

Below is a reasoned selection of ETFs suitable for those starting out, divided by category. The tickers shown refer to listings on Borsa Italiana (Euronext Milan).

Global Equity ETFs — The Foundation of Every Portfolio

iShares Core MSCI World UCITS ETF (SWDA)

  • TER: 0.20%
  • AUM: over 60 billion euros
  • Physical replica, accumulation policy
  • Exposes you to approximately 1,400 companies in developed countries

It's the most popular choice among European investors starting out. In a single instrument you get exposure to the United States, Europe, Japan, Canada, and other developed markets. The historical annualized return of the MSCI World index over the last 30 years hovers around 8-9% gross in dollars, despite significant short-term fluctuations.

Vanguard FTSE All-World UCITS ETF (VWCE)

  • TER: 0.22%
  • AUM: over 20 billion euros
  • Physical replica, accumulation policy
  • Covers emerging markets as well (approximately 10% of weighting)

A valid alternative to SWDA for those who also want exposure to China, India, Brazil, and other developing markets, accepting slightly higher volatility in exchange for more complete diversification.

Bond ETFs — To Reduce Portfolio Volatility

iShares Core Global Aggregate Bond UCITS ETF (AGGG)

  • TER: 0.10%
  • Replicates government and corporate bonds worldwide
  • Useful for balancing an equity portfolio

Those with a moderate risk profile might build a classic 80% SWDA / 20% AGGG portfolio. In the current context of stabilized interest rates (the ECB brought its benchmark rate to 2.50% in early 2026), bonds have regained a positive real return, making this asset class interesting again.

Index-Specific ETFs — For Conscious Thematic Exposure

Invesco S&P 500 UCITS ETF (SPXS)

  • TER: 0.05% — among the cheapest overall
  • Replicates the 500 largest American companies
  • Excellent liquidity

If you believe in the American market and want to minimize costs, this ETF is hard to beat in terms of efficiency.

Xtrackers MSCI Emerging Markets UCITS ETF (XMEM)

  • TER: 0.18%
  • Exposure to China, India, Taiwan, South Korea, and other emerging markets
  • Suitable for those with a long time horizon (at least 10 years) and who accept higher volatility

ETFs for the Most Cautious — Money Market

Amundi Euro Liquidity UCITS ETF

  • TER: 0.10%
  • Replicates European money market rates
  • Current annual return around 2.3% (variable with ECB rates)

It's not a high-return investment, but it represents an excellent alternative to a current account for savings you don't want exposed to equity risk.

How to Build Your First ETF Portfolio: Practical Examples

Theory is useful, but many beginners get stuck at the concrete question: where do I start?

Here are three simple portfolio examples, suited to different profiles.

"Lazy" Portfolio for beginners (moderate-aggressive profile)

  • 80% SWDA (global equity developed markets)
  • 20% AGGG (global bonds)

Portfolio for under 35s with long time horizon (aggressive profile)

  • 70% VWCE (global equity including emerging markets)
  • 30% SPXS (US equity, to increase exposure to the historically most performant market)

Cautious Portfolio (conservative profile)

  • 40% SWDA
  • 40% AGGG
  • 20% Money market ETF

Sound advice for everyone: invest regularly through a Capital Accumulation Plan (PAC), depositing a fixed amount each month regardless of market performance. This approach, called dollar cost averaging, reduces the impact of volatility and prevents you from trying to time the market—a mistake even professionals struggle to avoid.

Frequently Asked Questions

Q: How much can you earn by investing in ETFs? A: Returns depend on the ETF chosen and your time horizon. A global equity ETF like the MSCI World has historically returned around 8-9% annually gross in dollars over long periods, but with significant annual fluctuations. There are no return guarantees, and you can even lose part of your capital, especially in the short term.

Q: What's the best broker to buy ETFs in Italy in 2026? A: The brokers most used by Italian investors in 2026 are Fineco, DEGIRO, Trade Republic, and Directa. Trade Republic and DEGIRO stand out for zero costs on ETFs in accumulation plans, while Fineco offers a more complete platform for those who also want advisory services. Always check custody and order execution costs before choosing.

Q: How are ETFs taxed in Italy? A: Gains from harmonized ETFs (UCITS) are taxed at 26% like capital gains. Distributed dividends are also taxed at 26%. Note: losses from selling ETFs cannot be offset with gains from the same ETFs (they're capital income), but can be offset with other diversified income. It's a technical aspect worth consulting a accountant or independent financial advisor about.

Q: Is it better to choose an accumulation or distribution ETF? A: For long-term investors aiming for capital growth, the accumulation ETF is generally more efficient because it automatically reinvests dividends without the investor paying tax on the distributed dividend. The distribution ETF is preferable if you need periodic cash flow, for example during retirement.

Q: How much money do you need to start investing in ETFs? A: With some brokers like Trade Republic you can start a PAC with just 1 euro a month. Generally, buying an ETF on the secondary market (stock exchange) requires 50-100 euros, which roughly corresponds to the price of one share. The important thing isn't the initial amount, but consistency in depositing over time.

Conclusion

Investing in ETFs in 2026 is more accessible than ever for an Italian beginner. The key is to start with simple, diversified, and low-cost products—like an MSCI World or FTSE All-World ETF—and build a disciplined accumulation plan over time, without letting short-term fluctuations influence you.

Remember: your worst enemy as an investor isn't market volatility, but the tendency to buy on euphoria and sell on fear. ETFs, precisely because of their passive and diversified nature, help you maintain a coherent strategy over time.

If you're ready to take the first step, open an account with one of the brokers mentioned above, choose one or two ETFs from those described, and start with a monthly PAC. In ten years you'll thank yourself for starting today.