Important information - the value of investments and the income from them can go down as well as up, so you may get back less than you invest.

Investing for children is a big responsibility and requires serious long-term thinking. The funds within a Junior ISA could have more than a decade to grow, but they must also contend with the arch enemy of investment returns: inflation. 

So, what have Junior ISA (JISA) investors been buying this year?

World trackers

Global tracker funds form the bedrock of many JISAs. Fidelity Index World Fund tops the best-sellers list, while Vanguard FTSE Global All Cap IndexHSBC FTSE All World Index and Legal & General Global Equity Index Fund are also proving popular.

It is easy to see their appeal. World tracker funds let you hold a huge array of companies for a relatively low fee and minimal hassle. They offer plenty of exposure to hot investment themes, such as artificial intelligence, but will adapt and shift over time.

It is a mistake to assume all global tracker funds are the same. The Vanguard fund is more diversified than many, offering exposure to developed and emerging markets. Its top 10 holdings represent just over a fifth of the total portfolio. In contrast, the Fidelity fund focuses exclusively on developed markets, and its top 10 holdings represent 27% of the total portfolio. The HSBC and L&G funds sit somewhere in between.

A big part of the appeal of all these funds, however, is their price. They allow you to ride the ups and downs of the global market for an ongoing charge of between 0.12% and 0.23%. Fees are particularly important for long term investors, because they will gradually erode returns over time.

Annual performance to 30 June (%) 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 
Fidelity Index World  -2.3 13.3 21.9 6.3 25.5
Vanguard FTSE Global All Cap Index -4.9 10.8 19.0 6.9 27.7
HSBC FTSE All World Index -3.7 11.2 20.8 6.8 27.8
Legal & General Global Equity Index -4.0 14.0 21.4 6.6 29.9

Past performance is not a reliable indicator of future returns

Source: Morningstar from 30.6.21 to 30.6.26. Basis bid to bid with income reinvested in GBP. Excludes initial charge.

US funds

World tracker funds are heavily skewed towards North America, given the size of its stock market. However, many JISA investors have doubled down and opted for US index funds as well. UBS S&P 500 Index Fund and the Fidelity Index US Fund are clear favourites.

Both aim to track the performance of the 500 largest publicly listed companies in the US. As such, they are highly exposed to tech titans like Nvidia, Apple and Microsoft (the top 10 stocks in the S&P 500 currently represent about 40% of the entire index). 

America's huge, innovative economy and deep capital markets continue to attract investors, particularly after a decade of strong returns. By investing through an index fund, investors can also keep costs low. The UBS and Fidelity funds have ongoing charges of just 0.09% and 0.06%, respectively.

Annual performance to 30 June (%) 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 
UBS S&P 500 Index Fund 1.4 13.9 24.9 6.0 26.0
Fidelity Index US Fund 1.7 13.8 26.1 4.7 25.9

Past performance is not a reliable indicator of future returns

Source: Morningstar from 30.6.21 to 30.6.26. Basis bid to bid with income reinvested in GBP. Excludes initial charge.

Ready-made portfolios

One of the risks of relying exclusively on tracker funds is that you end up very exposed to a handful of huge companies. This is because the market has grown more concentrated in recent years. Some JISA investors have tackled this by opting for ready-made portfolios instead.

The Fidelity Multi Asset Allocator Adventurous Fund consists of 80% stocks and 20% bonds, with a smattering of cash thrown in. This fund is ranked 4 out of 7 for risk, with more adventurous global tracker funds sitting alongside government and corporate debt.

Vanguard LifeStrategy 100% Equity Fund is another popular choice. This fund brings multiple index funds into a single portfolio, providing access to thousands of shares in a single investment. The geographical make-up of the fund is very different to that of a world tracker. Just 53% is in the US, while almost a fifth is in the UK. By comparison, the US represents about 60% of the global stock market, and the UK accounts for just 3%.

Annual performance to 30 June (%) 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 
Fidelity Multi Asset Allocator Adventurous Fund -5.3 6.5 14.7 6.1 22.4
Vanguard LifeStrategy 100% Equity Fund -3.3 10.8 18.2 7.7 27.3

Past performance is not a reliable indicator of future returns

Source: Morningstar from 30.6.21 to 30.6.26. Basis bid to bid with income reinvested in GBP. Excludes initial charge.

Special situations

Interest in UK stocks is evident elsewhere in JISA portfolios. Fidelity Special Situations is an actively managed fund that hunts for cheap stocks and has its eyes squarely on the UK market. Fund manager Alex Wright has years of experience seeking out London-listed companies going through tough times.

The portfolio is skewed towards medium- and smaller-sized businesses, but famous names like Lloyds and Aviva feature among its top holdings too. It currently leans towards industrial stocks, and the consumer discretionary sector - although banks and insurance firms also have a big part to play.

Unlike the index funds above, Fidelity Special Situations relies on active stock selection rather than simply tracking the market. It features on Fidelity’s Select 50 list of favourite funds.

Annual performance to 30 June (%) 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 
Fidelity Special Situations -1.5 5.7 19.1 17.7 17.8

Past performance is not a reliable indicator of future returns

Source: Morningstar from 30.6.21 to 30.6.26. Basis bid to bid with income reinvested in GBP. Excludes initial charge.

Income hunters

Dividend-paying companies also appeal to JISA investors. This makes a lot of sense. If you keep reinvesting dividends, you can benefit from a powerful compounding effect over time.

The Artemis Global Income Fund is an actively managed fund that tries to find companies that can consistently generate high levels of cash and therefore pay reliable dividends.

It is heavily weighted towards the financial sector and has some chunky exposure to emerging markets. In contrast, it limits its US exposure to 34%. Free cash flow is the management team’s key metric, but it has more of a macro mindset than many funds, assessing how things like inflation and interest rates will impact countries and sectors.

The fund also stands out for its focus on lesser-known companies. While familiar names like Samsung feature among its top holdings, others - such as Hon Hai Precision - are less widely covered in the UK.

The fund has had a fantastic few years and has experienced explosive growth in the past 12 months. While some income funds aim to dampen volatility, however, Artemis Global Income’s performance can vary significantly from year to year.

Annual performance to 30 June (%) 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 
Artemis Global Income Fund 1.5 4.0 31.9 28.7 45.6

Past performance is not a reliable indicator of future returns

Source: Morningstar from 30.6.21 to 30.6.26. Basis bid to bid with income reinvested in GBP. Excludes initial charge.

Best-selling Junior ISA funds of 2026

  1. Fidelity Index World Fund
  2. Vanguard FTSE Global All Cap Index
  3. HSBC FTSE All World Index 
  4. UBS S&P 500 Index Fund
  5. Vanguard LifeStrategy 100% Equity Fund
  6. Fidelity Multi Asset Allocator Adventurous Fund
  7. Legal & General Global Equity Index Fund
  8. Fidelity Index US Fund
  9. Fidelity Special Situations Fund
  10. Artemis Global Income Fund

Source: Fidelity International. Net Junior ISA sales 1 Jan to 30 June 2026 for Personal Investors only.

Got a burning question you want to ask? Why not drop us a line. Click here to ask your question.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Before investing into a fund, please read the relevant key information document which contains important information about the fund. Eligibility to invest in a Junior ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a Junior ISA will not be possible until the child reaches age 18. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.

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