Exchange-traded funds worldwide held a record US$23.91 trillion in assets at the end of September 2026, spread across 17,989 ETFs, after a record US$2.24 trillion of net inflows in the first nine months of the year. With that much choice, a ticker that looks cheap today can still be the wrong one to hold for 20 years.
An ETF (exchange-traded fund) is a fund that holds a basket of securities and trades on a stock exchange like a single share. One unit of the Vanguard FTSE All-World UCITS ETF gave investors a slice of 3,821 companies across developed and emerging markets on 30 September 2026, for an ongoing charge of 0.14% a year.
UAE investors buy these funds through brokers licensed in the DIFC or ADGM, through bank-owned brokers onshore, or through managed ETF portfolios. The UAE has no personal income tax and no capital gains, inheritance or estate tax for individuals, so the taxes that matter over decades come from abroad, mainly the United States.
The funds compared below fall into five groups: global equity, US large caps (Irish and US-domiciled), developed and emerging-market building blocks, bonds and short-term Treasuries, and gold and Shariah-screened options. StashAway's guide to the best ETFs and index funds in the UAE gives a shorter, role-based shortlist; this one focuses on what changes when you hold for decades.
This guide explains what makes an ETF suitable for long-term investing, how VWRA, CSPX and VOO differ, why domicile matters for US dividend withholding and estate tax, how accumulating and distributing share classes compare, how much costs take over 30 years, and where UAE investors can buy these ETFs.
Long-term ETFs at a glance:
| ETF (USD listing) | Exposure | Domicile | Income | Ongoing charge | Fund size |
|---|---|---|---|---|---|
| Vanguard FTSE All-World UCITS ETF (VWRA) | 3,821 global stocks | Ireland | Accumulating | 0.14% | US$87.3bn |
| iShares Core S&P 500 UCITS ETF (CSPX) | 504 US large caps | Ireland | Accumulating | 0.07% | US$157.6bn |
| Vanguard S&P 500 ETF (VOO) | 505 US large caps | United States | Quarterly dividends | 0.03% | US$1.73tn (all share classes) |
| iShares Core MSCI World UCITS ETF (SWDA) | 1,250 developed-market stocks | Ireland | Accumulating | 0.20% | US$151.4bn |
| iShares Core MSCI EM IMI UCITS ETF (EIMI) | 2,956 emerging-market stocks | Ireland | Accumulating | 0.18% | US$46.8bn |
| iShares Core Global Aggregate Bond UCITS ETF USD Hedged (AGGU) | 19,978 investment-grade bonds | Ireland | Accumulating | 0.10% | US$14.2bn |
| iShares $ Treasury Bond 0-1yr UCITS ETF (IB01) | 41 short-dated US Treasuries | Ireland | Accumulating | 0.07% | US$28.1bn |
| iShares Physical Gold ETC (IGLN) | Physical gold | Ireland | No income | 0.12% | US$38.3bn |
| iShares MSCI World Islamic UCITS ETF (ISWD) | 387 Shariah-screened stocks | Ireland | Semi-annual distributions | 0.30% | US$1.7bn |
Source: factsheets for VWRA, CSPX, VOO, SWDA, EIMI, AGGU, IB01, IGLN, ISWD (as of 30 September 2026). Fund size is total fund assets.
What makes an ETF suitable for long-term investing?
A fund you plan to hold for 20 or 30 years needs different qualities from one you might trade next month. Small yearly differences compound, so structure and cost matter more than last year's return.
- Breadth. A global index fund spreads company risk across thousands of stocks; a sector fund concentrates it.
- Ongoing charge (TER or OCF). It comes out of the fund every year you own it, in good markets and bad.
- Tracking difference. The gap between the fund's return and its index after all costs shows how well the fund is run.
- Size and replication. Large, physically replicated funds tend to trade with narrow spreads and are less likely to be closed.
- Distribution policy and domicile. These decide what happens to dividends, how much dividend tax the fund loses and whether your heirs could face a US estate-tax filing.
Low fees and broad diversification improve your odds, but markets still fall. A global equity fund can drop sharply in a bad year, so you need both the time horizon and a cash buffer to stay invested.
ETFs to compare for UAE investors in 2026
The funds below cover each building block a long-term portfolio might need. All except VOO are Irish-domiciled UCITS funds or, in the case of gold, an Irish ETC.
Broad global equity: Vanguard FTSE All-World (VWRA and VWRL)
VWRA held 3,821 stocks on 30 September 2026, with US companies making up 62.2% of the fund. Vanguard cut its ongoing charge from 0.19% to 0.14% from 28 July 2026. The distributing share class charges the same 0.14%, pays out quarterly and trades in London as VWRD in US dollars and VWRL in sterling.
Best for: investors who want one fund for the whole global stock market, with no rebalancing between regions.
US large-cap equity: iShares Core S&P 500 (CSPX)
CSPX tracks the S&P 500 from Ireland, with US$157.6 billion in fund assets, 504 holdings and a 0.07% TER. It replicates the index physically and reinvests dividends.
Best for: investors who want low-cost US large-cap exposure in an Irish wrapper.
US large-cap equity, US-domiciled: Vanguard S&P 500 ETF (VOO)
VOO tracks the same index from a US base, with a 0.03% expense ratio and quarterly dividends. The ETF share class alone held US$1.03 trillion at 30 September 2026. It has the lowest headline fee here, but for a non-US investor the domicile costs covered below usually outweigh it.
Best for: US citizens and green-card holders, who are taxed under different US rules from non-US investors.
Developed and emerging-market building blocks: SWDA and EIMI
SWDA tracks the MSCI World Index of developed markets with 1,250 holdings and a 0.20% TER. EIMI covers 2,956 emerging-market stocks, including small caps, for a 0.18% TER. Together they rebuild a global portfolio and let you pick your own emerging-market weight, at the cost of one more holding to rebalance.
Best for: investors who want to set the developed and emerging-market split themselves.
Bonds and cash-like ETFs: AGGU and IB01
AGGU holds 19,978 investment-grade bonds from around the world, hedged to US dollars, with a 0.10% TER and an effective duration of 6.02 years. IB01 holds US Treasuries maturing within a year, with a duration of 0.33 years and a 0.07% TER. Because the dirham is pegged to the US dollar, a USD Treasury fund carries little currency risk for someone who spends in dirhams.
Best for: AGGU suits a bond sleeve that steadies an equity portfolio; IB01 suits money you may need within a few years.
Gold: iShares Physical Gold (IGLN)
IGLN is backed by about 284.94 tonnes of allocated gold and charges a 0.12% TER. It is an exchange-traded commodity (ETC), a metal-backed debt security, so it sits outside the UCITS fund rules. Gold pays no income, so its long-term return depends entirely on price.
Best for: a small allocation that behaves differently from stocks and bonds. For bars and coins, see where to buy gold in Dubai.
Shariah-screened equity: iShares MSCI World Islamic (ISWD)
ISWD tracks the MSCI World Islamic Index with 387 holdings, a 0.30% TER and semi-annual distributions. Screening removes certain industries and highly indebted companies, so sector weights and returns can differ noticeably from a conventional world index.
Best for: investors who need a Shariah-screened global equity core.
VWRA versus CSPX versus VOO: key differences
These three funds dominate long-term ETF discussions among UAE investors. Two track the same index; one covers the whole world.
| Feature | VWRA | CSPX | VOO |
|---|---|---|---|
| Index | FTSE All-World | S&P 500 | S&P 500 |
| Holdings | 3,821 | 504 | 505 |
| US weight | 62.2% | 100% | 100% |
| Domicile | Ireland | Ireland | United States |
| Income | Accumulating | Accumulating | Quarterly dividends |
| Ongoing charge | 0.14% | 0.07% | 0.03% |
| US dividend withholding | Generally 15% at fund level | Generally 15% at fund level | 30% on dividends paid to you |
| US estate-tax exposure | Irish fund shares | Irish fund shares | US-situs asset |
| Main trading currency | USD (London) | USD (London) | USD (New York) |
Source: VWRA, CSPX and VOO factsheets, IRS Publication 515, IRS Form 706-NA instructions (as of 30 September 2026)
VWRA is the broader fund: it still leans on the US, but the other 37.8% spreads your money across Europe, Japan, emerging markets and beyond. CSPX and VOO are pure US large-cap bets.
Trading currency and asset currency are different things. VWRA trades in US dollars, yet more than a third of its holdings are priced in euros, yen, pounds and other currencies, and those exchange rates still move your return in dirhams.
US-domiciled versus Irish UCITS ETFs for UAE-based investors
For a non-US investor, domicile can cost more than the gap in ongoing charges. Two US taxes do the damage: withholding on dividends, and estate tax on US assets at death.
Dividend withholding
Most types of US-source income received by a foreign person are taxed at 30% unless a tax treaty lowers the rate. The UAE is not on the IRS list of countries with a US income tax treaty, so a UAE tax resident holding VOO directly generally loses 30% of each dividend.
An Irish fund sits between you and the US companies. Under the US-Ireland treaty, portfolio dividends are generally taxed at 15%, applied at fund level when the treaty conditions are met. That halves the leakage on US dividends.
| Annual cost on US$100,000 | VOO (US-domiciled) | CSPX (Irish-domiciled) |
|---|---|---|
| Fund fee | US$30 (0.03%) | US$70 (0.07%) |
| Dividends received | US$1,200 | US$1,200 |
| US withholding | US$360 (30%) | US$180 (15%) |
| Total annual drag | US$390 | US$250 |
Example only. Assumes a 1.2% dividend yield, the treaty rate applying in full at fund level, and no other taxes, trading costs or securities-lending income. Fee rates from the VOO and CSPX factsheets (as of 30 September 2026).
VOO's lower fee is outweighed by the extra withholding, and the gap compounds as dividends grow.
On US$100,000 of S&P 500 exposure, the Irish fund costs about US$140 a year less once dividend withholding is counted.
US estate tax
For long-term holders this is the bigger risk, because it can hit the whole balance at once. An estate must file a US return when a nonresident non-citizen dies holding US-situated assets worth more than US$60,000. Shares in US corporations count as US-situated property, other corporate stock is treated as located outside the US, and the maximum unified credit for these estates is generally US$13,000.
Above the credit, the US estate tax schedule reaches a top rate of 40% on taxable amounts over US$1 million. A US-listed ETF such as VOO is generally treated as a US-situs asset, while shares in an Irish fund such as CSPX or VWRA are shares in a non-US company. An estate-tax treaty between the US and your country of nationality or domicile can change the outcome, and US citizens and green-card holders fall under different rules entirely.
Accumulating versus distributing ETFs over decades
Accumulating and distributing share classes of the same fund hold identical investments and charge the same fee. The difference is what happens to dividends.
An accumulating class, such as VWRA or CSPX, reinvests income inside the fund automatically, so the full amount keeps compounding with no trades on your side. For investors still building wealth, that is usually the simpler choice. A distributing class, such as VWRD or ISWD, pays cash into your account. That suits someone living off the portfolio, but for a long-term builder it creates cash drag: dividends sitting uninvested earn nothing, and reinvesting them can cost a commission.
Tax is the same for both classes. US withholding comes off at fund level first, so accumulating and distributing Irish funds lose the same 15% on US dividends. The UAE does not tax personal investment income, so a UAE tax resident pays no local tax on distributions; investors still taxable elsewhere should check how their home country treats each type.
How much do ETF costs reduce your return?
A fraction of a percent looks trivial in year one, but every dollar paid in fees also stops earning returns, and that compounds.
Take a one-off US$20,000 investment that earns 6% a year before costs. At a 0.07% ongoing charge the first year's fee is about US$14; at 0.30% it is US$60; at an all-in 1.00% (a pricier fund plus platform charges) it is US$200.
| Annual cost | After 10 years | After 20 years | After 30 years |
|---|---|---|---|
| 0.07% | US$35,581 | US$63,301 | US$112,616 |
| 0.30% | US$34,816 | US$60,608 | US$105,507 |
| 1.00% | US$32,578 | US$53,066 | US$86,439 |
Example only. Assumes a 6% gross annual return, costs deducted each year, a single US$20,000 investment, and no taxes, FX or trading costs. Returns are not guaranteed.
After 30 years, the gap between 0.07% and 1.00% is about US$26,200, more than the original investment. Even moving from 0.07% to 0.30% costs over US$7,100. You can run your own numbers in StashAway's compound interest calculator.
US$20,000 growing at 6% a year before costs reaches about US$112,600 after 30 years at a 0.07% annual cost, against US$86,400 at 1.00%.
The ongoing charge is one line in the bill. UAE investors also pay brokerage commission, the bid-ask spread on each trade, any platform or custody fee, and a currency conversion from dirhams to dollars, where specialist platforms usually beat banks (StashAway, for example, charges 0.29% per conversion). Buy-and-hold investing keeps trading costs small, so focus on the two you pay every year: the ongoing charge and any platform fee.
How many ETFs do you need for a diversified portfolio?
Extra funds often add overlap instead of diversification. VWRA is already about 62% US stocks, so adding CSPX on top simply raises your US weight.
Three structures cover most long-term needs:
- One global equity fund. VWRA alone holds thousands of companies, with no rebalancing between regions.
- Global stocks plus bonds. Pair a global equity fund with a bond fund such as AGGU. The bond share limits how far the portfolio can fall, and the mix needs rebalancing about once a year.
- Core and satellites. A broad core, such as VWRA or SWDA plus EIMI, makes up most of the portfolio, with small positions in gold, short-term Treasuries or a sector you believe in.
Money needed within a few years belongs in cash or short-term Treasuries, as the guide to long-term versus short-term investing explains; money for 15 years or more can carry more equities.
Three ways to structure a long-term ETF portfolio, from a single global fund to a core-and-satellite mix.
Where to buy ETFs in the UAE
Once you have chosen the funds, the platform decides what you pay to own them and which listings you can reach. Irish UCITS ETFs trade mainly in London and on other European exchanges, so a long-term global portfolio usually needs an international platform, while bank-owned UAE brokers focus on the local exchanges. The guide to the best online trading platforms in the UAE compares each one in more detail.
Digital and international platforms
| Platform | Regulator(s) | Minimum deposit | Fee for US stocks/ETFs | Notes |
|---|---|---|---|---|
| Interactive Brokers | DFSA, US SEC, FINRA | US$0 | US$1 per order | Low-cost access to US and global markets |
| Saxo | UK FCA, Denmark FSA, FINMA, ASIC | US$5,000 | US$1.60 per order | UAE office is a CBUAE representative office |
| XTB | DFSA, UK FCA, CySEC | US$0 | US$0 up to €100,000 monthly turnover | Commission-free stocks and ETFs within the turnover limit |
| Swissquote | DFSA, FINMA, UK FCA | US$0 | US$10 per order | US$10 withdrawal fee |
| Trading 212 | DFSA, UK FCA, CySEC | US$1 | US$0 | Commission-free stocks and ETFs |
| IG | DFSA, UK FCA, ASIC | US$0 | US$0 for first 100 trades a month, then US$5 | Access to 17,000+ markets |
| StashAway Flexible Portfolios | DFSA (licence F006312) | No minimum | 0.2%-0.8% p.a. tiered for two or more ETFs; 0.3% p.a. for a single-ETF portfolio | Self-directed ETF portfolio with fractional shares; 3% minimum per asset class |
Source: StashAway, best online trading platforms in the UAE, StashAway pricing, StashAway Flexible Portfolios (as of 3 November 2026). Underlying ETF expense ratios apply on top at every platform.
Bank-affiliated local brokers
| Broker | Regulator | ADX fee | DFM fee |
|---|---|---|---|
| ADCB Securities | CMA (formerly SCA) | 0.15% of trade value + 5% VAT | 0.275% of trade value + 5% VAT + AED 10 per order |
| ADIB Securities | CMA (formerly SCA) | 0.15% of trade value | 0.275% of trade value + AED 10 per order |
| EFG Hermes UAE | CMA (formerly SCA) | 0.15% of trade value, minimum AED 31.5 | 0.275% of trade value + AED 10 per order, minimum AED 42 |
| Emirates NBD Securities | CMA (formerly SCA) | 0.15% of trade value + VAT | 0.275% of trade value + VAT + AED 10.5 per order |
| FAB Securities | CMA (formerly SCA) | 0.15% of trade value + 5% VAT | 0.275% of trade value + 5% VAT + AED 10 per order |
| Mashreq Securities | CMA (formerly SCA) | 0.15% of trade value + 5% VAT | 0.275% of trade value + 5% VAT + AED 10 per order |
Source: StashAway, best online trading platforms in the UAE, Emirates NBD Securities DFM fees, Al Tamimi & Co. on the CMA (as of 3 November 2026)
Onshore brokers are supervised by the Capital Market Authority, which replaced the Securities and Commodities Authority from 1 January 2026 under Federal Law No. 32 of 2025. Emirates NBD Securities, for example, is licensed by the CMA under licensing number 604003. These brokers suit UAE-listed shares and local ETFs; for a global core, most investors add an international platform.
How to buy ETFs from the UAE
Buying a long-term ETF takes five steps. Most of the work is in the first two; after that, keep contributing and leave the portfolio alone.
- Pick the fund by ISIN. Tickers vary by exchange and currency, so confirm the ISIN on the issuer's factsheet (IE00BK5BQT80 for VWRA, IE00B5BMR087 for CSPX), along with the benchmark, share class and listing currency.
- Choose the platform. Check that it offers the London listing you want, then compare commission, FX spread, custody fees and regulator.
- Open the account and fund it. Expect identity, address and tax-residency checks. Compare your bank's AED-to-USD rate with the platform's, and consider a regular monthly transfer to spread your purchase prices over time.
- Place the order. A limit order during London trading hours, when spreads on LSE-listed ETFs are usually tightest, avoids paying more than you intended.
- Review once or twice a year. Rebalance when an allocation drifts well away from target, ideally by sending new money to the underweight fund.
A managed ETF portfolio handles fund choice, the mix and rebalancing for an annual fee, which suits investors who would otherwise let the portfolio drift. StashAway's ETF selection process shows the criteria a managed service uses to pick funds.
Build a long-term ETF portfolio with StashAway
If you want a diversified ETF portfolio without picking and rebalancing funds yourself, General Investing powered by StashAway builds one for you. It uses ETFs from iShares, State Street, J.P. Morgan, Vanguard, Invesco and Franklin Templeton, with the allocation set by StashAway's Economic Regime-based Asset Allocation (ERAA®) framework and your chosen StashAway Risk Index.
- Managed for the long term: constant monitoring, rebalancing and re-optimisation, with fractional shares so every dollar is invested.
- Regular investing: fund with a one-time transfer or regular deposits, invested within one to three business days.
- Clear costs: management fees start at 0.8% p.a. on the first US$25,000 and fall to 0.2% above US$1 million, plus underlying ETF expense ratios of around 0.2% p.a. on average and a 0.29% spread per currency conversion.
StashAway Management (DIFC) Limited is regulated by the DFSA under licence F006312. Investing involves risk, including the possible loss of capital, and past performance does not guarantee future results.
Frequently asked questions
These are the questions UAE investors ask most often when choosing ETFs to hold for the long term.
Is VWRA or CSPX better diversified?
VWRA is far more diversified. It held 3,821 stocks across developed and emerging markets at 30 September 2026, against about 500 US companies in CSPX. CSPX is cheaper at 0.07% versus 0.14%, but it is a single-country fund.
Which ETFs are available to Dubai investors?
DFSA-regulated international brokers give Dubai investors access to US-listed ETFs and to Irish UCITS ETFs listed in London and Europe, including VWRA, CSPX, SWDA and EIMI. Bank-owned local brokers focus on shares and ETFs listed on DFM and ADX.
Are Irish-domiciled ETFs better for non-US investors?
For most non-US investors in the UAE, yes. An Irish fund generally loses 15% of US dividends against 30% for a US-listed fund held directly, and its shares are not US-situs assets for US estate tax.
Should I hold one ETF or several ETFs?
One global fund such as VWRA covers the world stock market and is enough for many long-term investors. A bond fund lowers volatility, and a few small satellites can add gold or short-term Treasuries. Pairing funds that hold the same companies, such as VWRA and CSPX, mainly adds US exposure.
Should long-term investors choose accumulating or distributing ETFs?
Accumulating classes usually suit investors still building wealth, because dividends are reinvested automatically. Distributing classes suit investors who want regular income, and the fund's tax treatment is the same either way.
Do UAE investors pay tax on ETF gains?
The UAE does not tax personal income or capital gains for individuals. Foreign taxes still apply, mainly US withholding on dividends and potential US estate tax on US-situs assets. If you are also a citizen or tax resident of a country that taxes worldwide income, its rules apply too.
Final thoughts
For most UAE investors, the best long-term ETF is a broad, low-cost, Irish-domiciled fund held on a platform with low ongoing and FX costs, then left to compound. Choose the structure first (one global fund, stocks plus bonds, or core and satellites), confirm each fund's ISIN and domicile, and keep your total yearly cost as low as you can. Over 30 years, those decisions shape your final balance far more than whichever fund topped last year's table.