I agree you are confused as to the difference between "investments" and "wrappers".
Wrappers are holding devices used (usually) to reduce tax liability. You can use a Pension, ISA or LISA. Or none!
Investments are the actual things that (hopefully) make you money, and may be individual shares, funds (UTs, ITs, ETFs) or cash.
All 3 types of wrapper are available to hold any of the different types of
investments. Although not all options from all providers permit all the options. (L)ISAs are either stock market or cash.
So you can put all or none of your money into wrappers, and all or none of your money into etfs. They are not exclusive.
Wrappers - All 3 avoid capital gains tax and dividend tax, which is why they are a good choice. Even if you don't pay such tax yet, you might in future.
Pensions refund tax on the way in, but charge tax on the way out. Your money is protected, but locked in until old age. You cannot get it back even if you are desperate. Pensions are protected from bankruptcy, but not divorce.
ISAs neither refund nor charge tax. But you can withdraw the money freely whenever you want. That may be good, or it may be bad depending on your saving mentality. ISAs are protected from neither bankruptcy nor divorce.
Lifetime ISAs give you a 25% bonus when you pay in, which you never have to give back
![Smile :)](./images/smilies/icon_e_smile.gif)
But are also restricted on when you can take the money out. Although they do allow withdrawal to buy your first home. LISAs are protected from neither bankruptcy nor divorce.
Given you are a student, and have limited funds, a LISA may be a good option for (most of) your money (£4,000pa limit). Of course, given the restrictions on when you can remove money, it does depend what you are saving for. But the ability to remove it to pay for a house is a good benefit, not available from a Pension. And you never have to repay the govt refund.
Gryff