We use ABeka sight words, which are the "rule breakers" rather than high frequency words. Children are encouraged to learn the Dolch and Fry high frequency words as well for more fluent reading. We have many of them in our spelling lists.
The first two words we will be learning are "the" and "a." Although "a" can be pronounced by saying the name of the letter, we will be learning to read it as a short u sound (as in umbrella,) because this is the way we say it in typical conversation.
These are the words that we will learn as sight words this year (some of them do have rules that will be learned in first grade.):
the a love from says come little for
I you Jesus of who want find saw
to do said what have was where they
new there thank