Every month, we look at the top funds, stocks and trusts among DIY investors. The investments they pick offer an insight into how the markets are faring, and where individual investors see the best opportunities.
Whether you are a beginner investor or a seasoned stock-picker, knowing where others in your position are looking can be a valuable source of insight and information.
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Technology on the rise
There have been market jitters recently as some investors fear that technology stocks like the Magnificent Seven are overvalued and that this could lead to a bursting of the AI megacap bubble.
But DIY investors appear to be unperturbed. “Many investors are shrugging off concerns from some investment professionals and commentators about valuations being potentially overheated on the back of the sector’s stellar performance over both short and long-term time frames,” said Caldwell.
August (and late July) saw most US technology companies, including the Magnificent Seven, announce earnings for the preceding quarter. This will have created a spike in interest in these stocks.
All of this has been captured in DIY investors’ top stock, fund and investment trust picks.
August’s top stocks for DIY investors
These were the most-bought equities among DIY investors on Interactive Investor during August:
| Header Cell - Column 0 | Equity |
|---|---|
1 | Rolls Royce |
2 | Taylor Wimpey |
3 | Legal & General |
4 | Nvidia |
5 | Wishbone Gold |
6 | Metals One |
7 | Palantir Technologies |
8 | Lloyds Banking |
9 | Strategy |
10 | Glencore |
Source: Interactive Investor.
Defence and aerospace giant Rolls Royce (LON:RR.) has flown back into top spot as global conflicts continue to rumble. It is joined by fellow FTSE 100 heavyweights Taylor Wimpey (LON:TW.) and Legal & General (LON:LGEN) in the top three most-bought stocks on Interactive Investor during August.
Wishbone Gold (LON:WSBN), Metals One (LON:MET1) and Glencore (LON:GLEN) all made the top ten list, indicating that DIY investors favoured the mining sector during the month.
“Wishbone Gold is a new addition to our list of popular stocks among ii customers in August thanks to explosive growth in the junior gold explorer’s AIM listed shares,” said Victoria Scholar, head of investments at Interactive Investor. “It has enjoyed drilling successes and a major capital raise. Plus, it has benefitted from the recent bull run for gold.”
Strategy (NASDAQ:MSTR), formerly MicroStrategy, is best-known as a leveraged play on Bitcoin as the company was one of the first in the world to start buying the cryptocurrency onto its balance sheet, and is now the world’s largest corporate holder of Bitcoin.
Bitcoin prices hit new highs in August, edging over $124,000 midway through the month.
“AI darling Nvidia (NASDAQ:NVDA) is another hugely popular name for obvious reasons,” said Scholar. Nvidia’s shares fell back despite an earnings beat last month, but it has clearly attracted the attention of DIY investors on either side of this.
AI play Palantir (NASDAQ:PLTR) was a new entrant to the list following a volatile August. Tesla (NASDAQ:TSLA) was a notable stock to have dropped off the list since last month.
August’s top funds and ETFs for DIY investors
These were the most-bought active and passive funds on Interactive Investor during August:
| Header Cell - Column 0 | Active Open-Ended Fund | Index Fund or ETF |
|---|---|---|
1 | Royal London Short Term Money Market Fund | Acc | Vanguard LifeStrategy 80% Equity |
2 | Artemis Global Income | Acc | Vanguard S&P 500 UCITS ETF | Acc |
3 | Ranmore Global Equity Institutional GBP | iShares Physical Gold ETC |
4 | Artemis SmartGARP European Equity Fund | L&G Global Technology Index Trust |
5 | Royal London Short Term Money Market Fund | Dis | Vanguard S&P 500 UCITS ETF | Dis |
6 | Jupiter Gold & Silver | HSBC FTSE All World Index |
7 | Orbis OEIC Global Balanced Standard Fund | Vanguard FTSE Global All Cap Index |
8 | Polar Capital Global Technology | Vanguard LifeStrategy 100% Equity |
9 | Fundsmith Equity | Vanguard FTSE All World UCITS ETF |
10 | Artemis Global Income | Dis | Vanguard LifeStrategy 60% Equity |
Source: Interactive Investor.
“In a further indication of increased technology demand, Polar Capital Global Technology entered our top 10 table for the most-bought active funds in August,” said Caldwell. “Meanwhile, in the index fund rankings, L&G Global Technology Index came fourth.”
DIY investors’ top fund picks also revealed support for the idea that value investing is returning to vogue. Artemis Global Income and Ranmore Global Equity both follow a value-driven investment style.
The ever-popular Vanguard LifeStrategy 80% Equity Fund retained its first-place spot in August among passive funds.
And with gold prices continuing to rise it is no surprise to see iShares Physical Gold ETC (LON:SGLN) remain in the list of top passive funds for investors.
August’s top investment trusts for DIY investors
These were the most-bought investment trusts among DIY investors on Interactive Investor during August:
| Header Cell - Column 0 | Investment Trust |
|---|---|
1 | Greencoat UK Wind |
2 | Scottish Mortgage |
3 | Polar Capital Technology |
4 | City of London |
5 | JP Morgan Global Growth & Income |
6 | Temple Bar |
7 | NextEnergy Solar |
8 | The Renewables Infrastructure Group |
9 | Allianz Technology |
10 | F&C Investment Trust |
Source: Interactive Investor.
As well as Polar Capital Technology and Allianz Technology, Scottish Mortgage (LON:SMT) and JP Morgan Global Growth & Income (LON:JGGI) have heavy exposure to the technology sector, and both remain in the list of DIY investors’ top investment trusts following inclusion in July’s list.
Scottish Mortgage is a technology specialist trust, while JP Morgan Global Growth & Income’s top five holdings (as of 31 July) are Microsoft (NASDAQ:MSFT), Nvidia, Amazon (NASDAQ:AMZN), Meta (NASDAQ:META) and Apple (NASDAQ:AAPL).
There was also a strong showing for investment trusts focused on renewable energy infrastructure. Greencoat UK Wind (LON:UKW) and NextEnergy Solar (LON:NESF), both of which were among the top 10 most-bought investment trusts during July, were joined in August by The Renewables Infrastructure Group (LO:TRIG). The Renewables Infrastructure Group owns a portfolio of onshore and offshore wind farms and solar parks in the UK and Europe.
Read our explainers on investment funds and the best investment trusts for beginners for more information and inspiration for your portfolio.
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