Every month we look at the top funds, stocks and trusts that form investors’ portfolios. In the month of December, the latest data available, it seems UK investors couldn’t get enough of US stocks, with the likes of Tesla, Nvidia and MicroStrategy dominating portfolios.
In another surprise shift, investors have also lost some love for the popular Vanguard Lifestrategy 80% Equity Fund - and although it remains a favourite, it does not hold a top spot anymore.
And when it comes to investment trusts, Scottish Mortgage is back in favour; its recent underperformance has rattled some nerves, but it has once again become a top favourite in December. It also sits firmly on MoneyWeek's portfolio of investment Trusts.
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But what other stocks, funds and investment trusts are investors out of love with and what else is drawing in attention? Using data from investment platform interactive investor (ii), here are the top investments made in the last month.
Most popular funds
When it comes to passive versus active investing, there’s no competition it seems, with passive funds dominating portfolios as they continue to be the most purchased funds, taking nine of the top 10 most purchased funds in December on ii’s platform.
Although, one active fund seems to be making some noise - the Royal London Short Term Money Market fund, which dethroned the popular Vanguard LifeStrategy 80% Equity fund.
Terry Smith’s Fundsmith Equity still didn’t make the top 10, the third month in a row. It has historically been one of the most popular funds with DIY investors and MoneyWeek readers.
The £22.5 billion global fund now ranks behind global stock market tracker funds over one, three and five years, but is still ahead over the past decade.
The UBS S&P 500 Index has entered the most popular list as investors look to tap into the potential growth in the US market.
Sam Benstead, fixed income lead at ii, says: “Interestingly, the two most popular funds last month offer almost opposite investment propositions.
“Top-ranked Royal London Short Term Money Market gives investors a 'cash-like' return, which closely follows the Bank of England Base Rate. Money Market funds are one of the most conservative options that investors have to choose from, but with a yield of 4.8%, returns are comfortably ahead of inflation, which helps explain its popularity.
“In contrast, second-ranked Legal & General Global Technology index is a full-on growth fund, which has delivered stellar returns but with plenty of volatility. The £3.6 billion fund is not for the faint-hearted, with around 15% invested in each of Apple, Nvidia and Microsoft, but this concentration in US tech stocks has made it one of the best-performing funds of the last decade, returning an astonishing 655%.”
Top 10 most purchased funds
- Royal London Short Term Money Market
- L&G Global Technology Index
- Vanguard LifeStrategy 80% Equity
- Vanguard US Equity Index
- Fidelity Index World
- HSBC FTSE All-World Index
- Vanguard LifeStrategy 100% Equity
- Vanguard FTSE Global All Cap Index
- Vanguard LifeStrategy 60% Equity
- UBS S&P 500 Index
Most popular trusts
Growth-focused fund Scottish Mortgage has come back as a top favourite as the most popular trust purchased in December, having dropped to second place in November.
And for those actively seeking exposure to tech, the Polar Capital Technology fund, managed by Ben Rogoff. It continued to be popular as the trust rides the AI boom.
Alex Watts, fund analyst at ii, commented: “December marks the end of a mixed year for investment companies, during which the issue of share price discounts to net asset values (NAVs) did not dissipate, merger activity was rife and high-profile activist investors made their appearance on a number of share registers.
“Given strong performance of global equities through 2024, it’s no surprise that in December investors maintained their vigour for global trusts, continuing to buy two large multi-manager options: F&C Investment Trust and the newly merged Alliance Witan, in addition to the strongly performing JPM Global Growth and Income and growth-focussed Scottish Mortgage.”
Top 10 most purchased trusts
- Scottish Mortgage
- Greencoat UK Wind
- JP Morgan Global Growth & Income
- Alliance Witan
- F&C Investment Trust
- BlackRock World Mining
- City of London
- NextEnergy Solar
- 3i Group
- Polar Capital Technology
Most popular stocks
US companies were in demand for UK investors with the expectation of longer term growth. but investors also looked to take advantage of cryptocurrency with MicroStrategy for Bitcoin exposure. Tesla and Nvidia are still popular, but other stocks such as Palantir Technologies also made an entry.
For those seeking dividends, Legal & General continue to be a firm favourite.
Top 10 most purchased stocks
- MicroStrategy
- Tesla
- Nvidia
- Palantir Technologies
- BP
- IAG
- Glencore
- Legal & General
- Rolls Royce
- Advanced Micro Devices
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