10 hottest ISA shares, funds and trusts: week ended 3 May 2024

With the new tax year under way, we look at the investments ii customers have been buying within their ISAs during the previous week. The data includes only real-time trades, not regular investing instructions, and combines the use of both existing funds and new money.

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Top 10 shares in ISAs

It’s all change in this week’s top 10 most-bought ISA stocks on the interactive investor platform.

First, there’s a new number one. M&G Ordinary Shares (LSE:MNG) has been yo-yoing around the top 10 for a number of weeks but has finally claimed the top spot. The shares are significantly lower than their March high and yield about 10%, which explains their attraction.

And there are six new entries this time. After a three-week break from the top 10, Vodafone Group (LSE:VOD) is the highest new entry. The share price hasn’t done much recently, but there are still plenty of investors happy to bet that a recovery is on the cards.

BT Group (LSE:BT.A) has been out of the top 10 for four weeks but has made it back in from 12th place the week before. The share price has been trapped between 100p and 110p for the past three months, and perhaps the positive performance of the FTSE 100 index and anticipated improvement in the economy is arousing buying interest.

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HSBC Holdings (LSE:HSBA) has been knocking on the door of the top 10 for weeks but hasn’t made it into the list since the start of March. Last week’s quarterly results were enough of a catalyst to make it happen. It was only a couple of months ago that HSBC shares were in bad shape. They're up 20% since and at a five-year high. The highly respected CEO is leaving once a replacement is found, but the actual numbers were well-received.

Glencore (LSE:GLEN) shares fell following a mixed trading update, so looks like some bargain hunting. But the price is still not far off a one-year high, suggesting there’s support in the market which anticipates a benefit from a pick-up in economic activity through 2024 and into next year, especially in China.

BP (LSE:BP.) and bitcoin play MicroStrategy Inc Class A (NASDAQ:MSTR) are the other new entries.

Top 10 funds and trusts in ISAs

Scottish Mortgage Ord (LSE:SMT) was knocked off the top of the most-bought funds and investments trusts’ list last week. 

It was replaced by Vanguard LifeStrategy 80% Equity, the “fund of funds” from passive investment giant Vanguard that gives investor access to global stock and bond markets for 0.22% in fees. It is a popular core holding for investors and has performed well, rising 128% over the past decade compared with a 70% return for the typical mixed asset 40% to 85% shares portfolio.  

Scottish Mortgage was the second most-bought fund/trust, followed by Fundsmith Equity in third.  

There were two significant risers last week: Jupiter India and Royal London Short Term Money Mkt, which both rose three places to settle at fourth and fifth place respectively. Jupiter India is on hot run, returning 18.5% so far in 2024, and more than doubling over five years.  

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The Royal London fund yields more than 5% by investing in bonds maturing soon and overnight deposits to give investors a “cash-like” return. Rising interest rates have pushed up yields on the strategy and attracted investors.  

Two new funds in the most-bought list were Fidelity Index World and Alliance Trust (LSE:ATST). Both are diversified global equity funds, with Fidelity tracking the MSCI World index for 0.12% in fees and Alliance Trust using active fund managers to try and beat the market, costing a competitive 0.62%.

Returns have been similar over the past decade, with the active Alliance Trust ahead of the index fund by 30 percentage points, with a 249% return.

The big fallers last week were JPMorgan Global Growth & Income Ord (LSE:JGGI), HSBC FTSE All-World Indexand L&G Global Technology Index. Vanguard LifeStrategy 100% Equity and Vanguard FTSE Global All Cap Index drop off the list.  

Funds and trusts section written by ii’s deputy collectives editor Sam Benstead.