Interactive Investor

How AIM took over the world during the pandemic

Watch how the UK's AIM market beat all the other major global stock market indices in the past year.

25th March 2021 13:53

Lee Wild from interactive investor

Watch how the UK's AIM market beat all the other major global stock market indices in the past year.

There was one place to be when the music stopped and global stock markets hit rock bottom in March 2020, and it wasn’t on Wall Street, Frankfurt or Mumbai. The best performing of the world’s major stock indices was in the UK, and it wasn’t blue chip, but the army of innovative, mostly smaller companies on the AIM market that generated the biggest profits for investors over the past year.

The FTSE AIM All Share was the only major index where you would have doubled your returns had you bought at its low point on 19 March 2020 and held on for 12 months. 

After passing its pre-Covid level in September, AIM is currently up about 23%. However, the Nasdaq Composite suffered less during the March crash, so returned to pre-pandemic prices three months earlier. It has gained an extra 33% since.

You would have made money backing the FTSE 100 too, but a 32% price return looks anaemic compared to most other regional markets. Once again, it demonstrates why investors are wise to use UK small-caps for diversification and to gain exposure to growth markets which large-cap indices miss.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.