Most-bought investments: April 2024

• Investors' demand for high yields remains strong, with Royal London Short Term Money Market, Greencoat UK Wind, and City of London all proving popular 
• MicroStrategy remains in the top 10, as shares surge approximately 50% in 2024 
• Tesla shares rebound to claim the second spot: fuelled by strong earnings and Elon Musk's successful China trip 

interactive investor, the UK’s second-largest platform for private investors and number one flat-fee platform, unveils its most-bought equities, funds, and trusts in April 2024.

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In April, as the new financial year commenced, interactive investor's platform purchases showcased investors' enduring commitment to consistency and familiarity.

The enduring trends among the top funds and trusts include a preference for global diversification to capture growth opportunities, and the interest around artificial intelligence. Income-seeking investors have also been favouring high yields. Notably, Royal London Short Term Money Market, Greencoat UK Wind, and City of London, continued to be popular.

For equities, high dividend yields from familiar names such as Legal & General, Lloyds Banking Group, and Vodafone, all attracted ii investor interest, alongside newcomers like M&G. Nvidia remained a favourite among investors despite facing some setbacks.

Below, interactive investor’s experts explore April 2024’s most-bought data in more depth.

Equities 

Commenting on the most-bought direct equities in April, Victoria Scholar, Head of Investment, interactive investor, says: “More so than usual, FTSE 100 names are dominating the list of most popular stocks on the interactive investor platform. Retail investors are clearly drawn to names like Legal & General Group (LSE:LGEN), Lloyds Banking Group (LSE:LLOY), and Vodafone Group (LSE:VOD), partly thanks to their inflation-topping dividend yields at around 8.6%, 5.25%, and 11.4% respectively. Adding to that list in April was a new addition, M&G Ordinary Shares (LSE:MNG), also thanks to its strong dividend yield of around 10%. Another FTSE 100 heavyweight, BAE Systems (LSE:BA.), continues to attract much investor buying on the platform. Shares have gained around 20% year-to-date underpinned by strong demand for defence spending amid the global geopolitical instability.

“Crossing the Atlantic, bitcoin stock market proxy MicroStrategy Inc Class A (NASDAQ:MSTR) remains in the top 10. Shares have gained around 50% so far in 2024, supported by the Securities and Exchange Commission (SEC’s) approval of several spot bitcoin ETFs in January. Elsewhere in the US, Tesla Inc (NASDAQ:TSLA) and NVIDIA Corp (NASDAQ:NVDA) continue to dominate ii customer portfolios. After a torrid start to the year, shares in Tesla have been regaining ground over the last month fuelled by its earnings report and CEO Elon Musk’s fruitful visit to China. Nvidia has had a tougher time in terms of its share price performance in April, but loyal investors clearly seized upon the pullback as an opportunity to buy.”

Funds and investment trusts 

Commenting on the most-bought funds and trusts on ii in April, Kyle Caldwell, Collectives Specialist at interactive investor, says: “In a month that saw the end of one tax year and the start of another, the same funds and investment trusts continued to grab investors’ attention, with just two changes in our top 10 tables.

“For funds, Vanguard FTSE Global All Cap Index was a new entry at the expense of Vanguard LifeStrategy 60% Equity. While for investment trusts, BlackRock World Mining Trust Ord (LSE:BRWM) replaced India Capital Growth. Both new entrants are no strangers to the top 10, with Vanguard FTSE Global All Cap Index last appearing in the list in January, and BlackRock World Mining last featuring in February.

“There was a change at the top, with Vanguard LifeStrategy 80% Equity swapping places with Fundsmith Equity, managed by Terry Smith. Up until last November, Fundsmith Equity had been in pole position in our list since March 2021. However, it has of late been facing greater competition for the top spot.

“However, while there were only two changes last month, over the past year there has been plenty of movement. In fact, only five funds and four investment trusts have consistently retained a place in the top 10 over the past year. The five fund favourites are Fundsmith Equity, Royal London Short Term Money Market, Vanguard LifeStrategy 100% Equity, Vanguard LifeStrategy 80% Equity and Vanguard US Equity Index. Meanwhile, the four trusts treasured by investors are Scottish Mortgage Ord (LSE:SMT), Alliance Trust Ord (LSE:ATST), Greencoat UK Wind, and City of London.

“There are a couple of trends among those nine funds and trusts. One is a preference to “go global” to gain diversification, which is one of the golden rules of investing. Going global has also meant that investors have been able to benefit from the artificial intelligence (AI) theme, which has led to soaring share prices for a small number of US technology companies.

“Another trend is income-seeking investors seeking a high starting yield. This is reflected in the consistent popularity of Royal London Short Term Money Market, Greencoat UK Wind (LSE:UKW) and City of London Ord (LSE:CTY) over the past year. The trio invest differently, but one thing they have in common is that they are currently delivering attractive yields.

“Royal London Short Term Money Market has a yield of 5.2%, achieved by investing in high-quality bonds with a short lifespan.

“Greencoat UK Wind, which as the name suggests invests in UK wind assets, has a yield of 7%. It has a stellar dividend track record, having grown payouts ahead of RPI inflation each year over the past decade.

“Finally, City of London’s yield of 4.9% is achieved through mainly invested in dividend-paying FTSE 100 firms. Manager Job Curtis, who has been at the helm since 1991, adopts a conservative approach by focusing on companies with good cash generation. City has raised its dividend for 57 years in a row, a remarkable level of consistency that is prized by many investors.”

MOST-BOUGHT INVESTMENTS ON INTERACTIVE INVESTOR (ii) IN APRIL 2024