Most-bought investments: January 2024
AI excitement carries into the new year as US tech continues to dominate.
1st February 2024 15:58
by Camilla Esmund from interactive investor
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- Scottish Mortgage maintains its position as the most-popular investment trust among ii customers
- Investor interest in AI and US tech remain strong, with L&G Global topping the list of most-bought funds in January
- Nvidia, at number five, is a standout performer so far, this year - experiencing a 27% surge in January
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 January 2024.
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Investor focus has been on tech-centric funds and investment trusts, with the L&G Global Technology Index taking the spotlight. In addition, Allianz Technology Trust Ord (LSE:ATT) re-entered the 10 most-popular investment trusts, joining Polar Capital Technology Ord (LSE:PCT). Both trusts boast significant exposure to American tech giants and key sectors like artificial intelligence (AI) and cybersecurity. Polar Capital Technology returned to the top 10 in December 2023. Prior to that, the last time the tech duo featured in the top 10 was last summer.
Scottish Mortgage remains the firm favourite, and also has a tech-focus, with holdings such as Meta Platforms Inc Class A (NASDAQ:META) and NVIDIA Corp (NASDAQ:NVDA), which also play to the AI theme.
The stock market narrative of 2023 was dominated by the burgeoning excitement surrounding AI and its potential to disrupt various industries. Despite the surge in share prices, particularly among the renowned "Magnificent Seven" US tech giants, investors remain bullish on the lasting impact of the AI theme in 2024.
Below, ii explores its most bought data in more depth.
Funds and investment trusts
Kyle Caldwell, Collectives Editor, interactive investor, says: “In January, tech–centric investments took the spotlight, with L&G Global Technology Index topping the most-popular fund list in January. In addition, Allianz Technology is a new entrant to the top 10 most-popular investment trust table joining rival Polar Capital Technology.
“L&G Global Technology Index holds five of the so-called Magnificent Seven stocks in its top 10 positions, with the two exceptions being Amazon.com Inc (NASDAQ:AMZN)n and Tesla Inc (NASDAQ:TSLA). Investors buying this passive strategy need to be comfortable with its top two holdings, Apple Inc (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT), having huge individual weightings of 17%.
“Both Allianz Technology and Polar Capital own six of the seven American tech giants in their top 10 holdings, except for Tesla. As well as AI, another key sector for the duo is cybersecurity.
“Scottish Mortgage Ord (LSE:SMT), the most-popular investment trust with our customers in January, also provides exposure to the AI theme. The innovation-focused portfolio recently bought back shares in Meta (formerly known as Facebook), and also owns Nvidia.”
Caldwell adds: “Given how prevalent US technology stocks are in global and US funds, both active and passive, it is worth investors having a quick look under the bonnet to assess whether they already have a lot of exposure to the AI theme. While the theme looks here to stay, share prices don’t move up in a straight line, so there will be the inevitable pullbacks in share prices along the way.
“As ever, while it sounds boring, the key to a smoother stock market ride is to have plenty of diversification, which is achieved by having a mixture of asset classes, countries and investment styles. If a portfolio becomes over-reliant on one type of investment or theme it can work well for a period but can also quickly turn sour.”
Equities
Victoria Scholar, Head of Investment, interactive investor, says: “As usual, FTSE 100 heavyweights continue to attract strong demand from interactive investor customers with Lloyds Banking Group (LSE:LLOY), Legal & General Group (LSE:LGEN), Glencore (LSE:GLEN), and BP (LSE:BP.) landing on the list of most-bought stocks on the ii platform in January. JD Sports Fashion (LSE:JD.) is a new member on the list. After a rough start to the year with shares plunging 20% after a profit warning, its discounted price has attracted opportunistic investors to purchase shares.
“In the United States, despite an extremely challenging start to 2024 for Tesla Inc (NASDAQ:TSLA), investors continue to purchase shares, perhaps taking the EV giant’s slide since December as an opportunity to load up on more stock. Unlike Tesla, however, Nvidia continues to go from strength-to-strength in 2024 – it has become a proxy play for the artificial intelligence market frenzy. It has reclaimed its spot among the most-popular stocks on the ii platform to start the year, and its shareholders have enjoyed a 27% jump this January alone, extending last year’s surge.”
Top 10 most-bought investments on interactive investor in January 2024
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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.