Most-bought investments: July 2024

• AI darling Nvidia is top equity pick in July
• Smaller companies show signs of recovery, with Helium One Global leading the pack of most-bought equities 
• AI and technology continue their streak of popularity with investors – Tesla jumps into the top three most-bought equities, despite disappointing earnings

interactive investor, the UK’s second-largest platform for private investors, reveals its most-bought equities, funds, and investment trusts in July 2024.

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Technology continues to draw in ii customers – with the L&G Global Technology Index holding the number one funds' spot, and Polar Capital Technology Ord (LSE:PCT) and Allianz Technology Trust Ord (LSE:ATT)taking the fifth and sixth spot for investment trusts. 

And small-cap shares, which have made something of a resurgence in recent months, are represented in ii’s latest top 10. Helium One Global Ltd Ordinary Shares (LSE:HE1) got investors excited in July as it issued updates on its drilling project in Tanzania. The stock rose to second place on the ii most-bought equities list after its share price doubled at one point last month.

EV giant Tesla Inc (NASDAQ:TSLA) made it to the top three equities in July, despite disappointing Q2 2024 earnings that were revealed towards the end of the month. 

National Grid (LSE:NG.), which made the top five in June, dropped out of the list in July. 

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

Funds and investment trusts

Commenting on the most-bought funds and trusts on ii in July, Kyle Caldwell, Funds and Investment Education Editor at interactive investor, says: “While the world’s biggest tech companies have over the past couple of weeks seen their share prices wobble, many investors are positioning themselves for the bull run to continue. 

“Among our most-bought funds in July, L&G Global Technology Index retained top spot. It has been a strong performer over both short and long time periods, more recently benefiting from a narrow cohort of tech stocks driving both US and global markets higher. However, bear in mind that it has become very concentrated, with around 15% each in Apple, Microsoft and Nvidia. 

“For investment trusts, technology duo Polar Capital Technology and Allianz Technology Trust are fifth and sixth in the rankings. For both trusts a key theme is investing in companies positioning to be direct beneficiaries of advancements in artificial intelligence (AI). Another key sector for the duo is cybersecurity. 

“Among ETFs appearing in the top 10 most-bought in July are Invesco Nasdaq 100 ETF, iShares S&P 500 Information Technology Sector and VanEck Semiconductor ETF. 

“Another trend playing out is that investors on the lookout for high income. An investment trust sector some of our customers have been eyeing up, which may benefit from interest cuts, is renewable energy infrastructure.

“In our top 10 trust table are Greencoat UK Wind and NextEnergy Solar Fund, which yield 7% and 10%. While the yields are typically higher for those investment trusts, investors have as rates have been rising been focusing on lower-risk areas where yields have risen. For example, cash-like money market funds are offering yields of around 5%. The Bank of England’s move to cut the Base Rate to 5%, and the prospect of further cuts in store, may give this out-of-form sector a boost.”

Equities

Commenting on the most-bought direct equities in July, Victoria Scholar, Head of Investment, interactive investor, says: “Despite July being an uncharacteristically challenging month for Nvidia’s share price, the AI stock market darling continues to attract much buying interest from retail investors on the interactive investor platform – it retained its crown as the most-bought single stock in July.

“Elsewhere within the Magnificent Seven, Tesla jumped from 10th place up to third. Even after accounting for its weak results, which sent shares sharply lower in July, the electric vehicle giant had a strong month in terms of price action overall in July. The stock rebounded by around 10%, allowing it to narrow its year-to-date loss with retail investors snapping up shares along the way. 

“interactive investor customers continue to find themselves drawn to popular FTSE 100 names including BP, Legal & General, and Rolls-Royce, a star performer over the last year and a half. Other FTSE 100 names joined the most-bought list in July including Rio Tinto, easyJet and Lloyds Bank, all with earnings reports driving the focus.   

“Helium One climbed up the ranks last month thanks to its soaring share price. It is by far the most bought small-cap share on the ii platform this year. Investors are paying close attention to any news developments after it raised money for a drilling programme for helium in Tanzania in February.”

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