Interactive Investor

Most-bought investments: May 2021

2nd June 2021 12:11

Jemma Jackson from interactive investor

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We reveal the most-popular funds, trusts and shares on the interactive investor platform.

UK funds saw a pick-up in popularity, while US funds experienced a fall in popularity on interactive investor in May. In a turn up for the bestsellers' tables, China and Asia Pacific-focused funds and investment trusts fell out of the rankings altogether having been a popular theme over the last several months.

Baillie Gifford dominated fund purchases in 2020 and in the first quarter of 2021, but latest data from interactive investor, the UK’s second-largest DIY investment platform, suggests investors are starting to switch to passive strategies.

Baillie Gifford and Vanguard jostled for dominance in the interactive investor top 10 bestsellers' list in May, with Baillie Gifford taking three places to Vanguard’s four.

Direct equity purchases had something of a new energy flavour, with British hydrogen stock ITM Power (LSE:ITM) in first place, Tesla (NASDAQ:TSLA) in ninth, and the lithium-focused Kodal Minerals (LSE:KOD) in seventh place (lithium is used to make batteries for electric cars and mobile phones). Blue chips such as BP (LSE:BP.) and Vodafone (LSE:VOD) also sat alongside International Consolidated Airlines (LSE:IAG) and Rolls-Royce (LSE:RR.) in the top 10, while Argo Blockchain (LSE:ARB), arguably a crypto play, remains popular in third place.

Funds – UK comeback?

In a sign that sentiment towards the UK is heating up, MI Chelverton UK Equity Growth joined UK small -cap fund Marlborough Nano Cap Growth in the top 10.

There were some constants. Fundsmith Equity retained its crown in first place, with Vanguard LifeStrategy 80% Equity still in second place.

Vanguard LifeStrategy 60% Equity, the 100% Equity option and the Vanguard US Equity Index fund are also among the four funds by the US-based asset manager in the rankings, in third, sixth and eighth positions, respectively.

Baillie Gifford’s showing in the top 10 funds were Baillie Gifford American (fourth and one of two US fund in May, compared to three in April), Baillie Gifford Positive Change (seventh), and Baillie Gifford Global Discovery (ninth).

Investment trusts

On the investment trust front, there were two new entrants in our top 10 most-bought table for May.

Tech-centric Polar Capital Technology Trust (LSE:PCT) is the highest ranking of the two new entrants, in third position (at the expense, perhaps, of Allianz Technology (LSE:ATT), which had been in the top 10 the previous month). Cautiously positioned multi-asset portfolio Capital Gearing (LSE:CGT) in eight position, was the other new entrant on the previous month.

Of the eight trusts remaining in the top 10, just one is in an unchanged position from April: Scottish Mortgage (LSE:SMT) – which once again retains the number one spot.

Moving up three places into second position is BlackRock World Mining Trust (LSE:BRWM). In fourth and fifth place are City of London (LSE:CTY) and Edinburgh Worldwide (LSE:EWI). Both slipped two places.

In the bottom half of the top 10, Baillie Gifford US Growth (LSE:USA) climbed two positions to take sixth place. Monks (LSE:MNKS) fell three places to seventh, while Alliance Trust (LSE:ATST) and Smithson (LSE:SSON) swapped places in ninth and tenth.

Interestingly, there were no China-focused investment trusts in the top 10 in May, nor Asia-focused trusts, and the same applied to funds. This marks a significant turnaround on recent months.

Myron Jobson, Personal Finance Campaigner, interactive investor, says: “The strong vaccine roll-out, as well as an improved forecast for the UK economy has renewed appetite for UK funds, with MI Chelverton UK Equity Growth making the top 10 cut in May, joining Marlborough Nano Cap Growth and investment trust City of London.

“Our customers are still favouring global portfolios, which account for sixth of the top 10 fund bestsellers, but it is interesting to see that China and Asia Pacific-focused funds and investment trusts have completely fallen out of the top 10 this month.

“It is interesting to see that our customers flocked to cautiously positioned multi-asset investment trust Capital Gearing in what was a tumultuous month for global markets amid inflation fears. It has a low weighting to equities (less than 20%) and plenty of defensive armoury through inflation-linked bonds and a small weighting to gold. The trust helped protect investors' cash during last year’s Covid-19 sell-off. Investors will hope the trust does the same amid inflation concerns.”

Commenting on the most-bought equities, Keith Bowman, Equity Analyst, interactive investor, says: “Travel-related stocks such as IAG and Rolls-Royce remained in focus as investors continued to assess recovery prospects under the ongoing global pandemic.

“Argo Blockchain has stayed in the sights of investors as a way to gain exposure to the burgeoning cryptocurrency arena, while both Tesla and ITM Power are being seen through the prism of changing energy requirements under global climate change requirements.”

Top 10 most-bought investments on interactive investor in May 2021

Position Fund Investment trust Equity
1 FUNDSMITH EQUITY SCOTTISH MORTGAGE ITM POWER
2 VANGUARD LIFESTRATEGY 80% EQUITY BLACKROCK WORLD MINING TRUST VODAFONE GROUP
3 VANGUARD LIFESTRATEGY 60% EQUITY POLAR CAPITAL TECHNOLOGY TRUST ARGO BLOCKCHAIN PL
4 BAILLIE GIFFORD AMERICAN CITY OF LONDON INTL CONS AIRLINE
5 MARLBOROUGH NANO CAP GROWTH P EDINBURGH WORLDWIDE LLOYDS BANKING GP
6 VANGUARD LIFESTRATEGY 100% EQUITY BAILLIE GIFFORD US GROWTH ROLLS ROYCE HLDGS
7 BAILLIE GIFFORD POSITIVE CHANGE MONKS  KODAL MINERALS PLC
8 VANGUARD US EQUITY INDEX CAPITAL GEARING  BP
9 BAILLIE GIFFORD GLOBAL DISCOVERY ALLIANCE TRUST TESLA INC
10 MI CHELVERTON UK EQUITY GROWTH SMITHSON  BOOHOO GROUP PLC

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.

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