Interactive Investor

Most-bought investments: November 2021

2nd December 2021 14:24

Jemma Jackson from interactive investor

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

2021 has been a good year-to-date performance-wise for global markets, even after recent volatility inspired by fears over the Omicron variant. But it’s not over yet. Uncertainty over inflation, interest rates, supply side shortages, and Covid, among other factors, means it has been less than plain sailing for investors.

Amid the uncertainty, customers of interactive investor, the UK’s second-largest DIY investment platform, continue to hold out long-term hope for airlines once the dust has settled. easyJet (LSE:EZJ) and International Consolidated Airlines Group (LSE:IAG) each made the top 10 over the year to date, with the latter the most-bought direct equity in November.

Rolls-Royce (LSE:RR.) is another nod to the airline theme. It was the most-bought direct share in 2021 over the year to date and in third place in November. Depending on how many hours its engines fly, any return to normality can only be good news for this UK engineering great.

Investors have flocked to funds managed by asset management firms Vanguard and Baillie Gifford, which account for eight out of the 10 bestselling funds on interactive investor over the year to date (1 January to 30 November 2021). Fundsmith Equity, however, is rooted at the top.

There is an even split of active and passive strategies, and overall, the prevailing theme for 2021 was global, with global strategies accounting for seven out of 10 funds bestsellers and half the top 10 most-bought investment trusts.

Appetite to the UK was subdued, with City of London (LSE:CTY) the only UK-focused investment trust to make the cut and none among the top 10 fund bestsellers.

There was also some interest in China-focused strategies, with Baillie Gifford China (ninth position) ranking among the top of the most-bought funds and Fidelity China Special Situations (LSE:FCSS) (sixth position) on the list of investment trust bestsellers. This could be because the country and a host of Asian countries appear to have fared better at controlling the virus.

November bestsellers

Global fund LF Blue Whale Growth was the sole newcomer on the fund bestsellers list in November, ranking in 10th position. It is one of eight global strategies in the top 10, with Fundsmith Equity in a familiar position at the helm, followed by Vanguard LifeStrategy 80% Equity and Baillie Gifford Positive Change in second and third positions, respectively.

There were two new additions to our list of the most-bought investment trusts among interactive investor customers in November: Allianz Technology (LSE:ATT) in second position and Alliance Trust (LSE:ATST) in seventh.

HarbourVest Global Private Equity (LSE:HVPE) (fourth position) makes the top 10 cut for the second month in a row and Scottish Mortgage (LSE:SMT) once again secured the number one spot.

Lee Wild, Head of Equity Strategy, interactive investor, says: “The vulnerability of airlines to any further lockdowns or travel restrictions was laid bare this past week as the Omicron variant grounded flights out of South Africa. The UK government’s decision to restrict access to the UK from the region was swiftly followed by others. That clearly has an impact on the larger long-haul carriers such as British Airways and shares in owner International Consolidated Airlines hit a one-year low last month.

“However, the potential for a recovery once the dust settles continues to attract buyers with a longer-term view. It’s the same with easyJet, another popular stock that could do well when we get further clarity on travel access abroad, especially in Europe where some countries are being hit hard with fresh Covid outbreaks.

“It’s been a year since Rolls-Royce raised £2 billion to see it through the pandemic, and those who took part in the fundraise are in the money. But Rolls is paid depending on how many hours its engines fly, so any disruption whether it be Covid, or other events are unhelpful. Any return to normality can only be good news for this UK engineering great.

“A slump in its share price has guaranteed that Darktrace’s stay in the FTSE 100 index will be a short one. Profit-taking by a major shareholder and doubts in the City that the revenue opportunity justified Darktrace’s valuation, have halved the share price. But the shares now trade near to one analyst’s price target, suggesting to some that selling pressure may be easing. While not out of the woods, investors are beginning to take an interest again.”

Dzmitry Lipski, Head of Funds Research, interactive investor, says: “Global markets sailed into 2021 on a wave of optimism from the vaccine roll-out and various economic stimulus packages fuelling sentiment of a return to pre-pandemic normalcy. Despite some bumps in the form of new Covid variants, high inflation as well as geopolitical disputes, markets have recovered strongly, with the major indices recording double-digit percentage growth since the start of the year.

“Our customers have favoured funds and trusts with a strong brand and clear strategy. Baillie Gifford and Vanguard have been the biggest winners, boasting a number of funds on bestsellers list. But it has been a game of two halves, with Baillie Gifford funds dominant in the first part of the year before a surge in popularity in Vanguard-managed funds in the latter half.

“The biggest losers are UK funds, which fell out of favour amid the Brexit uncertainty. Brexit is now out of the way but almost a year after it took full effect, the consequences of Britain’s split from the European Union are still unfolding. However, a reasonable allocation to the UK could provide diversification and a potential recovery opportunities in 2022.”

Top 10 most-bought investments on interactive investor year to date (to 30 November)

Position  Fund Investment trust Equity Overall
1 Fundsmith Equity Scottish Mortgage (LSE:SMT) Rolls-Royce (LSE:RR.) Rolls-Royce (LSE:RR.)
2 Vanguard LifeStrategy 80% Equity Edinburgh Worldwide (LSE:EWI) Argo Blockchain (LSE:ARB) Argo Blockchain (LSE:ARB)
3 Baillie Gifford Positive Change City of London (LSE:CTY) International Consolidated Airlines Group (LSE:IAG) Scottish Mortgage (LSE:SMT)
4 Baillie Gifford American BlackRock World Mining Trust (LSE:BRWM) Lloyds Banking Group (LSE:LLOY) International Consolidated Airlines Group (LSE:IAG)
5 Vanguard LifeStrategy 60% Equity Monks (LSE:MNKS) BP (LSE:BP.) Lloyds Banking Group (LSE:LLOY)
6 Baillie Gifford Global Discovery Fidelity China Special Situations (LSE:FCSS) ITM Power (LSE:ITM) BP (LSE:BP.)
7 Vanguard LifeStrategy 100% Equity Smithson (LSE:SSON) easyJet (LSE:EZJ) ITM Power (LSE:ITM)
8 Vanguard US Equity Index Baillie Gifford US Growth (LSE:USA) GlaxoSmithKline (LSE:GSK) easyJet (LSE:EZJ)
9 Baillie Gifford China Pacific Horizon (LSE:PHI) Tesla Inc (NASDAQ:TSLA) GlaxoSmithKline (LSE:GSK)
10 L&G Global Technology Index Polar Capital Technology Trust (LSE:PCT) Boohoo Group (LSE:BOO) Tesla Inc (NASDAQ:TSLA)

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

Position

Fund

Investment trust

Equity

1

Fundsmith Equity

Scottish Mortgage (LSE:SMT)

International Consolidated Airlines Group (LSE:IAG)

2

Vanguard LifeStrategy 80% Equity

Allianz Technology (LSE:ATT)

Lloyds Banking Group (LSE:LLOY)

3

Baillie Gifford Positive Change

City of London (LSE:CTY)

Rolls-Royce (LSE:RR.)

4

L&G Global Technology Index

HarbourVest Global Private Equity (LSE:HVPE)

Tesla Inc (NASDAQ:TSLA)

5

Vanguard LifeStrategy 60% Equity

Smithson (LSE:SSON)

BP (LSE:BP.)

6

Vanguard US Equity Index

Capital Gearing (LSE:CGT)

easyJet (LSE:EZJ)

7

Vanguard LifeStrategy 100% Equity

Alliance Trust (LSE:ATST)

Vodafone Group (LSE:VOD)

8

Rathbone Global Opportunities

Pacific Horizon (LSE:PHI)

Darktrace (LSE:DARK)

9

Baillie Gifford American

Edinburgh Worldwide (LSE:EWI)

Boohoo Group (LSE:BOO)

10

LF Blue Whale Growth

Monks (LSE:MNKS)

THG (LSE:THG)

 

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.

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