The top 10 most-purchased ETFs in August 2022
1st September 2022 12:00
by Sam Benstead from interactive investor
Investors continued to buy American even as shares tumbled in the second half of the month.
Exchange-traded fund (ETF) investors increased their exposure to the US stock market in August, as markets continued their summer recovery before turning south in the final weeks of the month.
The Vanguard S&P 500 ETF (distributing) kicked the iShares Core FTSE 100 ETF off the top spot as US shares outpaced British peers in the first half of August.
The Vanguard S&P 500 Ucits ETF (accumulating) rose from sixth place to fourth place and the iShares Core S&P 500 ETF was a new entry in 10th place.
- Find out about: Free regular investing | Interactive investor Offers | ii Super 60 Investments
The S&P 500 was up 5% by 19 August, while the FTSE 100 was up 2%. However, following a hawkish pivot from the US central bank, stocks fell sharply and the S&P 500 finished flat for the month with the FTSE 100 down 1%.
The Nasdaq 100 index tracked a similar course, rising about 6% before crashing and finishing the month down around 5%.
US Federal Reserve boss Jerome Powell said at the Jackson Hole central bankers’ summit that it would “keep at it until the job is done”, suggesting higher interest rates for longer in a bid to rein in rampant inflation.
- 10 things to know about investing in volatile markets
- Can index funds and ETFs protect against inflation?
The trend of interactive investor customers buying more US shares was also visible in July as US shares rose about 10%.
However, some investors have positioned to attempt to profit from declines in US tech shares. The WisdomTree Nasdaq 100 3x Daily Leveraged Short, which delivers three times the inverse daily performance of the biggest companies on America’s tech-heavy Nasdaq exchange, was another new entry to the top 10.
Investors should be careful here, though, as although there are potential gains to be made, they could experience huge losses too. The promotional literature of many leveraged products specifies that they should not be held for more than one day, and our article explains why in more detail.
- The risks of holding leveraged ETFs for more than one day
- ETF jargon buster: everything you need to know
For example, if the index falls by 1% over a day, then the WisdomTree Nasdaq 100 3x Daily Leveraged Short will rise by 3%, excluding fees. If the opposite plays out, with the index rising by 1% over a day, then the passive strategy will fall by 3%.
The iShares Global Clean Energy ETF was a new entry in the most-bought list, entering in third place. The Super 60 fund tracks the performance of around 100 companies involved in clean energy, from utilities to wind turbine manufacturers.
It had a strong start to the month, rising 6% in two weeks, before falling to finish the month flat after the comments made by Jerome Powell.
Global ETFs were less popular compared with July, with the Vanguard FTSE All-World ETF dropping from fourth to sixth place and the iShares Core MSCI World ETF falling from seventh to ninth.
The only UK passive strategy in the top 10 is the WisdomTree FTSE 100 3x Daily Leveraged Short, which rose from ninth to fifth place.
iShares Physical Gold ETC rose from the eighth most-bought ETF in July to the seventh most-bought in August. The gold price fell around 3% in August, from $1,759 an ounce to $1,720.
Falling off the most-bought list in August was the Invesco EQQQ Nasdaq 100 ETF, Vanguard FTSE 100 ETF, and WisdomTree FTSE 100 3x Daily Leveraged Long.
Top 10 most-popular ETFs in August 2022
| Position in August | ETF | Change from July | One-year return (%) | Three-year return (%) |
|---|---|---|---|---|
| 1 | Vanguard S&P 500 Ucits ETF (distributing) | Up one | 5.6 | 48.5 |
| 2 | iShares Core FTSE 100 Ucits ETF | Down one | 7.3 | 13.5 |
| 3 | iShares Global Clean Energy Ucits ETF | New entry | 13.8 | 117.5 |
| 4 | Vanguard S&P 500 Ucits ETF (accumulating) | Up two | 5.6 | 48.5 |
| 5 | WisdomTree FTSE 100 3x Daily Leveraged Short | Up four | 10.6 | -10.7 |
| 6 | Vanguard FTSE All-World Ucits ETF | Down two | 0.1 | 32.7 |
| 7 | iShares Physical Gold ETC | Up one | 12.7 | 18 |
| 8 | WisdomTree Nasdaq 100 3x Daily Leveraged Short | New entry | 43.8 | -94.4 |
| 9 | iShares Core MSCI World Ucits ETF | Down two | 1.3 | 36 |
| 10 | iShares Core S&P 500 Ucits ETF | New entry | 5.6 | 48.6 |
Source: Fe FundInfo, 31 August 2022. Note: the top 10 is based on the number of “buys” during the month of August.
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.