The top 10 most-purchased ETFs in June 2022
1st July 2022 12:19
Falling stock markets in June fuelled support for cheap, core exchange-traded funds.
Big, diversified, and relatively safe exchange-traded funds (ETFs) were the most popular among interactive investor customers in June.
ETFs tracking UK and US markets were the most bought, with the iShares Core FTSE 100 ETF rising from second to first place and the Vanguard S&P 500 Ucits ETF (distributing) dropping from first to second. The FTSE 100 tracker was a new entry in sixth place.
For under 0.1% in fees, they own the largest stocks in the US and Britain, making them a low-risk way of capturing total stock market performance. The ETFs both fell around 7% in June as investors attempted to price in the impact of a recession on profits, as well as the consequences of rising interest rates and inflation.
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This was similar to the average return from active funds, which fell 4.5% for those investing in US stocks and 7% for UK stocks.
- The top 10 most-purchased ETFs in May 2022
- The risks of holding leveraged ETFs for more than one day
- ETF jargon buster: everything you need to know
Global trackers were also in vogue, with the Vanguard FTSE All-World Ucits ETF and iShares Core MSCI World Ucits ETF retaining their places on the most-bought list. They cost around 0.2% to track thousands of stocks from around the world and often form the core of an investment portfolio.
Rising up the list, from fifth to third place, was the iShares Physical Gold ETC. It owns gold bars to track the price of gold, which was roughly flat in June at $1,812 an ounce.
Gold is tipped to perform well during periods of high inflation, but has failed to take off this year. One thing holding it back is higher interest rates. Because gold pays no income, it becomes less attractive relative to safe government bonds when interest rates rise.
Another big theme among ETF investors in June was oil and gas. The iShares Oil & Gas Exploration & Production Ucits ETF rose three places, from 10th to seventh place, as investors bought the dip in oil company share prices.
Recession fears caused the oil price and oil stocks to drop in June, sending this ETF down around 16%. Investors are betting that a slowdown in economic growth will affect the prices of commodities.
Investors also used leveraged ETFs, which use derivatives to amplify gains – and losses – by three times. The WisdomTree FTSE 100 3x Daily Leveraged was the fifth most-bought ETF, up three places, and the WisdomTree FTSE 100 3x Daily Short was a new entry in 10th place.
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.
Top 10 most-popular ETFs: June 2022
| Position | ETF | Change from May | One-year performance to 30 June (%) | Three-year performance to 30 June (%) |
|---|---|---|---|---|
| 1 | iShares Core FTSE 100 Ucits ETF | Up one | 7.8 | 9.6 |
| 2 | Vanguard S&P 500 Ucits ETF (distributing) | Down one | 2.5 | 42 |
| 3 | iShares Physical Gold ETC | Up two | 17.3 | 34.8 |
| 4 | Vanguard FTSE All-World Ucits ETF | No change | -2.8 | 27.2 |
| 5 | WisdomTree FTSE 100 3x Daily Leveraged | Up three | 12.8 | -19.8 |
| 6 | Vanguard FTSE 100 Ucits ETF (distributing) | New entry | 7.7 | 9.4 |
| 7 | iShares Oil & Gas Exploration & Production | Up three | 58.5 | 47.9 |
| 8 | iShares Core MSCI World Ucits ETF | Down two | -1.2 |
30.3 |
| 9 | Vanguard S&P 500 Ucits ETF (accumulating) | No change | 2.5 |
42 |
| 10 | WisdomTree FTSE 100 3x Daily Short | New entry | -31.5 | -64.9 |
Source: FE FUNDINFO, 30 June 2022. Note: the top 10 is based on the number of “buys” during the month of June.
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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