Top 10 most-purchased ETFs in March 2024

An exchange-traded fund (ETF) investing in semiconductor stocks was the biggest mover last month, rising from 10th to fifth place. 

VanEck Semiconductor ETF owns companies globally that are involved in the computer-chip supply chain, from manufacturing to designing. Chips are the brains behind computers and are used to power artificial intelligence (AI) algorithms. This has led to a huge increase in demand, and plenty of profit for companies involved. Over the past 12 months this ETF – whose largest positions are Nvidia, Broadcom and ASML – is up 60.3%.  

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Another technology ETF on the list is iShares S&P 500 Information Technology Sector Uctis ETF, down three places to 10th.  

It owns the technology shares that form part of the S&P 500 index of America’s largest companies, including Microsoft (24% position), Apple (18.5%) and Nvidia (17%).  

Invesco Nasdaq 100 Ucits ETF is also effectively a technology tracker fund. In seventh place on the March most-bought list, it owns the largest stocks on the Nasdaq exchange, which counts Microsoft, Amazon, Apple and Nvidia as members.  

These three ETFs, due to their concentration and high valuation of the portfolios, are likely to be volatile. Therefore, investors need to have a stomach for risk.  

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The three most-popular ETFs were unchanged in March: Vanguard’s S&P 500 ETFs, which distribute (VUSA) or reinvest (VUAG) dividends. Both charge 0.7% a year. In third place is the iShares Core MSCI World ETF (LSE:SWDA), which tracks around 1,500 developed world shares for 0.2% a year in fees. Dropping off the list last month was Vanguard FTSE Developed World Ucits ETF, which runs a similar portfolio to SWDA.  

Rising one place to fourth was Vanguard FTSE All-World UCITS ETF GBP (LSE:VWRL) (dis). This ETF also tracks global shares, but also includes emerging markets, which account for about 7% of the portfolio. It owns 3,672 stocks and costs 0.22% in annual fees. The version of this ETF that reinvests dividends was also popular, in sixth place, and trades on the London Stock Exchange with the ticker VWRP.   

iShares Core FTSE 100 ETF GBP Dist, ticker ISF, was a new entry in eighth place. Popular with income investors, the FTSE 100 has a 3.8% dividend yield, with income paid out every three months with this ETF. The FTSE 100 index has recently made new highs, surpassing 8,000 points, but has still been a laggard versus US and European stock market indices over the past decade.  

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However, many commentators expect the UK market’s fortunes to change, as valuations are simply too cheap to ignore and lower interest rates – expected later this year – could boost the flagging economy.  

Finally, dropping one place to ninth, was iShares Core S&P 500 Ucits ETF (acc). Tracking the largest US shares for just 0.07%, this is an effective way of owning America’s top stocks for a very low fee.  

Top 10 most-popular ETFs in March 2024

Source: FE FundInfo/interactive investor,  2 April 2023. The top 10 is based on the number of “buys” during the month of March 2024.