Interactive Investor

The top 10 most-purchased ETFs in May 2023

2nd June 2023 11:08

by Sam Benstead from interactive investor

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Hype around artificial intelligence increased demand for a Nasdaq tracker fund, writes Sam Benstead

Most-popular ETFs 600

A strong rebound for technology stocks in May, fuelled by excitement about artificial intelligence, led to a new entry on the most bought exchange-traded fund (ETF) list: the Invesco EQQQ Nasdaq 100 Uctis ETF.

Tracking the 100 largest companies on the Nasdaq index, including tech giants Amazon, Nvidia and Apple, this ETF rose nearly 10% for the month, well ahead of the 5% drop for the FTSE 100, 1.8% gain for the S&P 500 and 0.4% gain for the MSCI World index.

Despite poor performance for the UK’s largest shares, the iShares Core FTSE 100 Ucits ETF rose four places to be the second most bought ETF, behind only the Vanguard S&P 500 Ucits ETF (distributing), which held onto the top place.

Other popular UK and US trackers included Vanguard S&P 500 Ucits ETF (accumulating), in seventh place, and Vanguard FTSE 100 Ucits ETF (distributing), in eighth place. These funds were in sixth and tenth place in April. 

Up one place to third was the iShares Core MSCI World Ucits ETF, a member of interactive investor’s Super 60 list of recommended funds. This ETF owns 1,511 stocks from across the developed world for a fee of just 0.2%. It has risen around 5% in value this year.

Another popular global tracker is Vanguard FTSE All World Uctis ETF. In fifth place for May, it owns more shares, at 3,688, than the BlackRock rival. It is also slightly more expensive, at 0.22% in fees, but includes emerging market shares as well, such as Chinese stocks.

Vanguard FTSE All World High Dividend Yield ETF was in tenth place, down four places on last month.  By owning around 1,800 global companies with higher than average dividend yields, it gives investors cheap access to income-producing stocks from around the world.

Dropping down the list was the iShares Physical Gold ETC. The second most-bought ETF in April, it fell to fourth, as the gold price dropped about 4% in dollar terms during May.

WisdomTree FTSE 100 3x Daily Leveraged Ucits ETF was in sixth place as another new entry. This ETF use financial contracts to amplify the gains – and losses – of the FTSE 100 index. It is therefore much riskier than a normal ETF, and investors should do their homework before buying one of them.

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.

Falling off the most bought list last month were the Lyxor Smart Overnight Return Ucits ETF and iShares Core S&P 500 Ucits ETF

PositionETFChange from AprilOne-year performance to 1 June 2023 (%)Three-year performance to 1 June 2023 (%)
1Vanugard S&P 500 Ucits ETF (distributing)No change4.743.1
2iShares Core FTSE 100 Ucits ETFUp four2.737.6
3iShares Core MSCI World Ucits ETFUp one4.637.7
4iShares Physical Gold ETCDown two7.712.1
5Vanguard FTSE All World Uctis ETFDown two3.434
6WisdomTree FTSE 100 3x Daily LeveragedNew entry-5.384
7Vanguard S&P 500 Ucits ETF (accumulating)Down one4.843.1
8Vanguard FTSE 100 Ucits ETF (distributing)Up two2.637.5
9Invesco EQQQ Nasdaq 100 Uctis ETFNew entry15.951.4
10Vanguard FTSE All World High Dividend Yield ETFDown four-1.936.4

Source: FE FundInfo/interactive investor, 1 June. Note: the top 10 is based on the number of “buys” during the month of May.

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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