Top 10 most-purchased ETFs in May 2024

There were no changes among the four most-bought exchange-traded funds (ETFs) in May.  

Vanguard’s S&P 500 tracker funds held on to the top two most-bought spots, with the distribution version of the tracker, which both cost 0.07% a year in fees, just ahead of the accumulation version. The trackers are up 24.4% in one year and 44.3% in three years. 

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In third and fourth place were iShares Core MSCI World ETF USD Acc GBP (LSE:SWDA) and iShares Physical Gold ETC. 

SWDA owns around 1,500 shares from developed markets and is a Super 60-rated “core” fund for investors looking for a simple global tracker fund. It is a top-quartile performer compared with all global funds, active or passive, over one, three and five years. With fees at just 0.2% a year, it shows the investment power of owning the market for a low cost.  

Also managed by BlackRock, the gold ETF is also performing well, rising 16.2% over the past 12 months. Gold has been in demand due to geopolitical uncertainty and central bank purchases, causing it to rise despite investors pricing in higher interest rates for longer. The gold price is usually influenced by interest rates, as higher rates make income-paying assets relatively more attractive than gold, with falling rates generally a boost for the precious metal. 

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Up three places to fifth was iShares Core FTSE 100 Ucits ETF. UK shares are enjoying a strong period of performance, up about 9% this year, which is similar to global shares. This ETF has an annual dividend yield of nearly 4%, which may appeal to income seekers. 

There were three global trackers from Vanguard on the most-bought ETF list last month: Vanguard FTSE All World Ucits ETF (dis), Vanguard FTSE All-World ETF USD Acc GBP (LSE:VWRP) (acc) and Vanguard FTSE Developed World Ucits ETF (acc).  

The first two ETFs track global markets including emerging market shares, while the Developed World ETF excludes emerging markets. They cost and 0.22% and 0.12% a year.  

The final two ETFs on the list were Invesco Nasdaq 100 Ucits ETF and iShares Core S&P 500 Ucits ETF. 

The Nasdaq tracker is a popular way of adding technology shares to a portfolio. The largest positions include top-performing tech giants such as Microsoft, Nvidia and Apple, which has helped the ETF to a 53% return over three years.  

iShares Core S&P 500 Ucits ETF tracks the 500 largest US shares for the same price as the Vanguard rival: 0.07% a year. Returns have therefore been comparable.  

Top 10 most-popular ETFs in May 2024 

Performance data sourced from FE Fundinfo. Performance data to 31 May 2024. Rankings are based on the number of “buys” during May 2024.