How did an eventful month affect the ETF choices of investors?
November was an eventful month for markets. First, there was the US presidential election. Soon after came news of a couple of successful Covid-19 vaccines, sending markets around the world into an optimistic rally. In particular, value and other cyclical stocks increasingly started to outperform, leading some to suggest that we were seeing a major “market rotation”.
However, there was little change in the ETFs being bought among interactive investor customers.
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However, the entry and exit of these two ETFs appears not to be suggestive of any broader pattern. While L&G’s leveraged FTSE 100 ETF has fallen out of the top 10, there was still plenty of bullishness towards the FTSE 100. iShares Core FTSE 100 ETF (LSE:ISF) kept its place in the number one spot, as did rival Vanguard FTSE 100 ETF (LSE:VUKE).
Both FTSE 100 trackers have one-year losses of just over 10%. However, in November both experienced gains of more than 14%.
The WisdomTree FTSE 100 3x Daily (LSE:3UKL) also kept its place in the rankings, albeit falling by three places. Leveraged ETFs provide investors with the daily performance of the index multiplied by a certain amount. These products are considered very risky and not suitable to be held for more than a day, as previously explained.
Investors continued to keep an interest in the iShares Global Clean Energy ETF USD Dist GBP (LSE:INRG), a member of interactive investor’s ACE 40 list of ethical options. The ETF has produced strong performance over the past year, returning investors more than 108%.
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The Vanguard FTSE All-World ETF (LSE:VWRL) also retained its place in the rankings, albeit falling by a couple of places. The ETF, which follows the fortunes of 3,455 shares, charges just 0.22% a year.
Investors still appear to have some interest in gold, with the iShares Physical Gold ETC GBP (LSE:SGLN) maintaining fifth place in the list. Gold has rallied this year, with the price hitting a new all-time high in the summer. Appetite, however, appears to be cooling, with other precious metals ETFs falling out of the table over the past few months.
The top 10 most-bought ETFs in November
|ETF||Change from October||One-year performance to 1st December||Three-year performance to 1st December|
|1||iShares Core FTSE 100 ETF||No change||-10.5||-2.3|
|2||iShares Global Clean Energy ETF||No change||108.9||180.9|
|3||Vanguard FTSE 100 ETF||No change||-10.6||-2.5|
|4||Vanguard S&P 500 ETF||2||13.6||44.5|
|5||iShares Physical Gold ETC||No change||17.9||40|
|6||Vanguard FTSE 250 UCITS ETF||3||-4.9||4.6|
|7||WisdomTree FTSE 100 3x Daily||-3||-47.3||-41.8|
|8||Invesco EQQQ NASDAQ-100 ETF||No change||42.1||98.7|
|9||Vanguard FTSE All-World ETF||-2||11.2||31.1|
|10||iShares Core MSCI World UCITS ETF||new entry||11.8||34.4|
Source: FE Analytics. Note: the top 10 is based on the number of “buys” during the month of November.
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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