Interactive Investor

Top 10 most-purchased ETFs in September 2020

We examine the most popular ETFs among interactive investor customers.

2nd October 2020 16:46

by Tom Bailey from interactive investor

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We examine the most popular ETFs among interactive investor customers. 

The most popular ETF among interactive investor customers in September was once again the iShares Core FTSE 100 ETF (LSE:ISF). For a fee of just 0.07%, the ETF tracks the FTSE 100.

Despite the ETF’s popularity, the FTSE 100 index provided relatively weak performance over the course of September, with the index losing around 1.3% in price terms over the course of the month. However, that did not put off investors. The Vanguard FTSE 100 ETF (LSE:VUKE)was also included in the top 10, albeit one place below where it was in August. The ETF has a charge of 0.07%. The ETF came in as the second-most popular fund in September, climbing two places from the month prior.

Also appearing in the rankings was WisdomTree FTSR 100 3x Daily. This ETF offers investors three times the movements of the FTSE 100. Through striking deals with other parties such as banks, it aims to provide the return of the index it tracks by a certain multiplication. In this case, it intends to provide three times the FTSE 100’s daily movement, as the name suggests. This means that if the FTSE 100 goes up by 1% on a day, the ETF will provide a return of 3%. However, it also works the other way, making these products very risky. Leveraged ETFs are not considered suitable to be held for more than a day, as previously explained.

Some investors, it appears, were still keen on shorting the FTSE 100, with the L&G FTSE 100 Super Short Strategy Daily 2x (LSE:SUK2), keeping a place in the rankings, albeit at the bottom of the table again.

In third place was the iShares Global Clean Energy ETF (LSE:INRG). It entered the top 10 in August. However, in September it became even more popular, climbing the table by four places. This ETF tracks the S&P Global Clean Energy Index for a fee of 0.65%. The ETF is part of interactive investor’s ACE 30 fund list.

Precious metals appeared to become slightly less popular among investors. While still holding a place in the top 10, both iShares Physical Gold ETC GBP (LSE:SGLN) and iShares Physical Silver ETC (LSE:SSLN) slid down the rankings by a few places. Gold and silver have seen strong rallies this year, with the price of gold hitting new all-time highs in the summer. However, since then, demand has levelled off slightly. However, performance still looks strong with iShares Physical Gold ETC up by more than 20% on the year.

The Vanguard S&P 500 ETF (LSE:VUSA)kept a place in the rankings, while Invesco EQQQ NASDAQ-100 UCITS ETF (LSE:EQQQ) returned. The US market’s rally appeared to come to an end in September, with the S&P 500 losing 3.8% over the course of last month. That was a notable reversal from August, when the index was able to record a return of 7%. Largely, this poor performance has been driven by a sell-off in big name technology stocks.

Top 10 most-popular ETFs: Sept 2020

RankETFChange from August1-year performance to 2 October (%)3-year return to 2 October (%)
1iShares Core FTSE 100 ETFNo change-17.5-10.4
2Vanguard FTSE 100 ETF2-17.3-10.3
3iShares Global Clean Energy ETF462.3124
4iShares Physical Gold ETC-220.851.5
5WisdomTree FTSE 100 3x DailyNew entry-58.4-54.5
6iShares Physical Silver ETC-330.644.3
7Invesco EQQQ NASDAQ-100 ETFNew entry41.2101.7
8Vanguard S&P 500 ETFNo change943.7
9WisdomTree S&P 500 VIX Short-Term Futures 2.25x Daily LeveragedNew entry-72.7-98.4
10L&G FTSE 100 Super Short Strategy (Daily 2x)No change15.6-9.3

Source: FE Analytics. Note: The top 10 is based on the number of  “buys” during the month of September.

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.

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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