ii Top 50 Fund Index: Q1 2026

In the two and a half years since we started this quarterly index, the number of global funds has dropped to its lowest level, falling from 15 to 12 at the end of March. This could reflect concerns over the heavy weighting to the US, with a typical global tracker fund or ETF allocating over 70% to the country.

The concentrated nature of US stock market performance over recent years, which has been heavily influenced by the world’s biggest businesses, the so-called Magnificent Seven, may also be giving investors pause for thought.

While there are various ways to build a portfolio, one useful strategy is the core and satellite approach. Core holdings, such as multi-asset funds or those investing in global shares, are among the contenders as such approaches can, in theory, work for the long term as they shouldn’t give you any nasty surprises. As a rough rule of thumb, core holdings could collectively comprise around 70% of a portfolio.

The remaining 30% is where investors can consider being more adventurous by seeking out higher-risk funds in pursuit of higher rewards. Among the options are funds that invest in themes, which investors are showing a preference for at present, with commodities, technology and renewable energy infrastructure proving particularly popular.

A key trend in the first quarter of 2026 was increased demand for funds investing in the UK. In terms of how investors gained exposure, three of the four new UK entrants are passively managed, meaning they seek to replicate the return of a certain part of the UK stock market.