10 hottest ISA shares, funds and trusts: week ended 23 February 2024

With ISA season under way and tax year-end fast approaching, we look at the investments ii customers have been buying within their ISAs during the previous week. The data includes only real-time trades, not regular investing instructions, and combines the use of both existing funds and new money.

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Top 10 shares in ISAs

After spending a month at the top of the most-bought table, £88 million Helium One Global Ltd Ordinary Shares (LSE:HE1) has been knocked off its perch by £113 billion HSBC Holdings (LSE:HSBA).

It’s a combination of a pause in newsflow at Helium One after a busy and successful period exploring for helium in Tanzania, and a sharp drop in HSBC’s share price following annual results on Wednesday.

The Asia-focused lender had a poor fourth quarter of its financial year; a writedown in the value of its 19% stake in Shanghai-based Bank of Communications causing an 80% plunge in quarterly profit. 

Management also warned of slow growth during the first half of this year before a gradual recovery later. However, the state of the Chinese economy and real estate sector remain a concern.

HSBC shares fell as much as 9% to their lowest in a month. But plenty of investors clearly believed that was a buying opportunity, and that the setback could be only temporary. According to data firm Refinitiv, 11 analysts still rate HSBC shares a ‘buy’, five a ‘hold’ and three ‘sell’.

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NVIDIA Corp (NASDAQ:NVDA)’s stunning fourth-quarter results propelled its stock above $800 for the first time, and the AI chip firm to second place in the top 10 list. And Rolls-Royce Holdings (LSE:RR.) climbed a couple of places after its own better-than-expected annual results, which extended the rally since the October 2022 low to over 400% and levels not seen since August 2018.

There were three new entries last week.

BAE Systems (LSE:BA.) came in at number seven as investors chased the shares to new highs following news of record annual profit and order book. A bad week for miners has also been used as an opportunity to pick up fancied stocks like Rio Tinto Registered Shares (LSE:RIO), which made the list at number nine. Results demonstrate that conditions aren’t easy, but the dividend is generous and there’s optimism about the year ahead.

Avacta Group (LSE:AVCT) is a surprise inclusion in this week’s top 10. The cancer treatment specialist came from a long way back with no obvious news behind the buying interest which was two-and-a-half times the previous week.

Shares have almost halved since mid-December despite encouraging clinical data from ongoing studies of its AVA6000 treatment. A bounce at the end of last week coincides with the share price reaching a technical support level.

Top 10 funds and trusts in ISAs

The excellent run for Indian equities has continued in 2024 – and so it comes as no surprise that Jupiter India remains popular with ii customers.  

The fund reclaimed the top spot on last week’s most-bought funds and trusts list, knocking Scottish Mortgage Ord (LSE:SMT) down to second place. Jupiter India was last in this position about a month ago.  

Year-to-date, Jupiter India has proven that an active approach to emerging markets can pay off. It has risen 15%, well ahead of the 7% return for the MSCI India and 5% gain for the average India active fund.  

The ongoing charge on the fund is a relatively expensive 0.99%, but investors are getting value for money. It has beaten its benchmark and peers over one, three, five and 10 years. 

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Other risers last week were JPMorgan Global Growth & Income Ord (LSE:JGGI) and Vanguard LifeStrategy 80% Equity, up two places each to fourth and fifth place respectively.  

The global JP Morgan trust is a “best ideas” strategy, owning both growth and income shares selected by JP Morgan Asset Management’s in-house experts. Shares have compounded at an annualised rate of 14.6% over the past 10 years, beating the MSCI All Country World index’s 11.2% annual gain. It yields around 3.5%, with some of this income paid out of capital.

Fundsmith Equity was unchanged in third place, as was Alliance Trust Ord (LSE:ATST) in eighth.  

The fallers last week were L&G Global Technology Index and Greencoat UK Wind (LSE:UKW), which fell four places and two places respectively, to sixth and seventh.  

New entries to the most-bought fund and trust list were Vanguard US Equity Index and Royal London Short Term Money Mkt fund. These two strategies have become “yo-yo funds”, constantly dipping in and out of the top 10 most-popular fund and trusts list.  

Funds and trusts section written by ii’s deputy collectives editor Sam Benstead.