10 hottest ISA shares, funds and trusts: week ended 24 January 2025

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

Perhaps it was inevitable that a company whose name includes two of the big themes of the moment would become the hottest stock here eventually. Having risen from a low of 0.668p the previous week, Quantum Blockchain Technologies (LSE:QBT) shares peaked last Monday at 2.45p for a 266% increase. That there is a catalyst for the interest in the company rather than just a name is encouraging. However, placing a monetary value on the recent announcement of a significant breakthrough with its proprietary bitcoin mining tool was always going to be difficult.   

But on Thursday the company said it had raised £2 million from a placing of shares at 1.15p to bankroll its cryptocurrency R&D programmes. That triggered a drop in price to around the placing level. Nonetheless, there remains interest in the £16 million company, which jumped two places to become the most-bought stock in ISAs on the ii platform last week.

Rolls-Royce Holdings (LSE:RR.) is back in the top 10 after a two-week break. The shares have set another record high after City bank Jefferies said they could eventually be worth 800p a share. The analysts attribute the upgrade to an increase in its profit forecasts for both 2025 and 2026. Rolls is its top pick in European aerospace and defence ahead of annual results on 27 February.

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Both International Consolidated Airlines Group SA (LSE:IAG) and Aviva (LSE:AV.) make this list for the first time in January. There’s been little fresh news around the British Airways owner ahead of its full-year numbers due on 28 February, but analysts are backing Aviva to continue to do well.

UBS and JP Morgan revealed new estimates for Aviva of 675p and 615p respectively, which compares with a current price of around 507p. Enthusiasm revolves around the belief that reaction to Aviva’s proposed £3.7 billion takeover of Direct Line Insurance Group (LSE:DLG) underestimates the potential benefits.

Lloyds Banking Group (LSE:LLOY) has gained a reputation as something of a yo-yo stock here, but is back this week after the shares extended their impressive start to 2025 with a 5% gain. The upturn was triggered by news that the Treasury is seeking to reduce potential liabilities in the current mis-selling case facing car finance providers. It said any redress should be “proportionate to the loss actually suffered and to avoid conferring a windfall”.

• Why Lloyds Bank shares led FTSE 100 to fresh highs
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That’s a huge relief to investors who had feared industry liabilities might be as much as £30 billion. Lloyds shares have now recovered all the ground lost since news of the mis-selling case broke in October. They’re not far off the five-year high set prior to slump at 63.46p.

Top 10 funds and trusts in ISAs

Technology funds rose in popularity last week, as optimism about developments in artificial intelligence (AI) continued.

Super 60-rated Scottish Mortgage Ord (LSE:SMT) rose one place to take the top spot, followed by L&G Global Technology Index Trustin second.

They offer two distinct ways to own tech shares. While SMT takes a highly active approach across public and private markets, which leads it to lesser-known innovators such as MercadoLibre Inc (NASDAQ:MELI) and PDD Holdings Inc ADR (NASDAQ:PDD), L&G Technology just owns all the world’s tech stocks, with positions based on market caps.

Both have very strong long-term track records. Over 20 years, L&G Tech has returned 2,055%, while SMT is up 1,958%.

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The other risers last week were Vanguard US Equity Index, Vanguard LifeStrategy 80% Equity, Artemis US Smaller Companies and JPMorgan Global Growth & Income. All these funds invest heavily in US shares, suggesting that UK investors are optimistic about returns under President Trump.

The funds that dropped in popularity last week were: healthcare property investment trust Assura (LSE:AGR), cash alternative Royal London Short Term Money Market, global tracker Fidelity Index World, and clean energy trust Greencoat UK Wind (LSE:UKW).

Vanguard LifeStrategy 100% Equity fell off the list.

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