10 hottest ISA shares, funds and trusts: week ended 24 May 2024

With the new tax year under way, 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

It takes something special for a company to come out of nowhere and claim the top spot, and National Grid (LSE:NG.) did just that last week.

Shares in the energy infrastructure company had been happily trading at a one-year high after rallying 13% in the past month. But news of a deeply discounted rights issue to raise almost £7 billion dumped the share price 15% to a seven-month low. 

It’s the biggest rights issue in the UK since the Lloyds Bank rescue deal in 2009, and will form part of a £60 billion five-year investment plan, split fairly evenly between the UK and the US.

National Grid shareholders get the chance to buy seven new shares for every 24 they currently own at 645p, a 35% discount to the theoretical ex-rights price. Shares began trading “ex-rights” on Friday 24 May.

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Over in the US, Nvidia’s first-quarter results smashed Wall Street expectations. Revenue soared 262% year-over-year to $26 billion (£20.3 billion) and adjusted earnings per share (EPS) was up 461% to $6.12. The company also announced a 10-for-1 share split.

NVIDIA Corp (NASDAQ:NVDA) stock cruised past the $1,000 mark, setting a new high at $1,064.75 for a 121% gain in 2024 so far. Investors on the interactive investor platform are still backing the company to lead the AI revolution, which was enough to get it back into the 10 most-bought ISA shares for the first time since the end of April.

Elsewhere, insurer Phoenix Group Holdings (LSE:PHNX) returns to the top 10 at number seven after a four-week break, and it’s still the FTSE 100’s top dividend stock with a 10.5% yield.

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Despite an attractive yield of around 7% and impressive share price performance, Aviva (LSE:AV.) hasn’t made the top 10 since mid-April. But it has also found renewed popularity and is in at number nine following last week’s first-quarter trading update.

Despite decent numbers and retained outlook for the year, Aviva shares fell to their lowest in over two weeks. However, it proved just a blip and the price has recovered some the losses. Analysts at Berenberg raised their price target to 584p and rate the shares a “buy”, while HSBC Holdings (LSE:HSBA) has a 525p target and cuts its rating to “hold”.

And finally, after a short break from the 10 most-bought table, Lloyds Banking Group (LSE:LLOY) is in at number four having been a lowly 14th place a week ago. Shares have pulled back from multi-year highs above 57p to around 55p but are attracting interest among ISA investors.

Top 10 funds and trusts in ISAs

Scottish Mortgage (LSE:SMT) returned to the top of the most-bought league table for ISAs. The global trust, which seeks out companies capitalising on technological advancements, has been in recovery mode, with its share price up 36% over one year. The turnaround stems from technology stocks returning to form and its share buyback plan succeeding in narrowing the gap between its share price and the value of its investments, the net asset value (NAV).

SMT’s three-year performance now shows a loss of -21.8%, with shareholders hoping the recent positive showing continues. Investment trust analysts say a positive development, such as an IPO, among its unlisted stocks (comprising just under 30% of the portfolio) could give SMT’s share price a boost.

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In second and third place are Vanguard LifeStrategy 80% Equity and L&G Global Technology Index Trust. They are joined by another passive strategy in the top 10, HSBC FTSE All-World Index C Acc - one of three new entrants. The popularity of low-cost funds tracking the fortunes of an index shows no signs of waning. Younger investors, in particular, like passive strategies for their simplicity, low costs, and diversification. 

The other two new entrants are JPMorgan Global Growth & Income (LSE:JGGI) and Assura (LSE:AGR).

The former regularly in appears in our monthly top 10 most-bought investment trust table. It is “style neutral”, meaning it does not favour a particular category of stocks, such as value or growth. Over the past three years, the approach has paid off, despite a few high-growth tech stocks dominating global markets over the past 18 months. JGGI is up 47.6% over three years, ahead of the average global equity income trust return of 23.7%.

Assura is not usually high up in the popularity charts. The real estate investment trust (REIT) of primary care properties last week announced a joint venture with the Universities Superannuation Scheme pension fund to develop health properties in the UK aimed at NHS tenants. The joint venture will mean greater diversification for Assura. Over three years, its share price is down -45%. Investors buying today will be hoping for a change in fortunes. 

Funds and trusts section written by ii’s funds and investment education editor Kyle Caldwell.