10 hottest ISA shares, funds and trusts: week ended 7 February 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

Straight in at number 10 this week is Vodafone Group (LSE:VOD), which make this list for the first time since November. Bargain hunters were all over the mobile phone company after it issued a third-quarter trading update revealing further struggles in its key German market. 

Gains in third-quarter service revenues in the UK, Turkey and Africa were not enough to offset concerns about Germany where sales fell 6.4% due to a change in pay TV law. Exclude that impact and sales still fell 2.6% because of lower broadband service revenue, worse than the previous quarter.

Vodafone shares fell as much as 8% on the day to an 11-month low. Analysts at Deutsche Bank still think Vodafone shares will be worth 140p, arguing that “Buying [Vodafone] equity, in our opinion, is about the portfolio, not a single asset - although of course ongoing weakness in Germany, the largest asset, is highly important”.

Palantir Technologies Inc Ordinary Shares - Class A (NASDAQ:PLTR) makes only its second appearance here. Despite already having soared 300% since May last year, the software company which has developed all sorts of AI-driven tools, added another 34% last week. The rally followed Palantir’s fourth-quarter results and stronger-than-expected revenue outlook. Although analysts at Morgan Stanley only upgraded their price target to $95, they do see “fundamentals getting better and lack a clear downside catalyst despite an expensive valuation”.

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Back in the UK, Legal & General Group (LSE:LGEN), a regular here over the past year, enters this week’s list at number three. The shares spiked to levels not seen since last summer after L&G announced on Friday it would sell its US insurance business to Japan’s Meiji Yasuda for $2.3 billion (£1.8 billion) in cash. More than half the money will be returned to shareholders. Including the company’s existing policy, it expects to return 40% of its market capitalisation - currently £14 billion - in 2025-27 via dividends and buybacks. 

We’ve not seen Diageo (LSE:DGE) in this list since August, but another decline in the share price has got investors sniffing around the drinks giant. There are concerns about the company’s decision to remove medium-term sales growth guidance, and about the impact of any US import tariffs.

There was a mixed response from analysts. Deutsche Bank and Goldman Sachs are cautious, while Bernstein, Bank of America and Barclays are more positive, although some reduced their price targets.

International Consolidated Airlines Group SA (LSE:IAG) is a popular stock among investors on the ii platform, and they’ve been richly rewarded over the past six months. Since last August, IAG shares are up 120%. Its latest appearance in this list perhaps implies investors anticipate further gains ahead of annual results on 28 February.

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After a two-week break, GSK (LSE:GSK) makes this list again after full-year results received a warm reception. Performance has been poor given weakness in vaccines and President Trump’s nomination of vaccine sceptic Robert F. Kennedy Jr as his health chief. But Speciality Medicines has done well and the outlook for the business is largely positive. Investors also believe the shares are cheap and like the 4.5% dividend yield.

Top 10 funds and trusts in ISAs

Cash was king last week, with Royal London Short Term Money Market rising two places to take the top spot.

The money market fund, which can be viewed as a cash proxy due to its investments in overnight deposits and ultra-short term bonds, yields around 4.8%.

However, given that UK interest rates have now fallen to 4.5%, the yield on this strategy will also fall over the coming months. The Y units automatically reinvest any income generated, rather than paying it out.

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• Watch our video: Gervais Williams: why I’m the most bullish I've been in 30 years

Tech funds lost popularity last week, even as the Nasdaq 100 index in GBP rose about 1.5%. Scottish Mortgage Ord (LSE:SMT) fell one place to second, L&G Global Technology Index dropped to fourth place, and Polar Capital Technology Trust (LSE:PCT) fell four places to ninth.

Tech shares have moved higher this year, with SMT up 13.7% and PCT up 4.6%. They continue a strong run since 2023, driven by developments in artificial intelligence (AI) technology and lower interest rates.

The other risers last week were Greencoat UK Wind (LSE:UKW), Vanguard LifeStrategy 80% Equity and JPMorgan Global Growth & Income Ord (LSE:JGGI). Global multi-manager trusts Alliance Witan Ord (LSE:ALW) and F&C Investment Trust Ord (LSE:FCIT) were new entries, while Fidelity Index World held on to seventh position. HSBC FTSE All World and Vanguard US Equity Index dropped off the list.

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