Most-bought investments: August 2023
Investors are split on tech and look for stocks with capital growth potential as the hunt for income continues.
5th September 2023 12:27
by Jemma Jackson from interactive investor
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- Seven out of the 10 most-bought stocks in August have dividend yields of over 4.5%
- Two tech trusts (Polar Capital and Allianz Technology) fall out of the top 10 list of investment trusts, but on the equities side – investors snap up AI pick Nvidia
interactive investor, the UK’s second-largest investment platform for private investors, outlines the most-bought investments on its platform in August 2023, in what has been a difficult summer month for markets and a busy earning season.
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Direct equities in detail
Demand for income generation continues, as 70% of the most-bought stocks in August (Vodafone Group (LSE:VOD), Legal & General Group (LSE:LGEN), Rio Tinto (LSE:RIO), Glencore (LSE:GLEN), Aviva (LSE:AV.), Lloyds Banking Group (LSE:LLOY), and Barclays (LSE:BARC)) all have dividend yields of over 4.5%.
The remaining stocks in the top 10, however - Rolls-Royce Holdings (LSE:RR.), Tesla Inc (NASDAQ:TSLA) and NVIDIA Corp (NASDAQ:NVDA) all appear to be being considered by investors for their capital growth potential.
Commenting on the most-bought equities in August, Victoria Scholar, Head of Investment, interactive investor, explains: “FTSE 100 names continue to dominate the list of most-popular stocks on the ii platform this month including Legal and General, Lloyds, Rolls Royce, Aviva, Vodafone. The strong dividends on offer could well be the key drawing factor.
“Across the pond, Tesla is a familiar face in ii’s list of most-bought equities and retained its spot in August. Adding to mega-cap tech, Nvidia is back in the top 10, having dropped out in July. This year’s buzz around artificial intelligence has seen the stock take centre stage, surging to an all-time high this month after reporting rock-solid chip demand. However, also in the tech space, Microsoft Corp (NASDAQ:MSFT) dropped off the list after a difficult August for its share price and a volatile month for markets all round.”
Lee Wild, Head of Equity Strategy, adds: “One of the most popular shares in August, Rolls-Royce, remains a hot stock for private investors. Following a £2 billion rights issue a few years ago, the business has recovered strongly as much of its income depends on how many hours its engines fly. With more planes flying post-Covid, profits are rising. A new CEO is also making significant changes and getting the business in shape. He’s certainly got the City onside, with many analysts believing the shares – currently worth just over £2 – could one day be worth much more. One even thinks £6 is possible. This tide of optimism rewards the army of retail investors who put their faith in the company during the dark days of 2020.”
Funds and investment trusts in detail
Commenting on the most-bought funds and investment trusts on ii during the month of August, Kyle Caldwell, Collectives Specialist, interactive investor, says: “The main trend we’ve seen of late in fund and trust land is that enthusiasm for technology exposure has dampened.
“While no stranger to our best buys, tech trusts have only briefly been in favour this year, with Polar Capital Technology Ord (LSE:PCT) and Allianz Technology Trust Ord (LSE:ATT) entering our top 10 in June, and Polar Capital Technology Trust again in July, in a year that has so far seen plenty of excitement over the potential of artificial intelligence (AI) to transform various industries. That said, Scottish Mortgage Ord (LSE:SMT), with its heavy tech weighting, remains rooted at the top of the table.
“Elsewhere, the hunt for income continues. Dividend strategies have become more appealing to investors in response to interest rates rising in an attempt to cool high inflation. Among our top 10 investment trusts, all pay some income, with most yielding more than 4%. Both the recent two new entries, Renewables Infrastructure Grp (LSE:TRIG) and Murray International Ord (LSE:MYI), have an income focus.
“For our top 10 most-bought funds, there was very little change in August, with investors continuing to back Terry Smith’s Fundsmith Equity fund and track markets with low-cost passive funds, with global exposure being preferred.”
Top 10 most-bought investments on interactive investor in August 2023
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These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.