Most-bought investments: June 2024

• Tesla makes it back into the most-bought equities in June, having fallen out in May
• Two technology-focused investment trusts return to the top 10 rankings in June (Polar Capital Technology and Allianz Technology) 
• L&G Global Technology Index tops the most-bought funds list

interactive investor, the UK’s second-largest platform for private investors and number one flat-fee platform, unveils its most-bought equities, funds, and investment trusts in June 2024.

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Technology is the core theme that dominates June’s top 10, and we can see that private investors are keen to get exposure across funds, trusts, and direct equities. Below, interactive investor experts break down the most-bought investments in further detail and look at investor behaviour in more depth.

Equities 

Commenting on the most-bought direct equities in June, Victoria Scholar, Head of Investment, interactive investor, says: “NVIDIA Corp (NASDAQ:NVDA) retained its title as the most-bought stock last month on the interactive investor platform despite the stock’s sell-off that landed shares in correction territory (which means a decline of 10% or greater in the price) at one point. Nonetheless, even after the bout of volatility in June, Nvidia closed the month in the green and is up by over 150% so far this year, powering gains for portfolios. 

“Tesla Inc (NASDAQ:TSLA), which is down around 15% so far this year, dropped off the list of popular stocks on the ii platform in May, but it returned to the top ten list in June – coming in at number 10 on the list. Last month saw a revival of more positive price action for the electric vehicle giant, with the stock regaining strength particularly towards the end of June.  

“As usual, FTSE 100 heavyweights dominate the most-bought stocks including the likes of Rolls-Royce Holdings (LSE:RR.), BP (LSE:BP.) and Glencore (LSE:GLEN). Legal & General Group (LSE:LGEN) enjoyed a rebound in demand last month, potentially fuelled by its attractive dividend yield and its weak monthly share price performance that attracted opportunistic investors. Also of note was that GSK (LSE:GSK) saw an influx of buyers last month, with investors possibly drawn to its defensive qualities amid concerns about the market’s overdependence on tech that raises concerns about a stock market correction at some point.”

Lee Wild, Head of Equity Strategy, interactive investor, adds: “Bargain hunters snapped up GSK stock at prices not seen since the start of 2024. Behind the slump was a ruling which could significantly reduce the addressable US market for the company’s Arexvy jab for respiratory syncytial virus (RSV). Trading above 1,800p just five weeks ago, GSK shares changed hands for as little as 1,484p in the aftermath of the ruling.

“Also in the top 10 in June is Eurasia Mining (LSE:EUA). At the start of June, shares in Eurasia Mining traded at 1.4p, which then spiked to 7.5p on 10th June. The company announced there had been no material developments. Now, the shares have been suspended because the company said it couldn’t publish its annual report before the 30 June deadline. It blames audit delays due to more complex procedures in relation to concentrate stock confirmation and also an upgrade of local accounting systems (they say the audit should be completed in four weeks). AIM rules state that a listing will be cancelled if the shares are suspended for six months.”

Funds and investment trusts 

Commenting on the most-bought funds and trusts on ii in June, Kyle Caldwell, Funds and Investment Education Editor at interactive investor, says: “Technology is a theme that continues to attract plenty of attention among our customers amid excitement around the potential of artificial intelligence (AI) to disrupt various industries. In June, two technology-focused investment trusts climbed up the rankings having departed the top 10 the previous month. Both Polar Capital Technology Ord (LSE:PCT) and Allianz Technology Trust Ord (LSE:ATT) have plenty of exposure to the artificial intelligence (AI) theme. Polar Capital Technology owns five of the so-called Magnificent Seven tech giants in its top 10 holdings, excluding Amazon and Tesla. Allianz Technology has top 10 positions in six of those seven stocks, with Tesla again failing to make the cut.

“The increased appetite for tech came in the same month AI computer-chip maker Nvidia became the world’s most valuable company, overtaking Microsoft. As at the end of May, Nvidia was the top holding for both trusts, accounting for more than 11% of each portfolio. Both trusts are trading on discounts of around -10%, which offers investors the opportunity to buy tech at cheaper prices.

“Our top 10 most-popular funds table also shows increased popularity for tech in June, with L&G Global Technology Index topping the leaderboard. Bear in mind that it has big individual weightings to Microsoft Corp (NASDAQ:MSFT) (16.1%), Apple Inc (NASDAQ:AAPL) (14.7%) and Nvidia (13.9%). Therefore, the performances of this trio have a big influence on overall returns. As ever, it is important that investors look under the bonnet and understand how much concentration risk they are exposed to. A look at the top 10 holdings will provide a quick snapshot.

“The L&G fund’s ascendancy nudges Vanguard LifeStrategy 80% Equity down one place into second, while Jupiter India takes third spot, having risen one place from May. 

“Meanwhile, Fundsmith Equity has slipped from fifth to sixth place from last month. The performance of the global equity fund, overseen by star fund manager Terry Smith, has taken a hit over the short term (it has underperformed its benchmark over the past three years). However, its long-term performance has delivered the goods for investors.

“The technology trend was also evident among our most-popular exchange-traded funds (ETFs) in June, with iShares S&P 500 Information Technology Sector ETF and VanEck Semiconductor ETF new entrants to the top 10. They join Invesco EQQQ Nasdaq-100 ETF, as three ways of adding tech shares to a portfolio for a low yearly ongoing charge.”

MOST-BOUGHT INVESTMENTS ON INTERACTIVE INVESTOR (ii) IN JUNE 2024