Top 10 most-purchased ETFs in December 2024
There was just one new entry on the list last month, as S&P 500 and global trackers continued to attract assets, writes Sam Benstead.
2nd January 2025 10:11
by Sam Benstead from interactive investor
Holding steady at the top spot, Vanguard S&P 500 UCITS ETF GBP (LSE:VUSA) continues to be a favourite among investors seeking exposure to the S&P 500 – the index of America’s largest companies. With a one-year return of 26.9% and a three-year return of 38.6%, it’s been a fantastic performer recently due to the continued dominance of America’s tech firms, which grew larger still last year based on their investment in artificial intelligence (AI).
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Its distributing structure appeals to income-focused investors who prefer receiving dividends as cash payouts. The accumulation version of this fund (Vanguard S&P 500 ETF USD Acc GBP (LSE:VUAG)) was in second place for another month. Both cost a competitive 0.07% in annual fees.
Climbing one spot to third place, iShares Core MSCI World ETF USD Acc GBP (LSE:SWDA) offers global equity exposure, covering developed markets worldwide. Its one-year return of 20.8% and three-year return of 30.3% reflect solid performance across international markets, driven by another strong year for US shares, which account for about 70% of the portfolio. Â
The other two global ETFs to feature were Vanguard FTSE All-World UCITS ETF GBP (LSE:VWRL)Â (Distributing)and Vanguard FTSE All-World ETF USD Acc GBP (LSE:VWRP) (Accumulating), in seventh and eighth place.
These trackers also include emerging market shares, so are slightly less concentrated in the US, with 65% invested there.
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Technology remained a key theme last month, with Invesco EQQQ NASDAQ-100 ETF GBP (LSE:EQQQ) moving up to fourth place in the ETF top 10. Delivering a robust one-year return of 28.9% and a three-year return of 42.5%, it’s a go-to for investors seeking high-growth opportunities in the tech sector.
Likewise, the new entry in ninth place, iShares S&P 500 Information Technology Sector ETF$Acc GBP (LSE:IITU), also owns technology shares. It focuses exclusively on the technology sector within the S&P 500, making it a top pick for investors seeking concentrated exposure to high-growth tech companies.
While the Nasdaq tracker rebalances so that no company is more than 10% of the index, IITU allows its winners to run and currently has more than 20% invested in Apple Inc (NASDAQ:AAPL).
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Another technology-focused fund that was popular last month, and throughout 2024, was VanEck Crypto & Blockchain Innovation ETF A USD GBP (LSE:DAGB). In sixth place, it invests in companies involved in digital assets, such as Robinhood Markets Inc Class A (NASDAQ:HOOD) and Block Inc Class A (NYSE:SQ). While it’s not for the faint-hearted, its popularity reflects growing interest in cryptocurrencies, which have risen in value over the past 12 months.
The final two ETFs on the December list were iShares Physical Gold ETC GBP (LSE:SGLN) (fifth place) and iShares Core FTSE 100 ETF GBP Dist (LSE:ISF)Â (10th place).
The UK market, with a 4% yield, is popular with income seekers, while gold is seen as a hedge against inflation and economic uncertainty. Gold also tends to rise in value as interest rates fall, which is expected to continue as a key theme in 2025.
iShares Core S&P 500 Ucits ETF dropped off the list.
Top 10 most-popular ETFs in December 2024Â
Rank | ETF | Change on last month | One-year return (%) | Three-year return (%) |
1 | No change | 26.9 | 38.6 | |
2 | No change | 26.9 | 38.6 | |
3 | Up one | 20.8 | 30.3 | |
4 | Up one | 28.9 | 42.5 | |
5 | Down three | 28.7 | 54.6 | |
6 | No change | 46 | -17.5 | |
7 | No change | 19.3 | 26.7 | |
8 | Up one | 19.3 | 26.7 | |
9 | iShares S&P 500 Information Technology Sector ETF$Acc GBP (LSE:IITU) | New entry | 39.6 | 67.3 |
10 | No change | 9.5 | 23.5 |
Source: interactive investor/FE FundInfo. Performance data to 31 December 2024. Past performance is not a guide to future performance.
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â 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.