Top 10 most-purchased ETFs in January 2021
Two of the top most-popular ETFs among interactive investor customers seek to profit from battery theme.
1st February 2021 17:19
by Tom Bailey from interactive investor
Two of the top most-popular ETFs among interactive investor customers seek to profit from battery theme.
TheiShares Global Clean Energy ETF (LSE:INRG)kept its recently acquired position at the top of the table as the most popular ETF with interactive investor customers in January. The ETF is a member of interactive investor’s ACE 40.
iShares Global Clean Energy shot to the top of the table in December 2020, on the back of being one of the best-performing ETFs of the year.
Performance on a one-year basis now sits at an eye-catching 128.2%. On a longer-term basis, performance is also stellar, with the ETF returning 232% over the past three years.
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The second most-popular ETF is theiShares Core FTSE 100 ETF (LSE:ISF). This ETF spent most of 2020 on the top of our most-bought list, but was pushed to second place in December. The FTSE 100 has experienced a relatively strong recovery in recent months. However, when measured over the past year, investors in this ETF are sitting on a loss of 11.5%.
Despite this – or perhaps because of it – investor interest in the blue-chip index is still strong. The Vanguard FTSE 100 ETF (LSE:VUKE) rose by one place. There was also continued demand for the WisdomTree FTSE 100 3X Daily Leveraged ETP (LSE:3UKL), which rose by four places.
This ETF is leveraged, meaning that it provides the daily return of the underlying index multiplied by a certain amount on a daily basis. In this case, it means that the investor will see three times the daily returns or losses of the FTSE 100 index. Such products are highly risky and typically should not be held for more than one day.
Demand for FTSE 250-tracking ETFs seems to have cooled. While the Vanguard FTSE 250 UCITS ETF (LSE:VMID) kept a place in the rankings, it fell by six places. Meanwhile, the iShares FTSE 250 ETF (LSE:MIDD) was pushed out of the top 10. The FTSE 250 index has recorded a slight loss when measured on a one-year basis.
Investor interest in gold picked up slightly, with the iShares Physical Gold ETC GBP (LSE:SGLN)gaining one place. Gold experienced a strong rally in 2020, hitting a new all-time high in the summer. The price has since experienced a slight decline.
The battery theme seems to have seen a surge in popularity among ETF investors. The L&G Battery Value Chain ETF (LSE: BATT) was a new entrant to the rankings in December 2020, with investor demand likely driven by a combination of Tesla-fuelled interest in the electric car and battery theme alongside the ETF's very strong performance in 2020. That continued into 2021, with the ETF climbing another four places in January.
January also saw WisdomTree Battery Solutions ETF (LSE: VOLT) enter the rankings, likely driven by the same factors. Elsewhere, we have covered the strong performance of battery ETFs in 2020, as well as investing in the electric car theme.
Elsewhere, demand remains strong for the Vanguard S&P 500 ETF (LSE:VUSA), albeit falling by one place compared to the month prior.
It was a similar story for the Vanguard FTSE All-World ETF (LSE:VWRL), which also fell by one place. The ETF, which follows the up and down fortunes of 3,455 shares, charges just 0.22% a year.
Most-bought ETFs in January 2021
| ETF | Change from November | One-year performance to 1 February (%) | Three-year performance to 1 February (%) | |
| 1 | iShares Global Clean Energy ETF | no change | 128.2 | 232 |
| 2 | iShares Core FTSE 100 ETF | no change | -11.5 | -6.1 |
| 3 | Vanguard FTSE 100 ETF | 1 | -11.6 | -6.2 |
| 4 | iShares Physical Gold ETC | 1 | 12 | 41.1 |
| 5 | L&G Battery Value Chain ETF | 4 | 69.2 | 67.3 |
| 6 | WisdomTree FTSE 100 3x Daily | 4 | -46.3 | -45.8 |
| 7 | Vanguard S&P 500 ETF | -1 | 10.9 | 41 |
| 8 | Vanguard FTSE All-World ETF | -1 | 8.9 | 26.9 |
| 9 | Vanguard FTSE 250 UCITS ETF | -6 | -4 | 5.6 |
| 10 | WisdomTree Battery Solutions ETF | new entry | - | - |
Source: interactive investor. Note: the top 10 is based on the number of “buys” during the month of January.
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.
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.