The top 10 most-purchased ETFs in November 2022
2nd December 2022 11:11
by Sam Benstead from interactive investor
interactive investor customers jumped into global ETFs as stock markets rose last month
Exchange-traded funds (ETFs) tracking global markets were back in fashion in November, as stock markets rallied on better-than-expected inflation figures from America.
iShares Core MSCI World Ucits ETF was a new entry at eighth place, while Vanguard FTSE All-World Ucits ETF rose two places to sixth. Both ETFs track global markets, but with subtle differences.
The iShares ETF, from BlackRock, excludes emerging markets. It therefore has no China exposure and owns around 1,500 stocks, costing 0.2% in fees a year.
Vanguard’s popular global ETF is an “all world” tracker and includes emerging markets. It owns around 3,750 shares, with 3% invested in China. It costs 0.22% a year in fees.
The other global tracker making moves in November was the Vanguard FTSE All World High Dividend Yield ETF, which is a member of interactive investor’s Super 60 list of recommended funds. It was a new entry in the most-bought ETF list, in tenth place.
It owns shares globally with high dividend yields. It yields about 4% and owns 1,800 companies, giving investors a very diversified basket of income stocks.
Global markets rose in November, with the MSCI World index rising 1% in sterling terms and 8% in dollar terms. The pound rose against the dollar, which affected returns for UK-based investors.
ETFs tracking American and British stock markets remained popular in November. Vanguard S&P 500 Ucits ETF (distributing) was the most-bought ETF for another month, while iShares Core FTSE 100 Ucits ETF fell one place to third. Vanguard S&P 500 Ucits ETF (accumulating) rose two places to seventh and Vanguard FTSE 100 Ucits ETF (distributing) fell four places to ninth.
These funds give investors cheap and liquid access to the biggest companies in America and the UK. They are popular core holdings for investors, due to their diversification and low fees.
This year, UK shares have outperformed American shares as investors have moved to prioritise profits over growth. The S&P 500, in sterling terms, has fallen about 14%, while the FTSE 100 is roughly flat.
- Ask ii: can I get a yield of 4% or more from bonds like I can from equities?
- Bond Watch: fixed income’s ‘once-in-a-generation opportunity’
Other popular ETFs in November were WisdomTree FTSE 100 3x Daily Leveraged Short (second place), WisdomTree Nasdaq 100 3x Daily Leverage Short (fourth place) and WisdomTree Nasdaq 100 3x Daily Leverage Long (fifth place).
These ETFs use financial contracts to amplify the gains – and losses – of a stock market. They are therefore much riskier than normal ETFs, and investors should do their homework before buying one of them.
The promotional literature of many leveraged products specifies that they should not be held for more than one day, and our article explains why in more detail.
Dropping off the top 10 most bought list in November were Vanguard FTSE 250 Ucits ETF and WisdomTree FTSE 100 3x Daily Long.
Top 10 most-popular ETFs in November 2022
| Position | ETF | Change on last month | 1-year return (%) | 3-year return (%) |
|---|---|---|---|---|
| 1 | Vanguard S&P 500 Ucits ETF (dsitributing) | No change | 2.4 | 46.9 |
| 2 | WisdomTree FTSE 100 3x Daily Leveraged Short | Up one | 16.2 | -10 |
| 3 | iShares Core FTSE 100 Ucits ETF | Down one | 9.6 | 14.3 |
| 4 | WisdomTree Nasdaq 100 3x Daily Leverage Short | No change | 52.3 | -58.1 |
| 5 | WisdomTree Nasdaq 100 3x Daily Leverage Long | Up two | -65.5 | 34.2 |
| 6 | Vanguard FTSE All-World Ucits ETF | Up two | -0.7 | 31.4 |
| 7 | Vanguard S&P 500 Ucits ETF (accumulating) | Up two | 2.4 | 46.9 |
| 8 | iShares Core MSCI World Ucits ETF | New entry | 0.3 | 35.3 |
| 9 | Vanguard FTSE 100 Ucits ETF (distributing) | Down four | 9.6 | 14.2 |
| 10 | Vanguard FTSE All World High Dividend Yield ETF | New entry | 13.1 | 27.3 |
Source: Fe FundInfo/interactive investor, 1 December 2022. Note: the top 10 is based on the number of “buys” during the month of November.
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.