interactive investor (ii) Index

The ii Index - Q2 2024

We have published the latest instalment of the ii index, which provides a unique insight into how ii customers have fared and positioned their portfolios in the ever-changing investment arena.

Our index data now goes back four and a half years, covering the period spanning from the beginning of 2020 to the end of Q2 2024. The latest report reveals that the average ii customer performed strongly and above the IA Mixed Investment 40-85% shares sector across all seven timeframes examined. 

The sector can be a useful comparator with private investor portfolios for professional managers, given its mix of bonds, cash, and equities.

Over the longest timeframe (1 January to 30 June 2024), the average ii customer edges it, returning 21.4% compared to 20.67% achieved by the IA Mixed Investment 40-85% shares sector. 

The longer-term outperformance is led by the by those in the 35-44 age group, with an average return of 26% over four and a half years to 30 June 2024, and 10.1% over three years.

But it is the youngest investors who came up trumps over shorter timeframes, with the 18-24 cohort notably up 21.9% compared 19.2% for the average ii customer and 15.5% for the IA 40-85% shares sector.

Gilt-y and ETF investment momentum continues investing

The popularity of bonds etched higher once again, with allocations to instruments in the ‘other’ category (meaning fixed income and corporate bonds) climbing to 3%, up from 2.7% in Q1 and a low of 0.4% in Q1 2021.

The rise in popularity of ETPs – a category of investments largely consisting of exchanged-traded funds (ETFs) – has been another emerging theme in recent instalments of the ii index and remains in the latest report.

The average portfolio weighting hit a new high of 9.4% in Q1 24 and a low of 5.7% three years ago in Q1 2021. Elsewhere, fund exposure is also up (25.9% from 25.3% in Q2).

Download the full report from the link below.